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OrganizationalStructureAhmadRamzeyahReemaOrganizationalStructureAhmad1
Managementorganization
Definition:Managementstructureestablishestherelationshipbetweentheprojectparticipants,togetherwithdefiningtheirduties,responsibilitiesandlinesofauthorityandlinesofcommunication.
ManagementorganizationDefiOrganizationStructureTypesOfOrganizationStructure:FunctionalDivisionalMatrixOrganizationStructureTypesOfTheDiagramrepresentingtheconnectionsbetweenthevariousdepartmentswithinanorganizationProvidesinformationaboutthevarioustasksperformedwithinanorganizationandtheformallinesofauthoritybetweenthem.TheDiagramTheBasicDimensionsofOrganizationsHierarchyofAuthority:aconfigurationofthereportingrelationshipswithin organizations(i.e.,whoreportstowhom) Tallorganizations-havemanylevelsinthehierarchy Flatorganizations-havefewlevelsinthehierarchyTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsDivisionofLabor:processofdividingthemanytasksinanorganizationintospecializedjobs -themoretasksaredividedintoseparatejobs,themorethosejobsarespecializedandsothenarrowertherangeofactivitiesTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsSpanofControl:thenumberofsubordinatesinanorganizationwhoarerequiredtoreporttoeachmanage
Widespan-manysubordinatesreporttoamanager -typicalofflatorganizations
Narrowspan-fewsubordinatesreporttoamanager -typicaloftallorganizationsTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsChiefExecutiveTallhierarchyRelativelynarrowspanofcontrolTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsChiefExecutiveFlathierarchyRelativelywidespanofcontrolTheBasicDimensionsofOrganiFunctionalAlsocalledTraditionalorganizationstructure.Basedonthesub-divisionofdisciplinesintoseparatedepartmentstogetherwithverticalhierarchyverticallinesofauthorityObjectiveistoemphasizetechnicalexcellence.FunctionalAlsocalledTraditioFunctionalDepartmentsFunctionalDepartmentsFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationProjectCoordinationRedboxesrepresentstaffengagedinprojectactivitiesFunctionalOrganizationProjectAdvantagesofFunctionalOrganizationSimpleLinesofcommunicationwithindepartmentarewellestablishedClearlydefinedresponsibilityandauthorityforworkwithinthedepartmentsAdvantagesofFunctionalOrganDisadvantagesofFunctionalOrganizationNoSinglepointofresponsibilityasprojectscopemovesfromonedepartmenttoanotherdepartmentleadingtocoordinationchaosItoffersexcellentfacilitywithinitsowndepartment;butforamulti-disciplinedprojectswhichcallsforinteractionwithotherdepartmentthenthesystemmaybelackingDisadvantagesofFunctionalOrDisadvantagesofFunctionalOrganizationLengthenthelinesofcommunicationandslowdowntheresponsetimeFormallineofcommunicationisthroughthefunctionalmanagersCompetition&conflictbetweenfunctionaldepartmentsDepartmentworkmaytakepriorityoverprojectworkDisadvantagesofFunctionalOrSuitabilityThefunctionalorganizationistheprimaryclientTheprojectissmallSuitabilityThefunctionalorgaDivisionalOrganizationalStructurePositionsaregroupedaccordingtosimilarityofproducts,services,ormarkets.Therearethreetypesofdivisionalstructure.ProductStructureGeographicStructureCustomerStructureDivisionalOrganizationalStruProduct
Organizational
Structure
Productstructuregroupsemployeestogetherbaseduponspecificproductsproducedbythecompany.Anexampleofthiswouldbeacompanythatproducesthreedistinctproducts,"producta","productb",and"productc".Thiscompanywouldhaveaseparatedivisionforeachproduct.ProductOrganizationalStructuProductstructurecharacteristicsSimilartothefunctionalorganizationstructureexceptallthedepartmentsarededicatedtotheproduct/projectTheProjectManagerhashighlevelofauthoritytomanageandcontroltheprojectresourcesSelfcontainedunitwithinowntechnicalstaffandadministrationProductstructurecharacterist4-22ProductStructureVicePresidentSalesandMarketingVicePresidentResearch&DevelopmentVicePresidentMaterialsManagementCEOVicePresidentFinanceCannedSoupsDivisionPDMFrozenVegetableDivisionPDMFrozenEntreesDivisionPDMBakedGoodsDivisionPDM4-194-22ProductStructureVicePrOrganizational-Structure(-42)教学讲解课件24FinanceProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesProductionEngineeringAccountingSales&MarketingHumanResourcesChiefExecutiveOfficerProductAProductB24FinanceProductionFinanceEngi
