Project Management Organizational Structures paper - Essay Example

The functional structure is often referred to as classical or traditional organizations which were developed from Marx Weber’s classical theory (Braden). In these types of organizations the power structured follows a vertical chain of command that is clearly defined. The general manager has control over the entire operations. All the division bosses report to him and the employees within each department report to the division managers. Employees working within this structure have a clear understanding of the power system.

This is beneficial and it enhances loyalty among the workers since they understand who will help them move up in the corporate chain. The system itself is very organized and this simplifies the budgeting and control duties. A company establishing a new operation oversees would benefit from this model. In such a scenario management does not have a clear understanding on how the culture affects the employee’s productivity. A tight control is necessary to gear the employees into becoming a synergic unit with its unique corporate culture.

Another situation in which the traditional corporate structure is beneficiary is in very large companies with lots of human resources. There are some disadvantages to a functional corporate structure. The model is not good at responding to the needs of the customers since no one in particular within the organization is focusing on their needs. Each department focuses in their particular task and the model does not allow effective communication between departments. The lack of communication makes the structured not suited for efficient project teams.

There is very little project planning, reporting and practically no project authority. Innovation is not encouraged in this system. The different departments concentrate their efforts on their specific work tasks and do not visualize the importance of project teams. A pure product or projectized organizational structure is a