CompTIA Project+ Practice Test

Which of the following represents an advantage of a functional organization?

1. Centralization of resources

2. Increase of the project manager's authority

3. Functional manager controls resources

4. Decrease in overlap of projects

The correct answer is: Centralization of resources

The advantage of a functional organization is the centralization of resources, which refers to the way resources, including personnel, tools, and financial assets, are grouped together under specific functional departments (e.g., marketing, engineering, finance). This structure allows for efficient use of specialized resources since team members who perform similar functions can be managed together, leading to improved coordination within the departments. As resources are centralized, it becomes easier to optimize their use, streamline processes, and create a consistent approach to work, which can enhance overall productivity. Centralization also allows for clear lines of communication within functions. Since team members are organized by their expertise, the likelihood of developing deep knowledge in their specific area increases, resulting in higher quality outputs and the ability to leverage best practices across similar projects or tasks. While options that discuss project manager authority suggest an enhancement to project leadership, it’s important to recognize that a functional organization's design typically does not prioritize project manager authority relative to functional managers. The role of the functional manager is significant, especially concerning resource control and strategic direction for respective departments.