Types and Significance of Organizational Structure

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UNIT-2 1
Question 1
Organisational structure affects an organisation overall defining responsibilities and
power of every department. The different types of organizational structures are functional,
projectized and matrix organization depends on external or internal requirements when
needed change (Thomas, 2018).
Firstly, functional organisation define individuals grouped by specialization areas
having advantages in specialists easier management, team member reporting to one
supervisor at a time, centralization of similar resources such as software developers to IT
department, and clearly defining career paths in specialized areas (Goodrich, 2018).
However, disadvantages consists of people placing more emphasis on functional specialty to
the project detriment, no career path in management of project, and project manager having
no or little authority.
Projectized Organisation defines the company as a whole organised by projects with
advantages of efficient project organisation, more communications effectively than
functional, and loyalty to the project (Usmani, 2019). However, disadvantages consists of no
“home’ after finishing the project, lack of professionalism relating to disciplines, job
functions and facilities duplication, and less efficient resources use.
Matrix Organisation defines team members reporting to project manager and to
functional manages as well. The advantages in this structure is that it describes highly visible
objectives of project, improved project manager control above resources, supporting more
through functional areas, utilising scarce resources at maximum, better coordination along
with vertical and horizontal information dissemination, and maintenance of “home” by the
team members (Gleeson & Thompson, 2019). However, disadvantages shows the
requirement of extra administration, project teams having more than one boss, more
controlling and monitoring complexity, stronger problems at the time of resource allocation,
needs procedures and policies extensively, higher potential for conflict, and chance of
functional managers having different priorities than project managers.