PROJECT MANAGEMENT
1 FORMS OF ORGANIZATIONAL STRUCTURE

PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL STRUCTURE

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ORGANIZATIONAL STRUCTURE
2

 Organizational structure designates formal reporting

relationships, including the number of levels in the hierarchy and the span of control of managers and supervisors

Who reports to whom in the structural hierarchy ?

PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL STRUCTURE

5/4/2011

ORGANIZATIONAL STRUCTURE
3

 Organizational structure identifies the grouping

together of individuals into department and department into the total organization

Reasons for creating a department : i. Functional ii. Product iii. Geography
PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL STRUCTURE

5/4/2011

ORGANIZATIONAL STRUCTURE
4

 Organizational structure includes the design of

systems to ensure effective communication, coordination and integration of effort across departments.

Mechanisms firms rely on to promote effectiveness across departments

PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL STRUCTURE

5/4/2011

FORMS OF ORGANIZATIONAL STRUCTURE
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 Functional organizations -> Companies are

structured by grouping people performing similar activities  Project organizations -> Companies are structured by grouping people into project teams on temporary assignments  Matrix organizations -> Companies are structured by creating a dual hierarchy in which functions and projects have equal prominence

PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL STRUCTURE

5/4/2011

FUNCTIONAL STRUCTURE
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Board of Directors Chief Executive

Vice President Marketing

Vice President Production

Vice President Finance

Vice President Research

Sales

Logistics

Accounting Services

New product development

Advertising

Outsourcing

Investments

Research labs

After-Sale support

Warehousing

Contracting

Quality

PROJECT MANAGEMENT – FORMS OF ORGANIZATIONAL