AdvantagesofProduct/Projectstructure
Relativelysimplemeansofworkingonaproject.Conflictingresponsibilitiesareminimized.AccountabilityisclearlyplacedinonepersonPMhasfullauthorityoverprojectSimplifiedcoordinationacrossfunctionsHighlevelofcommitmenttoprojectschedule,technicalandcostgoals
AdvantagesofProduct/Project
AdvantagesofProduct/ProjectStructure
StrongorientationtocustomerrequirementsRapidreactiontimeduetoabilitytomakeswiftdecisionsaccurateperformancemeasurement
AdvantagesofProduct/ProjectDisadvantagesofaproduct/ProjectstructureLackof“bigpicture”companywideorientationDuplicationofeffortincreasesorganizationalcostsDifficulttoshareindividuals/expertiseacrossprojectsTendencytoretainpersonnellongerthanneededUncertaintyaboutjobaftertheprojectDisadvantagesofaproduct/ProSuitabilityLargeprojectsLong-termprojects“Crash”projects–emergencyresponseProjectsthatchangeintopermanentfunctionalorganizationsSuitabilityLargeprojects
matrixorganizationalStructure
matrixorganizationalMatrixStructuresThematrixorganizationalstructureisoneinwhichfunctionalandstaffpersonnelareassignedtobothabasicfunctionalareaandtoproductmanagerThematrixformisintendedtomakethebestuseoftalentedpeoplewithinafirmbycombiningtheadvantagesoffunctionalspecializationandproduct-projectspecialization
MatrixStructuresThematrixor
MatrixStructuresThisstructureisonewherethereisacombinationoffunctionalanddivisionalstructureatthesametimeTwo‘chainsofcommand’,oneverticalandonehorizontal
MatrixStructuresThisstruc
Organizational-Structure(-42)教学讲解课件Organizational-Structure(-42)教学讲解课件MatrixStructuresAmatrixisahighlyflexibleformthatisreadilyadaptabletochangingcircumstances.Matrixstructuresrelyheavilyoncommitteeandteamauthority.Somecompaniesusethematrixorganizationasatemporarymeasuretocompleteaspecificproject.TheendoftheprojectusuallymeanstheendofthematrixMatrixStructuresAmatrixisaSuitabilityModeratepriority,moderatesizeprojectsProjectswhereefficiencyisparamountneedWhenprojectactivitiescloselycorrelatewiththoseinsidethefunctionalorganizationSuitabilityModeratepriority,MatrixStructureAdvantagesdecentralizeddecisionmakingstrongprojectcoordinationflexibleuseofhumanresourcesefficientuseofsupportsystemsDisadvantagesRoleconflict,ambiguitypotentialconfusionoverauthority&responsibilityincreasedpotentialforinterpersonalconflictsMatrixStructureAdvantagesDisaTheMatrixStructureDescriptionCombinestwoformsofdepartmentalizationfunctionalproductBreaksunitofcommandDualchainofcommandStrengthsFacilitatescoordinationComplexandindependentactivitiesBettercommunicationStrengths(cont.)MoreflexibilityEfficientallocationofspecialistsEconomiesofscaleWeaknessesConfusioncreatedStressplacedonworkersIncreasedambiguityUnclearreportingrelationshipsPowerstrugglesRoleconflictsUnclearexpectationsTheMatrixStructureDescriptioChoosingastructureSizeofprojectStrategicimportanceNovelty,needforinnovationNeedforintegration(#depts.involved)Environmentalcomplexity(#ofexternalinterfaces)Budget,timeconstraintsStabilityofresourcerequirementsSmallprojectfocusedentirelyonthefunctionaldepartmentLargeprojectinvolvingmanydifferentdepartments.ChoosingastructureSizeofprCONCLUSION
FunctionalFormfocusisonin-depthapplicationofatechnologyMostofthetalent/expertiseresidesinonefunctionalareaCONCLUSIONCONCLUSIONProductFormfirmengagesinalargenumberofsimilarprojects(construction)one-time,highlyspecificuniquetasksthatisnotappropriateforasinglefunctionalarea(productdevelopment:marketing,designengineering,manufacturingengineering,qualityengineering)CONCLUSIONProductFormCONCLUSIONMatrixFormintegrationofinputsfromseveralfunctionalareasinvolvesreasonablysophisticatedtechnologyEmployeeseffectivelyhavetwobossesConflictswiththeprincipleof‘unityofcommand’technicalspecialistsarenotrequiredfull-timeCONCLUSIONMatrixFormOrganizationalStructureAhmadRamzeyahReemaOrganizationalStructureAhmad43
Managementorganization
Definition:Managementstructureestablishestherelationshipbetweentheprojectparticipants,togetherwithdefiningtheirduties,responsibilitiesandlinesofauthorityandlinesofcommunication.
