Project Management

Module 3: Project organization and planning

 The elements of projects
Project Objectives: Clearly defined goals and objectives that describe the
desired outcomes of the project. Objectives provide a roadmap for the
project team and stakeholders.

Scope: A detailed definition of what is included and excluded in the project.

The scope outlines the boundaries and deliverables, helping to manage
expectations and prevent scope creep.

Stakeholders: Individuals or groups who have an interest or influence in the

project. Stakeholders may include project sponsors, team members,
customers, end-users, and other relevant parties.
 The elements of projects
Project Team: The group of individuals responsible for executing the project.
This includes project managers, team members, subject matter experts,
and other roles essential to project success.

Project Schedule: A timeline that outlines the sequence of activities and

milestones in the project. It includes start and end dates, duration,
dependencies, and critical paths.

Project Budget: A detailed financial plan that outlines the estimated costs
and resources required to complete the project. It includes budgets for
labor, materials, equipment, and any other relevant expenses.
 The elements of projects
Risk Management Plan: Identification, assessment, and mitigation
strategies for potential risks that may impact the project. The plan outlines
how risks will be managed throughout the project lifecycle.

Communication Plan: A strategy for how information will be shared,

distributed, and communicated throughout the project. This includes
communication channels, frequency, and key messages.

Quality Plan: Criteria and standards for measuring and ensuring the quality
of project deliverable. The plan outlines quality control and assurance
processes.
 The elements of projects
Procurement Plan: A plan for acquiring goods, services, or resources
externally. It includes vendor selection, contracts, and other procurement-
related activities.

Change Management: Strategies for handling changes to project scope,

schedule, or other elements. Change management ensures that
modifications are controlled, documented, and communicated effectively.

Monitoring and Control Mechanisms: Systems and processes for tracking

project progress, monitoring performance, and controlling deviations from
the project plan. This includes key performance indicators (KPIs) and
metrics.
 The elements of projects
Documentation: Comprehensive documentation of project plans, requirements,
designs, decisions, and other relevant information. Proper documentation
ensures transparency and facilitates knowledge transfer.

Closure Plan: Procedures and criteria for formally closing the project, including
handovers, documentation of lessons learned, and post-project evaluations.

Project Review and Evaluation: A process for assessing the project's overall
success, identifying lessons learned, and determining areas for improvement in
future projects.

Legal and Ethical Considerations: Addressing legal and ethical considerations

relevant to the project, such as compliance with regulations, intellectual property
rights, and ethical standards.
 The three major forms of organizational
structure
Functional Structure:

Description: In a functional structure, the organization is grouped based

on specific functions or departments, such as marketing, finance,
operations, and human resources.

Characteristics: Each functional area operates independently, and

employees report to functional managers. This structure is characterized by
specialization and efficiency within each department.
 The three major forms of organizational
structure
Divisional Structure:

Description: In a divisional structure, the organization is organized into

divisions, each focused on a specific product, service, customer segment, or
geographic region.

Characteristics: Each division operates as a semi-autonomous unit with

its own functional departments. This structure is suitable for organizations
with diverse product lines or global operations.
 The three major forms of organizational
structure
Matrix Structure:

Description: A matrix structure combines elements of both functional

and divisional structures. In this structure, employees report to both a
functional manager and a project or product manager.

Characteristics: Employees have dual reporting relationships, which can

enhance flexibility and adaptability. Matrix structures are often used for
complex projects or in organizations that require a balance between
functional expertise and project-oriented tasks.
 The functional organization
Functional Departments:

Description: The organization is divided into functional departments,

such as marketing, finance, operations, human resources, and research and
development.

Purpose: Each department is responsible for specific tasks and functions

related to its area of expertise.
 The functional organization
Clear Hierarchy:

Description: There is a clear hierarchical structure with a chain of

command, typically headed by a CEO or top executive, followed by
functional managers overseeing individual departments.

Communication Flow: Communication and decision-making generally

follow a top-down approach, with information flowing from higher
management to lower levels.
 The functional organization
Specialization:

Description: Specialization is a key characteristic, with employees within

each functional department possessing expertise in specific areas.

Efficiency: This specialization leads to increased efficiency and depth of

knowledge within each department, promoting expertise and skill
development.
 The functional organization
Centralized Decision-Making:

Description: Decision-making authority is often centralized at the top of

the organizational hierarchy.

