The word structure implies organization. People who work in an organization are grouped so that their efforts can be channeled for maximum efficiency. Organizational structure consists of three key elements:18 · 1. Organizational structure designates formal reporting relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors. Who reports to whom in the structural hierarchy? This is a key component of a firm’s structure. A span of control determines the number of subordinates directly reporting to each supervisor. In some structures, a manager may have a wide span of control, suggesting a large number of subordinates, while other structures mandate narrow spans of control and few individuals reporting directly to any supervisor. For some companies, the reporting relationship may be rigid and bureaucratic; other firms require flexibility and informality across hierarchical levels. · 2. Organizational structure identifies the grouping together of individuals into departments and departments into the total organization. How are individuals collected into larger groups? Starting with the smallest, units of a structure continually recombine with other units to create larger groups, or organizations of individuals. These groups, referred to as departments, may be grouped along a variety of different logical patterns. For example, among the most common reasons for creating departments are (1) function—grouping people performing similar activities into similar departments, (2) product—grouping people working on similar product lines into departments, (3) geography—grouping people within similar geographical regions or physical locations into departments, and (4) project—grouping people involved in the same project into a department. We will discuss some of these more common departmental arrangements in detail later in this chapter. · 3. Organizational structure includes the design of systems to ensure effective communication, coordination, and integration of effort across departments. This third feature of organizational structure refers to the supporting mechanisms the firm relies on to reinforce and promote its structure. These supporting mechanisms may be simple or complex. In some firms, a method for ensuring effective communication is simply to mandate, through rules and procedures, the manner in which project team members must communicate with one another and the types of information they must routinely share. Other companies use more sophisticated or complex methods for promoting coordination, such as the creation of special project offices apart from the rest of the company where project team members work for the duration of the project. The key thrust behind this third element in organizational structure implies that simply creating a logical ordering or hierarchy of personnel for an organization is not sufficient unless it is also supported by systems that ensure clear communication a ...

1. The word structure implies organization. People who work in an
organization are grouped so that their efforts can be channeled
for maximum efficiency. Organizational structure consists of
three key elements:18
· 1. Organizational structure designates formal reporting
relationships, including the number of levels in the hierarchy
and the span of control of managers and supervisors. Who
reports to whom in the structural hierarchy? This is a key
component of a firm’s structure. A span of control determines
the number of subordinates directly reporting to each
supervisor. In some structures, a manager may have a wide span
of control, suggesting a large number of subordinates, while
other structures mandate narrow spans of control and few
individuals reporting directly to any supervisor. For some
companies, the reporting relationship may be rigid and
bureaucratic; other firms require flexibility and informality
across hierarchical levels.
· 2. Organizational structure identifies the grouping together of
individuals into departments and departments into the total
organization. How are individuals collected into larger groups?
Starting with the smallest, units of a structure continually
recombine with other units to create larger groups, or
organizations of individuals. These groups, referred to as
departments, may be grouped along a variety of different logical
patterns. For example, among the most common reasons for
creating departments are (1) function—grouping people
performing similar activities into similar departments, (2)
product—grouping people working on similar product lines into
departments, (3) geography—grouping people within similar
geographical regions or physical locations into departments, and
(4) project—grouping people involved in the same project into a
department. We will discuss some of these more common
departmental arrangements in detail later in this chapter.
· 3. Organizational structure includes the design of systems to

2. ensure effective communication, coordination, and integration
of effort across departments. This third feature of organizational
structure refers to the supporting mechanisms the firm relies on
to reinforce and promote its structure. These supporting
mechanisms may be simple or complex. In some firms, a method
for ensuring effective communication is simply to mandate,
through rules and procedures, the manner in which project team
members must communicate with one another and the types of
information they must routinely share. Other companies use
more sophisticated or complex methods for promoting
coordination, such as the creation of special project offices
apart from the rest of the company where project team members
work for the duration of the project. The key thrust behind this
third element in organizational structure implies that simply
creating a logical ordering or hierarchy of personnel for an
organization is not sufficient unless it is also supported by
systems that ensure clear communication and coordination
across the departments.
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It is also important to note that within the project management
context two distinct structures operate simultaneously, and both
affect the manner in which the project is accomplished. The
first is the overall structure of the organization that is
developing the project. This structure consists of the
arrangement of all units or interest groups participating in the
development of the project; it includes the project team, the
client, top management, functional departments, and other
relevant stakeholders. The second structure at work is the
internal structure of the project team; it specifies the

3. relationship between members of the project team, their roles
and responsibilities, and their interaction with the project
manager. The majority of this chapter examines the larger
structure of the overall organization and how it pertains to
project management. The implications of internal project team
structure will be discussed here but explored more thoroughly in
Chapter 6.
2.4 FORMS OF ORGANIZATIONAL STRUCTURE
Organizations can be structured in an infinite variety of ways,
ranging from highly complex to extremely simple. What is
important to understand is that typically the structure of an
organization does not happen by chance; it is the result of a
reasoned response to forces acting on the firm. A number of
factors 4445routinely affect the reasons why a company is
structured the way it is. Operating environment is among the
most important determinants or factors influencing an
organization’s structure. An organization’s external
environment consists of all forces or groups outside the
organization that have the potential to affect the organization.
Some elements in a company’s external environment that can
play a significant role in a firm’s activities are competitors,
customers in the marketplace, the government and other legal or
regulatory bodies, general economic conditions, pools of
available human or financial resources, suppliers, technological
trends, and so forth. In turn, these organizational structures,
often created for very sound reasons in relation to the external
environment, have a strong impact on the manner in which
projects are best managed within the organization. As we will
see, each organizational type offers its own benefits and
drawbacks as a context for creating projects.
Some common structural types classify the majority of firms.
These structure types include the following:
1. Functional organizations—Companies are structured by
grouping people performing similar activities into departments.

4. 2. Project organizations—Companies are structured by
grouping people into project teams on temporary assignments.
3. Matrix organizations—Companies are structured by
creating a dual hierarchy in which functions and projects have
equal prominence.
DPA 8404 Unit 4 Discussion Questions
Discussion Question 1
Power Influences and Public Input
Identify and analyze the power influences in the Lindeman
article. What is one way that an organizational leader can use
power and influence to increase public input in decision
making? Should public input influence decision making?
Discussion Question 2
Columbia Case Study
Resources
Columbia Accident Scatter Desk
Examine the Columbia accident case study in the Stillman text
and view the ColumbiaAccident case study materials. What
external forces of power played a significant role in the
disaster, and how could this have been avoided?
These discussion questions has to be completed by February 4,
2015 @ 3:00pm, EST, You will be able to access the case study
from the access of my online book that I sent you.