Final answer:
A project-oriented organization is where functional departments provide support for specialized teams focused on projects. This structure has become more common as businesses look for more flexibility and cross-functional cooperation within their operations to adapt to fast-paced changes.
Step-by-step explanation:
In a project-oriented organization, functional departments provide support for its teams. This structure is conducive to businesses where projects are the central focus and require specialized skills and focused management.
Organizational structures vary and evolve to meet the demands of the industries and environments in which they operate. Recent trends show a movement away from strict hierarchical business models towards more team-based, flat structures. The rise of project-oriented organizations is a response to the dynamic nature of project-based work, which often requires cross-functional collaboration and flexibility.
While large organizations like hospitals and government agencies might find themselves encumbered by bureaucracy, project-oriented businesses leverage the agility of smaller collaborative teams backed by functional departments. The functional departments in project-oriented firms play a supportive role, offering resources, expertise, and specialized services that enable project teams to function effectively within the larger organizational framework.