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Project based organisations are good at delivering projects because the staff are allocated to the projects. This works well on large, long term projects, and the dedicated staff working on the project report through the project manager. People are normally full time members of the team, and the project manager often has both line and project responsibilities of the team. The structure provides for strong team identity, is goal orientated and allows the team members to develop project skills. There are a number of disadvantages, in terms of multiple different projects are hard to do, people may feel isolated from their departments (if they are loaned to the project), they may feel they are lacking in functional skills development, they may also worry what will happen to them when the project ends and for continuity of employment in the company and can lead to cost inefficiencies (may only need certain team members for a portion of the time rather than 100%, project manager may need to do resource based tasks such as appraisals on his team).

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