Project Organization and Structure

5-1 Project Management Structure

 Once management approves a project
then the question how will the project be
implemented ?

Three different projects management
structure :
Functional Organization
Dedicated project team
Matrix structures
3/20/2010 Author: Dr. Tomas Ucol-Ganiron Jr 11

Functional Organizations
Project is managed with the existing functional hierarchy


Functional Organizations
Advantages :
Project is completed within the basis functional structure
of the parent organization.
There is a maximum flexibility in the use of staff.
Normal careers paths within a functional division are
maintained.

Disadvantages:
Each functional unit has its own routine to do work
It takes longer to complete project ( slow response time
and decision)
The motivation of people can be weak

Sample Organization Structure
you can create clear and comprehensive city organizational charts with no
prior experience. As you can see by studying the sample organizational chart
below, these types of charts are the ideal way to illustrate the inner structure
and hierarchy of a business or any other type of organization.
The follow are some sample organizational charts.


Dedicated Project Team
The dedicated project team is the creation of independent unit
and operate separately Of its parent organization.


Dedicated Project Team
Advantages :
 The dedicated project team remains intact with the project.
 Participant devote their full attention to the project.
 Personal responsibility toward the project and the team.
High level of motivation and cohesiveness because participants share
a common goal.

Disadvantages :
 Created an extra unit to complete project is expensive.
 Resources are affected on a full time basis.
 The transition back to the participant to their original functional
department could be difficult.


Matrix Organization Structure


Matrix Organization Structure
Advantages :
 Resources can be shared across multiple projects as well with functional
divisions.
 A strong project focus is provided by having a formal designated project
Manager.
 High level of motivation and cohesiveness because participants share
a common goal.
 The project has access to the entire reservoir technology and expertise
of functional division.

Disadvantages :
 Tension between functional managers and Project manager who brings
critical expertise and perspectives to the project.
 Any situation of shared Resources and people result in conflict and
competition for scarce resources.
 Matrix management violate the principle of unity of command.

Project Organization Structure
The most convenient for organization strategy based on Project :


Project Organization
Advantages :
 Line authority for a project is clearly designated providing
a single focal point for project management.
 All full time personnel are formally assigned to the project.
 Project manager is often of equal or greater rank than the
functional manager.
 The project has access to the entire reservoir technology and
expertise of functional division.

Disadvantages :
A major difficulty in this kind of organization is the uncertainty
these people feel about their position when the project is
completed.

References

 www.swlearning.com/pressroom/cat/08-CED-Mgmt.

http://choo.fis.utoronto.ca/fis/courses/lis1230/lis1230
sharma/history4.

 http://www.indianchild.com/management/what-is-
management.


THANK YOU …

Ready to your questions…


Project Organization and Structure

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