Project Organization Structure

Introduction:

What type of Organization Structure are you dealing with in your facility? Does your entity complete projects for other facilities? Is every phase in your organization treated as an operation? Or does it know what to do with people like you?

You may have thought or exposed to these questions, in this topic we are going to know about the Project Management Organization in a way that may answers related questions.

What is meant by Project Organization?

Project Organization aims to define the employees structure for a project or a facility which leads to create the Project Organization chart that allocates roles, responsibilities and relationships of the team.

How could it be important?

Project Management organization is necessary for some purposes such as:

• Determine if the project needs an outsourcing requirements
  
• Identifying the stakeholders to that involved with the project
  
• Define any technical or business specialists needed to enhance the project performance
  

Types of Project Organization Breakdown Structure (OBS):

• Functional Organizations
  

Functional organizations have a clear division regarding business units and their associated responsibility. For example, a functional organization may have an Accounting Department, Design Department, Project Management Department, Execution Department, and so on. Each department works as a separate facility. Functional Organizations are considered the classical Organizations where it has a clear distinctions between employees and managers. This organization remains one the most successful specially when used for routine Work.

Functional Organization for the Project manager will specify that he:

• Has minimum authority
• Reports to functional Manager directly
• May be called as Project Coordinator OR Team Leader
• Part Time Rolled
• Has the minimum administrative staff to accelerate the project activities

• Projectized Organization:
  

Unlike the functional organization here we will find that the Project Manager has the full authority and subjected to the highest level of review which is generally for the budget, delivery and schedule. This type of organization is usually used in large projects in far distance locations such as remote power plants or dams.

• Specification:
  
  • Separation between project and the main system
  • Unity of Command
  • Maintain Permanent group of experts
  • Major changes are required

• Advantages & disadvantages:

• Matrix Organization:
  

Matrix structures combines departmental duties and employees together on project. Matrix structure allows for project team members to be from several departments working for the project completion. In these instances, the project team have more than supervisor. Relaying on the number of projects a team participates in, they may have to report to multiple project managers and their functional manager. The matrix organization is a mixture of the projectized organization and the functional organization. It is the one that allows the concept of project management to work best.

• Advantages & disadvantages: