One aspect of project management that used to get a lot of attention in the 1950s and 1960s was the organizational structures of the project. A host of new organizational structures have appeared on the scene in the past two decades, but they still lack many of the desirable qualities of traditional methods. Ultimately, project management directors look for organizational methods that facilitate teamwork, can maximize the use of limited resources, efficiency, and quality in the way a project is completed and goals and objectives are achieved. This article will examine the three main traditional organizational structures for project management. These three structures are the functional organization, the project organization, and the matrix organization.

Functional organization This structure is by far the oldest organizational method, but it is still one of the most successful. This method works best when used for routine job functions and maintaining quality and work standards. Functional organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments for each to contribute. Alternatively, projects can be shuffled to different departments where each department manager ensures that their parts of the work have been completed.

This method does not work very effectively when used to facilitate complex projects. One of the main criticisms of this organizational structure is the lack of built-in recognition, measurement, and reward of employees for project performance. Similarly, there is very little individual responsibility for the project management tasks that need to be done.

Project organization Project organization is a structure specifically designed for executing projects. It is specifically designed to meet the demands of complex projects by isolating single work and maintaining a strong focus on completing the project. Once the project is complete, this structure dissolves. This structure is effective in maintaining dedicated resources throughout the life of the project.

The main criticism of this structure is that it is inefficient in the transfer of technology and the use of resources. Also, when the members begin to act as a cohesive team, the project ends and the organization dissolves. Since this project has dedicated resources throughout its life, there is great inefficiency when there are underutilized employees during certain parts of the project.

Matrix organization The matrix organization is a project management structure that evolved from the recognition of inherent flaws in the Functional Organization and Project Organization structures. Created in the 1970s, this structure combined the best components of these two structures. This model works very well when there are several projects coordinated at the same time. Functional managers oversee staffing, training, job assignment, and evaluation of project personnel. Functional specialists are assigned one or more projects and oversee that these individualized projects achieve their objectives through maximum resource efficiency.

Despite acknowledging and avoiding the flaws involved in another structure, the Matrix Organization still has some problems of its own. Individual employees report to at least two managers, which can often lead to ambiguity and conflict. These problems can be avoided through good communication and strong leadership among managers.

This article simply provides an overview of various project management organizational structures. Functional Organization, Project Organization, and Matrix Organization are the three most traditional project management structures that are still used today due to their effectiveness. However, keep in mind that there are many other methods available that may be better suited to your business situation. However, the type of organizational structure that your company should choose depends on the type of project, as well as the objectives and goals that it ultimately aims to achieve.