Sample-PMOSP - Project Management 1 Project Management...

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Project Management 1 Project Management Organizational Structures University of Phoenix MGT437
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Project Management 2 Project Management Organizational Structures Many companies are beginning to restructure as project-oriented organizations for many different reasons. There are four primary reasons why organizations are moving this way. First is speed to market. A major requirement for successful competition is market responsiveness. Second, companies are beginning to realize that they get a much more diverse, efficient effort when they bring together a diverse mix of specialists for the design, development, and launch of new products, services, and processes. Third, the rapid expansion of technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations. Companies need wide spread responsiveness from the entire organization. Project organizations are better equipped to handle the large scale changes where. Finally, moving towards a project organization will give top leaders more visibility and control and assigned accountability over current operations. This paper will compare and contrast the three primary project management organizational structures (functional, matrix and pure project) and will determine which structure fits best with certain situations. The Functional Organization In a functional management organization structure, projects would be assigned to the functional unit that has the most interest in ensuring the success of the project or is the most likely choice based on resources to implement the project. For example, at Milgard, if we were going to develop a new window system, the Engineering group may be the functional unit that takes on the project. If we were implementing a new delivery system, the Distribution group would probably head the project. The functional organizational structure has many advantages and disadvantages of which I have listed in the table below. Advantages Disadvantages Staff flexibility – Members of a functional Priority Conflicts – The functional area has
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Project Management 3 area can be assigned to a project, make their contributions then be quickly reassigned to other tasks. Optimization - Individual experts can be used on multiple projects (switched back and forth) with ease. Knowledge - Specialists in a division can be grouped in an effort to share knowledge, creating synergies on the project team which will aid in quicker solutions.
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Sample-PMOSP - Project Management 1 Project Management...

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