How Can I Design an Effective Organizational Structure for a Small Software Firm?

Hi,

This is Raj Beniwal, working with a software firm. This is my first job, and I have been assigned the task of putting in place the right kind of organizational structure for the company.

Let me first give you an idea about the company; It's a 50-odd people company in India. There are a lot of projects running simultaneously, and the top management of the company feels they need to be a little more organized. The very first thing they thought about is "ORGANIZATION STRUCTURE."

We have four key developers who are the project managers/leaders. There is a huge amount of resource sharing required as the priorities change with every new project. The CEO is here 4-5 months a year (he operates from the UK). We have a Director who is responsible for the entire unit in India.

I'm required to give them a solution by this Monday (5/9/05). Please find some time out of your busy schedule to help me out.

Thanking you in anticipation.

Hi Raj,

I hope we are not late in responding to your query; today was the last day.

"This is Raj Beniwal, working with a software firm. This is my first job, and I have been assigned the task of putting in place the right kind of organizational structure for the company. Let me first give you an idea about the company; it's a company with around 50 employees in India. There are multiple projects running simultaneously, and the top management feels the need for a more organized approach. The very first thing they considered is the 'ORGANIZATION STRUCTURE.'

We have four key developers who also serve as project managers/leaders. Given the frequent shifting priorities with each new project, a significant amount of resource sharing is necessary. The CEO is present in India for 4-5 months a year (he operates from the UK). Additionally, we have a Director who oversees the entire Indian unit.

I need to provide them with a solution by this Monday (5/9/05). I request you to spare some time from your busy schedule to assist me."

Present structure: Director / Four Project Managers / Programmers (46 in total, approximately 12 per Manager)

Option 1: Functional Director / 4 Project Managers (Based on expertise) / Coordinator / Programmers

Option 2: Use a matrix structure with Project Managers overseeing Programmers who are shared resources among all Managers. Ensure to develop the next line as Project Managers are susceptible to market forces. Also, calculate the cost centers for each unit and compare them with potential revenues.

I hope this information helps.

Rajat