A projectized company
Employees face the greatest risk of job termination in a projectized organizational structure. A projectized company is less efficient in its use of resources. Given the organization employs skilled personnel and specialized materials for a specified period, cancellation of a project means employees represent a growing liability. It will be costly for the company to retain the employees past the estimated project duration. Moreover, the project manager has absolute power over the daily operations of a projectized company. The abundance of control can become a problem for the employees as the project manager is at liberty to terminate their employment contracts at any given time.
I strongly agree with the three statements that seek to expound on the environment of a matrix. For one, a matrix organizational structure allows a project to draw on personnel that best fit specific roles and requirements. The staff maintains their initial positions within their departments while temporarily working on the project. Secondly, successful project completion mandates that the project manager be at least on the same level as functional management. If the project manager is not in terms with functional management, the project will lose favour to daily company routine operations. Lastly, project managers working under the matrix prioritize short-term profitability. The need for fast and accurate results forces continuous trade-offs on cost, quality, time, risk, and uncertainty.
Project-driven companies depend on the in-flow of projects for revenue generation. The organizations create project portfolios as the primary form of business. Organizations that operate in agile environments that require temporary systems to work are better suited for the organizational model. The divisional, matrix and hybrid organizational structures are good examples of project-driven operational models. In all three structures, there is the development of temporary teams and systems for the completion of specific tasks. The organizational structures embody the dynamic and adaptive attributes of project teams.