Advantages: Centralization can lead to quicker decision-making,

especially when decisions are related to the core functions of each
department.
 The functional organization
Efficient Resource Utilization:

Description: Resources, including human resources, equipment, and

technology, are allocated and managed efficiently within each functional
unit.

Advantages: This structure allows for the optimization of resources

within each department, enhancing productivity and performance.
 The functional organization
Clear Career Paths:

Description: Employees typically have clear career paths within their

functional areas, with opportunities for advancement based on expertise
and experience.

Advantages: This structure provides a defined career progression for

employees, leading to specialized skill development.
 The functional organization
Clear Career Paths:

Description: Employees typically have clear career paths within their

functional areas, with opportunities for advancement based on expertise
and experience.

Advantages: This structure provides a defined career progression for

employees, leading to specialized skill development.
 The functional organization
Scalability Challenges:

Description: As organizations grow or encounter new challenges, a

functional structure may face scalability challenges due to potential
difficulties in coordinating across multiple departments.

Adaptability: Adaptability to changes in the external environment may

be limited, requiring additional coordination efforts.
 The functional organization
Suitability for Small to Medium-sized Organizations:

Description: Functional structures are often more suitable for small to

medium-sized organizations with a straightforward business model and
limited complexity.

Advantages: The simplicity of the structure makes it easier to manage in

smaller organizations.
 The limitations of functional organization
Limited Communication and Coordination Across Functions:
In a functional structure, different departments operate independently,
leading to potential communication barriers between functions. This can
result in silos, where departments may not effectively share information or
collaborate.

Slow Response to External Changes:

Functional organizations may struggle to adapt quickly to changes in the
external environment. The focus on specialized functions can hinder agility,
making it challenging to respond promptly to market shifts or emerging
opportunities.
 The limitations of functional organization
Lack of Flexibility and Innovation:
Functional structures may become rigid over time, limiting the
organization's ability to innovate. Innovation often requires cross-functional
collaboration and a flexible approach, which can be stifled in a highly
specialized functional setup.

Difficulty in Project Management:

Coordinating projects that involve multiple functions can be complex in
a functional organization. Project managers may face challenges in
accessing and aligning resources from different departments, potentially
leading to delays and inefficiencies.
 The limitations of functional organization
Decision-Making Bottlenecks:
Hierarchical decision-making processes in functional structures can lead
to bottlenecks, as decisions often need to move up the chain of command.
This can slow down the decision-making process, especially for critical and
time-sensitive issues.

Employee Frustration and Lack of Motivation:

Employees in functional structures may experience frustration due to
limited opportunities for cross-functional involvement and a narrow focus
on their specific roles. This can lead to a lack of motivation and
engagement.
 The limitations of functional organization
Duplication of Resources:
Each function operates independently, which can lead to the duplication
of resources. For example, multiple departments may have their own
support staff, technology, or facilities, resulting in inefficiencies and
increased costs.

Customer Focus Challenges:

Functional structures may prioritize internal processes over customer
needs. The lack of a clear customer-centric focus can result in reduced
responsiveness to changing customer demands and preferences.
 The limitations of functional organization
Difficulty in Managing Change:
Implementing organizational change can be challenging in a functional
structure, as it may disrupt established departmental routines and
hierarchies. Resistance to change from within departments can impede
organizational agility.

Risk of Sub-Optimization:
Functional structures often encourage optimization within individual
departments, but this may not lead to optimal overall organizational
performance. Decisions made to benefit one function may negatively
impact the performance of other functions or the organization as a whole.
 The limitations of functional organization
Limited Employee Development Opportunities:
Employees in functional structures may have limited exposure to
different aspects of the business. This can hinder their professional
development, as they may not acquire a broad range of skills and
experiences.

Challenges in Organizational Alignment:

Aligning the goals and objectives of different functions with the overall
strategic objectives of the organization can be challenging. This lack of
alignment may result in departments pursuing goals that are not fully
supportive of the organization's mission.
 The Product organization
Product-Centric Structure:
Description: The organization is structured around its various products
or product lines.
Focus: Each product or product line has its dedicated team responsible
for its development, marketing, and overall management.

Cross-Functional Teams:
Description: Cross-functional teams, composed of members from
different functional areas (e.g., marketing, engineering, sales), work
collaboratively on specific products.
Collaboration: This structure promotes collaboration and coordination
among team members with diverse skills, ensuring a holistic approach to
product development.
 The Product organization
End-to-End Responsibility:
Description: Teams within the product organization are responsible for
the entire lifecycle of the product, from development and launch to
ongoing support and improvement.
Advantages: This approach allows for more efficient decision-making
and problem-solving throughout the product's life.

