| Functional Organizational Structure | Projectized Organizational Structure |
|---|---|
| Employees are grouped according to functional areas of expertise | Organization is structured around projects |
| Functional managers are responsible for overseeing the work of employees in their functional areas | Project manager has full authority over project team |
| Projects are typically managed by a project manager who coordinates the work of multiple functional teams | Project teams are composed of individuals with the necessary skills and expertise to complete the project |
| Focus is on the efficient and effective functioning of functional areas | Focus is on project outcomes and delivery |
| Communication channels are primarily vertical, within functional areas | Communication channels are primarily horizontal, within project teams |
| Resource allocation is based on functional needs | Resource allocation is based on project needs |
| Decision-making is based on functional priorities and processes | Decision-making is based on project priorities and objectives |
| Career paths are often based on functional areas of expertise | Career paths may be based on project management and successful project delivery |
Overall, the main difference between functional and projectized organizational structures is the emphasis on functional expertise versus project delivery. In a functional structure, the focus is on the efficient and effective functioning of functional areas, while in a projectized structure, the focus is on project outcomes and delivery. This difference is reflected in the reporting structure, communication channels, resource allocation, decision-making processes, and career paths within the organization.