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 (or divisional organization) unites all personnel involved in producing and marketing a product or related products, catering to specific customer types.
Matrix Organization
The matrix structure, also known as a multi-control system, overlays two organizational structures. Employees report to two managers, creating dual chains of command: one functional/divisional and one project-based.
Characteristics of Functional Organizations
- Authority: Based on knowledge and expertise.
- Communication: Direct and swift, without intermediaries.
- Decentralization: Decisions delegated to specialized bodies.
- Specialization: Emphasis on specialized roles.
Advantages of Functional Organizations
- Maximum specialization.
- Improved technical expertise.
- Efficient communication within specialized areas.
- Each department focuses on its specific activity.
Disadvantages of Functional Organizations
- Loss of command authority.
- Multiple subordination.
- Potential competition between specialists.
- Tension and conflict.
Project Phases and Management
Why Divide Projects into Phases?
Dividing projects into phases, stages, or sections allows for better control, improved time management, cost management, and resource allocation.
Project Life Cycle Stages
- Project Initiation: Identifying needs and making decisions about resource allocation, cost, and relative importance.
- Planning: Creating a roadmap with tasks and interdependencies. This often includes a pre-plan or general idea before formal planning.
- Implementation: Translating plans into tangible outcomes that meet identified needs.
- Control: Continuous monitoring of the project’s progress, comparing actual results against the plan, and addressing any significant discrepancies.
- Evaluation: Objective assessment of the project’s status against defined objectives, both during and after the project. Mid-project evaluations can inform course corrections.