PROJECT ORGANIZATION

This presentation provides detailed knowledge about the organizational structure of a project.

1. PROJECT ORGANIZATION DR. RICHA SINGHAL ASSOCIATE PROFESSOR DEPARTMENT OF EAFM S.S.JAIN SUBODH PG COLLEGE (AUTONOMOUS ) Mr. SAMEER KATARIA B.COM (HONS) EAFM S.S.JAIN SUBODH PG COLLEGE (AUTONOMOUS

2. PRESENTATION OUTLINE PROJECT ORGANIZATION I NTRODUCTION ORGANIZATION STRUCTURE AND RESPONSIBILITIES LINE STRUCTURE FUNCTIONAL STRUCTURE LINE AND STAFF STRUCTURE DIVISONAL STRUCTURE MATRIX STRUCTURE RESPONSIBILITY MATRIX. DR. RICHA SINGHAL 2

3. INTRODUCTION Project organization is a temporary setup formed for specific projects. It's also called “projectized organizational structure.” The project manager  assigned for the project is the head of this structure. Once the project is complete, you may choose to dismantle this setup or move it to form a new project. In the case of a new project, the project manager might have to reshuffle the staff to fit the new plan. You’ll hire resources or specialists from different functional departments. A TEMPORARY ORGANIZATION DESIGNED TO ACHIVE SPECIFIC RESULTS BY USING A TEAM OF SPECIALISTS FROM DIFFERENT FUNCTIONAL AREAS IN THE FIRM IS CALLED A PROJECT ORGANIZATION . UNITY OF COMMAND INTER-RELATED TASKS CLEAR-CUT AUTHORITY LINES WELL-DEFINED RESPONSIBILITY DR. RICHA SINGHAL 3

4. Advantages Easy to communicate, hence can stay up to date The team can have a strong sense of identity as all are working together to achieve a common goal Manage resources efficiently and effectively Disadvantages No clear growth path for the team once the project gets completed It's expensive because the organization dedicates all the specialists for one single project. DR. RICHA SINGHAL 4

5. PROJECT ORGANIZATION STRUCTURE THE PROJECT ORGANIZATION STRUCTURE IDENTIFIES THE RELATIONSHIP BETWEEN THE PROJECT PARTICIPANTS, TOGETHER WITH DEFINING THEIR DUTIES, RESPONSIBILITIES AND AUTHORITY. LINE AND STAFF ORGANIZATION FUNCTIONAL ORGANIZATION MATRIX ORGANIZATION DR. RICHA SINGHAL 5

6.   It has well-defined authority levels in the hierarchical structure. Power flows from the top down to different operational levels or workers. DR. RICHA SINGHAL 6 LINE ORGANIZATION This Photo by Unknown Author is licensed under CC BY-SA-NC

7. FUNCTIONAL ORGANIZATION The Functional Organization groups workers based on their area of specialization. This structure is an extension of the Line Organization. The functional manager leads the team and manages all the operations or businesses . DR. RICHA SINGHAL 7

8. L INE AND STAFF ORGANIZATION The Line and Staff Organization is a combination of line structure and functional structure. The responsibility for different functions is assigned to specialized persons/ team on whole time basis or on part time basis and a project co-Ordinator is appointed to coordinate the work. DR. RICHA SINGHAL 8

9. ADVANTAGES The line and staff organization provides the benefits of planned specialization. Staff can make quality decisions as they get right information and support from specialists at the right time so they can get better decisions and enjoy better coordination. Get training to enhance skills, get an opportunity to work in research & development. Unity of command is maintained. There is a clear flow of authority and responsibility among line officers. There is a greater scope for growth and expansion by adding general and specialist staff for new activity without disturbing the basic structure. DR. RICHA SINGHAL 9

10. DISADVANTAGES Increased confusion and conflicts among the staff. Jealousies and friction between line and staff reduce operational efficiency of the enterprise. Higher costs on hiring specialist A tendency to develop personal image within the group. Staff men may not perform their job well because they are not accountable for the results. DR. RICHA SINGHAL 10

11. DIVISIONAL ORGANIZATION DR. RICHA SINGHAL 11 T his type of organization often resembles a Functional Organization. The team members work in different departments. This setup splits the employees into segments based on products, markets, or services. T he divisional organization's segments or division are autonomous. The project division has over all responsibility for the project. It prepares the designs of the buildings, plant layout, works out the process, makes purchases and undertakes installation of plant and equipment and other related works. This type of project organization is employed in aerospace, aircraft manufacture, construction and professional area like management consultancy.

