PROJECT

MANAGEMENT
ORGANIZATIONAL
STRUCTURE
PROGRA PROJECT
M
VS
MANAGE
MANAGE
R
R
 Program Manager

A program manager synchronizes

groups of related projects instead of just
manage individual projects. In order to
accomplish strategic outcomes the goal is to
leverage return on investment (ROI) and
control which is not obtainable from
managing projects individually.
 Project Manager

A project manager vary from

company to company. For several project
managers, the next step in their careers is the
move up to program manager. A lot of project
managers look up to program managers and
aspire to be in their shoes one day.
 Manager
Factors of Project manager Program manager
comparison
Focuses Content, scope, Context, people,
schedules and politics, and
resources. 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 Ensuring projects get Maximizing ROI and
completed on time value delivery.
 THE PROJECT ORGANIZATIONAL
STRUCTURE
 A project organization is a structure that facilitates
the coordination and implementation of project
activity.
 Many business firms have extended great effort
with forming a system for organizational structure
while at the same time supervising ongoing
operations.
 One of the key objectives of the organizational
structure is to lessen uncertainty and disorder that
usually transpires at the project initiation stage.
THE PROJECT ORGANIZATIONAL
STRUCTURE
 Every project is exclusive because it is a one-
time effort with definite start and end.
 It is necessary to project success having an
appropriately devised project organization
chart.
 It is the responsibility of the project manager
to create a project structure that will match
the various project requirements at different
 A project structure can be in
different forms.
Forms of
 Every form has its own
advantages and Project
disadvantages. Organizatio
 There are often varied project nal
organizational structures that
are used in the organization. Structure
 These structures are at times
informal and often overlap
and sometimes even oppose
each other.
 Organizing Projects within a Functional
Organization
The functional structure is the oldest
yet the most effective organizational
technique. This strategy is best
suited for routine functions. However,
it doesn't work effectively when used
in complex projects.
 Advantages of Projects in a Functional
Organization

There is a Individual Specialists

Advantage

Advantage

Advantage
maximum experts can in the
flexibility in be utilized division
the use of by many can be
staff. different grouped to
projects. share
knowledge
and
experience.
Advantages of Projects in a Functional
Organization

The functional The functional

Advantage

Advantage
division also division contains
serves as a base the normal path
of technological of advancement
continuity when for individuals
individuals whose expertise
choose to leave is in the
the project and functional area.
even the parent
firm.
 Disadvantages of Projects in a
Functional Organization

The client The In The lack of

Disadvantage

Disadvantage

Disadvantage

Disadvantage
is not the functional functionally coordinated
division organized
focus of tends to be effort tends
activity projects, no
oriented to make
and individual is
toward the
given full response to
concern. activities client needs
particular to responsibilit
y for the slow and
its function.
project. difficult.
 Disadvantages of Projects in a
Functional Organization

There is The This

Disadvantage

Disadvantage

Disadvantage
motivation organizationa
tendency l
to of people arrangement
suboptimiz assigned to does not
e the the project facilitate
project tends to be holistic a
weak. approach to
the project.
 Organizing Projects within a
Projectized Organization

-is a structure that is particularly created

for executing projects. It is really
principally tailored to meet the demands of
complex projects by isolating exclusive
function and maintaining a strong focus on
completing the project.
Figure 6. Organizational Chart of a
Projectized Organization
 Advantages of Projects in a Projectized
Organization

The project All Specialists

Advantage

Advantage

Advantage
manager members in the
has full line are directly division
authority responsible can be
over the to the grouped to
project. project share
manager. knowledge
and
experience.
 Advantages of Projects in a Projectized
Organization

Projectized Project team The ability to

Advantage

Advantage

Advantage
organization that has a make swift
can maintain a strong and decisions is
more or less separate greatly
permanent identity of its enhanced.
pool of experts own tends to
who develop develop a high
considerable level of
skills in specific commitment
technologies. from its
members.
 Advantages of Projects in a Projectized
Organization

Unity of Simple The

Advantage

Advantage

Advantage
organizationa
command and l structure
exists. flexible tends to
which support a
holistic
makes approach to
them easy the project.
to
implement
 Disadvantages of Projects in a
Projectized Organization

The need to access Though

When the
Disadvantage

Disadvantage

Disadvantage
to technological individuals
organization knowledge and engaged in
skills results in an
s takes on attempt by the projects develop
considerable
several project manager to
stockpile depth in
projects, it equipment and technology of
is common technical the project, they
assistance in order tend to fall
for each to be certain that it behind in other
will be available
one to be when needed.
areas of their
technical
fully expertise.
 Disadvantages of Projects in a
Projectized Organization

