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PM009: Organizational Practices in Project Management
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(a) The three common types of organizational structure for project management is functional, projectized, and Matrix structure (Anbari et al., 2009). In the functional structure, there are hierarchy system components, where authoritative figures make decisions for budgeting, schedule, and equipment as well as having a level of expertise in the industry. Project managers within this type of structure have little to no authority. However, the workload is broken down into sections known as human resources, sales, finance, public relations, and administration. More traditional companies use this structure where staff is presided over by supervisions based on their functions in the company. The communication process is often done through the senior managers of the company. More specifically, in this type of organizational structure employees are more skilled within their functional area, thereby, providing better performance, efficiency and predetermined responsibilities. The disadvantages of the functional structure are that the tasks may appear to be large over a period of time, which creates less motivation and loyalty to the firm (Anbari et al., 2009). Additionally, the communication process become challenging for cross departments that further challenges the decision making process in the company. Projectized structures are different from functional structures, as project managers are given authorities. The project manager has power over the project budget, schedule, and the team for the project, which places the project manager with hierarchical structures (Anbari et al., 2009). Given that, project managers call all the shots while tasking employees to support the projects. After completion of a
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