ManagementorganizationDefiOrganizationStructureTypesOfOrganizationStructure:FunctionalDivisionalMatrixOrganizationStructureTypesOfTheDiagramrepresentingtheconnectionsbetweenthevariousdepartmentswithinanorganizationProvidesinformationaboutthevarioustasksperformedwithinanorganizationandtheformallinesofauthoritybetweenthem.TheDiagramTheBasicDimensionsofOrganizationsHierarchyofAuthority:aconfigurationofthereportingrelationshipswithin organizations(i.e.,whoreportstowhom) Tallorganizations-havemanylevelsinthehierarchy Flatorganizations-havefewlevelsinthehierarchyTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsDivisionofLabor:processofdividingthemanytasksinanorganizationintospecializedjobs -themoretasksaredividedintoseparatejobs,themorethosejobsarespecializedandsothenarrowertherangeofactivitiesTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsSpanofControl:thenumberofsubordinatesinanorganizationwhoarerequiredtoreporttoeachmanage
Widespan-manysubordinatesreporttoamanager -typicalofflatorganizations
Narrowspan-fewsubordinatesreporttoamanager -typicaloftallorganizationsTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsChiefExecutiveTallhierarchyRelativelynarrowspanofcontrolTheBasicDimensionsofOrganiTheBasicDimensionsofOrganizationsChiefExecutiveFlathierarchyRelativelywidespanofcontrolTheBasicDimensionsofOrganiFunctionalAlsocalledTraditionalorganizationstructure.Basedonthesub-divisionofdisciplinesintoseparatedepartmentstogetherwithverticalhierarchyverticallinesofauthorityObjectiveistoemphasizetechnicalexcellence.FunctionalAlsocalledTraditioFunctionalDepartmentsFunctionalDepartmentsFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationFunctionalOrganizationProjectCoordinationRedboxesrepresentstaffengagedinprojectactivitiesFunctionalOrganizationProjectAdvantagesofFunctionalOrganizationSimpleLinesofcommunicationwithindepartmentarewellestablishedClearlydefinedresponsibilityandauthorityforworkwithinthedepartmentsAdvantagesofFunctionalOrganDisadvantagesofFunctionalOrganizationNoSinglepointofresponsibilityasprojectscopemovesfromonedepartmenttoanotherdepartmentleadingtocoordinationchaosItoffersexcellentfacilitywithinitsowndepartment;butforamulti-disciplinedprojectswhichcallsforinteractionwithotherdepartmentthenthesystemmaybelackingDisadvantagesofFunctionalOrDisadvantagesofFunctionalOrganizationLengthenthelinesofcommunicationandslowdowntheresponsetimeFormallineofcommunicationisthroughthefunctionalmanagersCompetition&conflictbetweenfunctionaldepartmentsDepartmentworkmaytakepriorityoverprojectworkDisadvantagesofFunctionalOrSuitabilityThefunctionalorganizationistheprimaryclientTheprojectissmallSuitabilityThefunctionalorgaDivisionalOrganizationalStructurePositionsaregroupedaccordingtosimilarityofproducts,services,ormarkets.Therearethreetypesofdivisionalstructure.ProductStructureGeographicStructureCustomerStructureDivisionalOrganizationalStruProduct
Organizational
Structure
