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Project Organizations
19/02/2016
Project Organization
A project organization is a structure that facilitates the
coordination and implementation of project activities.
Its main reason 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.
Each project has its unique characteristics and the
design of an organizational structure.
A project structure can take on various forms with
each form having its own advantages and
disadvantages.
organization
The project as a free-standing part of the parent
organization
A third type, called a Matrix Organization is a
Functional Organization
Afunctional organizationis a common type oforganizational
structure in which theorganizationis divided into smaller
groups based on specializedfunctionalareas, such as IT,
finance, or marketing.
President/ CEO
VP
Finance
VP
Marketing
VP
Manufacturing
New
Layout
Robot Line
VP
Engineering
projects
Specialists in the division can be grouped to share
knowledge and experience
The functional division also serves as a base of
technological continuity when individuals choose to leave
the project
The functional division contains the normal path of
advancement for individuals whose expertise is in the
functional area
in a functional area:
The client is not the focus of activity and concern
The functional division tends to be oriented toward the
The Matrix
Organization
Rather than being a stand alone organization, like the
Disadvantages of Matrix
Organization
The balance of power between the project and
Mixed Organizational
Systems
Divisionalization is a means of dividing a large
flexibility
The firm is able to meet special problems by
appropriate adaptation of its organizational
structure
Disadvantages include:
Dissimilar groupings within the same accountability
center tend to encourage overlap, duplication, and
friction because of incompatibility of interests
Conditions still exist that result in conflict between
functional and project managers
Choosing an Organizational
Form
Selecting the organizational interface between
Choosing an Organizational
Form
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
Choosing an Organizational
Form
Criteria for the selection of a project
organization (contd):
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
6. In light of items 1-5, and with full
recognition of the pros and cons associated
with each structural form, choose a
success
the project
Interpersonal Conflict
The focus of conflict can often be related to the
Interpersonal Conflict
Conflict and the Project Manager
Most of the conflict on project teams is the result
managers
On occasion, compromise appears to be helpful,
Questions
?