An organization can be either functional oriented or project oriented.
| Organization Structure | Projectized | Matrix | Functional |
| Domain Expertise | Poor | Medium | Good |
| Project Coordination | Good | Medium | Poor |
In practical, most of organizations are matrix based, i.e, team is organized by functional area, and team members work for projects most of the time under project manager.
The pros and cons of a project organization is listed below, although the truth is matrix organization can be a nightmare for Engineers.
| Pros | Cons |
| Highly visible project objectives | Extra administration required |
| Improved project manager control over resources | More than one boss for project teams |
| More support from functional organizations | More complex to monitor and control |
| Better horizontal and vertical dissemination of information than functional | Functional managers may have different priorities than project managers |
| Team members maintain a “home” | Higher potential for conflict |
| Better coordination | Need extensive policies and procedures |
| Maximum utilization of scarce resources | Tougher problems with resource allocation |
You can find good examples of functional, cross-functional (matrix) and flat org chart examples and templates in the diagram community of Creately Organizational Chart Software . There are many free to use templates to recreate as we want.
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