Back to Tailoring - PMBOK 7th edition

Organizational Structure

5 minutes 5 Questions

Organizational structure plays a crucial role in tailoring project management processes and practices. The structure of an organization, whether functional, matrix, or projectized, influences how projects are initiated, planned, executed, monitored, and closed. In a functional organization, projects are typically managed within the boundaries of a specific department, with project team members reporting to functional managers. This structure may require tailoring project management processes to align with the department's existing workflows and hierarchies. In a matrix organization, project team members are assigned from various functional departments, requiring tailoring to ensure effective communication, coordination, and decision-making across the matrix. Projectized organizations, on the other hand, are structured around projects, with project managers having full authority over project resources. Tailoring in this context may involve adapting processes to leverage the dedicated project focus and minimize bureaucratic overhead. Understanding the organizational structure helps tailor project management practices to optimize efficiency, communication, and project success within the given framework.

Tailoring PMBOK 7th Edition to Organizational Structure

Understanding the concept of tailoring within the PMBOK 7th Edition, especially in the context of Organizational Structure, is pivotal for both the application of project management practices and for those preparing for the PMP exam.

Why it is Important: Tailoring allows project management practices to be adapted to fit the unique needs of each organization. This acknowledges that every organization has a different structure, culture, and set of processes, which impacts how projects should be managed. It's key to enhancing efficiency and effectiveness in project delivery.

What it is: Organizational structure refers to the system of task and authority relationships, which defines how employees' roles, power, and responsibilities are directed towards the achievement of the organization's goals. It influences how projects are executed, who makes decisions, how communication flows, and how flexible the organization is towards changes.

How it Works: Tailoring requires understanding the nuances of the organizational structure to align project management methods appropriately. Project managers need to consider factors like the level of project manager's authority, resource availability, stakeholder engagement, and how information is exchanged within the organization.

How to Answer Questions Regarding Organizational Structure in an Exam: Be prepared to assess different organizational structures (functional, matrix, and projectized) and their impacts on projects. Understand how the authority of the project manager varies with each structure and how this influences project management practices.

Exam Tips: Answering Questions on Organizational Structure
- Read questions carefully to identify clues about the organization's structure.
- Consider how different structures affect roles and decision-making authority in projects.
- Be capable of explaining the implications of the organizational structure on project management processes, including communication, procurement, and risk management.
- Understand that there is no one-size-fits-all; the best approach depends on the organizational context provided in the exam scenario.

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