Project Management
IV
Theme 1: Chapter 4
,Introduction
• Chapter Outcomes:
• At the end of this chapter, a learner will:
• 1. Understand what is meant by Organizational Structure Framewo
• 2. Have knowledge of the types of Organizational Structure.
• 3. Understand the concepts of Programme & Portfolio Managemen
,Chapter 4: The Organizational
Framework
• It is vital that the organizational structure framework is
established at the outset and well understood by all
concerned since otherwise it will be impossible to get
important decisions made and adhered to.
• Types of Organizational Structures:
(1) Functional Organization
(2) Pure Project Organization
(3) Matrix Organization.
, • Functional Organization:
• Within a functional structure, the organization is divided into a number o
departments, each specializing in one aspect of the business. This is the
most basic and common type.
• The advantage of functional organizations is that they encourage the
development of a high degree of specialist skills.
• People in the functional units report to managers who understand their
fields and can provide relevant advice, guidance and support.
• Note: A great problem with functional organizations is that people can
develop a ‘silo’ mentality – being more concerned with departmental
objectives than with the needs of the organization as a whole.
IV
Theme 1: Chapter 4
,Introduction
• Chapter Outcomes:
• At the end of this chapter, a learner will:
• 1. Understand what is meant by Organizational Structure Framewo
• 2. Have knowledge of the types of Organizational Structure.
• 3. Understand the concepts of Programme & Portfolio Managemen
,Chapter 4: The Organizational
Framework
• It is vital that the organizational structure framework is
established at the outset and well understood by all
concerned since otherwise it will be impossible to get
important decisions made and adhered to.
• Types of Organizational Structures:
(1) Functional Organization
(2) Pure Project Organization
(3) Matrix Organization.
, • Functional Organization:
• Within a functional structure, the organization is divided into a number o
departments, each specializing in one aspect of the business. This is the
most basic and common type.
• The advantage of functional organizations is that they encourage the
development of a high degree of specialist skills.
• People in the functional units report to managers who understand their
fields and can provide relevant advice, guidance and support.
• Note: A great problem with functional organizations is that people can
develop a ‘silo’ mentality – being more concerned with departmental
objectives than with the needs of the organization as a whole.
