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Organizational Structure

The document discusses different organizational structures, including: - Dynamic organizations that rapidly restructure due to changing environments, markets, technology, and customer demands. - Traditional/functional organizations with departments led by functional managers, which can cause integration and scheduling problems. - Projectized organizations where project managers have direct authority over resources. - Matrix organizations that blend functional and projectized characteristics on a spectrum, with stronger matrices giving project managers more authority.

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tkn5520
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133 views11 pages

Organizational Structure

The document discusses different organizational structures, including: - Dynamic organizations that rapidly restructure due to changing environments, markets, technology, and customer demands. - Traditional/functional organizations with departments led by functional managers, which can cause integration and scheduling problems. - Projectized organizations where project managers have direct authority over resources. - Matrix organizations that blend functional and projectized characteristics on a spectrum, with stronger matrices giving project managers more authority.

Uploaded by

tkn5520
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Organizational Structure

• Dynamic Organization:
– WHAT: Rapid restructuring
• WHY: Changing environment
– BECAUSE OF:
» Market competitiveness
» Technology changes
» Customer demands
» ???
Organization Changes
• Organization
– Involves Human and Non-human Resources
– Sociotechnical issues
• Changes from situation to situation
• High standardization of performance
• High manpower utilization
• Specialization of work
Lower employee attitude & motivation
Work Flow
Accountability = Authority + Responsibility

Project Manager Functional Manager

Denial
Blames
Responsibility
Interaction
Proactive
Organization Structure
Traditional/
Projectized
Functional

Organizational Structure can be characterized as spanning


a spectrum from Functional to Projectized, with a verity of
structure in between
Traditional Organization
CEO

Engineering Operation Financial


Division

Department

Section

Functional
Responsibility
Traditional Organization
• All project flow through Functional Manger
• Technical specialist
• Integration is a major problem
• Conflicts ; struggle of power b/w groups
• Top management focused and chain of
command
• Difficult to meet schedules
Departmental Project Management
Division Manager

Department"A" Department "B" Department "C"

Project Leader Project Leader Project Leader

Conflicts are resolved through integration using


•Rules and procedures
•Planning process
•Hierarchical referral
•Direct contact
Line Staff Organization
Division Manager

Project Manager

Department Manager Department Manager

Give direct responsibility to the Project Manager


Alt #1: Project manager only monitor
Alt #2: Project manager has more authority; usually occurs earlier sages of
matrix project management
Pure Product Organization
General Manager

Product "A" Product "B" Product "C"


Manager Manager Manager

Engineering Manufacturing Engineering Manufacturing Engineering Manufacturing

Repetition of work
No interaction
Lack of career growth opportunity
Line Authority
Control require at top level
Strong communication
Good reaction/ response time
Flexibility in time, cost and other tradeoffs
Upper management === decision making
Interface become easier b/c of small size
Matrix Organization
General Manager

Engineering Operations Finanace Other

Proj. Mgr. X

Proj. Mgr. X

Proj. Mgr. X
Give
Matrix Organization
• A blend of functional and projectized
characteristics
• Weak matrix ==> more functional
• Strong matrix ===> more projectized; Full
time project managers have more authority

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