In an organization with a projectized organizational structure, who controls the project budget?

Question

Options

• AFunctional manager
• BProject manager
• CProgram manager
• DProject management office

• A
  4% (2)
• B
  82% (37)
• C
  11% (5)
• D
  2% (1)

Explanation

In a projectized organizational structure, the project manager has full authority over the project, including complete control of the budget - making B correct. This structure exists at the opposite end of the spectrum from functional organizations, where authority rests with department heads.

Why the distractors are wrong:

• A (Functional manager): Functional managers control budgets in functional organizational structures, where projects are secondary to departmental work. In a projectized structure, they have little to no authority.
• C (Program manager): A program manager oversees a group of related projects but does not directly control any individual project's budget - that authority stays with the project manager.
• D (PMO): The PMO provides governance, standards, and support, but does not own or control individual project budgets.

Memory tip: Think of the word "projectized" as meaning the project is king - so the project manager rules everything on that project, including the budget, schedule, and resources.

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