Chapter 5 Project Management organizational structure

Program manager vs. Project Manager

Program Manager - synchronizes group of related projects instead of just manage individual projects.

Project Manager - supervises horizontally a crossed the functional projects involve with the program.

Table 9 Project Manager vs. Program Manager

Factor of comparison Project manager Program manager

Focuses Content Context
Scope, schedules, resources People, politics and negotiating
Manages Projects Portfolios
Performs More technical tasks More strategic tasks
Handles Risk management Change management
(program and environmental
changes)
Deals Project requirements Business strategies and
objectives
Responsible Insuring projects get completed Maximizing ROI and value
on time, within budget delivery

The Project Organizational Structure

Project organization - A project organization is a structure that facilitates the coordination and
implementation of project activities

Forms of Project Organizational Structure

Organizing Projects within a Functional Organization

Figure 5 Organizational Chart of a Functional Organization

 President

Vice President Vice President Vice President

Vice President Vice President Vice President
Human Research & Customer
Finance Production Marketing
Resources Development Services

Manager Manager Manager

Chief Engineer
Accounting Operations Logistics

Table 10 Advantages and Disadvantages of Projects in a Functional Organization

Advantages Disadvantages
1. There is a maximum flexibility in the use of 1. The client is not the focus of activity and
staff. concern
2.Invidual expert can be utilized by many different 2.The functional division tends to be oriented
Project. toward the activities particular to its function
3. Specialists in the division can be grouped to 3. In functionally organized projects, no individual
share knowledge and experience. is given full responsibility for the projects.
4. The functional division also serves as a base of 4. The lack of coordinated effort tends to make
technological continuity when individuals choose response to client needs slow and difficult.
to leave the project and even the parent firm.
5. The functional division contains the normal path 5.There is tendency to sub optimize the project
of advancement for individuals whose expertise is
in the functional area.
6. The motivation of people assigned to the project
tends to be weak.
7. This organizational arrangement does not
facilitate a holistic approach to the project.

Organizing Projects within a Projectized Organization

Projectized organization – is a structure that is particularly created for executing projects.

 President

Administrative
Support

Project Project Project Project

Project Fox
Alpha Bravo Charlie Delta

Team Team Team Team Team

Table 11 Advantages and disadvantages of projects in projectized organization

ADVANTAGE DISADVATAGES
1. The project manager has full line authority over 1. When the organization takes on several
the project. projects, it is common for each one to be fully
staffed.
2. All members of the project work force are 2The need to access to technological knowledge
directly responsible to the project manager. and skills results in an attempt by the project
manager to stockpile equipment and technical
assistance in order to be certain that it will be
available when needed.
3. When the project is removed from the 3. Though individuals engaged in projects develop
functional division, the lines of communication are considerable depth in technology of the project
shorthand. they tend to fall behind in other areas of their
technical expertise.
4. When there are several successive projects of a 4. Projectized project teams seem to foster
similar kind the projectized organization can inconsistency in the way in which polities and
maintain a more or less permanent pool of experts produced are carried out.
who develop considerable skills in specific
technologies.
5. The project team that has a strong and separate 5. Team members from strong attachments to the
identity of its own tends to develop a high level of project and to each other known as projectitis.
commitment from its members.
6. Because authority is centralized the ability to 6.The worry on the life after project ends of
make swift decision is greatly enhanced. members
7. Unity of command exits.
8.Projectized organizations are structurally simple
and flexible which makes them relatively easy to
Understand and to implement
9. The organizational structure tends to support a
holistic approach to the project.

Organizing Projects within a Matrix Organization

Matrix organization - is actually a project management structure that combines the very best
components of functional organization and project organization structures besides the recognition of
intrinsic defects inside these two structures.

Chief Executive
Officer

Vice
Vice Vice Vice
President
President President President
Human
Finance Marketing Operations
Resources

Project
Manager
Alpha

Project
Manager
Beta

Project
Manager
Charlie

Table 12 Advantages and Disadvantages of Projects in a Matrix Organization

Advantages Disadvantages
1. The project is the point of importance 1. Often times there are apparent tension between
functional manager and project manager which
has the tendency to become personal.
2. Because the project organization is placed on 2. There is conflict and competition in the sharing
top on the functional division, getting labor and of scarce resources.
talent from them for the time being, the project
can make use of the whole pool of technology in
all functional division
3. there is less worry about what happens when 3. matrix management violates the unity of
the project is finished than a projectized command principle with two bosses-functional
organization because team members are still close head and project manager.
to their functional organization.
4. response to client need is rapid and flexible. 4. decision making can get played because
agreements with multiple functional groups have
to be considered.
5. with matrix management, the project has access
to representatives from the administration of the
parent firm.
6. with simultaneous projects, matrix organization
permits a better companywide balance of
resources to accomplish the differing time, cost
and scope of each project.
7. the matrix organization covers a wide range of
what are between the functional and projectized
organizational structures.

