Independent Project Organization

This organizational structure functions as an independent unit separate from the company.

This form of organization in industrial projects facilitates corpo­rate supervision for enterprises that enterprises that have not large number of projects at any one time.

There are some disadvantages and advantages of this organiza­tion. The most important characteristics are: [3]

Some disadvantages of this "independence" model include:

• In the case of more than one project in the organiza­tion, the teamwork being built into each project may give rise to a certain duplication of effort, thus tending to increased costs of administrative services if these services have to be duplicated for each project.

• In the case of projects that need special technology, the less communication there is between the proj­ect and technical divisions, the more difficult it is to transfer expertise from the company organization to the project.

• As a result of the independence from the head office, the staff will be fear about their career in future when they return back to the head office, and they usually have a questions about their promotion.

• Failure to balance properly the independence of opera­tion of individual projects with the overriding author­ity of Head Office may create unintended clashes among managers working on individual projects and administrators at Head Office.

This kind of organization has defects that can be prevented if an appropriate project manager is selected.