1、Organizational StructureAhmadRamzeyahReema Management organizationDefinition:Management structure establishes the relationship between the project participants,together with defining their duties,responsibilities and lines of authority and lines of communication.Organization StructureTypes Of Organi
2、zation Structure:oFunctionaloDivisionaloMatrixThe Diagramorepresenting the connections between the various departments within an organizationo Provides information about the various tasks performed within an organization and the formal lines of authority between them.The Basic Dimensions of Organiza
3、tionsqHierarchy of Authority:a configuration of the reporting relationships withinorganizations(i.e.,who reports to whom)Tall organizations-have many levels in the hierarchyFlat organizations-have few levels in the hierarchyThe Basic Dimensions of OrganizationsqDivision of Labor:process of dividing
4、the many tasks in an organization into specialized jobs-the more tasks are divided into separate jobs,the more those jobs are specialized and so the narrower the range of activitiesThe Basic Dimensions of OrganizationsqSpan of Control:the number of subordinates in an organization who are required to
5、 report to each manageWide span-many subordinates report to a manager-typical of flat organizationsNarrow span-few subordinates report to a manager-typical of tall organizationsThe Basic Dimensions of OrganizationsChiefExecutiveTall hierarchyRelatively narrowspan of controlThe Basic Dimensions of Or
6、ganizationsChiefExecutiveFlat hierarchyRelatively widespan of controlFunctionaloAlso called Traditional organization structure.oBased on the sub-division of disciplines into separate departments together with vertical hierarchyovertical lines of authorityoObjective is to emphasize technical excellen
7、ce.Functional DepartmentsFunctional OrganizationFunctional OrganizationFunctional OrganizationProject CoordinationRed boxes represent staff engaged in project activitiesAdvantages of Functional OrganizationoSimpleoLines of communication within department are well establishedoClearly defined responsi
8、bility and authority for work within the departmentsDisadvantages of Functional OrganizationoNo Single point of responsibility as project scope moves from one department to another department leading to coordination chaos oIt offers excellent facility within its own department;but for a multi-discip
9、lined projects which calls for interaction with other department then the system may be lackingDisadvantages of Functional OrganizationoLengthen the lines of communication and slow down the response timeoFormal line of communication is through the functional managersoCompetition&conflict between fun
10、ctional departmentsoDepartment work may take priority over project workSuitabilityoThe functional organization is the primary clientoThe project is smallDivisional Organizational StructureoPositions are grouped according to similarity of products,services,or markets.There are three types of division
11、al structure.Product StructureGeographic StructureCustomer StructureProduct Organizational Structure Product structure groups employees together based upon specific products produced by the company.An example of this would be a company that produces three distinct products,product a,product b,and pr
12、oduct c.This company would have a separate division for each product.Product structure characteristicsoSimilar to the functional organization structure except all the departments are dedicated to the product/projectoThe Project Manager has high level of authority to manage and control the project re
13、sources oSelf contained unit within own technical staff and administration4-22Product StructureVice PresidentSales and MarketingVice President Research&DevelopmentVice President Materials ManagementCEOVice President FinanceCannedSoupsDivisionPDMFrozenVegetableDivisionPDMFrozenEntreesDivisionPDMBaked
14、GoodsDivisionPDM4-1924FinanceFinanceFinanceProductionProductionFinanceFinanceEngineeringEngineeringAccountingAccountingSales&Sales&MarketingMarketingHuman Human ResourcesResourcesProductionProductionEngineeringEngineeringAccountingAccountingSales&Sales&MarketingMarketingHuman Human ResourcesResource
15、sChief Executive OfficerChief Executive OfficerProduct AProduct AProduct BProduct BAdvantages of Product/Project structureoRelatively simple means of working on a project.Conflicting responsibilities are minimized.oAccountability is clearly placed in one personoPM has full authority over projectoSim
16、plified coordination across functionsoHigh level of commitment to project schedule,technical and cost goalsAdvantages of Product/Project StructureoStrong orientation to customer requirementsoRapid reaction time due to ability to make swift decisionsoaccurate performance measurementDisadvantages of a
17、 product/Project structureoLack of“big picture”companywide orientationoDuplication of effort increases organizational costsoDifficult to share individuals/expertise across projectsoTendency to retain personnel longer than neededoUncertainty about job after the projectSuitabilityoLarge projectsoLong-
18、term projectso“Crash”projects emergency responseoProjects that change into permanent functional organizationsmatrix organizational Structure Matrix StructuresoThe matrix organizational structure is one in which functional and staff personnel are assigned to both a basic functional area and to produc
19、t manager oThe matrix form is intended to make the best use of talented people within a firm by combining the advantages of functional specialization and product-project specialization Matrix StructuresqThis structure is one where there is a combination of functional and divisional structure at the
20、same timeqTwo chains of command,one vertical and one horizontalMatrix StructuresoA matrix is a highly flexible form that is readily adaptable to changing circumstances.oMatrix structures rely heavily on committee and team authority.oSome companies use the matrix organization as a temporary measure t
21、o complete a specific project.The end of the project usually means the end of the matrixSuitabilityqModerate priority,moderate size projectsqProjects where efficiency is paramount needqWhen project activities closely correlate with those inside the functional organizationMatrix StructureAdvantagesqd
22、ecentralized decision makingostrong project coordinationoflexible use of human resourcesoefficient use of support systemsDisadvantagesoRole conflict,ambiguityopotential confusion over authority&responsibilityoincreased potential for interpersonal conflictsThe Matrix StructureoDescriptionnCombines tw
23、o forms of departmentalizationofunctionaloproductnBreaks unit of commandnDual chain of commandoStrengthsnFacilitates coordinationnComplex and independent activitiesnBetter communicationoStrengths(cont.)nMore flexibility nEfficient allocation of specialistsnEconomies of scale oWeaknessesnConfusion cr
24、eatednStress placed on workersnIncreased ambiguitynUnclear reporting relationshipsnPower strugglesnRole conflictsnUnclear expectationsChoosing a structureoSize of projectoStrategic importanceoNovelty,need for innovationoNeed for integration(#depts.involved)oEnvironmental complexity(#of external inte
25、rfaces)oBudget,time constraintsoStability of resource requirementsoSmall project focused entirely on the functional departmentoLarge project involving many different departments.CONCLUSIONo Functional Formnfocus is on in-depth application of a technologynMost of the talent/expertise resides in one f
26、unctional area CONCLUSIONoProduct Formn nfirm engages in a large number of similar firm engages in a large number of similar projects(construction)projects(construction)n none-time,highly specific unique tasks that is one-time,highly specific unique tasks that is not appropriate for a single functio
27、nal area(not appropriate for a single functional area(product development:marketing,design product development:marketing,design engineering,engineering,n nmanufacturing engineering,quality manufacturing engineering,quality engineering)engineering)CONCLUSIONoMatrix FormMatrix Formnintegration of inpu
28、ts from several functional integration of inputs from several functional areasareasninvolves reasonably sophisticated involves reasonably sophisticated technologytechnologyn nEmployees effectively have two bossesEmployees effectively have two bossesn nConflicts with the principle of unity of Conflicts with the principle of unity of commandcommandntechnical specialists are not required full-technical specialists are not required full-timetime
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