Every organization has a certain structure or hierarchy under which it operates. The kind of structure a company has play important role in terms of project management.
Mainly there are three type of Organizational structure:
• Functional
• Projectized
• Matrix
In a Functional Organizational structure there are dedicated team or departments. For example a company have HR, IT, Accounts, Sales, Training department. Each of these departments has a department lead. He is called functional manager. Every one working on his department reports to him and no project manager can assign any work directly to the team members working in the specific department. Project Manager has to go through the Functional Manager before assigning or availing services of team members working in his/her department.
So Functional Manager has Power in a functional structure.
In a Projectized Organization structure; every one works in a project. Every one reports to their project manager. Project manager has direct control on the resources and he can assign task to them.
So Project Manager has Power in a Projectized Organization
In a Matrix Organizational structure a team member reports to two bosses - Functional Manager and Project manager.
If the organization is following the Strong Matrix structure, the project manager has the power/authority over the functional manager.
If the organization is following the Weak Matrix structure, the functional manager has the power/authority over the project manager.
If the organization is following the Balanced Matrix structure, the functional manager and project manager both has the power/authority to control or assign task to resources.
