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According to PMBOK®, Project-based organizations (PBOs) refer to various organizational forms that create temporary systems for carrying out their work. Businesses that need and expect fast innovation are most likely to be suited to project-based organizations. Many businesses like entertainment, construction, aerospace, etc. organize their work by dividing it into various projects. In a functional structure, departments are created to organize work based on specialties like marketing and finance. However, in a project-based organization, most of the business functions are organized into projects. A small-business manager should consider adopting a project-based structure as it improves the efficiency of the work. Implementation of project-based management also gives increased responsiveness, allowing him to adjust quickly to market changes. Considering the functioning of project-based organizations, we will learn about the project-based structure and the advantages of project-based organizations in this article. Basics of Project-Based Organization StructureAs the name suggests, in PBOs, projects are the main units of conducting undertakings. There is a CEO or director at the top and managers of various departments under him. Under them are project teams consisting of various members like the analyst, architect, developer, tester, etc. PBOs can be formed by different types of organizations including functional, and matrix. Implementation of a project-based system in the organization may diminish the hierarchy and bureaucracy in the organization. PBOs focus on the final result of the projects instead of unnecessary politics and positions. Functioning of Project-Based OrganizationA project focuses on one specific task or target. It could be for internal development or for a client. To utilize these business opportunities, companies set up projects to work according to individual needs. The client suggests feedback and the team works according to it. The manager is responsible for the overall quality of the project. He ensures that projects have access to the team with the right functional expertise. The project managers’ responsibilities include choosing team members, assigning tasks to them, and monitoring performances. The team members execute all the plans and do all the work. Advantages of Project-Based OrganizationNumerous advantages are associated with project-based organization:
Disadvantages of Project-Based Organization
ConclusionThe disadvantages in comparison to the advantages are fairly insignificant and negligible. Project-based organizations are especially suitable for small or medium business organizations, desiring fast development of the organization and high-quality products. PBOs are based on and work on the philosophy that every little fragment of the work is important, irrespective of the size and structure of the organization. That’s why work is divided into projects so that individual and exclusive attention can be paid to the work. Give yourself a chance to evolve in your project management role with the PMP certification training and gain the best skills and practices in project management. Know more about Project Management best practices through Invensis Learning’s Project Management certification training on PMP Exam Prep Online Training, CAPM Certification Preparation, Prince2 Foundation and Practitioner Certification, Project Management Fundamentals, etc. What are the disadvantages of project structure?The project structure is the easiest to work with, but still has some drawbacks: Having a team dedicated to one project is an expensive commitment. It tends to be an option only on big projects. If you remove people from their functional jobs, they might find it difficult to go back, especially if the project is long.
What are the disadvantages of the project organizational type?Disadvantages of Projectized Organization:
If the organization will have several projects, the resources may be doubled and there may be miscommunication when it comes to allocating these resources. Moreover, due to the great amount of power of the project manager, it can be an issue for members of the team.
Which of the following are disadvantages of the functional project organizational structure?Answer and Explanation: One disadvantage of a functional organizational structure is d. It does not facilitate a straightforward approach to supervision and management.
Which of the following is a disadvantage of the matrix project structure?One common disadvantage of the matrix structure can appear as confusion among managers who are involved with projects that are outlined by the matrix.
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