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Organizational Structures for Projects
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Projectized Organizational Structure
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.
Flat Organizational Structure
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.
Process-Based Organizational Structure
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.
Functional Organizational Structure
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.
Team-Based Organizational Structure
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.
Divisional Organizational Structure
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.
Boundaryless Organizational Structure
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.
Matrix Organizational Structure
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.
Holacratic Organizational Structure
Characteristics: Decentralized management, distribution of decision-making. Advantages: Empowerment of individuals, enhanced innovation. Disadvantages: Complex to understand, may not fit traditional industry norms.
Network Organizational Structure
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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