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Organizational Structure 5 Types

Organizational Structure Is Of 5 Types

The Project Management Body of Knowledge (PMBOK) recognizes five types of organizational structures. They are:

  1. Functional Structure: This structure is best suited for organizations that have stable and repetitive processes. In a functional structure, employees are grouped by their area of expertise, such as marketing, finance, or engineering. This structure provides clear lines of authority and decision-making, making it easier to manage day-to-day operations. The benefits of a functional structure include specialized knowledge, clear responsibilities, and effective resource utilization.

  2. Projectized Structure: This structure is ideal for organizations that have a high volume of projects. In a projectized structure, the project manager has full authority over the project and the project team, and the focus is on delivering the project within budget, scope, and time constraints. The benefits of a projectized structure include clear lines of authority, effective communication, and improved project delivery.

  3. Matrix Structure: This structure combines the benefits of functional and projectized structures, making it suitable for organizations with both ongoing operations and a high volume of projects. In a matrix structure, project managers and functional managers both share responsibility for the project, leading to a balance of specialized knowledge and project delivery focus. The benefits of a matrix structure include flexibility, improved resource utilization, and effective project management.

  4. Weak Matrix Structure: This structure is similar to a matrix structure, but functional managers have more control over projects. This structure is best suited for organizations that have a low volume of projects and a focus on ongoing operations. The benefits of a weak matrix structure include efficient resource utilization and the ability to leverage specialized knowledge.

  5. Balanced Matrix Structure: This structure is similar to a matrix structure, but project managers and functional managers have equal control over projects. This structure is ideal for organizations that have a moderate volume of projects and a focus on both ongoing operations and project delivery. The benefits of a balanced matrix structure include improved communication, clear lines of authority, and effective project management.

These were organizational structure types. Organization adopt the structure type that suits their projects, the project needs, project environment and even the internal and external environmental factors. 

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