1. UNIT 4 : Type of Organization Structures
1
Unit 4
Compare and contrast the eight generic types of organizational structures and
the three types of matrix structures in terms of function, features, benefits, and drawbacks.
EPM 1113_2 Winter 2022
Lambton College in Toronto
Date of Submission – March 20, 2022
Group D
Abhishek Mandaliya (C0848193)
Gursewak Singh (C0846217)
Ishan Chinnakonda (C0847061)
Kamal Bansal (C0850540)
Krishna Patel (C0848234)
Sushmita Singh (C0827399)
*Every group member contributed equally for this case study*
2. UNIT 4 : Type of Organization Structures
2
An organization, or organisation (Commonwealth English; note spelling changes), is a one- or multi-person
body with a specific goal, such as a company, institution, or association.
What is organization ?
An organizational structure outlines how specific tasks are distributed to achieve a company's objectives. It
describes an employee's job, duties, authority, influence, interests, competency, and political capacities of
people who may operate inside the system.
What is organizational structure ?
3. 3
What are the benefit of implementing an organisational structure?
Making decisions
more quickly
Enhanced
operational
effectiveness
Employee
performance
improves, which
eliminates
duplication of
effort
Reduces
Employee
Friction.
Improved
communication
UNIT 4 : Type of Organization Structures
4. 4
UNIT 4 : Type of Organization Structures
Type of
Organization
Structure
Organic or
Simple
Functional
(centralized)
Multi-
divisional
Matrix
Strong Weak
Balanced
Project-
oriented
Virtual Hybrid
PMO*
Type of Organization Structure
Organizational structures may be divided into 8 categories. Understanding how they function, as well as their
advantages and disadvantages, will help you make a better-educated decision about which to implement in project.
5. Organization
Structure
Type
Functions Features Benefits Drawbacks
Model
Organic or
Simple
• flat reporting
structure
• interactions are
more horizontal
than vertically
between layers
• Cross-functional
teams
• Decentralization
• Flexible
• Easy communication
• Flexible Approach
• Responsive and
Teamwork
• Fluid workforce
• Confusion and
Uncertainties
• Vague Decisions
• Difficult to
control
Functional
structure
• Clear lines of
authority according
to type of work
• One and only one
supervisor –
Functional manager
• Task divided into
functions
• Function performed
by specialists
• Knowledge
enhancement
• Operational speed
and clarity
• Scope of
expansion
• Better control
• Weakening of
common bonds
• Lack of
coordination
• Delay in
decision making
Multi-
divisional
structure
• Functions grouped
into a division.
• Multiple subsidiary
companies under a
parent company
• Low impact of
divisional failure
• Divisional resources
• Every division is
aware of progress
• Accountability
• Better strategic
Decisions
• Team Culture
• Not a possibility
in small
organizations
• Cruel competition
• Lack of
communication
Matrix
structure
• Strong
• Weak
• Balanced
• Two bosses :
Functional manger
Project manager
• Team members
report to both
managers
• Focuses attention on
specific projects
• utilize abilities in
different limits
• reporting relationships
onto a hierarchical
functional structure
• Efficiently gathers
people with
specialized skills
• Flexible in nature
• Balances time, cost
and performance
• Complicated
problem of
coordination
• Indiscipline and
ambiguity
because of Dual
reporting
UNIT 4 : Type of Organization Structures
Eight generic types of organizational structures
6. 6
UNIT 4 : Type of Organization Structures
Organization
Structure
Type
Functions Features Benefits Drawbacks
Model
Project-
oriented
structure
• Project manager has
authority for budgets,
personnel, and
decision making.
• Headed by the
project manager
• Dismantled upon
project completion
• Unity of command
• Communication
response times are
fast
• Co-location
• No clear growth
path
• Discipline specific
competence may
suffer
Virtual
structure
• A virtual organization
is a recent development
that involves different
locations.
• Borderless
Organization
• Electronic
Communication
• Save time and
Travel
• Quick Access to
Experts
• Lack of physical
interaction
• Requires focus on
communication
Hybrid
structure
• Employs multiple
reporting structures
in the organization
• combining functional
and product
structures
• Co-ownership
• In the same
organization, goal
inconsistencies and
distinct institutional
logics.
• Increased
efficiency
• Development of
cross-functional
skills
• Flexibility
• Conflicts
• Too much
administration
overhead
PMO* • Strategic planning
• Resource management
• Mentoring and training
• standardizes project
governance
procedures
• makes resources,
approaches, tools,
and techniques more
easily shared.
• Maintain quality
consistency
• Streamline
processes
• Have more control
over projects
• Centralize project
data
• Increased
Overhead on
Projects
• Slows Project
Delivery
• Can be too Costly
for Smaller
Organizations
Eight generic types of organizational structures
7. UNIT 4 : Type of Organization Structures
For Reference : PMBOK6-2017 (2.4.4.2 FACTORS IN ORGANIZATION STRUCTURE SELECTION- Page -47 )
8. References
organization animation - Bing images
network building multilevel marketing business concept Stock Footage Video (100% Royalty-free)
17906992 | Shutterstock
Organizational Structure: Definition and Types | Indeed.com
Type of organization structure Stock Video Footage - 4K and HD Video Clips | Shutterstock
7 Best Organizational Structure Examples | which to use? (edrawsoft.com)
Organizational Structures Lecture 8 Bureaucratic Structures Pre-bureaucratic (present5.com)
What is Hybrid Organization? | peopleHum
hybrid organization structure - Bing images
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UNIT 4 : Type of Organization Structures