Customer Focus:
Description: The structure emphasizes a customer-centric approach,
with teams focused on delivering products that meet customer needs and
preferences.
Advantages: A heightened focus on customer satisfaction can lead to
improved product design, quality, and overall customer experience.
 The Product organization
Rapid Adaptation to Market Changes:
Description: Product teams can quickly adapt to changes in the market
or customer demands, as decision-making is localized within each product
team.
Flexibility: This structure enhances the organization's agility and
responsiveness to dynamic market conditions.

Innovation and Creativity:

Description: Product organizations encourage innovation and creativity,
as teams are dedicated to finding novel solutions and improvements for
their specific products.
Advantages: This fosters a culture of continuous innovation and can lead
to the development of cutting-edge products.
 The Product organization
Efficient Communication:
Description: Communication is streamlined within product teams,
enabling faster and more direct communication among team members.
Advantages: Efficient communication reduces the need for extensive
coordination across multiple functional departments.

Performance Measurement by Product:

Description: Performance metrics and success criteria are often tied to
the performance of individual products or product lines.
Advantages: This approach provides a clear evaluation of each product's
success and allows for targeted improvements
Advantages of a Product Organization over Functional
Organization
Improved Focus on Products:
Advantage: The product organization structure ensures a dedicated focus
on individual products or product lines, facilitating a deeper understanding of
customer needs and market dynamics.

Faster Decision-Making:
Advantage: Decisions can be made more swiftly within product teams, as
there is less reliance on approvals from multiple functional departments.

Enhanced Accountability:
Advantage: Product teams have end-to-end responsibility for their
products, fostering a sense of ownership and accountability for the product's
Advantages of a Product Organization over Functional
Organization
Increased Flexibility and Adaptability:
Advantage: The structure enhances the organization's flexibility and adaptability
to changes in the market, allowing for quicker responses to emerging trends or
competitive shifts.

Encouragement of Innovation:
Advantage: A product-centric structure encourages a culture of innovation, as
teams are empowered to explore creative solutions and improvements for their
specific products.

Effective Communication:
Advantage: Communication is streamlined within product teams, reducing
potential bottlenecks associated with communication across multiple functional
departments.
Advantages of a Product Organization over Functional
Organization
Customization of Strategies:

Advantage: Strategies and approaches can be customized for each

product or product line, allowing for tailored solutions that align with the
unique characteristics of each offering.

Clear Product Performance Evaluation:

Advantage: Performance measurement is directly tied to individual

products, providing a clear evaluation of the success and effectiveness of
each product.
Matrix organization is suited for enterprises that are
project driven
Project-Centric Focus:
Explanation: In a matrix organization, the project manager has significant
influence and control over project-related activities.
Benefits: This ensures a strong project-centric focus, aligning the organization's
efforts with the successful execution of projects, which is crucial for enterprises
driven by project outcomes.

Efficient Resource Utilization:

Explanation: The matrix structure allows for the efficient utilization of resources
as individuals with specific skills can be allocated to projects based on their
expertise.
Benefits: Enterprises driven by projects often require diverse skill sets at
different stages. The matrix structure enables the organization to tap into the
expertise of individuals across various functions, optimizing resource allocation.
Matrix organization is suited for enterprises that are
project driven
Flexibility and Adaptability:
Explanation: Matrix organizations are known for their flexibility and adaptability
to changing project requirements.
Benefits: In project-driven enterprises, where project scopes and priorities may
evolve, the ability to make quick adjustments is essential. The matrix structure
accommodates changes effectively.

Cross-Functional Collaboration:
Explanation: The matrix structure promotes collaboration among individuals
from different functional areas working on the same project.
Benefits: Enterprises driven by projects often require interdisciplinary
collaboration. The matrix structure facilitates seamless communication and
cooperation across various functions, fostering a holistic approach to project
execution.
Matrix organization is suited for enterprises that are
project driven
Clear Project Ownership:
Explanation: Project managers in a matrix organization have a high degree of
ownership and accountability for their projects.
Benefits: Clear project ownership is essential in project-driven enterprises,
ensuring that individuals responsible for project success have the authority and
responsibility to make decisions and drive the project forward.

