PROJECT

ORGANIZATION
Project Organization is a
social entity that has a
collective goal and is linked
to an external environment.

The purpose of an organization to coordinate the efforts of

many to accomplish goals
Purpose of Organizing
- Divides work to be done into specific jobs and departments
- Assigns tasks and responsibilities associated with individual jobs
- Coordinates diverse organizational tasks
- Clusters jobs into units
- Establishes relationships among individuals, groups, and
departments
- Establishes formal lines of authority
- Allocates and deploys organizational resources
The project organization defines the human infrastructure of the
project. This project is designed to defined the project organization
chart, the roles and the relationships of the project team. The
organizational structure clearly identifies roles and responsibilities of
each position, augmenting the existing role definitions where
necessary to cover all of the responsibilities. The project organization
technique that is used in this step provides a standard set of roles and
responsibilities which can be customized of a particular project. This
should cover all personnel resources required, both full and part time.
Authority
Is the right to make decisions, issue orders and allocate
resources to achieve desired outcomes. This power is granted to
individuals (possibly by the position) so that they can make full
decisions.
Reliability
Is the degree to which the project team member can be
depended on to ensure the success of the project with a sound
and consistent effort.
Responsibility
This is an obligation incurred by individuals in their roles in the
formal organization effectively perform assignments or to work
on the success of the project with or without guidance or
authorization.
Accountability
The extend to which an individual or project team is answerable
to the project stakeholders and provides visible evidence of
action.
Accountability = Authority + Responsibility
Unity of Command
The concept that a person should have one boss and should
report only to that person

Hierarchy
Establishes the “tallness” or “flatness” of an organizational chart
Although hierarchy can facilitate the coordination of different
departments, organizations clearly should not have more
hierarchical levels than are necessary
Chain of Command
The continuous line of authority that extends from upper
levels of an organization to the lowest levels of the organization
and clarifies who reports to who.
Building an organizational structure engages managers in two
activities: Job Specialization (dividing tasks into jobs) and
Departmentalization (grouping jobs into units)
Job Specialization – a process that occurs when employees
gain knowledge, education and experience in a specific area
of expertise. The importance of job specialization in the
modern-day workforce is that it helps to fulfill the need for
skilled workers.
Departmentalization – is an organizational structure that
separates people into groups or departments, based on a
particular set of criteria. These departments have their own
leadership and work together to complete tasks. With large
or complicated projects, multiple departments may work
together.
Traditional groupings of jobs result in different
organizational structures, and these impact project
management because of possible conflicts in authority,
responsibility and accountability.
Types of Management
Management may be divided into at least two different
types: Functional Management and Project Management

Functional Management –
• sometimes called Discipline Management
• involves the coordination of repeated work of a similar
nature by the same people.
Types of Management

Project Management –
• involves the coordination of one time work by a team of
people who often have never previously worked
together.
A fundamental principle of project management is to organize
the project around the work to be accomplished. The work
environment focuses on what must be performed, when It
must be accomplished, and how much it will cost.
Distinguishing between Project and Discipline Management
Project Management Discipline Management
is concerned with is concerned with
What must be done How it will be done
When it must be done Who will do it
How much it will cost How well it will be done
Coordinating overall needs Coordinating specific needs
Multi-discipline focus Single-discipline focus
Reliance on others Providing technical expertise
Project Quality Technical Quality
Administrative Viewpoint Technical Viewpoint
A generalist’s approach A specialist’s approach
Functions of Management
Management is often summarized into six basic functions:
• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Controlling
1. Planning

- Is the formulation of a course of action to guide a project to

completion. It starts at the beginning of a project, with the
scope of work, and continues through out the life of a project.

- The process of looking forward. It is basically deciding in the

present about the future objectives
2. Organizing

- Is the arrangement of resources in a systematic manner to

fit the project plan. A project must be organized around the
work to be performed.

- associated with effective utilization of the resources like

men, machines, materials and money for achieving the
objectives of the organization.
3. Staffing
- Is the selection of individuals who have the expertise to
produce the work. The persons that are assigned to the
project team influence every part of a project.

