As the professor mentioned this week, there are three different types of organizations, factional organizations, project-based organizations and matrix organizations. In my opinion, all of those three organizations have different advantages and disadvantages and they might be suitable for different situations. As a team leader, how do you set up a project organization under different situations?
@lei-hao You are certainly correct that each of these types of organizations for a project are dependent on different circumstances. I would say that a project manager should choose an organization type based upon the resources the team has, the members on the team and their skills, the way the hierarchy works amongst the people you are working with, etc (just to name a few). If I was a project manager for a team I would first establish the type of company or organization I am working for in terms of size and number of products. If the project is for a large well established company then a functional organization would be preferred as there is a streamlined chain of command in this type of organization. The project would rely on a large team working at different levels in the hierarchy all working on the same project and are all responsible for various parts of the project. This is beneficial to the team as everyone at every level gets an eye on the product before it moves on to the next level. A con of this type of management is that it takes a very long time for slight changes to be made to the product as the request needs to travel up a large chain of command which can take multiple weeks as the request is constantly changing desks. Smaller companies such as start ups cannot afford to wait weeks for one small request to be approved as time is of the essence and therefore this management style would not be effective. Instead a project based organization would be more beneficial as it allows for the team to be quicker and adaptive when small changes need to be made since the local manager would be able to make higher level decisions compared to the functional organization. As of now I have only spoken about one product being worked on but say suppose a singular project requires multiple products to be accounted for and developed. In this instance a matrix organization would be most useful as it allows for each product to have their own team including marketing, production, quality assurance, management and each team is responsible for whichever part of the project they are assigned to.
I think the most effective is the Matrix style; although it has disadvantages such as having multiple managers as well as scheduling conflicts. If I were a team leader, I would use the matrix style the best as it incorporates both functional and project management styles. However, I agree with @ag2265 in the sense that the project being assigned would determine the type of project organization. To mitigate this, I think the matrix style should become more adaptable in the sense that if there is a project that deals with a quick small change, the project management organization would be more favorable and the staff would give more importance to the project manager. Vice versa, if there were to be a big, impactful project that would involve various hierarchies working together, then I think the structural manager needs to have more importance. Essentially, the matrix style is a sort of adaptability to it that draws me towards using it to set up my project organization.
I used to work for a company that used the project management style and being a part of the staff is nice and, as the professor mentioned, sort of cliquey, but once the team does not need your resources for a project, you can be transferred to another project group and would feel left out by their clique. Moreover, although this is an opportunity to connect with more individuals, it can cause these connections to be non-meaningful because of the constant change of teams. There would be times when in a single week, I would get moved to 2-3 different teams, which never gave me time to adapt to the team's needs and other styles because, by the time I got familiar with it, I was moving to another team.
Project organization depends on the size of the company itself. It also depends on how big the projects are. If there are short-term projects, Matrix organization would work best. Just because the amount of time the members of the project team can deliver is not the greatest since they all report to two bosses. So basically they are working on the project in a part-time style.
Even though the projects get done by the team themselves, I believe that someone needs to be in charge in order to be able to manage all the personnel involved in the project at all times. And in order for the project to succeed, a good amount of time should be put in so that way the overall quality of the project is better. The team should be able to put all the resources available on the table so the project runs smoothly. As the PM gets to analyze their team’s strengths, it is easier to assign specific roles. These would help to improve a productive output and get better results.