Monday 24 January 2022

What is a project organization (project team)? differences from common organizations

There are several forms of organizational organization in an enterprise to perform its business. many of you may have heard of project-based organizations, functional organizations, matrix-type organizations, and words alone.

how are these organizations different from common organizations this time? i will introduce.

project organization, functional organization, matrix organization
let's take a look at the outline and characteristics of each organization.

project organization

this is the most common organizational form for projects such as system development. we invite human resources with specialized skills for each project from each department and form an organization as a single project team. once the project is completed, the team is dissolved, and each member returns to their department or participates in another project. in addition, a project manager (project leader) is deployed and the project is carried out according to its instructions and decisions.

functional organization

divide the functions of the entire organization by department and assign the appropriate people from each department to the project. this is a common organizational form for companies that perform their constant tasks. because it does not form a project-only team like a project organization, when applied to a project, the independence between each project is naturally weakened.

matrix organization

a typical organization forms each department according to one criteria, such as by function, business, or region. in a matrix organization, another criterion is incorporated, and the two criteria are combined to form a department.

in an easy-to-understand way, a matrix-type organization is a fusion of project organization and functional organization. each human resource belongs to a project as a project member while belonging to a functional division. therefore, you will have two or more superiors, a supervisor and a projet manager in the functional division.

companies that handle projects in this way can be divided into three categories depending on the organization. there are advantages and disadvantages if each has a different outline and characteristics.

advantages and disadvantages of each organization
here are some of the advantages and disadvantages of each organization.

project organization

a project organization that invites project members from each department has many benefits. therefore, many information system companies correspond to project organizations. the biggest benefit is the flexibility and responsive response to changes in the environment. projects are basically prone to specification changes along the way, so you need a high degree of flexibility. however, functional and matrix organizations are difficult to keep up with the changes, so project organizations are best suited for projects.

the reason is that it is easy to create a sense of unity and easy communication because project members are united as an organization. as an organization's ability to share information, everyone has the flexibility to act. one of the factors is that the purpose of the project is clear, which tends to motivate members.

on the other hand, the disadvantage is that the experience accumulated as a functional department is often not utilized in order to carry out management on individual projects, and there are often dissatisfaction with the evaluation and treatment after the completion of the project. the disadvantage to be most careful is the latter.

managing an organization for each project often results in ambiguous evaluation criteria and a focus on project managers. there is a high possibility that you will be antipathetic from other members in doing so, which will greatly affect your motivation afterwards.

functional organization

it is a functional organization that is rare for companies that run many projects, but there are actually many benefits. first, it is easy to develop highly specialized human resources in order to handle projects by functional division. in a project organization, each member is often tasked with a wide range of tasks, regardless of their skills. as a result, human resources' skills become broad and shallow, making it difficult to develop human resources with highly specialized skills.

another advantage is that you can communicate closely within the department. from the perspective that facilitating communication is essential for project success, functional organizations are a good fit.

the disadvantages are that the responsibilities of the project tend to be ambiguous, and that it is easy to take time to coordinate people and share information between departments. this makes it difficult to provide clear guidelines for projects and is not suitable for parallel execution of multiple projects.

matrix organization

matrix organizations, for better or for worse, incorporate both project and functional organizational characteristics. first of all, the advantage is that each human resource is called up as a project member even though they belong to the functional department, so the project is more independent. this is an essential part of the smooth running of the project, so it's a benefit that functional departments can't achieve.

in addition, since we belong to the functional department, there is an advantage that you can develop highly specialized skills and apply them to projects. since members participate in projects while belonging to the functional department, it is also a big advantage to be able to consider the task balance so that the expertise can be carried out to the project.

it is a matrix organization that has many benefits at first glance, but sufficient measures are required for disadvantages. this is because in a matrix-type organization, each human resource belongs to two or more organizations, so the chain of command tends to be complicated. the project manager has strong authority, and of course, the authority of the boss in the functional department is also strong. therefore, it is important that the project manager has the right person with the stronger authority than any department manager, and that the chain of command and priority are clear.

as mentioned above, each organization has its advantages and disadvantages. while project and functional organizations have less risk, they will have less positive impact on the enterprise. on the other hand, there are many risks in matrix organizations, but you can also get a lot of positive effects by taking those measures firmly. note, however, that it is difficult for matrix organizations to achieve less corporate resources.

project management tools for any organization

what organizational type does your company use to execute projects? both organizations have advantages and disadvantages, so it's hard to decide what's best. what is common, however, is that any organization can leverage project management tools to increase project success rates with fewer resources.

The "SI Object Browser PM",a project management tool provided by our system integrators, is an IT solution that complies with the global standard of project management, PROJECT MANAGEMENT BODY of Knowledge (PMBOK).

PMBOK is a systematic guide to project management methodologies and know-how consisting of 10 knowledge areas, five processes, and three parts. SI Object Browser PM is an IT solution that complies with this PMBOK and is packed with the features and know-how to make your project a success.

If you are feeling the challenges of organizing your project and executing it, take this opportunity to consider SI Object Browser PM.

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