Question 1

A disadvantage of an autonomous project organisational structure is that it can be cost-inefficient because of underutilisation of resources.

Accepted Answer

In an autonomous project organizational structure, each project team has its own set of resources and personnel, which can lead to underutilization of resources due to duplication of effort and inefficient allocation of resources. This can result in increased costs for the organization.

Question 2

A disadvantage of a functional organisational structure is that functional-type organisations can be insular, with each component concerned about only its own performance.

Accepted Answer

Functional organisations usually have departments that are focused on their specific functions, which can cause them to be insular and not consider the overall performance of the organisation.

Question 3

A disadvantage of a matrix organisational structure is that a company that uses a matrix organisation structure must establish operating guidelines to assure the balance of power between project managers and functional managers favours one or the other.

Accepted Answer

False

Question 4

A disadvantage of a functional organisational structure is that team work is emphasized, with much cross fertilisation of ideas among functions.

Accepted Answer

A functional organisational structure emphasizes specialization and efficiency within functions, but may not prioritize cross-functional collaboration and communication. This can lead to silos within the organization and a lack of coordination between teams.

Question 5

A company with may periodically undertake projects, but these are typically in-house projects rather than projects for external customers.For such projects, a multifunctional project team or task force is formed.

Accepted Answer

The answer of A company with may periodically undertake projects,...

Question 6

A disadvantage of an autonomous project organisational structure is that project team members do not have a
functional 'home'.

Accepted Answer

In an autonomous project organisational structure, project team members do not have a functional 'home' as they work solely on the project and do not have a permanent position in a functional department within the organisation. This can lead to difficulties in career progression and integration into the company's culture.

Question 7

Each concentrates on performing its own activities in support of the company's business mission.

Accepted Answer

In a functional organisational structure, each department or unit focuses on performing their specific tasks and functions in support of the company's overall business mission. This type of structureis best suited for companies that prioritize process efficiency and cost-effectiveness.

Question 8

A disadvantage of a matrix organisational structure is that conflicts will arise between project managers and functional managers regarding priorities.

Accepted Answer

In a matrix structure, project managers and functional managers both hold authority and responsibilities. This can lead to conflicts regarding priorities and allocation of resources.

Question 9

work groups consist of individuals who perform the same function, such as engineering or manufacturing.

Accepted Answer

Functional organizational structure is designed to group together people who share the same skills or competencies. Therefore, work groups that consist of individuals who perform the same function, such as engineering or manufacturing, are best represented by a functional organizational structure.

Question 10

A disadvantage of a matrix organisational structure is that members of a project team in a matrix organisation structure have a dual reporting relationship, which can cause anxiety and conflict over work priorities.

Accepted Answer

In a matrix organization, team members report to both their functional manager and their project manager, which can cause confusion and conflict over conflicting priorities and expectations. This dual reporting structure can lead to anxiety and stress for team members.

Question 11

A disadvantage of a functional organisational structure is that decisions may be parochial rather than in the best interests of the overall project.

Accepted Answer

In a functional organisational structure, decisions are made by functional managers who may prioritize the interests of their department or area of expertise over the overall project. This can lead to parochial decision-making and may not be in the best interests of the project as a whole.

Question 12

A disadvantage of an autonomous project organisational structure is that individuals are dedicated to working on one project.

Accepted Answer

In an autonomous project structure, individuals are dedicated to working on one project. This can result in a lack of flexibility and mobility, as individuals may not have the opportunity to work on different projects or tasks within the organization.

Question 13

A disadvantage of an autonomous project organisational structure is that there is a high level of knowledge transfer among projects.

Accepted Answer

An autonomous project organizational structure typically results in limited knowledge transfer among projects because each project operates independently with its own resources and processes.

Question 14

A disadvantage of an autonomous project organisational structure is that at the end of a project, people may be made redundant if there is not a new project to which they can be assigned, leading to team members experiencing high anxiety about reassignment.

Accepted Answer

An autonomous project organisational structure is based on the creation of temporary project teams that are given a high level of autonomy to make decisions and carry out tasks related to the project. One of the main disadvantages of this structure is that at the end of a project, team members may be made redundant if there is not a new project to which they can be assigned. This can lead to high anxiety among the team members about their future employment and can also create a negative work environment if people feel that their jobs are not secure.

Question 15

A disadvantage of a functional organisational structure is that there is a lack of customer focus.

Accepted Answer

In a functional organisational structure, employees are grouped together based on their expertise or specialized functions, which may result in a lack of focus on meeting the needs and wants of customers. Since employees are more concerned with their own functional goals and objectives, they may overlook the customer's desired outcomes, causing poor customer service or reduced customer satisfaction.

Question 16

is typically used in businesses that primarily sell and produce standard products.For example, a company that manufactures and sells video recorders.

Accepted Answer

A functional organisational structure is best suited for businesses that primarily sell and produce standard products. In this type of structure, employees are grouped based on their functional expertise or department, such as marketing, sales, production, and finance. Each department is responsible for its specific tasks and has its own chain of command. This structure allows for clear communication, streamlined operations, and efficient use of resources.

Question 17

A disadvantage of a functional organisational structure is that there is a stronger allegiance to the function than to the project or the customer.

Accepted Answer

In a functional structure, employees are grouped based on their specialized skills and tasks, which can lead to a stronger focus on their individual functions rather than the overall goals of the project or the needs of the customer.

Question 18

A disadvantage of an autonomous project organisational structure is that when things are slow, individuals have a tendency to stretch out their work to fill up the time available or if they do not have any tasks to do for temporary periods, their unapplied time is still a cost to the company.

Accepted Answer

In an autonomous project organizational structure, individuals are given autonomy and flexibility to manage their tasks and schedules, which can lead to a lack of accountability and productivity. This can result in individuals stretching out their work or being unproductive during slow periods, which ultimately adds to the company's costs.

Question 19

A disadvantage of a functional organisational structure is that the hierarchical structure causes communication, problem resolution, and decision making to be fast and efficient.

Accepted Answer

This statement is incorrect. The hierarchical structure of a functional organizational structure can actually hinder communication, problem resolution, and decision making, as there may be a lack of collaboration and cross-functional communication between departments. Decisions and solutions may also take longer to reach due to the need for multiple levels of approval.

Question 20

A disadvantage of an autonomous project organisational structure is that there is a potential for duplication of activities on several concurrent projects.

Accepted Answer

Since each project team operates independently, they may unintentionally duplicate activities or work toward different goals. Without centralized oversight or communication, it can be difficult to ensure that the efforts of each team are aligned and optimized.

Quiz 13: Project Management Organisational Structures