5 Facts About Multi-Divisional Organizational Structure

multi-divisional organizational structure

5 Facts About Multi-Divisional Organizational Structure



Multi-Divisional Organizational structure for managing projects seems to be one of the new entrants when it comes to managing projects in an organization.


In this type of organizational structure, there seems to be a division of functions along departmental lines but some of these departments are replicated in many branches of the organization. These are formed based on processes, production functions, program, portfolio, or geographic region or consumer types. This can be sued when an organization have subsidiaries that are formed along product lines.


Here, the Project Manager’s authority is little or non-existent as the organization place more emphasis on speciality and technical know-how that the speciality provided by the project manager.

5 Facts About Multi-Divisional Organizational Structure

Also, in this type of organizational structure, the Project Manager’s role might be part-time. He is likely to be just a Project Expediter or Coordinator who lacks real project management powers.


Also, in a multi-divisional organizational structure, the Project Manager might find it difficult to gather all the resources that he needs to execute the project successfully. This is large because the Project Manager does not have powers to influence project decisions.


In this type of organizational structure, you should note that it is the project manager that manages the Project budget. Every detail that has to do with the finance of the project might be placed in the hand of the department that will be a beneficiary of such a project.


Above all, when it comes to administrative staff or team members for the project, they are always available on a part-time basis. That means such team members perform their normal official works and still participate in the project at the same time.




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