PROJECT ORGANIZATION AND LEADERSHIP

PROJECT ORGANIZATION

Project organization defines the human infrastructure of the project, and identifies roles and
responsibilities of each position that facilitates the coordination and implementation of
project activities. This task is designed to define the project organization chart, the roles, and
the relationships of the project team. The organizational structure clearly identifies roles and
responsibilities of each position, augmenting the existing role definitions where necessary to
cover all of the responsibilities. The Project Organization technique that is used in this step
provides a standard set of roles and responsibilities which can be customized for a particular
project. This should cover all personnel resources required, both full and part time.

Its main rationale 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.

Conditions Requiring a Project Organization:

Conditions requiring the creation of a project organisation are as follows:

i) Project is of a technical nature, requiring utmost precision and accuracy e.g. ship-building,
designing and launching of satellites, aircraft manufacture etc.

(ii) Project completion requires huge cost.

(iii) Time factor is a critical factor, requiring project-completion within a limited prescribed
time. Any delays in completion of project within time may tell upon the reputation of the
organisation.