Keller Graduate School of Management
The organizational structure is basically the system that a company develops to organize itself it determines who is in charge of what. There are different types of structures. The main structures are the Functional structure, the Autonomous structure, and the matrix structure. Each structure has advantages and disadvantages; each company needs to make a decision on what type of structure they are going to use in project management to ensure that all needs are met across all departments that will be involved in the project. The Huntsville Project is operating on a Matrix structure. This structure is a blend of the Autonomous
and Functional organizational structures. In the Matrix structure the project manager does not have complete authority of the project team. In the Huntsville project the team members that are being utilized work in different departments within the company. In this situation the team will work on the project and still complete their normal daily functions in their own departments. The team members will have their own functional manager to report to as well as the project manager.
The Matrix structure works best for the company’s needs to complete the Huntsville project because it is a blend of both the Autonomous and Functional structures. The Autonomous project structure would not work because it is not cost effective. The company’s goal is to increase profit and establish themselves as a leader in the industry so the company can’t afford to have cost inefficiency. The Functional structure is generally better suited for a company that will be making a product to sell. Even though the SEITZ Corporation does make products that are sold to consumers the Huntsville project is about making a plant for the company, the end customer is the SEITZ Corporation itself and the sponsor Walter Seitz. The focus for the communication will be less about communication with the customer, which is an advantage of the functional structure, and more about improved internal communication, which is an advantage of the matrix structure (Gido, 441). After studying the organizational structures of project management it makes sense that the company in the Huntsville project would be operating under the functional structure. Knowing the operational structure prior to starting the project would have helped in creating the WBS. It would have also been helpful for creating the budget. The estimated budget may have looked different also if we took into account that the resources are shared the corporation.
REFRENCES
Gido, J. & Clements, J. P. (2012). Successful Project Management (5th edition) 441-444