Reason for Studying Organizational Structure
An organization’s hierarchical is important because it reflects the decision-making process and chain of command. An organization may have a flat or tall structure that directly affects every manager’s power to influence resources and authority to make decisions for timely execution. An organization’s structure is important for goal achievement and delivery of corporate results because it influences a project manager’s capacity to meet deadlines while corporate goals are commonly shared. Keeping this in mind, this paper studies the manner in which different organizational structures affect the achievement of project goals.
Discussion
In true essence, organizations follow three different structures on the basis of which information flows, resources are shared and decisions are made depending on their internal structure. These organizational structures that may fasten or delay the achievement of project goals are elaborated as follows:
Functional Organizational Structure
Organizations that produce standard products and services follow this structure based on their primary operations. Here, such a functional organization is organized into independent divisions where functional managers have authority and power to make decisions concerning allocation of resources and monitoring activities. Project managers in functional organizations tend to have limited authority. Since the primary emphasis is placed on basic operations instead of project management. As project managers have little or no power to make decisions, this may not only give rise to conflicts but could also delay the execution of decisions and delivery of results for project success. Project success is prone to be jeopardized since the project manager has to gain continuous coordination and support from functional managers. Thus, the achievement of project objectives and goals is delayed .
Matrix Organizational Structure
Organizations follow this kind of structure where a control and authority are shared among functional and project managers. A number of managers share the project responsibility including setting project priorities and assignment of tasks to teams or individuals. Despite this, functional managers have the sole authority of decision-making. They can directly influence final decisions concerning project administration and resources management.
Project managers have the only authority to allocate tasks and organize work designated to a certain project team. This structure is followed by those organizations where a balance between operational activities and project management is emphasized, for example, in local body entities. Because of shared responsibilities and division of labor, the result achievement in projects is delayed since possibility of conflicts is very high and every individual is bound to report to two bosses at the same time.
Projectized Organizational Structure
In organizations where this structure is followed, project managers have full liberty and authority to control information, can allocate resources, able to set priorities and decision-making concerning the project. The project manager can assign tasks and direct the team performance without any interference and hassle. In this structure, the project manager is the sole reporting authority to all of the team members. This type os organizational structure is commonly found in those entities that are primarily focused on completion of long-term and capital intensive projects, such as in the construction industry.
Because of centralized authority and shortened lines of communication, a project manager can make quick decisions. With strong sense of the sol reporting authority, team members can have their problems and issues solved in no time. This way, achievement of project goals is fastened with minimal conflicts among project team members as the entire structure supports project management.
Works Cited
Aina, Olumide. impact of organisational structure and culture on project success. 26 April 2015. 13 January 2017 <https://www.linkedin.com/pulse/impact-organisational-structure-culture-project-mfm-mnse-mbifm>.
