{"id":11242,"date":"2023-07-13T08:00:00","date_gmt":"2023-07-13T08:00:00","guid":{"rendered":"https:\/\/twproject.com\/?p=11242"},"modified":"2023-11-07T12:38:45","modified_gmt":"2023-11-07T12:38:45","slug":"project-organizational-structure-project-management","status":"publish","type":"post","link":"https:\/\/twproject.com\/blog\/project-organizational-structure-project-management\/","title":{"rendered":"Project organizational structure in Project Management"},"content":{"rendered":"\n<p>The <strong>project organizational structure<\/strong> is an essential tool for determining the hierarchy of people, their function, workflow and reporting system.<\/p>\n\n\n\n<p>It is a factor in project management that plays a fundamental role in guiding and defining the way in which the organization carries out its operations.<\/p>\n\n\n\n<p>There are different <strong>project organizational structures<\/strong> defined according to the area in which the organization operates: they depends on the activities related to the core business.<\/p>\n\n\n\n<p>If an organization is dealing with temporary jobs for example, the structure will probably better manage the recruitment and dismissal of employees as needed.<\/p>\n\n\n\n<p>On the other hand, if the organization deals with a production chain that requires continuous operation, it will have a different structure. In this case, the tasks assigned will engage employees for a longer time to achieve the goals of the organization.<\/p>\n\n\n\n<p>As organizations grow or their needs change, the organizational structure must adapt to support the new goals.<\/p>\n\n\n\n<div class=\"table-of-content\">\n<h5>TABLE OF CONTENTS<\/h5>\n<ul>\n<li><a href=\"#why\">Why is a project organizational structure necessary?<\/a><\/li>\n<li><a href=\"#types\">Types of project organizational structure<\/a><\/li>\n<li><a href=\"#organic\">Organic or Simple Organization<\/a><\/li>\n<li><a href=\"#functional\">Functional or Centralized Organization<\/a><\/li>\n<li><a href=\"#multidivision\">Multi-divisional Organization<\/a><\/li>\n<li><a href=\"#matrix\">Matrix Organization<\/a><\/li>\n<li><a href=\"#project\">Project oriented (composite or hybrid) Organization<\/a><\/li>\n<li><a href=\"#virtual\">Virtual Organization<\/a><\/li>\n<li><a href=\"#hybrid\">Hybrid<\/a><\/li>\n<li><a href=\"#pmo\">PMO<\/a><\/li>\n<li><a href=\"#advantages\">The advantages of having an effective organizational structure<\/a><\/li>\n<li><a href=\"#tools\">The working tools<\/a><\/li>\n<\/ul>\n<\/div>\n\n\n\n<p><a name=\"why\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is a project organizational structure necessary?<\/h2>\n\n\n\n<p>Every organization must have a well-defined <strong>organizational structure<\/strong> in order to work efficiently and achieve its goals with fewer risks.<br>In the modern market, organizations must be very competitive, efficient, and dynamic in order to survive and grow. In fact, <a href=\"https:\/\/twproject.com\/blog\/project-stakeholders\/\">Stakeholders<\/a>&nbsp;become more and more aware and demanding and want quick answers.<br>Therefore, in order to meet the needs of the client and survive in the market, each organization must build an organizational structure capable of best supporting its goals.<br><a name=\"types\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of project organizational structure<\/h2>\n\n\n\n<p>The organizational structure depends on many factors, such as the style of government, the style of leadership, the type of organization, the workflow, the hierarchy, etc.<\/p>\n\n\n\n<p>The PMBOK orders organizational structures into eight types:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Organic or Simple Organization<\/li><li>Functional or Centralized Organization<\/li><li>Multi-divisional Organization<\/li><li>Matrix Organization \u2013 strong, weak or balanced<\/li><li>Project Oriented (composite or hybrid) Organization<\/li><li>Virtual OrganizationHybrid<\/li><li>PMO<\/li><\/ul>\n\n\n\n<p>There are actually many other classifications, but we prefer to report the official one, mentioned in <a href=\"https:\/\/twproject.com\/blog\/the-sixth-edition-of-the-pmbok\/\" target=\"_blank\" rel=\"noopener\">the sixth edition of the PMBOK<\/a>.<\/p>\n\n\n\n<p>The table below shows the functions and characteristics of each single type of organizational structure:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"2064\" height=\"2110\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology.png\" alt=\"Organizational structure typology\" class=\"wp-image-11249\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology.png 2064w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-616x630.png 616w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-1105x1130.png 1105w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-36x36.png 36w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-1467x1500.png 1467w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-690x705.png 690w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/Organizational-structure-typology-450x460.png 450w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><\/figure><\/div>\n\n\n\n<p>Now, let&#8217;s see them in more detail.<br><a name=\"organic\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Organic or Simple Organization<\/h3>\n\n\n\n<p>This type of organizational structure is the simplest. Businesses composed of only one person are also included in this category.<\/p>\n\n\n\n<p>This type of organization also includes freelancers. Of course, the role of the project manager is partly covered by the owner or the professional, who personally manage the workflows.<br><a name=\"functional\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Functional or Centralized Organization<\/h3>\n\n\n\n<p>This type of organizational structure is the most commonly used.