Categories: Project Management

Project Organizations

Project Organizations

SK SAXENA PMP

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This is in reference to the Blog-‘Organization   PM 6  SK – 11 dated October 15, 2016.

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.

Functional organization – It is suitable for ongoing operations in project management is done for small nature of upgradation to withstand the market pressures and pressures of techno-legal nature.

Functional organization is a type of organizational structure that uses the principle of specialization based on function or role.

It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals.  (source- Wikipedia)

Line staff reports to immediate higher staff. The staff role is static. They are skilled. No diversification in job

Functional heads are provided responsibility at top for respective units, which work independently with unity of command.  Heads share information and reporting. The authority responsibility and accountability are to be maintained. In such organization the project Manager’s job is done by Business unit head / Functional Manager, or outside PM with the support staff from the business unit. The staff works in Silo, not having interaction from side or other business units.

The PM works as coordinator or expediter

Project Expediter works as staff assistant and communication coordinator and cannot make decision.

Project Coordinator has some power and some authority and can report to higher level

At each level there may be work breakdown structure as shown in work break down structure chart

Functional Organization Tips

Widely used organizational structure

The specialists control the operation

Line of command is from top to bottom

Unit head is responsible for the job

Functions are well defined and as such the workers are well experienced

Promotional path is visible

Project manager has the role of expeditor or coordinator

Project manager is dependent on the Functional head for required supports

Matrix organizations

Weak matrix

In weak matrix the project manager reports to functional manger. A project manager with only limited authority is assigned to oversee the cross- functional aspects of the project. The functional managers maintain control over their resources and project areas

Almost all controls required for project are with FM. In this type of organization, the flow of information is up down and from sides also for better communication. Project manager is needed for functional upgradation and works under FM. PM works part time and looks after project and functional work and may be titled as Project Co-Ordinator or Project Expediter. The staff for the project is arranged from different functional units.

CEO oversees organization and as per need takes up a project. Th projects are of small nature to update functional requirements.

Different functional units work under CEO and have other staff under them for various needs. The staff report to their unit heads as well as may have liaison with other unit heads and staff.

At each level there may be work breakdown structure as shown in work break down structure chart

Balanced matrix

In balance matrix the project manager and functional manager share the power and authority, but project manager has no full authority and power: A project manager is assigned to oversee the project. This is the most difficult system to maintain as the sharing of power, authority, responsibility and accountability is difficult to maintain.

Almost all controls required for project are shared between PM and FM. Utilization of power may be difficult.

In this type of organization, the flow of information is up down and from sides also for faster communication.

Project manager is appointed full time and for the project.

The staff for the project is arranged from different functional units.

The control, power and authority are more than that of functional organization or weak matrix organization.

At each level there may be work breakdown structure as shown in work break down structure char

Strong matrix organization

A project manager is primarily responsible for the project. Functional managers provide necessary support, technical expertise and assign resources as needed. Almost all controls are with project manager

CEO or any other top-level officer oversees organization, as per need taken up a project. PM is dedicated to it. All units under him provide feedback and report to CEO

Different functional units working under CEO and have other staff under them for various needs

The staff report to their unit heads as wells have liaison with other unit heads and staff.

Almost all controls required for project are with PM.

In this type of organization, the flow of information is up down and from sides also for faster communication

At each level there may be work breakdown structure as shown in work break down structure chart

Projectized organization

In this type of the organization the project manager has full authority, and control over the projects.

Small nature of projects is taken up in the organization by having a part time project manager, but when the magnitude of work is much, and complexity is there in project operations, projectized organization are created within the department for specific duration with dedicated staff and resources. The aim of project manager is to align the organization requirements with the project development process an and close the project after the necessary outcome is achieved. After the project is over the staff go back to parent department or go to home.

The project manager has complete authority to assign work to the team, work with the budget, manage changes, and carry out all project management processes.

If there are more than one project, each project is assigned to one project manager independently. They may share with each other in the interest of organization on constraints or otherwise and are responsible for the project outcome.

Each project manager has dedicated department unit. The units have necessary staff, that work with unity of command, authority and accountability.

The teams are co-located and dedicated to project.

At each level there may be work breakdown structure as shown in work break down structure chart

A brief detail about the authority and facility available to project manager in various type of organization is tabled below:

Project Manager’s role is very important in above type of organizations, but not limited to as mentioned above. And by the application of necessary tools and techniques, skills, and knowledge he can manage the project output. Though in non-projectized organizations he may have little to somewhat power, but in projectized organizations he has full powers and he must use his, knowledge, and skills up to utmost extent. The project manager works from initiation of project to the closure of the project. Before initiation he must know about the organization as he must align the project to the organizational objectives.

Also, he must be aware of the situation beyond the end of the project as at this point the project is put to acceptance and use of the project manager. The project Manger must have a better understanding of organizations where he must work to give such output.

The description of the various type of project organizations given above is based on theoretical aspects. In real world, the project operations are not the same, but are based mostly on the above description.

In actual work environment the project manager is supported for the requirements laterally by all the key stakeholders and project organization becomes as based on mixed up organization.

Leadership contains certain elements of good management, but it requires that you inspire, that you build durable trust. For an organization to be not just good but to win, leadership means evoking participation larger than the job description, commitment deeper than any job contract’s wording.

                                     Stanley A. McChrystal

It’s about communication. It’s about honesty. It’s about treating people in the organization as deserving to know the facts. You don’t try to give them half the story. You don’t try to hide the story. You treat them as – as true equals, and you communicate, and you communicate and communicate.

Louis V. Gerstner

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SK Saxena PMP (PMI)

SK SAXENA PMP PM Consultant

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Tags: https://techconsults.inPMI Talent triangleProfessional & Social responsibilityProject ConstraintsProject ManagerProject Manager Leadership SkillsTasks of project ManagerTechConsultsThe role of Project Manager
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