1. PROJECT ORGANIZATION Project team and project Structure Project team and project Structure Project Structure Types Project Structure Types 1.Project as part of Functional Organization 2.Pure Project (Projectized Structure) 3.Matrix Project Structure 4.Mixed type Structure

2. Projects in a Functional Organization Project is made part of a functional organization Project is made part of a functional organization Project may be undertaken by one or more of the functional departments. The project is provided a parent department or it may be given to all the departments and head of organization might supervise it. Project may be undertaken by one or more of the functional departments. The project is provided a parent department or it may be given to all the departments and head of organization might supervise it. Project is an additional responsibility for the team members which are otherwise busy in their routine departmental/functional activities Project is an additional responsibility for the team members which are otherwise busy in their routine departmental/functional activities

3. Vice Chancellor Faculty of Information Technology Faculty of Business & Commerce (Dean) Dept of Business Admin. (Chairman) Administration Administration Manager Clerks / Assistants Teaching Staff Professors Associate Professors Assistant Professors Lecturers Dept of Commerce Faculty of Pure Sciences Faculty of Agriculture Admin. Dept. General Registration Examination Planning & Development ….. N

4. Project: Workshop on Project Management Techniques Project Manager: Chairman, Department of Business Admin. Project Manager: Chairman, Department of Business Admin. Assistant Project Manager: Associate Professor, Department of Business Admin. Assistant Project Manager: Associate Professor, Department of Business Admin. Member: Assistant Professor – 1 Member: Assistant Professor – 1 Member: Lecturers – 2 Member: Lecturers – 2 Member: Clerk – 1 Member: Clerk – 1 Total members in team = 06 Total members in team = 06

5. Vice Chancellor Faculty of Information Technology Faculty of Business & Commerce (Dean) Dept of Business Admin. (Chairman) Administration Administration Manager Clerks / Assistants Teaching Staff Professors Associate Professors Assistant Professors Lecturers Dept of Commerce Faculty of Pure Sciences Faculty of Agriculture Admin. Dept. General Registration Examination Planning & Development ….. N

6. Project: Establishment of Interdepartmental LAN Chairman, Computer Science Dept.- PM Chairman, Computer Science Dept.- PM Network Administrators = 2 Network Administrators = 2 Lecturers = 2 Lecturers = 2 Total Team Members = 5 Total Team Members = 5

7. Vice Chancellor Computer Science Dept. (Chairman) Administration Manager Clerks Network Adminis. Teaching Staff Professors Associate Professors Asst. Professors Lecturers Faculty of Business & Commerce (Dean) Dept of Business Admin. (Chairman) Dept of Commerce Dept. of Chemistry Languages Dept.Admin. Dept. Registrar Office Degree & Registration Unit -Network Administ. Office of Controller Examination Planning & Development ….. N

8. Advantages Maximum Staff Flexibility Maximum Staff Flexibility Services of every individual always availableServices of every individual always available Experts can be temporarily assigned to projects and can return to their normal work when needed.Experts can be temporarily assigned to projects and can return to their normal work when needed. Individuals can join & leave one or more projects at the same time. Individuals can join & leave one or more projects at the same time. This helps in cost controlThis helps in cost control Ensures maximum staff utilizationEnsures maximum staff utilization Technological Continuity (procedural, administrative, and policy continuity) Technological Continuity (procedural, administrative, and policy continuity)

9. Disadvantages Client is/may not be the focus Client is/may not be the focus Functional Dept(s) have their own work to doFunctional Dept(s) have their own work to do Temporary Team (Lack of Coordinated effort)Temporary Team (Lack of Coordinated effort) Sub-optimization of project (issues which fall inside the expertise of a functional area may be resolved well and others will be left ignored or suboptimized.Sub-optimization of project (issues which fall inside the expertise of a functional area may be resolved well and others will be left ignored or suboptimized. No holistic approach due to reason above.No holistic approach due to reason above. Lack of motivation for team membersLack of motivation for team members Responsibility is not given usually to a single individual Responsibility is not given usually to a single individual

10. Projects in a Projectized Organization Project is separate from its parent organization. Projects are standalone projects. Project is separate from its parent organization. Projects are standalone projects. Each project has a full complement of functions needed for its operation, though some members may serve on two or more projects. Each project has a full complement of functions needed for its operation, though some members may serve on two or more projects. Own administration, own permanent staff working exclusively for the project(s). Own administration, own permanent staff working exclusively for the project(s). Tied to the parent firm through monitoring system and periodic progress reports. Tied to the parent firm through monitoring system and periodic progress reports.

11. President Project DcX team Project Beta team Project Red team Project Grow team Project Save team Administrative Support

12. Advantages Project Manager – Full Authority Project Manager – Full Authority Absence of Bureaucracy Absence of Bureaucracy Faster CommunicationFaster Communication Fast Decision MakingFast Decision Making Unity of commandUnity of command Permanent Team of Experts Permanent Team of Experts Skills are developed according to org./project orientationSkills are developed according to org./project orientation Motivation is maximumMotivation is maximum Separate IdentitySeparate Identity Holistic ApproachHolistic Approach  Response to Client Needs is Fast  Team is serious about its progress

13. Disadvantages Duplication – highly costly structure Duplication – highly costly structure Over Stocking / Over Staffing (Material/staff may be hired/purchased when they are available rather than when they are needed) Over Stocking / Over Staffing (Material/staff may be hired/purchased when they are available rather than when they are needed) Inconsistency with the parent firm regarding rules/regulations, policies. Inconsistency with the parent firm regarding rules/regulations, policies. Projectitis Projectitis We – They ApproachWe – They Approach Life after the projectLife after the project

14. Projects in a Matrixed Organization It is pure project organization imposed on functional organization It is pure project organization imposed on functional organization Contains the advantages of both previous types Contains the advantages of both previous types It is common organization structure for External Projects. (Contractors use this type) It is common organization structure for External Projects. (Contractors use this type) The functional departments are typically created to provide relevant expertise in form of individuals for projects. The functional departments are typically created to provide relevant expertise in form of individuals for projects.

