Organizational Structures: Types, Functions, and Project Phases
Organizational Structures: An Overview
Types of Organizations: Formal, linear, functional, linear-staff, product marketing, matrix.
Functional Organization
Functional organization applies the principle of functional specialization for each task.
Line-Staff Organization
Line-staff organization combines linear and functional structures to enhance benefits and reduce drawbacks, forming an advisory, hierarchical organization.
Product/Marketing Organization
Product/marketing organization (often called divisional organization) unites everyone involved in producing and marketing a product or related products, all dealing with a specific customer type.
Matrix Organization
The matrix structure, sometimes called a multi-control system, has two simultaneous structures. Employees report to two heads, working with two chains of command: one functional/divisional and one vertical.
Authority in Functional Organizations
Authority in functional organizations is based on knowledge. No superior has complete authority over subordinates, but partial authority and direct communication exist.
Key Features:
- Line: Direct and fast communication between levels.
- Decentralization: Decisions are delegated to specialized bodies.
- Specialization: Emphasis on specialization of all organs.
Advantages of Functional Organizations:
- Maximum specialization.
- Faster technical execution.
- Improved communication.
- Each organ performs only its specific activity.
Disadvantages of Functional Organizations:
- Loss of command authority.
- Multiple subordination.
- Competition between specialists.
- Tension and conflict.
Project Phases and Management
Why divide a project into phases, stages, or sections? To have better control, better management of time, cost, and resources.
Project Lifecycle Stages:
- Project Initiation: Projects arise from needs. Decisions are made about resources, needs, costs, and priorities.
- Planning: The plan is a roadmap, identifying project points, tasks, and interdependencies.
- Implementation: Translating formulations into something that meets the needs.
- Control: Continuous monitoring of the project’s progress, comparing it to the plan to identify and manage variations.
- Evaluation: Objective examination to determine the project’s status in relation to defined objectives, providing feedback for adjustments.