What are the advantages and disadvantages of a functional organizational structure. Not to forget, the stage of growth it is at, and how you would want the authority to work. Organisational structure management essays essay sauce. Project organisation structure linkedin slideshare. What is meant by power and what are the major sources of power in organization. Advantages and disadvantages of organizational structures. Authority of project manager in project organization project organization is known as a grid or matrix organization because here, vertical flow of functional authority and responsibility is combined with the horizontal flow of project authority and responsibility. The team will perform project tasks and report to the project manager. The project manager has complete responsibility over the project and the team involve. Team members are familiar with each other since they work in the same area. Main disadvantages of functional organization structure. You dont often hear the term vertical organization structure.
Advantages to projectbased organisational structure. Communication, collaboration and decisionmaking are enhanced. The project organization, thus, is a complex structure that facilitates the coordination and integration of many project activities. Pdf an analysis of the main project organizational. Advantages and disadvantages of matrix modern organization.
Companies practicing od commit to continually evolving in order to face changes both inside and outside a company. Lets take a look at the advantages and disadvantages of each so you know what youre up against when you join a new structure. At below of the image, i also present the advantages and disadvantages of the organizational structure of geography. Right after the project has finished, the whole team will dissolve and all the resources will be released. There are several advantages and disadvantages of adopting a functional organizational structure. Projectized organizational structure has both advantages and disadvantages. These departments might be further divided, depending on a companys size and. If one comes across a horizontal organizational structure, then its natural to assume that there is also a countervailing vertical organizational structure. Pros and cons of functional organizational structure. These are a few disadvantages of a projectized organizational structure. The organizational structure examples are usually a subject of study so that there can be a perfect structure for a particular company. Despite having so many benefits of a work breakdown structure, there are a few cons. A feeling of insecurity among the employees is one of the limitations of matrix structure. You can collaborate with team members, it can do document sharing, it can manage project costs, its reporting abilities and it is intuitive to use.
Advantages and disadvantages of matrix modern organization structure better coordination and control adaptable to dynamic. An analysis of the main project organizational structures. The project manager has the full control of everything. Lack of power is an issue in a functional organizational structure, while absolute authority can be an issue in a projectized organization. Team working is improved as often they will have worked on other projects before. As a result the solution is not in changing the structure, but in updating the way we work. From the hierarchal organizational structure to flatter, less bureaucratic structures and the teamoriented matrix, all organizational structures have advantages and disadvantages in key areas. Organizational structures what are the advantages and the. The 6 key advantages and disadvantages of a matrix.
What is matrix organizational structure and what are its advantages. Project organization types advantages disadvantages. Absolute authority can make project manager arrogant. Departmentation refers to the formal structure of the organisation composed of various departments and managerial positions and their relationships to each other. This departmentalization allows greater operational efficiency because the employees have their skills and knowledge to be shared within the. Types of organisation structure with advantages and.
But it really comes down to what your organization needs. Organizational structure is the framework of reporting relationships in an organization. The importance of effective organizational structures in the battle for competitiveness. The functional organizational structure groups employees according to broad business activities, resulting in departments such as finance, marketing and production. In this article, we will discuss functional organizational structure and advantages and disadvantages of it compared with other structures. Types organisation structure with advantages and disadvantages. Also the project manager will be responsible for the development of the team members. It helps an organization decide how the authority passes on, how message communication happens. Organization structure influence project management. In a pure project organization, the project takes on a life of its own.
Here are the major disadvantages you must consider. After knowing its advantages of work breakdown structure, we will move on to the disadvantages of the work breakdown structure. The chart below shows an example of the organization of geographical structure adopted by the air asia management. The advantages and disadvantages of a hierarchical organizational structure involve communication, innovation, and collaboration.
Each employee will report to his direct functional manager. There tends to be concern among team members about life after the project ends. Wspolczesne trendy w zarzadzaniu projektami modern trends in project management. There must be strategies in place to deal with the potential negatives which like to occur under this structure. What advantages and disadvantages of the project team.
It is better for the project managers to know the influence of organizational structure on project management. Organizational structure and implementation planning process summary 9142011 a summary of the psn organizational structure and implementation planning process and lessons learned will be included in a blueprint document. Transparency is observed in this kind of projectized organizational structure. Project organization structure is found in industries with highly complex product systems, such as the aerospace. Our jobs as leaders is to help deliver the advantages and. Organizations choose their organizational structure based on many factors like. An employee can have one boss for projectrelated work but another for promotions and benefits.
