Since authority relationships are overlapping with possibilities of conflicts, informal relationships between project manager and departmental managers (functional managers) become more important than formal prescription of authority.An organisation where staff departments have authority over line personnel in narrow areas of specialization is known as functional authority organisation.

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This is communication which originates at the lower level of the employment hierarchy and is then communicated up through the line.The Global Organisational Excellence Congress offers a unique and extensive learning, sharing and networking opportunity.(ii) Staff or functional authority organisational structure.