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Management Organizaton Structure

Essay by   •  March 12, 2012  •  Essay  •  1,093 Words (5 Pages)  •  1,438 Views

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Some organizations, such as a high school volunteer club, exist to help people in need. Other organizations, such as a student council, exist to give students a voice at school. Business organizations exist to earn profits. To meet their goals, they organize their employees into some kind of structure. Companies adopt organizational structures to minimize confusion over job expectations. Developing an organized structure can help a project manager identify individual responsibilities while working on task activities coordinated by the project manager. Organizations structure themselves in various ways according to specialization, for example decision-making hierarchy. Each of these different types of organizational structures can be shown in an organizational chart. An organizational chart is a visual representation of a business's organizational structure. It shows what kind of work will be involves in each structure.

Selecting the structure of an organization is important when starting a project. A project structure should have unique characteristics clear understanding of the project and various forms that has its own advantages and disadvantages. One objective of the structure is to reduce uncertainty and confusion that may take place in the initiation phase. This is important because the structure defines team member and project manager relationship, whether it is internal or an external environment.

This paper will compare and contrast the three primary project management structures: functional, matrix, and pure project. The paper will determine with reason that structure would be the best method to manage a project team, and provide rationale for decisions.

Primary Project Management Organization Structures

The organizational structure a company chooses depends on the nature of its business. Many factors affect the choice of organizational structure. The most important factors are the size of and service a business produce when working on different projects. A company's organizational structure most adapt as through company growth and different level of skills needed at each phase of the project cycle. For example, look at how the needs of Apple Computer have changed over time. Project management has three primary organization structures

Functional Structure

Functional organization is one of the oldest methods but remains the most success structures of the other two structures. The primary advantage of functional structure allows for functional specialization. One group of professional can devote its time to a specific project.

Organizing by functional structure can have some negative effects; also may hurt a company by creating managers whose scope is relatively narrow. Functional structures perform best when used for routine work functions.

Matrix Structure

Matrix organization is a project management structure that evolves recognition of inherent flaws in the functional and project structures. In a matrix structure, teams are form in which individuals report to two or more managers. One manager usually has functional expertise, whereas the other has more of a product or project orientation. According to Ebert and Griffin (2006), this structure was pioneered by the National Aeronautics and Space Administration (NASA) for use in implementing special programs. (pg. 188 para.1) The highly flexible form is readily adaptable to changing circumstances. The matrix structures definitely on team authority.

Companies that undertake large projects use the matrix structure. Boeing, for example, assign employees to

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