SE-868: Software Project Management

Assistant Professor Dr. Mehwish Naseer

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Looking forward to..
1. What is organizing as a management
function?
2. What are the traditional organization
structures?
3. What are the types of horizontal
organization structures?
4. How are organizational designs changing
the workplace?

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1. Organizing as a Management
Function
1. What is organization structure?
2. Formal structures
3. Informal structures

2. Traditional Organization
Structures
1. Functional structures
2. Divisional structures
3. Matrix structures 4
3. Horizontal Organization
Structures
1. Team structures
2. Network structures
3. Boundaryless structures

4. Organizational Designs
1. Contingency in organizational design
2. Mechanistic and organic designs
3. Trends in organizational designs
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Organizing as a management
function
 Organizing as a management function
 Organizing
 Arranges people and resources to work together
to accomplish a goal
 Organization structure
 The system of tasks, reporting relationships, and

communication linkages

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 Organizing viewed in
relationship with the other
management functions

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Organizing as a Management
Function
An organization chart is a diagram
describing reporting relationships and the
formal arrangement of work positions
within an organization. It includes:

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Organizing as a Management
Function
Informal structures 
The set of unofficial relationships
between organization members
Social network analysis
Identifies informal structures and
social relationships in the
organization

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What is organizing as a
management function?
 Informal structures 
 Potential advantages of informal structures:
 Helping people accomplish their work
 Overcoming limits of formal structure
 Gaining access to interpersonal networks
 Informal learning

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Organizing as a Management
Function

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Traditional Organization
Structures
 Traditional organization structures
 Departmentalization
 Groups people with and jobs into work units or
formal teams
 These formal teams are linked to create three

major types of traditional organizational

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Traditional Organization
Structures
 Functional structures
 People with similar skills and performing
similar tasks are grouped together into formal
work units
 Members work in their functional areas of
expertise
 Are not limited to businesses
 Work well for small organizations producing
few products or services

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Functional structures in a business,
branch bank, and community hospital

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Traditional Organization Structures
 Potential advantages of functional structures:
 Task assignments consistent with expertise
and training
 High-quality technical problem solving
 In-depth training and skill development
 Clear career paths within functions

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Traditional Organization Structures

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Traditional Organization Structures
 Divisional structures
 Group together people who work on the same
product or process, serve similar customers,
and/or are located in the same area or
geographical region
 Common in complex organizations
 Avoid problems associated with functional
structures

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Divisional structures based on product,
geography, customer, and process

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Traditional Organization Structures
 Potential advantages of divisional structures:
 Improved coordination
 Clear points of responsibility
 Expertise focused on specific customers,
products, and regions
 Greater ease in restructuring

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Traditional Organization Structures

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Traditional Organization Structures
 Matrix structure
 Combines functional and divisional structures
to gain advantages and minimize
disadvantages of each
 Used in:

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Matrix structure in a small, multi-
project business firm

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Traditional Organization Structures
 Potential advantages of matrix structures:
 Better cooperation across functions
 Improved decision making
 Increased flexibility in restructuring
 Better customer service
 Better performance accountability
 Improved strategic management

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Traditional Organization Structures

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