A project manager's role within different

organizational structures
In the last video, you learned about the way a company is arranged, which is called organizational
structure. You also learned that two of the most common organizational structures are Classic and
Matrix. 

Understanding the differences in Classic and Matrix organizational structures can help you ask
questions during a job interview to fully understand the role and responsibilities you are considering.
This will also help you understand which skills will be most important for you to have if you get the
position. 

Once you are hired into a role, knowing a company’s organizational structure can help you identify
key points of communication and key stakeholders. It can also help you navigate within the
organization when you need support or need to determine who has authority in a certain situation.
Let’s examine the characteristics of each of these organizational structures in greater depth so you
can identify the type of structure an organization has and how to navigate it as a project manager. 

Classic organizational structures

The Classic organizational structure is a top-down hierarchy system, where a Chief Executive Officer
(CEO) has direct authority over several department managers. The department manager has direct
authority over several other sections of employees. This system requires communication both up
and down the ladder. In a Classic structure, authority comes from the top and filters to the bottom.
Frequent reporting of project status updates may be required to pass up through management levels
to keep higher leaders informed. 

Classic organizations are also referred to as functional organizations because the organization is
divided into departments based on function. Each department is led by a functional manager, and
employees are grouped according to the functions of their role. For example, the main function of
Friendly Skies Airlines, an airline company, is to fly airplanes. There are typically departments
logically arranged to fulfill other important company functions, such as Marketing, Human
Resources, and Strategy. Employees usually have a specialty within the organization and may not
work within other areas during normal everyday operations. 

Managing a project in a Classic organization

Friendly Skies Airlines has a Classic organizational structure, as indicated by its reporting or “org”
chart.
Imagine that the Friendly Skies Airlines Board of Directors approves an initiative to retrofit existing
airplanes to carry more passengers. The CEO sponsors a project team to redesign the airplanes.
The project will be led by a project manager from the Engineering and Innovation department and
will require representatives from Finance, Marketing, Strategy, and Operations, along with several
other team members from the Design department, to successfully complete the project. 

The project team will typically remain in their reporting lines but act as their own assembled team.
They do not fall under any of the existing functional departments. In the Classic organizational
structure, the project builds from already existing departments to form teams.

If you are a project manager in this type of structure, you may need to consult with functional
managers to understand your resources and the capacity of each teammate, as well as to familiarize
yourself with each function’s internal processes and approval structure. Your authority may be
slightly limited due to competing priorities, approval chains, and other complexities, but setting
expectations up front will enable you to navigate the organization and execute your project
successfully.

Matrix organizational structures

The Matrix structure differs from the Classic structure in that the employees have two or more
managers. In Matrix structures, you still have people above you, but you also have people in
adjacent departments with whom you will need to communicate on your work progress. Functional
areas tend to cross paths more frequently, and depending on the nature of the work, the responsible
manager for each area has the most authority. 

As a project manager in a Matrix organization, a team will essentially have at least two chains of
command, or managers. You can think of the project manager as being a temporary manager while
assigned to the team. The functional manager is consistent regardless of the project a project
manager is supporting. The visual below illustrates what the Friendly Skies Airlines would look like if
it had a Matrix organizational structure.

The role of a Project Management Office

In this lesson, you are learning about different types of organizational structures. Project managers
serve key functions in both Classic and Matrix organizations. Within both of these types of
structures, there is sometimes a group devoted specifically to program management with the
organization: the Project Management Office. In this reading, we will discuss the purpose and
functions of a Project Management Office.

What is a PMO?
A Project Management Office, or PMO, is a group within an organization that defines, sets, and
helps maintain project management standards and processes throughout that organization. It often
acts as a coordinated center for all of the organization’s projects, helping them run more smoothly
and efficiently.

An organization’s project managers may operate within the PMO itself or within other departments.
At Google, for example, there are project managers who work in a PMO focused on operational
excellence, but there are numerous project and program managers in other departments throughout
the organization, as well.

What are the functions of a PMO?

PMOs offer guidance and support to their organization’s project managers. They share best
practices, project statuses, and direction for all of the organization’s projects while often taking on
strategic projects themselves. The main functions of a PMO include:

Strategic planning and governance

This is the most important function of a PMO. This involves defining project criteria, selecting
projects according to the organization’s business goals, and then providing a business case for
those projects to management. 
Best practices
PMOs help implement best practices and processes within their organization. They also share
lessons learned from previous successful projects. They help ensure consistency among their
organization’s projects by providing guidance about processes, tools, and metrics.

Common project culture 

PMOs help set common project culture practices by training employees about optimal approaches
and best practices. This helps keep project management practices consistent and efficient across
the entire organization. 

Resource management
PMOs are often responsible for managing and allocating resources—such as people and equipment
—across projects throughout the organization based on budget, priorities, schedules, and more.
They also help define the roles and responsibilities needed on any given project. PMOs provide
training, mentoring, and coaching to all employees, but project managers in particular. 

Creation of project documentation, archives, and tools

PMOs invest in and provide templates, tools, and software to help manage projects. They also play
an important role in maintaining their organization’s project history. Once a project closes, they
archive all of the documents created during the project for future reference and to capture lessons
learned.

Key takeaway
To recap, the key purposes of a PMO include: strategic planning and governance, implementing
project management best practices, establishing common project culture, resource management,
and creating project documentation, archives, and tools. PMOs support their organizations in
managing large numbers of projects and help keep all employees working in the same direction
towards the organization’s goals. 
Managing a project in a Matrix organization
Imagine that Friendly Skies Airlines is organized in a Matrix structure. Their Product Excellence team
develops a new amenity kit for long-haul flights. They ask the Project Manager to help gather
marketing materials that present research data about how this product fulfills passenger desires. The
Project Manager is working on behalf of the Product Excellence team, but they are able to work in
partnership with the Marketing team to create these materials.  

