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Every organization is a little different from every other organization.

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Just as no two projects are alike no tour organizations are identical.

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However there are some generally accepted characteristics that describe the structure of an organization.

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So in this lecture we're going to look at these different organizational structures.

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It's really we're talking about how the organization is built.

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This influences the amount of power that you have as a project manager.

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So it's important to recognize these for your exam because you may get an exam question that describes

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a given organizational structure and if you don't know the characteristics of that structure then that's

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going to affect how you answer the question because it's all about the power.

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It's not all about power but that's generally where we go to as project managers.

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So we want to pay attention to these organizational structure types.

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There are some factors that we consider here in the structure like I mentioned just power but it's really

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it's some other characteristics as well.

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So it's the objectives alignment that the organization can structure its company based on how these

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satisfy the organizational objectives how we best achieve our goals our vision and strategy we might

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structure it by capabilities so sometimes we call it EHLO be lines of business or departments.

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So you have the I.T. department in the manufacturing department the sales department.

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So it's kind of my capabilities is one way.

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That's pretty obvious how to structure an organization.

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This also helps for control so we can better focus on the control and the effectiveness of these different

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disciplines.

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Escalation of decisions so it's easy to see who's in charge.

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If we're talking about the manufacturing department or the sales department or the I.T. Department It

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also sets up a scope of authority that you know the functional manager the I.T. Department or the CIO

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if it will if that's the case that they're going to be in charge of I.T. decisions.

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The simplicity of design that we want to get too cumbersome and over engineer how an organizational

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structure sometimes though organizations just kind of evolve into this Frankenstein structure because

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they've absorbed other groups or other businesses and it doesn't fit exactly 100 percent.

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And so you might have two I.T. departments one for data and you know one for the network or what have

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you.

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So the simplicity of design is always a goal that we don't want to over engineer things for a project

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manager.

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Obviously these delegation capabilities what are you allowed to do as the PM.

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How much authority do you have over Project decisions.

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Who's accountable who's responsible accountable means that your response you are accountable you're

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the one that makes that decision.

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And it comes back to you that you are the one who is accountable it's your accountability responsibilities

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means you have to do the work.

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You have to get it done.

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A lot of times we say roles and responsibilities we don't always see accountability but accountability

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means it's if it goes wrong it's on you.

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Adaptability means how flexible are you in the organization.

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Efficiency what's most efficient for the organization.

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How how will this make us.

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Are we nimble or are we have some pretty stuffy bureaucracy we have to flow through.

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What about cost.

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Is that by having these multiple entities in the organization is at a cost savings.

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Is that overhead.

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How does that affect our cost.

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What about the physical location especially in a very large organization you might have sites all around

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the world.

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And so that affects how nimble you are and how you manage projects and just how the company is structured.

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And then we want clear communication who reports to whom it is the P.M. report.

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Especially if they have an I.T. project for example that spans all of the different departments.

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Who's really in charge of those different decisions.

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So these are all organizational structure factors things that we think about when we answer these questions

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when we think about these different types of structures we're going to look at in the next slide.

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So these are all characteristics that go into the planning or sometimes not very much planning it just

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happens or evolves to this.

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So let's look at these 10 organizational structures.

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I know there's a lot of them here.

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You want to recognize these for your exam because the structure you're in will affect how much authority

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you have the power is typically shifting between the project manager and the functional manager.

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So the 10 different structures or look at all these in detail you have what's called organic or simple

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functional sometimes called centralized multi divisional.

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Then we have three Matrix structures weak balanced and strong project oriented.

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Sometimes called a composite or a hybrid of virtual structure and then there is a hybrid structure and

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then a PMO structure.

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So let's look at these 10 organizational structure types and their characteristics organic or a simple

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structure.

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The work groups within the organization are flexible.

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So a lot of times we see this not always but it could be a smaller type company where we have a big

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project to do and people just jump in and do the work and they work.

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The owner the manager the line employees they all jump in and just get the work done.

