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Forms OF PO

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Abhishek Chauhan
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43 views12 pages

Forms OF PO

Uploaded by

Abhishek Chauhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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FORMS OF PROJECT ORGANISATION

Presented By -
Zainab Bano [200012035041]
Abhishek Chauhan [200012035092]
Project Management -
According to Peter F. Drucker,"Project management is work that is unique,
temporary, and cutting across organizational lines. It is the management process
that deals with identifying, defining, combining, unifying, and coordinating the
various activities and resources necessary to complete a project successfully."

Characterstics Of Project Management -


• Goal Oriented.
• Unique and Complex.
• Limited resources.
• Planning and Organising.
• Risk Management.
• Cross - functional Collaboration.
• Stakeholder Management.
Project Organisation -
• The term project organization refers to the style of coordination, communication,
and management the project team uses throughout a project lifecycle.
• By applying project organization, you optimize resources, provide clear
communication about roles and responsibilities, and reduce potential roadblocks.
• Project organization refers to the structure and arrangement of resources, roles,
and responsibilities within a project.
• The primary goal of project organization is to establish a framework that enables
effective planning, execution, and control of the project activities to achieve
project objectives.
Forms Of Project Organisation -
1. Functional Project Organization
• In a functional organization, project team
members are grouped based on their
functional areas, such as engineering,
marketing, or finance.
• Each functional unit maintains its own
hierarchy and works on projects within their
area of expertise.
• Project managers have limited authority and
act more as coordinators, relying on
functional managers for resources and
decision-making.
Advantages
• Specialization leads to increased expertise and efficiency in specific functions.
• Project managers can leverage resources without needing to maintain a dedicated
team.
• Employees can focus on their career growth and development.
• Functional organizations standardize processes, procedures, and best practices to
ensure consistency and quality, reducing errors and rework.
• Scheduling work is easy.
Disadvantages
• Functional managers prioritize needs over project, leading to decreased commitment.
• Functional managers have limited decision-making authority, slowing down project
progress.
• Functional organizations lack flexibility for dynamic resource allocation, decision-
making, and changes.
2. Divisonal Project Organization
• A separate project division is set up to implement the
project.
• Headed by the Project Manager, this division has its
complement of personnel over whom the project
manager has full line authority and has total formal
control over the division.
• This form of organization implies the creation of a
goal-oriented division of the company with its own
functional department.
• This type of organization facilitates the process of
planning and control, brings about the better
integration of efforts, and strengthens the
commitment of the project-related personnel to the
objectives of the project.
Advantages
• Separation of strategic and operating control.
• Allows local control of the local situation.
• Creates career development changes.
• Leads to a competitive climate internally.
• Allows easy adding of new products or regions.
• Allows strict controls and attention to products, customers, or regions.

Disadvantages
• Can be dysfunctional competition among divisions.
• Differences in the images & quality may occur across.
• Can focus on short-term performance.
• Duplication of functional activities.
• Requires an elaborate control system.
• This can lead to limited sharing of ideas and resources.
3. Project oriented Organization
• A project-oriented organization prioritizes projects as
the primary mode of work. Projects are seen as
strategic initiatives and receive significant attention
and resources within the organization.
• Project teams are formed for each project, consisting
of individuals from different functional areas and
departments. These teams are specifically created to
work on the project and are disbanded once the
project is completed.
• In a project-oriented organization, project managers
play a crucial role. They are responsible for leading
and managing projects from initiation to completion.
Project managers have authority over project-related
decisions, including resource allocation, budgeting,
and scheduling.
Advantages
• It is best for small projects as well as small teams because the functional manager can
gain full control and authority over team members and other resources.
• It is easy to motivate members as they are small in number.
• It is easy to gather everyone related to a project and have a discussion about a relevant
issue

Disadvantages
• Projects may need additional specialists if they do not have all the right people within
the area.
• It is not easy to gain access to people outside your functional division.
4. Matrix Project Organization
• The matrix organization is a hybrid structure
that combines elements of both functional
and project-based organizations.
• In a matrix organization, project team
members are grouped by both function and
project.
• This means that employees have a dual
reporting relationship, where they report to
both a functional manager and a project
manager.
• This structure allows for a better allocation of
resources and expertise, but it can also lead to
potential conflicts and power struggles.
Advantages
• Specialized knowledge is available to all projects or products on an equal basis.
Knowledge & experience can have to be transferred from one project to another.
• The utilization of manpower can be flexible because a reservoir of specialists is
maintained in functional departments.
• Responsibility for the overall execution, management, and profit is with the project
manager who acts as a chief executive.

Disadvantages
• The major disadvantage relates to power struggles. Since the use of the matrix means
the use of dual command, managers often end up in conflicts.
• Matrix entails wide use of group decision-making because group cooperation is
required for success.
• Matrix structure may be expensive. The dual chain of command may cause mgmt.
costs to double.
THANK YOU

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