Genavie Solano 1 Project Management a A range of organizational structures exist within which projects can be managed. Assess the extent to which a matrix structure might be preferable to a functional structure from the perspective of effective project management.
Types of Organizational Structure One of the most important tasks that business managers and owners face is the formation of an organizational structure as it determines the future of a company. This task is challenging to managers, but its benefits to the company are long-term.
Organizational structure is best understood when illustrated in an organizational chart Google organizational structure term paper details the flow of project tasks to be completed by team members. It is also important for companies to choose the right organizational structure to operate at peak performance.
Below is the diagram of functional organization structure. Figure 0 Functional Organization Structure. For example, Figure 1 shows a basic arrangement of functional organization structure where the four divisions of an entity are operations department, marketing department, research and development department and finance department.
This type of organizational structure is effective for small to medium-sized organizations where the performance of each department depends on the skill and ability of assigned employees to finish a project.
Its simplicity allows employees to understand project tasks with clear lines of command from managers. On the other hand, one of the disadvantages of this type of organizational structure is the constraint on coordination and communication among departments as employees focus on specific tasks only within their department.
In large organizations, coordination is often more complex across functional departments due to the number of employees as well as the number of duties.
Figure 2 Matrix Organization Structure.
Retrieved from Modern Management of Small Businesses 3 This type of organizational structure is called a matrix structure. To understand the concept of matrix organization structure, it is important to know the structure of a divisional organization.
A divisional type of organization structure has parallel divisions where each is in charge of a certain product or service, a demographic, or a geographic area.
In Figure 2, the firm adapts both functional and divisional organization structure. Its departments are product-based division and geographies of the organization. This formation is very useful for multinational companies with a complex nature of business because it helps more on segregation of duties among employees.
International organizations are often the users of this type of organization structure since they develop multiple product groups.
In project management, there are many reasons why a matrix structure is more preferable to use than a functional structure. For instance, conflict in communication in a functional structure of organization increases as a company creates more functional groups upon project management.
In contrast, employees in a matrix structure of an organization have constant communication with members of different areas, which allows for information and resources to pass through more fluidly Guzman Hence, communication is easier in a functional structure because the matrix structure allows a project team to meet the goals better and deal with difficult challenges.
Moreover, matrix structure is expensive to maintain as it requires allotment 4 of budget to many departments compared to a functional structure of organization.
Overhead costs also increase because of salary payment to larger number of employees. Purpose of Projects Projects are unique, transitory endeavors carried out to meet a desired result Association for Project Management Hence, projects are activities that aim to bring about change and project management assists to deal with such change.
Projects are undertaken for a number of reasons: Typical examples of a project include the launching of a new product or service, creation of a new service for internal use of an organization, construction of a building or acquisition of real properties, charity mission after a natural disaster; or expansion into a new line of business.
For a project to gain success, project management is an essential tool that managers can use to meet all the underlying goals of a certain project and to create a connection to stakeholders.with at least one of the words. without the words.
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Organizational Structure. Summary of the issue. Our organizational structure strongly influences what we do, how we do it, and our impact on the world. Syllabus for final term exam spring Syllabus for Marketing.
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