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A Projectized Organization gives the authority and resources of the project to the project manager while the work is being completed to an external customer. A Functional Organization gives the project manager very little authority if any acting as a coordinator more than a project manager, resulting in projects taking longer to be completed.
In a functional organisation Project manager reports to Functional manager.Role if a Pm is that of a project coordinator or an Expediter.
Were as in a Projected organisation Project manager has full authority over project.
In projectized organisations, the power to project manager is supereme and he is able to budget and operate as per his will. Similarly he will appoint teams as per his liking and report to the management.
In functional organisation, the power remain with the management and project manager works on their directive and desire. Both have good and bad points depending on the vertical / horizontal structure of the company.
