2. Introduction
Many people and organizations today have a
new or renewed interest in project
management
In the past, project management primarily
focused on providing schedule and resource
data
Today’s project management involves much
more
4. Project Management Organization is
divided into 3 types such as:
1.Functional Organization
2.Project Organization
3.Matrix Organization
5. Functional Organization
It has been divided to put the specialists in the
top position throughout the enterprise
This is an organization in which we can define
as a system in which functional department
are created to deal with the problems of
business at various levels
Functional authority remains confined to
functional guidance to different departments
7. President
VP Finance VP Marketing VP
Manufacturing
VP
Engineering
Project New
Model Proton
SURIE
New Layout –
Robot Line
8. Features of Functional
Organization
1. The entire organizational activities are divided into
specific functions such as operations, finance,
marketing and personal relations.
2. Complex form of administrative organization compared
to the other two.
3. Three authorities exist- Line, staff and function.
4. Each functional area is put under the charge of
functional specialists and he has got the authority to
give all decisions regarding the function whenever the
function is performed throughout the enterprise.
5. Principle of unity of command does not apply to such
organization as it is present in line organization
9. Merits of Functional
Organization
1. Specialization- Better division of labor takes place
which results in specialization of function and it’s
consequent benefit.
2. Effective Control- Management control is simplified as
the mental functions are separated from manual
functions. Checks and balances keep the authority
within certain limits. Specialists may be asked to judge
the performance of various sections.
3. Efficiency- Greater efficiency is achieved because of
every function performing a limited number of
functions.
4. Economy- Specialization compiled with standardization
facilitates maximum production and economical costs.
5. Expansion- Expert knowledge of functional manager
10. Demerits of Functional
Organization
1. Confusion- The functional system is quite complicated
to put into operation, especially when it is carried out at
low levels. Therefore, co- ordination becomes difficult.
2. Lackof Coordination- Disciplinary control becomes
weak as a worker is commanded not by one person but
a large number of people. Thus, there is no unity of
command.
3. Difficulty in fixing responsibility- Because of multiple
authority, it is difficult to fix responsibility.
4. Conflicts- There may be conflicts among the
supervisory staff of equal ranks. They may not agree
on certain issues.
5. Costly- Maintenance of specialist’s staff of the highest
11. Project Organization
Project is separated from the rest of the parent
system
Becomes self contained unit
In pure project organization approach project
managers are usually very high in the
hierarchy chain
13. Project Organization
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t A
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t B
F in a n c e M a n u fa c tu rin g
V ic e P re s id e n t P ro je c t C
P re s id e n t
14. Features of Project
Organization
Project Initiation
The second step in project-based management is project
initiation. Special teams may be needed for certain projects.
Specific goals are identified and distributed to departments or team
members
Establish Timelines
Managers will need to keep projects on track to avoid cost
overruns and other resource-management issues. The start and
end dates are published along with milestones. Milestones help
keep the business on track as they move towards the end goal.
Performance Evaluations
During the course of the project, managing groups will need to
examine the individual or group's progress. Performance
evaluations of projects will help identify areas that need help and
areas that are exceeding expectations
15. Matrix Organization
Combination of functional and pure project
organizations
Matrix project is not separated from parent
organizations
Individuals come from respective functions
divisions and are assigned to the project full
time or part time
18. Matrix Organization
Cross-functional team members
Draw temporarily on technological expertise of
relevant functions
High technology areas – integrate functional
specialties
Iterations in adapting “over the wall” approach
Systems approach – integrity of product design
Close coordination and communication among
all parties
19. Merits of Matrix Organization
Resource Coordination
The matrix structure allows supervisors to focus on
their areas of expertise. Functional supervisors focus on
hiring, training and managing employees in their field, while
project supervisors can focus on achieving the goals of
their specific projects or products.
Specialization
Placing employees in functional areas allows them to
specialize in a particular field. Instead of being good at a
variety of tasks, specialized employees can excel at tasks
in their field of focus
20. Merits of Matrix Organization
Breadth of Skill
When isolated in a functional area, employees may
have more difficulty benefiting from the skills and
experiences of those in other areas. In a matrix structure,
employees have constant contact with members of other
functional areas via their membership in project teams.
Communication
Since employees have constant contact with members
of different functional areas, the matrix structure allows for
information and resources to travel more fluidly between
those functional areas. The collaboration between
functional areas allows a project team to better handle
complex challenges and objectives
21. Demerits of Matrix Organization
Psychological Stress
The matrix organization is dynamic in terms of both form and
function. The team members, team structure, work roles and work
role interfaces lack stability even within a project life cycle.
Conflict
A matrix organization does not exhibit clear lines of authority
or responsibility in that the boss-subordinate relationship may not
be clear. In addition, a cross-functional team member may receive
one direction from a functional manager and a different direction
from the cross-functional team manager
22. Demerits of Matrix Organization
Inefficiency
Multiple managers, conflicting policies and procedures, and
contradictory loyalties can lead to ineffective management. In
addition, infighting may occur between functional managers and
cross-functional team managers who are each forced to compete
for the time of the individual team members
Cost
Workers are frequently chosen to participate on cross-
functional teams because they possess a broad and diverse skill
set. However, in general, the wages earned by an individual
increase in relation to the skills he possesses. In addition, an
individual usually performs functions in support of both the matrix
organization and the functional organization, which can increase
overtime costs for the organization.
23. Overview of project organization
management
Chapter 4 Project Organization23
Project management is no small task.
Project management has a definite beginning and
end. It is not a continuous process.
Project management uses various tools to measure
accomplishments and track project tasks. These
include Work Breakdown Structures, Gantt charts
and PERT charts.
Projects frequently need resources on an ad-
ho c basis as opposed to organizations that have
only dedicated full-time positions.
Project management reduces risk and increases the
chance of success
24. Thetripleconstraint
1. Projects must be within cost.
2. Projects must be delivered on
time.
3. Projects must be within scope.
4. Projects must meet customer
quality requirements.
25. The Key Features for project
management organization
Chapter 4 Project Organization25
Leadership
People management
Effective communication (verbal and written)
Influencing
Negotiation
Conflict management
Planning
Contract management
Estimating
Problem solving
Creative thinking
Time management
26. The Barriers for project management
organization
Chapter 4 Project Organization26
Poor communication
Disagreement
Misunderstandings
Bad weather
Union strikes
Personality conflicts
Poor management
27. It will help prevent the following:
Chapter 4 Project Organization27
Projects finishing late, exceeding budget or not
meeting customer expectations.
Inconsistency between the processes and
procedures used by projects managers, leading to
some being favored more than others
Successful projects, despite a lack of planning,
achieved through high stress levels, goodwill and
significant amounts of overtime.
Project management seen as not adding value and
as a waste of time and money.
Unforeseen internal and/or external events
impacting the project
