Prime Minister Kamyab Jawan National Youth Development

Programme

Assignment # 03

Organizational Structures

Submitted by

Fiza Mushtaq

Section A

Submitted To

Mr Salman Ghani

Submitted On

8/03/2020
1) Multidimensional Organizational Structure

In a multidimensional structure, there's one parent company that consists of a number of

different divisions operating separate businesses. Legally, the parent company owns all of the
divisions, but the parent company gives the divisions significant autonomy, which allows
them to act independently. A multidimensional structure is best suited to a firm with more
than 100 employees working in two or more areas of business.

A multidimensional organization is not one concrete organization form and can be a

combination of approaches with the following characteristics:

 The responsibility for turnover, profit, market share is being distributed across
different dimensions in the organization (making various cross sections of the
organization). This can be a category/unit, geographical area, business model or any
other axis relevant for the organization.
 The management information on the turnover, cost, profit and market share is being
reported and controlled simultaneously on the different dimensions.
 There is only one source of truth, set of management information, which is
maintained at concern level and from which on all dimensions can be reported.
 There is no hard coupling anymore between the responsibility for the results and
management of all the required resources (e.g. by working with shared services).
Advantages:

Workers in a multidimensional structure typically have a greater deal of control over the tasks
to be completed in the individual division office. This allows the business to be more flexible.
When changes occur, they're typically noticed at the level of divisional workers, who can
then adapt to the changes by taking immediate action. The multidimensional structure also
allows workers to focus on a specific area of business, making the divisions highly
specialized in their area of expertise.

Disadvantages:

A multidimensional structure can pose significant challenges, particularly for a small

business. The largest challenge for a small business is the cost factor. Setting up a number of
different divisions can be costly due to the duplication of functions within the organization. It
can also be difficult to maintain communication among divisions, making it difficult for
workers to share information and to collaborate.

2) Hybrid Organizational Structure

A matrix or hybrid structure is an organizational model that combines  two or

more reporting structures. It’s best suited for work environments that are dynamic, as
hybrid structures can shift from project to project A matrix or hybrid structure is an
organizational model that combines two or more reporting structures. It’s best suited for
work environments that are dynamic, as hybrid structures can shift from project to project.

Most commonly, the hybrid structure combines the functional and product organizational

structures. A functional structure is where the company is organized by what people do. For
example, all marketing personnel are overseen by a marketing manager, and all sales
personnel are overseen by a sales manager. In a product organization, the business is
divided by lines of business, such as a baby food manufacturer having specific groups for
dry snacks, jarred food and toddler meals.

In a hybrid structure, if the baby food manufacturer was establishing a new product line, it
could take functional expertise from various groups such as marketing, research and
development and sales to create a product launch team. Those employees would report to
their functional managers as well as the project manager for the product launch team.
Advantages:
Setting up a vertical-horizontal organizational hybrid can give companies the advantages of
both component structures. Lateral teams give what would otherwise be a rigid vertical
structure flexibility. Teams can be formed, adjusted and dissolved according to need. There’s
no bureaucracy standing in the way of a team’s ability to innovate. The functional
segregation that usually gets in the way of interdepartmental cooperation, coordination and
communication is gone, leaving the teams able to make rapid progress toward goals. The
functional hierarchy still exerts control, meanwhile, making sure there’s no duplication of
effort and resources.

Disadvantages:
The major pitfall of the hybrid structure lies in its two command chains. Every employee
must answer to two supervisors, opening every employee up to divided loyalties and conflicts
of interest. Bosses might also have conflicts if functional goals are at odds with project goals.
For instance, a functional department needing to keep down costs might balk at providing
more departmental resources to a particular project. Communication and conflict resolution
skills are necessary abilities for this structure to succeed. Power between the vertical and
horizontal frameworks must be kept in balance.

3) virtual organizational Structure

The term virtual organization is used to describe a network of independent firms that join
together, often temporarily, to produce a service or product. Virtual organization is often
associated with such terms as virtual office, virtual teams, and virtual leadership. The
 ultimate goal of the virtual organization is to provide innovative, high-quality products or
services instantaneously in response to customer demands.

The term virtual in this sense has its roots in the computer industry. When a computer
appears to have more storage capacity than it really possesses it is referred to as virtual
memory. Likewise, when an organization assembles resources from a variety of firms, a
virtual organization seems to have more capabilities than it actually possesses.

