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Organisations And Structures – Sample Question Feedback

Paul Naybour Paul Naybour

Published: 12th September 2015

Describe 3 types of organisational structure and
the strengths and weaknesses of each 

Functional organisation – A functional
organisation has a structure where there are line managers with direct line
reports underneath them. They have a clear line of authority and the line
reports undertake highly specialised roles without little variety in their
responsibilities. If a project is undertaken in the organisation it has to be
managed by the line managers because they are the only staff with an overview
of the organisation. This type of structure is good for highly operational
organisations where consistency is required, for example, in a care home. A strength
of this structure is that staff are highly specialised and are therefore very
effective in their roles. Another strength is that skills are retained in the
organisation because most people do not move on like they would once a project
is finished. Lastly, this structure provides clear roles and responsibilities
with clear lines of authority so there is less likelihood of staff lacking
clarity of who to report to or what to prioritise. Conversely, the weakness of
this structure is that there is no variety in work so staff can lack motivation.
Another weakness is that staff can be under-utilised as resources are not
shared across teams. Finally, this structure is inflexible so the workforce
cannot be deployed where they are most needed.

Project organisation – A project
organisation has a flexible structure where the project managers are
responsible for all the activities of the organisation. Project managers will
manage project teams to achieve the objectives of the organisation and these
teams will be disbanded once the project has finished. This might be an
appropriate structure for organisations that take on contractual work. A
strength of this type of structure is that it has a clear focus on the project
objectives; the project manager is not distracted by line management
responsibilities and project staff are not distracted by duties not related to
the project. Another strength is that staff know that the project manager is
the person with the authority so there is no confusion for staff on who to
report to. This is a highly flexible structure enabling the organisation to
adapt to changes quickly, creating and changing projects as necessary. The
weakness of this type of structure is that skills are not retained in the
organisation because people leave once the project has finished. Another
weakness is that there is little or no career progression and job security
which can lead to an unmotivated and possibly disloyal workforce. Another
weakness is that there is a chance of under-utilisation of staff if they are
not used across projects and just operate in their single project.

Matrix organisation – A
matrix organisation has a mixture of both the functional and project
structures. The organisation would have teams of people employed using the
functional management structure undertaking operational duties and also project
managers who are employed to deliver projects within the organisation. The
project managers can utilise the staff in the existing teams to create their
project team and both the project manager and the line manager would have
authority over staff. A strength of this structure is that it is flexible so
staff are utilised across the organisation as needed. Staff have variety and an
opportunity to progress and develop so they are likely to be more motivated and
engaged in the organisation. Another strength is that skills are retained in
the organisation because people can be deployed where they are needed and when
projects finish they can continue with their day to day duties or can be
allocated to a new project. A weakness of this structure is that without proper
resource management, staff could be over-stretched. Another weakness is that
there will be conflicting priorities for staff between their day to day duties
and project duties. This could be stressful for staff and lead to dissatisfaction.
Finally, another weakness is that there is no clear line of authority which
creates an opportunity for conflict.