Organizational Structures
Organizational structures are the frameworks within which projects are executed. It mainly refers to how the people, roles and responsibilities are arranged within an organization. The structure of an organization influences key aspects of Human Resource Management (HRM), such as decision making, communication, and allocation of resources. The commonly followed organizational structures include functional, matrix and projectized structures. The functional structure is organized according to job function, which can lead to inefficiencies in large projects involving several departments. In matrix structures, employees report to both functional and project managers, allowing for a more integrated approach to HRM. The projectized structure is mainly project centric and resources are focused strictly on project deliverables.
Guide: Organizational Structures & PMBOK Guide Seventh Edition
Organizational Structures is a key element within the scope of the Project Management Body of Knowledge (PMBOK) particularly concerning the Human Resource Management aspect. Understanding its importance is not just essential for daily work but also for project management professional (PMP) examinations.Importance: Organizational Structures determine how roles and responsibilities are assigned within an organization. This impacts reporting relationships, workflow and project management structure. It's crucial in formulating team dynamics, resource allocation, and communication channels, all critical components in project management. What it is: Organizational Structures represents the arrangement of components within a company such as departments, teams and individuals and their interaction. The three common types of Organizational Structures are Functional (where various functions exist separately), Matrix (combination of projectized & functional structures) and Projectized (groups are organized based on specific projects).How it works: It lays out the hierarchical arrangement of lines of authority, communication, roles and responsibilities, and organizational structure type affecting the management style used in projects. With respect to PMBOK, the influence of Organizational Structures increases with the level of projectized nature of the organization.Answering Questions on Organizational Structures:1. Gain an in-depth understanding of the three types of structures, their characteristics, advantages, and drawbacks2. Understand how these structures influence project management and how the authority of the Project Manager varies3. Learn how to apply the concepts while answering situational questions. Exam tips:- Familiarize with the implication of organizational structures on projects & project managers' authority- Understand the terms organic, functional, weak & strong matrix, balanced matrix, projectized and composite organizational structures- For situational questions, remember that the structure determines the power, roles, and communication channels.
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