This structure has several benefits regarding the project effectiveness. First of all, communication within the team would be faster and more effective since the employees in the group only need to report to project managers who directly controls and monitors the progress. And the structure encourages the communication within the team. Second, the characteristic of centralized authority in this organization structure enables the project manager to decide the key aspects or respond to changes in a timely fashion (Lock, 2007; Meredith and Mantel, 2009). Third, the project manager could update the progress and discuss the issue with the senior management level without going through each functional division. This reduces the time of communication as well as the possibility of mistakes. Third, the commitment and engagement level would be enhanced since each team will possess a unique project identity and share a clear vision towards their product. The increasing commitment level will contribute to the employee’s personal performance which will positively affect the project effectiveness (Sawitri, Suswati and Huda, 2016).
Without doubts, the product or project organizations also has the negative impacts on the project effectiveness. First of all, it might be costly for a project in terms of the physical resources and human resources. There are some project managers who like to hire the key employees with crucial technique skills before they really need those employees or pile up the equipment in advance. With the purpose of preparing and securing the resources in advance, project expense becomes higher. Similarly, the duplication of the position in the different project requires a large amount of...
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...rformance and generation of new ideas and alternatives. In terms of the organizational structure, the functional organization could enhance the performance and reduce the cost by good knowledge management and efficient utilization of human resources. However, it might fail to effectively deliver the product or service due to the long responsive time, lack of cross-functional communication and leadership. In terms of the product or project organization, the centralized authority, reduced communication line and higher commitment level can positively influence the project. But it might cost a lot for a project and result in inconsistency with the organization. The matrix organization makes the most use of both advantages and tries to ameliorate the weakness. But the dual reporting and resource allocation might hinder the project progress, making the project ineffective.
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