PMI Risk Management Professional Practice Exam

What type of organization does a project manager have little authority to assign resources in?

1. Matrix

2. Hybrid

3. Functional

4. Projectized

The correct answer is: Functional

In a functional organization, the project manager typically has limited authority when it comes to assigning resources. In this structure, resources are organized into departments based on their skills and specialties, such as marketing, finance, or engineering. Each department is managed by a functional manager who has control over the resources within that department. The project manager's role is often more of a coordinator or facilitator rather than a decision-maker. They may need to work closely with functional managers to secure the necessary resources for their projects, but ultimately, the authority to assign those resources lies with the functional managers. This can lead to challenges such as competing priorities, where functional managers prioritize their departmental needs over the project’s requirements, making it difficult for the project manager to effectively manage their project. In contrast, in a projectized organization, the project manager has full authority over the project and the resources assigned to it. In a matrix organization, the project manager shares authority with functional managers, and in a hybrid organization, aspects of both functional and projectized structures coexist. However, it is within the functional organization that the project manager's authority is the most limited, focusing instead on collaboration and negotiation to obtain necessary resources.