More Clarification needed on "a functional organization but has chosen to be a composite due to market need"

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chowla.abhishek
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Joined: Fri Aug 31, 2018 12:50 pm

More Clarification needed on "a functional organization but has chosen to be a composite due to market need"

Postby chowla.abhishek Fri Oct 12, 2018 12:52 pm

This is one of the question in chapter 2, need some help in understanding why 2nd option selected, why not option one.


RITZ is a chemical manufacturing company that typically executes projects within individual departments. Hence, does not need a PMO function. Due to market demand, there was a need to start a project for manufacturing potentially a sensitive chemical within 12 months else there would be a huge financial impact. Considering the need for faster time to market, CEO of the organization hired a PM for this project and has given full authority to PM to operate outside the standard formalized reporting structure during the project. What is the best way to describe this situation?

RITZ is a projectized organization and PM has been given exceptional powers due to market need

RITZ is traditionally a functional organization but has chosen to be a composite due to market need

RITZ CEO should have asked PM to operate within standard reporting structure

RITZ is traditionally a functional organization but has now become projectized.

Solution
Composite organizations create a special project team to handle critical need; the team may include full-time staff from different functional departments and develop its own set of procedures and may even operate outside the standard, formalized reporting structure during the project.


Option A: RITZ is not the projectized organization it is a functional organization, Option C is not applicable here as there is no such need not to provide an exception. Option D: By having the only project being executed in a projectized manner does not make entire organization projectized.


@Izenbridge Team

Need help in clarification the above answer why "RITZ is traditionally a functional organization but has chosen to be a composite due to market need"

Please help understand the above question better.

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