Organizational structures can greatly influence how projects are managed and executed within a company. There are five different types of organizational structures: functional, weak matrix, balanced matrix, strong matrix, and projectized. These organizational structures are characterized in the following table.
| Feature/Aspect | Functional Organization | Weak Matrix Organization | Balanced Matrix Organization | Strong Matrix Organization | Projectized Organization |
|---|---|---|---|---|---|
| Structure | Hierarchical, based on functions | Functional structure with project focus | Blend of functional and projectized | Project structure with functional support | Hierarchical, based on projects |
| Authority | Functional manager | Functional manager > Project manager | Shared between functional and project managers | Project manager > Functional manager | Project manager |
| Decision-Making | Slow, within functions | Slow, primarily through functions | Shared decision-making | Faster, primarily within projects | Fast, within projects |
| Resource Allocation | Functional departments | Limited project resource allocation | Balanced resource allocation | High project resource allocation | Project-dedicated resources |
| Communication | Vertical, within functions | Vertical, limited cross-functional | Balanced vertical and horizontal | Horizontal, more cross-functional | Horizontal, across projects |
| Project Focus | Low | Low to medium | Medium | High | Very high |
| Team Loyalty | To the function | To the function | Split between function and project | To the project | To the project |
| Flexibility | Low | Low | Medium | High | Very high |
| Responsibility | Functional manager | Functional manager | Shared between managers | Project manager | Project manager |
| Cost | Lower | Lower to medium | Medium | Higher | Higher |