Organisation of project teams with members retaining functional area reporting relationships and identification.

Operates best in a dynamic, unpredictable environment.

Advantages

• Offers great flexibility
• Encourages interfacing across departments
• Creates strong problem-solving or goal focus
• Uses staff resources efficiently
• Creates vertical and horizontal information flow

 

Disadvantages

• May result in higher overhead costs because of doubling the number of managers
• May slow down the decision-making process
• Increases complexity
• Increases potential conflict between functional and project managers
• Results in ambiguity for employees in reporting relationships