There are three types of organizations in terms of project management in a company. These are
- Functional Organization,
- Projectized Organization, and
- Matrix Organization.
Organizational Structure Type #1: Functional Organization
Functional Organization is the most common type of organizational structures in the industry. It is adopted by many multinational and big companies, in many industries.
Organizational Structure Type #2: Projectized Organization
In Projectized Organization, the entire company is organized by projects. So the resources of the project are fully dedicated to the project activities. Project Managers have control on the projects. Resources only report to project manager and the project manager has the ultimate control of resources.
Organizational Structure Type #3: Matrix Organization
Matrix Organization attempts to get strengths of Projectized and Functional Organizations. Projectized Organizations ensure the dedication of project resources to the project. Therefore, projects have a higher probability of success. On the other hand, Functional Organizations ensure sustainability of the organization since the resources turn back to their departments once the project is over. Therefore, Matrix Organization aims to get the benefits from these two previous organizational structures.