Which Type of Organizational Structure Gives the Least Amount of Authority to Project Managers?

Project managers in different organizations may not have the same levels of authority.

The organizational structure utilized within a company has a strong effect on how much authority is granted to the project manager. Project managers who lack authority over resources and who have project staff who do not report to them have the least authority.

Functional

A project assigned to a functional manager who coordinates with other departments to manage their contributions has the least authority. Project personnel may have conflicting responsibilities and little loyalty to the project. Resources may not be under direct control of the manager.

Matrix

Matrix organizations work well for multiple projects and the project manager may have more control of project resources. There is still some ambiguity in reporting relationships.

Programmatic

Nonprofit organizations have project managers who have authority over budgets and personnel, but only within their own program area.

Project-Based

Project managers within a project-based organization have a high level of authority, limited mainly by the scope of the project and budget. Project personnel report directly to the project manager.

PMO

Project managers who work under the direction of a Program Manager or Program Management Office (PMO) also have a fairly high level of authority over their assigned projects---limited by the contribution of their project to the overall program.

References

• Project Management for Development Organizations