- a constant and fundamental step in the management

process. After determining the strategies, objectives,
programs, policies and procedures, managers select a
group of people by evaluating their knowledge and
skills to work on that project.
4. Directing

- Is the guidance of the work required to complete a project.

The people on the project staff that provide diverse
technical expertise must be developed into an effective
team.

- a process in which managers guide, instruct and oversee

the performance of the employees to achieve
predetermined goals.
5. Coordinating

- This function is called coordinating function. It ensures the

unity of action among workgroups, individuals and
departments. To achieve the organizational goal, all
departments must operate in an integrated manner.
6. Controlling

- Is the establishment of a system to measure, report, and

forecast deviations in the project scope, budget and
schedule. The purpose of project control is to determine
and predict deviations in a project so corrective actions can
be taken.
Project Teams
Project team is consists of two or more people working
together to accomplish a common goal. It must be assembled
to accomplished the work necessary to complete engineering
and construction projects. Team members are vital to the
success of the project.

Project teams are made up of all participants in the project,

including in-house personnel and outside consultants.
Teamwork starts with the sponsor of the project who defines
goals, objectives, needs and priorities. For successful projects,
teamwork starts with the team’s formation at the beginning of
the project and continues throughout the life of a project.
Working with
MULTIPLE TEAMS
Working with MULTIPLE TEAMS
Members of the design team are selected based on the
specific expertise needed for a particular project. The team is
composed of individuals with diverse backgrounds, including
design disciplines (architectural, structural, mechanical,
electrical, computer aided design and drafting (CADD), etc.),
project control individuals (cost control, estimating, quality
control, safety, etc. ), non-technical individuals (purchasing,
financial, legal, permitting, etc.) and owner’s representative.
Design Team

A design team can be made up of one designer or a group of

designers who play different roles, using different tools and
methods to achieve one common goal. Selecting design team
members is an important step in project management
because it begins the team building
Management Team

Successful team management requires the team to be an

integral unit of the organization. Project Management team
acts as the leader in acquiring resources, selecting team
members, determining schedules. The project management
team must establish a control system to complete the project
activities within a defined scope, budget, and schedule.
Construction Team
With all the diversity involved in a construction project,
people must be managed so they work together efficiently to
accomplish the goal. This requires skilled people who are
willing to sacrifice short-term gratification for the long-term
satisfaction of achieving a larger goal.

The number of construction teams for a project depends upon

the number of contracts awarded by the owner.
For years managers and supervisors have struggled with
methods of motivating workers. In the early 1950s A.H.
Maslow developed a theory of motivation called the hierarchy
of needs. Maslow’s theory has been used by managers, as well
as educators, to try to understand why people behave the way
they do, and how to motivate them.
Organizational Chart

displays the structure of the organization and shows the

relationships between organizational members and the ranks
of all the positions in the organization
Organizational Chart

Organizational Chart graphically display an employee’s

hierarchal status relative to other individuals within the
company.
The most common model situates the highest-ranking atop
the chart and positions lower-raking individuals below them.
Levels of Management :
Levels of Management :
It is common mistake to
believe that a person’s
location in the organizational
chart reflects their
importance to the company
and its performance.
Types of Organizational Charts

1. Functional Top-Down Hierarchy

2. Divisional Structure
3. Matrix Organizational Chart
4. Flat Organizational Chart
1. Functional Top-Down Hierarchy

This type reflects a traditional business structure. This

structure shows the C-level at the top, followed by other
senior management, middle managers, and so on. The
structure is divided into traditional departments like IT,
Finance, Human Resources and Operations based on
everyone’s functional role in the organization.
1. Functional Top-Down Hierarchy
2. Divisional Organizational Chart

This type reflects a company organized along a product line or

specific geography.
A company will use a divisional set up like this when one
division is sufficiently independent from another.
2. Divisional Organizational Chart
3. Matrix Organizational Chart

This type reflects a company where employees are divided

into teams by projects or product lead by a project or product
manager. Matrix charts often interconnect employees and
teams with more than one manager.
3. Matrix Organizational Chart
4. Flat Organizational Chart

This type of structure also known as horizontal chart will show

few or no levels of management between executives and all
other employees. This empowers self management and
greater decision making ability for every employee. Flat org
chart positions individuals on the same level, indicating more
power equality and autonomous decision-making ability than
is typical with employees in hierarchical corporations.
4. Flat Organizational Chart
Organizational Chart Uses

