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Project Management
(A6AX 34)
Ourcome1: Organisatioal Structures
Developed from SQA COLEG pack by Alison Gavin
Forth Valley...
Changes to organisational structures
As we now realise, there are many types of organisations – they
include businesses, h...
In designing an organisational structure, either
initially or through enforced change, the starting
point should be the fi...
• Should jobs and departments be grouped
together in a ‘functional’ way according to the
specialist expertise and interest...
Hierarchical or flat?
Hierarchy refers to the number of levels to be found in the
organisation. The army, police and civil...
‘Flat’ organisations have very few levels between the
lowest and highest levels. In Figure 2.4 only one level of
hierarchy...
Functional structure
This type of organisation structure exists when a specialist is to
give a service which the line mana...
The functional structure model is very popular and
can be varied in a number of ways:
• Division by product – the organisa...
A popular way of representing functional lines is
illustrated below
Geographical structure
As a firm grows, it sometimes needs to set up branches
in other locations
Matrix structure
Sometimes an organisation needs to run according to
what projects they have to accomplish. In these situa...
Matrix Structure
A person working in a project would have two bosses
A project may cover some or all of the organisation’s...
The End
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Outcome 1 organstional structures

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Organisational Structures

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Outcome 1 organstional structures

  1. 1. Project Management (A6AX 34) Ourcome1: Organisatioal Structures Developed from SQA COLEG pack by Alison Gavin Forth Valley college 2015
  2. 2. Changes to organisational structures As we now realise, there are many types of organisations – they include businesses, hospitals, schools, local authorities, multinationals, charities and franchises. Some are in the private sector and some are in the public sector. All of them have a purpose and a policy. The people who manage them may develop different structures which, to some extent, represent divergences between the goals and policies of the enterprises concerned. In a global marketplace things change rapidly, as too must the organisations that compete in it.
  3. 3. In designing an organisational structure, either initially or through enforced change, the starting point should be the five central questions identified by Child (1984). • Should jobs be broken down into narrow areas of work and responsibility so as to secure the benefits of specialisation? • Should the overall structure of an organisation be ‘tall’ rather than ‘flat’ in terms of the levels of management and spans of control?
  4. 4. • Should jobs and departments be grouped together in a ‘functional’ way according to the specialist expertise and interests that they share? • Is it appropriate to aim for an intensive form of integration between the different segments of an organisation, or not? • What approach should management take towards maintaining adequate control over the work done?
  5. 5. Hierarchical or flat? Hierarchy refers to the number of levels to be found in the organisation. The army, police and civil services have many levels – they are said to operate ‘tall’ structures. Many large organisations have similar structures, It has been claimed that hierarchical structures can lead to ineffectiveness as there are too many tiers of management.
  6. 6. ‘Flat’ organisations have very few levels between the lowest and highest levels. In Figure 2.4 only one level of hierarchy operates between the managing director at the top and the employees at the operational level. The important difference between tall and flat organisations is the span of control – the number of subordinates who report to a single manager.
  7. 7. Functional structure This type of organisation structure exists when a specialist is to give a service which the line manager must accept. The specialist’s authority will come from a common superior, for example from a European manager to a UK manager. If the manager requires some functional assistance to be given to his subordinates – training for example – then the manager would have to delegate some authority to the functional specialist
  8. 8. The functional structure model is very popular and can be varied in a number of ways: • Division by product – the organisation is divided up according to the product. For example in supermarkets it may be fruit and vegetables, toiletries, bakery, etc. In a local authority the organisation may be divided into recycling, housing, environmental health, etc. • Division by customer – this could include a sales business which is divided into wholesale and retail sections to cater for the particular needs of each sector. • Division by process or equipment – a printing firm, for example, may use this sort of division in order to keep all its printing functions in the one area; for example a screen printing department for T-shirts and a printing card department for business cards.
  9. 9. A popular way of representing functional lines is illustrated below
  10. 10. Geographical structure As a firm grows, it sometimes needs to set up branches in other locations
  11. 11. Matrix structure Sometimes an organisation needs to run according to what projects they have to accomplish. In these situations people usually work together in a team to achieve their own project goals.
  12. 12. Matrix Structure A person working in a project would have two bosses A project may cover some or all of the organisation’s department areas. Obviously these are very different commissions so the organisation would have to set itself up to complete both projects. It could set up two project groups, both of which would utilise resources from all of the different departments within the organisation.
  13. 13. The End

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