PM 6 SK 11 October 15, 2018
Introduction, Work breakdown structure of functional unit,Span and Level Control, Design of Organization, Why project Management, Line organization, Line and Staff organization – are the titles discussed in this Blog
Business operations are carried out by various organizations to sustain their business. This is done by taking up new ventures or projects for developing new products and services. The project / service development depends on the need of organization and the type of organization. Project Manager is an important person responsible for the project execution. The organizational structure, the type of project needs varies for organizations and as such project manager must be aware about the types of organization in which to work for project development / management and execution. This blog provides first hand details of the various type of organizations.
“Organization isn’t about perfection; it’s about efficiency, reducing stress and clutter, saving time and money and improving your overall quality of life.”
Organizations are organized group of people with a purpose, such as an organization in private and public sector, to carry out business under rules and regulations decided by the operative laws of government of the country, in which the business is to be carried out. The synonyms given below further provide clarifications.
(company, firm, concern, operation, corporation, group, consortium syndicate, body, agency, federation, association, etcetera.)
The organization work for a purpose, and when the purpose needs modification, which can not be taken up in the existing operative stage of the organization, then based on technicality and complexity of need the organization generates a special unit for a fixed time to take up the project. The work force and the subject matter specialists are taken from within the organization or hired from outside as per requirement.
The creation of organizational structure revolves around the business need (Business needs are dynamic in nature as they depend on the changing economic, social, technical and legal environments; and so, the organizations are also dynamic) and some necessary general / special considerations. The organization structure (OS) is a typical hierarchical arrangement of line of authority, communication, rights and duties.
The OS reflects:How the workforce of the organization is grouped?How they are placed at various levels?How the authority is to be delegated?How is the span of control? How is the unity of command line of the organization?Who is responsible at various levels of organization?
The OS provide unity of command line from top to bottom. The horizontal span work force at different levels must also be aware of it.
In the below mentioned chart the levels and span are as below:
Levels- CEO, Business Units (BU), Units, Sub Units, Staff are the various levels in the organizational structures.
Span- BU1 has its span of control on Unit 1, Unit 2, Unit 3 and Unit 1 has its span of control on Sub Unit 1, Sub Unit 2, and Sub Unit 3.
The span is less at lower level and increases at upper level, from responsibility point of view.
Work breakdown structure of a functional unit
Another example of Span and Levels:
The Design of Organization
The size of organizations differs with respect to local small business, zonal, national or international business but the following points should be considered to design the organization structure effectively. These are general but important points to consider. Special considerations may be given to complex projects.
Several departments are involved in the achievement of organizational goal. A proper coordination among these department is required, by having efforts and guidance from their top level.
The structure must be in conformity to goals / objectives of the organization.
Every post created must be goal oriented.
The specialist persons should be assigned so that process outflows are streamlined
The roles of responsibility must be clearly defined. If organization head is to be supported by various other unit heads, and each unit head is further supported by sub units head and so on, then the responsibility must be defined at all such levels.
(Responsibility is responding ability of actions against the assigned tasks. It is the response toYour action to the assigned taskYour actions to assigned authority and controlsYour actions to people’s skill you use in task management.And so, onThe respond for both good or bad outcome is desirable.If you are responsible, it means your actions, your controls, your decisions, your commitments, your behavior in assigned task are reflected. You cannot delegate them.)
The units and sub units and further sub division, along with adequate support staff requirement, must be very rightly provided.
Overstaffing or understaffing provisions may damage the organization’s efficiency. Similarly, the quantum of work assignment may lower the organizational efficiency if not assigned properly and may lead to conflicting situations.
Unity of command is to be followed. Everyone should seek advice from and report to the boss. A subordinate should not put on works under two bosses
Unity of Command– The principle that no subordinate in an organization should report to more than one boss. (Boss- This word is used to refer to any higher-level employee in a company, including a supervisor, manager, director, or the CEO
The organizational structure must be understandable by all work force to the extent desired.
