This is the capacity to move from centralized bureaucratic structures to interrelated but self-governing project teams. 4. He is responsible to top management and he has to implement the decision taken by them. Nowadays, many organizations operate in an effective environment that they tend to focus on the outcomes of the project by using different management approaches. The advantages and disadvantages of a matrix organizational structure make it easier to move resources to the most important projects which need to be completed. Below are the disadvantages of the projectized organizational structures. These are some disadvantages of a projectized structure: The strict deadlines could increase workers' stress. This will reduce communication channels. Tags: functional organizational structure functional organizational structure advantages and disadvantages. – The project team can be stressful because there is always a deadline (milestones). 0 likes. The project manager can take independent decisions for speedy completion of the project. Another disadvantage of the projectized organizations is the duplication of facilities and job functions. Knowledge about the type of organization is vital to project success as the project management approach will be dependent on the type of organization in which the Project Manager is working in. 5. The team is focused on … Usually responses to stakeholders’ concern are very fast. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work they’ve done. – The project manager has full power and authority needed to complete the project. Let’s analyze them in detail. Advantages to the projectized structure include the project manager's opportunity for career progression. The project team members directly reports to the project manager which makes it easier to resolve the issues and enables faster decision making. Recall that the definition of a project is a temporary endeavor … Program areas may not have all of the specialists needed to work on the project. These people will ensure coordination and instructions from the project manager who is responsible for everything in the project. Project organization, based on team concept, is the best means of getting the right things done right. Its aim is to empower the project team and to act with autonomous discretion. What is your opinion regarding the advantages and disadvantages of the functional organizational structure? Companies carefully arrange all their activities into different project and / or programs. The project manager provides a layer through establishing a framework where the projects can be run successfully. Also known as a projectized organizational structure, the project-oriented organizational structure is centered around teams and specific project work. In Projectized Organizational Structure , all the company is organized by projects rather than functional teams or departments. (adsbygoogle=window.adsbygoogle||[]).push({}); Functional managers do not exist in Projectized Organizational Structures. – If the organization has more than one project, there may be very poor communication and cooperation among the different project teams. With this, people would be flexible and can learn from their own and from other people as well. Both basic types of organizational structures have specific disadvantages for project managers. For instance, let’s say that you are a project manager of a pipeline project and your side booms are lying idle on site due to the winter period. 3. Kalu [10] claim that complex organizations do better with the matrix organizational structure than those that adopt the functional or project structure. Tools and resources of a project belong to only one project in projectized organizations. A projectized organization focuses on its activity programs which are implemented through projects. There may be a lack of understanding as to how significant that specific are to the company. In addition, because good communication exists within the project work, the team members tend to be more committed to, and excel in, their responsibilities. • In Functional departmentalisations there is a tendency toward centralisation which causes delay in making decisions and in the flow of. Advantages and Disadvantages of Functional Organisation: ADVERTISEMENTS: Advantages of Functional Organisation: Following are the advantages of this type of organisation: i. Functional organisation provides specialisation at every step. In one project, it might be more like that of projectized organization, and in another project, more like a functional organization. 4. If the organizational structure is functional, the project manager has little or no decision-making authority. 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