PROJECT

MANAGEMENT

PROJECT
ORGANIZATION
PRESENTED TO:
Dr. SHAKEEL
IQBAL

PRESENTED BY:
JITENDRA PATHAK(06)
MD. SHAD ANWAR(09)
SYMPHONY
SATPATHY(23)

PREFACE
Today we will try to show, according to recent and by
scientific publicity accepted attitudes, three basic
organizational forms for project management, with their
description, advantages and disadvantages, as well as to
try to identify the cases in which some of them could be
applied. In this sense we will analyze the functional
organizational type, where the project is a part of
functional enterprise organization, clear project
organization and combined or matrix system. According
to the fact that each one of the models mentioned above
has its own advantages and disadvantages, in this work
we will try to pre-sent the procedure for choosing which
model will be the most appropriate for implementation in
particular cases.

INTRODUCTION
A project organization is a structure that facilitates the
coordination and implementation of project activities.
Its main reason is to create an environment that fosters
interactions among the team members with a minimum
amount of disruptions, overlaps and conflict.
One of the important decisions of project management is the
form of organizational structure that will be used for the
project.
Each project has its unique characteristics and the design of an
organizational structure should consider the organizational
environment, the project characteristics in which it will
operate, and the level of authority the project manager is
given.
A project structure can take on various forms with each form
having its own advantages and disadvantages.

INTRODUCTION
Main objectives of the structure is to reduce uncertainty
and confusion that typically occurs at the project initiation
phase.
It defines the relationships among members of the project
management and the relationships with the external
environment.
It defines the authority by means of a graphical illustration
called an organization chart.
An organization chart shows where each person is placed in
the project structure.
An organization chart is drawn in pyramid form where
individuals located closer to the top of the pyramid have
more authority and responsibility than members located
toward the bottom.

TYPES OF PROJECT
ORGANISATION
A project has three organization structures available
for design and all are defined by the level of
organizational authority given to the project
manager:
Functional, in which project managers have authority
only within the program focus or area
Matrix based, in which the project manager shares
responsibility with other program unit managers
Project based, in which project managers have total
authority.

FUNCTIONAL ORGANIZATIONAL
STRUCTURE.
Functional organizational structure is to be managed
in the current organization hierarchical structure.
Once the project begins operation, the various
components of the project are taken by the
functional units, each unit is responsible for its
charged component.
If the project established, a functional area play a
dominant role, functional areas on completion of the
project, senior managers will be responsible for
project coordination.

ADVANTAGES
The use of personnel with greater flexibility, as long
as the choice of a suitable functional departments as
the project supervisor, the department will be able
to provide professional and technical personnel
required by the project, and technology experts can
also be used by different projects and after
completion of the work can go back to his original
work.
When the project team members leave or leave the
company, the functions can be used as the basis for
maintaining the continuity of the project.
Functional department can provide a normal career
path for professionals.

DISADVANTAGES
Projects often lack of focus, each unit has its own core
functions of general business, sometimes in order to meet
their basic needs, responsibility for the project will be
ignored, especially when the interest taken in the project
brought to the unit not the same interest.
Such organization has certain difficulties in the interdepartmental cooperation and exchanges.
Motivation is not strong enough for project participants, they
think the project is an additional burden, and not directly
related to their career development and upgrading.
In such organizational structure, sometimes no one should
assume full responsibility for the project, often the project
manager is only responsible for part of the project, others
are responsible for the other parts of the project, which leads
to difficulties in coordination situation.

PROJECT-BASED
ORGANIZATIONAL STRUCTURE
Project organizational structure refers to the
creation of an independent project team.
The teams management is separated from the
parent organizations other units, have their own
technical staff and management, enterprise assigns
certain resources to project team, and grant project
manager of the largest free implementation of the
project .

ADVANTAGES
Focus on the project team, project manager is solely
responsible for the project, the only task for project
members is to complete the project, and they only
report to the project manager, avoiding the multiple
leadership.
The project teams decision is developed within the
project, the reaction time is short.
In this project, members work with strong power,
high cohesion, participants shared the common goal
of the project, and individual has clear
responsibilities.

