Question $1$

$20$ Marks

Study the scenario and complete the question$($s$)$ that follow$($s$)$:

How do organisations decide on their project structure within the existing work environment?

When working on a project, one must decide on its structure. Choosing a feasible structure is crucial for the project's smooth execution. This structure may be Functional, involve a Dedicated Project Team, or adopt a Matrix Arrangement. These three structures are differentiated based on the authority allocated among functional managers and project leaders.

In a Functional organisation structure, tasks are allocated to different functional areas $($marketing$,$ design or operations$)$ as per project requirements, with the high$-$ranking manager tasked with coordinating the project. In the Dedicated Project Team structure, a separate unit is formed, operating independently from its parent organisation, with a full$-$time project manager designated. Each of these structures has its own set of pros and cons.

In case of functional structure organisation get flexibility and availability of expertise as a benefit on the other end it could result in lack of focus, bad integration or delay in completion. Similarly, in case of Dedicated Team project could be complete on time with proper guidance and coordination however, it could cost huge amount, limit having maximum technological expertise and sometimes emerges conflicts between the team and the other division of the organisation.

To overcome such problems and settle conflicts between divisions, the Matrix Arrangement was introduced to try and balance these issues. In the case of a Matrix organisational structure, individuals are assigned to the project on a part$-$time or full$-$time basis according to project requirements during various phases. Once the project is completed, functional divisions continue performing their core activities. This structure resolves issues such as resource and expert availability, providing a strong project focus, but it may generate other conflicts, including stress and internal conflicts.

Another structure is the Projectized Organisation Structure, where projects are the dominant form of business, such as in a construction firm. In this setup, the main responsibility of functional departments is to support Project Teams.

$1\mathrm{.}2$ In a Project organisational structure, projects are the dominant form of business activity. Analyse the implications of this structure for functional departments and their roles in supporting project teams. How can organisations ensure that functional departments remain effective in a project$-$centric environment?

$(10$ Marks$)$