<\/p>\n\n\n\n<p>In fact, in a functional organizational structure, the organization consists of various departments where people with similar skills gather together.<\/p>\n\n\n\n<p>It is the classic setting in which the staff is structured in areas and departments such as the sales department, marketing department, finance department, etc.<\/p>\n\n\n\n<p>To sum up, this structure is functional as it improves the efficiency of each working group.<br><a name=\"multidivision\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Multi-divisional Organization<\/h3>\n\n\n\n<p>In an organization of this kind, you can have many functional divisions with a small centralization.<br>Most of the time these divisions are independent of each other.<\/p>\n\n\n\n<p>Here, an organization is structured in various divisions in which people, with different skills, are held together according to a similar product, service or geographic area.<\/p>\n\n\n\n<p>In conclusion, each division has the resources necessary in order to work and can carry out the task independently.<br><a name=\"matrix\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Matrix Organization<\/h3>\n\n\n\n<p>A matrix organizational structure is a hybrid between the functional organization and the project oriented organization.<\/p>\n\n\n\n<p>More secifically, in a matrix organization there can be two main structures: vertical and horizontal.<\/p>\n\n\n\n<p>Here, an employee can be part of a functional group, but can also work on a project.<\/p>\n\n\n\n<p>In turn, a matrix organization can be of three types:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A strong matrix<\/li><li>A weak matrix<\/li><li>A balanced matrix<\/li><\/ul>\n\n\n\n<p>Stronger organizations are closer to a project oriented organization and here the project manager has most of the authority and has a full-time team.<\/p>\n\n\n\n<p>On the other hand, weak matrix organizations are closer to a functional structure. in this case, the project manager has low authority, no budget control, and often runs a part-time project team.<\/p>\n\n\n\n<p>Instead, balanced matrix organizations combines the properties of both previous types. Here, the project manager has a medium-low authority and a part-time team; the budget, instead,  is managed both directly by the PM and by the functional manager.<br><a name=\"project\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Project oriented (composite or hybrid) Organization<\/h3>\n\n\n\n<p>An organization of this type considers every job as a project. Here, the project manager has full authority to complete the project successfully, has a full-time role, budget control, and a full time team available.<\/p>\n\n\n\n<p>In other words, a team-based organization is another name for a project oriented organization.<br><a name=\"virtual\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Virtual Organization<\/h3>\n\n\n\n<p>Another name for this structure is virtual society. Here, the central organization connects to external companies (such as vendors, customers, associates) with a network connection that allows to achieve business growth and profitability. This structure allows the organization to work as a unit.<\/p>\n\n\n\n<p>In a virtual structure, the organization maintains its core business, while the rest of the processes are outsourced. Sometimes, this type of organization is also known as an empty organization.<\/p>\n\n\n\n<p>Here, the project manager has a low-moderate authority and mixed power over the budget. The project team can be full or part-time depending on the situation.<br><a name=\"hybrid\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hybrid<\/h3>\n\n\n\n<p>In a hybrid organization, a combination of the above-mentioned structure types can be used.<\/p>\n\n\n\n<p>Responsibility, authority, and other factors can also vary depending on the structure.<br><a name=\"pmo\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PMO<\/h3>\n\n\n\n<p>The <a href=\"https:\/\/twproject.com\/blog\/project-management-office\/\" target=\"_blank\" rel=\"noopener\">PMO<\/a>&nbsp;is also a mixed type of organizational structure, but here the project manager has the highest authority, controls the budget, and has a team completely at his disposal.<br><a name=\"advantages\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The advantages of having an effective organizational structure<\/h2>\n\n\n\n<p>An organizational structure is a framework that helps an organization effectively manage its operations and achieve its goals with minimal effort.<\/p>\n\n\n\n<p>This structure defines the relationship between the various departments and teams of the organization. Moreover, it helps organizations to delegate authority, power, and responsibility.<\/p>\n\n\n\n<p>But the <strong>project organizational structure<\/strong> also defines how the employees relate to their superiors or to the Project Manager; therefore, it becomes somethings strategic for coordination and cooperation within the group members.<\/p>\n\n\n\n<p>The main advantage of having an effective organizational structure is the reduction of friction and discussions among the employees since the roles, responsibilities, and reporting structure are very clear.<\/p>\n\n\n\n<p>Having an appropriate <strong>organizational model<\/strong> can bring huge benefits to any organization. Some of these advantages are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Allowing an organization to grow.<\/li><li>Keeping attention on strategic goals, instead of having each department focused and limited on its agenda.<\/li><li>Joining a group of people and directing them towards a common goal.<\/li><li>Allowing employees to improve their skills.<\/li><li>Making the decision-making process more efficient, smoother, and faster.<\/li><li>Facilitating employee specialization.