Organizational Structures

In: Business and Management

Submitted By crystalgmesa
Words 751
Pages 4
Project Management Organizational Structures
MGT437
February 6, 2012
Susan Braun

Project Management Organizational Structures When organizations receive a project, the most efficient way to complete it successfully is to incorporate it into an organizational structure. There are three structures available that companies can choose from; functional, pure, and matrix. This paper compares all three, showing the advantages and disadvantages of each. Functionally organized businesses use the project as part of the organization, making it part of a functional division within the firm. The project goes to the division that has the necessary qualifications and will benefit most if the project is successful. The project could fall under more than one division. There are advantages and disadvantages of using this form of organizational structure. The functional organizational structure allows the staff to be flexible. Employees can contribute as needed, and return to their normal position because all projects in that division are directly related to their field of work. Another benefit of functional organization is the shared knowledge and experience of the group, which provides a potential source of creative solutions to any problems that may arise. Some of the disadvantages of these organizational structures are that the client is not the main focal point of the project. The staff within the specified unit has their everyday workload to complete. This usually takes precedence over the project, unless told otherwise. Because the project is not part of day-to-day activity, employees lack motivation and consider the project to be an inconvenience. Pure project organization separates the project from the rest of the parent system. Instead of incorporating the project into a divisional unit, the project becomes its own unit within the…...

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