Projectized Organization : The Advantages And The Disadvantages

Projectized Organization | Management Square | blog

Projectized Organization : The Advantages And The Disadvantages

” Projectized Organization “

Nowadays, many organizations operate in an effective environment that they tend to focus on the outcomes of the project by using different management approaches. This is the capacity to move from centralized bureaucratic structures to interrelated but self-governing project teams. This results to fostering organizational process so that the employees learn from the project itself and can contribute to share the information required to better plan future actions.


The Nature of Projectized Organizational Structure:    

A projectized organization focuses on its activity programs which are implemented through projects. Its aim is to empower the project team and to act with autonomous discretion. It encourages power delegation to the people who have accepted to take responsibility for the outcomes of their tasks. This does not mean that the project manager would be acting independently but rather there would be still monitoring and evaluation and organizational development. It recognizes managerial leadership dedicated to empower and train subordinate teams. The project manager provides a layer through establishing a framework where the projects can be run successfully. This is the type of organizational structure in which the project manager have all the responsibility for assigning priorities and for directing the work of persons assigned to the project.

Since that the organizations nowadays are result-oriented, they continuously enhance their working culture and environment. They motivate their employees to constant learning and development and learn from their experiences and generously share it through corporate knowledge in order to benefit from the lessons being acquired.  Companies carefully arrange all their activities into different project and / or programs. The project manager  processes the full authority over it. The project team members are required to report to him.

In this projected organization structure, there will be no functional manager or if there would be one, his power or authority would be just limited. With this, people would be flexible and can learn from their own and from other people as well.


Features of a Projectized Organizational structure:

  • The project team members work under the supervision of the project manager and they directly report to him.
  • The project manager has the full control of everything. He has the power over resources, assignments and budget.
  • Right after the project has finished, the whole team will dissolve and all the resources will be released.


Advantages of a Projectized Organization:

Transparency is observed in this kind of projectized organizational structure. The project team members directly reports to the project manager which makes it easier to resolve the issues and enables faster decision making.

Further, it promotes effective communication since there are shorter lines inside the project team. It is another advantage that the project team members become more flexible and versatile because of their experience in various projects.

Projectized organization also encourages instantaneous cooperation, sound communication, and milestones.


Disadvantages of Projectized Organization:

If the organization will have several projects, the resources may be doubled and there may be miscommunication when it comes to allocating these resources. Moreover, due to the great amount of power of the project manager, it can be an issue for members of the team.

It also has tight schedule and deadlines which makes it a stressful workplace. Since that the company will be hiring highly skilled individuals and specialized equipment for a short period of time, it will be costly and the company my spend a lot.


In any kind of structure that the management wishes to apply, it will significantly affect the whole project. It is quite compelling to learn this form of organizational structure.  It is clear that the individuals involved in this project have the skills that the project would be highly needed.

These people will ensure coordination and instructions from the project manager who is responsible for everything in the project. The main goal of this projected organization structure is to be able to finish all the assigned tasks to come up with a product.

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