How do you define the type of organization. Should it be an organization which has given more powers to functional heads or it has given more strength to project managers. What are the advantages and disadvantages.
Functional Organization
In a functional organization more powers rest on functional managers. So for example, lets say an IT company has won a big contract to implement talent management processes. The company looks forward for the hr functional head to take over this project and assign the resources. Hence once the project starts team assigned complete their normal work as well as the client work. Post completion of the project the team returns back to their normal HR work. Here the project manager has no control over delivery of the project. Incase of any communication, decision the powers rest with functional manager.
So while company was delivering the talent management project, all required software procurement a information procurement management lead by procurement functional head. So its the responsibility of HR functional head to communicate it to the procurement head.
Projectized Organization
In the projectized organization the powers rest with project managers. The are sole owners and responsible for delivery. All people are assigned to the project and report to project manager. Once the project is over resources have no where to go. Resources don't have a department. They are just hired for that project.
Matrix Organization
Lets extend the example which we had seen in functional organization: Now functional organizational realizing its too much work on functional head, he includes the project manager in his team. however the powers are still with functional manager. Thus now the project manager may be a project co-ordinator or a project expeditor. This kind of arrangement is called a Weak Matrix
However if the functional head thinks that he can loan all the resources to the project management team and make them accountable for delivery of the project. Thus creating a strong matrix
Functional Organization
In a functional organization more powers rest on functional managers. So for example, lets say an IT company has won a big contract to implement talent management processes. The company looks forward for the hr functional head to take over this project and assign the resources. Hence once the project starts team assigned complete their normal work as well as the client work. Post completion of the project the team returns back to their normal HR work. Here the project manager has no control over delivery of the project. Incase of any communication, decision the powers rest with functional manager.
So while company was delivering the talent management project, all required software procurement a information procurement management lead by procurement functional head. So its the responsibility of HR functional head to communicate it to the procurement head.
Projectized Organization
In the projectized organization the powers rest with project managers. The are sole owners and responsible for delivery. All people are assigned to the project and report to project manager. Once the project is over resources have no where to go. Resources don't have a department. They are just hired for that project.
Matrix Organization
Lets extend the example which we had seen in functional organization: Now functional organizational realizing its too much work on functional head, he includes the project manager in his team. however the powers are still with functional manager. Thus now the project manager may be a project co-ordinator or a project expeditor. This kind of arrangement is called a Weak Matrix
However if the functional head thinks that he can loan all the resources to the project management team and make them accountable for delivery of the project. Thus creating a strong matrix
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