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Lec 2 PM Org Structure

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  1   Organizational Structures   Management has come to realize that organizations must be dynamic in nature; that is, they must be capable of rapid restructuring should environmental conditions so dictate. Wallace identified four major factors that caused the onset of the organizational revolution:   ●  The technology revolution (complexity and variety of products, new materials and processes, and the effects of massive research)   ●  Competition and the profit squeeze (saturated markets, inflation of wage and material costs, and production efficiency)   ●  The high cost of marketing   ●  The unpredictability of consumer demands (due to high income, wide range of choices available and shifting tastes)   Grinnell and Apple, there are five general indications that the traditional structure may not be adequate for managing projects:   ●  Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements.   ●  There is a high commitment to getting project work done, but great fluctuations in how well performance specifications are met.   ●  Highly talented specialists involved in the project feel exploited and misused.   ●  Particular technical groups or individuals constantly blame each other for failure to meet specifications or delivery dates.   ●  Projects are on time and to specifications, but groups and individuals aren’t  satisfied with the achievement.   relationships and interdependencies among people. Organizational structures are dictated by such factors as technology and its rate of change, complexity, resource availability, products and/or services, competition, and decision-making requirements. Th ere is no such thing as a good or bad organizational structure; there are only appropriate or inappropriate ones .
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