ITPEC FE Morning April 2021 Question 75
Which of the following is an organizational structure of a corporation that is temporarily structured by specialists from each department to reach a specific goal over a limited period and operates independently from all other standing organizations?
Explanation
Project organization — a temporary team of specialists from several departments, set up for one goal and disbanded when it is reached.
A project organization is formed for a specific objective and a limited period, such as building a new system. Its members are drawn from the relevant departments, it works independently of the standing organization while the project runs, and the members return to their departments when it ends.
Answer (d)
Why not others:
- •(a) Company system organization — a permanent structure that runs each business as an internal company with its own capital and profit responsibility
- •(b) Divisional system organization — a permanent structure divided by product, region or market, each division responsible for its own profit
- •(c) Functional organization — a permanent structure grouped by function such as manufacturing, sales and accounting
Key rule: "Temporary", "specific goal" and "limited period" identify a project organization; the other structures are standing organizations.
Corporate Activities · AI-written, may contain errors
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