Project organization is a separate form of functional unit in which all the members of project work force are directly responsible to project manager. The project organization become a self contained unit with its own technical staffs, administration, resources, tied to parent organization only through periodic progress report. Some parent organization may prescribe administrative, financial, employees and control procedure in detail as a guidelines and rules. Others allow the project almost total freedom within limits of final accountability. It means project manager is given full line authority to handle the project activities for the attainment of defined objectives. There is no any interference by parent organization during the project performance period. There is unity of command.
Since the project is separated from the functional division, the lines of communication are shortened. Project manager directly communicates with senior management. There is no need of permission of functional manager before making technological and other decisions. It reduces the hierarchy and facilitates quick decision. However the pure project organization is useful for big projects and mega projects.
Since the project is separated from the functional division, the lines of communication are shortened. Project manager directly communicates with senior management. There is no need of permission of functional manager before making technological and other decisions. It reduces the hierarchy and facilitates quick decision. However the pure project organization is useful for big projects and mega projects.
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