You can read more about an overview of Matrix organizations in this PMI article.

Key takeaway
In both Classic and Matrix organizations, project managers must clearly define roles and
responsibilities in order to work effectively. However, within most Matrix organizations, some project
managers or department leads may have the same level of authority as the functional managers and
operate more directly.

Now you know how to identify Classic and Matrix organizational structures, how project managers fit
into them, and how an organization’s structure may affect projects. You are well on your way to
becoming a great project manager in any organizational structure!

Learning about an organization’s culture

 It is important to learn about the culture of the organization where you work or want to
work. Understanding the company’s culture can help you navigate your team through a
project. Consider this quote from Peter Drucker, an expert on management: ”Culture
eats strategy for breakfast.” Drucker is implying that the culture of a company always
influences its success, regardless of how effective the company’s business model may
be. Organizational culture is critical to the health of a company, the people who work
there, and the customers it serves.

The importance of organizational culture 

 Identity: An organization’s culture defines its identity. Its identity essentially describes
the way the company conducts  business, both internally and externally. A company’s
values and organizational culture go hand-in-hand; its values are part of its identity. You
can almost think of an organization’s culture as its personality. That is why it is
important to learn your company’s (or target company’s) mission and value statements.
The mission and value statements will help you understand why the company exists
and will give you insight into what the company believes in and how it will behave. 
 People: Strong, positive organizational culture helps retain a company’s best employees.
People who feel valued, engaged, and challenged are more likely to give their best and
want to drive for success. An organization’s culture can help keep talented employees
at a company, and it can attract great people too! On the other hand, a toxic culture can
have the opposite effect. It is important to find an organization with a culture that fits
your personality. One way to find out more about an organization's culture is to talk to
the people who work there. You can also take note of the current employees’ attire,
expressions, and overall behavior.
 Processes: Organizational culture can have direct impacts on a company's processes,
and ultimately, its productivity. The organization’s culture is instilled throughout the
company—from its employees to how its employees do their job. For example, a
company that values feedback and employee involvement might have that reflected in
their processes by including many opportunities for employees to comment. By allowing
employees to feel their voices are heard, this company is adhering to its culture. 

Understanding an organization’s culture

As a project manager, it is important to understand your company’s culture, especially
because it could affect the projects you work on. Some aspects of an organization’s
culture that are directly related to how you will manage projects are communication,
decision-making, rituals, previous management styles, and values. To learn more about
a company’s culture and how it applies to you as a project manager, you can: 

Ask questions
You can learn about an organization's culture by asking questions of management and
peers. It can be helpful to ask these questions in the interview phase to better
 understand the company’s culture before accepting a position. You might want to ask
questions about:

Atmosphere

 What is the company’s dress code? 

 How do people typically share credit at this company? 
 Is risk-taking encouraged, and what happens when people fail?
 How do managers support and motivate their team?
 How do people in this role interact with customers and users?
 When and how do team members give feedback to one another?
 What are some workplace traditions?
 What are some of the ways the company celebrates success?

Policies

 What are the policies around sick days and vacation?

 Does the company allow for employee flexibility (e.g., working from home, flexible
working hours)?
 What policies are in place that support employees sharing their identity in the
workplace?

Processes

 What is the company’s onboarding process?

 How do employees measure the impact of their work?

Values

 What are the company’s mission and value statements?

 How might the person in this role contribute to the organization’s mission?
 How does the organization support professional development and career growth?

Listen to people’s stories

Listening to what current employees have to say and how they portray the company will
give you great insight.

 What were employees' experiences with similar projects in the past? 

 What can they tell you about key stakeholders and customers? 

Take note of company rituals

 Rituals can be powerful drivers of culture. They engage people and help instill a sense
of shared purpose and experience. 

 How are birthdays and holidays celebrated? 

 Do employees generally eat lunch at the same time and in the same place? 
 Watch employee interactions: Observing how employees interact can help you tailor
your interaction style to the company norm. 
 Are employee interactions more formal or informal in nature? 
 Are ideas solicited from employees in different roles? 

Understand your impact

As a project manager, you become a change agent. Remember: a change agent is a
person from inside an organization who helps the organization transform by focusing on
improving organizational effectiveness and development. When you begin a new role,
sit down with management to better understand what is expected of you and how you
can make the most of the opportunity.

Sharpen your communication skills

Interpersonal communication skills are a major part of project management. How a
company communicates is directly tied to its organizational culture. You will most likely
have interactions with various departments and management levels while executing
projects. To communicate effectively, you will need to understand how to navigate the
different channels in your company. Ask questions about communication practices
when you start a new role such as: Is it customary to sign emails from the team rather
than from you individually? Should presentations include team members or be solely
presented by the project manager? This can help you make sure you are adhering to
expectations.

Approaching projects differently from how similar projects were managed in the past
may be met with some resistance. Although some projects may call for you to break the
status quo, when you show an appreciation of your organization’s culture, you may help
your team members accept any improvements you are implementing.

Key takeaway
Organizational culture is important because it has a direct impact on you as a project
manager, and learning how to navigate organizational culture gives you a great
advantage when you are executing projects. Being able to navigate departmental
interactions, communicate effectively, and plan your project in line with the
organization’s culture will help set you up for success in your project management
career path.