W2.0_Haitham Al Raisi_organization structure


  1. Problem Definition

The structure of an organization is the manner in which various sub-units are arranged and inter-related. The following blog discussion is about the change in our organization structure which happened because of the big growth and expansion in managing more regional airports. The importance of any organization structure is to provide guidelines on hierarchy, authority of structure and relationships, linkage between different functions/departments.

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  1. Development of Feasible Alternatives

The three organization structures which mostly implemented:

a)      Functional

b)      Project based

c)      Matrix (Weak, Balanced & Strong)

(Strong matrix is most preferable)[3]

  1. Development of the Outcome for Alternative

There are three main organizational structures that affect many aspects of a project, including:

  • The project manager’s authority
  • Resource availability
  • Control of the project budget
  • The project manager and administrative staff roles [4]

 

  1. Selection of Criteria.

a)      Functional organizational structure.

The functional organizational structure usually gives the top management full authority and all unites/departments report to them. It also clusters those with similar knowledge in the same place as this leads to the development of specialists. [1]

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b)      Project-based organizational structure.

In the Project-based organizational structure the program manager is totally independent and do not exist under functional departments. The PM has direct control and sole management authority over project operations. [2]

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c)      Matrix organizational structure.

Matrix organizational structure is the practice of managing individuals with more than one reporting line.

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  1. Analysis and Comparison of the Alternative.
————— Functional Weak Matrix Balanced Matrix Strong Matrix Projectized
Description Traditional organization with a direct supervisor. The PM and FM share responsibility, with the FM having more authority. The PM and FM share responsibility, with each having equal authority. The PM and FM share responsibility, with the PM having more authority. Projects do not exist under functional departments. The PM has sole management authority.
Authority of project manager Very low.  ———— Low to medium. Medium to high.   ————
Resource availability Very low.   ———— Low to medium. Medium to high.   ————
Project manager involvement Part-time. Part-time. Full-time. Full-time. Full-time.
Staff involvement Part-time. Part-time. Part-time. Full-time. Full-time.
Advantages The FM holds accountability for the project. The PM gets some authority to manage the project. The PM and FM share the responsibility of the project. The PM gets more authority to assign resources and manage the project. The PM has full authority to staff and manage the project.
Disadvantages The PM holds little or no authority. The FM can see the PM as a threat and cause conflict. The PM and FM can be confused about who manages what. The FM may feel out of the loop. The PM holds accountability for the project.
[4]

6.  Selection of the Preferred Alternative.

Changing from the classic functional organization structure to matrix organization type is the most appropriate selection. As it will provide balanced authority to the PM and even more authority to the PM on assigning his resources which will focus more specialists in the project.

7.  Performance Monitoring and the Post Evaluation of Result.

Since the project is still under expansion stage, implementing the matrix organizational structure is subject to review and further evaluation.

References:

[1] Dana Griffin, Demand Media (n.d.). Functional Organizational Structure Advantages. Retrieved June 14, 2014, from http://smallbusiness.chron.com/functional-organizational-structure-advantages-3721.html

[2] Alfred Sarkissian, Demand Media (n.d.). Project-Based Organizational Structure. Retrieved June 14, 2014, from http://yourbusiness.azcentral.com/projectbased-organizational-structure-17237.html

[3] Albano, C. (2004). Social Networks: Functional, Project and Matrix Structures. Retrieved June 14, 2014, from http://www.leader-values.com/article.php?aid=646

[4] PMBOK (n.d.). Differentiating Functional, Matrix, and Projectized Organizational Structures. Retrieved June 14, 2014, from http://microlps.freewebsites.com/PMP/Que_PMP_Exam_Cram/0789734621/ch01lev1sec10.html

 

 

 

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One thought on “W2.0_Haitham Al Raisi_organization structure

  1. AWESOME case study Haitham and you did a great job following our 7 step process, but you are still not getting your citations right yet..

    When you cite using APA format, it is always last name first. There is or should be no excuse why you are getting the formatting wrong as I provided you with an online tool which will automatically format them for you….. http://www.citefast.com/

    Looking forward to another fine posting like this but next time please try to get your citations done correctly…..

    BR,
    Dr. PDG, AACE Annual Symposium, New Orleans USA

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