The document outlines the project organizational structure, detailing its objectives, types, and the advantages and disadvantages of functional and projectized organizations. It identifies four reasons for the rapid growth of project-oriented organizations, emphasizing the need for speed, specialized knowledge, technological responsiveness, and accountability. Additionally, it discusses the matrix approach in project management and the role of the Project Management Office (PMO).
The document outlines the project organizational structure, detailing its objectives, types, and the advantages and disadvantages of functional and projectized organizations. It identifies four reasons for the rapid growth of project-oriented organizations, emphasizing the need for speed, specialized knowledge, technological responsiveness, and accountability. Additionally, it discusses the matrix approach in project management and the role of the Project Management Office (PMO).
The document outlines the project organizational structure, detailing its objectives, types, and the advantages and disadvantages of functional and projectized organizations. It identifies four reasons for the rapid growth of project-oriented organizations, emphasizing the need for speed, specialized knowledge, technological responsiveness, and accountability. Additionally, it discusses the matrix approach in project management and the role of the Project Management Office (PMO).
The document outlines the project organizational structure, detailing its objectives, types, and the advantages and disadvantages of functional and projectized organizations. It identifies four reasons for the rapid growth of project-oriented organizations, emphasizing the need for speed, specialized knowledge, technological responsiveness, and accountability. Additionally, it discusses the matrix approach in project management and the role of the Project Management Office (PMO).
● Identifying four (4) reasons of rapid growth of project-oriented organizations
● Identifying the three (3) types of project organizations ● Understand the advantages and disadvantages of functional and pure project organization ● Understanding, applying, and analyzing matrix approach in project management ● Understanding the purposes, tasks, and forms of the Project Management Office (PMO)
INTRODUCTION:
A project organizational structure defines the roles, responsibilities, and reporting lines within a project team. It clarifies who does what and who they report to, ensuring efficient execution, clear communication, and accountability. Different types exist (functional, projectized, and matrix), each with varying levels of project manager authority
Successful firms grow and specialize, organizing themselves to meet their needs. This specialization can be based on various factors like function, product, location, process, customer, etc. A newer organizational structure, project organization (or enterprise project management), applies project management principles across the company, often seen in software development. Many companies now manage change through projects, even while maintaining their traditional operational structures. FOUR (4) REASONS FOR RAPID GROWTH OF PROJECT-ORIENTED ORGANIZATIONS
1. Speed and market responsiveness have become absolute requirements for successful competition. Quick adaptation and first-to-market advantage are crucial for competition. Tailoring products for individual clients is common in many industries 2. Developing new products, processes, or services often requires inputs from diverse areas of specialized knowledge. Teams of specialists are created for specific purposes and disbanded once their tasks are completed 3. Rapid technological advancements destabilize traditional organizational structures, requiring system-wide responsiveness that project organization can provide 4. Many senior managers lack confidence in understanding and controlling nonroutine activities. Transforming these activities into projects ensures accountability, proper planning, integration, and routine progress reporting THREE (3)TYPES OF PROJECT ORGANIZATIONS
1. PROJECTS IN A FUNCTIONAL ORGANIZATION
In a functional organization, projects are managed within the existing functional hierarchy. Each department (e.g., marketing, finance, engineering) handles its own projects, and the project manager has limited authority. The functional manager oversees the project and allocates resources. This structure works well for projects that require specialized knowledge and skills from a specific department
ADVANTAGES
● Maximum flexibility in the use of staff
● Individual experts can be utilized by many different 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
DISADVANTAGES
● The client is not the focus of activity and concern
● The functional division tends to be oriented toward the activities particular to its function ● Occasionally, no individual is given full responsibility for the project ● There are often several layers of management between the project and the client ● There is a tendency to suboptimize the project 2. PROJECTS IN A PROJECTIZED ORGANIZATION (PURE PROJECT ORGANIZATION)
In a projectized organization, the entire company is organized around projects. The project manager has full authority over the project and its resources, including team members who report directly to them. This structure allows for greater flexibility and responsiveness to project needs. It is ideal for organizations that handle multiple, complex projects simultaneously
ADVANTAGES
● The project manager has full line of authority over the project ● All members of the project work force are directly responsible to the project manager ● When the project is removed from the functional division, the lines of communication are shortened ● When there are several successive projects of a similar kind, the pure project organization can maintain a permanent cadre of experts who develop skills in specific technologies ● A project team that has a strong and separate identity and develops a high level of commitment from its members ● Because the authority is centralized, the ability to make a swift decision is enhanced ● Unity of command exists ● Pure project organizations are structurally simple and flexible, which makes them relatively easy to understand and implement ● The organizational structure tends to support a holistic approach to the project
DISADVANTAGES
● Each project tends to be fully staffed which can lead to a duplication of effort in every area from clerical staff to technological support ● There is need to ensure access to technological knowledge and skills that results in an attempt by project managers to stockpile equipment and technical assistance ● The functional division is a repository of technical lore, but it is not readily accessible to team members of the pure project team ● Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out ● In a pure project organization, the project takes on a life of its own ● There tends to be concern among team members about “life after the project ends”
