|Fig. Project Organization as Part of Functional Organization Structure|
- This organization structure is flexible in the use of existing human resources. The expertise can be utilized by different projects.
- This organization structure will develops expertise and specialization in human resources.
- Functional departments can provide knowledge, experience and technical skills to the projects if necessary.
- There is no clear cut responsibility for the project and no effective mechanism for coordination and integration of resources that are available in the organization for the project. Only functional divisions focus on functional activities.
- Since there is no clear cut responsibility and a lot of hierarchy, there is delay in decisions. Due to delay in decision making, project performance is adversely affected.
- There is communication gap between top-down or bottom-up members.