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.Organizational structurescan be characterized as spanning a spectrum from functional to projectized, with a vari-ety of matrix structures in between.Figure 2 6 details key project-related characteristicsof the major types of enterprise organizational structures.Project organization is dis-cussed in Section 9.1, Organizational Planning.The classic functional organization shown in Figure 2 7 is a hierarchy whereeach employee has one clear superior.Staff are grouped by specialty, such as pro-duction, marketing, engineering, and accounting at the top level, with engineeringfurther subdivided into mechanical and electrical.Functional organizations stillhave projects, but the perceived scope of the project is limited to the boundaries of©1996 Project Management Institute, 130 South State Road, Upper Darby, PA 19082 USA18THE PROJECT MANAGEMENT CONTEXT FIGURE 2 8Figure 2 7.Functional OrganizationChiefProjectCoordinationExecutiveFunctional Functional FunctionalManager Manager ManagerStaff Staff StaffStaff Staff StaffStaff Staff Staff(Black boxes represent staff engaged in project activities.)Figure 2 8.Projectized OrganizationProject ChiefCoordinationExecutiveProject Project ProjectManager Manager ManagerStaff Staff StaffStaff Staff StaffStaff Staff Staff(Black boxes represent staff engaged in project activities.)©1996 Project Management Institute, 130 South State Road, Upper Darby, PA 19082 USA192.4 A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGEthe function: the engineering department in a functional organization will do itswork independent of the manufacturing or marketing departments.For example,when a new product development is undertaken in a purely functional organiza-tion, the design phase is often called a design project and includes only engineer-ing department staff.If questions about manufacturing arise, they are passed up thehierarchy to the department head who consults with the head of the manufacturingdepartment.The engineering department head then passes the answer back downthe hierarchy to the engineering project manager.At the opposite end of the spectrum is the projectized organization shown in Fig-ure 2 8.In a projectized organization, team members are often collocated.Most ofthe organization s resources are involved in project work, and project managershave a great deal of independence and authority.Projectized organizations oftenhave organizational units called departments, but these groups either report direct-ly to the project manager or provide support services to the various projects.Matrix organizations as shown in Figures 2 9 through 2 11 are a blend of func-tional and projectized characteristics.Weak matrices maintain many of the charac-teristics of a functional organization and the project manager role is more that of acoordinator or expediter than that of a manager.In similar fashion, strong matriceshave many of the characteristics of the projectized organization full-time projectmanagers with considerable authority and full-time project administrative staff.Most modern organizations involve all these structures at various levels as shownin Figure 2 12.For example, even a fundamentally functional organization may cre-ate a special project team to handle a critical project.Such a team may have many ofthe characteristics of a project in a projectized organization: it may include full-timestaff from different functional departments, it may develop its own set of operatingprocedures, and it may operate outside the standard, formalized reporting struc-ture.2.4 KEY GENERAL MANAGEMENT SKILLSGeneral management is a broad subject dealing with every aspect of managing anongoing enterprise.Among other topics, it includes:" Finance and accounting, sales and marketing, research and development, man-ufacturing and distribution." Strategic planning, tactical planning, and operational planning." Organizational structures, organizational behavior, personnel administration,compensation, benefits, and career paths." Managing work relationships through motivation, delegation, supervision,team building, conflict management, and other techniques." Managing oneself through personal time management, stress management, andother techniques.General management skills provide much of the foundation for building projectmanagement skills.They are often essential for the project manager.On any givenproject, skill in any number of general management areas may be required
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