Daft (2001) denominates this organizational structure as horizontal structure. He remembers that this structure has the following characteristics: i) structure is created around cross-functional core process rather than functions, projects, product or geography, ii) demands a process owner, who has responsibility for each core process, iii) people on each the team have the skills, tools and authority to decide, and iv) effectiveness is measured by end-of-process performance objectives (based on the goal of bringing value to the customer)
2.4. Project Structure
We consider as a non perennial formal way to group people and activities into work team for developing a particular project. As known, a project is unique, it has a start and an end …show more content…
In this organizational structure resources (especially, people) are shared between functional structure and horizontal structure, divisional structure or project structure. Vasconcelos and Hemsley (2002) remember that in innovative established firms a matrix structure is more regular. In this way, project structure and functional are implemented simultaneously, as shown in figure 5.
According to this illustrative figure the matrix structure permits the firm to create formalized project teams responding directly to project manager – vertical axis – and at the same time to the functional divisional responsible – horizontal axis. For instance, the project B team comprises employees from different functional structures and they are responding to the project manager B, while their participation is necessary to the project. In this way, the employees experience dual authority, which can be frustrating and confusing. On the other hand, Jones (2010) remembers that this organizational structure provides an opportunity to employees to acquire either functional and management …show more content…
6 – Illustration of two hypothetical hybrid structure charts
The first one, as the author said, for instance, occurs “when a corporation grows large and has several products or market, it typically is organized into self-contained divisions of some type. Functions that are important to each product or market are decentralized to the self-contained units. However, some functions that are relatively stable and require economies of scale and in-depth specialization are also centralized at headquarters” (p.112).
The second one is viewed as a solution when, for example, a procedural organizational structure is the best alternative to obtaining a faster and more efficient approach to improve some specific service as appointed by Daft (2001). He highlights that several teams, composed of multiskilled employees, focus on core processes such as parts supply and logistics, product services and technical support. Although the firms maintain a functional structure for specialized activities to all organization, such as, finance, strategy, communication, human resources.
2.7. Network
2.4. Project Structure
We consider as a non perennial formal way to group people and activities into work team for developing a particular project. As known, a project is unique, it has a start and an end …show more content…
In this organizational structure resources (especially, people) are shared between functional structure and horizontal structure, divisional structure or project structure. Vasconcelos and Hemsley (2002) remember that in innovative established firms a matrix structure is more regular. In this way, project structure and functional are implemented simultaneously, as shown in figure 5.
According to this illustrative figure the matrix structure permits the firm to create formalized project teams responding directly to project manager – vertical axis – and at the same time to the functional divisional responsible – horizontal axis. For instance, the project B team comprises employees from different functional structures and they are responding to the project manager B, while their participation is necessary to the project. In this way, the employees experience dual authority, which can be frustrating and confusing. On the other hand, Jones (2010) remembers that this organizational structure provides an opportunity to employees to acquire either functional and management …show more content…
6 – Illustration of two hypothetical hybrid structure charts
The first one, as the author said, for instance, occurs “when a corporation grows large and has several products or market, it typically is organized into self-contained divisions of some type. Functions that are important to each product or market are decentralized to the self-contained units. However, some functions that are relatively stable and require economies of scale and in-depth specialization are also centralized at headquarters” (p.112).
The second one is viewed as a solution when, for example, a procedural organizational structure is the best alternative to obtaining a faster and more efficient approach to improve some specific service as appointed by Daft (2001). He highlights that several teams, composed of multiskilled employees, focus on core processes such as parts supply and logistics, product services and technical support. Although the firms maintain a functional structure for specialized activities to all organization, such as, finance, strategy, communication, human resources.
2.7. Network