Bhole_M5 - Project Management: A Managerial Approach...

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Project Management: A Managerial Approach Chapter 5 – Project Organization
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Overview Project “Fit” in Organizations Types of Organizations The Project Management Office (PMO) Project Teams
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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 kind, the pure project organization can maintain a permanent cadre of experts who develop skills in specific technologies
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Pure Project Organization Advantages of a pure project organization (cont.) A project team that has a strong and separate identity and
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This note was uploaded on 01/18/2012 for the course IND/MECH mec 713 taught by Professor Bhole during the Fall '11 term at Ryerson.

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Bhole_M5 - Project Management: A Managerial Approach...

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