IntroductionThe design of a company influences every aspect of the business, such as how its members communicate, how decisions are made, and how work is delegated, etc. (Dictionary.com, 2006). This layout is known as organizational structure formally defined by Wikipedia (2006) as "the way in which the interconnected groups of an organization are constructed. From a management point of view the main concerns are to ensure effective communication and coordination". Regarding project management there are three main organizational subdivisions: functional structure, pure project structure and matrix structure. We will take a look at each of these structures to better identify the similarities and differences between them. Functional Structure In a functional arrangement, power or status is defined by a vertical hierarchy. This structure clearly defines the roles and responsibilities of its members and the chain of command is clearly delineated. (Kerzner, 2003). Functional structure is present in large organizations such as the central government, police forces and the armed forces. Large companies have ongoing programs of similar repetitive or semi-repetitive work, and this structure is typically used to improve systems, procedures, methods, or products within the company. Due to the repetitive nature of the functional structure, people are able to develop a variety of skills that they can use from one project to the next. Projects within this structure would commonly be managed internally rather than externally. (Cogeco, 2006). When changing systems or methods within a company, it is beneficial to the company to have internal employees who have direct contact with the work to manage the... middle of paper... the workplace and can be a little more expensive than other organizational collapses. The matrix structure is best suited to construction projects due to its high level of flexibility and adaptability. Knowing this information will give the organization direction as to which structure will be best suited for them. References: (2006). Module 4 Organizational structures and project management standards. Retrieved December 16, 2006, from http://home.cogeco.ca/~pcreighton/PMWEB/Module%2004.htm Kerzner, H. (2003). Project Management: A Systems Approach to Planning, Scheduling, and Control 8th Edition. Organization John Wiley & Sons Inc. (2006). Dictionary.com. Retrieved December 17, 2006, from http://www.dictionary.comOrganizational Structures. (2006). Wikipedia, the free online encyclopedia. Retrieved December 17, 2006, from http://www.wikipedia.com