Organizational Structure

Think of an organization chart as a road map, it is more like an abstraction of a dynamic condition. An organization chart is limited in scope because it does not identify the companies’ intangibles like, skill sets, personality, attitudes and experience.

Organization charts help to define company relationships and usually answer some standard questions.

What is my position in the organization?
What is my title and job description?
Who am I accountable?
Who is accountable to me?
Who are other people of interest in the organization?
What do these people do?
What are the reporting relationships for these people?

If you do not address these questions, you will not understand important organizational relationships. If you act without organizational knowledge during your project you might violate company protocol(s). If you work or are in charge (PM/Scrummaster) of projects it is most likely that you use a matrix organization. The roadblock to this type of organization (matrix) is that is usually generates a great deal of conflict because the "Who is my boss?" question constantly arises because of a dual authority system. When you are in a dual authority system, your project organization borrows an employee(s) from another department which might have nothing to do with the project you are working on. But when you use a matrix organization, you create a team of specialists (skill sets) to accomplish your project goals. Matrix structures are typically used for very important activities with a time-sensitive schedule so this structure combines functional and product orientation. Advantages of a matrix organization are that it is very effective if buy-in occurs (early) and the project manager has proper power and authority, but the disadvantage of a matrix organization is the presence of interpersonal conflict.

Examples of a Matrix Organization:

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