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Week 2 Assignment: Functional, Project-Oriented, and Matrix Organizational Structures

William Goodson Bellevue university 08/09/2021

Business company structure concept. Corporate group communication. Network  management of organization. - OLC

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Each organization has a unique approach that it uses to manage resources and various activities that are conducted.  An organizational structure usually defines various players or entities within an organization as well as approach in which various activities are coordinated.  Three main types of organizational structures include the functional, matrix, project-oriented organizational structures.  At first, in the functional organizational structure, the staff members are grouped by specialty such as finance, marketing, and engineering departments among others forming departments ( Mills, 2018 ). An example of company using this structure is Apple.   In the project-oriented structure, the entire entity is organized in the form of projects. This structure is used in most construction companies such as Shook Construction.   The matrix structure comprises a blend of functional and project oriented organizational structures ( Mills, 2018 ). This structure is used at Nike.  In this regard, feedback is provided on the similarities between identified structures and on s ignificance and Impact on the  project manager, project team, and project.

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Similarities between Functional, Project-Oriented, and Matrix Organizational Structures

Given the nature of operations in the three organizational structures, the similarities are few as compared to the differences that are underlying. At first, one similarity is in functional and matrix structures where staff usually have both project and departmental work ( Goodrich, 2019 ).  In weak matrix where the functional manager has more power, the project manager operates on part-time basis as in the case of functional structure. On the other hand, the operation of the project manager in balanced and strong matrix is similar to the case of project-orientated structure where he works full-time.  Therefore, having considered some of the similarities, various differences are then discussed.

MARKETING
FUNCTIONAL STRUCTURE
CEO
SALES
SERVICES

Coordi nation
Project
Manager
Chief
Executive
Project
Manager
Staff
Staff
staff
(Gray represent staff in activities)
Project
Manager

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Differences between Functional, Project-Oriented, and Matrix Organizational Structures

One  major difference is on the description where at first, the functional structure comprises of a traditional organization that has a supervisor. On the other hand, in project-oriented structure, the project manager has the sole management authority while in mixed matrix, project and functional manager share authority ( PM Vidya, 2021 ).  In functional structure, the authority of the project manager is very low while in project-oriented structure is very high. In matrix, it varies from low to medium to high given the weak, balanced, and strong matrix.  The third difference is on resource availability, where in functional structure, it is very low while in project-oriented structure is very high. In matrix, it varies from low to medium to high given the weak, balanced, and strong matrix ( PM Vidya, 2021 ).  On staff involvement, in both strong matrix and in project oriented it is on part-time basis while in functional structure, weak, and balanced matrix staff involvement is on part-time basis.  Therefore, having considered various differences that are underlying, the feedback on s ignificance and Impact on the  project manager, project team, and project is provided.

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Significance and Impact on the  project manager, project team, and project

The type of structure used usually has an impact on the project manager, project team, and the project.  The use of strong matrix and project-oriented structure gives more authority to the project manager and more control to the project team ( Roseke , 2019 ).  With the project manager having more authority to allocate resources and the project time having more control to implementation, this creates high levels of accountability an enthusiasm towards implementation of project deliverables.  As a result, high level of effectiveness in project implementation is achieved in strong matrix and in project-oriented structure as compared to the case of functional structure, weak, and balanced matrix.

Organizational Structure
Projectized
Strong Matrix
Balanced Matrix
Weak Matrix
Functional
Enucqougl

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Based on the similarities that were identified, it is clear that In weak matrix where the functional manager has more power, the project manager operates on part-time basis as in the case of functional structure. The operation of the project manager in balanced and strong matrix is similar to the case of project-orientated structure where he works full-time.  On the other hand, one major difference is that the functional structure comprises of a traditional organization that has a supervisor. On the other hand, in project-oriented structure, the project manager has the sole management authority while in mixed matrix, project and functional manager share authority.  The implication of these aspects is that with the project manager having more authority to allocate resources and the project time having more control to implementation, it creates high levels of accountability an enthusiasm towards implementation of project deliverables.  Therefore, it is evident that a high level of effectiveness in project implementation is achieved in strong matrix and in project-oriented structure as compared to the case of functional structure, weak, and balanced matrix.

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Goodrich, B. (2019, November 19).  Functional organizations vs Projectized organizations - PMP exam . PM Learning Solutions.  https://www.pmlearningsolutions.com/blog/functional-organizations-versus-projectized-organizations-pmp-concept-10 Mills, A. (2018).  Differentiating functional, matrix, and Projectized organizational structures .  https://flylib.com/books/en/3.170.1.29/1/ PM Vidya. (2021, June 20).  Organizational structures - Functional, Projectized, matrix - PM Vidya .  https://pmvidya.com/blog/organizational-structure-types-functional-projectized-matrix/ Roseke , B. (2019, August 16).  The 4 types of project organizational structure .  ProjectEngineer .  https://www.projectengineer.net/the-4-types-of-project-organizational-structure/