Individuals perform only tasks in which they are most proficient. Answer B Impact of organizational structure on project management effectiveness Project Management is about managing available resources within constraints of cost, time and performance. Organization structure has a big impact on project management effectiveness, as it influences the organizational culture, communication, and chain of command. According to PMBOK guide by Project Management Institute (2004), project management may be defined as a process of achieving project goals by effectively managing individual skills, communication and coordination with the help of organizational structure. Projects management in pure product organization In pure product organization the product manager has complete authority to manage all project resources including allocation and merit reviews.
Also, they can’t be segregated. As the managers of a company are carrying organizing the work to have a systematic working and utilizing the resources, they create a formal structure. It will help to determine and illustrate the assignment that should be done by individuals and how to coordinate with each other. On the hand, the informal structure will be built automatically while the groups are interacting with each other. In fact, the informal structure is helping the work to be done
• With the need to bond, people feel motivated when they work in teams. • Teams also increase accountability to fellow team members, hence it improves performance and coworkers become benchmarks of comparison. • The limitations include the following: • They have additional cost called process losses- cost of developing and maintaining teams. • There might be differences of opinions from time to time making decision process slow. • Developing and maintaining team requirements divert
For the big and small business organizations, it has become very much problematic to maintain the balance in each and every department. Burnes (2005, p.875) put forward that with the advancement of technology, the problems are also increasing in the business organization. It has been found that the employees of the business organizations are not enough trained or skilled. So, it becomes very difficult for the employees to perform their best in the organization. There is lack of communications between the different departments.
Is the design of an organization and it shows how the organization works within an organization towards the accomplishment of objectives and Business can be structured by function, product, service, and geography. In short, also it will be determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management, thus the structure will depends on the organization's objectives and strategy. In a centralized structure, the top layer of management so has most of the decision will making power and has tight control over departments and
This helps to stay organized and know when more should be reordered or produced. - Motion: By evaluating the movement of employees in the office setting, the excess motion could be decreased by rearranging the area. This will cut down the waste and make them become more efficient as well. - Defects: Within administration there is often processing errors. These can also be eliminated with extensive training and will cut down on waste and improve customer satisfaction.
Size- Formal group are often in larger size. This is because employees of various field or specialization are grouped together to achieve organization goals. Informal group size tend to be smaller in size as its purpose is just satisfy employees need which cannot be obtain in formal group. Smaller in size gives advantages to members to interact better within the group. 4.
Without efficient management, it becomes difficult for information to feed up and down the chain of command. Staffs feel less empowered. Presently, the company has various front-end and back-end systems running separately. It results in a clash between different processes that ensure that the company is running easily. Inventory management is suffering due to lack of accurate data from sales.
This form of departmentalisation may sometimes create problems if individuals within these groups are more concerned with their own specialized area than with the overall business. There are advantages, but also disadvantages within a Functional departmentalisation: Advantages: • Functional departmentalisation represents a much more natural and logical manner of grouping diverse functions of an organisation in groups. • Such grouping guarantees specialisation. When similar activities are grouped together, specialized skill and knowledge are acquired. This can be used in running the business more efficiently by utilizing manpower and resources better.
Functional The functional structure focus on principles of specialization where people will be grouped in broad business activities such as marketing, production, human resources and finance. It is an organizational structure formed by grouping together all activities into functional departments and putting each department under one coordinating head. Each specialist have functional responsibility and are permitted to direct and control the salesperson through their immediate superior. Functional structure is well suited for larger organizations with diversified activities and operations that req1uire a high degree of specialization. Advantages Functional structures results in occupational specialization as a particular department is only concerned with one aspect of activities and workers receive the expert guidance of specialist.