Introduction
The design of a company affects every aspect of the business such as the way its members communicate, how decisions are made, and how the work is delegated, etcetera (Dictionary.com, 2006). This layout is known as the organization structure formally defined by Wikipedia (2006) as, "the way in which the interrelated groups of an organization are constructed. From a managerial point of view the main concerns are ensuring effective communication and coordination." In respects to project management there are three primary organizational break downs they are functional structure, pure project structure, and matrix structure. We will take a look into each of these structures to better identify the similarities and differences between them.
Functional Structure
In a functional arrangement, power or status is defined by a vertical hierarchy. This structure clearly defines the roles and responsibilities of its members and the chain of command is plainly outlined. (Kerzner, 2003). Functional structure is seen in large organizations such as the central government, polices forces and the armed forces. Large businesses have continuous rolling programs of similar repetitive or semi-repetitive work and this structure is typically used to improve systems, procedures, methods or products within the company. Due to the repetitive nature of the functional structure people are able to build a variety of skills that they can use from one project to the next. Projects within this structure would commonly be handled internally rather than externally. (Cogeco, 2006). When modifying systems or methods within a business it is beneficial for the company to have in-house employees who have direct contact with the work to handle the ...
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...posite of functional and may be a little more costly then the other organizational break downs. The matrix structure best suits construction projects due to its high level of flexibility and adaptability. Knowing this information will give an organization direction in regards to which structure will best fit them.
References:
(2006). Module 4 Project Management Organizational Structures and Standards. Retrieved on December 16, 2006 from http://home.cogeco.ca/~pcreighton/PMWEB/Module%2004.htm
Kerzner, H. (2003). Project Management: A Systems Approach to Plan, Scheduling, and Controlling 8th Edition. John Wiley & Sons Inc.
Organization. (2006). Dictionary.com. Retrieved on December 17, 2006 from http://www.dictionary.com
Organizational Structures. (2006). Wikipedia the free online encyclopedia. Retrieved on December 17, 2006 from http://www.wikipedia.com
Gray, C., Larson, E. (2008). Project Management: The managerial Process. New York, NY: The McGraw-Hill Companies Inc.
Frame, J.D., Managing Projects in Organizations: How to Make the Best use of Time, Techniques and People, third ed., San Francisco: Jossey-Bass,112-117, 2003.
Organizational structure refers to the levels of management in a company. It mainly defines how job tasks are formerly divided, grouped and co-ordinated. The organizational structure of a company reflects its culture, management style and leader attitude which is adopted with the addition of the environment around in which it operates. It also determines how the roles, power and responsibilities are assigned, controlled and co-ordinated respectively, in-order to realize the flow of information between the different managerial levels. An organizational structure is important because it determines how the organization will be run in order to meet its aims and objectives, (Cunnee, 2008). He defines an organizational structure as the number of ways used in a business to set up division and specialization of labour focusing on maintaining co-ordination to achieve the same targets. An organisational structure may be flat or high and centralized or decentralized. In a centralized or small organization, the top layer of management has the power to make decisions for the company and has a tight control over the below divisions. In a decentralized or large organization, the decision making power is distributed to extent of the company and greater workload is divided and delegated downward. Some of the key elements which are required to design organizational structure are:
Kezner, H. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 6th. New York: John Wiley and Sons, Inc, 1998. Print.
Kuprenas, J. (2003). Implementation and performance of a matrix organization structure. International Journal of Project Management, 21, 51-62. Retrieved from CSU Global library article request.
An organization’s structure is crucial in deciding how tasks are managed or organized by employees and led by the top management. An organization’s structure provides a chance of untangling how the firm’s business is performing internally to ensure timely production of goods and services. When designing an organization’s structure, it is important to build it upon the vision and mission of the firm’s core objectives (Puffer, 2004). This kind of a structure will allow the set goals and initiatives to be met by the project scope. Thus, an organizational structure denotes how powers and responsibilities are allocated within the company, and work processes are carried out by members of the organization. The theme of this paper is to discuss the effects of Organizational structures on employees, Behavioral implications of different organizational designs and finally considering if there is a better structure in terms of its effects on its employees.
The purpose of this report is to describe the three traditional organisational structures and to describe two modern organisational designs. The highlighted structures are the Functional, Divisional and Matrix structures, along with the team and network structures. Illustrations of each structure will be provided as charts along with their advantages and disadvantages. This report will also mention how the contemporary environment has had an impact on organisational structures.
In an organization of any size or complexity, employees' responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart (see Figures 1a and 1b). The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets).
“Project management is the application of knowledge, skills, tools, and techniques to organisational and project activities to achieve the aims of an organisation through projects” (PMI, 2003).
An organisational structure defines how activities such as job allocation, synchronization and management are aimed at towards the achievement of organizational plans. An organization can be prearranged in diverse ways, in line with their purposes. The organogram of an organization will decide the modes in which it operates5. Organogram permits the articulated allocation of responsibilities for different functions and processes to different entities such as the section or individual. Organizational structure helps to provide the base on which typical operating procedures and customs rest. It also determines the participation of individuals decision-making processes, and their views in profiling the organization’s actions. A structure is the framework around which the company is planned, the norms and standards which will keep it functioning. It is the operating manual that gives direction on how to best run the organization. A well-established
An organizations structure is identifiably made up of an array of different individuals who have aspired to be valuable when giving out their opinions, ideas and talents that bring out the best in any organization when it comes to making structural changes.
The importance of project management cannot be overstated. For starters it is important that project management provides a flexibility and structure. Project management creates flexible and well-structured business organizations by combining two organization needs perfectly. The organizational needs are determined by making the organization adaptable due to constant changes in the business, secondly organization is extremely important for creating structure. What is most important is that
Understanding the structure of an organization plays a vital role in laying the blueprint for how a company will be managed and organized. It provides a well-defined framework that outlines the roles and responsibilities of each employee in a particular company. It shows how each employee interacts and works one another in achieving the goals of a company. In other words, organizational structure is a reflection of the working relationships that govern the workflow of the company. It has a profound effect on a company’s structural dimensions, which includes formalization, specialization, hierarchy and centralization.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
An organizational structure states how task allocation for different department, coordination and supervision are directed towards the achievement of organizational goal. It can also be considered as keeping eyes through which individuals see their organization and its environment.