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Project-type Organizations

Why would a company choose to structure itself as a project-type organization? Can you think of an industry, firm, or project that is best suited for this type of structure?

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Project-type organizations function best when they can afford to hire employees that are able to serve in more than one capacity per project, in addition to those cases where high risk could pose a threat to human life. For instance, let's say you work in sports management. Your salary negotiator could be an outside sales rep during the summer and an inside sales rep during the winter. Another good example would be if an individual is an engineer for the Metro in ...

Solution Summary

Project-type organizations are sometimes considered to be expensive because each project must pay the salaries of its dedicated project team, even during parts of the project when they are not busy. This excerpt explains why companies decide to organize in this fashion.