23. A firm with many ongoing projects deploys an organizational structure where the project manager defines what needs to be accomplished and establishes the project plan, schedule, and budget. Additionally, the functional manager determines how the project will be accomplished by assigning personnel and executes plans in accordance with the standards set by the project manager.
Answer: C
A strong matrix organizational structure is characterized by shared authority between project managers and functional managers.
In a strong matrix organizational structure, project managers have significant authority and control over project decisions, with functional managers supporting the execution of these plans. This arrangement allows for effective project management while still utilizing the expertise of functional departments.
A) Weak matrix organizational structure
A weak matrix organizational structure is characterized by the functional manager having more authority than the project manager. In this setup, project managers have limited control over resources and decision-making, making it unsuitable for the scenario described, where the project manager has defined the project plan and budget.
B) Balanced matrix organizational structure
In a balanced matrix organizational structure, both project managers and functional managers share authority relatively equally. While this might seem similar to the strong matrix, it does not fully capture the assertiveness of project managers that is depicted in the scenario, where the project manager clearly leads in defining the project’s direction.
C) Strong matrix organizational structure
The strong matrix organizational structure allows project managers to have significant authority, which aligns perfectly with the description provided. In this structure, the project manager establishes the project's goals, plans, and budgets, while the functional manager’s role is primarily to support the implementation of these plans, indicating a clear division of responsibilities that favors project management.
D) Functional (departmentalized) organizational structure
A functional (departmentalized) organizational structure is one where departments are organized by function and managers have authority over their respective areas. This structure does not support specific project oversight or shared authority, as it focuses primarily on departmental functions rather than project management, making it an incorrect choice.
Conclusion
The strong matrix organizational structure is definitively the correct answer as it emphasizes the project manager's authority in defining and managing projects while allowing functional managers to contribute within their areas of expertise. All other options either place more authority in the functional manager's hands or do not align with the collaborative approach described in the question.