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45 u optimal use of resources u clear communication

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45uOptimal use of resources;uClear communication channels;uRight materials to the right person for the right job at the right time;uFair and equal treatment of people in the workplace;uClear security of work positions;uSafety of people in the workplace;uOpen contribution to planning and execution by each person; anduOptimal morale.Performance of these management elements are assigned to selected individuals within the organization. Theseindividuals may perform the noted functions within various organizational structures. For example, in a hierarchicalstructure, there are horizontal and vertical levels within the organization. These hierarchical levels range from the linemanagement level through to the executive management level. The responsibility, accountability, and authority assignedto the hierarchical level indicate how the individual may perform the noted function within that organizational structure.2.4.4 ORGANIZATIONAL STRUCTURE TYPESDetermination of the appropriate organizational structure type is a result of the study of tradeoffs between twokey variables. The variables are the organizational structure types available for use and how to optimize them for agiven organization. There is not a one-size-fits-all structure for any given organization. The final structure for a givenorganization is unique due to the numerous variables to be considered. Sections 2.4.4.1 and 2.4.4.2 give examples ofsome of the factors to be included when considering the two variables given. Section 2.4.4.3 discusses one organizationalstructure that is prevalent in project management.2.4.4.1 ORGANIZATIONAL STRUCTURE TYPESOrganizational structures take many forms or types. Table 2-1 compares several types of organizational structuresand their influence on projects.
��46Part 1 - Guide2.4.4.2 FACTORS IN ORGANIZATION STRUCTURE SELECTIONEach organization considers numerous factors for inclusion in its organizational structure. Each factor may carrya different level of importance in the final analysis. The combination of the factor, its value, and relative importanceprovides the organization’s decision makers with the right information for inclusion in the analysis.Factors to consider in selecting an organizational structure include but are not limited to:uDegree of alignment with organizational objectives,uSpecialization capabilities,uSpan of control, efficiency, and effectiveness,uClear path for escalation of decisions,uClear line and scope of authority,uDelegation capabilities,uAccountability assignment,uResponsibility assignment,uAdaptability of design,uSimplicity of design,uEfficiency of performance,uCost considerations,uPhysical locations (e.g., colocated, regional, and virtual), anduClear communication (e.g., policies, status of work, and organization’s vision).

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