Part of Functional Organization Structure

The part of functional organization structure is generally suitable for small projects. The project tasks are performed as part of functional departments. Production department, Marketing department, Finance department, Human resource department are some of the functional departments that are included in the functional organization. Authority and responsibility is divided into line and staff in hierarchical order. The line authority will decide where as the staff authority will advise in such organization.

Fig. Project Organization as Part of Functional Organization Structure

Advantages:

• 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.

Disadvantages:

• 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.

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• Matrix Organization Structure
• Pure Functional Organization
• Level of Conflicts in an Organization
• Pure Project Organization
• Benefits of Project Management

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