Functional organisation structure, Project Management

Functional organisation

In this type of organisational structure people are grouped into functional divisions such as production or marketing. Every employee reports to a superior. It is hierarchical in nature. The scope of a project is limited to the functional division boundaries. Every division has a project manager who reports  to  his  superior.  Every  project  manager  manages  his  functional division independent of other functional divisions. This hierarchical structure is illustrated in figure.

1818_functional organizational structure.png

Figure: Functional organisation structure

Characteristics

  • Project managers operate within their respective division and pose a level of expertise within their area of responsibility. For example a marketing division manager has knowledge or experience in sales.
  • Both project and functional personnel are managed by Directors of the functional division. They define requirements, schedule work, provide facilities, set priority, acquire and manage resources as per company policies and ensure quality.
  • Employees are assigned projects based on their skills and services.

They may be moved within divisions, wherever they are needed.

Advantages

  • Projects completed will be more accurate since project manager and team members have functional area expertise. As a result, fewer changes will be made during a project life and more practical end products can be produced.
  • Since the project team is accountable for their work. Project personnel's are more committed to their work.
  • Since team members have functional expertise, learning time is reduced; problem situations can be identified and corrected resulting in quick project completion.

Disadvantages

  • Since the focus is more on needs of the functional division, it makes it difficult to see and respond to the needs of the organisation as a whole. It is difficult to enforce enterprise policies and practices uniformly across all functional divisions.
  • There is no standard means by which project control and status reports are communicated to senior management .Hence, making it difficult for senior managers to manage the various projects within the organisation.
  • There is no proper account maintained for project costs.
  • The differentiation between project and functional roles may be vague and projects might be lost on routine work.
Posted Date: 9/28/2012 6:00:58 AM | Location : United States







Related Discussions:- Functional organisation structure, Assignment Help, Ask Question on Functional organisation structure, Get Answer, Expert's Help, Functional organisation structure Discussions

Write discussion on Functional organisation structure
Your posts are moderated
Related Questions

explain what is meant by scope risk

Attempts by a country to help local producers by restricting international trade is known as   protectionism.

What are the different between Work and Cost breakdown structure? Different between Work and Cost breakdown structure: Work breakdown structure produces a detailed list of e

1. Briefly trace the development and growth of Walmart from 1969 to the present through the application of corporate strategies - what types of strategies have these been? 2. Th

The customer feedback and employee feedback mechanisms are the essential requirements to create customer oriented quality culture. These feedback mechanisms perspectives an ac

Question Using a project drawn from your own experience, discuss the following (a) What are the two primary stages of risk management of a project? (b) What are the four

M a n a ging Project Quality as per PMI Project Management Institute (PMI) is a global organisation for the project management profession; it is engaged in setting professi

Standardization of Work Processes:   The interrelated processes of an organization need to be standardized which help to determine how work is organized and how customer needs

What work goes on previous to project start-up? Before project start-up, work is required to establish the things and scope of the project. This is essential to establish the d