15. Types of Matrix Organization Structure Types Strong Matrix Weak Matrix Balanced Matrix

16. President Program M. Manufac.MarketingFinance/ITR&DHRD PM 1 31 ½ ½ 21/2 PM 2 14 ¼ 4 1/4 PM 3 0½ 3 ½ 2 Project 1: New Product Development Project 2: Product Test Marketing Project 3: Computerization of all departments Internal Projects taken by a Consumer Goods Company

17. CEO Program M. Director Casting Director Marketing Director Develop. Director R&D Director Consult. PM 1 21 1/2 3 1 0 PM 2 01 0 4 0 PM 3 00 0 1 3 External Projects taken by Simax Enterprises (Contractor for Advertising, Marketing Research and Consultancy) Project 1: Development of an advertisement for an Electronic product Project 2: Polling of Consumer Opinion for a new product Project 3: Consultancy provision for a new business establishment.

18. Advantages Client/Project is the main focus (due to inherent characteristics of pure project organization). Client/Project is the main focus (due to inherent characteristics of pure project organization). Access to anyone working in any functional area. Access to anyone working in any functional area. Technological continuity (consistency with the parent firm’s rules, regulations, policies) Technological continuity (consistency with the parent firm’s rules, regulations, policies) With more than one projects going on, this is the best structure. (as usually made by the contractor) With more than one projects going on, this is the best structure. (as usually made by the contractor) Highly Efficient, as one person might be involved in more than one projects. Highly Efficient, as one person might be involved in more than one projects. Holistic approach Holistic approach

19. Disadvantages Conflicts between PM and FM regarding: Conflicts between PM and FM regarding: project accountability. project accountability. Resource acquisitionResource acquisition Personnel selection/salariesPersonnel selection/salaries Technologies used on the projectTechnologies used on the project Budgets, schedules, audits etc.Budgets, schedules, audits etc. Conflicts between various PMs about: Conflicts between various PMs about: resource distributionresource distribution personnel shiftingpersonnel shifting Strong matrices might have projectitis Strong matrices might have projectitis Dual chain of command for team members Dual chain of command for team members

20. Composite Organizational Structures CEO President V.P. Purchase V.P. Production V.P. Mktg./Sales V.P. Finance V.P. HRD V.P. Project Mgt. Project A Mktg. = 2 Manufac.= 2 R & D = 1 Finance = 1 HRD = 1 Project B Mktg = 3 Mnf. = 1 R & D = 2 Fin. = 1 HRD = 1

21. Virtual Projects Virtual projects are where the project team crosses time, space, organizational, and cultural boundaries. Virtual projects are where the project team crosses time, space, organizational, and cultural boundaries. Project work is facilitated through internet and communication technologies. Project work is facilitated through internet and communication technologies. May be used for software projects and the like. May be used for software projects and the like.

22. Selecting a Project Form If organization is not project based, and expertise is already available, then functional organization form is preferred. If organization is not project based, and expertise is already available, then functional organization form is preferred. If the organization engages in a large number of similar projects, the projectized form of organization is preferred. The same form would generally be used for one-time, highly specific, unique tasks that require careful control and are not appropriate for a single functional area – the development of a new product line, for instance. If the organization engages in a large number of similar projects, the projectized form of organization is preferred. The same form would generally be used for one-time, highly specific, unique tasks that require careful control and are not appropriate for a single functional area – the development of a new product line, for instance. When the project requires the integration of inputs from several functional areas and involves reasonably sophisticated technology, but does not require all the technical specialists to work for the project on a full-time basis, the matrix organization is the only satisfactory solution. This is particularly true when several such projects must share technical experts. When the project requires the integration of inputs from several functional areas and involves reasonably sophisticated technology, but does not require all the technical specialists to work for the project on a full-time basis, the matrix organization is the only satisfactory solution. This is particularly true when several such projects must share technical experts.

23. Steps in Selecting Project Structure Define the project with statement of the objective(s) Define the project with statement of the objective(s) Determine key tasks associated with each objective (e.g. WBS) and locate the units in the parent organization that serve as functional “homes” for these types of tasks. Determine key tasks associated with each objective (e.g. WBS) and locate the units in the parent organization that serve as functional “homes” for these types of tasks. Arrange the key tasks by sequence and decompose them into work packages (WBS) Arrange the key tasks by sequence and decompose them into work packages (WBS) Determine which organizational units are required to carry out the work packages and which units will work particularly close with which others. Determine which organizational units are required to carry out the work packages and which units will work particularly close with which others. List any special characteristics or assumptions associated with project – i.e. level of technology needed, probable length and size of the project, any potential problems with the individuals who may be assigned to the work, possible political problems etc. List any special characteristics or assumptions associated with project – i.e. level of technology needed, probable length and size of the project, any potential problems with the individuals who may be assigned to the work, possible political problems etc. In light of the above, select a type of structure In light of the above, select a type of structure

24. The Project Management Office (PMO) The Project Management Office (PMO) The Project Team The Project Team