Organizational Structures Essay

799 Words4 Pages
Introduction The design of a company affects every aspect of the business such as the way its members communicate, how decisions are made, and how the work is delegated, etcetera (Dictionary.com, 2006). This layout is known as the organization structure formally defined by Wikipedia (2006) as, "the way in which the interrelated groups of an organization are constructed. From a managerial point of view the main concerns are ensuring effective communication and coordination." In respects to project management there are three primary organizational break downs they are functional structure, pure project structure, and matrix structure. We will take a look into each of these structures to better identify the similarities and…show more content…
If there happened to be a fluctuation in the workload this arrangement is unable to easily respond to the changes. Functional output tends to be the primary objective of this type organization. Functional people stick to their own specialization and avoid being involved in cross-functional activities. (Wikipedia, 2006).
Pure Project Structure A pure project organization is a self contained section or unit within an otherwise purely functional structure. (Cogeco, 2006). In this organizational structure the flow of communication channels through fewer people thus making it flexible and easily adaptable to change leaving room for innovation and evolution. According to the Cogeco Module (2006), "This type of structure is typically used for projects that are difficult to plan accurately and where resource requirement and provision levels cannot be accurately established beforehand." The project manager maintains complete line authority over the whole project (Kerzner, 2003). With informal lines of communication in place it is suggested that a more centralized direction is needed in this structure. Pure project structure may create a sense of competition between the various project teams so when project deadlines approach members may be likely to take shortcuts to maintain good performance records. If this happens then the
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