DISADVANTAGES
When a company has several projects, each project has
its own separate team, which will lead to duplication of
efforts and the loss of scalable economies.
The project team itself is an independent entity, prone
to a condition known as Project inflammatory
disease, that is, there is a clear dividing line between
the project team and the parent organization,
weakening the effective integration between project
team and the parent organization.
The project team members lack of a business continuity
and security, once the project ended, return to their
original functions may be more difficult.

MATRIX ORGANIZATIONAL
STRUCTURE
Matrix organizational structure is a hybrid form.
It loads a level of project management structure on
the functional hierarchical structure.
According to the relative power of project managers
and functional managers, in practice there are
different types of matrix systems, respectively,
Functional Matrix: in this matrix, functional managers
have greater powers than project managers;
Project Matrix: in this matrix, project managers have
greater powers than functional managers;
Balance Matrix: in this matrix, functional managers and
project managers have the equal powers.

MATRIX ORGANIZATIONAL
STRUCTURE
Project Matrix can increase the projects integration,
reduce internal power struggle. Its weakness is poor
control of their functional areas and prone to
project inflammation.
Functional Matrix can provide a better system for
managing the conflict between different projects,
but maintaining the control of functions is at the
cost of inefficient integration of projects.
Balanced Matrix can achieve the balance between
technology and project requirements better, but its
establishment and management is very subtle, is
likely to encounter many problems related to matrix
organization.

ADVANTAGES
It is the same as functional structure that resources can be
shared in multiple projects, which can significantly reduce
the problem of redundant staff.
Project is the focus of work, with a formal designated project
manager will make him give more attention to the project,
and responsible for the coordination and integration work
between different units.
When there are multiple projects simultaneously, the
company can balance the resources to ensure that all the
projects can progress to complete their respective costs and
quality requirements.
The anxiety of project members is reduced greatly after the
end of the project, while they are strongly associated with
the project, on the other hand, they have a home feeling
about their functions.

DISADVANTAGES
The matrix structure has exacerbated the tensions
between functional manager and project manager.
Under any circumstances, sharing equipment, resources
and personnel among different projects will lead to
conflict and competition for scarce resources.
In the process of project implementation, the project
manager must negotiate and consult with the
department managers on various issues, which leads to
the delay in decision making.
Matrix management is not according to the principles of
unified management, project members have two bosses,
the project manager and functional managers, when their
commands are divided, it will make members at a loss.

SELECTION OF
ORGANIZATIONAL
FORM

The basic factors that influence the selection of

Project Size
Project Length
Experience with project management organization
Philosophy and visibility of upper level management
Project location
Available resources
Unique aspect of project

SELECTION OF
ORGANIZATIONAL
FORM

Galbraith has described additional factors that can

IMPLICATIONS
In a functional organization, projects that exist
within a single functional division generate no
particular organizational issues, but projects
that cut across functional divisions can be
challenging. Projects that extend across
functional divisions are demanding to manage
because the project manager has no direct
functional authority and must obtain continual
cooperation and support from functional
managers of other divisions in order to meet
project objectives. This can get complicated.

IMPLICATIONS
The matrix structure gives authority to both
project managers and functional managers the
outcome is to provide a more seamless division
of labour and ultimately to build a stronger
team culture. However, the potential for conflict
between functional managers and project
managers still exists because there is still
resource conflict. Everyone who is on a project
team still has two bosses their functional
manager and their project manager.

IMPLICATIONS
In a projectised organization authority is
centralized. Because projects are removed from
functional divisions the lines of communication
are shortened. Both these factors enhance the
ability to make swift decisions. Project teams
develop a strong sense of identity which in turn
creates a high level of commitment from team
members. Due to their involvement in
consecutive projects of a similar nature
projectised organizations can develop and
maintain a long-term body of experience and
skills in specific areas.

THANK
YOU

REFERENCES
[Link]
[Link]
cuments/PM4DEV_Project_Management_Structur
[Link]
[Link]
ow-do-organizational-structures-affect-projects/
Project Management
A system approach to planning scheduling and
controlling
By Harold Kerzner