<\/li><li>Allowing better control and use of resources.<\/li><li>Enabling easier and better communication, which helps reducing conflicts.<\/li><li>Allowing employees to behave better.<\/li><li>Helping employees to grow professionally, to make a career, and to simplify the inclusion of new colleagues.<\/li><li>Helping identifying roles and responsibilities in a clear and precise way.<\/li><\/ul>\n\n\n\n<p>Therefore, each organization needs an organizational structure, otherwise chaos would take the upper hand.<\/p>\n\n\n\n<p>In short, an organizational structure is essential for the good functioning of a company. Each company should choose its organizational structure according to its specific needs and requirements, since this also depends on the achievement of the prefixed results.<br><a name=\"tools\"><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The working tools<\/h2>\n\n\n\n<p>So if, as we have seen, organisational structures are multiple and complex, are there instruments that take this diversity into account?<\/p>\n\n\n\n<p>The answer is <a href=\"http:\/\/twproject.com\" target=\"_blank\" rel=\"noreferrer noopener\">Twproject<\/a>. This project management software excels for its great flexibility, and even in role management it is no exception.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"994\" height=\"375\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/08\/struttura_organizzativa.gif\" alt=\"project roles\" class=\"wp-image-20730\"\/><\/figure>\n\n\n\n<p>Having dealt with companies and project managers from all sectors for over twenty years, Twproject has developed a system that allows any &#8211; and we mean literally any &#8211; organisational structure to be managed. In this way, the project manager will allocate tasks and permissions in accordance with the company configuration.<\/p>\n\n\n\n<p>Those who use project management software (here, for example, we explain why it is <a href=\"https:\/\/twproject.com\/blog\/projects-resource-workload-what-you-need-to-know\/\" target=\"_blank\" rel=\"noreferrer noopener\">a good idea for managing resource workload<\/a>) may, however, have the impression that they have to approximate their company&#8217;s internal processes and structures.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"840\" height=\"471\" src=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload-840x471.png\" alt=\"workload\" class=\"wp-image-19188\" srcset=\"https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload-840x471.png 840w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload-400x225.png 400w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload-1536x862.png 1536w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload-705x396.png 705w, https:\/\/twproject.com\/blog\/wp-content\/uploads\/2023\/03\/workload.png 1600w\" sizes=\"auto, (max-width: 709px) 85vw, (max-width: 909px) 67vw, (max-width: 1362px) 62vw, 840px\" \/><figcaption>The dynamic loading of resources in Twproject<\/figcaption><\/figure>\n\n\n\n<p>With Twproject, you will avoid approximation since you will better reflect the relationships within your team, whatever they may be.<\/p>\n\n\n\n<p>For example, Twprojects allows you to manage the complexity of <a href=\"https:\/\/twproject.com\/blog\/projects-resource-workload-what-you-need-to-know\/\" target=\"_blank\" rel=\"noreferrer noopener\">project workload<\/a>, distinguishing between project, spot or routine ativities. <\/p>\n\n\n\n<p>But there is much more: everything you need to manage your workflow, whatever it is. <\/p>\n\n\n\n<p>To find out more, visit this link and <a href=\"https:\/\/demo.twproject.com\/applications\/teamwork\/welcome\/createUserEnvironment.jsp\" target=\"_blank\" rel=\"noreferrer noopener\">get your free trial<\/a>. We are sure you will never go back!<\/p>\n\n\n\n<div class=\"tw_promobox box_type3 sBlue sImage\" style=\"background-image: url('http:\/\/twproject.com\/blog\/wp-content\/uploads\/twproject-ipad-2-2.jpg');\">\n<div class=\"av_promobox avia-button-yes avia-builder-el-1 el_after_av_promobox avia-builder-el-last\">\n<div class=\"avia-promocontent\">\n<h2>We have the tools, we have the culture.<\/h2>\n<\/div>\n<div class=\"avia-button-wrap avia-button-right \"><a class=\"avia-button avia-icon_select-no avia-color-custom avia-size-xlarge\" href=\"https:\/\/twproject.com\/free-trial\/\"><span class=\"avia_iconbox_title\">Try us for free!<\/span><\/a><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The project organizational structure is an essential tool for determining the hierarchy of people, their function, workflow and reporting system. It is a factor in project management that plays a fundamental role in guiding and defining the way in which the organization carries out its operations. There are different project organizational structures defined according to &hellip; <a href=\"https:\/\/twproject.com\/blog\/project-organizational-structure-project-management\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Project organizational structure in Project Management&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":21447,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_custom_body_class":"","_custom_post_class":"","footnotes":""},"categories":[58],"tags":[],"class_list":["post-11242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Project organizational structure in Project Management - Twproject.com<\/title>\n<meta name=\"description\" content=\"The project organizational structure is an essential tool for determining the hierarchy of people, their function and the overall workflow\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/twproject.com\/blog\/project-organizational-structure-project-management\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Project organizational structure in Project Management - 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