Project Organization

CHAPTER : Project Organization
Project Organization
The term project organization refers to the style of coordination,

communication, and management the project team uses throughout a
project lifecycle.
Areas of responsibility in the project organization.
Project leadership : Project leadership is the art and science of steering
a team towards the successful delivery of a project. It ensures that
together, the team accomplishes more than they could as individuals
because project leadership brings people together to achieve a common
goal.
project team: The project team is the group of people responsible for
executing the tasks and producing deliverables outlined in the project plan
and schedule, as directed by the project manager.
Project board : The role of the project board is to agree the project
deliverables and objectives and monitor the work of the project team. In
support of the project sponsor the project board will own the benefits of
the project and ensure that the project is on track to achieve them.
 Factors to be considered in project organization

1. Designing the job:
Job design is the process of establishing employees' roles and
responsibilities and the systems and procedures that they should use or
follow. The main purpose of job design, or redesign, is to maximize
performance.
2. Grouping the job:
The process of grouping jobs is called departmentalization.
Departmentalization is a method of dividing an organization into different
departments, which perform certain tasks in accordance with the
department's specialization
3. Chain of command:
It refers to a company's hierarchy of reporting relationships. A chain of
command is an organizational structure that documents how each member
of a company reports to one another.
4. Decision-making approach:
Decision-making can also be classified into three categories based on the
level at which they occur.
• Strategic decisions are those decisions that have an influence over
years, and even beyond the lifetime of the project.
• Tactical decisions are decisions about how things will get done.
• Finally, operational decisions are decisions that employees make each
day to run the organization.
5. Span of control:
• The span of control in project management suggests the optimum
number of subordinates managed by a single supervisor. It depicts
the organization’s size and workgroups.
Types of project organization
There are many kinds of organizational strategies to implement for project

success, including:
Functional
Functional project organization is structured around traditionally
functioning departments with managers who report to an executive. It is
the most commonly used project organization. There are no project
managers. Instead, the managers coordinate projects and select team
members from each department to support the project.
advantages of a functional structure
There are many advantages to employing a functional structure in your

business. They include:
1. Increased productivity: People in a functional structure setting

have specialized skills that allow them to work more quickly and
efficiently than those who may be unfamiliar with specific subjects,
which leads to greater productivity.
2. Skill development: Within each team, experienced managers have
the chance to teach their team members the same skills they
possess, resulting in an enhanced skill set for all involved.
3. Clarity: Any time someone within the company needs high-level

information related to marketing, human resources, customer service
or operations, they know where to go. Plus, the hierarchical nature of
the functional structure clarifies the specific roles and responsibilities
of every person within a department.
4. Minimized cost of operation: By organizing employees according
to business functions, departments can reduce the chance for
multiple departments to complete similar work.
3 disadvantages of a functional structure
Some of the disadvantages of functional organizational structures include:
1. Hindered decision-making: Formal organizational

structures ]ypically require employees to seek approval from
management and other authority figures before making decisions.
When management is unavailable for feedback during time-sensitive
projects, it may hinder the team's overall progress.
2. Competition between departments: As employees within each
department work together, they begin to operate as a team with a
focus on achieving specific goals. This goal-oriented mindset, while
typically positive, may prompt competition between departments.
3. Narrow scope: Without extra guidance and information from
managers, employees within departments may work with limited
knowledge of how their roles relate to the company's objectives.
They may also not understand how their work relates to other
departments.
Project-oriented
Also known as projectized organization, the project-oriented approach has
dedicated project divisions within the company. Each division focuses on a
specific project and what is necessary to complete its tasks. Project division
managers make significant decisions regarding goals, schedules and
responsibilities for their team members.
The advantages of a project-based organization structure are as
follows-
A clear benefit of a project structure is that you have more control over the
team. However, there are many other advantages. For example, such a
structure can:
 facilitate a multi-disciplinary or cross-functional way of working

 flatten a business' hierarchy
 create a strong team culture and sense of identity
 ensure a business is organised according to its core activities
 make better use of employees' skills
 make it easier to schedule work with dedicated resources
The disadvantages of a project organisational structure
project organisational structure can:
 blur organisational lines, since it effectively removes staff from their

functional jobs
 suck up resources and staff to work on a single project, rather than
wider objectives
 confuse lines of accountability as employees may report to several
different managers
Matrix
Matrix project organization focuses on both functional and project-oriented
approaches. This approach means the team considers both the project and
team member roles equally. Project leaders and those higher up in the
structure make the decisions. There are three subtypes of matrix
organizational structures:
 Balanced: Both project managers and functional managers have
equal (or similar) levels of authority.
 Strong: Project managers have more authority than functional
managers.
 Weak: Functional managers have more authority than project
managers.
How to structure a project
Project organization requires the deliberate integration of team strategy.

Consider the following steps when structuring a project:
1. Identify project members
When starting a project, identify each member that participates in its
development. Think about people you want to invite to join the team and
any additional roles needed. When you recognize each member of the
project, you acknowledge the individual talents and perspectives they add.
Identifying members make it easier to assign responsibilities to each
individual.
2. Set goals
Goals focus team members on particular tasks that help contribute to the
project. Teams that have goals share a similar purpose and work toward
achieving mutual tasks. Consider using a SMART framework to help plan
out goals.
3. Create a timeline
Timelines are a good way to track progress and stay punctual as a team.
They outline project milestones and provide due dates as to when the
team wants to achieve each goal. Timelines can focus on a week, a month
or a year depending on how specific the team wants to be.
4. Train project members
An effective team is adequately trained and well-educated in their roles.
When working on a project, make sure each team member is thoroughly
trained and feels confident in their work. Initial training provides a great
foundation for a project. Meanwhile, ongoing training provides team
members with the opportunity to continue learning and expanding on their
expertise.
5. Assign responsibilities and roles
When you begin your project, assign obligations and roles to each team
member. With predetermined duties and functions, members know how to
participate in the project and what work to produce. Roles might develop
over time and some team members might gain additional responsibilities.

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CHAPTER : Project Organization

The term project organization refers to the style of coordination,

 Factors to be considered in project organization

Types of project organization

There are many kinds of organizational strategies to implement for project

advantages of a functional structure

There are many advantages to employing a functional structure in your

1. Increased productivity: People in a functional structure setting

3. Clarity: Any time someone within the company needs high-level

3 disadvantages of a functional structure

Some of the disadvantages of functional organizational structures include:

1. Hindered decision-making: Formal organizational

 facilitate a multi-disciplinary or cross-functional way of working

 blur organisational lines, since it effectively removes staff from their

How to structure a project

Project organization requires the deliberate integration of team strategy.

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