Since it is a software house, their technical staff is considered to be their asset who is responsible for making good quality products for their clients. Therefore, it makes sense to give the project manager full command over the projects as he is technically sound and has the required skills to make best possible decisions.
The organization under discussion hires technical people on the basis of their skills and then assigns them positions in the most appropriate ‘Product Team’. Every product has its own respective team and ‘Team Lead’. These team members are entirely responsible for this one product and are involved in its development, deployment, support etc. The ‘Team Lead’ will be managing and leading the projects in which his team members will be involved. This enables the technical staff to gain expertise in their product and induces product loyalty to a great extent. Whenever the company gets a new project, a new project team is made (which is discussed in more detail later in the report).
There is another type of structure that prevails in many organizations. At times, the formal structure is not sufficient to get work done quickly. In such situations, informal structure and reporting comes in play. Informal communication tends to ignore the complex chain of command and jump starts stalled activities. It helps in meeting deadlines exceptionally well. Informal structure promotes communication among the employees and management, integration, flexibility etc.
Some degree of informal reporting is also present in the company under discussion. The members of different product team have informal brainstorming sessions for most efficient solutions to problems. Marchewka (2009) stated that power in the organization is not always governed by the hierarchy but by the degree of connectedness with the colleagues. Informal communication between the employees also