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Functional Organization Notes: Definitions & Explanations PDF | Download eBooks

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Study Functional Organization lecture notes PDF with project management definitions and explanation to study What is Functional Organization?. Study functional organization explanation with project management terms to review project management course for online MBA programs.

Functional Organization Definition:

  • Functional organization structure is defined as groups consisting of individuals who perform the same function or have the same expertise or skills.

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Functional Organization Notes:

A functional organization structure is usually used by organizations whose major aim is to produce standard products and sell them. Individuals working in a functional organization perform the same function or have same set of skills. A functional organization has a group of individuals for each function to be performed and functional group perform its own activities. Although functional organizations do not take on external projects but sometimes carry out projects within the organization. When internal projects are performed in functional organizations, the project manager of the particular project does not have the complete authority on the project team members. This is due to the fact that the team members work for their respective function's manager even though they are part of the project.

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