Rapid Decision-Making:

Explanation: Decision-making processes are streamlined within the matrix

structure, empowering project managers to make decisions related to their
projects.
Benefits: In project-driven enterprises, where timelines are critical, the ability to
 Matrix organization is suited for enterprises that are
project driven
Specialized Expertise:
Explanation: Functional managers retain control over their specialized areas,
ensuring that individuals maintain high levels of expertise in their respective
domains.
Benefits: Projects often require specialized knowledge. The matrix structure
allows project teams to draw on the expertise of individuals from various functions,
contributing to the overall success of the project.

Effective Communication:
Explanation: Clear lines of communication are established within the matrix
structure, reducing the likelihood of miscommunication.
Benefits: Effective communication is vital in project-driven enterprises to ensure
that project teams are aligned, tasks are coordinated, and everyone is working
toward common project objectives.
Matrix organization is suited for enterprises that are
project driven
Improved Project Control:

Explanation: Project managers have a significant degree of control over

project-specific activities, timelines, and resources.

Benefits: Enhanced project control is critical for project-driven enterprises

to monitor progress, address challenges, and ensure that projects are
delivered successfully.
 The merits of pure matrix form of organization
Flexibility:
Description: The pure matrix structure offers a high degree of flexibility,
allowing organizations to adapt to changing project requirements and
priorities.
Benefits: This flexibility enables the organization to allocate resources
dynamically and respond swiftly to shifts in project scope or focus.

Optimal Resource Utilization:

Description: Resources, including skilled individuals from different
functional areas, can be allocated efficiently to projects based on their
expertise.
Benefits: This allows for the effective utilization of specialized skills,
promoting efficiency in project execution.
 The merits of pure matrix form of organization
Enhanced Communication and Coordination:
Description: The matrix structure fosters improved communication and
coordination among team members from different functions.
Benefits: Clear communication lines help in avoiding misunderstandings,
ensuring that everyone is on the same page, and promoting effective
collaboration.

Balanced Decision-Making:
Description: Decision-making authority is shared between functional and
project managers, creating a balance between functional expertise and
project-specific needs.
Benefits: This balanced approach ensures that decisions are made with
consideration for both the functional requirements and project objectives.
 The merits of pure matrix form of organization
Project Ownership and Accountability:
Description: Project managers have a significant level of ownership and
accountability for their projects.
Benefits: This ownership fosters a sense of responsibility and commitment,
contributing to the success of the project.

Cross-Functional Collaboration:
Description: The structure promotes collaboration among individuals from
different functional areas working on the same project.
Benefits: Cross-functional collaboration brings diverse perspectives to the
project, enhancing problem-solving and creativity.
Demerits (Disadvantages) of Pure Matrix Organization:
Dual Authority and Conflicts:
Description: Individuals report to both functional and project managers,
leading to potential conflicts and challenges in managing dual authority.
Drawbacks: Confusion may arise regarding priorities, and conflicts
between functional and project managers may hinder decision-making.

Complexity and Overhead:

Description: The pure matrix structure is inherently complex, requiring
careful management to avoid confusion and inefficiencies.
Drawbacks: The complexity can result in increased administrative
overhead and difficulties in coordinating activities across multiple
dimensions.
Demerits (Disadvantages) of Pure Matrix Organization:
Role Ambiguity:
Description: Employees may face role ambiguity, as they navigate
responsibilities within both functional and project contexts.
Drawbacks: Role ambiguity can lead to confusion, stress, and challenges in
managing conflicting expectations.

Resource Overallocation and Burnout:

Description: The structure may lead to resource overallocation, as
individuals may be simultaneously assigned to multiple projects or tasks.
Drawbacks: Overallocation can contribute to burnout, reduced
productivity, and challenges in meeting project deadlines.
Demerits (Disadvantages) of Pure Matrix Organization:
Communication Challenges:
Description: The need for coordination across multiple dimensions can
result in communication challenges, particularly if communication channels
are not well-established.
Drawbacks: Inadequate communication can lead to misunderstandings,
delays, and difficulties in aligning team members.

Conflict Resolution:
Description: Resolving conflicts between functional and project managers
requires effective communication and conflict resolution mechanisms.
Drawbacks: In the absence of robust conflict resolution processes,
disputes may escalate and negatively impact team morale.
Demerits (Disadvantages) of Pure Matrix Organization:
Difficulty in Project Transition:

Description: Transitioning from a functional to a project environment and

vice versa can be challenging.

