Project-based organizations are those whose operations consist primarily
of projects. These organizations fall into two categories:
These organizations tend to have management process in place to facilitate
project management. For example, their financial systems are often specifially
designed for accounting, tracking, and reporting on multiple simultaneous
- Organizations that derive their revenue primarily from performing projects
for others - architectural firms, engineering firms, consultants, construction
contractors, government contractors, nongovernmental organizations etc.
- Organizations that adopted management by projects
Nonproject-based organizations often lack management systems designed to
support project needs efficiently and efectively. The absence of project-oriented
system usually makes the project management more difficult. In some cases,
non-project-based organizations will have departments or other subunits that
operate as project-based organizations with systems to match.
The project management team should be acutely aware of how the organization's
systems affect the project. For example, if organization rewards its functional
managers for charging staff time to projects, then the project management
team may need to implement controls to ensure that assigned staff members
are used effectively on the project.
Weak Matrix Organization
Balanced Matrix Organization
Strong Matrix Organization