Exam 13: Project Management Organizational Structures

Companies with are in the projects business; they do not produce standard products.

A disadvantage of a functional organizational structure is that there is a lack of customer focus.

A disadvantage of a functional organizational structure is that there is a stronger allegiance to the function than to the project or the customer.

A disadvantage of a matrix organizational structure is that members of a project team in a matrix organization structure have a dual reporting relationship, which can cause anxiety and conflict over work priorities.

A disadvantage of a functional organizational structure is that functional-type organizations can be insular with each component concerned about only its own performance.

In , there is little opportunity for members of different project teams to share knowledge or technical expertise, because each project team tends to be isolated.

In , individuals can pursue career development through assignment to various types of projects.As they broaden their experience, individuals become more valuable for future assignments.

A disadvantage of an autonomous project organizational structure is that individuals are dedicated to working on one project.

A disadvantage of an autonomous project organizational structure is that project team members do not have a functional "home."

In , multiple projects are worked on at any one time, and these projects vary in size and complexity.

A disadvantage of a functional organizational structure is that decisions may be parochial rather than in the best interests of the overall project.

can be cost-inefficient both for individual projects and for the company.Each project must pay the salaries of its dedicated project team, even during parts of the project when they are not busy.

In , project managers come under the projects component of the organization.

In , the project manager is responsible for the project results, while the functional managers are responsible for providing the resources needed to achieve the results.

provides a core of functional expertise that is available to all projects.

is also known as a projectized organizational structure.

In , the project manager does not have complete authority over the project team, because administratively the members still work for their respective functional managers.

is found primarily in companies that are involved in very large projects.

A disadvantage of an autonomous project organizational structure is that there is a potential for duplication of activities on several concurrent projects.

A disadvantage of an autonomous project organizational structure is that when things are slow, individuals have a tendency to stretch out their work to fill up the time available or if they do not have any tasks to do for temporary periods, their unapplied time is still a cost to the company.