Division serves as base for  technological continuity

Disadvantages Functional Organization 

• The client is not the focus of activity and concern

Advantages of a Pure Projectized Organizations

 

YouTube Video OS1 -

 



Figure OS7 Projectized Organizational Structure



Figure OS8 Projectized Organizational Structure

 



Figure OM2

 

 

YouTube Video OS3 - Craig A. Stevens - POD 2 Cast on Organic Vs. Mechanistic Organizations

 

 

 

 



Figure OM3

 

---

 

Structural Dilemmas

 

YouTube Video OS4 - Craig A. Stevens POD cast on Structural Dilemmas in Designing Organizations

 

 

Bolman, Lee G. and Terrence E Deal, Reframing Organizations, Artistry, Choice and Leadership, 3rd Edition, Jossey-Bass, John Wiley & Sons, Inc. 2003



Figure  SD1



Figure  SD2

 



Figure  SD3

 

Higher degrees of differentiation is often found in more high-tech organizations.  Look at the levels of management, if the ranks are filled by people with different backgrounds, experiences, and years of experiences, then you have a high level of differentiation.  As a norm, products and services are becoming more complex.  As an example of product complexity, today we do not have as many pure mechanical or electrical products.  Things are becoming more Electro-Mechanical. Therefore not only is more differentiation required in the marketing and on a competitive or strategic level, but this also leads to more differentiation in the organizational design.

 

YouTube Video OS5 - Craig A. Stevens - POD cast 2 on Structural Dilemmas in Designing Organizations

 

 

 



Figure  SD4



Figure  SD5

YouTube Video OS6 - Craig A. Stevens - POD cast 3 on Structural Dilemmas in Designing Organizations

 

 

 



Figure  SD6



Figure  SD7

 

The quality of the state of collaboration is very important.  How hard it is to work together is a complicated subject.  As it relates to organizational structural issues, if Differentiation is high, then Integration needs to also be high.  We will need more of a multidiscipline team.  This is a very dangerous thing for managers.  Because only the team knows if the formula we use is right and only after they have experienced the effects.  The leaders/managers must become more like referees or facilitators.  Managers have to respect the team and fairly call it as they see it.  However in low tech organizations, “chain of command” becomes more acceptable and logical.   

 



Figure  SD8

YouTube Video OS7 - Craig A. Stevens - POD cast 4 on Structural Dilemmas in Designing Organizations

 

 

 



Figure  SD9



Figure  SD10

---

 



Figure SD11



Figure SD12

---

 

Mintzberg's Structural Configurations

 

YouTube Video OS8 - Craig A. Stevens  - POD cast on Mintzberg's Organizational Configurations

 

 

Mintzberg’s (1979),Prentice Hall, Upper Saddle River, N.J. as reported by Bolman, Lee G. and Terrence E Deal, Reframing Organizations, Artistry, Choice and Leadership, 3rd Edition, Jossey-Bass, John Wiley & Sons, Inc. 2003



Figure M1

 



Figure M2

YouTube Video OS9 - Mintzberg On Operations as a part of Strategy

 

 

 

 



Figure M3

 



Figure M4

 



Figure M5

 

 

 



Figure M6

 



Figure M7

 

Often what happens when a division loses market share and starts to shrinks… management will move it back to a larger organizational unit.  This creates more problems and often creates more mechanistic controls which in turn may lower the probability of success.

 



Figure M8

 



Figure M9

YouTube Video OS11 - Craig A. Stevens Intro on Organizational Structures

 

 

Traditional Organizational Structures

 

According to the AMA (1998) - 90% of Traditional Organizations Fall Into three types or a mixture of these three types.

• Hierarchical/Functional

• Matrix

• Task Force

Gary Dessler, in his book Organization Theory Integrating Structure and Behavior, defined three basic structures: 

1. A "Functional Structure" which may be process oriented and more mechanistic. In a functional organization, revenue derives from operations [not projects].  Staff is grouped by specialty, which gives the employees one clear superior.  However they may still perform projects.  The Project Manager (PM) has little to no authority.  Therefore it is likely the PM is actually a more of a Project Coordinator.

2.  A "Divisional Structure" which could be divided by products, geographical locations, or industry. A large division could look like a functional structure where a smaller division could be altogether different, being more organic in nature. 

3. A "Matrix Structure" which is designed around projects. Each of these structures has significance in differing environments. Other writers also have described other organizational structures. 

Dessler, Gary. Organization Theory Integrating Structure And Behavior." Prentice-Hall, Inc., 1995, p. 124.

---

Functional Organizational Structures

 



Figure OS1, Functional Organizations with a PM at staff level.

 



Figure OS2, Functional Organizations with a PM under a a divisional manager and Team Matrixed (But Not. in a Matrix Organizations)

 



Figure OS3, Functional Organizations with a PM under a a divisional manager.

---

 

Advantages of Functional Organization

 

• Maximum flexibility in the use of staff

• Individual experts used by different projects

• Specialists grouped to share knowledge and experience

• Division serves as base for  technological continuity

• Division is the normal path of advancement for individuals

Meredith, J. R., & Mantel, S. J., Jr. (2000). Project management: A managerial approach (4th ed.) [UOP Special Edition Series]. New York: Wiley.



Figure OS4 Dessler on Use of Functional Organization

 

 

 

Gary Dessler, Organization Theory Integrating Structure and Behavior, Pg. 124, Prentice-Hall, Inc. New Jersey, 1995

 

---

 

Disadvantages Functional Organization 

 

• The client is not the focus of activity and concern

• Division tends to be oriented toward the activities particular to its function

• Occasionally, no individual is given full responsibility for the project

• There are often several layers of management between the project and the client

• There is a tendency to suboptimize the project

 

Figure OS5 Dessler on Functional Organization

---

 

Projectized Organization

 



Figure OS6 Projectized Organizational Structure

 

Advantages of a Pure Projectized Organizations

 



Figure OS7 Projectized Organizational Structure



Figure OS8 Projectized Organizational Structure

 

Disadvantages of a Pure Projectized Organizations

 



Figure OS9 Projectized Organizational Structure

---

 

Matrix Organizational Structures

 



Figure OS10 Matrix Organization 

 

 

Advantages of Matrix Organizations



Figure OS11 Matrix Organization 

 



Figure OS12 Matrix Organization 

 



 

Disadvantages of Matrix Organizations

 



Figure OS13 Matrix Organization 

 



Figure OS14 Matrix Organization 

 

 

 

 



---

 

What About the Organizational Driven

 Culture Issues?

 

Any structure involving knowledge workers and/or high technology must be organic and not mechanistic.

 

 



 



 

 



 



 

 

What Organization Fits What Environment?





 



 

 

What do I think will Change?????

 



 



 

Craig's Virtual, Extreme, Organic Organizational 

Structure of the 21 Century....and to Infinity and Beyond. 

 

 

So, I got a little carried away. Click on the slide below to see it explained.

Link to The Organizational Structure of the 21st Century



 

 

Looks funny...but is very similar to SAIC's (a 50,000 person employee owned company) vision.

 



 

Organizational Structures Links:

 

http://sos.state.mt.us/css/BSB/Org_Structures.asp (found by Josiah Wedgewood, UoP 2005)
http://www.analytictech.com/mb021/orgtheory.htm (found by Josiah Wedgewood, UoP 2005)