There are following three type organization in Industry
[1] – Functional Organization It is Power of Functional Manager
Features of Functional Organization
- Employees are grouped based on their functional areas of expertise, such as marketing, finance, IT, or human resources.
- Each function operates independently, with a clear hierarchy and reporting structure.
- Departments work on their specific tasks and are managed by functional managers.
- The project manager’s role is limited or nonexistent; functional managers have full control.
Functional Organization: Suitable for organizations with routine operations and minimal project demands.
[2] – Projectized Organization:: It is Power of Project Manager
Features of Projectized Organization
- The organization is structured around projects rather than functional departments.
- Teams are formed specifically for projects, and team members report directly to the project manager.
- The project manager has full authority over the team and resources.
- Teams are disbanded after project completion & The organization focuses on delivering projects.
Projectized Organization: Ideal for project-focused industries like construction or event management.
[3] – Matrix Organization:: combination of both Functional & Projectized organization
Features of Matrix Organization
- Combines elements of both functional and projectized structures.
- Employees report to both functional and project managers, sharing responsibilities between their department and projects.
Matrix Organization is most popular Organization.
Matrix Organization: Best for organizations balancing both ongoing operations and multiple simultaneous project
[a] – Strong Matrix
The project manager has more authority, similar to a projectized organization.
[b] – Balanced Matrix
- Equal authority between functional and project managers.
- Both collaborate to make decisions.
[c] – Weak Matrix
- Functional managers retain primary control.
- The project manager has a coordination role with limited authority.
Relationship Between Both Project Manager & Functional Manager & Matrix
