Chapter 2, Problem 3DQ

Explanation of Solution

Difference between functional, project and matrix organizational structures:

Functional organizational structure	Project organizational structure	Matrix organizational structure
Functional organizations are organized around the functions that the organization needs to be performed.	Project organizations are organized around projects for maximal project management effectiveness.	Matrix organizations are organizations with structures that carry a blend of characteristics with functional and project oriented organizations...

Explanation of Solution

Functional structure affecting the management of a project:

• In this structure, work groups are arranged by job being done.
• There is not much authority for project manager.
• Project manager’s role is part time and may or may not be a designated job role like coordinator.
• There is not much resource availability.
• Project budget is managed by functional manager.

Project structure affecting the management of a project:

• In this structure, work groups are arranged by projects.
• There is high authority for project managers...