Pros And Cons Of Chapter 5 Project Organizational Structures

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Chapter 5: Project organizational structures

A project organization structure facilitates the coordination and accomplishment of project activities. Its primary purpose is to provide an environment that enhances interactions between the team members with a minimum limit of disturbance, overlaps and disagreements. Formation of the organizational structure that will be used for the project is one of the critical decisions of project management.
Each project has its own circumstances and the design of an organizational structure should the project environment in which it will operate, and the project manager’s level of authority. A project structure has various forms, each form have its own pros and cons.
One of the primary goals of the structure is to reduce uncertainty and disruption that typically occurs at the project
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Functional Matrix: functional managers have greater powers than project managers
2. Project Matrix: project managers have greater powers than functional managers
3. Balance Matrix: functional managers and project managers have the equal powers

The advantages of this organizational structure:
• It is the same as functional structure that it provides greater flexibility in the personnel use and the resources can be shared among various projects, which can significantly reduce the problem of redundant staff
• More focus as result of formal designation of project manager which will make him give more attention to the project, and responsible for the coordination and integration work between different units
• In case of working on multiple projects at the same time, the company can balance the resources to make sure that all the projects can achieve the respective costs and quality requirements
The disadvantage is that this organizational structure:
• Tension between functional managers and project managers increase
• Sharing equipment, resources and personnel between various projects will lead to conflict and competition for rare

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