Advantages:
 Lower Overhead Costs. Virtual organizations enjoy significant decreases in
operating costs. Aetna was able to shed 2.7 million square feet of office space and save $78
million due to a shift toward virtual teams and remote work
 Improved Employee Satisfaction. Employees are simply happier when they are able
to work from home. 82% of remote workers have reported that they have lower stress levels.
The study also showed that a shift toward remote work led to fewer absences and a higher
morale.
 Improved Employee Efficiency. Remote employees get more work done without the
transactions of the office. 30% of workers in a recent survey stated that working remotely
allowed them to accomplish more in less time.
 Improved Scalability and Growth Potential. Without the overhead typically
associated with maintaining an office space and fewer investments in supplies, companies
can free up capital to improve their scalability and growth potential. Remote teams are simply
more agile.
 Larger Talent Pool. Startups who hire workers remotely are able to access a larger
pool of talent. You can hire talent from anywhere in the world without limiting yourself to
one specific geographic location.
 Improved Employee Retention. Employees that are happier in their work are more
likely to stick around. With competitive salaries, remote workers are less likely to leave their
jobs.
 Access to New Markets. Hiring remotely allows your startup to tap into new
markets. This is particularly useful when it comes to remote sales teams, who will be able to
reach out to new customers that otherwise would have been out of reach for your
organization.
Disadvantages:
 Lack of Camaraderie. Remote workers rarely speak face-to-face.
Even companies that make full use of video chat solutions often find that it isn’t enough to
fully simulate the camaraderie that you build when you work together in an office
environment. There is less opportunity for impromptu conversations. You learn less about the
people that you work with. Companies with remote teams need to take steps to bring their
teams together and facilitate that togetherness.
 A Need for Increased Focus on Communication. Because your
teams will not be able to pass information between themselves like they would in an office
environment, you need to give them the tools and policies that ensure that they actively
communicate
 Reputational Risks. A poorly run virtual team can lead to knocks to
your reputation. Some potential customers may be wary of working with a company that has
a virtual office with remote employees and may not take your startup as seriously.
 Security and Compliance Issues. Working remotely means passing a
lot of data back and forth. In some industries (health, financial, etc.) it may be too risky for
startups to opt for a virtual organizational design.
4) PMO Organizational Structure

A methodology to manage development projects for international humanitarian assistance

and relief organizations.

A project organization is a structure that facilitates the coordination and implementation of

project activities. Its main reason is to create an environment that fosters interactions among
the team members with a minimum amount of disruptions, overlaps and conflict. One of the
important decisions of project management is the form of organizational structure that will be
used for the project. Each project has its unique characteristics and the design of an
organizational structure should consider the organizational environment, the project
characteristics in which it will operate, and the level of authority the project manager is
given. A project structure can take on various forms with each form having its own
advantages and disadvantages. One of the main objectives of the structure is to reduce
uncertainty and confusion that typically occurs at the project initiation phase. The structure
defines the relationships among members of the project management and the relationships
with the external environment. The structure defines the authority by means of a graphical
illustration called an organization chart. A properly designed project organization chart is
essential to project success. An organization chart shows where each person is placed in the
project structure. An organization chart is drawn in pyramid form where individuals located
closer to the top of the pyramid have more authority and responsibility than members located
toward the bottom. It is the relative locations of the individuals on the organization chart that
specifies the working relationships, and the lines connecting the boxes designate formal
supervision and lines of communication between the individuals. The Project Management
Structures www.pm4dev.com Fig, Project Organization Chart (use another example) Creating
the project structure is only a part of organizing the project; it is the actual implementation
and application that takes the most effort. The project organization chart establishes the
formal relationships among project manager, the project team members, the development
organization, the project, beneficiaries and other project stakeholders. This organization must
facilitate an effective interaction and integration among all the major project participants and
achieve open and effective communication among them. The project manager must create a
project structure that will meet the various project needs at different phases of the project.
The structure cannot be designed too rigid or too lose, since the project organization's
purpose is to facilitate the interaction of people to achieve the project ultimate goals within
the specified constraints of scope, schedule, budget and quality. The objective in designing a
project structure is to provide a formal environment that the project manager can use to
influence team members to do their best in completing their assignment and duties. The
structure needs to be designed to help develop collaboration among individual team
members; all in a cost effective way with a minimum of duplication of effort and overlaps.
The organization chart has a limited functionality; it only shows the hierarchical relationship
among the team members but does not shows

 Advantages:

 Provide common, repeatable processes that can be implemented across projects.

 Reduce risks on projects by incorporating best practices bases on experience.
 Reduce risks also by adding a quality-oriented discipline to the process.
 Provide leadership and focus to the project management community.
 Provide proven and chosen methodologies, and support training and certification.
 Provide efficient management of resources across departments and projects.
 Provide consistent and effective reporting from a single source.
 Provide coaching, mentoring and an esprit de corps across project managers.
 Ensure selection and alignment of projects with business direction and strategy.
 Provide financial follow-up and support on projects.
Disadvantages:
Any of the good things that a PMO can do can easily be done poorly, making all of the
difference in outcome. For example, a PMO can provide too much emphasis on process and
become a burden, maybe even bogging thins down so much that it falls short on the most
value added services. It can fail to provide adequate leadership, not build positive
relationships with business units, lack quality and make bad choices – to be paid for by
others!