SELF TEST: Project Organizational Structure

Of the following management skills, which will a project manager use most?

• Leading

• Communication

• Influencing the organisation

• Negotiations

Answer explanation

Communication is the key general management skill a project manager will use the most.

Other choices are necessary, but communication accounts for the majority of a project manager's time.

Which of the following is a key characteristic of a functional organizational structure?

• Team members report only to the project manager

• Resources are fully dedicated to projects

• Employees report to functional managers within specific departments

• Decision-making is decentralised

Answer explanation

In a functional structure, employees report to functional managers, and their work is organised based on departments such as finance, marketing, or human resources.

In a matrix organisational structure, how is authority typically shared?

• Functional managers have all authority

• The project manager has full control over resources

• Authority is shared between the project manager and functional manager

• There is no clear authority structure

Answer explanation

In a matrix structure, both the project manager and functional managers share authority over the team and resources, creating a dual-reporting relationship.

Which organisational structure is best suited for large, complex projects requiring full-time project focus?

• Functional

• Matrix

• Weak Matrix

• Projectised

Answer explanation

A projectised structure is best suited for large projects because resources are fully dedicated to the project, and the project manager has complete control over the team and budget.

In which type of organisational structure do employees typically have the most loyalty to their functional department?

• Functional

• Projectised

• Matrix

• Composite

Answer explanation

In a functional structure, employees have the strongest loyalty to their functional department because their direct supervisors are functional managers, not project managers.

What is one advantage of a matrix organisational structure?

• High resource dedication to each project

• Efficient use of resources across projects

• Clear lines of authority

• Simplified reporting relationships

Answer explanation

A matrix structure allows efficient use of resources across multiple projects because employees can be shared between functional departments and projects, optimizing resource allocation.

Which type of matrix structure gives the project manager the least amount of authority?

• Strong Matrix

• Balanced Matrix

• Functional

• Weak Matrix

Answer explanation

In a weak matrix, the project manager has limited authority, and the functional manager retains most of the control over resources and decision-making.

In a projectized organisational structure, who has the most control over project resources?

• Functional manager

• Team leader

• Project manager

• Department head

Answer explanation

In a projectised structure, the project manager has the most control over resources, as the entire organization is structured around projects, and resources are assigned exclusively to project work.

What is one disadvantage of the functional organisational structure?

• Limited communication between departments

• Team members may have divided loyalties between projects

• Functional managers may lack expertise

• Resource allocation is inefficient

Answer explanation

In a functional structure, communication between departments can be limited because departments tend to work in silos, focusing on their own specialised functions rather than collaborating across the organization.

In which type of organisational structure might employees be most confused about who to report to?

• Functional

• Weak Matrix

• Projectised

• Strong Matrix

Answer explanation

In a strong matrix structure, employees might be confused about reporting lines because they report to both a project manager and a functional manager, leading to potential confusion about roles and responsibilities.