How project organization helps to structure project management

In project management, the project organization combines all the necessary steps to set up and structure a project and to regulate the responsibilities.

Organisation in this context means:

reducing complexity,
to keep the scope manageable and manageable,
define the timelines and intermediate objectives, and
to coordinate the individual teams.

In this way, the organization ensures that the project is completed quickly and safely.

What are typical forms of project organization?

As an introduction to project organization, the main question you need to answer is what forms project organization takes.

There are three forms of project organization, each of which has its raison d'être and its advantages and disadvantages for project organization. As a project manager it is one of your tasks to choose the appropriate form.

Functional organizational structure

The functional project organization form is located in a department. The specialist manager therefore has a higher authority than the actual project manager. An example of a project organization can be the sales or marketing department.

The advantages

The advantages of this structure are:

full resource control, therefore
fast problem solving,
easy communication and
motivated employees

The challenges

Challenges may arise because of the functional organizational form:

access to the experts outside the functional department can be difficult;
the loyalty of employees lies more with the specialist department and less with the project team;
for larger projects, the overall project success depends on the harmonious cooperation of many functional project managers;
without a stable network with other departments, the view for the overall strategic goal can be lost.

Functional organization is therefore best suited for small, manageable teams with a clearly defined task. For large projects you should therefore choose a different form of organization.

The project-related organizational structure

In the purely project-based structure, the teams are put together specifically for each project. The project manager has sole authority and determines the entire course of the project.

The advantages

The advantages of this form of organization include:

high level of control over the course of the project and the team,
all resources are dedicated to the project, as
easy planning of tasks and availabilities,
strong sense of identity and good team culture.

The challenges

The project-based organization also poses challenges because:

keeping a complete team ready for a project causes high costs
it may be difficult - or even impossible - for team members to return to their functional activities after project completion;
the high resource consumption makes it difficult for you to operate several project-related structures at the same time

This project structure is therefore only recommended for large-scale projects. However, the structure is easy to manage. You can use it to develop your leadership skills.

The matrix organizational structure

In the matrix structure, resources are divided between normal work and project work. Often the function manager and the project manager then share responsibility. The success of the project therefore depends crucially on the ability of the two project managers to cooperate.

The advantages

The advantages of matrix project organization are:

The high efficiency with which resources are always fully utilized.
The great flexibility to work on many tasks simultaneously.
The ability to react quickly, allowing the team to adapt to changes.

The challenges

The matrix structure also poses challenges because,

when there are too many tasks to be performed simultaneously, employees can quickly become overloaded;
If the two project managers do not manage to work together, disputes over resources and priorities are inevitable.

The matrix structures are very popular because of their flexibility. However, it is important with this form of organization that you use the same project management life cycle and the same methodology in both the technical and project-related parts. This makes it easy for team members to switch between the two projects.

Which organizational structure is the right one for the upcoming project is your decision and should therefore be made in each individual case.

How to keep track of project management with good project organization

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How project organization helps to structure project management

What are typical forms of project organization?

Functional organizational structure

The advantages

The challenges

The project-related organizational structure

The advantages

The challenges

The matrix organizational structure

The advantages

The challenges

From now on, every project will be a successful project!

How can Can Do support you in project organisation?

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