Engr. Muhammad Niqash

Presentation

The traditional management structure has survived for more than 2 centuries. However, recent business developments, such as rapid change in technology and increased stake holders demands , have created strains on the existing organizational forms.

Project Organizations

It refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met.

The relationships among these positions are illustrated graphically in an organizational chart ,The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses .

Organizational structure

An organizational chart : is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.It usually shows the managers and sub-workers who make up an organization.It shows the relationships between the the organization's staff members.

There are several limitations with organizational charts:It only shows 'formal relationships' and tells nothing of the pattern of human (social) relationships which develop. It shows nothing about the managerial style adopted e.g. autocratic or democraticIt very quickly becomes out-of-date, especially in large organizations which change their staff regularly.

Limitations of an organizational chart

Organizational charts provide managers with specific departmental information that can then be used as a baseline for planning, budgeting and workforce modeling. Charts can be linked directly to spreadsheets or budgeting tools for interactive what-if analysis, making planning and decision making easier. Organizational charts are ideal for sharing the organization's strategic vision, as well as defining responsibilities, dependencies and relationships. Allow you to organize your team with clear responsibilities, titles and lines of authority

The Benefits of Organizational Charts

Unity of Command :Each individual participating in the

operation reports to only one supervisor. It eliminates the potential for individuals to receive conflicting orders from a variety of supervisors.Increasing accountability.Preventing freelancing.improving the flow of information, helping with the coordination of operational efforts, and enhancing operational safety.

Unity of Command

Span of Management:Span of management (sometimes called

span of control) refers to the number of people one supervisor should be in charge of.

Chain of Command : The chain of command is best known in

the military, where you must have approval from your supervisor for each decision you make!

Till the recent past the companies were surviving with only one or two product lines. The classical management organization was satisfactory for control, and conflicts were minimal.However, with the passing time, companies found that survival depended on multiple product line (i.e., diversification) and vigorous integration of technology into the existing organization.

Types of Project Organizations

By Function: Arranging the business according to

what each section or department does

By Product or Activity: Organising according to the different

products that are made

By Area: Geographical or regional structure

Ways to Structure a Business

By Customer: Where different customer groups

have different needs

By Process: Where products have to go through

stages as they are made

Managers began searching for more innovative organizational forms that would address the issues of control, conflict resolution etc.

Following different organizational structures were developed

Traditional (classical) Organization Line-Staff Organization (Project Coordinator) Pure Project (Projectized) Organization Matrix Organization

Strong, Weak, Or Balanced Matrix

Types of Project Organizations

Traditional Organizations

Division

DepartmentSection

Traditional Management Structure

Functional Responsibility

Advantages of traditional (Classical) Organizations

Easier Budgeting and Cost ControlBetter Technical Control (specialists can be

grouped together to share knowledge)Flexibility in the use of man powerBroad man power base to work withCommunication channels are vertical and well

establishedGood control over the personnel

Traditional Organizations

Disadvantages of traditional (Classical) Organizations

No one individual is directly responsible for the whole project

Coordination becomes complex, and additional lead time is required for approval

Decisions normally favors the strongest functional groups

No customer focal pointResponse to customer needs is slowIdeas tend to be functionally oriented with little regard

for on going projects

Traditional Organizations

In many ways this organizational form is not distinguishable from matrix organization, but this is typically used for small, short run projects where the formation of full fledge matrix system is not justified.In this, the organization sets up what appears to be a standard form of functional organization, but it adds a staff office to administer all projects.

Staff Organization

Staff Organization

Staff Organization

The pure project organization develops a division within a division. As long as there exists a continuous flow of projects, work is stable and conflicts are at minimum.The major advantage of this organizational flow is that one individual, the program manager, maintains complete line authority over the entire project.Not only he assigns work, but also conducts merit reviews.

Pure Project (Projectized) Organization

Pure Project (Projectized) Organization

Advantages Provides line authority over the project Participants work directly for the project manager Strong communication channels Very rapid reaction time Focal point develops for out of company customer Flexibility in determining time, cost, and performance

trade offs. Upper level management enjoys more free time for

executive decisions

Pure Project (Projectized) Organization

Disadvantages Tendency to retain personnel on a project long after they are neededControl of functional specialists requires top level coordinationLack of opportunities for technical interchange between projectsLack of career continuity and opportunities for project personnel

Pure Project (Projectized) Organization

Like the pure project, the matrix project is not separated from the parent organization. The matrix organizational form is an attempt to combine the advantages of the pure functional structure and the product organizational structure.This form is ideally suited for companies, such as construction, that are “project driven”

Matrix Organization

Matrix Organization

Functional R

esponsibility

Project Responsibility

Advantages:

The project is the point of emphasis Because the project is overlaid on the functional divisions, the project

has reasonable access to the reservoir of technology in all areas There is less anxiety about what happens when the project is

completed Response to client’s needs is as rapid as in the pure project

organization Matrix management gives the project access to representatives from

the administrative units of the parent firm The matrix organization allows a better company-wide balance of

resources to achieve goals There is a great deal of flexibility in precisely how the project is

organized within the matrix

Disadvantages :

The balance of power between the project and functional areas is very delicate

The movement of resources from project to project may foster political infighting

Problems associated with shutting down projects can be as severe as in a pure project organization

The division of authority and responsibility in a matrix organization is complex, and uncomfortable for the project manager.

Matrix management violates the management principle of unity of command. Project workers have at least two bosses, their functional heads and the project manager

Matrix Organization

Criteria for the selection of a project organization:1. Define the project with a statement of the objective(s)

that identifies the major outcomes desired

2. Determine the key tasks associated with each objective and locate the units in the parent organization that serve as functional “homes” for these types of tasks

3. Arrange the key tasks by sequence and decompose them into work packages

Choosing an Organizational Form

4. Determine which organizational units are required to carry out the work packages and which units will work particularly closely with which others

5. List any special characteristics or assumptions associated with the project

To staff a project, the project manager works from a forecast of personnel needs over the life cycle of the project

A work breakdown structure (WBS) is prepared to determine the exact nature of the tasks required to complete the project

Skills requirements for these tasks are assessed and like

skills are aggregated to determine work force needs From this base, the functional departments are

contacted to locate individuals who can meet these needs

Certain tasks may be subcontracted

The Project Team

There are some people who are more critical to the project’s success than others and should report directly to the project manager or the project manager’s deputy:

Senior project team members who will be having a long-term relationship with the project

Those with whom the project manager requires continuous or close communication

Those with rare skills necessary to project success

Inspiring Project Team Members:The project manager often has little control over the economic rewards and promotions of project team members, but this does not mean he/she cannot facilitate motivation of team

How are technical employees motivated? Recognition Achievement The work itself Responsibility Advancement Learning new skills

Human Factors and the Project Team