Organizational Structure for Hydrobuck

Topics: Project management, Organizational structure, Organization Pages: 4 (933 words) Published: September 22, 2010
Junqiang (Jason) LI ISE 517

Dear Ms Wanda Fields:

Whether a company is newly forming or already established, it’s very important that the company have a strong leadership system and effective organizational structure. In an effort to continue your company’s growth and vitality, I strongly recommend that Hydrobuck change organizational structure as Hydrobuck is now planning to design and produce motor in the 50-150 horsepower range. After careful consideration, I found the functional organization would be the best organizational structure for your company to reach your planned objective.

Introduction to Functional Organization

Functional Organizational Structure

Figure 1: Example of Functional Organization
From: Steve Benshoof

Advantage of Functional Organization

1. “Highly flexible staff use”
2. “Ease of switching experts among projects in same functional division” 3. “Specialist pooling in functional division”
4. “Technological continuity”
5. “Quicker career advancement of specialists”

Disadvantage of Functional Organization

1. “Project not client focused”
2. “Different goals between functional parent division and project” 3. “Project manager competes with financial manager for role of central project responsibility” 4. “Slow response to client needs”

5. “Weaker project team motivation than in pure project organization” Functional organization would best suit the company’s current situation and objective. 1. Hydrobuck is a medium-sized company which doesn’t have a lot of human resources but needs to continue producing the small motors. Functional organization would be more advantageous than other organizational structures because it has highly flexible staff use and it’s easier for Hydrobuck to switch experts between small motors and large motors projects. 2. As pursuing the opportunity of the large motors is the main objective of Hydrobuck...
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