chapter 7- construction Project Organization

ppt

1. Project Organization 1

2. Project Organization A mismatch between project design and objectives on the one hand and the implementation capacity of an agency or institution assigned on the other has often been the most important reason for poor performance of projects. Routine and repetitive jobs are often carried out within the regular line organization; hence they do not need to be organized as projects. However , development objectives cannot always be achieved within regular organizational structures. 2

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4. Functional structure Is a structure where authority rests with the functional heads ; the structure is sectioned by departmental groups based on division of work. Staff members are divided to groups (e.g. financial, planning, public relations, engineering, legal etc) according to their specialized knowl edge. Some of these groups can be further subdivided into smaller functional groups. 4

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6. The main advantage of this organizational structure is that each functional group has complete control over its segmen t of the project, enforcing in this way the application of standards across projects . 6

7. The disadvantages of the functional organization are that of speed, flexibility and communication when attempting cross functional projects. Since in a functional organization the work is divided between the departments, any query or request must be passed among department heads for approval, causing in this way delays . In addition, the responsibility of managing the project is shared among the functional managers (head of the departments) and this may cause lack of ultimate responsibility for project management . 7

8. Projectized Organization Projectized organization is an organizational structure that focuses on projects . Projectized organizations derive their name from the fact that they are built to do project work . The project organization structure supports the completion of project activities and provides an adequate level of oversigh t, review and contribution from necessary parties . 8

9. Project managers are given both the authority, and the responsibility , to manage virtually all aspects of the project. They have the same authority as functional managers, and project team members are the project managers’ subordinates . 9

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11. The main advantages of the projectized organization are speed and flexibility . Since the experts are concentrated within the team and fully committed to the project , it is easier to react to changing requirements and complete the project on time. Responsibility for the success of the project is clearly identified and lies on the Project Manage r . 11

12. The main disadvantage of the projectized structure is the high resource costs , since the organization often has to hire extra staff with certain expertise in order to implement different projects simultaneously. In addition this type of structure burdens the administrative overhead since there may be periods where not all project teams are occupied. 12

13. Matrix Organizations Matrix organization is a blend of functional and project organizations . It is an attempt to combine functional and project structures in order to take advantage of the strengths of both structures . In matrix organization, project team members report to both a functional manager and a project manager . 13

14. The most common form is that team members have connected to project managers by dotted lines and connected to their functional managers by solid lines. Since team members report to multiple managers, a clear communications plan is essential. 14

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16. The main advantage of the matrix organization is that it retains the benefits of both functional and projectized structures . It also facilitates the effective resource allocation to different projects. For these reasons, the matrix structure is considered as the most effective structure for implementing and managing projects and therefore is widely used. 16

17. The main disadvantage of the matrix structure is the potential for conflict between the Project Manager and the functional manager regarding the resource assignment, since the functional manager has to staff multiple projects with the same experts. 17

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19. Thank you 19

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