•Authority - the right to make decisions and carry out tasks
•Span of control - the number of people a superior
is responsible for
•Chain of Command - the relationship between different levels of authority in the business
•Hierarchy - shows the line management
in the business and who has specific responsibilities
•Delegation - authority to carry out actions
passed from superior to subordinate
•Empowerment - giving responsibilities to people
at all levels of the business to make decisions
From the perspective of structure, organizations fall into three categories: 1. Functional organizations 2. Projectized organizations and 3. Matrix organizations. Functional Organizations A functional organization has a traditional organizational structure in which each functional department, such as engineering, marketing, and sales, is a separate entity Projectized Organization A projectized organization's structure is organized around projects. Most of the organization's resources are devoted to the projects Matrix Organization A matrix organization is organized into functional departments, but a project is run by a project team, with members coming from different functional departments The matrix organizations are generally categorized into a strong matrix, which is closer to projectized structure; a weak matrix, which is closer to functional structure; and a balanced matrix, which is in the middle of strong and weak.
Functional authority cuts across the hierarchical structure to allow managers to direct specific processes, practices, or policies affecting people in other departments.
· The Matrix Organization is at the center of a continuum between purely functional type organizations and purely product type organizations. On the functional end of this continuum is the traditional hierarchical structure divided along functional, lines such as marketing, production, and accounting. On the other end of this continuum is the pure product organization. Here, a separate team is formed, duplicating the functional structure but organized under a product Advantages: · Clear project focus · Flexible staffing · Adaptability to management needs and skills · Staff development opportunities · Adaptability to management changes Disadvantages: · Built in conflicts · Resistance to termination · Complex command and authority relationships · Complex employee recognition systems
The importance of functional organizational structure is to provide order and accountability to an organization. By creating specific job categories for specific tasks, the efficiency of the labor needed to accomplish the tasks increases. It would not make sense to have your accountants repairing pumps at your facility while your maintenance staff shipped out product. Dividing the labor by function then adding employees to the organization by matching their skills with the function needed is the way an organization can experience the highest level of efficiency.
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functional structure
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An organization can have one of the following structures:- Functional Organizational Structure- Matrix Organizational Structure
Here are 3 form or Project Management Structures:- Functional Organization Structure- Matrix Organization Structure- Project Organization Structure
From the perspective of structure, organizations fall into three categories: 1. Functional organizations 2. Projectized organizations and 3. Matrix organizations. Functional Organizations A functional organization has a traditional organizational structure in which each functional department, such as engineering, marketing, and sales, is a separate entity Projectized Organization A projectized organization's structure is organized around projects. Most of the organization's resources are devoted to the projects Matrix Organization A matrix organization is organized into functional departments, but a project is run by a project team, with members coming from different functional departments The matrix organizations are generally categorized into a strong matrix, which is closer to projectized structure; a weak matrix, which is closer to functional structure; and a balanced matrix, which is in the middle of strong and weak.
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As soon as there is more than one person involved, an organization will have a functional structure; each person will be doing something different. Since people doing the same or similar functions will want to cooperate, it makes sense to create a functional structure.
A projectized organization's structure is organized around projects. Most of the organization's resources are devoted to the projects. the project team members report directly to the project manager who has a great deal of independence and authority (Imagine the structure in the Functional Organization) He reports directly to the CEO and has great control over his team and especially on what happens to his team members (Unlike the functional structure where the team is at the mercy of the functional manager) Along with the responsibility comes the high level of autonomy over the projects. The projects managers are a happy bunch of people in a Projectized organization. The functional and projectized organizations are like north and south poles of a magnet.
Groups defined by an organization's structure typically include functional groups, divisions, teams, and departments. Functional groups are based on specific functions or tasks, divisions are based on business units or products, teams are formed for specific projects or short-term goals, and departments are based on broader functional areas such as HR, finance, marketing, etc.
line line and staff matrix style cross functional self managed teams
functional structure
Functional authority cuts across the hierarchical structure to allow managers to direct specific processes, practices, or policies affecting people in other departments.