Advantages vs Disadvantages of different organizational design structures:

 Note: This is Part 2 and is a continuation of Part 1 (previous blog post), which defined and illustrated Functional vs Projectized organization designs.
Functional organization design:


Advantages:
  • clear authority by the functional managers
  • fosters technical competence and communication
  • fosters personal growth and teamwork within the functional group (strong professional development policies also usually exist)
  • easier to align corporate functional goals with departmental accountability
Disadvantages:  
  • inflexible 
  • poor horizontal coordination (if resources in different departments) 
  • not customer focused 
  • resources have different agendas and priorities (in accordance to their functional manager not the PM) 
  • no clear ownership, accountability or authority for projects

Projectized organization design:
Advantages:
  • task oriented, very productive 
  • elimination of power struggles between people and projects
  • stronger project team cooperation and communication
  • aligns the team number to the current amount of work available
  • project oriented
  • buffered from external interruptions, side tracking and conflicts
 Disadvantages:
  • mobilization and demobilization of staff difficult
  • does not foster long term team growth or professional development
  • difficult to share resources between projects
  • operational work is not allocated effectively


Matrix organization design:

Advantages

  • Combines aspects of both Functional and Projectized to meet a middle ground that works within the culture of the organization
  • Resources will have a focus on multiple perspectives
  • Decisions can be faster
  • Information and reporting flows across organization
  • Prioritizations are more aligned with the company (not focused on a department)
  • Balance of power between PMs and Functional Managers
  • Decision support can be more supported and buy-in can be greater
  • More effective use of specialized resources
Disadvantages
  • Increased conflict with senior management (lack of single power of authority)
  • Extended negotiations and possible increases in delays
  • Lack of Social culture within focused team environments

A supporting article that compares the different types (pros vs cons) can be seen at:
yourbusiness-advantages-disadvantages-different-organizational-structure-types