Types of Organizational Structure PDF

TYPES OF ORGANIZATIONAL STRUCTURE  ORGANIZATIONAL STRUCTURE Every organization has a structure that depends on the tasks they are dealing with. If the work is temporary, the structure should allow temporary hire and fire, etc. However, if the organization has a permanent opera...

TYPES OF ORGANIZATIONAL STRUCTURE  ORGANIZATIONAL STRUCTURE Every organization has a structure that depends on the tasks they are dealing with. If the work is temporary, the structure should allow temporary hire and fire, etc. However, if the organization has a permanent operation, the structure should allow for activities that help maintain its operation. Organizational structure is a system set up that determines the hierarchy of people, their function, workflow, and reporting system. As organizations grow their requirements change. The structure must adapt to support its objectives. WHY DO Clear Hierarchy and Authority A structured organization defines roles and ORGANIZATIONS responsibilities, ensuring that everyone knows MUST ESTABLISH who to report to and who has the STRUCTURE? decision-making authority. This helps avoid A confusion and overlap in responsibilities. Improved Coordination Structure helps align the efforts of various departments or teams, ensuring that different functions are working together toward the same goals, which is critical for meeting objectives efficiently.  DELEGATION WHAT MAKES IT IMPORTANT? Delegation is the work a manager performs to entrust others with responsibility and authority and to create accountability for results. It is an activity of the organizing function. It’s about assigning the right tasks to the right people, and ensuring that every aspect of the project leverages the strengths and skills of the team. Entrusting your team with the work and the authority Balancing between giving enough autonomy to empower team members and maintaining enough oversight to ensure project objectives are met. TYPES OF ORGANIZATIONAL STRUCTURE The primary formal relationships for organizing is delegation of work and authority. They enable us to bring together functions, people, and other resources for the purpose of achieving objectives. The framework for organizing these formal relationships is known as the organizational structure. Functional Structure Divisional Structure Matrix Structure Network Structure In a functional structure, Various teams work alongside In the matrix style of It’s a newer type of organizational organizations are divided into each other toward a single, organizational structure, structure viewed as less specialized groups with specific common goal. Each of these employees are divided into hierarchical (i.e., more "flat"), more roles and duties. A functional divisions has an executive who teams that report to two decentralized, and more flexible structure is also known as a manages how that branch managers—a project or product than other structures. In a bureaucratic organizational operates, controls its budgets manager along with a functional network structure, managers structure and is commonly found and allocates its resources. manager. In essence, a matrix coordinate and control in small to medium-sized Large companies employ this structure is a combination of relationships that are both organizations. type of organizational structure. various organizational structures. internal and external to the firm.  FUNCTIONAL STRUCTURE A functional organizational structure is divided into various departments covering different organizational aspects. Each department is a functional team that has a leader or department owner. The teams in each department report up to their manager if there are issues or concerns. The department leads then go up the chain to report to their respective managers. DIVISIONAL STRUCTURE The biggest pro of the divisional approach is that each department operates individually but uses the same employee structure, which gives flexibility when attempting to cater to its customer base. The biggest con is that there is often little collaboration between different divisions, which can make sections of a company feel isolated.  MATRIX STRUCTURE A Matrix organizational structure is a little more complex than the other methods we have covered. In matrix structures, teams report to two managers instead of one. For example, a creative team would report to a functional marketing manager and a project manager who oversees projects.  NETWORK Private Sector STRUCTURE LGU Network structure is a flexible and decentralized organizational arrangement where multiple entities, such as government agencies, contractors, non-governmental Public Sector organizations (NGOs), and other Project stakeholders, work together to achieve a common project goal. Instead of Other operating through a rigid hierarchical Gov’t Agencies system, network structures emphasize NGO collaboration, information sharing, and distributed responsibility across various participants. Private Contractors  CENTRALIZATION VERSUS DECENTRALIZATION Centralized Decision Making In a centralized project management system, decision-making authority, planning, and control are concentrated at the higher levels of the organization, government or central agency. Decentralized Decision Making Decentralization involves distributing authority and decision-making power across lower levels of government or local agencies. In this approach, individual departments, regional governments, or local entities have more control over their respective projects. CENTRALIZATION VERSUS DECENTRALIZATION QUESTION Which approach in decision making do you think works better for solving common problems in project management—centralized or decentralized? Why? THANK YOU