An organizational chart has four principal uses:

1. To Show Management Structure
It shows the management structure of the organization
at a glance.
Organizational Chart Uses

An organizational chart has five principal uses:

2. To show Other Organizational Structure
It shows hierarchies, such as business ownership
structures or other organizational structures, such as
relationships between companies with common ownership.
Organizational Chart Uses

An organizational chart has five principal uses:

3. As a Planning Tool
Organizational Charts are used to visualize and plan
company reorganizations
Organizational Chart Uses

An organizational chart has five principal uses:

4. An Employee Reference
It provides a reference for employees to help them
understand their role in the organization, to who they report
to, who reports to them.
Duties and Responsibilities
 Project Manager
• The project manager oversees the entire affairs of the
construction site as well as managing the human, material
and financial resources of the project, to keep up with the
project timeline.
Duties and Responsibilities
 Project Engineer
• The project engineer ensures that the project is quality-
controlled, time-controlled, and cost-controlled. They are in
charge of all aspects of a venture, including planning,
budgeting, personnel, and more. They spend a good
amount of time at project sites, ensuring work is being
completed safely and efficiently.
Duties and Responsibilities
 Site Engineer
• The site engineer's responsibilities include managing
different parts of construction projects, supervising crew
members, preparing estimates for time and material costs,
completing quality assurance, observing health and safety
standards, and compiling reports for different stakeholders.
Duties and Responsibilities
 Quality Assurance (QA) / Quality Control (QC) Engineer
• The Quality assurance (QA)/quality control (QC) engineers
are responsible for ensuring the quality of products and
services produced by their company. They oversee the
manufacturing of products and they are involved in every
stage of making a product--from development and
manufacturing to packaging.
Duties and Responsibilities
 Quantity Surveyor (QS)
• The quantity surveyor calculates, manages, and audits all
the construction resources needed for the project. They
are responsible for managing all aspects of the contractual
and financial side of construction projects and manage the
costs on a construction project. They help to ensure that
the construction project is completed within its projected
budget.
Duties and Responsibilities
 Structural Engineer
• The structural engineer designs all the structural elements
in a project and supervises the construction to ensure that
proper building practices are being adhered to on the
construction site.
Duties and Responsibilities
 Planning Engineer
• The Planning Engineers determine and develop the most
suitable and economically viable construction and
engineering methods for projects. They are involved
throughout the development stages, and are present on
site during the build to oversee procedures.
Duties and Responsibilities
 Architects
• Architects design the physical aesthetics of the buildings.
They carry out periodic site visits to ensure adherence and
compliance to the architectural plan while liaising directly
with the structural engineers and site supervisors.
Duties and Responsibilities
 Health, Safety and Environment (HSE) Officer
• The HSE officer pilots and implements the company’s
health, safety, and security policy on the construction site.
Duties and Responsibilities
 Maintenance Engineer
• Ensures all site machinery is in perfect working condition in
order to reduce downtime. They constantly carry out
maintenance checks on all site machinery and document
their processes.
Duties and Responsibilities
 Electrical Engineer
• Electrical engineers create electrical designs of structures,
consisting of the layout of both the electrical piping
(internal) and fittings (external).
Duties and Responsibilities
 Mechanical Engineer
• They create mechanical designs of structures, consisting of
the layout of the plumbing piping and fittings.
Duties and Responsibilities
 Procurement Officer
• They are in charge of the purchase of all materials needed
on site. Their priority is to effectively control the cost of
purchase of needed materials, and the timely delivery to
the site so as to not slow down the project thereby
increasing project duration.
Duties and Responsibilities
 Human Resource Director
• The HR Directors are tasked with overseeing HR systems,
handling employee relations, ensuring compliance with
regulations, assessing staff needs, hiring employees,
designing training programs and developing compensation
plans.
Duties and Responsibilities
 Financial Director
• The Financial Directors are also known as directors of
finance or directors of financial planning. They are tasked
with overseeing all financial activities, reporting on
revenue, training accounting staff, budgeting, disbursing
funds to departments, managing risks, implementing
policies and improving financial processes.