LECTURE 8

Organizational
Structures
INTRODUCTION
During the past thirty years there has been a so-called
hidden revolution in the introduction and development
of new organizational structures.
Management has come to realize that organizations
must be dynamic in nature; that is, they must be
capable of rapid restructuring should environmental
conditions so dictate.
These environmental factors evolved from the
increasing competitiveness of the market, changes in
technology, and requirement for better control of
resources for multiproduct firms.
More than thirty years ago, Wallace identified four
major factors that caused the organizational revolution:
INTRODUCTION (CONT.)
The technology revolution
Competition and the profit squeeze ‫ﺿﯿﻖ اﻻرﺑﺎح‬
The high cost of marketing
The unpredictability of consumer demands

The organizational system is composed of both human

and nonhuman resources.
we must analyze the sociotechnical ‫ اﻻﺟﺘﻤﺎﻋﯿﺔ‬subsystem
whenever organizational changes are being considered.
The social system is represented by the organization’s
personnel and their group behavior.
The technical system includes the technology,
materials, and machines necessary to perform the
required tasks.
INTRODUCTION (CONT.)

Organizations can be defined as groups of

people who must coordinate their activities in
order to meet organizational objectives.
Organizational structures are dictated ‫ﻣﺎﻣﻮر‬
‫ﺑﻲ‬by such factors as technology and its rate of
change, complexity, resource availability,
products ,services, competition, and
decision-making requirements.
There is no such thing as a good or bad
organizational structure; there are only
appropriate or inappropriate ones.
INTRODUCTION (CONT.)
Organizational restructuring is a
compromise ‫ ﺣﻞ وﺳﻂ‬between the traditional
(classical) and the behavioral schools of
thought; management must consider the
needs of individuals as well as the needs of
the company.
There is a wide variety of organizational
forms for restructuring management.
The exact method depends on the people in
the organization, the company’s product
lines, and management’s philosophy.
ORGANIZATIONAL WORK FLOW
Organizations are continually restructured to meet the
demands imposed ‫ ﻣﻔﺮوض‬by the environment.
Whatever organizational form is finally selected,
formal channels must be developed so that each
individual has a clear description of the authority,
responsibility, and accountability‫ ﻣﺴﺆﻟﯿﺔ‬necessary for
the work to proceed.
The following definitions will be used:
Authority is the power granted to individuals (possibly
by their position) so that they can make final
decisions.
Responsibility is the obligation ‫ اﻟﺘﺰام‬incurred ‫ﯾﺘﺤﻤﻠﺔ‬by
individuals in their roles in the formal organization to
effectively perform assignments.
ORGANIZATIONAL WORK FLOW
(CONT.)
Accountability is being answerable for the
satisfactory completion of a specific
assignment. (Accountability = authority +
responsibility.)
‫اﻟﻤﺴﺆﻟﯿﺔ ﻋﻦ اﻹﻧﺠﺎز اﻟﻤﺮﺿﻲ ﻟﻤﮭﻤﺔ ﻣﻌﯿﻨﺔ‬.
TRADITIONAL (CLASSICAL)
ORGANIZATION

The classical management organization, as

shown in Figure 3–1 was satisfactory for
control and conflicts were minimal.
TRADITIONAL (CLASSICAL)
ORGANIZATION (CONT.)
TRADITIONAL (CLASSICAL)
ORGANIZATION (CONT.)
TRADITIONAL (CLASSICAL)
ORGANIZATION (CONT.)
DEVELOPING WORK
INTEGRATION POSITIONS
As companies grew in size, more emphasis was
placed on multiple ongoing ‫ اﻟﺟﺎرﯾﺔ‬programs with
high-technology requirements.
Because of the interfacing ‫ اﻟﺗواﺻل‬problems,
management began searching for innovative
methods to coordinate the flow of work between
functional units without modification to the
existing organizational structure.
This coordination was achieved through several
integrating mechanisms:
DEVELOPING WORK
INTEGRATION POSITIONS (CONT.)

