Course Project: Week 7

1
Organizational Structure for Playground Project

The Playground project would be executed by a project team comprising of people with different
expertise from different organizations who would be coming together to work on this project. Therefore it
is required that there is an effective and responsive organizational structure that is aligned with project
goals and objectives. For the Playground project, given that the company would be needing a variety of
different functional and technical skills, and that this is a one off project, and where a lot of dedicated time
is needed for the project to be successful, the best organizational structure for this project would be the
matrix structure, that would bring in the above required things while ensuring that the project gets
completed in an efficient manner. The matrix organizational structure brings together employees and
managers from different functional and technical departments, and if needed people from outside the
organization to work as a team towards accomplishing a goal. The rationale for choosing this structure is
leveraging the core company knowledge which is the functional employees with the expertise of project
contractors that are best in what they do, to come up with the best project.

Advantages of Matrix Organization

Advantages of the matrix structure that would help the project include
1. Efficient Information Exchange There is very effective communication in the matrix
organization due to which various stakeholders and departments work together and communicate
with each other frequently to solve issues. Efficient lines of communication enhance productivity
and allow for quick decision-making.
2. Increased Motivation and high energy levels There is participative style of working, and
where people are given freedom and responsibility due to which there is a high motivation and
team spirit. That contributes positively towards project success.
3. Valuable Expertise - When compared to other structures, the matrix structure allows for very
close working relationships, greater team involvement and better processes to capture ideas and
innovate within the project, where expertise across people is leveraged to come out with creative
and effective solutions for problems being faced.

Disadvantages of Matrix Organization

Course Project: Week 7

Disadvantages of the matrix structure that would need to be taken care of include
1. Confusion on how it works - One of the disadvantages of the matrix structure is that it can
result in internal complexity due to its dual reporting structure, due to which some employees may
become confused as to whom they should directly report to. The dual authority and
communication problems may cause miscommunication and ineffective managing can result in
employee dissatisfaction and low morale.
2. Expensive to Maintain - It can also be expensive to maintain the matrix structure as it has more
overheads due to two layers of management, due to which this is more costly than a simple
functional structure or a dedicated project team structure.
3. Competition for expertise As there are multiple projects going on parallel, there could be
unhealthy competition between managers within the company, and a project might not get the
expert or dedicated resources that it needs. Also, the competition for scarce resources may cause
hostility within the workplace and hinder production.