Question

In: Operations Management

Projects occur within many different types of organizational structures and projects themselves tend to have varying...

Projects occur within many different types of organizational structures and projects themselves tend to have varying structures as well. Organizational structures can be characterized as functional, matrix, or projectized (most commonly found in IT-based organizations where much of the work is project focused). Project teams may be made up of members on loan (both full- and part-time) from functional areas within an organization and those members may be active for all or part of the project’s length.

1. List at least one advantage and one disadvantage for one of the different types of project management organizational structures.

2. Illustrate the advantage and disadvantage using an example (Types: Functional, matrix, project, and mixed organizations).

3. Find one additional source beyond our texts as a source in your initial post.

Solutions

Expert Solution

The are many Organizational Structures defined. But for project management, the major types that are used are:

  • Functional
  • Matrix
  • Projectized
  • Mixed

----------------------------------------------------------------------------------------------------------------------------------------

Advantages and Disadvantages of Project Management Organization Structures and Examples

i) Functional

This type of structure is also known as the traditional structure. It more of a vertical organization with multiple hierarchies. The head of a department is skilled in a particular domain or function and there are multiple functional managers. Take Engineering company as an example. The electrical functional manager will hire electrical engineers under him or her and the mechanical functional manager will hire mechanical engineers under him or her. They both will look after their own departments separately.

Advantage - The employees are specialists within one department and they share knowledge with each other and always stay updated. Moreover, because they all have one boss, the order following mechanism and communication becomes simple. The example can be any Automobile company that requires multiple functions like, electrical, electronic, and mechanical.

Disadvantage - In this kind of structure, none of the employees have overall responsibility for the project. They are just responsible to complete their own piece of work. The employees are not fully utilized as well. The example can be the same stated above.

ii) Matrix

In today's world, this structure is very common in a project management company. Opposed to the functional structure, in this case, lines of authority flow both vertically and horizontally. It means employees report to their functional managers but at the same time, they are also assigned one or multiple project managers until the project or projects lasts.

Advantage

Employee utilization is maximum in this case. Also, the cost is minimized. An example can be any consulting company like Deloitte, the employees work on one or more projects. They are utilized to the maximum and they bring value to the firm at the same time.

Disadvantage

The disadvantage of this kind of structure is that some time is lost between the end of one project and the start of another one. Thus employees need time for transitioning from one project to another.

iii) Projectized Organization Structure

In this kind of structure, the organization arranges their activities in programs and portfolios. These programs and portfolios are executed with the help of individual projects. Each project has a project manager assigned and he is the whole and sole authority for that project. All the resources of the company are mainly utilized in implementing the project. The team working on the project can also be co-located until the project gets over. So, small companies who focus mainly on short-term and long-term projects can be a good example. For example, any project under the telecom company for laying down the cables.

Advantage

Due to single authority and point of contact, communication is easy and short. Decision making also becomes faster and the learning curve is faster for a new member.

Disadvantage

Due to a tight schedule and strict deadline, st times work environment can become stressful. the employees have a fear of losing their job after the project gets over.

iv) Mixed Structure

A mixed organizational structure is a mix of all different kinds of structures. In this case, some employees report to one or multiple managers. There can be both functional and project managers. The project managers may also report to the functional managers. One of the examples is Citigroup. They have a concept of Country Leader and Product Leader. They both work together whenever it is required for a project.

Advantages

This kind of structure ensures optimum utilization of resources. Learning opportunities are more as people from different departments come together to work on a project. This kind of structure is more flexible in nature and provides a lot of learning opportunities for employees.

Disadvantage

It requires a great deal of coordination and effort as compared to other structures. It can lead to stress for employees because they are reporting to more than one boss and at times the responsibilities may contradict.

------------------------------------------------------------------------------------------------------------------------------------

Source - Internet resource


Related Solutions

What are the main types of organizational structures? What organizational structures are used to implement the...
What are the main types of organizational structures? What organizational structures are used to implement the multidomestic, global, and transnational international strategies?
The complexity of construction projects stems from different types of projects, the many stake holders, the...
The complexity of construction projects stems from different types of projects, the many stake holders, the different delivery approaches, and different contracts to carry out the projects. please discuss this statement.
What are the different types of projects and organization structures used in supply chain environments? Also,...
What are the different types of projects and organization structures used in supply chain environments? Also, how do you go about calculating the critical path and the duration of a project?
Explain the types of organizational structures used with global information systems
Explain the types of organizational structures used with global information systems
Different countries have different market structures. Explain the different types of markets. What role does the...
Different countries have different market structures. Explain the different types of markets. What role does the government play in the different markets? Support your argument with practical example from any country in the world.
Medical terminology: Many different types of fractures occur in bones. One of the most typical occurs...
Medical terminology: Many different types of fractures occur in bones. One of the most typical occurs when a person uses his or her hand to block a fall before hitting the pavement. What is the name of this sort of fracture, where does it occur, and what are the correct terms used for the process that fixes it?
Takelmer Industries has a different WACC for each of three types of projects. Lowminusrisk projects have...
Takelmer Industries has a different WACC for each of three types of projects. Lowminusrisk projects have a WACC of​ 8.00%, averageminusrisk projects a WACC of​ 10.00%, and highminusrisk projects a WACC of​ 12%. Which of the following projects do you recommend the firm​ accept? Project Level of Risk IRR A Low ​9.50% B Average ​8.50% C Average ​7.50% D Low ​9.50% E High ​14.50% F High ​17.50% G Average ​11.50% A. ​E, F, G B. ​B, C,​ E, F, G...
Consider a market with many firms that have different cost structures. Unless shutdown or exit is​...
Consider a market with many firms that have different cost structures. Unless shutdown or exit is​ optimal, every firm expands production until​ ___________. A. marginal product is maximized. B. marginal​ revenue, marginal​ cost, and price are all equal ​(MR ​ = MC​ = P​). C. marginal revenue is equal to the minimum of​ short-run average total cost. D. marginal cost is minimized. To construct the supply curve in a market with many firms with different cost​ structures, the​ ___________. A....
The purpose of this assignment is to compare the different market structures within the realm of...
The purpose of this assignment is to compare the different market structures within the realm of health care. Identify the four basic market structures, describe their role within health economics, describe the advantages and disadvantages of each market structure, and provide a specific health-care-related example of each market structure. Please use two or three peer-reviewed sources to assist you with this assignment.
Create an explanation as to why multinational corporations need to understand the varying types of transactions that occur in international finance.
Create an explanation as to why multinational corporations need to understand the varying types of transactions that occur in international finance.Describe the impact of inflation on their businesses.Estimate the impact of market participants' expectations on forward markets for currencies.Predict how an international company may react to this information.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT