Organizational structure is particularly important in achieving goals and results. Organizational structure allows for the chain of command. Department leaders are in charge of delegating tasks and projects to subordinates so the department can meet project deadlines.
The project management structure of the organization and the culture of the organization are major elements of the environment in which a project is initiated. Subsequent chapters will examine how project managers and professionals work within this environment to successfully complete projects. The interaction between project management structure and organizational culture is a complicated one. We have suggested that in certain organizations, culture encourages the implementation of projects. In this environment the project management structure used plays a less decisive role in the success of the project The structure defines the relationships among members of the project management and the relationships with the external environment. The structure defines the authority by means of a graphical illustration called an organization chart. A properly designed project organization chart is essential to project success. An important function of the organizations’ top management is to design an organization that fully supports project management. This is done by redesigning the organization to emphasize the nature of the projects and adapting how roles and responsibilities are assigned. Organizational structure is very important to an organization. An organizational structure should enable the organization to change or to respond according to its environment. If it is very effective it is called a flexible structure. Mainly there are two types of structures. They are organic structure and mechanistic structure. It is a type of organizational structure in which people with similar skills are pooled for work assignments, resulting in more than one manager (sometimes referred to as solid line and dotted line reports, in reference to traditional business organization charts).  There are three primary project management organizational structures that have become the foundation for how an organization is run: functional, matrix, and pure project. Each structure has advantages, and if used correctly and in the right environment, the structure can further the completion of projects (Tait, 2010). An organizations structure can help or hurt their ability to achieve success. Some organizational structures can definitely impair the organization’s ability to deliver project success. So choosing the correct organization structure is imperative to the success of that particular organization. Organizational structure is particularly important for decision making. Most companies either have a tall or flat organizational structure. Small companies usually use a flat organizational structure. The importance of organizational structure is particularly crucial for communication. Organizational structure enables the distribution of authority. When a person starts a job, he knows from day one to whom he will report. Organizational structure is particularly important in achieving goals and results. Organizational structure allows for the chain of command. Department leaders are in charge of delegating tasks and projects to subordinates so the department can meet project deadlines. The importance of organizational structure is particularly crucial for communication. Organizational structure enables the distribution of authority. When a person starts a job, he knows from day one to whom he will report. Poor organizational design and structure results in a bewildering morass of contradictions: confusion within roles, a lack of co-ordination among functions, failure to share ideas, and slow decision-making bring managers unnecessary complexity, stress, and conflict. One of the wonderful things about being a coach is that I meet hundreds of executives who freely share their business and leadership challenges with me. As well as helping me understand how hard it is to run an organization, they show me how they are managing to adapt — or not — to changing organizational structures. It is also a pity since structure dictates the relationship of roles in an organization, and therefore, how people function. An outdated structure can result in unnecessary ambiguity and confusion and often a lack of accountability. One of the wonderful things about being a coach is that I meet hundreds of executives who freely share their business and leadership challenges with me. As well as helping me understand how hard it is to run an organization, they show me how they are managing to adapt — or not — to changing organizational structures.
http://highered.mheducation.com/sites/0073403342/student_view0/chapter3/index.html http://www.classtoolkit.org/sites/default/files/documents/PM4DEV_Project_Management_Structures.pdf http://www.studymode.com/essays/Why-Organizational-Structure-Is-Important-657717.html https://en.wikipedia.org/wiki/Matrix_management http://www.articlearn.com/project-management-organizational-structures-paper/ http://smallbusiness.chron.com/importance-organizational-structure-2783.html http://smallbusiness.chron.com/importance-organizational-structure-2783.html https://hbr.org/2011/02/the-importance-of-organization https://hbr.org/2011/02/the-importance-of-organization
what is the importance of having an organizational structure in a project environment