Leads to slow response to customer. Rigid functional departments may limit communication, innovation, and motivation. Continuous involvement of top level management to resolve coordination problems. Various functions are grouped together under a project manager. Advantages of Project Organization Single project authority - Strong line authority over the project.
Personnel develop loyalty to the project.
This results in strong motivation and better morale. Allows project manager flexibility in hiring full-time specialists and in subcontracting. Upper level management maintains more free time for executive decisions Disadvantages of Project Organization High cost for a Multi-project company due to duplication of efforts, facilities, and personnel. Tendency to retain personnel on a project long after they're needed since there is no pool of expertise to draw upon. No functional group to look toward the future and improving the company's capabilities.