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A project organizational structure is frame of policies and procedures that guides organizational activities. According to reference for business, project organization falls along the lines of a functional departmentalization.
The policies include;
i. Significance of organizational structure
Setting up an organizational structure based on projects allows companies to put like-minded
individuals together in the work environment. These individuals help each other accomplish
tasks and activities for the business, similar knowledge and training also allows these employees to help advance their careers.
ii. Consideration
Business owners and managers must ensure that they integrate each individual project group
within the company. Allowing organizational structure to remain rigid not interact can create a divisive environment. Companies with multiple locations may face this issue more than a tightly grouped business.
Many businesses are naturally project based as drilling companies, but other companies also can organize their business structure based on projects. Some companies find that the structure means increased responsiveness allowing them to adjust quickly to market changes.
iii. Organizational Structure
Project – based organizational structure borrow from those based on hierarchies functions and operations. They use matrix organization where essential company functions are maintained in a management structure, while the work is carried out in project – based group that have a hierarchical structure. An employee can have one boss for project related work but another for promotion and benefits.
iv. Flexibility
Because projects are time- limited by definition, organizational structure based on project on projects continuously change. This constant flux results into increased flexibility in signing work to the employee best suited to the tasks.
v. Organization's Focus
Traditional organizations focus on hierarchical structure, such as whom you report to. Functional questions such as the nature of your job and operational question such as what work you are suppose to do. Project are focused on solution and implementation, such as whether the project does what it is supposed to, whether it is within budget and whether you will complete it on schedule.
NatalieR answered the question on June 13, 2022 at 06:08
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