Organizational Structures - Functional

In this type of organization structure resources are grouped into functional specific units or departments based on their functional and or technical skills, and are excellent for operation (on going) type activities and they are also useful for managing small projects where the majority of the technical work is done within the same unit.

These types of organization structures, fall short in terms of timely delivery in a situation that requires extensive cross functional communication and cooperation. There s a chance of failure due to the lack of project ownership as resources in general will view their part of the project as part of their regular work and once they are done with their part they have nothing to do with the project. The project leader has little or no authority over resources outside of his / her department or unit.