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 AJY6
(@ajy6)
Posts: 82
Estimable Member
Topic starter
 

What are some similarities and differences between a functional and project-based organization? Also, which organization would you prefer and why? 

 
Posted : 31/01/2022 3:15 pm
(@jbarbee)
Posts: 78
Trusted Member
 

One of the main similarities between functional and project-based organizations is that both organizational structures involve collaboration amongst multiple departments. Both structures include one member or, in the case of project-based structure, multiple members from different departments within the organization.

One of the main differences between functional and project-based organizations is shown in the order of power within project coordination. In the functional structure, functional managers or department heads have complete authority over the project. In the project-based structure, there's one full team of members from different departments being led by a project manager.

Personally, I would prefer the project-based structure. In my opinion, project-based organizational structures are useful for organizations with a high demand of products. These projects utilize members of different departments to carry out each individual project, which in turn improves the efficiency of the organization.

 
Posted : 06/02/2022 10:53 pm
(@leshan)
Posts: 33
Eminent Member
 

in projectized organizations, project manager has increased independence and authority and and is a full-time member of a project organization and has project resources available to them.

A functional organization is a traditional structure where the organization is divided based on the functions performed by that particular group of people.

 

i would prefer a functional organization. i think in this type of organization, i just work with people with similar knowledge and it will be easies to communicate. and when i need something i know which department i should go to.  

 
Posted : 07/02/2022 1:00 am
(@hodafattel)
Posts: 78
Trusted Member
 

As mentioned, functional and project based organizations both involve collaborations between the different departments. However, one of the biggest differences between the two is that in functional organization silos of information are formed while in project based ones knowledge transfers well from project to project and from one department to another. As a person with low industry experience, I would prefer working in a project based organization so that I can learn as much skills and information from others as possible.

 
Posted : 07/02/2022 2:19 pm
(@mahdiaschy)
Posts: 24
Eminent Member
 

In functional organizations, the employees focus or are assigned in particular areas and the organization is divided into different functional departments.  The positions are well defined with clearly assigning who has authority and right to command and are responsible to make decisions.  The company normally has a president and head of each department.

Project based organizations are normally run by group of individuals with almost equal set of responsibilities all working towards one goal-completing one project. This kind of groups are normally temporary until the project ends. 

In my opinion, not one organization type is better than the other. It mostly depends on what the project or purpose of the organization is. 

It's better to use functional type for organizations that are permanent. For employees that want growth in career and specialization in what they do, it's better to be in a functional organization with vertical hierarchy. Most organizations such as manufacturing companies, supply chains or financial institutions adopt this kind of structure.

Project based organization system can be adopted by movie or commercial making companies or other small companies with partners of equal responsibilities where it will be easier to communicate and they won't have to specialize in one area. Rather all contribute to accomplish one project. 

 
Posted : 13/02/2022 8:35 pm
(@kellyepcarter)
Posts: 33
Eminent Member
 
Posted by: @ajy6

What are some similarities and differences between a functional and project-based organization? Also, which organization would you prefer and why? 

 

 
Posted : 16/03/2022 6:02 am
(@kellyepcarter)
Posts: 33
Eminent Member
 

Functional Organizations

  • Organized around organizational operations
    • Human Resources
    • Information Technology
    • Sales
    • Marketing
    • Business Operations
    • Public Services, etc.
  • Traditional organizational structure
  • Project Management performed by a team member of a functional area
    • Project resources are controlled an authorized by functional managers
    • PM role serves as a project co-coordinator and does not carry the title of Project Manager
    • PM is considered a part-time responsibility
    • Project Manager has limited authority

Project-based Organization

  • Project Manager is usually a full-time role
  • Project team members are co-located within the same office
  • Project Manager has more authority and control over resources
  • Project Manager reports to the Sponsor and/or Senior Management
  • There can be functional units within the organization, but these units are suppurative in nature and do not have authority over the Project Manager

I think I would prefer to work in a project-based organization as it seems as if there is a more direct route to getting the project completed efficiently and less red tape.

 
Posted : 16/03/2022 6:02 am
(@dehayesmsm-edu)
Posts: 24
Eminent Member
 
Posted by: @ajy6

What are some similarities and differences between a functional and project-based organization? Also, which organization would you prefer and why? 

A project-based organizational structure consists of a general manager or CEO. There are also functional departments but projects are the main units of conducting activities. Project teams conduct almost all operations of the company. Functional managers make sure that projects have access to employees with the right functional expertise. Project managers have a lot of autonomy and are responsible for delivering results. They select team members, allocate tasks, and oversee performance. This improves employee loyalty to project goals.

Functional organizations have a vertical chain of command. The departmental heads act as links between the subordinates and the organization heads. This makes communication between the project team more straightforward and faster. Unfortunately, the routine of functional organizations is the same day in day out, employees may quickly get bored and lose enthusiasm.

