Cerberus Corporation: Business Analysis

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Cerberus Corporation has a traditional functional organisational structure in place which needs to change in order for most of the identified problems to be resolved. “A functional organizational structure (Clements & Gido, 2015:436) is one in which individuals are organized in groups that perform the same function or have the same expertise or skills.”

4.1. Functional organisation vs. Matrix organisation
With the functional organisation, project teams can be formed whenever deemed necessary to work on internal company projects. In most cases, one of the team members or functional managers will take on the role of project manager. The elected project manager may not have the necessary skills or expertise to function as a project manager and this will lead to all sorts of issues on the project. “If there is conflict among the team members, it usually works its way through the organisation hierarchy to be resolved, slowing down the project effort.” “
Because projects are not a part of the normal routine in a functional organisational structure, it is necessary to establish a clear understanding of the role and responsibilities of each person assigned to the project team.” (Gido & Clements, 2015: 437).
These and other problems can be easily resolved by adopting a matrix organisational structure. As described in (Gido & Clements, 2015:441), “the matrix
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It oversees and coordinates multiple projects. It can help to resolve priority conflicts between projects and can facilitate decisions regarding the priority among projects. The project management office may also provide project management training, provide administrative support staff for projects, establish consistent procedures, and develop best practices and templates for planning, monitoring, and controlling
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