Friday, April 2, 2010

Project Structure

 The project structure aligns its professional staff with projects. In these organizations, a person is assigned to only one project at a time. Project team possesses all of the skills needed to achieve their goal.
 In this organizational structure, the project team works full-time on the project until its completion. The project manager has the line responsibility for the team members.
 The major disadvantage of the project structure is its inefficient use of resources. If time to market is the dominant constraint, then resource efficiency suffers. On the other hand, if the efficient use of resources is the constraint, then time to market suffers. You can’t have it both ways!

Project Structure Advantages:
 Team members are assigned 100 percent to the project and do not have the diversions that other structures create.
 If offers better individual visibility. The project teams are self-contained, with every member accountable for deliverables. There is no place to hide.
 It has greater adaptability. The project manager has line authority over the team members. Schedules can be adjusted as needed without having to worry about creating scheduling conflicts due to other assignments.
 Personnel demonstrate loyalty to the project.
 It has better cost control. The project manager controls all of the resources and therefore has better visibility and control of those costs than in other organizational structures.
 Strong communication channels.

Project Structure Disadvantages:
 It has poor stability. Project can be cancelled due to changing market conditions, business priorities, and many other reasons. In those cases deployment of the team members to other projects may be problematic. The same situation exists when the project is completed.
 Because of the changing projects in the organization, more management attention is required than in the case of more stable structures.

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