Question

Describe the advantages and disadvantages of functional, projectized, and matrixed organizational structures.

Your response should be at least 200 words in length.

Answer 1

Functional Organizational Structure--------

Advantages-----------------

• It works well for small teams and small projects because the function has full control over the team members and other resources required.
• You can easily access the experts you need because they are in the same functional area.
• It’s quick to get everyone together to resolve problems related to the project.
• You can limit the project communications tools you need to use because the team is relatively small and simple.
• You often get enthusiastic team members who are keen to work on the project because it provides them with career opportunities. Project work can be a great way to motivate your team.
• If you are handing the project over to a functional team, it will be the functional team you work in, which can make closing a project easier.

Disadvantages------------

• Work takes place in a silo, which might mean you don’t have access to people outside your functional division.
• People on the project team might be more loyal to their department or team manager than to their work on the project, which can create conflicts.
• A large project can end up with a functional project manager for each function. It can result in work falling through the cracks if all project managers don’t work harmoniously together.
• Functional work can be isolating in that you don’t have an opportunity to network widely with the company. Maintaining a strategic focus can be harde.

Projectized Organization------------

Advantages----------------

1. First and the most important advantage of this organizational structure type is the efficient project organization. Because all resources of the project are dedicated to project tasks and assignments. This dedication automatically increases the focus and motivation of team members for the success of the project.

2. Another  advantage is that a more effective communication is ensured in projectized organizations compared to other organizational structures. Because the team members are dedicated to a project and their existence in the organization solely depends on the project they are working for.

3. Teams can have a strong sense of identity. It is the easiest structure within which to create a strong team culture.

4. The whole team is focused on the team’s goals, so conflict of loyalty exists with the day job for the people working on the project. Their day job is the project.

Disadvantages------------

1. The most important disadvantage of this organizational structure type there is no “home” for the project resources once the project is finished. Since there are not departments for the resources based on their specialties, if there won’t be a new project, resources are released at the end of the project.

2. Another disadvantage of the projectized organizations is the duplication of facilities and job functions. Tools and resources of a project belong to only one project in projectized organizations.

3. By their nature, dedicated teams suck up resources to work on just one thing. They can limit the number of projects the company can do at any one time, especially when different projects require the same skills.

Matrix Organizational Structure-----------

Advantages--------------------------

1. Resources are used efficiently and can move around between projects as needed.

2. You can work on lots of different things, sometimes in parallel—although this point can be argued as a disadvantage as well.

3. Teams and individuals can be very responsive. If a new project comes along that has to take priority, it’s easy enough to pivot and suddenly focus on something else. You can’t do that easily in a project structure, which takes longer to disband and regroup.

4. The structure requires that everyone use the same project management lifecycle and methodology, so moving between projects is easy. People can join a project team with relatively little onboarding required when the terminology and processes are common.

DISADVANTAGES-------------

1. 1. The conflict between projects is common because you might be fighting for the same resources as another project.

2. The other project might have ring-fenced the best resources—the most appropriate people with the right skills—or their line manager might not make them available for project work.

3. There can be some conflict between business-as-usual tasks and project work for individuals, especially when both managers are giving them different priorities.