I currently work in a functional organizational structure and I do not mind the hierarchy although I do feel as though it limits growth possibilities.

In what ways can continue to motivate employees in functional organizational structures? Do you expect the retention rate to be higher or lower in project-based vs functional?

 
Posted : 16/03/2022 11:14 pm
(@brianoe17)
Posts: 20
Eminent Member
 

The project manager has much more power or say so in the project management phase rather than a functional organization. In a functional organization there is a chain of command that people must follow and report to but in the project based organization the project manager is given the responsibility to make the project work and flourish.

 
Posted : 17/03/2022 8:55 am
(@csimmonds23)
Posts: 24
Eminent Member
 

Functional organizations have various departments and a designated departmental figure head. Authority in this structure is defined. This in most cases is long term. On the other hand within a projectized organization, the project manager is usually the lead but it is only temporary so there is no defined structure within these types of organizations. As an employer I can see the value in having a functional organization as there is defined authority and structure. As an employee, I would prefer the less authoritative approach as you have more autonomy in the daily workflow. 

 
Posted : 17/03/2022 10:55 pm
(@csimmonds23)
Posts: 24
Eminent Member
 

@dehayesmsm-edu I think you draw a good point as far as how to keep employees motivated with in a functional organization. Its easy to lose sight of the company's objectives and get lost in the daily rigmarole. The way to keep employees focused is to incentivize. Working towards something for a reward is helpful and also keeping employees engaged in unique ways can refocus employees and promote productivity.

 
Posted : 17/03/2022 10:59 pm
(@dehayesmsm-edu)
Posts: 24
Eminent Member
 
Posted by: @csimmonds23

@dehayesmsm-edu I think you draw a good point as far as how to keep employees motivated with in a functional organization. Its easy to lose sight of the company's objectives and get lost in the daily rigmarole. The way to keep employees focused is to incentivize. Working towards something for a reward is helpful and also keeping employees engaged in unique ways can refocus employees and promote productivity.

@csimmonds23 I believe focusing on Incentives for employees is key. Companies that go the extra mile boost employee satisfaction, which in turn enhances retention. To do that companies turn to employee engagement strategies to foster a sense of ownership and motivate their teams. To maintain good retention rates or enhance team productivity and overall satisfaction companies have to implement effective employee engagement strategies.

Strategies could include:

  • Having more fun- social events help people bond with others on the team who they don’t interact with on a daily basis
  • Make it easy for employees to focus on the work they really love
  • Send tangible appreciation that shows you care
  • Give your employees more responsibility, not just more tasks to do.
  • Emphasize work-life balance
  • Offer tickets to a game, dinner for two, or a personalized recognition.

What are some of the most creative ways managers can keep employees engaged?

 
Posted : 25/03/2022 10:09 pm
(@crysv1226msm2022)
Posts: 27
Eminent Member
 

The difference between project management and functional management is that project management is the process of initiating, planning, executing, controlling, and closing the work of a project to achieve a specific objective. In contrast, functional management is managing the routing activities in the organization.

 
Posted : 04/04/2022 12:13 pm
 Dani
(@dani)
Posts: 24
Eminent Member
 

What are some similarities and differences between a functional and project-based organization?  Which organization would you prefer and why?

A functional organization is a more recognized and traditional structure where the organization is divided based on the functions performed by that group. In contrast, in a project-based or projectized organization, most resources are explicitly devoted to project work for the benefit of external customers. Both are similar in structure as the project manager leads a project team.  The primary difference between the two types of organizations revolves around the project manager’s power.  In the functional model, the project manager has little actual authority; however, in the project-based organization, the project manager has command and budget control and can resolve any issues that arise.  Given those parameters, I would prefer to work in a projectized organization as projects would be completed more efficiently and effectively (Goodrich, 2011).

What are some other reasons that the project-based organization might be the preferable of the two organizations?  Why or why not?

References

Goodrich, B. (2011, May 1). Functional organizations vs projectized organizations - pmp exam. PM Learning Solutions. https://www.pmlearningsolutions.com/blog/functional-organizations-versus-projectized-organizations-pmp-concept-10

 
Posted : 19/04/2022 5:58 pm
(@ej851996)
Posts: 78
Trusted Member
 

The common point of the project and functional organization-based companies is the team communication problem. A functional organization has everyone doing the same job and knowing little about other departments. A project organization group has all the necessary functions within a group, but individual positions seldom share their experience with people who have the same jobs. I prefer to work in the project organization team if I need to choose between these two. Even the knowledge sharing between the same positions is less, working in a project organization is possible to experience different types of jobs. It's much better than working on the same things until retiring.

 
Posted : 30/01/2023 5:37 pm
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