Development Cooperation Handbook/The development aid organization/Organizational Structure

An organization is, and which has a boundary separating it from its environment. Organization design involves the creation of roles, processes, and formal reporting relationships in an organization. One can distinguish between two phases in an organization design process: Strategic grouping, which establishes the overall structure of the organization (its main sub-units and their relationships), and operational design, which defines the more detailed roles and processes.

Organizational structures are different and can be bigger or smaller, more participatory or more hierarchical: but they all require the construction and preservation of a collective identity where work is shared in a team spirit and organized in line with a team leadership.

Organization structures can be divided in three ways: functional, matrix and projectized.

They differ basically by allocation, supervision and coordination according to Project Manager (PM) authority, PM allocation and budget control.

Organization structure	Characteristics
Functional	Functional manager controls budget PM works as part-time in projects
Matrix	Varies from weak matrix to strong matrix based on: Higher PM authority If functional manager or PM controls budget PM working as part-time or full-time in projects
Projectized	PM as authority PM controls budget PM works as full-time in projects

But besides the different classifications based on process-related or functional categories, what really classifies an organization is it capacity to generate a positive communication climate that reinforces and maintains its culture in line with its mission and identity.

See also