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A company has fifteen projects going on at once. Three projects are over $5 million, seven...

A company has fifteen projects going on at once. Three projects are over $5 million, seven projects are between $1 million and $3 million, and five projects are between $500,000 and $700,000. Each project has a full-time project manager. Just based upon this information, which organizational form would be best? Can all the project managers report to the same person?

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Answer #1

Organizational form for any project organization can be decided by considering authority structure, information system, degree of influence, and integration of various activities. In the given problem, below information is given.

3 projects are over $5 million

7 projects are between $1 million and $3 million

5 projects are between $500,000 and $700,000

From the given information, the best organizational structure for the organization would be a functional organization. The company can divide the projects based on the size of the project, and accordingly, select two different reporting authorities. The project managers handling the projects over $5 million and between $500,000 and $700,000 can report to one authority. The other project managers would report second appointed authority.

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