CAPM Practice Question: Project Management Fundamentals and Core Concepts
What is the main advantage of a projectized organization structure?
⚠ Common exam trap
CAPM often tests the trade-off between PM authority and resource efficiency — candidates pick 'efficient resource sharing' because it sounds like an advantage, but that is a matrix/functional benefit, not projectized.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
High level of authority for the project manager.
In a projectized organization, the project manager has the highest level of authority — team members report directly to the PM, who controls the budget, resources, and priorities. This structure eliminates competing functional priorities and enables fast decision-making, which is the primary advantage. The trade-off is higher cost and reduced resource sharing across projects.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Lower administrative costs.
Why it's wrong here
Projectized structures raise administrative costs because each project maintains its own duplicated staff, facilities and management overhead rather than sharing them. It is tempting because a single project manager reduces some coordination effort, but overall administration is heavier than in functional organisations.
- ✗
Efficient resource sharing between projects.
Why it's wrong here
Projectized structures duplicate resources across projects, since each project holds its own dedicated team rather than drawing from a shared pool. It is tempting because colocated teams appear to share knowledge well, but efficient resource sharing is the hallmark of a matrix or functional structure instead.
- ✗
Clear career path for team members.
Why it's wrong here
Projectized structures give the project manager full authority over dedicated staff, but career progression typically stalls because team members lack a functional home once the project ends. It is tempting because dedicated teams do build deep project expertise, yet that is not the structure's defining advantage.
- ✓
High level of authority for the project manager.
Why this is correct
In a projectized structure, team members report directly to the project manager, who controls resources and priorities. This grants the project manager a high level of authority, distinguishing it from functional or matrix structures where power is shared with functional managers.
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Last reviewed September 2026 · checked against the official PMI exam blueprint
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