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FIGURE 1.1 The functional organization

A functional organization often goes about the work of the project in a siloed fashion.
That is, the project deliverables are worked on independently in different departments.

This can cause frustration among project managers, because they are the ones held
accountable for the results of the project, but they have no means of holding team
members from other departments accountable for completing project deliverables.

A project manager in a functional organization should develop strong working
relationships with the functional managers. Functional managers are responsible for
assigning work to the employees who report to them. They are also responsible for
rating the performance of the employees and determining their raises or bonuses. This,

as you can imagine, sets up a strong loyalty between the employee and the functional
manager as opposed to the employee and the project manager. However, that doesn’t
mean project managers can’t be successful in this type of organization. Building a
relationship with the functional managers and maintaining open communications is
the key to successful projects in this type of structure. It also helps a great deal if you
can contribute to the employee’s performance ratings by rating their work on the

project.

Project managers have little formal authority in this type of structure, but
it doesn’t mean their projects are predestined for failure. Communication skills,
negotiation skills, and strong interpersonal skills will help assure your success in
working within this type of environment.

The functional organization is the most common organizational structure and has

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