Lec 04 project organization
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This document discusses the varying organizational structures relevant to project management, specifically functional, projectized, and matrix structures. Each structure has its advantages and disadvantages, impacting authority distribution, decision-making processes, and communication effectiveness among teams. The text emphasizes how organizational culture influences project management styles and success.
Lec 04 project organization
- 1. Project Management Project Organization By Qadir Nawaz Abbasi Mechanical Engineering Dept: MUET SZAB Campus Khairpur Mir’s April, 2018
- 2. Definition • The Project Organization Structure is an environmental factor that plays an important role determining the way, in which the organization Project Manager perform. • Organizations have their own styles and cultures influence how project work is performed. • One of the keys to determining the type of organization you work in is measuring how much authority senior management is willing to project managers. • Project Management Organizational Structure to know and understand the organizational and the culture of the entity in which you’re
- 3. • Although uniqueness abounds in business cultures, all organizations are structured in one of three ways: 1. Functional Organizational Structure 2. Matrix Organizational Structure – This can be further broken down into – Balanced matrix, Strong Matrix, andWeak Matrix Matrix 3. Projectized Organization Structure
- 4. Functional Organizations: • A Functional Project Organization structure is a type of organizational structure. • Here people are grouped as per their area of and supervised by the functional manager with the same field, so that their skills can be effectively and the organization’s objective can be achieved. • Here, all authority, budget allocation, and decision power stays with the functional manager. • A project manager has no role in this type of structure. • Even if he exists, his role will be very limited and he has the functional manager for his requirements. • Here, a project manager may have the title of a an expediter.
- 5. • The Functional Organizational structure, is suitable for an organization which has ongoing operations such as manufacturing and production operations. • In functional organizations, the organization is divided into various specific departments; e.g. human resource, marketing, finance, operations, etc. • Each department will have its own department head and he will be responsible for the performance of his section. • This helps control the quality and uniformity of performance.
- 6. Advantages of the Functional Organization Structure: Following are a few advantages of functional organizations: • Employees are grouped as per their knowledge skills. • Job responsibilities and reporting are straight to functional head, and the hierarchy path is clear. • Employees have a clear career growth path. • Within the functional department communication, cooperation and coordination is excellent.
- 7. Disadvantages of the Functional Organization Structure: Following are a few disadvantages of functional organizations: • The employee may become lazy due to repeating same type of work. • Conflicts may arise due to the promotion of employee. • The functional manager pays attention to only department; he usually doesn’t care for other or sections. • Poor communications and poor inter-department
- 8. Projectized Organizational Structure: • Projectized organizations are nearly the opposite of functional organizations. • The focus of this type of organization is the project • The idea behind a projectized organization is to loyalty to the project, not to a functional manager. • In projectized organization, for project management organizational structure, the project manager has all power and authority and everybody directly report to project manager. • Here, either no functional manager exists, or if he will have a very limited role.
- 9. Advantages of the Projectized Organizational Structure: A few advantages of this in project management organizational structure are as follows: • Clear line of authority. • Strong communication with single reporting • Flexibility in trade-offs and decision making. • Fast decision making.
- 10. Disadvantages of the Projectized Organizational Structure: A few disadvantages if in project organizational structure follows: • Authority and power can make project manager arrogant. • The work environment can be stressful because always a deadline (milestones). • Team members have sense of insecurity because the project finishes, they may lose their jobs. • If the project gets elongated, cost of employee and equipment can go higher.
- 11. Matrix Organizations: • Matrix organizations came about to minimize the differences between, and take advantage of, the strengths and functional and projectized organizations. • The idea at play here is that the best of both organizational structures can be realized by combining them into one. • The project objectives are fulfilled and good project techniques are utilized while still maintaining a hierarchical structure in the organization. • In matrix organization structure in the project management organizational structure, the knowledge and skills of the employees could be shared between the functional and the project management teams, as needed. • Here, the employee generally works under two bosses.
- 12. • The authority of the functional manager flows vertically downwards and the authority of the project manager flows sideways. • Since, the authorities flow downward and sideways, this structure is called the Matrix Organization Structure. • In matrix organization structure, usually employees have two bosses to whom they may have to report. • Which boss is more powerful depends upon the type of matrix structure. • Matrix organization structure can be further divided into three categories: o Strong Matrix. o Balanced Matrix. o Weak Matrix
- 13. Advantages of Matrix Structures • Clear articulation of project objectives. • Workable way of integrating project objectives with objectives • Efficient use of limited human resources • Rapid (often interdisciplinary) information flow through the • Retention of expert teams through the life of the project • Rapid dispersion of team members back into the functional organization upon project completion without organizational disruption • Project management trains managers to become leaders in functional organization • Project structures develop team spirit and high morale • Possibility of conflicts arising during the project carrying over functional management
- 14. Disadvantages of Matrix Structures The same seminal study of matrix organizations also notes disadvantages: • Two-boss problems, leaving project members caught in the middle • Project members playing bosses against one another • Increases organizational complexity • Requirement for high degree of cooperation between and project management • Potential for conflicting management directives • Difficulty of establishing priorities suiting both functional project management • Possible slowdowns in management reaction to events two structures required for solution • Possible structural collapse in "crunch time"