This topic in the Project Lifecycle and Organization chapter is important. Organizations use governance to establish strategic direction and performance parameters.
The strategic direction provides the purpose, expectations, goals, and actions necessary to guide business pursuit and is aligned with business objectives.
There will be questions on the kinds of organization structures and their influence on the project. For instance, one of the questions could be
“In what structure would a project manager’s authority be high to almost total?”
The answer to that would be projectized structure. Picturing the below image in the mind would be very helpful!
There are 5 structures starting from functional, where the project manager’s authority is little or nothing to projectized organization where there project manager’s authority is high to almost total (as you can see in the image above).
In a functional organization, an employee has a superior and are grouped by specialty like production, marketing, engineering, and accounting. They are further divided into functional organizations such as mechanical or electrical engineering.
Matrix organization is a blend of functional and projectized characteristics. There are three kinds of matrix organizations: weak matrix, balanced matrix, and strong matrix.
In a weak matrix, the project manager’s role is more of a coordinator; in balanced the need for project manager is recognized but he or she doesn’t have full authority over the project. In a strong matrix, there are full-time project managers with considerable authority.
Lastly, in a projectized organization, most of the organization’s resources are involved in project work and project managers have full authority. The org units are called departments, where the groups report to the project manager.