Learning Objectives
The characteristics of the organization structures:
- Functional
- Line & Staff
- Project
- Matrix
The advantages and disadvantages of each
Functional-Type Organization
Used in businesses that sell and produce standard
products.
Groups consist of individuals performing the same
function.
Periodically undertake in-house projects.
Team members can be assigned to the project.
Team members continue regular functional jobs.
Project manager does not have complete authority
over team.
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Project-Type Organization
Used in companies in the project business, not
selling products.
Work on multiple projects at a time.
Project team is dedicated to one project.
Project manager has complete authority over team.
Each project team tends to be isolated.
Matrix-Type Organization
A mix of functional and project organization
structures.
Used in companies that work on multiple projects
at a time.
Provides project and customer focus.
Retains functional expertise.
Individuals can be assigned to various types of
projects.
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Matrix-Type Organization
(Cont.)
Both project managers and functional managers
have responsibilities.
The Project Manager is the intermediary between
customer and company.
The Functional Manager decides how tasks will
be accomplished.
Functional Organization
Advantages
Reduces duplication and overlap of activities.
Provides specialization and functional excellence.
Functional Organization
Disadvantages
Can be insular.
Teamwork is not emphasized.
Decisions may be parochial.
Structure can slow communication, problem
solving and decision making.
Lack of customer focus.
Stronger allegiance to function than project.
Project Organization
Disadvantages
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Matrix Organization
Disadvantages
Team members have a dual reporting relationship.
A proper balance of power must be established
between project and functional managers.
Conflicts regarding priorities can arise between
managers.
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