An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. It iss used to determine the hierarchy and authority of people involved in a specific project.

There are 4 Functions of Organizational Structure in project management:

• Planning: It is the most important ability to allocate resources, set deadlines, recalibrate when necessary and do “the vision thing” on both a short- and long-term basis. It may help you to know that as a group, entrepreneurs tend to be doers, not planners. But you can upend this paradigm by committing all your good ideas to paper, a Word document or a spreadsheet.

• Organizing: There comes a time to translate all those ideas into an action plan, complete with procedures and protocols and the delegation of tasks to the people best suited to carry them out.

• Leading: Leading is like providing the direction, assistance and support most employees need, in tandem with the motivational powers they tend to admire.

• Controlling: Controlling is also called as monitoring. Someone has to keep their finger on the pulse of the project to ensure that everything is being done efficiently, expeditiously and to the satisfaction of customers .In many small businesses, the boss is the controller of the project.