Describes the characteristics of functional and matrix organizations, and gives a number of concrete things to do to be more effective in a particular type of organization.

1. The freshman software development manager
ORGANIZATION DESIGN
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2. Organizational Design Patterns
Overview of organizational design patterns
• Organizations have the need to introduce structure and
hierarchies at a certain size, to limit the number of
communications that need to happen to get a certain task
accomplished
• Two major organizational patterns have emerged:
• The functional organization
• The matrix organization
• Both organizational patterns come with their individual
advantages and disdvantages
• A number of techniques can help managers and leaders to be
more effective within a particular organizational structure
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3. The functional organization
Structure of a functional organization
• Teams are structured along
there primary area of
expertise
• Traditional way of organizing,
often found in military and
the public sector
• Simple hierarchy, one-to-
many relationship between
managers and individual
contributors
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4. The functional organization
Advantages / Drawbacks
Advantages Drawbacks
Managers
typically
know
their
Tendency
to
build
silo’s
which
in
func5onal
area
turn
decreases
cross-­‐team
communica5on
Team
members
share
the
same
func5onal
background
Increased
risk
of
finger-­‐poin5ng
Responsibili5es
are
clear
and
easy
No
single
project
ownership
to
understand
Can
become
hard
to
navigate
Task
management
and
work
assignment
is
straight
forward
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5. The functional organization
How to be more effective
To be more effective …
• Schedule regular one-on-one meetings with functional managers
from other areas, knock down those walls between departments
à Business lunch!!!
• Invite teams from other functional areas to your stand-up
meetings to keep the communication going
• Plan joined team events with other functional areas
• Watch your own communication style, avoid finger-pointing and
blaming at all costs, use feedback to correct ineffective
communication
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6. The matrix organization
Structure of a matrix organization
• Hierarchy is expressed in at least
two dimensions
• Often there are is a functional and
a project / product / geographical
hierarchy
• Individual contributors have at
least two direct managers, one
functional and one project /
content
• Created to address the major
shortcomings of typical functional
organizations
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7. The matrix organization
Advantages / Drawbacks
Advantages Drawbacks
Clear
project
ownership,
typically
a
Risk
of
conflic5ng
goals
between
project
team
is
responsible
for
a
the
different
managers
in
the
matrix
area
/
project
/
component
Harder
to
establish
common
goals
Cross-­‐team
communica5on
is
and
standards
encouraged
Addi5onal
managerial
overhead
Typically
easier
to
navigate
Much
harder
to
establish
effec5ve
component
ownership
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8. The matrix organization
How to be more effective
To be more effective …
• Reserve some time in advance during one-on-one meetings with
your team members to address issues arising from the matrix
structure
• Establish and maintain a good relationship with your peer matrix
managers
à Business lunch!
• Coach your peer matrix managers on how to communicate
effectively with your team members
• Make sure your peer matrix managers are fully aware of the goals
and objectives you set for your team, and how you plan to
achieve them
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9. Thanks! Questions, remarks and suggestions at:
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