ABSTRACT
Projects are natural breeding grounds for conflict, which often leads to ineffective human behavior. This chapter addresses five different types of organizational structures: functional, matrix, virtual, project-oriented, and hybrid. The functional organization is “an organizational structure in which staff is grouped by areas of specialization and the project manager has limited authority to assign work and apply resources”. The matrix is a combination of functional and project-oriented organizations. The matrix organization structure also has its challenges. Globalization in business is changing traditional organizational structures. The hybrid organization is a mix of all the other types of structures within one structure. Every organizational culture is different, but regardless of the culture, every project, in order to be successful, needs support from the organization so that the organizational structure is supportive and not restrictive. Benefits and challenges exist within every structure; companies organize themselves based on which organization structure best fits their company.