Drawbacks: The organization may face difficulties in smoothly

transitioning employees between different projects and functional roles.
 Modified Matrix structure
Modified Matrix Structure:

In a modified matrix structure, also known as a balanced matrix or a weak

matrix, there is a more balanced distribution of power between the
functional manager and the project manager.

In this structure, project managers have more authority and autonomy

compared to a traditional or pure functional matrix, but they still may not
have full control over project resources
 Modified Matrix structure
Balanced Authority:
Description: Both the functional manager and the project manager share
authority over resources and decision-making.
Benefits: This structure attempts to strike a balance between project
requirements and functional objectives, reducing conflicts compared to a
strong matrix.

Enhanced Project Focus:

Description: While functional managers still have authority over resources,
project managers have more influence over project-related decisions.
Benefits: This allows for a more dedicated focus on project goals,
timelines, and deliverables compared to a pure functional structure.
 Modified Matrix structure
Improved Communication:
Description: Communication is facilitated between functional and project
teams, aiming to enhance collaboration and coordination.
Benefits: The modified matrix structure seeks to address communication
challenges seen in a pure functional matrix.

Flexible Resource Allocation:

Description: Resources can be allocated more flexibly than in a strict
functional matrix, allowing for better adaptation to project needs.
Benefits: Flexibility in resource allocation helps in optimizing resources for
project success.
 Modified Matrix structure
Reduced Conflict:

Description: While conflicts may still arise, the balanced authority can
reduce the severity of conflicts between functional and project managers.

Benefits: Reduced conflict contributes to a smoother project management

process.
 Pure Project Organization Structure (or Projectized
Structure)
In a pure project organization structure, the entire organization is
structured around projects.
Each project is treated as a separate entity with its own dedicated team
and resources.
Project managers have full authority and control over their projects.

Project-Centric Organization:
Description: The entire organization is organized around projects, and
project managers have full authority over project resources.
Benefits: This structure ensures a strong project-centric focus, with
clear ownership and accountability for each project.
 Pure Project Organization Structure (or Projectized
Dedicated Project Teams:
Structure)
Description: Teams are formed for specific projects, and team members
report directly to the project manager.
Benefits: Dedicated project teams contribute to efficient collaboration,
improved communication, and a shared commitment to project success.

Rapid Decision-Making:
Description: Project managers have the authority to make quick decisions
related to their projects without the need for approvals from functional
managers.
Benefits: Rapid decision-making is crucial for meeting project deadlines
and addressing challenges promptly.
 Pure Project Organization Structure (or Projectized
Highly Specialized Teams:
Structure)
Description: Teams are often composed of individuals with specialized
skills relevant to the project requirements.
Benefits: Specialized teams enhance the organization's capability to
handle diverse and complex projects.

Improved Project Control:

Description: Project managers have complete control over project-specific
activities, timelines, and resources.
Benefits: Enhanced project control is critical for monitoring progress,
addressing issues, and ensuring successful project delivery.
 Pure Project Organization Structure (or Projectized
Clear Project Ownership:
Structure)
Description: Project managers have full ownership and accountability for
their projects.
Benefits: Clear project ownership fosters a sense of responsibility,
commitment, and focus on achieving project objectives.

Efficient Communication:
Description: Communication is streamlined within project teams, reducing
the need for extensive coordination across multiple functional departments.
Benefits: Efficient communication ensures that the project team is aligned,
tasks are coordinated, and everyone is working toward common project
objectives.
The method of choosing an organizational structure to
suit a given project
Choosing an organizational structure for a given project is a critical
decision that can significantly impact the project's success.
The selection process involves evaluating various factors and aligning the
structure with the project's objectives, complexity, and characteristics.

