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Organizational structure influences the authority of the project manager and influence that how projects are conducted all organizations are structured in one of three ways functional projected or matrix organization structure is further divided into three types strong matrix balanced matrix and weak matrix project manager Authority and organizational structures in functional organization project authority rests with a functional manager and any projected organization it rests with a project manager a matrix organization tries to be somewhere in between these two in a strong matrix the authority is with a project manager justlike in a projected organization in weak matrix the authority is with functional manager just like in functional organization and in balanced matrix the authority over the project is shared by both the functional manager and the project manager now let's understand the functional organization a functional organization structure is a hierarchical type of organizational structure wherein people are grouped — as per their area of specialization and supervised by the functional manager with expertise in the same field this way the risk is canned be effectively utilized and reorganization#39’s objective can be achieved the functional organizational structures suitable for an organization which has ongoing operations such as manufacturing and production in functional organization is divided into various specific departments like human resource marketing finance andoperationslow figure represents a classic functional organization where each employee has one clear superior grouping occurs from top level down to the bottom level for example accounting engineering or marketing project work of each group performed independently of other groups now let us see the advantages and disadvantages of a functional organization its advantages are as follows it is a stable organization structure employees have a career growth path with separation of functions employees have one supervisor with clear chain of command disadvantages of functional organization are as follows project manager has little to no formalAuthority multiple projects compete for limited resources and priority and project team members will likely to remain loyal to their functional manager project eyes Organization x'projected organizations are nearly the opposite of functional organizations the focus of this type of organization is the project itself the idea behind project sized organization is to develop loyalty to the project not to functional manager in a projectizedorganization the project manager has all the power and authority and everybody directly reports to the project manager the following figure illustrates projected organization team members are often co-located team resources ca neither report directly to the project manager nor provide support services tithe various projects and project managers almost always have ultimate authority over the project in this...
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