PROJECT MANAGEMENT PROJECT MANAGEMENT ORGANIZATION ORGANIZATION
Dec 13, 2014
PROJECT PROJECT MANAGEMENT MANAGEMENT ORGANIZATIONORGANIZATION
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
Introduction
Project Management Organization is divided into 3 types such as:1.Functional
Organization
2.Project Organization
3.Matrix Organization
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
Functional Organization
President
VP Finance VP Marketing VP Manufacturing
VP Engineering
Project New Model Proton SURIE
New Layout – Robot Line
Features of Functional Organization1. 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
Merits of Functional Organization1. 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 facilitates better control and supervision
Demerits of Functional Organization1. 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. Lack of 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 order is expensive for a concern.
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
Project Organization
Project Organization
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t A
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t B
F in an ce M a nu fa c tu ring
V ice P re s id en t P ro je c t C
P re sid e n t
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
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
Matrix Organization
Matrix Organization
PM1
PM2
PM3
Manufacturing Program Manager R&D Marketing
President
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
Merits of Matrix Organization
Resource CoordinationThe 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.
SpecializationPlacing 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
Merits of Matrix Organization
Breadth of SkillWhen 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.
CommunicationSince 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
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
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.
Overview of project organization management
Chapter 4 Project Organization
23
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-hoc basis as opposed to organizations that have only dedicated full-time positions.
Project management reduces risk and increases the chance of success
The triple constraint
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.
The Key Features for project management organization
Chapter 4 Project Organization
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Leadership People management Effective communication (verbal and written) Influencing Negotiation Conflict management Planning Contract management Estimating Problem solving Creative thinking Time management
The Barriers for project management organization
Chapter 4 Project Organization
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Poor communication Disagreement Misunderstandings Bad weather Union strikes Personality conflicts Poor management
It will help prevent the following:
Chapter 4 Project Organization
27
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
References
Wikipedia-the free encyclopedia Smallbussiness.Chron.com www.pmhut.com www.mypmhome.com