A functional organization is one where the functional managers have all the power. Here's an example: most software companies have the programmers reporting to a development manager, who is responsible for hiring/firing, reviews, salaries, and also assigning work to the developers. There's often someone with the title "project manager", but this person really only takes down notes at status meetings and does bookkeeping -- but has no actual authority to plan projects, assign work or manage changes. We call that role a project expeditor, and the person filling that role usually reports directly to the functional manager. Any power he or she has is explicitly delegated. All project management decisions need to be cleared with the functional manager, and the only "project management" tasks are simple administrative work. From the perspective of the PMP exam, this
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