12. ADVANTAGES The project manager has full authority and control over the division. Project management allows maximum use of specialised knowledge which can be transferred from one project to another. Project organization has been found to fit a number of widely varying situations, from building contractors and advertising agencies to accounting and consulting firms. The timely completion of a project without disturbing the normal routine of rest of the organisation. DR. RICHA SINGHAL 12

13. DISADVANTAGES The autonomous nature often results in duplication of functions and resources. Segmentation creates boundaries among divisions and may lead to poor inter-unit coordination. There may be role conflicts, poor loyalty and under utilization of resources due to the fear of being forgotten at the time of promotion. A project manager is responsible for project outcomes but the ongoing conventional organization does not give him unlimited authority. DR. RICHA SINGHAL 13

14. MATRIX ORGANIZATION STRUCTURE DR. RICHA SINGHAL 14 It is a two dimensional structure, a combination of divisional structure and traditional functional structure. A permanent organization designed to achieve specific results by using teams of specialists from different functional areas in the organization is a matrix organization or grid organization. Functional departments create a vertical chain of command while the project teams form the horizontal chain.

15. ADVANTAGES This structure facilitates the proper sharing and utilization of highly specialized staff, equipment and resources. Each project or product unit can share the specialized resource with other units, rather than duplicating it to provide independent service for each. The matrix organization provides the professional identification of specialists and professionals based on their specialization and efficiency . Talented specialists can be utilized more efficiently under this structure. Matrix structure fosters flexibility throughout the organization. Various skills can be brought together in this type of organization. Effective Control : The main responsibility of the project manager is to maintain coordination among interrelated factors of a particular project. He has to  communicate  both with the horizontal and vertical authorities so that the project work can be run smoothly. Similarly, functional managers are responsible for providing technical and administrative guidance to projects. This leads to a better and more effective control over regular operation. Technical Excellence : Matrix structure ensures the maintenance of high technical standards. They facilitate high quality and innovative solutions to technical problems. Motivation : Matrix structure motivates to the project staff as they can focus directly on the completion of a particular project. Lower level get an opportunity to participate in important decisions faster higher levels of motivation and commitment. DR. RICHA SINGHAL 15

16. DISADVANTAGES Costly : This structure increases administrative cost. In this structure, specialists from the project as well as functional authorities involve in project works. It increases paperwork and other information costs. Besides, it is essential to pay lump-sum remuneration to functional and project specialists. Hence, this structure is costly to implement and maintain. Power Struggle : One of the main problems with the matrix structure is that the project manager and functional manager may not agree on priorities or resource allocations, leading to conflict and power struggle. Difficulties : In matrix structure the project manager controls the administrative decisions, while the functional managers control the technical decisions. Due to this division of power and responsibility management control and co-ordination is difficult in a matrix structure. Slowness in Decisions : Functional and project specialists can shift responsibility for decision making. This delays decisions. Likewise, all decisions may become group decisions, leading to gross inefficiency. Complex Organization Structure: The matrix structure is complex and more difficult for the participants to understand than the functional or pure project organization. Unity of Command : In matrix structure, subordinates have to follow instructions from more than one superior. Generally, they receive orders from functional managers as well as from project managers. In some cases, subordinates may receive instructions from both the superiors at a time. This structure violates the principle of unity of command. DR. RICHA SINGHAL 16

17. RESPONSIBILITY MATRIX The project manager has total responsibility and accountability for project success. The functional departments on the other hand have functional responsibility of the project. The kind of responsibility defined for each organisational position or work package intersection should be determined by mutual agreement of the workers assigned and their managers. This intersection of the Work Break-down Structure (WBS) and the organisational structure represented by a chart is called responsibility matrix. DR. RICHA SINGHAL 17 This Photo by Unknown Author is licensed under CC BY

18. THANKS DR. RICHA SINGHAL 18