Project Organization Project as Part of Functional Organization Pure Project Organization Matrix Organization Staff Organization Project Team Key Team Members Human Factors

1. Project Organization
Prepared By : Mohd Samim Faizy 1

2. Learning Objectives
Project Organization
Project as Part of Functional Organization
Pure Project Organization
Matrix Organization
Staff Organization
Project Team
Key Team Members
Human Factors
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3. Project Organization
• Specialization of the human elements
• Different types = functional, product line,
geographical location, production process, type of
customer, subsidiary organization, time, vertical or
horizontal organization
• How to tie project to the parent firm
• How to organize the project itself
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4. Project as Part of Functional Organization
• E.g. new technology project – under voice president
of engineering
• Introduction of new product line – under voice
president of marketing
• Project assigned to the functional unit that has most
interest
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5. Major Advantages
• Maximum flexibility in the use of staff
• Individual experts can be utilized by many different
projects
• Specialist in the division can be grouped to share
knowledge and experience
• Functional division serves as a base of technological
continuity
• Functional division contains normal of advancement
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6. Disadvantages
• The client is not the focus of activity and concern
• No individual is given full responsibility for the
project
• Slow response to client’s needs
• Tendency to sub-optimize the project
• Motivation of project team is weak
• Does not facilitate a holistic approach to the project
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7. Pure Project Organization
• Project is separated from the rest of the parent
system
• Becomes self contained unit
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8. Advantages
• PM has full line authority over the project
• All project workforce directly responsible to the PM
• Lines of communication are shortened
• Maintain permanent group of experts
• High level of commitment
• Ability to make swift decisions
• Unity of command
• Simple and flexible structure
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9. Project Organization
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t A
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t B
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t C
P re s id e n t
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10. Disadvantages
• Duplication of effort
• Lack of expertise in high technology project
• Foster changeability and cutting corners
• Project takes on a life of its own
• Worry about “life after project ends”
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11. Matrix Organization
• Combination of functional and pure project
organizations
• Matrix project is not separated from parent
organizations
• Individuals come from respective functions divisions
and are assigned to the project full time or part time
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12. Matrix Organization
• Cross-functional team members
• Draw temporarily on technological expertise of
relevant functions
• High technology areas – integrate functional
specialties
• Systems approach – integrity of product design
• Close coordination and communication among all
parties
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13. Staff Organization
• Set up like functional organization
• Adds a staff office to administer projects
• Used for small, short run projects
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14. Project Team
• Project office – control center, chart room (focus of
all project activity)
• Close location to project manager
• Co-location of external parties
• Reduce physical distance
• Better communication
• Pressure to complete tasks
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15. Key Team Members
• Project Engineer
• Manufacturing Engineer
• Field Manager
• Contract Administrator
• Project Controller
• Support Services Manager
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16. Work Organization
• Project engineer (technical performance) and project
controller (budget) report to PM
• PM forecast of personnel needs
• Skills requirements are assessed and aggregated
• Outsourcing of certain tasks
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17. Human Factors
• Technical problem with a human dimension
• Perfectionist – can cause delay
• Motivation – recognition, achievement,
responsibility, advancement, the work itself
• Interpersonal conflict
• Management by Objectives (MBO) – allows worker
to take responsibility for design and performance of
a task
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18. Chapter 4 Project Organization 18