MMET 429, Test 2, Project Management Organization Structure

What does an Organization Charts do?
– Graphical way to represent the company
structure, Lines connect boxes indicating who reports to whom
In an organization chart, what positions have the most authority?
Positions closer to the top are the positions that have the most athority
What are the different types of authority?
– Line Authority: do tasks and give orders
directly related to organization’s purpose

– Staff Authority: advise or assist those who have line authority

– Functional Authority: right to give orders in
functional area

Functional Organization: Benefits
– No duplicate activities
– High performance in functional areas
Functional Organization: Drawbacks
– Insular (only
– Lack of customer focus
– Slow response time
Geographic structure chart
– an organization is departmentalized according to the location of customers, served or the goods or service produced.
Functional structure chart
– Personnel and other resources are grouped
according to the type of the work they perform
Project-type Organization chart
– Teams with cross functional expertise
– Team task is to complete a project
– Each team works like mini companies
(Lockheed Martin Skunkworks)
Project Structure: Benefits
– Control over resources
– Insulated from bureaucracy and politics
– Responsive to customers
Project Structure:
– Expensive
– Little knowledge transfer
– Can lead to animosity
Matrix Organization Charts
– Combines functional structure with project structure
– Project manager has full responsibility for
– Functional manager – technical expertise and
– Functional employees may be assigned part
or full time to project
– Design groups or resource groups

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