Productstructuregroupsemployeestogetherbaseduponspecificproductsproducedbythecompany.Anexampleofthiswouldbeacompanythatproducesthreedistinctproducts,"producta","productb",and"productc".Thiscompanywouldhaveaseparatedivisionforeachproduct.ProductOrganizationalStructuProductstructurecharacteristicsSimilartothefunctionalorganizationstructureexceptallthedepartmentsarededicatedtotheproduct/projectTheProjectManagerhashighlevelofauthoritytomanageandcontroltheprojectresourcesSelfcontainedunitwithinowntechnicalstaffandadministrationProductstructurecharacterist4-64ProductStructureVicePresidentSalesandMarketingVicePresidentResearch&DevelopmentVicePresidentMaterialsManagementCEOVicePresidentFinanceCannedSoupsDivisionPDMFrozenVegetableDivisionPDMFrozenEntreesDivisionPDMBakedGoodsDivisionPDM4-194-22ProductStructureVicePrOrganizational-Structure(-42)教学讲解课件66FinanceProductionFinanceEngineeringAccountingSales&MarketingHumanResourcesProductionEngineeringAccountingSales&MarketingHumanResourcesChiefExecutiveOfficerProductAProductB24FinanceProductionFinanceEngi
AdvantagesofProduct/Projectstructure
Relativelysimplemeansofworkingonaproject.Conflictingresponsibilitiesareminimized.AccountabilityisclearlyplacedinonepersonPMhasfullauthorityoverprojectSimplifiedcoordinationacrossfunctionsHighlevelofcommitmenttoprojectschedule,technicalandcostgoals
AdvantagesofProduct/Project
AdvantagesofProduct/ProjectStructure
StrongorientationtocustomerrequirementsRapidreactiontimeduetoabilitytomakeswiftdecisionsaccurateperformancemeasurement
AdvantagesofProduct/ProjectDisadvantagesofaproduct/ProjectstructureLackof“bigpicture”companywideorientationDuplicationofeffortincreasesorganizationalcostsDifficulttoshareindividuals/expertiseacrossprojectsTendencytoretainpersonnellongerthanneededUncertaintyaboutjobaftertheprojectDisadvantagesofaproduct/ProSuitabilityLargeprojectsLong-termprojects“Crash”projects–emergencyresponseProjectsthatchangeintopermanentfunctionalorganizationsSuitabilityLargeprojects
matrixorganizationalStructure
matrixorganizationalMatrixStructuresThematrixorganizationalstructureisoneinwhichfunctionalandstaffpersonnelareassignedtobothabasicfunctionalareaandtoproductmanagerThematrixformisintendedtomakethebestuseoftalentedpeoplewithinafirmbycombiningtheadvantagesoffunctionalspecializationandproduct-projectspecialization
MatrixStructuresThematrixor
MatrixStructuresThisstructureisonewherethereisacombinationoffunctionalanddivisionalstructureatthesametimeTwo‘chainsofcommand’,oneverticalandonehorizontal
MatrixStructuresThisstruc
Organizational-Structure(-42)教学讲解课件Organizational-Structure(-42)教学讲解课件MatrixStructuresAmatrixisahighlyflexibleformthatisreadilyadaptabletochangingcircumstances.Matrixstructuresrelyheavilyoncommitteeandteamauthority.Somecompaniesusethematrixorganizationasatemporarymeasuretocompleteaspecificproject.TheendoftheprojectusuallymeanstheendofthematrixMatrixStructuresAmatrixisaSuitabilityModeratepriority,moderatesizeprojectsProjectswhereefficiencyisparamountneedWhenprojectactivitiescloselycorrelatewiththoseinsidethefunctionalorganizationSuitabilityModeratepriority,MatrixStructureAdvantagesdecentralizeddecisionmakingstrongprojectcoordinationflexib
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