Organisational Structures Flashcards
3 types of organisation structure
• Matrix
• Functional
• Product/Project
Functional Structure Characteristics
• Divided into groups along the function line who work together to carry out the objectives
• Project can be done by the department or passed from team to team
• The head of the functional team is the project manager (they may not take this job title)
Strengths & Weaknesses of a functional structure
Strengths:
• The skills of the team can be utilised as the project is carried out in specific groups
• Able to apply working to other areas of the permanent structure
• Staff know who to report too
Weaknesses:
• As this is close to BAU staff may struggle to prioritise project work especially if the project has no benefit to them
• Staff may work in silos and will become unwilling to share resources
Matrix Structure Characteristics
• Staff are assigned to the project from across the whole organisation and will return to their original roles once work is complete
• Project team is temporary and set up for specific projects
• All staff report to their own line managers and the PM
Strengths & Weaknesses of a Matrix Structure
Strengths:
• Resources are shared, skills can be transferred from departments to the projects which increases efficiency
• Good communication, the wider organisation knows about this project
Weaknesses:
• Potential conflict due to reporting to two different managers
• Team roles may not be clearly defined
• decision making can take longer due to lack of communication between managers
• You loose skills when staff leave the project once their part in the project is complete
Project/Product Structure Characteristics
• The organisation is split into ‘projects’ and each had a project manager who report to the management board
• Consists of people dedicated solely to the project
• Project teams leave the project once their part is done
Strengths & Weaknesses of a Project/Product structure
Strengths:
• No other objectives live BAU so the focus is on the project only
• Roles and responsibilities are clearly defined
• Project manager is in charge
Weaknesses:
• Learning is lost once the project team leaves and skills aren’t utilised
• Teams often relay on each other in order to complete
