PPT 4202 lec 9

8/8/2019 PPT 4202 lec 9

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8/8/2019 PPT 4202 lec 9


Three Types Of Organization

1. Functional

2. Project

3. Matrix

8/8/2019 PPT 4202 lec 9


Functional Organization

8/8/2019 PPT 4202 lec 9


Functional Organization

Used in businesses that sell and produce standardproducts.

Groups consist of individuals performing the same

function. Periodically undertake in-house projects.

Team members can be assigned to the project.

Team members continue regular functional jobs.

Project manager does not have complete authorityover team.

8/8/2019 PPT 4202 lec 9


Functional Organization Advantages

1. Reduces duplication and overlap of

activities.

2. Provides specialization and functionalexcellence.

8/8/2019 PPT 4202 lec 9


Functional Organization Disadvantages

1. Can be insular (narrow-minded).

2. Teamwork is not emphasized.

3. Decisions may be parochial (unsophisticated).

4. Structure can slow communication, problem solving

and decision making.

5. Lack of customer focus.

6. Stronger allegiance (commitment) to function thanproject.

8/8/2019 PPT 4202 lec 9


Project Organizations

8/8/2019 PPT 4202 lec 9


Project Organizations

Used in companies in the project business, not

selling products.

Work on multiple projects at a time.

Project team is dedicated to one project.

Project manager has complete authority over

team. Each project team tends to be isolated.

8/8/2019 PPT 4202 lec 9


Project Organization Advantages

1. Team has full control over resources.

2. Organization is highly responsive to

customer.

8/8/2019 PPT 4202 lec 9


Project Organization Disadvantages

1. Can be cost inefficient.

2. Tendency to stretch out work during slow

periods.

3. Potential for duplication on concurrent

projects.

4. Low level of knowledge transfer.

5. People may be laid off at the end of the

project.

8/8/2019 PPT 4202 lec 9


Matrix Organization

8/8/2019 PPT 4202 lec 9


Matrix Organization

A mix of functional and project organization

structures.

Used in companies that work on multiple projects at

a time.

Provides project and customer focus.

Retains functional expertise.

Individuals can be assigned to various types of projects.

8/8/2019 PPT 4202 lec 9


Matrix Organization (Cont.)

Both project managers and functional

managers have responsibilities.

The

P roject Manager i

sthe intermediary

between customer and company.

The F unctional Manager decides how tasks

will be accomplished.

8/8/2019 PPT 4202 lec 9


Matrix Organization Advantages

1. Allows efficient utilization of resources.

2. Individuals can be moved among projects.

3. Provides a core of functional expertise.4. Facilitates information flow.

5. Team members can communicate with

project and functional managers.6. Customer focused.

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Matrix Organization Disadvantages

1. Team members have a dual reporting

relationship.

2.A

proper balance of power must be

established between project and functional

managers.

3. Conflicts regarding priorities can arise

between managers.

PPT 4202 lec 9

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