POKHARA UNIVERSITY

1. Project Organization
• Organization architecture within a project
• Types
– Functional Organization Structure
– Pure Project Organization Structure
– Matrix Organization Structure

2. Part of Functional Organization
Structure
• Project tasks are performed as a part of
functional departments
• Advantages
– Flexibility in using human resources
– Develops the expertise or specialization in human
resource
– Projects have access to the knowledge of
functional departments

3. Part of Functional Organization
Structure (Contd.)
Disadvantages
• Lack of project focus
• Decision delays occurs due to hierarchy
• Poor communication due to top down or
bottom up communication

4. Pure Project Organization
• The project organization is separate from
functional department
• Advantages
– Focus on Project Objectives
– Project Manager has full line authority
– Clear communication
• Disadvantages
– All the projects needs to be staffed separetely
– Lack of Job securities

5. Matrix Organization
• Combination of function and pure project organization
• Advantages
– Focuses on project objectives
– Coordination
– Employee Development
– Free time for top management
• Disadvantages
– Dual boss problem
– Duplication of effort
– Power Struggle
– Interpersonal skills