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

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Project organization

  • 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