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As the world advances in the IT sector, organizational structures are evolving to suit the needs of the modern workplace. The competitive environment for organizations are creating a need for result-oriented workspace and improving the environment and culture accordingly.
When doing PMP exam prep, knowing what sort of an organizational structure will suit a specific type of organization helps as people are tested on their knowledge of handling different types of environments.
Organizations have evolved into large organisms that rely on teamwork between different stakeholders. People rely on the support of their peers and other departments to help them achieve a target or complete different tasks. Employees these days are encouraged to learn and grow from the different experiences they face every day and share the knowledge the have with their peers so that everyone may benefit from them.
These are some of the practices that are done in an organization that follows the projectized structure. A projectized organization’s main characteristics include adaptation and dynamic ways of thinking and working. If any organization based on the projectized structure lacks these, it will have a very difficult time succeeding.
Projectized Organization Structure
The first thing to understand about a projectized organization is that they rarely have a functional manager, in the case that they have one, they have very little authority over the employees or how things are done in the organization. A projectized organization works by arranging their activities into portfolios or programs and execute them through projects.
In these type of structures, the project manager is the final authority over the project they are handling. The team that is working on the project reports solely to them. Projectized organizations work well as they are not in binding for the employees in discovering new ways to do things. They allow the employee to grow on their own and from their peers’ experience as well. This will also be something you would be taught in project management classes as you do your PMP preparation.
Projectized organizations make sure that majority of the resources are allocated for projects and their proper completion. Their output is based on the deliverables they get from external clients so most projectized organizations will not be producing products or services for their own use.
There are some smaller departments which help keep things going, such as accounting, administration, and human resources. These give the employees ease when the basic functions of the organization are considered.
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The project manager in a projectized environment has team members that are working under them full time. If an external team member is to be added to the core team, they are grouped and are located in such a way that coordination and communication is not hindered in any way. This optimizes their performance and creates a very good flow of work for project completion.
It is true that the project manager has full authority in the project, but that obviously does not give them the full right to do as they please. In cases where a resource is available with one team, but the current team in possession of the equipment does not require it, the resource can be reassigned whether the manager agrees with it or not.
In projectized organizations, the project managers are given the authority required to complete the project successfully and the outcome will solely be their responsibility.
Advantages Of Projectized Organizations
- The team members have a clear line of communication with a single authoritative project manager at the helm.
- With the team working together in the same place, there are faster responses to the client needs and the completion of the project is achieved on time.
- Learning curves are faster in these kinds of organizations as all employees learn from their peers’ experiences.
- Versatility in team members increases as they work on a project together, they gain experience from every aspect of it.
Disadvantages Of Projectized Organizations
- Too much authority for one person can cause arrogance and problems for the team members in some cases.
- Projects have tight schedules and deadlines which makes the job environment a bit stressful for everyone.
- The organization may get a less loyal workforce as the employees may feel they can be laid off after the project is finished.
- Hiring equipment and personnel with skills can be costly and since projects can span a longer time, it will become harder to contain the cost if there’s too much reliance on external resources.
When doing PMP exam prep, it is a good practice to learn about all sorts of organizational structure to answer the questions with a better perspective on what structure would better suit an organization. Projectized organizations are very effective for a workforce that relies on innovation and idea creation. Learning more about organizational structures can help an organization reach new levels. Start learning and start growing.
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