There are several forms of matrix organization based on the authority of the functional and project
manager, specifically

1. Functional, lightweight or weak matrix-

2. Middle weight or balance matrix

3. Project, heavy weight or strong matrix

TABLE 13 L
 Chief
Executive

Functional Functional Functional Manager of

Manager Manager Manager Project Manager

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

Staff Staff Staff Project Manager

ORGANIZATIONALL PROJECTS WITHIN A VIRTUAL ORGANIZATION

This use of the internet and other modern communication technologies paved the way to the rise of
virtual projects. A virtual project has team that may work in different time zones in geographically
discovered places, in different organizations, and in different cultures.

There are four types of electronic communication being used in help in beating the lack of formal and
informal persons contact between members of the project team.

1. THE INTERNET - it provides a faster and cheap mode of communication worldwide.

2. THE PAGER - Each member has a paging system with individual page number a particular team
member can be paged whenever an issue surface that requires the persons attention.

3. TELECONFERENCING

4. VEDIO CONFERENCING

SELECTING THE OPTIMAL ORGANIZATIONAL STRUCTURE

Here are some basic considerations that may influences the selection of the organizational structure for
project management.

1. Project size - A project size could be small medium large

2. Project length - Number of calendar periods it takes from the execution of element starts to the
moment it is completed.

3. Experience with project management organization - Familiarity with other organizations way of
handling projects.

4. Philosophy and visibility of upper level management - The beliefs and the presence of support of top
management.

5. Project location - The geographic location using the street address nearest major city, or the latitude
and longitude.

6. Available resources - The accessibility of needed resources.

7. Unique aspects of the project - the best control of human resources classified as labor intensive and
capital intensive labor intensive projects need a formal structure while capital intensive labor intensive
labor intensive labor intensive projects need a formal structure while capital intensive labor and
intensive projects needs a formal structure while capital intensive may use informal organizational form.
Glossary of Important Terms

BALANCED MATRIX - This form resembles the traditional arrangement in which both parties work closely
together and jointly approve technical and operational decision.

FUNCTIONAL STRUCTURE - The structure is based on the kind of work performs.

MATRIX ORGANIZATION - It is structure that combines the very components of functional

organization and project organization structures besides the recognition of intrinsic defects inside these
two structures.

PROJECT MANAGER - He synchronizes groups of related projects instead of just manage individuals
projects.

PROJECT ORGANIZATION - It is a structure that facilities the coordination and implement of projects
activities.

STRONG MATRIX - the balancer of authority in this form is strongly inclined on the side of the of the
project manager

VIRTUAL PROJECT - it has a project team that may be work in different time zones, in geographically
dispersed places, in different cultures.

WEAK MATE - the balance of authority in this form supports the functional manager.

ABSTRACT

Boarding house is being a choice for students who derived from out of town. The first

thing for a student when they decided to stay in the boarding house is the distance to

the campus. Then they will consider to the satisfaction that influence to their
decision to renew the contract. This research will study about the tenant

satisfaction in boarding house based on four indicators, namely the building

features, building quality, neighborhood features and service from the owner. These

factors will determine tenant satisfaction for student which can affect their desire to

renew the lease. This study was conducted in a questionnaire form that given to the

students who stay in a boarding house around University of Sumatera Utara

(USU), especially on Pembangunan street that located near USU and have a shortcut

to USU. The analysis used is multiple regression analysis. The finding of this study is

the tenant satisfaction can influence the tenant renewal

References

Bomogao, et al. (2012). “Living Conditions of Boarding Houses of Students of the Kalinga-Apayao State
College, Dagupan Campus for the School Year 2009-2012”, Undergraduate thesis, Kalinga-Apayao State
College.

According to the researchers' initial observations; most boarders have encountered problems in their
boarding houses such as overcrowding, poor ventilation, poor maintenance and limited facilities, a
kitchen infested with rats and cockroaches, and poor management. The boarders' living conditions are
thought to be affected by the boarding houses' social and physical environmental conditions. The
researchers' main reason for conducting this research is to inform the government, boarding house
owners, and students about the level of satisfaction on student boarders' living conditions in their
respective boarding houses/dormitories. In addition, having an idea about the life they will encounter
when living in boarding houses will aid the researchers in their research.