Chapter 4 (self-study)

Chapter 4 (self-study) - Project Management A Managerial...

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Project Management A Managerial Approach Chapter 4 Project Organization
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Growth of Project Oriented Organizations There are many reasons for the rapid  growth, but most of them can be grouped in  four general areas: Speed and market responsiveness have  become absolute requirements for successful  competition The development of new products, processes,  or services regularly requires input from diverse  areas of specialized knowledge
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Growth of Project Oriented Organizations Four reasons for growth (cont.) Rapid expansion of technological possibilities in  almost every area of enterprise tends to  destabilize the structure of organizations A majority of senior managers rarely feel much  confidence in their understanding and control of  the activities in their areas
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Types of Project Organizations There are two fundamentally different ways  of organizing projects within the parent  organization The project as part of the Functional Organization The project as a free-standing part of the parent  organization A third type, called a Matrix Organization is a  hybrid of the two main types Each has advantages and disadvantages
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The Project as Part of the Functional Organization Advantages of using the functional elements of the  parent organization as the administrative home for a  project include: 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
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The Project as Part of the Functional Organization There are also disadvantages to housing the project  in a functional area: 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
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Pure Project Organization Advantages of a pure project organization: The project manager has full line 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 
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Chapter 4 (self-study) - Project Management A Managerial...

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