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So it's really not a lot of bureaucracy here it's all focused on getting the work done.

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The PM doesn't have a whole lot of authority might be more like a project coordinator or a project.

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Expediter really the authority will be like the owner of the organization.

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That's why I say it may be a startup company so the owner or the organization is in charge of the budget

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and in charge of getting the work done he might have you know just be call the PM but you might also

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be called a coordinator or expediter resources that are dedicated to the project or low meaning that

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you probably are going to have people that are full time on this project.

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Its more like an as needed basis and then the PM probably not going to have administrative staff to

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help the project manager so forms and reports and templates that false in the PM You dont have an admin

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staff to help.

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So organic or simple is just that is very simple.

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Remember that the main characteristic here is that people hop in and do the work as needed.

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Not real in love with roles in titles or organic or simple structure.

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A functional organization are sometimes called centralized.

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So there's clear division of business units or lines of business and that's what I was talking about

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a bit earlier when we talk about sales marketing finance I.T..

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That's probably a functional organization PMS and a functional organization do not have a lot of authority.

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It's more the functional manager makes the decision.

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Now the project in a functional organization stay within that function.

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So you have an I.T. project you have a sales project a manufacturing project that I'm not really using

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resources from these other lines of business it's all within this one entity.

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Everyone reports to a functional manager including the project manager the PM might be called the team

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lead might be called the Project Coordinator or expediter.

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Typically this is a part time role for everyone because not only working part time in the project you

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also have day to day activities that you're doing IT operations little to no admin staff and the functional

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manager manages the project budget.

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Now a multi divisional structure has some of the same characteristics as a function.

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All the differences though we have replication of functions for each division.

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So this idea of having an I.T. department you might have over here the manufacturing division and within

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manufacturing you have an I.T. department and then over here you have the finance department or division

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and then within it you have an I.T. group so you can have these replication of roles but they only support

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the division that they operate in.

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So it's similar to the function but it's much larger.

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And you had this replication of roles so it's not always efficient.

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Not only not always cost efficient but sometimes it's done out of necessity because you have such a

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massive organization that you have these replication of roles.

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The PM really doesn't have a whole lot of authority like a functional the same way again might be called

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a project coordinator resources for the project.

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Probably part time because you're doing your day to day activities and you're participating in the project

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could be a part time admin staff so you might have someone that serves as what's called a scribe or

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administrative assistant that they're going to help with scheduling or keeping minutes and agendas and

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things like this.

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Again the functional manager is going to manage the project budget.

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Now let's talk about the three Matrix structures we have weak balanced and strong that adjective weak

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balanced or strong.

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That describes the amount of authority the project manager has in relation to the functional manager.

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So a weak matrix is where they are in these matrix is where the team comes from all over the company

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that it's not just in manufacturing or just in I.T..

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So you have a project where you have people from manufacturing and people from finance and people from

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I.T. and so on.

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So you have these resources from all over the country all over the world it could be the project manager

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has very little before though and a weak matrix management is part time.

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The project team is part time as well.

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The project coordinator or team lead may be the title for the PM and you might have part time admin

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staff to help again the functional manager manages the project budget.

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The balance major balas matrix describes the amount of authority between the PM and the functional manager

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systems are a power struggle here.

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Typically the project manager still has a low to moderate amount of authority over the project team.

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It's still part time still a part time PM because people have day to day operations they have to tend

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to.

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You might have a part time and then a straight of staff and again the project manager the functional

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manager they're going to have a little power struggle but they share management over the project budget.

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So balas Matrix it's really it sounds nice but it's more of a power struggle.

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Now a strong matrix very similar characteristics.

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But this time the project manager has more authority over the project budget than the functional manager.

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So the PM has moderate to high level of power your management of a part time to a nearly full time project

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team full time role as a role as a project manager and you might have full time administrative staff.

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So a strong matrix is more focused on the projects and the PM.

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The next one we have is a project oriented a project oriented means that the groups colocated or not.

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They all work on this project full time.