Cost, quality, and time overrun variations must be avoided by providing necessary monitoring and control measures at required levels, and timely feedback arrangement should be there with the help of well-balanced organizational communication system.
Efficiency and effectiveness of the organization required to achieve the goal must reflect in organizational structure design.
Top management should delegate authority at each level and avoid unnecessary direct involvement at other levels.
Why Project Management
Sometimes senior person or specialist of the organization are appointed to takes over the responsibility of project manager. Such person may not be fruitful unless he cashes the opportunity given with his will power and using both the IQ and the Emotional Intelligence. But it is not desirable to do so.
A professional should be appointed with wider work area knowledge of all the subjects, may be in little depth. Project Manager, if selected because of his knowledge, tools and techniques, skills and their application, and to the satisfaction of organization, may ultimately be responsible for success or failure of the project.
Project manager must use both art (the use of Emotional Intelligence) and science of management (the use of work-oriented IQ) to manage his work.
When moving towards understanding the project management one must have a real-world idea of what is project. Also, an experience of working on projects will enhance the understanding process of project management.
But why project management? Why it is required?
If you have the experience of projects in real life you might have come across the following shortcomings during or after the project operations stage:
Poor work quality and more rework
Too much pursuance on resource management.
Overtime and cost overrun
Financials irregularity and mis planning
Poor information system
Issues of health safety security and environment
Dissatisfaction of stakeholders
Poor risk and procurement and costing
The above problems can be avoided if
Project charter is there.
Roles and responsibilities are defined
Planning is done with the consent of stakeholders
Historical information and lesson learnt are taken in account in project planning and execution
PMO is in place to guide
EEF an OPA are being incorporated in project planning
Proper work breakdown structure and estimating procedures
Stakeholders are managed
Good communication and PMIS system
Earned value management
Professional project management along with following Code of Ethics and Professional Conduct.
Th project management incorporate some points as mentioned above and others for streamline project operations.
It is also noted that project managers posted on the project are specialist in or the other streams.
There is no need of a specialist for the project manager, instead a generalist having wider area experience but not much in depth. is a suitable person.
Lessons learnt on the previous projects must be well understood and utilized
The organizations that generally exists are as follows:
Line organization – As discussed in the functional structure chart
Line organizations are headed by a person responsible for achieving organizational objective such as President or CEO at level one of organization chart and may have different departments under him such as Production, Marketing, HR etcetera at level two. Each department may be spitted further vertically and horizontally as per the necessities involved in creation of organizational structure.
Each department has direct vertical relationship with the organization, not lateral unless permission granted by top authority.
Authority and accountability are decided at all levels.
An organization has its business goal or objective to achieve.
Authority travels downwards from top and accountability upwards from bottom along the chain of command.
The level unit head has control over unit’s performance
At each level there may be work breakdown structure as shown in work break down structure chart
The business unit the line staff is posted one below the other as per column B in unity of command, authority flow is from top to bottom. Responsibility, authority and accountability is clearly defined
Line and staff organization – As discussed in functional structure In line and staff organization structure chart.
The business unit line staff as column B is provided with support staff as per column C. The support staff is provided for advisory roles only. The unity of command, authority flow is from top to bottom. Responsibility, authority and accountability is clearly defined
Organizations have a workplace environment, which helps the work force to interact and work in it.
This environment includes:
A good building, to house the work place. A clean, pollution free ail land and water amenities which may include but not limited to as given below:
A designed work place by a good Architect, and incorporation of office required structure design. Both exterior design and the interior design of the workplace matters.
Agood furniture design in perfectly designed interiors.
Air conditioning system,
Electricity system supported by electricity generation sets, Solar electricity systems.
Eco friendly green building for workplace are now coming up and must be used.
Water supply system supported by instant digital equipment for water quality checks.
In built security system to provide safety from outside and inside threats. May include Security personals, safety equipment.
Sanitation- a much needed control on waste management and its disposal along with having necessary checks on effluents with digital equipment and observations.
And many more.
The facility laden workplace shall boost the workforce behavior, their efficiency and results in boost to production.
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