BY
Prof. Godwin Idoro
Department of Building,
University of Lagos, Akoka, Lagos

ORGANISATION STRUCTURE
 Definition:
 Layout of the functional units in an organisation
 Layout of the staff in an organisation
 Pattern of reporting in an organisation
 Mode of relationship among staff in an organisation
 Pattern of communication among the staff in an
organisation

ORGANISATION STRUCTURE
 Effects of Organisation structure:
 Supply and control of resources
 Efficiency of a firm/project
 Productivity of resources especially human resources
 Performance of staff
 Performance of a project or firm

ORGANISATION STRUCTURE
 Types of organisation structure:
 Functional structure
 Matrix structure
 Project structure
 Virtual organisation structure
 Network orgnisation structure
 Hypertext orgnisation structure

FUNCTIONAL STRUCTURE
 Definition:
 A structure in which a firm is organised or divided into
divisions, depts, units based on specialised functions
performed.
 Functional staff are the head or functional manager of
divisions, depts, units.

FUNCTIONAL STRUCTURE
 Features:
 Layout of firm/project is vertical based on specialty
 Staff layout is based on specific functions or
specialisation
 Units are determined by specialty
 Reporting is vertical based on units
 Each employee has only one superior
 Each unit performs its duty independent of others
 Communication among units is at top management
 Project coordination is horizontal at top management

FUNCTIONAL STRUCTURE
 Advantages:
 Every staff reports to one superior, boss, manager
 Encourages specialisation and improve expertise
 Allows functional staff to provide inputs as required
 Staff have broad based knowledge of firm activities
 Promotes accountability
 Involvement of all units/staff in firm activities.

FUNCTIONAL STRUCTURE
 Disadvantages:
 Each staff is responsible for a part of a project
 Creates problems of coordination
 No person or unit is directly responsible for a project
 Integration of functional depts is difficult
 Encourages bureaucracy
 No staff is directly responsible for the success or failure
of a project

PROJECT STRUCTURE
 Definition:
 A structure in which a firm is organised or divided into
divisions, depts, units based on projects
 Project managers are the functional manager of units in
a firm.

PROJECT STRUCTURE
 Features:
 Layout of firm/project is vertical based on projects handled
 Resources (staff) are laid out based on projects at hand
 Units are determined by projects & repeated in projects
 Reporting is vertical based on projects
 Each employee has only one superior i.e PM
 Each unit performs its duty independent of other projects
 Communication is vertical among staff in a unit
 Project coordination is vertical among unit staff
 Each unit & its staff is responsible for the success or failure of a project.
 PMs are functional managers with high independence & authority

PROJECT STRUCTURE
 Advantages:
 There is a unity of command. Each staff reports to only
one superior.
 One person (PM) is fully responsible for a project.
 Promotes quick decision making & response to clients’
needs
 High integration among project staff.
 High responsibility of project staff for projects.
 Reduces bureaucracy.
 Greater control over resources by project team.
 Promotes high productivity & performance

PROJECT STRUCTURE
 Disadvantages:
 Duplication of personnel & other resources
 Duplication of efforts & facilities
 Encourages redundancy when projects are completed
 Encourages high cost of staff
 Conflicts possible when project units require the use of
same facility at the same time.

MATRIX STRUCTURE
 Definition:
 A structure that is a blend of functional and project
structures. A weak structure possesses most of the
features of Functional structure, strong Matrix possesses
most of the features of Project structure while Balanced
Matrix is a midway between functional and project
structures.

MATRIX STRUCTURE
 Types:
 Weak Matrix Structure
 Balanced Matrix Structure
 Strong Matrix Structure

WEAK MATRIX STRUCTURE
 Definition:
 A structure in which a firm or project is divided into
divisions, depts, units based on specialisation with
functional staff as heads of units or functional managers
but staff in every unit are dedicated to specific projects.

WEAK MATRIX STRUCTURE
 Advantages:
 All the advantages of functional structure
 Greater dedication, commitment & responsibility of
staff to projects.
 Coordination of projects is still horizontal but can be
done at lower level.
 PM is not appointed so, no staff is directly responsible
for the success or failure of a project.

