Question

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Generally in project management, there are three basic forms of organizational structure that is functional, project and matrix. Suppose you are responsible for advising an health care product company on changes to an organizational structure, to embrace the growing need for effective project management in creating new health care products. Draw the sample organization structure of health care products and conduct an assessment of the advantages and limitations of each of the three structure types. Which would you recommend?

Answer 1

I will recommend Matrix Organization structure as to deliver various Health care services and associated products; I will recommend this structure as the Organization is quite big it works with several stakeholders’ parallel way, further, with Matrix Organizational structure, this Health care unit can take benefits of both projectized and functional organization.

Structure	Advantage	Limitation
Functional	Here, we will can build various teams of specialist, In the context of health care products and services, we require experts and professional with core expertise in various segments like emergency care, Cardiology, Neurology, etc. functional structure could be good choice. Team members will report to functional head, they will find better career and get platform to extend their learning in several functions.	Here, they will not get career path in project management. Organization may not consider their business benefits, so, there could be issues of alignment and strategic objective will not be achieved.
Projectized	Team will be much loyal Better communication can be achieved. Organizational objective will be given priority	No career of gaining expertise in specific functional area Resources may be poorly utilized and team members may be terminated if project gets completed.
Matrix	Take advantage from both Projectized and Functional Organization Information flow gets improved Both functional and project department support each other Scarce resources are usually utilized	Usually application for big organization and it requires huge maintenance and administration Monitoring such organization could be difficult There could be probability to raise conflict within the organization.