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Name-Shyamali Baruah

Roll no. - 66/D/2009


ASSIGNMENT ON THE ORGANIZATIONAL STRUCTURE
The type of organizational structure that should be chosen by a firm depends on the type of project as
well as the objectives and goals that it ultimately aims to achieve.
Types of structure-
FUNCTIONAL STRUCTURE- It performs best when used for routine work functions and the
upholding of quality and work standards. Functional Organization structures assign projects in two
different ways. It involves the project being assigned to a specific functional manager who then
coordinates with the other departments for them to each contribute.
PROJECT ORGANIZATION- It is a structure that is specifically designed for executing project by
isolating unique work and maintaining a strong focus on completing the project.
MATRIX ORGANIZATION-It is a project management structure that evolved from the recognition of
inherent flaws in the Functional Organization and Project Organization structures . The basis for the
matrix organization is an endeavor to create synergism through shared responsibility between project
and functional management.
Advantages and disadvantages of organizational structures are-

STRUCTURE
ADVANTAGES DISADVANTAGES
TYPE
Chain of command is linear. Slow response time.
No duplication of activities. Does not facilitate complex projects.
Functional Functional excellence. No reward for performance.
Lack of customer focus.
Lack of individual accountability.
Control over resources. Cost-inefficiency
Tailor made for complex projects. Low level of knowledge transfer.
Dedicated team
Customer responsiveness. Ceases to exist when project is over.
Cross functional integration.
Useful for handling multiple projects. Dual reporting relationship.
Efficient utilization of resources. Need for balance of power.
Experts available for the projects. Additional costs.
Matrix
Reservoir of knowledge and skills. Stressful.
Customer focus.

The above table gives a clear idea of the about the various organizational structures and their
advantages and disadvantages.

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