A presentation on the various types of project organizational structures i

1. .

2. INTRODUCTION
I often hear leaders say that “there are too many project managers” when referencing the structure of
Portfolios today and I do think that they are right. However, I deeply believe that project and program
structures are a byproduct of organizational boundaries, despite being considered virtual teams that should
span organizations.
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3. INTRODUCTION
Every organization has a structure which depends on the task they are dealing with. If they are dealing
with temporary types of work, they will have a structure, which will support recruiting and laying off
employees as needed.
However, if the organization is involved with a production operation which requires continuous
operation, they will have a structure which can support keeping employees for a longer duration to
achieve an organization’s objectives.
What is Organization Structure?
The organization is the system or process which helps in achieving the goal. The organization helps the
manager to regulate task to the people and other agencies in order to achieve an economical and timely
completion of the project.
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4. INTRODUCTION
Why is an Organizational Structure Needed?
 Every organization must have a well-defined organizational structure to work efficiently and achieve its goals with fewer
hurdles.
 Organizations have to be very competitive, efficient, and dynamic to survive and grow.
 Consumers are becoming more conscious and demanding, and they need a quick response.
 For Project Managers, a company's organizational structure type will affect how resources are allocated to
the project and will be a factor in how much influence the Project Manager will have within the
organization.
Therefore, to fulfill customer requirements and to survive, it is necessary for any organization to adapt to an organizational
structure, which can best support its objectives.
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5. TYPES OF ORGANIZATION STRUCTURE
The organizational structure depends on many factors, such as governing style, leadership style,
type of organization, workflow, hierarchy, etc.
There are four common organizational structures, and project managers work in all of them:
• Functional Organizational Structure
• Line Organizational Structure
• Matrix Organizational Structure
• Line and staff organizational structure
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6. FUNCTIONAL ORGANISATION
Functional organization has been divided to put the specialists in the top position throughout the enterprise.
This is an organization in which we can define as a system in which functional department are created to deal
with the problems of business at various levels. Functional authority remains confined to functional guidance
to different departments. This helps in maintaining quality and uniformity of performance of different
functions throughout the enterprise.
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7. FUNCTIONAL ORGANISATION
Features of Functional Organization
1. The entire organizational activities are divided into specific functions such as operations,
finance, marketing and personal relations.
2. Complex form of administrative organization compared to the other two.
3. Each functional area is put under the charge of functional specialists and he has got the
authority to give all decisions regarding the function whenever the function is performed
throughout the enterprise.
4. Principle of unity of command does not apply to such organization as it is present in line
organization
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8. FUNCTIONAL ORGANISATION
Advantages
 Specialization
 Effective control
 Economy
 Efficiency
 expansion.
Disadvantages
• lack of coordination
• Costly
• Confusion
• Difficult in fixing responsibilities
• conflict
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9. LINE ORGANISATION
Line organization is the most oldest and simplest method of administrative organization. According to this
type of organization, the authority flows from top to bottom in a concern. The line of command is carried out
from top to bottom. This is the reason for calling this organization as scalar organization which means scalar
chain of command is a part and parcel of this type of administrative organization. In this type of organization,
the line of command flows on an even basis without any gaps in communication and co- ordination taking
place.
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10. LINE ORGANISATION
Features of Line Organization
1. It is the most simplest form of organization.
2. Line of authority flows from top to bottom.
3. Specialized and supportive services do not take place in these organization.
4. Unified control by the line officers can be maintained since they can independently take
decisions in their areas and spheres.
5. This kind of organization always helps in bringing efficiency in communication and bringing
stability to a concern.
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11. LINE ORGANISATION
. Advantages
• Simple to establish and operate
• Promotes prompt decision making.
• Easy to control as the managers have direct control over their subordinates.
• Communication is fast and easy as there is only vertical flow of communication.
Disadvantages
• Lack of specialization
• Managers might get overloaded with too many things to do.
• Failure of one manager to take proper decisions might affect the whole organization.
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12. MATRIX ORGANISATION
The matrix organization is an attempt to combine the advantages of the pure functional structure and the
product organizational structure. This form is identically suited for companies, such as construction, that are
“project- driven”. The figure below shows a typical Matrix organization.
In a matrix organization, each project manager reports directly to the vice president and the
general manager. Since each project represents a potential profit center, the power and authority
used by the project manager co.me directly from the general manager.
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13. MATRIX ORGANISATION
Advantage of Matrix organization.
Because key people can be shared, the project cost is minimized
Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
There is a better balance between time, cost and performance
Authority and responsibility are shared
Stress is distributed among the team
Disadvantages
Conflict in organization authority exists.
Possibility of disunity of command exists
Requires manager effective in human relations
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14. LINE AND STAFF ORGANIZATION
Line and staff organization:-
Line and staff organization is a modification of line organization and it is more complex than line
organization. According to this administrative organization, specialized and supportive activities are attached
to the line of command by appointing staff supervisors and staff specialists who are attached to the line
authority. The power of command always remains with the line executives and staff supervisors guide, advice
and council the line executives. Personal Secretary to the Managing Director is a staff official.
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15. LINE AND STAFF ORGANIZATION
Features of Line and Staff Organization
1. There are two types of staff : a. Staff Assistants- P.A. to Managing Director, Secretary to
Marketing Manager. b. Staff Supervisor- Operation Control Manager, Quality Controller, PRO
2. Line and Staff Organization is a compromise of line organization. It is more complex than line
concern.
3. Division of work and specialization takes place in line and staff organization.
4. The whole organization is divided into different functional areas to which staff specialists are
attached.
5. Efficiency can be achieved through the features of specialization..
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16. LINE AND STAFF ORGANIZATION
Advantages
• Line managers are provided by expert advice by these specialists.
• Staff managers provide specialist advice which can improve quality of decisions in various departments.
Disadvantages
• Line managers and staff managers might have conflicts on particular issues.
• Line and staff managers might not be clear as to what the actual area of operations is and what is expected
of them. Co-ordination may be a problem.
• Staff personnel are not accountable for the results and thus may not take tasks seriously.
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17. DISCUSSION
The Advantages of Having an Effective Organizational Structure
An organizational structure is a framework, which helps an organization run its operation
effectively and achieve goals with minimal obstruction. The organizational structure defines the
relationship among the various departments and teams of the organization. It helps organizations
to delegate authority, power, and responsibility.
The organizational structure defines how an employee will report to his superior, which helps in
coordination and cooperation within the members of the group. The main advantage of having an
effective organizational structure is that it reduces the friction among employees by clarifying the
roles, responsibilities, and reporting structure.
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18. CONCLUSION
Every organization has an organizational structure; otherwise, chaos takes over. An
organizational structure shows employees a transparent reporting system, which helps to avoid
conflicts, and supports good communication. An organizational structure is essential for an
organization’s smooth functioning. An organization should choose its structure depending on its
needs and requirements, as failing to do so will hinder its growth.
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