1. Understand Project Requirements:

Objective: Clearly define the goals, scope, and requirements of the project.
Considerations: Identify the project's size, complexity, duration, and the
level of innovation or uniqueness involved.
The method of choosing an organizational structure to
suit a given project
2. Analyze Project Characteristics:
Objective: Evaluate specific characteristics that influence the choice of
organizational structure.
Considerations:
Size and Complexity: Larger and more complex projects may benefit
from a more projectized structure.
Innovation: Innovative projects may require flexibility and a higher
degree of autonomy.
Inter-dependencies: Consider the level of interdependence between
tasks and functions.
The method of choosing an organizational structure to
suit a given project
3. Evaluate Resource Availability:
Objective: Assess the availability and expertise of resources, including
both human and material resources.
Considerations:
Specialized Skills: If the project requires specialized skills, a structure
that allows for dedicated project teams may be suitable.
Resource Flexibility: Determine the availability of resources and the
flexibility to allocate them to the project.
The method of choosing an organizational structure to
suit a given project
4. Assess Time Sensitivity:
Objective: Consider the project's time constraints and deadlines.
Considerations:
Urgency: Time-sensitive projects may benefit from a structure that
allows for rapid decision-making and streamlined communication.
Project Duration: Longer projects may require structures that can
adapt to changes over an extended period.
The method of choosing an organizational structure to
suit a given project
5. Understand Stakeholder Expectations:
Objective: Identify and understand the expectations of key stakeholders.
Considerations:
Communication Preferences: Some stakeholders may prefer a high
level of involvement and communication, influencing the need for a more
collaborative structure.
Reporting Structure: Consider how stakeholders want to receive
project updates and information.
The method of choosing an organizational structure to
suit a given project
6. Evaluate Organizational Culture:
Objective: Assess the existing organizational culture and structure.
Considerations:
Flexibility: Determine the organization's willingness and ability to adapt
to different structures.
Leadership Style: Consider the leadership style prevalent in the
organization.
The method of choosing an organizational structure to
suit a given project
7. Review Past Project Experiences:
Objective: Learn from past project experiences within the organization.
Considerations:
Successes and Failures: Analyze which structures were successful or
problematic in similar projects.
Lessons Learned: Incorporate lessons learned from past projects into
the decision-making process.
The method of choosing an organizational structure to
suit a given project
8. Consider Legal and Regulatory Requirements:
Objective: Ensure compliance with legal and regulatory requirements.
Considerations:
Industry Regulations: Certain industries may have specific regulations
that influence the choice of structure.
Contractual Obligations: Review contractual obligations and
agreements that may impact the organizational structure.
The method of choosing an organizational structure to
suit a given project
9. Conduct Risk Assessment:
Objective: Identify potential risks associated with different organizational
structures.
Considerations:
Communication Risks: Evaluate the risk of miscommunication and
conflicts in different structures.
Resource Risks: Assess the risk of resource constraints or
overallocation.
The method of choosing an organizational structure to
suit a given project
10. Engage Key Stakeholders:
Objective: Involve key stakeholders in the decision-making process.
Considerations:
Feedback: Gather input from project sponsors, team members, and
other relevant stakeholders.
Buy-In: Ensure that stakeholders understand and support the chosen
organizational structure.
The method of choosing an organizational structure to
suit a given project
11. Select the Appropriate Structure:
Objective: Based on the analysis, choose the organizational structure that
best aligns with the project's requirements and considerations.
Considerations:
Functional, Matrix, or Projectized: Decide whether a functional, matrix
(weak, balanced, strong), or projectized structure is most appropriate.
Hybrid Approaches: Consider hybrid approaches that combine
elements of different structures for a tailored solution.
The method of choosing an organizational structure to
suit a given project
12. Develop Implementation Plan:
Objective: Plan the implementation of the chosen organizational structure.
Considerations:
Transition Plan: Develop a plan for transitioning from the existing
structure to the new one.
Communication Strategy: Communicate the change to all stakeholders
and ensure understanding and buy-in.
The method of choosing an organizational structure to
suit a given project
13. Monitor and Adjust:
Objective: Continuously monitor the effectiveness of the chosen structure
and make adjustments as needed.
Considerations:
Feedback Mechanisms: Establish feedback mechanisms to gather input
on the success of the chosen structure.
Adaptability: Be prepared to make adjustments based on evolving
project needs.
The method of choosing an organizational structure to
suit a given project
14. Document Decision-Making Process:
Objective: Document the rationale behind the chosen organizational
structure.
Considerations:
Record Keeping: Maintain documentation for future reference and
learning.
Lessons Learned: Capture insights gained from the decision-making
process for future projects.
The method of choosing an organizational structure to
suit a given project
15. Seek Continuous Improvement:
Objective: Emphasize a culture of continuous improvement in project
management.
Considerations:
Feedback Loop: Establish a feedback loop for ongoing improvement.
Adaptation: Be open to modifying the organizational structure based
on evolving project and organizational needs.
 Work Breakdown Structure (WBS)

A Work Breakdown Structure (WBS) is a hierarchical decomposition of a

project into phases, deliverables, and work packages.

