According to the PMBOK® Guide, organizational structures significantly influence the project manager ' s authority, power, and influence. The Simple or Organic structure is unique because it is typically found in small businesses or startups where the organization is very flexible.
Project Manager Influence: In a Simple/Organic organization, the project manager often has high to almost total authority and influence. Because the structure is " flat " and roles are not rigidly defined, the project manager often works directly with the owner or the entire team, allowing for maximum control over project resources and decisions.
Characteristics:
Authority: High to Total.
Resource Availability: High to Total.
Budget Management: The Project Manager typically manages the budget directly.
Staffing: Often involves a small, dedicated team.
Analysis of other options:
A. Centralized: In a centralized (or functional) organization, authority is concentrated at the top or within functional managers. The project manager ' s influence is usually low to non-existent, often acting merely as a project coordinator or expeditor.
B. Composite: This is a mix of different structures. While a project manager ' s influence can be high during a specific projectized phase, it is not a standardized structure where influence is inherently " maximum " like the Organic or Projectized models.
D. Multi-divisional: This structure consists of multiple independent divisions. The project manager ' s authority is typically low to moderate, as they must navigate the silos of the different divisions and usually report to a functional or divisional manager.
Per PMI standards, the Simple/Organic organization provides the most direct path for a project manager to exercise maximum influence due to the lack of bureaucratic layers and formal hierarchy.
