ABSTRACT
This chapter describes early management theories to clarify the origins of the project-oriented organization and then provides an overview on the different approaches to the organization, which performs projects as a central option of organizing business processes. The origins of the model of the project-oriented organization lay in organization theory and management studies. A seminal study done by Joan Woodward was based on the premise that industry organizations that design their formal organization structures to fit the type of production technology they are using are likely to be successful. In the functional line organization, a project is conducted within a single function and the line manager has all the authority for the project personnel, which comes from the single function. While traditional project management approaches are based on a mechanistic paradigm and emphasize detailed planning methods the project-oriented organization rather advocates a contemporary project management approach and culture.
