Abstract
The traditional, functionally structured organization is well suited to a single process operation such as a manufacturing production line. However, this structure does not easily permit the crossfunctional coordination that is essential to successful project performance. The paper reviews two of the most common problems that are encountered when an attempt is made to introduce formal project management into a traditional, functionally structured organization. Possible actions for alleviating the problems are then described. These problems are (a) mistrust and conflict between functional groups and the project office, and (b) the selection and establishment of an appropriate project-team structure. These are primarily problems of resistance to change, and they are hence ‘people’ problems, rather than problems with the systems or practices themselves.
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