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2 - ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE

The organization’s culture is an enterprise environmental factor, as described in Section 2.1.5. Cultures and
styles are learned and shared and may have a strong influence on a project’s ability to meet its objectives. A
project manager should therefore understand the different organizational styles and cultures that may affect a
project. The project manager needs to know which individuals in the organization are the decision makers or 2
influencers and work with them to increase the probability of project success.

In light of globalization, understanding the impact of cultural influences is critical in projects involving diverse
organizations and locations around the world. Culture becomes a critical factor in defining project success, and multi-
cultural competence becomes critical for the project manager.

2.1.2 organizational communications

Project management success in an organization is highly dependent on an effective organizational communication
style, especially in the face of globalization of the project management profession. Organizational communications
capabilities have great influence on how projects are conducted. As a consequence, project managers in distant
locations are able to more effectively communicate with all relevant stakeholders within the organizational structure to
facilitate decision making. Stakeholders and project team members can also use electronic communications (including
e-mail, texting, instant messaging, social media, video and web conferencing, and other forms of electronic media) to
communicate with the project manager formally or informally.

2.1.3 organizational Structures

Organizational structure is an enterprise environmental factor, which can affect the availability of resources and
influence how projects are conducted (see also Section 2.1.5). Organizational structures range from functional to
projectized, with a variety of matrix structures in between. Table 2-1 shows key project-related characteristics of the
major types of organizational structures.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 21

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