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Assignment: Chapter 13 Summary
Date: May 02, 2020.

Summary

Chapter 13 addresses the Project Management Organizational Structures. To begin with,

functional, autonomous projects and organizational matrix structures are the three most

prominent frameworks used to organize individuals to work on projects. These systems are

applicable to a vast number of corporations, as well as public and non-profit organizations.

The functional organizational structure is one that organizes individuals into groups

performing the same task or possessing the same knowledge or skills. The emphasis is on the

technological excellence and cost competitiveness of the company's products, as well as the

value of the skill, contributed to the company's products by-functional part. The project manager

does not have full control over the project team in this system, as the participants also work

administratively under their respective functional managers.

On top of that, the functional organizational system is frequently applied in businesses

where standard products are primarily sold and produced. A functional organizational structure

has the benefits of no duplication of actions (activities) and operational quality. The drawbacks

(disadvantages) involve insularity, slow response time, and customer focus shortages.

The autonomous organizational project structure is one under which each project acts as

its own, somewhat separate agency, with dedicated resources allocated to each project alone. It is

used by organizations that at any given time operate on several projects and do not manufacture

regular goods. Upon completion of the project, team members can be assigned to another project

if they possess the requisite expertise. Autonomous organizational frameworks for projects are

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seen mainly in organizations participating in very large ventures with high dollar costs and long

durations.

Apart from that, companies that work on numerous projects at several time and unable to

provide standardized goods are using the autonomous organizational project system. The

benefits (advantages) of the autonomous organizational project system are control over the

resources and customer responsiveness. Its drawbacks are cost ineffectiveness and minimal

knowledge transmission (transfer) between projects.

The matrix organization is a mixture (hybrid) of the organizational structures of both the

functional and autonomous projects. The benefits of an organizational matrix structure consist of

effective resource utilization, operational skills accessible for every project, enhanced

transmission of learning along with knowledge, advanced communication as well as customer

concentration. Its drawbacks are the dual relationships of reporting and the requirement for a

balance of authority.

In the matrix organizational structure, the project management department supervises and

manages various projects. Each functional manager is responsible for how the delegated work

tasks are conducted and who will do each job. The benefits of an organizational matrix structure

include efficient resource management, functional skills available for all programs, enhanced

transfer of learning and information, better communication, and customer attention. The

disadvantages are the dual relationships of coverage and the need for a balance of control.

Finally, the project management office can also offer training on project management,

offer administrative support to project personnel, create standardized procedures, and establish

best practices and models for project planning, monitoring, and project control.