Scribd
Upload
21 views7 pages

IPE 4261 - Project Organization

The document outlines three types of project management structures: functional, dedicated project, and matrix organizations, each with distinct advantages and disadvantages. It emphasizes the importance of choosing the right organizational structure based on project nature, characteristics, and cultural preferences of the parent organization. Additionally, it details the roles within a project team, highlighting the responsibilities of the project manager and various engineering and administrative positions.

Uploaded by

alamin ridoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
21 views7 pages

IPE 4261 - Project Organization

The document outlines three types of project management structures: functional, dedicated project, and matrix organizations, each with distinct advantages and disadvantages. It emphasizes the importance of choosing the right organizational structure based on project nature, characteristics, and cultural preferences of the parent organization. Additionally, it details the roles within a project team, highlighting the responsibilities of the project manager and various engineering and administrative positions.

Uploaded by

alamin ridoy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

PROJECT ORGANIZATION

How enterprises organize to manage projects

Three different types of Project Management structures:

1. Functional organization
2. Dedicated project organization
3. Matrix organization

A project management system provides a framework for launching and


implementing project activities within parent organization.

A good system appropriately balances the needs of both parent and


project

define the interface between project and parent organization


authority
resource allocation

eventually project outcome

Creating a system for organizing projects is a very difficult task

projects are unique, one-time effort with discrete beginning and


end
multidisciplinary in nature require coordinated efforts of a
variety of specialists to be completed

Functional Organization

Simply manage within the existing functional hierarchy of the


organization.

different segment of the work are delegated to the respective


functional units.
each unit responsible for completing its segment of the project
coordination is maintained through normal management channel
one functional area can also manage the main portion of the
project top management of that department is given the
responsibility
Advantages:

no radical alteration in the design and operation of the parent


organization
maximum flexibility in the use of staff
specialists in different units can temporarily be assigned
in-depth expertise can be brought to bear on the most crucial
aspects of the project
normal career paths within a functional division are maintained

Disadvantages:

own work of functional unit usually take precedence over the


project work
poor integration across functional units people are only
concerned about their portion
lack of communication between top management inter-functional
departments slow response time
project may be seen as an extra burden lack of motivation

CEO

Marketing Engineering Manufacturing Quality Procurement

Customer Designer Fabrication Testing Purchasing


service

Domestic Software Assembly Inspection Receiving &


Sales Inspection

International Hardware Scheduling


Sales
Dedicated Project Organization

Creation of independent project team.

team operates as separate unit from rest of the parent


organization
a full time project manager is appointed total responsibility of
the project
PM recruits full time employees from parent organization and
outside
totally separate from the parent organization

CEO

Marketing Engineering Manufacturing Quality Procurement Project

Advantages:

does not interrupt usual functional operation


project is the main focus devote full attention into the project
high motivation share common goal and personal responsibility
high level of cross-functional integration
committed to optimize the project not personal expertise

Disadvantages:

expensive new management and working force


project members might not have that in-depth knowledge as
functional departments
we-they divisiveness distorting the relationship between project
team members
after project completion, workers either need to go back to
respective functional departments or just get lay-off.
Matrix Organization

Hybrid organizational form in which a horizontal project management

couple some of the benefits of functional organization with


dedicated project organization
two chains of command along functional line and along project
line
project participants reports simultaneously to both functional and
project managers
may be temporary or permanent structure

CEO

Program Marketing Engineering Manufacturing Quality Procurement


Manager

PM1 3 1 1 ½ 2

PM2 ½ 1 3 1 1

Advantages:

resources can be shared across multiple projects as well as within


functional divisions
project is the main emphasis to complete in time within cost
project has reasonable access to entire reservoir of technology in
all functional divisions
flexible enough to respond to any sudden demand from either
functional or project side

Disadvantages:

legitimate conflict between PM and FM about objective


conflict between project managers sharing of scare resources
two different bosses whom to listen
Three kinds of matrix organization structures:

Weak/Functional balance of authority strongly favor the functional


managers
Balanced matrix -- traditional matrix arrangement
Heavy/Project -- balance of authority strongly on the side of project
manager

Functional:

formally designated project manager is responsible for


coordinating project activities
PM basically acts as a staff assistant who draws the schedules,
status of work and facilitates project completion
has indirect authority to expedite and monitor the project

Balanced:

PM establishes the overall plan for completing the project, set


schedule and monitor the project
FM assigns personnel and execute their segment of the project
PM what to do and FM how to do

Project:

PM controls most aspects of the project


controls when and what specialists do
has final say on major project decision
FM is consulted on need basis

CHOOSING AN ORGANIZATIONAL STRUCTURE

Need to consider:

the nature of the potential project


characteristics of various organizational options
pros and cons of each
cultural preferences of the parent organization

Certain structures may contribute to success for certain project


whereas detrimental to another one.
Functional:

major focus on in-depth application of technology


project requiring large capital investment

Dedicated:

large number of similar projects


one time, highly specific unique tasks requiring careful control

Matrix:

requiring integration of inputs from several functional areas


involves reasonably sophisticated technology
need to share technical experts among several projects

Criteria for Choosing Structure

Define project with a statement of the objectives that identifies major


desired outcome
Determine the key tasks associated with each objective and locate
functional units
Arrange the key tasks and decompose into work packages
Determine the required organizational units to carryout the project
List special characteristics on assumptions: level of technology, size of
project, potential problems of assigned individuals and between
functional units

PROJECT TEAM

Project
Manager

Technical Logistics
Project Engineer Contract Administrator

Manufacturing Engineer Project Controller

Field Manager Support Service Manager


Project Manager:

overall in-charge of the project


planning, controlling and completing

Project Engineer:

product design and functional analysis


drawings and specifications
documentation

Manufacturing Engineer:

efficient production of product or process


tooling and jig/fixture
scheduling

Field Manager:

installations, testing and support


after sales service

Contract Administrator:

official paperwork, billing and cost


complaints and legal aspects

Project Controller:

daily accounts of budgets


labor charges
project supplies

Support Service Manager:

subcontractor dealings
data processing
general management support

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy