One of the challenging issues of project management is the contradiction of fund

Question

One of the challenging issues of project management is the contradiction of fundamental design principles associated with traditional organizations. Projects are unique, one-time efforts with a distinct beginning and end. Most organizations are designed to efficiently manage ongoing activities. Considering the fact that project success is directly linked to the amount of autonomy and authority project managers have over their projects, how would you decide on the type of organizational structure for effective management of a proposed multi-story building facility outside of the focal firm’s location? In your response outline the weaknesses and strengths of your proposition.

Explanation / Answer

INTRODUCTION:

Every organization deals in number of projects from time to time along with involving itself in its daily activities. All the members of the project team gets involved themselves with the project and makes sure that the deadlines are achieved on time. There are number of organizational structures that can be followed keeping in mind the considerations of the said project.

ORGANIZATIONAL STRUCTURE:

As stated in the above example, I need to select the best possible organizational structure for the effective management of a proposed multi- story building facility. It is important to understand the meaning of Organizational Structure. Organizational Structure refers to the type of structure or hierarchy followed in any organization so as to achieve the goals, standards, and activities set in advance. The type of structure to be followed is pre defined well in advance and then need to be followed by everyone in the organization.

DECIDING ON THE TYPE OF ORGANIZATIONAL STRUCTURE:

One cannot apply all types of available organizational structures in its organization. It becomes very important to choose upon the best type of structure that can fit well with the working of the organization. For an effective management of a proposed multi-story building facility outside of the firm’s location the best type of organizational structure would be MATRIX form of organizational structure.

REASON FOR SELECTING MATRIX FORM OF STRUCTURE:

The matrix form of organizational structure is selected in order to manage the above stated task. Firstly let us understand what matrix form of organization is. Matrix form of organization is used when a company is involved in dealing with types of projects along with its daily operations. It is the structure where the subordinates are under the control of both functional as well as project managers. A project team is formed out of the employees from within the organization itself and then a project manager is assigned to them. This does not mean that the authority of the functional manager will deteriorate or finish. The subordinates will be handled simultaneously by the functional as well as project managers.

The reasons to select Matrix structure are as follows:

MERITS OF SELECTING MATRIX STRUCTURE:   

DEMERITS OF SELECTING MATRIX STRUCTURE:   

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