Welcome back. In this video, I'm going to talk about the concept of organizational structure and the project manager's role within a given structure. Keep in mind that your role won't be the same for every team or organization, because many companies are structured differently. But this overview will serve as a foundation for wherever you work. So what is organizational structure? Organizational structure refers to the way a company or organization is arranged or structured. This structure also tells you how job tasks are divided and coordinated and how all the different members of the organization relate to one another. In other words, organizational structure gives you a sense of who reports to who. But organizational structure is much more than that. Understanding the different types of organizational structures can serve as a map to help you determine where you fit in, who you should communicate with, and how frequently to communicate with them. Now that we have a basic overview of the definition of organizational structure, let's look at the various organizational hierarchies that you may encounter at work. An organization's structure is most commonly mapped out using a reporting chart or "org chart," which is short for "organizational chart." Reporting charts show the relationship between people and groups within the organization, and details who each person or group reports to. There are a few different types of organizational structures. But for this course, we're going to focus on two of the more popular ones: Classic and Matrix. Let's start with Classic. The Classic grouping includes what are usually called "functional" or "top-down" structures. The Classic grouping follows a typical chain of command where the Chief Executive Officer, also known as CEO, and other executives are at the top, followed by directors or managers, then their direct reports and so on. Each of these directors or managers typically oversee teams within their function of the organization, like marketing, sales, or human resources. You can see this type of structure in effect by looking at a branch of the military. Take the Army, for example. You may enter the Army as a private, and report up to a sergeant who oversees multiple people in your squad, and that sergeant ultimately reports up to a lieutenant and so on. If your organization works in this structure, as the project manager, you might communicate regularly with your manager, the person directly above you, and also with your peers who work on the same types of projects as you. There isn't always a straightforward, top-down approach. There are other factors at play that make organizational structures a bit more complicated than we can see on paper. For instance, you may have project teams that sit across different functions. This is common in many companies, Google included, and is usually referred to as the Matrix structure. You might think of a Matrix structure as a grid where you still have people above you, but you also have people in adjacent departments who expect to hear updates on your work progress. These people may not be your direct bosses, but you are responsible for communicating with them, since they may inform changes to your work. For example, at Google, we have the major functions of marketing, sales, and more, with the traditional reporting chain. But we also have programs for our products, like Google Search, where project teams consist of program managers, engineers, user experience or "UX" designers, and so on, and each team member reports to their own management chains. Another example is my organization. It's called Global Affairs. I have a direct manager who oversees the work I do and my core role and who is responsible for delivering my performance reviews. But because I work with multiple people across other teams and specialties, I often get asked to manage projects where I'm informally working with lead program managers in other organizations. Similar to my own manager, I provide updates to that program manager, seek their approval, and solicit feedback on our partnership and progress. So to recap, the Classic structure follows a traditional, top-down system of reporting, and the Matrix structure has direct higher-ups to report to and stakeholders from other departments or programs. Knowing which kind of organizational structure you're working in plays a major role in how you prepare for and carry out your project or even in an interview. During an interview, you can ask about the type of organizational structure the company uses and where your role will fit in. This will help you and the interviewer communicate clearly about the people you will engage with daily, and the expectations for the role. In the next course, you'll hear from a Googler about a third type of structure, Project Management Office, which you might see in some of the organizations where you work or interview. Enjoy.
