They enable a more sustainable and healthier corporate environment. © What needs to be achieved to complete a project successfully is clearly defined and understandable for the project team. There are several types of corporate structures (organizational structures), and organizations choose the one most suitable for them. In Functional Organization, people are grouped by areas of specialization. This causes the organization to lose its professionalism in disciplines. 4  Pages. Organizational structures define the hierarchy or an organization, and determine the way information flows within it. The main reason of this is, there will be lots of projects needing resources from a single functional department. The rational of the structure meets the size of the company and it is important for the company to be departmentalized. If he is assigned to a project, he reports to a project manager as well. { There is not a career path in project management. Another disadvantage of the projectized organizations is the duplication of facilities and job functions. From: Jessica Rushing Explain the advantages and disadvantages of a matrix structure in organisations. This business is inventive and embraces change, growth, and advancements in all areas. Organizational Structure and Competitive Advantage. A disadvantage is that employees are responsible to their project team as well as to their functional areas. An organizational structure is a composition that specifies a company's hierarchical structure. Divisional structure offers many advantages over functioned structure especially in terms of autonomy for efficient management, management development, increasing organizational size up to any limit, and taking into account of specific problems related with each product or territory contributing to the overall objectives of the firm. Premium There are various kinds of conformations that organizations can choose to build their business around. Let's start with the most complex of the three, the matrix structure. And this affects the success of projects respectively. An organizational structure is the group of rules, roles, relationships and responsibilities that outline how your company's activities are directed to meet its goals. Matrix organizations enable better coordination, better horizontal and vertical dissemination of information. WEEK 6 Because resources are grouped based on their specialties. Organizational Structures | What are the Advantages and the Disadvantages of Different Organizational Structures? IBM’s domestic division, which was led by tom Watson jnr. project will be looking at the organizational structure of Lime Jamaica (Montego Bay Head Office). The functional manager wouldn’t want to assign a resource to the project since he wants to complete the departmental work first. Let’s consider that a department has its own works and a project manager is requiring a new resource from this department. Matrix organizations keep the power and influence of functional and project managers in balance. This will help us to analyze the case study in the next chapter and see whether a company can use its structure as an advantage. Let’s consider that a project needs a testing tool to complete its quality assurance activities in a project. Lime specializes in phone and internet industry. Organizational Structure Paper If you want to learn more about these three types of organizational structures a detailed article can be found here. "@type":"Product", The last advantage of this type of organizational structure is that team members maintain a home. Structure, Organization, Patient 1183  Words | This structure strengthens the dissemination of information and better coordination of the staff. Responsible for research and development and for financing the operations of the business want to a... What are the advantages and the advantages and disadvantages for both company it! 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