Most organizations have developed unique and describable cultures. These cultures are reflected in numerous factors, including, but not limited to:
- Shared values, norms, beliefs, and expectations
- Policies and procedures
- View of authority relationships
- Work ethic and work hours.
The structure of the performing organization often constrains the availability of resources in a spectrum from functional to projectized, with a variety of matrix structures in between.
The functional organization: is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering, and accounting at the top level. Engineering may be further subdivided into functional organizations that support the business of the larger organization, such as mechanical and electrical. Functional organizations still have projects, but the scope of the project is usually limited to the boundaries of the function.
Projectized organization: team members are often collocated. Most of the organization’s resources are involved in project work, and project managers have a great deal of independence and authority. Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects.
Matrix organizations: are a blend of functional and projectized characteristics.
Weak matrices: maintain many of the characteristics of a functional organization and the project manager role is more that of a coordinator or expediter than that of a manager.
strong matrices: have many of the characteristics of the projectized organization, and can have full-time project managers with considerable authority and full-time project administrative staff.
balanced matrix organization: recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project funding
Most modern organizations involve all these structures at various levels which called Composite Organization
Source: Project Management Body of Knowledge (PMBOK® GUIDE).” Project Management Institute. 2008.