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OrganizationalStructureAhmadRamzeyahReema
Managementorganization
Definition:Managementstructureestablishestherelationshipbetweentheprojectparticipants,togetherwithdefiningtheirduties,responsibilitiesandlinesofauthorityandlinesofcommunication.OrganizationStructureTypesOfOrganizationStructure:FunctionalDivisionalMatrixTheDiagramrepresentingtheconnectionsbetweenthevariousdepartmentswithinanorganizationProvidesinformationaboutthevarioustasksperformedwithinanorganizationandtheformallinesofauthoritybetweenthem.TheBasicDimensionsofOrganizationsHierarchyofAuthority:aconfigurationofthereportingrelationshipswithin organizations(i.e.,whoreportstowhom) Tallorganizations-havemanylevelsinthehierarchy Flatorganizations-havefewlevelsinthehierarchyTheBasicDimensionsofOrganizationsDivisionofLabor:processofdividingthemanytasksinanorganizationintospecializedjobs -themoretasksaredividedintoseparatejobs,themorethosejobsarespecializedand
sothenarrowertherangeofactivitiesTheBasicDimensionsofOrganizationsSpanofControl:thenumberofsubordinatesinanorganizationwhoarerequiredtoreporttoeachmanage
Widespan-manysubordinatesreporttoamanager -typicalofflatorganizations
Narrowspan-fewsubordinatesreporttoamanager -typicaloftallorganizationsTheBasicDimensionsofOrganizationsChiefExecutiveTallhierarchyRelativelynarrowspanofcontrolTheBasicDimensionsofOrganizationsChiefExecutiveFlathierarchyRelativelywidespanofcontrolFunctionalAlsocalledTraditionalorganizationstructure.Basedonthesub-divisionofdisciplinesintoseparatedepartmentstogetherwithverticalhierarchyverticallinesofauthorityObjectiveistoemphasizetechnicalexcellence.FunctionalDepartmentsFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationProjectCoordinationRedboxesrepresentstaffengagedinprojectactivitiesAdvantagesofFunctionalOrganizationSimpleLinesofcommunicationwithindepartmentarewellestablishedClearlydefinedresponsibilityandauthorityforworkwithinthedepartmentsDisadvantagesofFunctionalOrganizationNoSinglepointofresponsibilityasprojectscopemovesfromonedepartmenttoanotherdepartmentleadingtocoordinationchaosItoffersexcellentfacilitywithinitsowndepartment;butforamulti-disciplinedprojectswhichcallsforinteractionwithotherdepartmentthenthesystemmaybelackingDisadvantagesofFunctionalOrganizationLengthenthelinesofcommunicationandslowdowntheresponsetimeFormallineofcommunicationisthroughthefunctionalmanagersCompetition&conflictbetweenfunctionaldepartmentsDepartmentworkmaytakepriorityoverprojectworkSuitabilityThefunctionalorganizationistheprimaryclientTheprojectissmallDivisionalOrganizationalStructurePositionsaregroupedaccordingtosimilarityofproducts,services,ormarkets.Therearethreetypesofdivisionalstructure.ProductStructureGeographicStructureCustomerStructureProduct
Organizational
Structure
Productstructuregroupsemployeestogetherbaseduponspecificproductsproducedbythecompany.Anexampleofthiswouldbeacompanythatproducesthreedistinctproducts,"producta","productb",and"productc".Thiscompanywouldhaveaseparatedivisionforeachproduct.ProductstructurecharacteristicsSimilartothefunctionalorganizationstructureexceptallthedepartmentsarededicatedtotheproduct/projectTheProjectManagerhashighlevelofauthoritytomanageandcontroltheprojectresourcesSelfcontainedunitwithinowntechnicalstaffandadministration4-22ProductStructureVicePresidentSalesandMarketingVicePresidentResearch&DevelopmentVicePresidentMaterialsManagementCEOVicePresidentFinanceCannedSoupsDivisionPDMFrozenVegetableDivisionPDMFrozenEntreesDivisionPDMBakedGoodsDivisionPDM4-1924FinanceProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesProductionEngineeringAccountingSales&MarketingHumanResourcesChiefExecutiveOfficerProductAProductB
AdvantagesofProduct/Projectstructure
Relativelysimplemeansofworkingonaproject.Conflictingresponsibilitiesareminimized.AccountabilityisclearlyplacedinonepersonPMhasfullauthorityoverprojectSimplifiedcoordinationacrossfunctionsHighlevelofcommitmenttoprojectschedule,technicalandcostgoals
AdvantagesofProduct/ProjectStructure
StrongorientationtocustomerrequirementsRapidreactiontimeduetoabilitytomakeswiftdecisionsaccurateperformancemeasurementDisadvantagesofaproduct/ProjectstructureLackof“bigpicture”companywideorientationDuplicationofeffortincreasesorganizationalcostsDifficulttoshareindividuals/expertiseacrossprojectsTendencytoretainpersonnellongerthanneededUncertaintyaboutjobaftertheprojectSuitabilityLargeprojectsLong-termprojects“Crash”projects–emergencyresponseProjectsthatchangeintopermanentfunctionalorganizations
matrixorganizationalStructureMatrixStructuresThematrixorganizationalstructureisoneinwhichfunctionalandstaffpersonnelareassignedtobothabasicfunctionalareaandtoproductmanagerThematrixformisintendedtomakethebestuseoftalentedpeoplewithinafirmbycombiningtheadvantagesoffunctionalspecializationandproduct-projectspecialization
MatrixStructuresThisstructureisonewherethereisacombinationoffunctionalanddivisionalstructureatthesametimeTwo‘chainsofcommand’,oneverticalandonehorizontal
MatrixStructuresAmatrixisahighlyflexibleformthatisreadilyadaptabletochangingcircumstances.Matrixstructuresrelyheavilyoncommitteeandteamauthority.Somecompaniesusethematrixorganizationasatemporarymeasuretocompleteaspecificproject.TheendoftheprojectusuallymeanstheendofthematrixSuitabilityModeratepriority,moderatesizeprojectsProjectswhereefficiencyisparamountneedWhenprojectactivitiescloselycorrelatewiththoseinsidethefunctionalorganizationMatrixStructureAdvantagesdecentralizeddecisionmakingstrongprojectcoordinationflexibleuseofhumanresourcesefficientuseofsupportsystemsDisadvantagesRoleconflict,ambiguitypotentialconfusionoverauthority&responsibilityincreasedpotentialforinterpersonalconflictsTheMatrixStructureDescriptionCombinestwoformsofdepartmentalizationfunctionalproductBreaksunitofcommandDualchainofcommandStrengthsFacilitatescoordinationComplexandindependentactivitiesBettercommunicationStrengths(cont.)MoreflexibilityEfficientallocationofspecialistsEconomiesofscaleWeaknessesConfusioncreatedStressplacedonworkersIncreasedambiguityUnclearreportingrelationshipsPowerstrugglesRoleconflictsUnclearexpectationsChoosingastructureSizeofprojectStrategicimportanceNovelty,needforinnovationNeedforintegration(#depts.involved)Environmentalcomplexity(#ofexternalinterfaces)Budget,timeconstraintsStabilityofresour
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