Projectized Organization
An organizational form where the project manager has complete control over decisions, budget, and resources, and team members are assigned primarily or exclusively to the project rather than to functional departments.
Key Points
- Project manager holds full authority over scope, schedule, cost, and staffing.
- Team members report directly to the project manager and are dedicated to the project.
- Faster decision-making and strong alignment to project goals.
- May reduce resource efficiency across the organization and create uncertainty for staff after project close.
Example
A technology firm launches a major client implementation and sets up a dedicated project office. All developers, analysts, and testers report to the project manager for the duration of the engagement, and the project manager controls the budget, assignments, and performance evaluations.
PMP Example Question
A company organizes work so that the project manager directs the budget, assigns all team members, and team members report to the project manager full-time. What type of organization is this?
- Functional organization
- Weak matrix organization
- Projectized organization
- Balanced matrix organization
Correct Answer: C — Projectized organization
Explanation: In a projectized organization, the project manager has full authority and the staff are dedicated to the project, which matches the scenario.
