ORGANIZATION STRUCTURE 1

TYPES Line Organization Functional Organization Line and Staff Organization Project Organization Matrix Organization 2

APPLIED ELECTRONICS ENGINEER (START-UP ENGAGED IN MANUFACTURING PLC) ENGINEER 1ENGINEE R 2 WORKER 1WORKER 2WORKER 3WORKER 4 3

FUNCTIONAL ORGANIZATION MANUFACTU RING QUALITYMKTGFINANCE WORKERS APPLIED ELECTRONICS ENGINEER (START-UP ENGAGED IN MANUFACTURING PLC) 4

LINE AND STAFF ORGANIZATION MANAGER FINANCE MKTG WORKERS APPLIED ELECTRONICS ENGINEER (START-UP ENGAGED IN MANUFACTURING PLC) 5

PROJECT ORGANIZATION A project is a one-time task. Examples: construction of roads, bridges, dams etc. OR setting up factories Well defined specifications or targets. Has definite starting time, ending time, budget schedules. Project is unique in character. Each project present different and unfamiliar technical and management challenges. 6

CREATION OF A PROJECT ORGANIZATION From an existing organization, specialists from different departments are drawn for the new project. These persons are relieved of their present duties. They go back to their parent departments after completion of the project. If specialists are not available internally, they are recruited only for execution of the project. Project organization is fully responsible for planning, design, implementation and evaluation. The project organization is disbanded after the completion of the project. 7

PRESIDENT GENERAL MANAGER ENGINEERING ADMINISTRATION CONSTRUCTION 8

ADVANTAGES High Operational efficiency. Make the best use of specialists available in the organization. Both project organization and the existing organization work independently without interfering with each other. Project personnel are able to give their full attention to the project activities. Projects are successfully executed by creating project organization. 9

DISADVANTAGES Project Manager has to be versatile since he has to deal with different sets of people for different projects. Experience gained from one project may not have relevance to another project. If project is of short duration, it is difficult to hire specialists from outside. Conflicting opinions from the specialists will cause delay in decision-making, affecting project schedule. There may be personality conflicts among specialists. 10

MATRIX ORGANIZATION a company has to handle a variety of projects big and small. Combination of project and functional organization. Horizontal structure represents the project organization. Vertical structure represents the functional organization. During the period of a project, an executive will have two bosses, one is the project manager and the other is the functional head. He will report to both of them in matters related to the project and function. On Completion of the project, executives go back to their parent functional departments and await placement in another project. Company is not disbanded after completion of one project. 11

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ADVANTAGES Very efficient use of functional specialists according to the complexity of the project. More experienced and efficient executives can be placed in complex project. Organization structure is more flexible. High Operational efficiency of a project organization is maintained. With the permanent nature of the company, it is able to retain specialists even after completion of the project. Better job security and permanency for the employees. 13

LIMITATIONS It violates the principle of unity of command and scalar chain of authority More complex organizational relationship. Project Manager has less control over the project group under him. 14

APPLICATION A matrix organization is established when a company has to take up several projects, big and small. On completion of one project, executives move on to the next project. 15

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