Organizational Structure(PPT42).ppt

Organizational Structure,AhmadRamzeyahReema,Management organization,Definition:Management structure establishes the relationship between the project participants,together with defining their duties,responsibilities and lines of authority and lines of communication.,Organization Structure,Types Of Organization Structure:FunctionalDivisionalMatrix,The Diagram,representing the connections between the various departments within an organization Provides information about the various tasks performed within an organization and the formal lines of authority between them.,The Basic Dimensions of Organizations,Hierarchy 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 hierarchy,The Basic Dimensions of Organizations,Division of Labor:process of dividing 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 activities,The Basic Dimensions of Organizations,Span of Control:the number of subordinates in an organization who are required to 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 organizations,The Basic Dimensions of Organizations,The Basic Dimensions of Organizations,Functional,Also called Traditional organization structure.Based on the sub-division of disciplines into separate departments together with vertical hierarchyvertical lines of authorityObjective is to emphasize technical excellence.,Functional Departments,Functional Organization,Functional Organization,Functional Organization,Project Coordination,Red boxes represent staff engaged in project activities,Advantages of Functional Organization,SimpleLines of communication within department are well establishedClearly defined responsibility and authority for work within the departments,Disadvantages of Functional Organization,No Single point of responsibility as project scope moves from one department to another department leading to coordination chaos It offers excellent facility within its own department;but for a multi-disciplined projects which calls for interaction with other department then the system may be lacking,Disadvantages of Functional Organization,Lengthen the lines of communication and slow down the response timeFormal line of communication is through the functional managersCompetition&conflict between functional departmentsDepartment work may take priority over project work,Suitability,The functional organization is the primary clientThe project is small,Divisional Organizational Structure,Positions are grouped according to similarity of products,services,or markets.There are three types of divisional structure.Product StructureGeographic StructureCustomer Structure,Product 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 product c.This company would have a separate division for each product.,Product structure characteristics,Similar to the functional organization structure except all the departments are dedicated to the product/projectThe Project Manager has high level of authority to manage and control the project resources Self contained unit within own technical staff and administration,4-,22,Product Structure,4-19,24,Finance,Production,Finance,Engineering,Accounting,Sales&Marketing,Human Resources,Production,Engineering,Accounting,Sales&Marketing,Human Resources,Chief Executive Officer,Product A,Product B,Advantages of Product/Project structure,Relatively simple means of working on a project.Conflicting responsibilities are minimized.Accountability is clearly placed in one personPM has full authority over projectSimplified coordination across functionsHigh level of commitment to project schedule,technical and cost goals,Advantages of Product/Project Structure,Strong orientation to customer requirementsRapid reaction time due to ability to make swift decisionsaccurate performance measurement,Disadvantages of a product/Project structure,Lack of“big picture”companywide orientationDuplication of effort increases organizational costsDifficult to share individuals/expertise across projectsTendency to retain personnel longer than neededUncertainty about job after the project,Suitability,Large projectsLong-term projects“Crash”projects emergency responseProjects that change into permanent functional organizations,matrix organizational Structure,Matrix Structures,The matrix organizational structure is one in which functional and staff personnel are assigned to both a basic functional area and to product manager The 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 Structures,This structure is one where there is a combination of functional and divisional structure at the same timeTwo chains of command,one vertical and one horizontal,Matrix Structures,A matrix is a highly flexible form that is readily adaptable to changing circumstances.Matrix structures rely heavily on committee and team authority.Some companies use the matrix organization as a temporary measure to complete a specific project.The end of the project usually means the end of the matrix,Suitability,Moderate priority,moderate size projectsProjects where efficiency is paramount needWhen project activities closely correlate with those inside the functional organization,Matrix Structure,Advantagesdecentralized decision makingstrong project coordinationflexible use of human resourcesefficient use of support systems,DisadvantagesRole conflict,ambiguitypotential confusion over authority&responsibilityincreased potential for interpersonal conflicts,The Matrix Structure,DescriptionCombines two forms of departmentalizationfunctionalproductBreaks unit of commandDual chain of commandStrengthsFacilitates coordinationComplex and independent activitiesBetter communication,Strengths(cont.)More flexibility Efficient allocation of specialistsEconomies of scale WeaknessesConfusion createdStress placed on workersIncreased ambiguityUnclear reporting relationshipsPower strugglesRole conflictsUnclear expectations,Choosing a structure,Size of projectStrategic importanceNovelty,need for innovationNeed for integration(#depts.involved)Environmental complexity(#of external interfaces)Budget,time constraintsStability of resource requirementsSmall project focused entirely on the functional departmentLarge project involving many different departments.,CONCLUSION,Functional Formfocus is on in-depth application of a technologyMost of the talent/expertise resides in one functional area,CONCLUSION,Product Formfirm engages in a large number of similar projects(construction)one-time,highly specific unique tasks that is not appropriate for a single functional area(product development:marketing,design engineering,manufacturing engineering,quality engineering),CONCLUSION,Matrix Formintegration of inputs from several functional areasinvolves reasonably sophisticated technologyEmployees effectively have two bossesConflicts with the principle of unity of commandtechnical specialists are not required full-time,