Organizational Structures & Project Lifecycle Management
Organizational Structures Explained
Organizations adopt various structures to define roles, responsibilities, and reporting lines. Common types include: Formal, Linear, Functional, Line-Staff, Product/Marketing, and Matrix.
Functional Organization
A Functional Organization applies the principle of functional specialization, where tasks are grouped by function (e.g., marketing, production, finance). This structure emphasizes expertise within specific departments.
Line-Staff Organization
The Line-Staff Organization is a combination of linear and functional structures. It aims to leverage the benefits of both while mitigating their drawbacks, forming an advisory, hierarchical organization. Line authority flows directly from top to bottom, while staff departments provide specialized support and advice.
Product/Marketing Organization
Often referred to as a Divisional Organization, this structure groups all individuals involved in producing and marketing a specific product or a related group of products into a single work unit. This approach focuses on serving particular customer segments or product lines.
Matrix Organization
The Matrix Structure, sometimes called a multi-control system, simultaneously incorporates two types of organizational structures. Employees effectively report to two managers, operating under dual chains of command. One chain typically follows functional or divisional lines, often depicted vertically in organizational charts, while the other might be project-based or product-based.
Characteristics of Functional Organization
- Authority: Functional or divided authority, based on specialized knowledge. No single superior has absolute authority over subordinates; instead, there is partial authority and direct, relative communication.
- Communication: Direct and without intermediaries, ensuring the quickest possible communication between different levels.
- Decentralization of Decisions: Decisions are delegated to specialized bodies or positions.
- Emphasis on Specialization: All departments and roles are highly specialized.
Advantages of Functional Organization
- Maximum specialization.
- Better technical supervision.
- Faster communication within functions.
- Each department performs only its specific activity, leading to efficiency.
Disadvantages of Functional Organization
- Potential loss of command authority.
- Multiple subordination, leading to confusion.
- Tendency towards competition between specialists.
- Increased tension and conflict between departments.
Project Phases and Lifecycle Management
Dividing a project into distinct phases, stages, or sections allows for better control and more effective management of time, cost, and resources. A typical project lifecycle identifies the following key stages:
1. Project Initiation & Needs Assessment
Projects originate from identified needs. By thoroughly detecting these needs, we can make informed decisions regarding the required resources, the various needs to be met, the estimated cost of satisfying them, and the relative importance of fulfilling certain needs while potentially deferring others.
2. Planning
The planning stage establishes a clear roadmap, detailing how to progress from the project’s inception to its completion. Often, an informal pre-plan (a general idea of the project) precedes formal planning, which involves identifying key project milestones, defining specific tasks, and establishing their interdependencies.
3. Implementation
During the implementation stage, the formulations, designs, and strategies developed in the previous planning step are translated into tangible deliverables. The goal is to produce something that directly addresses and meets the identified project needs.
4. Control
As the project is implemented, continuous control of the process is essential. This involves regularly examining progress, reviewing the project plan, and identifying any significant discrepancies between planned and actual outcomes. While variations are common, the key is to determine if these variations are acceptable and remain within the defined project scope and parameters.
5. Evaluation
Similar to monitoring, evaluation serves an important feedback function. It is an objective and ongoing examination to determine the project’s status in relation to the specific objectives defined at the outset. Evaluation takes place both during the project and at its conclusion. Mid-project evaluations can be particularly valuable, as their results can be used to adjust the project’s course and improve outcomes.