Project Based Organizations

3.1 A FRAMEWORK: TYPES OF ORGANIZATIONS The purpose of this section is to describe a stand out based organization and comp are it to other canonical organization types: operating(a) and matrix organizations. Many companies will non perfectly fit either of these definitions. Yet in or so cases one will be able to identify the primary organization type that most closely matches a alliances structure. 3.1.1 FUNCTIONAL ORGANIZATION A functional organization groups employees and activities by functions (e.g. marketing, engineering, finance). Each function is typically led by a function manager, who reports to the senior management of the company. A key prefer of functional organizations is that knowledge, skills and facilities for each functional area are consolidated. This promotes economies of scale. In addition employees develop in-depth functional skills. (Daft, 2007) This makes the functional organization advantageously suited for mass production of consumer goods and other industries where specialization of functions and scale effects are key (Hobday, 2000). A primary(prenominal) impuissance of the functional organization is its rigid structure and low plain coordination (between functions). This makes it slower to respond to environmental changes and specific customers requirements. (Daft, 2007) 3.1.

2 MATRIX ORGANIZATION A matrix organization groups employees and activities simultaneously by both: functions and major(ip) cross-functional projects. In a balanced matrix organization administration and responsibilities are shared equally between function managers and project managers. Function managers and project managers report to the senior management of the company. (Hobday, 2000) in general employees in a matrix organization report to the functional managers. This leads to the key weakness of a matrix organization: Employees and resources are often torn between functional and project demands (Lindkvist, 2004). The main advantage of a matrix organization is the combination of scurrying market... If you want to get a full essay, order it on our website: Orderessay

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