Types of organization in Project Management Informal Organization

An informal organization is one which is not reliant on a hierarchical structure, typical of largescale companies. It is not typical for an entire organization to be informal, as this could cause problems which are discussed in a moment, but formal organizations do tend to have informal ones within them. Informal originations have very loose structures. People can become members freely and sometimes spontaneously; relationships are undefined and the sharing of responsibility and involvement of members will vary considerably. The best example to give is an organizations football team. One might find a managing director, a manager and a manual worker all on the same team- and we know that relationships between them will be very different than in the office place. So, the football team is an informal organization; the company as a whole is formal since it has increasing levels of power. Advantages: The advantages of informal organizations are that they create strong relationships between their members. There is no theoretical "boss" and this makes all members feel like a larger part of the organization as a whole. Disadvantages: Lack of structure can result in a reduction in professionalism. The company cannot benefit from different people managing different areas easily The members cannot look to the future- after all, with no-one above them, they cannot look for promotion and therefore find themselves stuck with the same job

Formal organization
Functionally Based
Functional organizational structure is best for smaller companies or those that focus on a single product or service. Not designed to change quickly, functional structure works well in a stable environment where your business strategies are less inclined to need changes or updating. Functional structures are the most common type of structural design and have evolved from the concept of high specialization, high control framework of manufacturing organization turned towards high efficiency. Functional organizations contain specialized units that report to a single authority, usually called top management. Referred to as functional units or areas, these specialized units contain personnel with various but related skills grouped by similarities. Each functional unit handles one aspect of the product or service provided: information technology, marketing, development, research, etc. Top management is responsible for coordinating the efforts of each unit and meshing them together into a cohesive whole. Advantages:

The functional organization structure clusters those with similar knowledge in the same place. Since employees grow within their field, this leads to the development of specialists, especially in technical fields The in-depth training and focused career path gives employees clear career goals and the direction to reach them The functional structure maximizes performance by facilitating sharing of valuable expertise by superiors with their subordinates

Disadvantages:

The functional units are not accountable to each other and share decision-making power, the process is more bureaucratic and tends to take longer While the flow of communication within a department is expedient, communication between departments and synchronization of work and project completion is more difficult to manage Also too much focus leads employees to neglect the larger view of the company and its objectives

Project Based
Project organizational structure refers to the creation of an independent project team, the teams management is separated from the parent organizations other units, have their own technical staff and management, enterprise assigns certain resources to project team, and grant project manager of the largest free implementation of the project . Project organizational structure is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project. Advantages:

Focus on this project team is the main advantage as project manager is solely responsible for the project, the only task for project members is to complete the project, and they only report to the project manager, avoiding the multiple leadership The project teams decision is developed within the project, the reaction time is short Members work with strong power, high cohesion, participants shared the common goal of the project, and individual has clear responsibilities.

Disadvantages:

When a company has several projects, each project has its own separate team, which will lead to duplication of efforts and the loss of scalable economies There is a clear dividing line between the project team and the parent organization, weakening the effective integration between project team and the parent organization The project team members lack of business continuity and security, once the project ended, return to their original functions may be more difficult.

Matrix Based
Matrix Organization Matrix Organization is a project management structure that evolved from the recognition of inherent flaws in the Functional Organization and Project Organization structures. This structure combined the best components of these two structures. This model functions very well when there are multiple projects being coordinated at once. The functional managers oversee the staffing, training, job assignment and evaluation of the project's personnel. The functional specialists are assigned one or more projects and oversee that these individualized projects' achieve their objectives are completed through maximum resource efficiency. Matrix organizational structure is a hybrid form; it loads a level of project management structure on the functional hierarchical structure. According to the relative power of project managers and functional managers, in practice there are different types of matrix systems Weak/Functional Matrix: A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas. Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and the functional managers. It brings the best aspects of functional and project based organizations. However, this is the most difficult system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix:

A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed. Advantages: The resources can be shared in multiple projects, which can significantly reduces the problem of redundant staff Project is the focus of work, with a formal designated project manager will make him give more attention to the project, and responsible for the coordination and integration work between different units When there are multiple projects simultaneously, the company can balance the resources to ensure that all the projects can progress to complete their respective costs and quality requirements The anxiety of project members is reduced greatly after the end of the project, while they are strongly associated with the project; on the other hand, they have a home feeling about their functions

Disadvantages:

The matrix structure has increases the intensity of tensions between functional manager and project manager Under any circumstances, sharing equipment, resources and personnel among different projects will lead to conflict and competition for scarce resources In the process of project implementation, the project manager must negotiate and consult with the department managers on various issues, which lead to the delay in decision making Matrix management is not according to the principles of unified management; project members have two bosses, the project manager and functional managers, where their commands are divided