Question

ASSIGNMENT:

Using the web or other resources, find examples each of a functional, matrix, and project-oriented organization. Prepare a five-minute presentation about the similarities and differences of these organizations. Describe how these organizations affect and impact the project manager, project team, and project. Why is this important?

Answer 1

Slide 1.

Functional Organisation

Firms like Nestle use Functional Structure

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Slide 2.

Characteristics of a Functional Organisation

• The employees are assigned to a function and not to a client
• This develops better expertise
• There is more knowledge exchange between peers
• However there is less accountability
• Inter-functional communication is also very less
• Role of project managers is practically absent
• Project teams are slower in comparison to deliver the outcome

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Slide 3.

Matrix Organization

Firms like Starbucks and Walmart use more of a matrix structure.

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Slide 4.

Characteristics of a Matrix Organization

• The employees are assigned to a function and as well as to a product (client)
• Better utilization of organisation's resources
• The communication both up and across
• However, there is confusion among employees due to two bosses
• Project Managers (under Product Managers) has less control over team members due to this dual supervision
• Project Teams are comparatively faster in delivering output

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Slide 5.

Project-Oriented Organization

Most service providers like EXL and TCS work on Project-Oriented Structure

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Slide 6.

Characteristics of a Functional Project-Oriented Organisation

• Main focus is the client and the project
• Project Manger has the most control and accountability
• Project delivery is the fastest
• However, project team might be worried about their employment after the project
• There is a high probability of duplication of effort if projects are similar
• Expertise of team members in their function develops due to experience and not due to interaction with peers

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Slide 7.

Conclusion

• Each type of organization has its own strengths and weaknesses
• Projects are fastest delivered in project based organisations while the expertise and knowledge is higher in functional organisation. The matrix organisation finds the balance between the two
• Based on its requirements, an organisation will lean towards any of these structures
• In today's time, organizations do not stick to a single structure. They follow a mixture of these structure to derive the best outcome
• As a result, a project manager does not always get full control of the project team. He/she needs to adapt in order to complete the project on time.

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