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CH 3 Organizations

Advantages/Disadvantages

OrganizationAdvantagesDisadvantages
Functional Organization Easier management of specialists People place more emphasis on their functional specialty to the detriment of the project
Functional Organization Team members report to only one supervisor Limited career path in project management
Functional Organization Similar resources are centralized, as the company is grouped by specialties The project manager has little or no authority
Functional Organization Clearly defined career paths in areas of work specialization
Project-Oriented Organization Efficient project organization No "home" for team members when project is completed
Project-Oriented Organization Team loyalty to the project Lack of specialization in disciplines
Project-Oriented Organization More efficient communications than functional Duplication of facilities and job functions
Project-Oriented Organization Project manager has more power to make decisions May result in less efficient use of resources
Matrix Organizations Highly visible project objectives Extra administration is required
Matrix Organizations Improved project manager control over resources (as compared to functional) Project team members have more than one manager
Matrix Organizations More support from functional areas More complex to monitor and control
Matrix Organizations Maximum unitilization of scarce resources Resource allocation is more complex
Matrix Organizations Better coordination Extensive policies and procedures are needed
Matrix Organizations Better horizontal and vertical dissemination of information Functional managers may have different priorities than project managers
Matrix Organizations Team members maintain a "home" Higher potential for conflict
Created by: raharr4277
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