This project is based on the following scenario – essentially, you are considering the various aspects of executive compensation.
The Aspen Institute of Washington, D.C. has partnered with the largest human resources consulting firm, Mercer of New York City, and the Economic Policy Institute [EPI] of Washington, D.C. These think tanks have been tasked by the U.S. Senate to develop and deliver a comprehensive report on “C level” executive compensation and provide an integrated set of recommendations to the Finance Committee. This report will focus on the CEO pay of Fortune 500 companies whose headquarters are located in the United States. Each of the think tanks represents a different perspective on the issue.
.2 What is Project-based organizational structure?
Moving on with the next organization structure is project-based organizational structure. As per the naming convention, each project manager reports directly to the respective CEO of the organization. This structure is also referred to the development of an independent project team since the management function or unit is actually separated from the other units of the parent organization.
The individual project team will have their own resources and management function accordingly. With reference to the earlier statement also leads to the fact that each project manager will have their own dedicated full-time team members or available resources. However, the project-based organizational structure would only suit an organization that drives projects as well as the delivery of these projects as their core business or scope.
In simple terms, most of the organizational resources are involved in project work rather than operations. The project team usually report directly to the project manager or alternatively, provides support services to the projects. It is also known that the project managers actually have the utmost authority rule over the project. However, the involved project teams are usually dismissed once the project had been completed. These project team consisting of members of various specialties usually physically work in the same place (Development Cooperation Handbook 2013).
Figure 1.f. Project-based Organizational Structure (www.tutorialspoint.com 2010)
Advantages Disadvantages
focused on this project team, project manager is solely responsible for the project, the only task for project members is to complete the project, and they only report to the project manager, avoiding the multiple leadership. when a company has several projects, each project has its own separate team, which will lead to duplication of efforts and the loss of scalable economies.
the project team’s decision is developed within the project; the reaction time is short. the project team itself is an independent entity, prone to a condition known as ‘Project inflammatory’ disease, that is, there is a clear dividing line between the project team and the parent organization, weakening the effective integration between project team and the parent organization.
in this project, members work with strong power, high cohesion, participants shared th