A projectized organizational structure is one in which employees are grouped by activities on a particular project, often collocated, and the project manager has complete or close to complete authority over the project team. This structure can offer several advantages, including:
Key Facts
- Faster response to client needs: In a projectized organization, the team works together in the same place, allowing for faster responses to client needs.
- Timely completion of projects: With the team working closely together, projects in a projectized organization are more likely to be completed on time.
- Faster learning curves: In a projectized organization, employees have the opportunity to learn from their peers’ experiences, leading to faster learning curves and increased knowledge sharing.
- Effective communication: Projectized organizations often have shorter lines of communication within the project team, promoting effective and efficient communication.
- Clear line of authority: In a projectized organization, there is a clear line of authority, with the project manager having complete or close to complete authority over the project team.
Faster Response to Client Needs
In a projectized organization, the team works together in the same place, allowing for faster responses to client needs. This is because communication is more efficient and there are fewer bureaucratic hurdles to overcome.
Timely Completion of Projects
With the team working closely together, projects in a projectized organization are more likely to be completed on time. This is because there is a clear line of authority and accountability, and the project manager has the power to make decisions quickly.
Faster Learning Curves
In a projectized organization, employees have the opportunity to learn from their peers’ experiences, leading to faster learning curves and increased knowledge sharing. This is because they are working on the same project and are able to see how others are approaching the work.
Effective Communication
Projectized organizations often have shorter lines of communication within the project team, promoting effective and efficient communication. This is because there are fewer layers of management and employees are more likely to be able to communicate directly with each other.
Clear Line of Authority
In a projectized organization, there is a clear line of authority, with the project manager having complete or close to complete authority over the project team. This makes it easier to make decisions and resolve conflicts.
Conclusion
The projectized organizational structure can offer several advantages, including faster response to client needs, timely completion of projects, faster learning curves, effective communication, and a clear line of authority. However, it is important to note that this structure may not be suitable for all organizations.
References:
- Ali, R. (2019, September 12). A Projectized Organizational Structure is the trend to be followed? I DO! LinkedIn. https://www.linkedin.com/pulse/projectized-organizational-structure-trend-followed-i-rameez-ali/
- Management Square. (2022, August 17). Projectized Organization: The Advantages And The Disadvantages. https://www.management-square.com/projectized-organization/
- Whizlabs. (2013, September 5). Projectized Organization. Whizlabs Blog. https://www.whizlabs.com/blog/projectized-organization/
FAQs
What is a projectized organizational structure?
A projectized organizational structure is one in which employees are grouped by activities on a particular project, often collocated, and the project manager has complete or close to complete authority over the project team.
What are the advantages of a projectized organizational structure?
Advantages of a projectized organizational structure include faster response to client needs, timely completion of projects, faster learning curves, effective communication, and a clear line of authority.
When is a projectized organizational structure most effective?
A projectized organizational structure is most effective when the organization is working on complex projects that require a high degree of coordination and collaboration.
What are some challenges of a projectized organizational structure?
Challenges of a projectized organizational structure include the potential for conflict between project managers and functional managers, the difficulty in managing resources across projects, and the potential for employees to feel isolated from the rest of the organization.
How can organizations overcome the challenges of a projectized organizational structure?
Organizations can overcome the challenges of a projectized organizational structure by providing clear roles and responsibilities for project managers and functional managers, implementing effective resource management processes, and creating opportunities for employees to interact with each other outside of their project teams.
What types of organizations are best suited for a projectized organizational structure?
Organizations that are best suited for a projectized organizational structure include those that work on complex projects, have a high degree of uncertainty, and need to be able to respond quickly to changes in the market.
What are some examples of organizations that use a projectized organizational structure?
Examples of organizations that use a projectized organizational structure include construction companies, engineering firms, and software development companies.
How can organizations transition to a projectized organizational structure?
Organizations can transition to a projectized organizational structure by following a phased approach that includes defining the project scope, creating a project plan, and implementing the plan.