Businesses Adopt New Organizational Structures to Meet Changing Needs
- Alongside the different organizational structures discussed earlier, businesses adapt their organizational structure to stay agile amid market shifts, technological advances, and changing customer demands.
- Two instances of this includes project-based organization and shamrock organizations.
Organizational structure
The framework that defines how tasks are divided, coordinated, and supervised within a company.
Project-Based Organizations: Flexibility in Action
Project-based organizations
A structure where teams are temporarily formed to work on specific projects, disbanding once the project is completed.
This approach is common in industries like construction, film production, and consulting, where work is project-centric and requires specialized skills.
Key Features of Project-Based Organizations
- Temporary Teams: Employees are grouped based on the skills needed for a project.
- Dynamic Structure: Teams dissolve after project completion, allowing resources to be reallocated.
- High Autonomy: Project managers have significant authority to make decisions and drive outcomes.
Advantages of Project-Based Organizations
- Enhanced Flexibility: Teams can be quickly restructured to address new projects or challenges.
- Improved Focus: Teams concentrate on specific goals, increasing efficiency and accountability.
- Skill Development: Employees gain diverse experiences by working on varied projects.
Having clear project goals help minimize duplicate efforts in project-based organizations.
Charles Handy’s Shamrock Organization: A Modern Workforce Model
Shamrock organization
A model that divides the workforce into three distinct groups: core workers, contract workers, and peripheral workers.
This structure emphasizes flexibility and cost-efficiency by leveraging different types of employment relationships.
The Three Leaves of the Shamrock
- Core Workers: Highly skilled employees on permanent contracts, responsible for critical tasks.
- Contract Workers: Specialists hired for specific projects, such as freelancers or consultants.
- Peripheral Workers: Part-time or temporary staff who handle routine tasks and provide flexibility.
A tech company employs software engineers as core workers, hires freelance designers for a product launch, and uses temporary customer support staff during peak seasons.