It systematically breaks down the project scope into manageable

components, providing a visual and structured representation of the project's
tasks and deliverables.
 Work Breakdown Structure (WBS)
Definition:
Overview: The WBS is a project management tool that organizes the
project's scope into smaller, more manageable parts.
Hierarchical Structure: It creates a tree-like structure, where the top level
represents the overall project and subsequent levels break it down into finer
detail.

Purpose:
Scope Definition: It helps define and communicate the project scope to all
stakeholders.
Planning: Facilitates project planning, resource allocation, and scheduling.
Control: Provides a basis for project control and monitoring progress.
 Work Breakdown Structure (WBS)
Hierarchy Levels:
Top Level (Level 1): Represents the entire project.
Subsequent Levels: Break down the project into phases, deliverables, and
work packages in a hierarchical fashion.
Lowest Level (Work Package): The smallest unit of work that can be
assigned and managed.

Construction:
Top-Down Approach: Typically constructed in a top-down manner, starting
with the major deliverables and breaking them down into smaller, more
manageable components.
Decomposition: Involves breaking down the project scope into
increasingly detailed levels until the work packages are defined.
 Work Breakdown Structure (WBS)
Coding System:
Numeric or Alphanumeric Codes: Each element in the WBS is assigned a
unique code for easy reference and identification.
Coding Structure: The coding structure allows for easy organization and
tracking of project components.

Application Areas:
Project Planning: Aids in developing project plans and schedules.
Budgeting: Supports the estimation of project costs.
Resource Allocation: Facilitates the assignment of resources to specific
tasks.
Scope Verification: Assists in verifying that all project scope is captured.
 Work Breakdown Structure (WBS)
Benefits:

Clarity: Provides a clear and visual representation of project scope and

components.
Communication: Enhances communication among project stakeholders.
Control: Enables better control and monitoring of project activities.
Change Management: Facilitates managing changes by understanding the
impact on specific components.
 Work Breakdown Structure (WBS)
Tips for Creating WBS:

Define Deliverables: Start by identifying the major deliverables.

Use Verb-Noun Format: Phrase work packages in a clear and concise Verb-
Noun format.
Mutual Exclusivity: Ensure that each work package is mutually exclusive
and collectively exhaustive.
Avoid Gantt Chart Elements: Keep WBS separate from the project
schedule or Gantt chart.
 Work Breakdown Structure (WBS)
Example:

Level 1: Project A
Level 2: Phase 1, Phase 2
Level 3: Deliverable 1.1, Deliverable 1.2, Deliverable 2.1, Deliverable 2.2
Level 4: Work Package 1.1.1, Work Package 1.1.2, Work Package 1.2.1, Work
Package 1.2.2, and so on.
 Organization Breakdown Structure (OBS)

The Organization Breakdown Structure (OBS) is a project management

tool that visually represents the hierarchical structure of an organization and
how project responsibilities are distributed among its units or individuals.

It complements the Work Breakdown Structure (WBS) by associating

project tasks with specific organizational entities.
 Organization Breakdown Structure (OBS)
Definition:
Overview: The OBS provides a framework for understanding the
organizational hierarchy and how individuals or departments are involved in
a project.
Relationship with WBS: It is closely tied to the Work Breakdown Structure
(WBS), associating project components with responsible organizational units.

Hierarchy Levels:
Top Level (Level 1): Represents the overall organization or project.
Subsequent Levels: Break down the organization into departments, teams,
or individuals involved in the project.
Lowest Level: Associates specific individuals or units with tasks from the
WBS.
 Organization Breakdown Structure (OBS)
Construction:
Top-Down Approach: Similar to the WBS, it is often constructed in a top-
down manner, aligning with the organizational structure.
Cross-Reference with WBS: Links each element of the OBS with
corresponding elements in the WBS.

Application Areas:
Responsibility Assignment: Clarifies who is responsible for specific project
tasks or work packages.
Communication: Improves communication by illustrating reporting
relationships and project responsibilities.
Resource Allocation: Aids in assigning resources to project tasks based on
organizational roles.
 Organization Breakdown Structure (OBS)
Coding System:
Numeric or Alphanumeric Codes: Similar to the WBS, elements in the OBS
may be assigned unique codes for identification.
Integration with WBS Codes: Codes may align with WBS codes for easy
cross-referencing.

