Capital University of Science and Technology,

Islamabad

CE-5823
Advanced Project Management for
Construction Projects
Week No. 12

Dr. Syed Shujaa Safdar Gardezi

Department of Civil Engineering

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 Organizational Systems and Projects :
• Organizational Structure Type :
Functional Organization

• A functional organization is the most

common type of organizational
structure.
• This is where the organization is
divided into smaller groups based on
its special functions such as IT,
finance, engineering or marketing etc.
• This departmentalization allows
greater operational efficiency because
the employees have their skills and
knowledge to be shared within the
group.
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 Organizational Systems and Projects :
• Organizational Structure Type :
Functional Organization

• The basis of this functional

organization structure is an
arrangement where a worker has
different managers for different
areas of the organization
operation.

• Since this type of structure has

many departments, it could also
have several reporting structures
as well.

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 Organizational Systems and Projects :
Functional Organization – Advantages

• The team is managed by an experienced person with a high ability and

skills who can adequately understand and review the entire work.

• The team members work with other people in the field and it allows
sharing of thoughts and knowledge to make the people learn new skills.

• The members have the chance to get promoted within their functional areas
which can be a reason for them to stay long term. The company is getting
the advantage of their expertise and knowledge.

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 Organizational Systems and Projects :
Functional Organization – Advantages

• Because of people’s expertise, the workers with specialized skills can

perform tasks quickly, efficiently and with more confidence, while reducing
of work-related mistakes.

• The clear nature of the career path within the functional unit makes it
possible for employees to be highly motivated to advance their careers as
they move up within the hierarchy.

• Ideal structure for small businesses that focus on one product or service
because you can maximize performance by encouraging peer cooperation
among different units at various levels of management through supervision
and coordination.

• Specialization leads to operational efficiencies and enhances productivity

levels.
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 Organizational Systems and Projects :

• Organizational Structure Type :

Projectized Organization
In projectized organizations, organizations arrange their activities into
programs or portfolios and implement them through the projects.

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 Organizational Systems and Projects :

Projectized Organization
In this setup
• The project team members work under the supervision of the project manager
and they directly report to him.
• The project manager has the full control of everything. He has the power over
resources, assignments and budget.
• Right after the project has finished, the whole team will dissolve and all the
resources will be released.
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 Organizational Systems and Projects :

Projectized Organization – Advantages

Advantages of a projectized organization structure can be :

• There is a clear line of authority since the team members directly report to the
project manager. This reduces conflict and makes decision making faster and more
flexible.

• Due to a single reporting system, there are shorter lines of communication which
creates strong and effective communication within the project management team.

• Due to a sole authority, less time is consumed in communication, and the response
to stakeholders’ concerns is fast.

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 Organizational Systems and Projects :

Projectized Organization – Advantages

Advantages of a projectized organization structure can be :

• Due to a sense of urgency, milestones, good communication, and cooperation,

the learning curve is more rapid for any new member.

• Team members become versatile and flexible due to experience in different

kinds of projects.

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 Organizational Systems and Projects :

• Organizational Structure Type :

Matrix Organization

• A matrix organizational
structure is a company
structure in which the
reporting relationships are
set up as a grid, or matrix,
rather than in the
traditional hierarchy.
• In other words, employees
have dual reporting
relationships - generally to
both a functional manager
and a project manager.
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 Organizational Systems and Projects :

• Organizational Structure Type :

Types of Matrix Organization

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 Organizational Systems and Projects :

• Organizational Structure Type :

Matrix Organization

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 Organizational Systems and Projects :

• Organizational Structure Type :

Matrix Organization

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 Organizational Systems and Projects :

• Organizational Structure Type :

Matrix Organization

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 Organizational Systems and Projects :

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 Organizational Systems and Projects :

• Influence of Organizational Structure on Projects :

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 Organizational Systems and Projects :

• Organizational Structure Type :

PMO

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 Organizational Systems and Projects :

• Organizational Structure Type :

PMO
Most PMOs act as the backbone of a successful project management
approach in any organization. They offer support and information. Most
provide services to their organizations and projects such as :

Governance: They make sure that the right decisions are being made
by the right people based on the right information. This can also include
auditing and peer reviews, developing project structure and making sure
there’s accountability.
Transparency: Provides information that is relevant and accurate to
support effective decision-making.

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 Organizational Systems and Projects :

• Organizational Structure Type :

PMO
Reusability: There’s no reason to “reinvent the wheel,” so they are a
depository of learned lessons, offering templates and best practices from
previous successful projects.

Delivery Support: Facilitate project teams and help them do their jobs
more effectively and productively by streamlining process and
bureaucracy, offering training, mentoring and quality assurance.

Traceability: They also manage documentation, project history and

organizational knowledge.

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 Organizational Systems and Projects :

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 Organizational Systems and Projects :

• Factors affecting the type of Structure in an organization:

Each organization considers numerous factors for inclusion in its

organizational structure.

Each factor may carry a different level of importance in the final analysis.

The combination of the factor, its value, and relative importance provides
the organization’s decision makers with the right information for inclusion
in the analysis.

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 Organizational Systems and Projects :

• Factors affecting the type of Structure in an organization:

Factors to consider in selecting an organizational structure include but are

not limited to:
– Degree of alignment with organizational objectives,
– Specialization capabilities,
– Span of control, efficiency, and effectiveness,
– Clear path for escalation of decisions,
– Clear line and scope of authority,
– Delegation capabilities,

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 Organizational Systems and Projects :

• Factors affecting the type of Structure in an organization:

– Delegation capabilities,
– Accountability assignment,
– Responsibility assignment,
– Adaptability of design,
– Simplicity of design,
– Efficiency of performance,
– Cost considerations,
– Physical locations (e.g., regional, and virtual), and
– Clear communication (e.g., policies, status of work, and organization’s
vision).

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