Any organizational structure is the formal arrangement of the interaction between, and the responsibility for the people, the tasks and the resources that are the back bone of any organization. Without a formal structure with a hierarchical positioning, a business would be chaotic and without purpose.
It is often possible to see the structure of an organization as a chart, usually set out like a pyramid with the head being singled out at the top and everybody else cascading below in order of who they answer to. Even though tends to be the most usual kind of organizational structure, it is very demanding on the person at the top.
A matrix organizational structure differs in as much as its intentions are to make the best possible use of the skills and talents of the people within the structure by combining the merits of functional specialisms and product and project specialisms. It entails functional and staff personnel being allocated to a project or product manager and to a functional area.
A product organizational structure tries to simplify things in a way that actually amplifies the focus of resources onto a narrower objective. This objective has to be strategically important, whether that is a product, a project, a market, a customer, or a new innovation. This is because all of the focus is on a limited end outcome and so has to be concentrated on for success to occur.
A product team structure will designate functional managers and specialists to the new project or product, and the process will mean that the team is empowered to make decisions that directly affect their product. This level of autonomy gives those involved more of a vested interest than in other types of organizational structures.
It is often possible to see the structure of an organization as a chart, usually set out like a pyramid with the head being singled out at the top and everybody else cascading below in order of who they answer to. Even though tends to be the most usual kind of organizational structure, it is very demanding on the person at the top.
A matrix organizational structure differs in as much as its intentions are to make the best possible use of the skills and talents of the people within the structure by combining the merits of functional specialisms and product and project specialisms. It entails functional and staff personnel being allocated to a project or product manager and to a functional area.
A product organizational structure tries to simplify things in a way that actually amplifies the focus of resources onto a narrower objective. This objective has to be strategically important, whether that is a product, a project, a market, a customer, or a new innovation. This is because all of the focus is on a limited end outcome and so has to be concentrated on for success to occur.
A product team structure will designate functional managers and specialists to the new project or product, and the process will mean that the team is empowered to make decisions that directly affect their product. This level of autonomy gives those involved more of a vested interest than in other types of organizational structures.