Rules and procedures

Planning processes
Hierarchical referral
Direct contact
DEVELOPING WORK
INTEGRATION POSITIONS (CONT.)
DEVELOPING WORK
INTEGRATION POSITIONS (CONT.)
The next step in the evolution of project management
was the task force concept.
‫ﻛﺎﻧﺖ اﻟﺨﻄﻮة اﻟﺘﺎﻟﯿﺔ ﻓﻲ ﺗﻄﻮر إدارة اﻟﻤﺸﺮوع ھﻲ ﻣﻔﮭﻮم ﻓﺮﯾﻖ اﻟﻌﻤﻞ‬.
The rationale behind the task force concept was that
integration could be achieved if each functional unit
placed a representative on the task force.
‫ﻛﺎن اﻷﺳﺎس اﻟﻤﻨﻄﻘﻲ وراء ﻣﻔﮭﻮم ﻓﺮﻗﺔ اﻟﻌﻤﻞ ھﻮ أﻧﮫ ﯾﻤﻜﻦ ﺗﺤﻘﯿﻖ اﻟﺘﻜﺎﻣﻞ إذا وﺿﻌﺖ ﻛﻞ‬
‫ﻣﻤﺜﻼ ﻓﻲ ﻓﺮﻗﺔ اﻟﻌﻤﻞ‬
ً ‫وﺣﺪة وظﯿﻔﯿﺔ‬.
The task force was composed of both part-time and
full-time personnel from each department involved.
DEVELOPING WORK
INTEGRATION POSITIONS (CONT.)
The next step in the evolution of work integration was
the establishment of liaison departments, particularly in
engineering divisions that perform multiple projects
involving a high level of technology (see Figure 3–3).
، (‫ﻛﺎﻧﺖ اﻟﺨﻄﻮة اﻟﺘﺎﻟﯿﺔ ﻓﻲ ﺗﻄﻮر ﺗﻜﺎﻣﻞ اﻟﻌﻤﻞ ھﻲ إﻧﺸﺎء أﻗﺴﺎم اﻻﺗﺼﺎل )اﻟﻌﻼﻗﺎت‬
‫ﻻ ﺳﯿﻤﺎ ﻓﻲ اﻷﻗﺴﺎم اﻟﮭﻨﺪﺳﯿﺔ اﻟﺘﻲ ﺗﻘﻮم ﺑﺘﻨﻔﯿﺬ ﻣﺸﺎرﯾﻊ ﻣﺘﻌﺪدة ﺗﻌﺘﻤﺪ ﻋﻠﻰ ﻣﺴﺘﻮى‬
‫ﻋﺎلٍ ﻣﻦ اﻟﺘﻜﻨﻮﻟﻮﺟﯿﺎ‬.
The purpose of the liaison department was to handle
transactions between functional units within the
(engineering) division.
Their prime function was to assure that all departments
worked toward the same requirements and goals.
DEVELOPING WORK
INTEGRATION POSITIONS (CONT.)
LINE–STAFF ORGANIZATION
(PROJECT COORDINATOR)

