8 Common Types Of Organizational Structures In Project Management
An organizational structure is a standard hierarchy for operations. It defines how groups can be divided, coordinated, and directed. It also describes the roles and tasks that are required to achieve the organization’s vision and objectives.
Organizational structures don’t have to be set in stone. They can be modified according to the needs and philosophy of an organization. This article will explain the differences between different organizational structures in project management, and how they work.
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Types and Features of Organizational Structure
Certain features should not be overlooked when choosing an organizational structure.
These are the key elements that make up a good organizational structure:
Grad of alignment with organizational goals
Assignment of accountability
Delegation of Capabilities
1. Organic or Simple Organization
This type of organization is flexible and adaptable to market changes.
This structure has few regulations, management layers, and rules. It also features a decentralized decision-making system.
The organic design of an organization is able to adapt to a rapidly changing environment. People work side by side to communicate quickly and often solve unforeseen issues, problems, and requirements.
The project manager may have very limited or no authority and may not be assigned a job role.
2. Line Organization
This is the simplest organizational structure you will find in small businesses. It has clearly defined authority levels in the hierarchical structure. The power flows from the top to the different operational levels or workers.
The hierarchical structure clearly identifies authority, responsibility, accountability at each level.
Because it is simple, authority and responsibilities can be easily traced and transparent. Employees get quick feedback and can respond quickly, making communication fast and easy.
The duties of the project manager are determined by their position or authority in the hierarchy. While some organizations may not have this position, others may have very little to do.
3. Line and Staff Organization
The Line and Staff Organization is an extension of the Line Organization. Functional specialists work alongside line managers to guide them and provide advice.
This type of structure is becoming more common today, and many larger companies adopt it.
There are two types of staff: the general and the specialized.
General Staff: This is the staff that assists the top management. These employees are not experts.
Specialized staff: This team includes experts who offer services to the company. They can play a variety of roles, including advisory, control (as with quality control), and service (such maintenance). The expertise of specialists is used by the Line and Staff Organization. Line managers are better in many areas.
1. Staff can make better decisions, get support and coordination from specialists, and have the opportunity to train to improve skills.
1) Increased confusion and conflict among staff2) Higher costs for hiring specialist3) A tendency within the group to develop a personal image
4. Functional Organization
The Functional Organization groups workers according to their specialization. This structure is an extension to the Line Organizatio