Functional Organizational Structure

Bill Carmody discusses the functional organizational structure, where workers are grouped by skills and knowledge into vertical departments. These departments, or silos, operate independently under top management. While efficient, this structure can be ineffective for project management, which requires cross-department collaboration. Project managers must navigate these silos to assemble the best team for a project, considering reporting structures and departmental roles.

What is the primary basis for grouping workers in a functional organizational structure?

• Geographical location

• Specific skills and knowledge

• Random assignment

• Employee preferences

What is a key characteristic of functional units within an organization?

• They are always temporary

• They function independently with their own management

• They handle multiple aspects of a product

• They operate under multiple authorities

Why are functional units often referred to as 'silos'?

• Because they operate independently

• Because they are transparent

• Because they store information

• Because they are made of concrete

What is a major challenge in project management within a functional organizational structure?

• Cutting across vertical silos to integrate departments

• Finding enough employees

• Maintaining employee satisfaction

• Reducing costs

How does a project manager ensure effective collaboration across departments in a functional organization?

• By selecting the best individuals from each department

• By avoiding cross-departmental projects

• By ignoring departmental boundaries

• By focusing only on one department