Understanding the Impact of Organizational Structure (2023)

Understanding the Impact of Organizational Structure (1)

1) Which ofthe following scenarios best describes a Classic structure?

Ans: Imagineyou are managing an important project at a company that requires all orders togo through its shipping department. However, your project is on a tightschedule, and the shipping department has a backlog of orders. You decide tomeet with your direct manager to ask for approval to place the order through athird-party vendor.

2) Why is itimportant for a project manager in a Matrix organization to clearly defineroles and responsibilities? Select all that apply.


a) Becauseproject managers can have the same level of authority as functional managers

b) Becauseemployees may report to more than one person and have multiple responsibilitiesacross teams

3) What aresome key functions of a Project Management Office (PMO)? Select all that apply.


Strategicplanning and governance

Creatingproject documentation, archives, and tools

Implementingproject management best practices


Why is it important to understand organizational structures? ›

Organizational structures are important because they help businesses implement efficient decision-making processes. By assigning specialized roles to lower-level employees, businesses can make better decisions faster.

How does understanding organizational structure make for effective management? ›

Structure will give employees more clarity, help manage expectations, enable better decision-making and provide consistency. Organizational charts also assign responsibility, organize workflow and make sure important tasks are completed on time.

What are the 4 types of organizational structure? ›

The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.

How does organizational structure impact an organization's change? ›

Organizational structures help businesses make sure that all of the tasks necessary for profitable operations get assigned to the right people. They also guide employees, from staff members to executives, to understand their roles in the company, who they report to and who they oversee.

What are the three important things to be consider in understanding organizational structure? ›

Consider the business' environment, size and age

Understanding the business' environment can help determine which organizational structure may benefit it the most. For example, a newer company that is quickly expanding may benefit from a more flexible and adaptable environment.

What is the most important aspect of understanding organizational design? ›

Strategy. Strategy dictates the strategic priorities of an organization. This is the most important influencing factor of organizational structure and design.


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