QS Study

Pure Organizational System of Project Organization

Large or small, every organization should operate with a defined organizational structure. A well thought out and strategic business configuration clarifies reporting relationships and supports good communication resulting in efficient and effective work process flow.

Pure organizational system: Under Pure organizational, the project is separated from the rest of the parent organization a self-contained unit is opened with its own resources, technical staffs, and own administration. Pure project organization is proposed when an organization has less number of projects but with a longer duration. The unit becomes accountable to the parent company. In a pure project organization approach, project managers are typically very high in the hierarchy having straight control over business functions, employees, and project resources. For larger projects, this way of organizing is helpful and competent, but for smaller projects, it is often costly to operate.

Advantages

  • The project manager has full authority over the project.
  • Team members report to one boss.
  • Lines of communication are shortened. Decisions are made quickly.
  • Team pride, motivation, and commitment are high.

Disadvantages

  • Duplication of resources.
  • Organizational goals and policies are ignored.
  • Lack of new technology transfer due to weakened functional divisions.
  • Team members have no functional area home.