Here are the differences between the two:
- Project management is focused on a project, while traditional management is focused on a continuing process, this means that the former is temporary, while the latter is not.
- In project management, a project manager is responsible for managing and directing resources, in traditional management, a functional manager (such as an IT manager) is responsible for resource management.
- Risk management, change management, issue management, conflict management, and stakeholder management are integrated in project management. This is not the case in traditional management, where all these are separate processes (if they can be considered as processes, and if they even exist).
- In most organizations (as of now), project management falls under traditional management (for example, a project manager reports to an IT manager).
- Projects are closely monitored and (as many claim) better executed in project management because of the presence of a dedicated person (the project manager). In traditional management, since the functional manager has many other tasks, the management of projects tend to be inefficient because of two reasons 1) not following any methodology, and 2) the absence of a dedicated person managing the project.
- Functional management tend to be more efficient in a process only organization (such as a company with a sole purpose of providing support and with little projects going on). This is because functional management is meant for day-to-day routine activities. Project management is efficient (and its overhead is justified) in projectized organizations (companies having lots of projects, and where everything is considered a project).