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Types of Project Organizations: A Review

Presented By: MMS - A - Group 8 11: Paroma Choudhary 15: Samar Deshpande 24: Priyanka Kalke 38: Mayur Pradhan 39: Amogh Puranik 54: Falguni Shiyad

Types of Project Organizations


Functional Type Organization Project Type Organization Matrix Type Organization

Functional Type Organization


Used in businesses that sell and produce standard products and seldom conduct external projects. Groups consist of individuals performing the same function or have the same expertise or skills. Periodically undertake in-house projects. Team members can be assigned to the project to continue regular functional jobs. Project manager does not have complete authority over team.

Project Type Organization


Used in companies in the project business, not selling products. Work on multiple projects at a time at various stages of completion. Project team is dedicated to one project. Project manager has complete authority over team. Each project team tends to be isolated.

Matrix Type Organization


A mix of functional and project organization structures. Used in companies that work on multiple projects at a time. Provides project and customer focus. Retains functional expertise. Individuals can be assigned to various types of projects. Both project and functional managers have responsibilities. The Project Manager is the intermediary between customer and company. The Functional Manager decides how tasks will be accomplished.

Functional Type Organization


Advantages
Reduces duplication and overlap of activities. Provides specialization and functional excellence.

Disadvantages
Can be insular. Teamwork is not emphasized. Decisions may be parochial (narrow). Structure can slow communication, problem solving and decision making. Lack of customer focus. Stronger allegiance (continued support) to function than project.

Project Type Organization


Advantages
Team has full control over resources. Organization is highly responsive to customer.

Disadvantages
Can be cost inefficient. Tendency to stretch out work during slow periods. Potential for duplication on concurrent projects. Low level of knowledge transfer. No functional home. People may be laid off at the end of the project.

Matrix Type Organization


Advantages
Allows efficient utilization of resources. Individuals can be moved among projects. Provides a core of functional expertise. Facilitates information flow. Team members can communicate with project and functional managers. Customer focused.

Disadvantages
Team members have a dual reporting relationship. A proper balance of power must be established between project and functional managers. Priority conflicts can arise between managers.

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