Organizational Structure and Project Management

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MASTERS IN PROJECT MANAGEMENT (PART TIME) MPM 821 (NATURE & CONTENT OF PROJECT MANAGEMENT) ASSIGNMENT ASSIGNMENT TITLE:

ORGANIZATIONAL STRUCTURE AND PROJECT MANAGEMENT ASSIGNMENT SUBMITTED ON 12TH FEBRUARY 2013.

Contents
1.1 1.2 1.3 1.4 1.5 1.6 TYPES OF ORGANIZATIONAL STRUCTURE ..................................................................................... 3 ORGANIZATIONAL CHARTS OF DIFFERENT ORGANIZATIONAL STRUCTURES. ............................ 3 HOW WOULD PROJECT MANAGEMENT OPERATE IN EACH OF THESE STRUCTURES? ................. 5 ADVANTAGES OF EACH STRUCTURE TO PROJECT MANAGEMENT .............................................. 6 DISADVANTAGES OF THE STRUCTURES TO PROJECT MANAGEMENT .......................................... 7 BIBLOGRAPHY ............................................................................................................................... 8

1.1 TYPES OF ORGANIZATIONAL STRUCTURE


The different types of organizational structures are: 1. Functional Structure 2. Project Driven/Projectized/Project Organization Structure 3. Matrix Structure

1.2 ORGANIZATIONAL CHARTS OF DIFFERENT ORGANIZATIONAL STRUCTURES.


1. Functional structure is organized as shown in figure 1

Figure 1: Chart of Functional Organizational Structure

2. Project Driven/Projectized Structure or Project Organization is charted as shown in figure 2

Figure 2: Chart of Project Driven/Projectized Structure

3. Matrix structure is charted as shown in figure 3

Figure 3: Matrix Structure Chart

1.3 HOW WOULD PROJECT MANAGEMENT OPERATE IN EACH OF THESE STRUCTURES?


1. FUNCTIONAL STRUCTURE Functional Organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments for them to each contribute. Alternatively, projects can be shuffled around to different departments where each department manager ensures that their parts of the work have been completed.

2. PROJECT DRIVEN/ PROJECTIZED/PROJECT ORGANIZATION In this setup, the organization has full control over the project, and committed participants work directly for the project manager. Project Organization is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project.

3. MATRIX STRUCTURE In this structure, authority is divided by function and by project; with each employee answering to two immediate supervisors: a functional supervisor and a project supervisor. The functional managers oversee the staffing, training, job assignment and evaluation of the project's personnel. The functional specialists are assigned one or more projects and oversee that these individualized projects' achieve their objectives are completed through maximum resource efficiency.

1.4 ADVANTAGES OF EACH STRUCTURE TO PROJECT MANAGEMENT


1. FUNCTIONAL STRUCTURE a) This structure is the oldest of the organizational methods but remains one of the most successful. b) This method performs best when used for routine work functions and the upholding of quality and work standards.

2. PROJECT DRIVEN/PROJECTIZED STRUCTURE a) Since the Project Manager has full control, this increases morale and flexibility. b) Also full control of the Project Manager results in projects that are detail-oriented, and meet expectations and budgets. 3. MATRIX STRUCTURE a) This model functions very well when there are multiple projects being coordinated at once. b) Once the Project Manager has the resources commitment, he/she is able to maintain control over the project and resources.

1.5 DISADVANTAGES OF THE STRUCTURES TO PROJECT MANAGEMENT


1. FUNCTIONAL STRUCTURE a) This method does not work very effectively when used in facilitating complex projects. b) One of the major criticisms of this organizational structure is the lack of built-in employee recognition, measurement and reward for project performance. c) Also there is very little individual accountability for any project management tasks that need to be performed.

2. PROJECT DRIVEN/PROJECTIZED STRUCTURE a) The major criticism of this structure is that it is inefficient in transferring technology and the use of resources. b) Also, by the time the members actually begin acting as a cohesive team, the project is over and the organization dissolves. c) Since this project has dedicated resources throughout its life, major inefficiency ensues when there are underutilized employees during certain parts of the project. d) There is the tendency to retain personnel on a project beyond their allotted time. e) Finally, specialists still require top-level coordination. 3. MATRIX STRUCTURE a) Individual employees report to at least two managers which can often lead to ambiguity and conflict. These problems can be avoided through good communication and solid leadership between managers.

1.6 BIBLOGRAPHY
1. Russell, Michael. Organizational Structures In Project Management. http://ezinearticles.com/?Organizational-Structures-In-Project-Management&id=424910 2. Bracale, Londy. Organization Structure Key to Project Management Success. July 5 2012. http://www.coloradotech.edu/Student-Life/CTU-Blog/July-2012/Organizational-Structure-PM.

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