Organisational structure refers to the pattern of relationships among the various components exiting in an organisation. It establishes the relationship between individual occupying various positions in the organisations. The report describes the challenges faced by the project manager when dealing with different kind of organisational structure. The study starts with a discussion on the various types of organisation structure. It further analyses the characteristics of each organisational structure and tries to find out the challenges faced by the project manager for executing the project under different organisational structure.
2. TYPES OF ORGANIATIONAL STRUCTURE
The structure of an organisation depends on various factors. It can be seen that in most of the oganisations the structure is not predetermined but it is evolved with time. The study carried out by Pearson, 2010 states that the external environment of the organisation plays an important role in deciding the structure of any organisation. Factors like customer mix, competitor actions, government regulations and policies, economic conditions, availability of resources and technology plays pivotal role in formulating the organisational structure (EGPL, 2004). The structuring of organisations can be carried out based on functions, projects or combining both. The different types of organisational structure are given below.
a. Functional organisation
Functional organisations are structured by grouping people performing similar activities (Pearson, 2010). All activities connected to a particular function are placed under one unit. Sub units are created under units to cater to the different activities coming under one unit. This results in the organisational structure to look like a pyramid as shown in Figure 1. The functional organisational structure offers the maximum flexibility and efficiency in the usage of staff (Bobera, 2008). The allotment of an individual for a particular function increases the efficiency in the long run which helps to maintain the intellectual of the organisation. The formation of structure in terms of structure helps to avoid duplication of activity.
Figure 1 Functional organisational structure (Bobera, 2008)
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