A project organization is a structure that facilitates the coordination and implementation of project activities. Its main incentive is to create an environment that encourages interactions among the project personnel with a minimum amount of distractions, overlaps and conflicts. At the start of every project, it is important to first select the organization structure. On the basis of unique characteristics of the project, each project structure various forms its own advantages and disadvantages. The main goal of an organizational structure is to reduce confusion and uncertainty that is almost certain to occur in a project’s early stages. The structure defines the relationships among members of the project management and the relationships …show more content…

If there is an urgent change that needs to be done, it is very likely that all the divisions would be able to react at the same time. A functional structure is best suited for a producer of standardized goods and services in large volumes at low costs. Every department knows what it needs to do and how to do it. Let the divisions work on their specific tasks is basically the motto of this structure. The next structure to discuss is the matrix structure. In a matrix structure, employees are grouped based on function and product. The employees are selected based on strengths and weaknesses so that the entire group can cover for each other and form an effective team with all its bases covered. Individuals are chosen according to the needs to of the project and the project managers of each group are directly responsible for completing the project within the agreed upon deadline and budget. There are downsides however. Since every group has its own project manager, there can sometimes be a conflict between them over the allocation of resources. One group might need more money or time to finish their tasks, but that would leave the other groups with less to work with. Also, the independence granted to each of the groups can make it difficult to monitor them all if the need arises. Lastly, costs can increase exponentially if each group has more and more managers and sub