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So we come together from around the organization even if we're virtual And this is the only project

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we work on any given time.

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So it's project oriented.

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Sometimes you might see it as Project sized but really as project oriented as what we call it when the

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project manager has close to complete control over the team so he has the most power as a high level

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of autonomy.

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The PM's going to work full time on the project and the team will work full time on this project.

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You have a full time administrative staff that they're helping with the logistics at times you may have

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a full time scheduler you may have a risk person but they're helping you may have an administrative

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assistant there helping manage the project and the project manager manages the budget and project oriented

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a virtual organization.

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Does it necessarily mean that we're all distributed when we talk about a virtual organization.

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What we're really talking about is there we have all these different departments that are involved in

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the project and you have one person for each department that represents that department or that group.

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So it's kind of like a network among these different groups represented by this one individual.

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So this the idea of the point of contact for each different department.

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Communication can sometimes be a challenge because you have this one point of contact you have to go

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through that person and that person goes down to the team or the stakeholder there gets information

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brings it back and gives it back to you the PM and you give it to this guy.

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So it just kind of gets kind of messy when it comes to communicating.

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The PM really has low authority over this project team because these are all points of contact.

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So not a whole lot of authority.

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Go back to sharing the authority with a functional manager.

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APM can be full time or part time project team members these different points of contact here that are

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on the team.

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They are likely part time and you might have administrative staff they could be part time or full time

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a lot of flex there.

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So a virtual organization really kind of describes this.

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Networks we think of virtual think of this network node but the nodes are the people the little point

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of contacts for each one of those different departments involved a hybrid organization it's just any

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type of a blend of all these type and the mash up that you want is a composite structure or a hybrid

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organization.

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So you have a blend where you are a strong matrix of bring people from all over.

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But for this one project you're going to be project oriented you're going to be only working on this

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project for the duration.

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So it's kind of a special project.

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And then the project manager power is just unique to the structure it's you know it's kind of hard to

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nail this one down because you make it up.

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It's a blend of all these different structures.

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Project management offices will talk more about Primos coming up kind of a high level because it does

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affect our structure amount of power you have as the PM A PMO is a project management office a PMO organizes

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and they manage the control over all projects in an organization.

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That organization could be the Enterprise the whole company or it could be just one department.

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It's a uniform approach is the goal of being a PM though you want a uniform approach in the PMO.

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How project managers share resources across projects they can offer some coaching and communication

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help with that.

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Do some change control create some processes and policies for change control and they also help resolve

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issues.

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So that's the PMO a big picture of all of these so some pros and cons quickly not going to belabor the

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point here.

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Organic or simple prose.

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People are flexible.

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The cons people can feel overwhelmed because they have this project they have to tend to as well as

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their day to day tasks functional functional managers in charge.

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PM has little authority multi divisional clear lines of authority.

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The cons though you have duplication of efforts.

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Project oriented the PM has autonomy and the project team works full time on that project for the duration

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of the project.

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The cons though your your teams may compete or stockpile resources and they also may have some anxiety

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as they are worried about what are they going to do next in the project.

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A strong matrix strong Matrix team can be assigned 50 to 90 percent of the duration.

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You might have some competition for resources still.

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A balance matrix.

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The project manager has balance project the authority with management but the function manager or the

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PM may be competing.

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So there's a little bit of a struggle here for time and in project team members may feel like they have

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multiple bosses week matrix the PM has little authority and then the cons of this is the functional

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Department.

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It's separate is a separate activity and then Team members may feel like there are multiple resources

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at once.

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A virtual is resources and departments are segmented so there's just the single point of contact and

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that creates communication challenges.

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The PMO is we have a standard in centralized approach and then it can feel stifling or disconnected

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from the project manager.

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So there are some quick things here pros and cons don't want to belabor the point.

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You can study that at your leisure is probably not overwhelmingly important to know these for your exam.

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All right.

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No a long lecture here.

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Good job.

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Keep moving forward.

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I'll see you in the next lecture.