Merits and Demerits of Project Organisation

The project structure consists of a no. of horizontal organizational units to complete projects of a long duration. Each project is vitally important to the organization. Therefore, a team of specialists from different areas is created for each project. The size of the project team varies from one project manager to another. The activities of the project team are coordinated by the project manager who has the authority to obtain advice and assistance of experts both inside and outside the organisation.

The core of the concept of project organization is to gather a team of specialists to work on complete a particular project. The project staff is separate from and independent of the functional departments.

Project organization is employed in aero-space, aircraft manufacture, construction and professional areas like management consulting. In such organization, projects are subject to high standards of performance and there is a strong emphasis on horizontal relations among specialists.

 Generally, project organization is appropriate when the enterprise is undertaking tasks that have defined goals, that are complex due to interdependence of tasks and that are crucial to the success of the firm. A project team is a temporary set-up. Once the project is complete the team is disabanded and the functuning specialists are assigned some other project. 

Merits of Project Organisation

Project org. provides concentrated attention that a complex project demands. It permits the timely completion of a project without disturbing the normal routine of rest of the org. It can be tailored to a particular mission or project to consolidate diverse actions towards the completion of the project while retaining the advantages of functional specialists.

Project org. provides a logical approach to any challenge in the form of a large project with definite beginning, end and clearly defined result. It cuts manager’s job to a reasonable level, spreads decision-making and facilitates communications through lateral relationships.

The project often requires highly talented professionals who find it difficult to work creatively in any structured set-up. The idea of being part of a team of skilled professionals working on a tangible project acts as a powerful motivator. Project org. encourages initiative and creativity on the part of project staff by giving them a free hand to accomplish work.

Project org. has been found to fit a number of widely-varying situations, from building contractors and advertising agencies to accounting and consulting firms. The increasing complexity of projects that require the highly specialized experts and rapid changes from one project to another often demend the flexibility provided by project structure. It accommodates the formal ideas of classical thinking together with the team and participative ideas of behavioural contributions.


Merits and Demerits of Project Organisation Merits and Demerits of Project Organisation Merits and Demerits of Project Organisation

Demerits of Project Organisation

There is organizational uncertainty because a project manager has to deal with professionals drawn from diverse fields. Often they differ in approach and interest. There is lack of clearly defined responsibility, clear communication lines and measurement yardsticks. Lack of prescribed organizational processes make the job of a project manager very frustrating. There is danger over specialization. In addition, lack of awareness of project problems and personal prejudices on the part of top people may jeopardize a project.

A project manager is responsible for project outcomes. But the ongoing conventional organization does not give him unlimited authority. therefore, budgets, manpower and control are serious problems.

Organizational uncertainities may lead to interdepartmental conflicts. People have fear of being forgotten at the time of promotion due to separation from the main structure. There may be role conflicts, poor loyality  and underutilization of resources. Excessive supervision and multiple controls cause frustration. Decisions may be based on scanty data due to pressures for completion of projects on time.

There is considerable fear among personnel that the completion of a project may result in loss of job. The feeling of insecurity and varying status creates considerable worry about career progress.

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By Hassham

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