Organizations are complex collections of human beings. The project organization is normally housed inside of its host enterprise envelope and draws much of its energy and resource from that mother organization. The issue of resource ownership is one of the most contentious management decisions in project organizational design. In the formal organizational model, functional managers maintain formal ownership of their resources and allocate them to the project, hopefully on the agreed schedule. As team size grows beyond the optimum, the management processes for team coordination and work responsibilities grows. Physical housing locations for the project team are a common issue in a matrix-type structure. Projects represent one of the best-known organizational breeding grounds for conflict given their complex interrelationships among the organizational groups. A clear definition regarding what constitutes a virtual organization is still in the formulation stage and therefore varied. Every project is linked to some host organization and the project work environment is impacted by that external culture.