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smu assignment summer 2014 answers mba MB0049 - PROJECT MANAGEMENT Q1. There cannot be a single ideal structure for all organisations as different organisations have different size, environment, resources, technologies, and goals. There are many different ways in which people can be organised to work on projects. Explain in brief the concept of organisational structure.

Answer:  The most common types of organization structures are:
·         Line Structure
·         Line and Staff Structure
·         Functional Structure
·         Project or Matrix Structure
Usually, the first two types of organizational structures are found in military form of organizations and conventional business houses respectively, where joint family system of business exists.

1. Functional-type organization
The functional type structure organizes teams of employees based upon the specific jobs within the organization. The employees work in departments based on what they have to do such as
marketing department, purchasing department, maintenance department, HR department and finance department. Figure depicts the organizational chart of functional-type organization.
Advantages of functional structure
·         Specialisation
·         Economy
·         Efficiency
·         Up-to-date knowledge
·         Efficient control
·         Expansion
Disadvantages of functional structure
·         Confusion
·         Costly
·         No unity of command
·         Conflicts
·         Difficulty in fixing responsibility
·         Slow process
Examples of functional-type organization
·         Car manufacturing companies
·         Electronics manufacturing units
·         Brick kilns
·         Hospitals
·         Hospitality units
2.Project-type organization
In a project-type organizational structure, the employees work for different projects in a team-like structure. Examples are construction companies, where different teams work on different projects.
Teams are put together for a project. Each project is headed by a project leader. Each team will have employees to suit its demands and complete the project successfully. Only employees with requisite specialised skills are considered for project teams. These members of project team will join back their parent company once the project gets finished.

Advantages of project-type structure
·         Clear line of authority
·         High level of commitment
·         Swift decision making
·         Simple and flexible
Disadvantages of project-type structure
·         Duplication of effort
·         Cost inefficient
·         Stretching out work during slow periods
·         Low level of knowledge transfer
·         Job insecurity
Examples of project-type organization
·         Rapid transit projects
·         Construction projects
·         IT projects
3. Matrix-type organization
Matrix-type organization is the most common type of project organization. It is the combination of both the functional and project organization structures. It provides functional expertise of the functional structure and the project focus of the project structure.
Advantages of matrix structure
·         Efficient utilisation of resources
·         Expert utilisation of knowledge
·         Job security
·         Quick response

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