Chapter 15.7: Pure project organizations Flashcards
(8 cards)
What is a pure project organization?
A separate organizational structure created specifically to achieve project goals, often operating like its own company with full control over resources and personnel.
Who leads a pure project organization?
A pure project manager with formal authority over all project personnel and resources, from start to finish.
What are the responsibilities of a pure project manager?
Proposal preparation
Budget and schedule estimates
Resource allocation
Subcontractor coordination
Personnel hiring and negotiation
What are the key advantages of pure project organizations?
High project focus and control
Strong team spirit
Fast decision-making
Flexibility
Autonomy from bureaucracy
What are the three pure project variations?
Project center – A temporary project “arm” added to the parent company
Partial project – Only critical functions are under project control; others stay with the parent organization
Stand-alone project – A fully independent entity created to deliver a major project (e.g., Big Dig, Three Gorges Dam)
What is the main disadvantage of pure project organizations?
High cost, due to duplication of roles, full staffing needs, and limited resource sharing.
What problems can arise after a pure project ends?
Difficulty reallocating specialized staff
Loss of in-house expertise development
Uncertainty and morale decline
Need for outplacement support for team members
Are pure project organizations permanent?
No, they are strictly temporary and dissolve after the project is completed.