WEAK MATRIX STRUCTURE
 Disadvantages:
 Each staff is responsible for a part of a project
 Creates problems of coordination
 No person or unit is directly responsible for a project
 Integration of functional depts is difficult
 Encourages bureaucracy
 Staff attached to projects are responsible and report to
their functional managers in carrying out their duties.

STRONG MATRIX
 Definition:
 A structure in which a firm or project is divided into
divisions, depts, units based on specialisation with
functional staff as heads of units or functional managers
but in addition, a separate division, dept or unit known as
Project Management is created with PMs as staff. A PM is
then appointed for each project who is responsible for each
project and relevant staff in other divisions or depts or
units are then appointed to work with the PM.

STRONG MATRIX STRUCTURE
 Advantages:
 Encourages more effective dissemination of project information
 Encourages flexibility in the duties and movement of staff
 Prevents duplication of project resources
 Prevents duplication of functional units as in project structure
 One person (PM) is directly responsible for each project
 Gives high authority to PMs which make them more responsible
for projects than in functional structure
 Promotes more effective coordination of projects.

STRONG MATRIX STRUCTURE
 Disadvantages:
 Conflicts between PM and functional managers are
common
 Decision-making on projects is shared between PM and
functional managers which cause delay.
 PM has two bosses (Head, project management and
functional managers which creates conflicts
 The multidimensional flow of project information
causes difficulty in control of projects by PM.
 Project staff are not directly responsible to PM which
causes difficulty in control of project staff.
 PM has no control over project resources.

BALANCED MATRIX STRUCTURE
 Definition:
 A structure in which a firm or project is divided into divisions,
depts, units based on specialisation with functional staff as head
of units or functional managers but a staff from any unit is
appointed as PM for specific projects and relevant staff are
appointed from each division or unit as project staff to assist the
PM.

BALANCED MATRIX STRUCTURE
 Advantages:
 One person (PM) is directly responsible for each project
 Firm resources are not duplicated
 Project coordination is horizontal among project staff
and among functional managers
 Project staff are clearly known unlike functional
structure in which project staff may change.
 Centralisation of firm resources prevents redundancy
and wastage

BALANCED MATRIX STRUCTURE
 Disadvantages:
 PM has little or no control over project staff
 Project staff reports to their functional managers and
not PM
 PM has no control over project resources
 Centralisation of project resources often cause delay in
the delivery of projects.
 PM has little authority

ORGANISATION CULTURE
 Definition:
 The philosophy of the structure of an organisation
 The philosophy guiding the behaviour, conduct and pattern
of relationship of the staff of an organisation.

ORGANISATION CULTURE
 Types:
 Power culture (Web)
 Role culture (Greek Temple)
 Task culture (Net)
 Person culture (Cluster)

POWER CULTURE
Definition:
An organisation structure in which one person is the central figure who
is the source of power and control in the organisation.
Features:
One man business or family business
Small and tree-like structure
Few staff and roles to be performed
Quick reaction to change
Fast decision making
Trust is the main ingredient
Long serving staff are mostly valued and placed in key roles

ROLE CULTURE
 Definition:
 An organisation structure in which roles and job
descriptions are precisely specified and recognised.
 The structure is like the Greek Temple with pillars
identifying specialist areas.
 Features:
 Suitable for a bureaucratic or public sector organisations
 Specific job functions
 Defined pattern of relationship
 Predictable career path

TASK CULTURE
 Definition:
 An organisation structure in which workers and other
resources are organised to achieve a defined task
 Features:
 Concerned with getting a job done or task performed
 Emphasis not on boss but on task to be performed
 Right people for a task are assembled together
 Decision making & control decentralised or delegated
 Flexible structure where roles are not emphasised
 For fast-growing enterprise.

PERSON CULTURE
 Definition:
 An organisation structure in which one person or an
individual is the central point and the organisation
exists merely to serve the interests person
 Features:
 The individual is the central point
 Staff are to assist the individual in performing his duties
 Firm is about the duties or profession of the owner.
 Often liquidates when the individual is no more in the
firm
 Common structure for professional firms

THANK YOU
 I WISH SUCCESS IN YOUR EXAMS