It soon became obvious that control of a project must

be given to personnel whose first loyalty is directed
toward the completion of the project.
‫ﺳﺮﻋﺎن ﻣﺎ أﺻﺒﺢ ﻣﻦ اﻟﻮاﺿﺢ أن اﻟﺴﯿﻄﺮة ﻋﻠﻰ اﻟﻤﺸﺮوع ﯾﺠﺐ أن ﺗُﻤﻨﺢ ﻟﻸﻓﺮاد اﻟﺬﯾﻦ‬
‫ﯾﺘﻢ ﺗﻮﺟﯿﮫ وﻻﺋﮭﻢ اﻷول ﻧﺤﻮ إﻛﻤﺎل اﻟﻤﺸﺮوع‬.
The project management position must not be
controlled by the functional managers, Figure 3–4
shows a typical line–staff organization.
LINE–STAFF ORGANIZATION
(PROJECT COORDINATOR) (CONT.)
PURE PRODUCT (PROJECTIZED)
ORGANIZATION
The pure product organization, as shown in
Figure 3–5 develops as a division within a
division.
As long as there exists a continuous flow of
projects, work is stable and conflicts are at a
minimum.
The major advantage of this organizational flow
is that one individual, the program manager,
maintains complete line authority over the
entire project.
‫ ﻣﺪﯾﺮ‬، ‫اﻟﻤﯿﺰة اﻟﺮﺋﯿﺴﯿﺔ ﻟﮭﺬا اﻟﺘﺪﻓﻖ اﻟﺘﻨﻈﯿﻤﻲ ھﻲ أن ﻓﺮدًا واﺣﺪًا‬
‫ ﯾﺤﺘﻔﻆ ﺑﺴﻠﻄﺔ ﻛﺎﻣﻠﺔ ﻋﻠﻰ اﻟﻤﺸﺮوع ﺑﺄﻛﻤﻠﮫ‬، ‫اﻟﺒﺮﻧﺎﻣﺞ‬.
PURE PRODUCT (PROJECTIZED
‫ )ﻣﺘﻮﻗﻊ‬ORGANIZATION (CONT.)
PURE PRODUCT (PROJECTIZED)
ORGANIZATION (CONT.)
PURE PRODUCT (PROJECTIZED)
ORGANIZATION (CONT.)
MATRIX ORGANIZATIONAL FORM
The matrix organizational form is an attempt to combine the
advantages of the pure functional structure and the product
organizational structure.
This form is ideally suited for companies, such as construction,
that are “project-driven”, Figure 3–6 shows a typical matrix
structure.
Each project manager reports directly to the vice president ‫ﻧﺎﺋب‬
‫ اﻟرﺋﯾس‬and general manager.
Since each project represents a potential profit center, the
power and authority used by the project manager come
directly from the general manager.
The project manager has total responsibility and accountability
for project success.
MATRIX ORGANIZATIONAL
FORM(CONT.)
MATRIX ORGANIZATIONAL
FORM(CONT.)
The functional departments, on the other hand, have
functional responsibility to maintain technical excellence on
the project.
Each functional unit is headed by a department manager
whose prime responsibility is to ensure that a unified
technical base is maintained and that all available
information can be exchanged for each project.
Department managers must also keep their people aware of
the latest technical accomplishments in the industry.
Project management is a “coordinative ‫ ”ﻣﻧﺳق‬function,
whereas matrix management is a collaborative function
division of project management
MATRIX ORGANIZATIONAL
FORM(CONT.)
In the coordinative or project organization, work is
generally assigned to specific people or units who
“do their own thing.”
In the collaborative or matrix organization,
information sharing may be mandatory ‫اﻟزاﻣﻲ‬, and
several people may be required for the same piece
of work.
In a project organization, authority for decision
making and direction rests with the project leader,
whereas in a matrix it rests with the team.
MATRIX ORGANIZATIONAL
FORM(CONT.)
Certain ground rules exist for matrix development:
Participants must spend full time on the project; this ensures a
degree of loyalty.
Horizontal as well as vertical channels must exist for making
commitments ‫اﻟﺗزاﻣﺎت‬.
There must be quick and effective methods for conflict
resolution.
There must be good communication channels and free access
between managers.
All managers must have input into the planning process.
Both horizontally and vertically oriented managers must be
willing to negotiate for resources.
MATRIX ORGANIZATIONAL
FORM(CONT.)
The horizontal line must be permitted to operate
as a separate entity except for administrative
purposes.
MATRIX ORGANIZATIONAL
FORM(CONT.)
MATRIX ORGANIZATIONAL
FORM(CONT.)
For large corporations with multiple divisions, the
matrix is no longer two-dimensional, but
multidimensional.
Matrix implementation requires:
Training in matrix operations
Training in how to maintain open communications
Training in problem solving
Compatible reward systems
Role definitions