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Project Management
The uniqueness and short duration of projects relative to ongoing longer-term organizational activities The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas.
The best system balances the needs of the project with the needs of the organization.
Functional Organizations
Project is managed with the existing functional hierarchy
Teams operate as separate units under the leadership of a full-time project manager.
In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
Advantages :
The dedicated project team remains intact with the project Participant devote their full attention to the project high level of motivation and cohesiveness because participants share a common goal and personal responsibility toward the project and the team
Disadvantages :
Created an extra unit to complete project is expensive Resources are affected on a full time basis The transition back to the participant to their original functional department could be difficult
Matrix organization:
Two chains of command (functional and project) Project participants report simultaneously to both functional and project managers.
Disadvantages :
Tension between functional manager and Project manager who brings critical expertise and perspectives to the project Any situation of shared Resources and people result in conflict and competition for scarce resources Matrix management violate the principle of unity of command
Project Organization
Advantages :
Line authority for a project is clearly designated providing a single focal point for project management All full time personnel are formally assigned to the project Project manager is often of equal or greater rank than the functional manager The project has access to the entire reservoir technology and expertise of functional Division
Disadvantages :
A major difficulty in this kind of organization is the uncertainty these people feel about their position when the project is completed