Our organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of our organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within our firm. For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among various levels of the organization. Putting our organizational structure in place is very beneficial to our firm.
The structure not only defines our firm's hierarchy, but it also allows our firm to lay out the pay structure for our employees. By putting the organizational structure in place, the firm can decide salary grades and ranges for each position. Organizational structures fix the scope of jobs, group operational activities together in some fashion and provide for superior-subordinate and peer relationships. Decisions leading to the best structure for a particular business weigh the company’s circumstances, aspirations and character.
The matrix developed as a natural evolution of organizational structures in answer to a very definite real-world need. The need was for an organizational form capable of managing the recent very large and very complex programs, projects, and problems, and for managing limited resources. The matrix is thus built up as a team of personnel drawn from both the project and the functional or disciplinary organizations.
FAAVM Canada Global