There are different types of departmentation or organisational structure. Advantages of a projectized organizational structure the project team members directly report to the project manager which enables decision making faster. Explain the major advantages and disadvantages of power in detail. They also create uncertainty within the workplace, as workers may not know who needs to receive information about the work theyve done. The key advantages and disadvantages of matrix organizational. There are several types of corporate structures organizational structures, and organizations choose the one most suitable for them. Advantages, disadvantages, and factors affecting their selection article pdf available in procedia computer science 8.
The project team members directly reports to the project manager which makes it easier to resolve the issues and enables faster decision making. There are three common organizational structures, and project managers work in all of them. The purpose of the blueprint is to make available to entities similar to psn, in. Organizational structure business model, the creative process and governance for innovation project title towards a more innovative workplace project acronym innowork project reference. They know better hoe to utilize project capacity and time, how to utilize human and financial resources they know better. Organizational structure examples, types and advantages. A small business acknowledging that might embrace organizational development, commonly referred to in business as od. What are the advantages and disadvantages of a functional. If you want to learn more about organizational structure types in project management you should check out our. This is where the organization is divided into smaller groups based on its special functions such as it, finance or marketing. All of the companies define its organizational structure to determine the reporting relationships that will exist in the company. Advantages and disadvantages of functional organizational structure in this type of organization, the emphasis is on managing some functions wherever the function may be performed in the enterprise.
Because all of these three organizational structures has advantages and disadvantages. Project organizations advantages and disadvantages advantages to the projectized structure include the project managers opportunity for career progression. In this type of organizational structure people work in project as a team. These challenges are not about the structure or the strategy, they are about the way people work together in the matrix. He has the power over resources, assignments and budget. In a functional organization structure, the project. Disadvantages of a projectized organizational structure. Additionally, this report examines best practices gleaned from the literature and from organizations that have successfully implemented and maintained such structures. Advantages disadvantages organizational structures.
A functional organization structure is one of the most common organizational structures which divides the company into departments such as marketing. Which type of organizational structure has more focus on the projects. For example, the total work activities of an enterprise may be divided into various functions like purchases, production, marketing, finance. If no effort is made to deal with the negativity, then a company becomes more likely to fail because. The following are the common forms of modern organizational structure implemented in many. Advantages and disadvantages of the matrix project organization advantages 15. In this geographic structure, units and divisions based on the places and the geographical area. The key advantages and disadvantages of matrix organizational structures. Advantages to project based organisational structure the. Which organizational structure works the best for the companys overall sustainability. A project structure can take on various forms with each form having its own advantages and disadvantages.
Pros and cons of 3 project organizational structures. In the functional structure, such as shown in the following facebook organizational chart, functions are separated into different groups, resulting in some defects. A functional organizational structure has several advantages and disadvantages when it comes to managing projects. Functional organizational structure in a functional organization structure, the project manager and all the resources work in the same company division, such as the sales and marketing department. Advantage more specialized in certain fields, communication is excellent because of the knowledge one has about the function of the job, easier to work as a team to get better results. Which organizational structure gives the most authority to the project managers. In this sense we will analyze the ganization, clear project organization and combined or matrix system. The power derived from the source of the structure of an organization is based on the strategic contingencies. A functional organization is the most common type of organizational structure.
Disadvantages of a pure project organization cont pure. Strong communication line can be established inside the project team. Matrix organizational structure of a construction company example ganesh 20 8 table 4 advantages and disadvantages of matrix organizational structure advantages disadvantages takes advantage of both the function and the project or the department structures leading to flexibility in. Other organizational structures businesses can consider include traditional, functional, product, flat, flatarchy and halocratic. A project organisation is one, in which a project structure is created as a separate unit or division within a permanent functional structure. Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out.
As a business owner, you could have several project groups. Pdf this note introduces basic principles of organizational design and the advantages of several common organizational structures. A project organizational structure enables businesses to dedicate resources to complete a specific initiative together. These relationships can usually be diagramed in the form of an or ganization chart. Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out in a pure project organization, the project takes on a life of its own there tends to be concern among team members about life after the project ends conflict frequency occurs between projects over allocation of resources and. Organizational structure and implementation planning. Main advantages and disadvantages of the three generic project organizational structures structure advantages disadvantages functional there is no need to negotiate and compete with other areas for resources. In addition, because good communication exists within the project work, the team members tend to be more committed to, and excel in, their responsibilities. Advantages and disadvantages of project organization answers. The importance of effective organizational structures in.
138 226 588 751 210 58 1023 1168 1328 115 957 284 1097 596 776 705 693 1459 1306 483 787 793 513 489 363 944 731 1256 1084 1390 1 854 755 110 786 1083 784 136 565 1408 1193 845 1162 1468 817 1204 1321 485