Types of Organizational Structures in Project Management

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29 Questions

What is a disadvantage of the Projectized Organizational Structure?

High cost due to dedicating all specialists to one project

Which structure has the advantage of fast project delivery?

Dedicated Project Team

In the Dedicated Project Team structure, what could lead to internal conflict?

Cross functional integration

Which aspect is a disadvantage of the Dedicated Project Team structure?

Full-time team focus

What does the Projectized Structure lack for team members after project completion?

Clear growth path

Which structure is known for managing resources efficiently and effectively?

Projectized Structure

What is the primary purpose of a project?

To deliver a unique product or service

How is a project defined in terms of activities?

A sequence of finite dependent activities

What distinguishes a program from a project?

Programs share a common goal or purpose

What is a characteristic of the contemporary project environment?

Dynamic and complex conditions

How are projects selected within organizations?

Strategic project selection

What is the main metric for assessing project performance and progress according to the text?

Delivery of expected business value

What is a disadvantage of the functional organizational structure?

High hiring costs for high-skilled employees

What is an advantage of the matrix organizational structure?

Balanced and flexible decision-making

Why might resources be under-utilized in a matrix structure?

Lack of coordination between functional and project managers

What does the text suggest is a downside of the dual reporting structure in a matrix organization?

Confusion and conflicts

What is the main purpose of a portfolio in project management?

To group projects, programs, or portfolios to achieve strategic objectives

In a functional organization, why might career growth be limited for visible employees?

Visible employees remain in their functional department

Which type of organizational structure groups employees based on functional skills?

Functional Organizational Structure

What is a challenge associated with maintaining resources in a matrix structure?

Creating issues due to lack of coordination between managers

What is a disadvantage of the Functional Structure according to the text?

Employees lose enthusiasm

Why might departments in a Functional Structure be less responsive to the organization's overall objectives?

Because departments are more concerned with their own goals

In what way does a portfolio differ from a project?

By grouping projects, programs, or subsidiary portfolios to achieve strategic objectives

Which organizational structure makes hierarchy visible and eliminates the need for multiple reporting?

Functional Organizational Structure

Which characteristic is NOT used for classifying projects in Module 2?

Vendor

What is the classification rule recommended in Module 2 for managing projects effectively?

Adapting approach to project characteristics

Which type of project is classified as 'Breakthrough'?

Type A

In Module 2, how is the likelihood of problems categorized for projects?

Certain, Likely, Unlikely

Which project type has a duration ranging from 3-9 months and is classified as 'Best of Breed'?

Type C

Study Notes

Organizational Structures

  • A disadvantage of the Projectized Organizational Structure is the lack of opportunities for team members after project completion.
  • The Dedicated Project Team structure enables fast project delivery, but may lead to internal conflict due to diverse backgrounds and perspectives.
  • In a Dedicated Project Team structure, internal conflict can arise from differences in perspectives and backgrounds.

Project Characteristics

  • The primary purpose of a project is to create a unique product, service, or result.
  • A project is defined as a temporary endeavor with a clear start and end date, consisting of a set of coordinated and controlled activities.
  • A program is distinguished from a project by its collection of related projects, sub-projects, and activities managed together to achieve strategic objectives.

Project Selection and Portfolio Management

  • Projects are selected within organizations based on alignment with strategic objectives and available resources.
  • The main metric for assessing project performance and progress is the project's ability to achieve its objectives.

Matrix Organizational Structure

  • A matrix structure is known for managing resources efficiently and effectively, but may lead to under-utilization of resources due to multiple reporting lines.
  • The dual reporting structure in a matrix organization can lead to confusion and conflicting priorities.

Functional Organizational Structure

  • A functional organization groups employees based on functional skills, but may limit career growth for visible employees and result in departments being less responsive to the organization's overall objectives.
  • A disadvantage of the Functional Structure is the lack of visibility and recognition of employees' skills and contributions.

Portfolio Management

  • The main purpose of a portfolio is to oversee a collection of projects or programs to achieve strategic objectives.
  • A portfolio differs from a project in its scope, comprising multiple projects, and focuses on strategic alignment rather than a specific project's objectives.

Project Classification

  • Projects can be classified as 'Breakthrough', 'Platform', 'Derivative', or 'R&D', with 'Breakthrough' projects involving high risk and high reward.
  • Projects are categorized based on their likelihood of problems, and the recommended classification rule is to focus on the project's objectives and scope.
  • A 'Best of Breed' project has a duration ranging from 3-9 months.

Learn about common types of organizational structures in project management. Understand the characteristics and implications of functional structures on decision-making, work duplication, hiring costs, career paths, and career growth.

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