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Project Organization - Hydrobuck

I am trying to answer a question, given the different types of project organization such as pure project organization, matrix organization, and mix organization system, but I can't seem to understand them to apply the concept. I need help in answering the following question.

Question: What alternative types of project organization would suit the development of the power trim system? Which would be the best? Discuss your reasons for selecting this type of organization.

Hydrobuck is a medium-sized producer of gasoline-powered outboard motors. In the past it has successfully manufactured and marketed motors in the 3- to 40- horsepower range. Executives at Hydrobuck are now interested in larger motors and would eventually like to produce motors in the 50- to 150-horsepower range.
The internal workings of the large motors are quite similar to those workings of the smaller motors. However, large, high-performance outboard motors require power trim. Power trim is simply a hydraulic system that serves to tilt the outboard motor up or down on the boat transom. Hydrobuck cannot successfully market the larger outboard motors without designing a power trim systems to complement the motor.
The company is financially secure and is the leading producer of small outboard motors. Management has decided that the following objectives need to be met within the next two years:
1. Design a quality power trim system.
2. Design and build the equipment to produce such a system efficiently.
3. Develop the operations needed to install the system on the outboard motor.
The technology, facilities, and marketing skills necessary to produce and sell the large motors already exist within the company.

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There are three alternate project organizations that can be selected for Hydrobuck project.

The first alternative is the pure project organization. In this organization every project has a different project manager and under him there is a team of persons. One person will be from manufacturing, another from R&D, a third from systems and a fourth from design and so on. In this type of organization there is clear project authority, access to the required expertise, focus and priority. The communications in the team is very efficient.
The second alternative is the matrix organization. In this organization the persons having similar talents are pooled together. For, example all R&D personnel are pooled in the R&D department and report to the R&D manager. These personnel are also assigned to different projects and so ...

Solution Summary

Leadership styleProject Organization - Hydrobuck is discussed in great detail in this solution