Merits And Demerits:

Before the project starts, top management should categorise the project, i.e. functional project, pure project, and matrix project. Out of three, former one needs self contained teams that give their full time into the project. Its merits & demerits are such as:

Merits

1. The project manager contains full authority over the project.

2. Members report to team manager. They do not need to worry about dividing loyalty with a functional-area manager.

3. Lines of communication are shortened. Decisions are made rapidly.

Demerits

1. Equipment and people are not shared across projects; thus there is duplication of resources.

2. Organizational goals and policies are avoided, as team members are often both physically and psychologically eliminated from headquarters. Functional project comprises the functional divisions.