Organisational Structure

Question 1

What is the APM definition of Organisation Structure?

Answer 1

The organisational environment within which the project takes place. It defines the reporting and decision making hierarchy of an organisation and how project management operates within it.

Question 2

What do organisational structures influence?

Answer 2

-Structural relationships at work.
-Where personal loyalties lie.
-Individual responsibility and authority.
-Communication flow (up and down).

Question 3

What are the advantages of Functional Organisation?

Answer 3

-Technical Expertise.
-Access to resources.
-Job security and career development.
-Good communication within function.
-Peer learning.

Question 4

What are the disadvantages of Functional Organisation?

Answer 4

-Many points of contact.
-Function superiority over project.
-No overall responsibility.
-Poor communication between functions.
-Project Manager has little or no authority.

Question 5

What are the advantages of Matrix Organisation?

Answer 5

-Pool of expertise.
-Shared resources.
-Continued presence of line management.
-Balances project and functional objectives.

Question 6

What are the disadvantages of Matrix Organisation?

Answer 6

-Resource Conflicts.
-Double Reporting.
-Conflicting Loyalties.
-Overloading of Individuals.
-Project Manager may not be able to control who is in their team.

Question 7

What are the advantages to a Project Organisational Structure?

Answer 7

-PM has full authority.
-Strong team identity.
-Good communicaion within the team.
-Roles and responsibilities are clear.
-Single Objective.
-No functional loyalty.

Question 8

What are the disadvantages to a Project Organisational Structure?

Answer 8

-More admin for PM.
-Under utilisation.
-Isolation from BaU.
-Lack of job security and career development.
-Experience leaves the organisation when project is terminated.