Category Archive

All articles in Organizational Structures category

What Is the Difference Between Project-driven And Non-project-driven Organizations?

Project-driven organizations (where Project Management is largely adopted) make their income mainly through projects, clearly assign the responsibility of profitability and loss to the Project Manager, and have flexible career paths. Non-project-driven organizations (where Project Management is still immature) make most of their income through production, and have traditional career paths, where moving up the employment ladder is hard. Additionally, the responsibility of profitability and loss in these organizations is ambiguous. Project-driven organizations have either fully projectized of matrix organizational structures, non-project-driven organizations have (nearly always) a functional (traditional) organizational structure.


What Are the Advantages and Disadvantages of a Functional Organizational Structure?

A Functional organizational structure has several advantages and disadvantages when it comes to managing projects:
Advantages

Employees do not report to multiple managers. Each employee will report to his direct functional manager. This will reduce communication channels.
Employees tend to learn from each other since those with the same specialty (or set of skills) are grouped together.

Disadvantages

No one [...]