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Organizational Structures for Projects

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Projectized Organizational Structure

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Characteristics: Teams are organized by projects, limited or no functional departments. Advantages: Project focus, full-time team members, strong project identity. Disadvantages: Limited resource sharing, potential inefficiency between projects, possible lack of home for team members after project completion.

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Flat Organizational Structure

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Characteristics: Few or no levels of middle management, direct communication. Advantages: Faster decision-making, increased employee involvement. Disadvantages: Potential for role confusion, difficult to maintain in large organizations.

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Process-Based Organizational Structure

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Characteristics: Organized around end-to-end workflow processes. Advantages: Focus on process improvement and efficiencies, clear customer focus. Disadvantages: Can create silos within processes, may not be flexible to changes outside the process.

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Functional Organizational Structure

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Characteristics: Hierarchical structure, departments based on specialty, clear career paths. Advantages: Specialization, clear paths of career advancement, efficiency within functions. Disadvantages: Silos and potential for inter-departmental conflict, lack of focus on the overall project.

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Team-Based Organizational Structure

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Characteristics: Formation of teams for specific tasks, often cross-functional. Advantages: Collaborative environment, collective problem-solving. Disadvantages: Possible duplication of efforts, challenges in managing multiple teams.

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Divisional Organizational Structure

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Characteristics: Organization is divided into semi-autonomous units or divisions. Advantages: Focus on specific products/services/markets, greater accountability, quicker response to market changes. Disadvantages: Duplication of resources, potential for unhealthy competition between divisions.

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Boundaryless Organizational Structure

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Characteristics: Minimization or elimination of hierarchical boundaries, highly flexible. Advantages: Adaptability to change, foster innovation. Disadvantages: Lack of clarity in roles, potential for chaos without clear guidelines.

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Matrix Organizational Structure

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Characteristics: Blends functional and projectized structures, dual-reporting relationships. Advantages: Efficient resource allocation, flexible and dynamic team structure. Disadvantages: Complexity in management, potential for conflict between project and functional managers.

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Holacratic Organizational Structure

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Characteristics: Decentralized management, distribution of decision-making. Advantages: Empowerment of individuals, enhanced innovation. Disadvantages: Complex to understand, may not fit traditional industry norms.

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Network Organizational Structure

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Characteristics: Centralized core with outsourced operational activities. Advantages: Flexibility and scalability, focus on core business. Disadvantages: Dependence on external parties, potential issues with quality control.

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