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a ORGANIZATIONAL STRUCTURE
Organizational structure depends on the product to be developed. Wheelwright and Clark define a
n continuum of organizational structures between two extremes, functional organizations and project
organizations. Functional organizations are organized according to technological disciplines. Senior
i functional managers are respnsible for allocating resources. The responsibility for the total product is
not allocated to a single person. Coordination occurs through rules and procedures, detailed
z specifications, shared traditions among engineers and meetings (ad hoc and structured). Products that
need a high level of specialized knowledge require a functionally organized structure.
a A light-weighted matrix organization remains functional and the level of specialization is comparable
to that found in the functional mode. What is different, is the addition of a product manager who
t coordinates the product creation activities through liaison representatives from each function. Their
main tasks are: to collect information, to solve conflicts and to facilitate achievement of overall project
i objectives. Their status and influence are less as compared to functional managers, because they have
no direct access to working-level people.
o A heavy-weighted matrix organization exists of a matrix with dominant the project structure and
n underlying the functional departments. The product manager has a broader responsibility.
Manufacturing, marketing and concept development are included. The status and influence of the
a product manager, who is usually a senior, is the same or higher as compared to the functional manager.
compared to functional managers, because they have no direct access to working-level people.
l A project organization exists of product oriented flows: project and teams. The project members leave
their functional department and devote all their time to the project. They share the same location. The
professionals are less specialized and have brioader tasks, skills and responsibilities. The functional
manager is responsible for the personnel development and the more detailed technology research in the
s functional groups.

t Companies can be classified to their organizational structures. Another variable companies can be
classified to is the nature of the projects undertaken. We characterize projects by the number of
r employees needed to perform the tasks, or workload, and the number of tasks that are fundamentally
different in nature. An example of the latter aspect is PCB development and structural design.
u Another way to classify organization structure is by one of the following four categories:
I. The product to be developed is comprehensible for one person. One person is likely to
c have all the knowledge needed to develop Manufacturing and Assembly. The development
department in companies that undertake these kinds of projects are usually very small. If a
t company consists of more than one department, it is usually structured as a functional
organization.
u
II. The product to be developed has a fairly low complexity, but total work is high. These
r kind of products are likely to be developed within one functional department. A research
department may also be an example of a department in which type II projects are
e undertaken. Are more departments involved, then the light weighted matrix structure is
preferable. Employees are involved on a full-time basis. Tasks may be performed
concurrently. The sequence can be determined using the Design Structure Matrix.

III. The product to be developed consists of a lot of different elements, such as software,
H PCB, power supply and mechanical structure. The product is however in the engineering
i phase, i.e. it is clear what needs to be done to get the product into production. Various
d
e

l
disciplines perform their own tasks. These tasks have mostly a low workload. Employees
cannot work full-timee on one project. This creates a complex situation, that may be
compared to a job shop situation in production logistics. Though the comparison between
manufacturing and product development is not accepted by all product development
managers, it may yield good results. Studying each step in the Product Development
Process and fluctuations in workloads reveals ways to reduce variation and eliminate
bottlenecks. It is necessary to view the Product Development Process as a process and not
as a list of projects. Three important findings regarding this are:

1. Projects get done faster if the organization takes on fewer at a time.

2. Investments to relieve bottlenecks yield disproportionately large time-to-market
benefits.
3. Eliminating unnecessary variation in workloads and work processes eliminates
distractions and delays, thereby freeing up the organization to focus on the creative
parts of the task.

Creating cross-functional concurrent engineering teams is the right way to develop

products. However, the pitfall is too many project at the same time, so that key people from
engineering, marketing and manufacturing work at five or more projects at once. This
results in congestion. Striving to work at 100% of the product development capacity
legthens product development lead times enormously. A more realistic percentage is 80%.
Attention must be focused on bottlenecks, these days most commonly found at the software
development side of the project.

IV. The product is complex. Total work is high. Employees can thus participate on a full-
time basis. A project organization is the most appropriate organizational structure for these
kind's of products.
Organizational Structure Types and Design Strategy
Welcome to Organizationalstructure.net. Starting a new organization can be
a hard task, no matter how big or small it may be. Whether you are starting
a new company, business, or you're a school board member, your
organization needs a good structure to keep it going. On our site, you can
find information on strategies, designs, and the implementation of different
types of organizational structure. We can offer examples for businesses,
companies, corporations, schools, restaurants, and more.

The structure of your business will act as the backbone and support
concerning decision making and other processes. Deciding early what type
of organizational system you want to implement will help to ease the stress
of the initial start-up. If each person in the organization knows what he or
she is supposed to be doing, there is less room for confusion and poor
judgment. Perhaps setting up a management team would work the best for
your organization, or perhaps a hierarchy of decision makers would work
better. Either way, setting up a definite structure before important shots are
called makes a difference.

Organizational Structure Corporate Theory

The first step is determining what type of organizational structure you would
like to design and implement. Some examples of structures would be,
functional and hierarchical. Next, you should develop a strategy to start
organizing your business, company, or group. How do you want it to run?
From the top down, or by a matrix of different people, such as a
management department is a big decision. Once you have a few options
picked out, you can decide which option will be optimal to produce the
results you desire.

On this site, you can find assistance on the topics above. Available to you
are designs, models, alternative ideas, and strategy examples for setting up
the structure of your business. Also available are different theories and
opinions surrounding some strategies discussed. As for smaller
organizations, we can offer some public resources to help you in your
specific area. Additionally, simple versions of structures can be found.

If you choose the options that best fit your organization then you're more
likely to succeed in your market. By having the right people in the right
place, it can lead to better networking opportunities, higher sales, increased
interest in your organization, and overall success.

Define or Definition

OS can be defined as the way or method through use of a hierarchy that a

group, business, organization, people or objects collaborate to achieve