The use of the project organization has increased in the last few years.
It is currently being employed in numerous undertakings engaged in the execution of construction activities, turnkey projects, and research and development projects.
The project organization can take various forms, but the important characteristic that distinguishes it from other forms is once the project is completed the organization is disbanded or phased out.
By definition, project management involves, “the gathering of the best available talent to accomplish a specific and complex undertaking within time, cost, and quality parameters, followed by the disbanding of the team upon completion of the undertaking”.
The group members then go on to another project and return to their permanent home department in the organization, are given jobs elsewhere in the organization, or, in some cases are phased entirely out of the firm.
Merits of Project Organization:
a. It allows maximum utilization of specialization.
b. It is tailor-made to meet the specific needs of a particular project.
c. It provides more flexibility in handling resources by allocating them when they are needed.
Demerits of Project Organization:
a. It has a limited time and creates a feeling of uncertainty and insecurity among people in the organization.
b. Lack of proper vertical authority makes the job of a project manager difficult. He is responsible for the completion of the project but without authority over people in the project.
c. Undue influence of specialists from the diverse fields makes the decision making very difficult.