Representation:
Matrix Form: Often represented in a matrix format, showing the
intersection of project tasks (from the WBS) and organizational units or
individuals.
Visual Clarity: Provides a clear visual representation of project roles and
responsibilities.
 Organization Breakdown Structure (OBS)
Benefits:

Role Clarity: Clearly defines the roles and responsibilities of individuals or

units within the organization.
Integration: Enhances the integration of project management processes
with the organizational structure.
Communication: Improves communication by illustrating the reporting
relationships and lines of authority.
Resource Management: Facilitates effective resource allocation based on
organizational roles.
 Organization Breakdown Structure (OBS)
Tips for Creating OBS:
Align with Organizational Structure: Reflect the existing organizational
hierarchy in the OBS.
Use Clear Terminology: Use terminology familiar to all stakeholders to
avoid confusion.
Maintain Consistency: Ensure consistency with the WBS to avoid
discrepancies in project management.

Example:
Level 1: Project A
Level 2: Department 1, Department 2
Level 3: Team 1.1, Team 1.2, Team 2.1, Team 2.2
Level 4: Individual 1.1.1, Individual 1.1.2, Individual 1.2.1, Individual 1.2.2, and so
on.
 Organization Breakdown Structure (OBS)
Integration with WBS:

Cross-Reference: Each element in the OBS is cross-referenced with

corresponding elements in the WBS.

Alignment: Ensures alignment between organizational responsibilities and

project tasks.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
OBS
The success of building a suitable organization structure lies in the proper
integration of the Work Breakdown Structure (WBS) and the Organization
Breakdown Structure (OBS).

These two structures are fundamental components of project management,

and their integration ensures alignment between project tasks, organizational
units, and individuals.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
OBS
Role Clarification:
Integration: Linking the WBS with the OBS allows for the clear assignment
of project tasks to specific organizational units or individuals.
Benefits: This integration ensures that everyone in the organization
understands their roles and responsibilities within the context of the project.

Responsibility Assignment:
Integration: Each element in the WBS is associated with the
corresponding organizational entity in the OBS.
Benefits: It facilitates the explicit assignment of responsibilities for project
tasks to specific departments, teams, or individuals, promoting accountability.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
Resource Allocation: OBS
Integration: The integration of WBS and OBS aids in aligning project tasks
with available resources within the organizational structure.
Benefits: This ensures that the right resources, whether individuals or
teams, are assigned to specific project components based on their expertise
and responsibilities.

Communication Enhancement:
Integration: Cross-referencing WBS and OBS elements enhances
communication by illustrating reporting relationships and lines of authority.
Benefits: Project stakeholders can easily understand who is responsible
for what, fostering effective communication and collaboration.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
Avoiding Duplication and Gaps: OBS
Integration: Ensures that each task in the WBS is associated with a
corresponding organizational entity in the OBS and vice versa.
Benefits: This helps in avoiding duplication of efforts or tasks falling
through the cracks, ensuring comprehensive coverage of project
responsibilities.

Project Control:
Integration: The linkage between WBS and OBS elements forms the basis
for project control and monitoring.
Benefits: Project managers can track progress, identify bottlenecks, and
address issues by referring to both structures, leading to more effective
project management.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
Resource Management: OBS
Integration: Provides a mechanism to allocate resources according to the
organizational structure and project needs.
Benefits: This ensures that resources are optimally utilized, preventing
overallocation or under-utilization, and supporting efficient project execution.

Alignment with Organizational Goals:

Integration: Ensures that project tasks align with the strategic goals and
structure of the organization.
Benefits: The integration helps in maintaining consistency between
project objectives and the broader organizational mission, ensuring that
project efforts contribute to overall success.
 The success of building a suitable organizational
structure lies in the proper integration of WBS and
Cross-Functional Collaboration: OBS
Integration: Promotes collaboration by clearly outlining which functional
units or teams are involved in specific project components.
Benefits: Cross-functional collaboration is essential for successful project
outcomes, and the integrated structure facilitates seamless cooperation.

Project Adaptability:
Integration: Allows for easier adjustments to changes in project scope,
tasks, or resources by reflecting these changes in both structures.
Benefits: The integrated approach enhances the project's adaptability to
dynamic conditions, contributing to overall project resilience.