Projectized Team The worry

Disadvantage

Disadvantage

Disadvantage
project members
teams seem
on "life
form strong
to foster attachments after
inconsistency to the project
in the way in project and ends" of
which
policies and
to each members.
other known
procedures
are carried as
projectitis.
ORGANIZING PROJECTS
WITHIN A MATRIX
ORGANIZATION
 A matrix
organization is a
structure in which
there is more than
MATRIX
one line of reporting
managers. It means
ORGANIZATIO
that the employees N
of the organization
have more than one
boss.
 Employees are
assigned a job or
project outside their
own department for a
relatively temporary MATRIX
period. These teams are ORGANIZATIO
made up of people with
diverse expertise who N
have come together
and formed a team to
attain specific goals.
 Represents the
traditional vertical
structure based on
department or job A
function. FUNCTION
 Examples of this role
are marketing AL
managers, sales MANAGER
managers, and human
resource managers.
 Oversees a cross-
functional team with
representatives from each
department. In this
A
structure, a marketing PROJECT
specialist reports to their
functional marketing MANAGE
manager as well as their
project manager. R
 Divisions may be based on
business unit, geography,
project, or anything else.
 Advantages of Projects in a Matrix
Organization

The project Response The project

Advantage

Advantage

Advantage
is the point to client has access
of to
importance needs is representat
rapid and ives from
flexible the
administrati
on of the
parent firm
 Disadvantages of Projects in a Matrix
Organization

Matrix Delay of Competitio

Disadvantage

Disadvantage

Disadvantage
management decision-
violates the
n in terms
making due to
unity of agreements of sharing
command between scarce
principle with multiple resources.
two bosses - functional
functional groups have
head and to be
project considered
manager
The balance
of authority in FUNCTIONA
this form L,LIGHTWEI
supports the GHT, OR
WEAK
functional MATRIX
manager.
This form resembles
the traditional
matrix arrangement
in which both MIDDLEWEIGH
parties work closely
T OR BALANCE
together and jointly
approved technical
MATRIX
and operational
decisions.
The balance of
authority in this PROJECT
form is strongly HEAVYWEIGHT
inclined on the OR STRONG
side of the MATRIX
project
manager.
Form of Matrix Authority of the Authority of the
FM PM
Functional Project Manager
Manager calls act as a staff
assistant who
more of the
draws the
shots and schedules and
decide who checklist,
does, what collect
and when the information on
work is status of work
completed. and facilitates
project
completion.
Form of Matrix Authority of the Authority of the
FM PM
FM is concern for The PM
assigned establishes the
personnel and overall plan for
executing their completing the
segment of a project,
project according integrates the
to the standards contribution of
set by the project the different
manager. discipline, set
schedules , and
monitor
projects .
Form of Matrix Authority of the Authority of the
FM PM
The FM is The PM
consulted on controls most
the need basis aspects of the
specially with project
regard to including scope
personnel. trade-off and
assignment of
functional
personnel.
 Organizing Project Within a
 The Virtual
used of Organization
internet and
other modern
communication
technologies paved the way
to the rise of virtual
Project.
Virtual project has project team that may work in
the following circumstances:

Different time zones

In geographically dispersed
places

In different organization

Different Culture
 Four types of
Electronic
Communication.
 It provides a faster and
cheap mode of
communication
worldwide. This is
Internet
necessary way of
contacting all
participants in virtual
Projects especially with
virtual project manager
who depend on email to
exchange project data
with his disperse team.
Each member has a
paging system with THE
individual page
number. A particular PAGER
team member can be
"paged" whenever
an issue surface that
requires the
person's attention.
This mode of
electronic

TE
LE
communication

C O NG
allows all

N
essential persons

FE
to share

R
EN
conversation and

CI
resent their view
in real time.
This manner of

VI
D
communication

EO
saves time and

CO G
money for the

N
N
FE
geographically

RE
disperse team by

N
periodic face to

CI
face meeting.
 Selecting the Optimal
 The optimal project organizational structure
Organizational Structure
balances project needs with organizational
needs, resulting in better business results and
competitive advantage. Senior management
makes this decision, with preferences
influenced by the situation. There is no step-
by-step procedure for selecting the structure,
and considering the project's nature,
organizational alternatives, and parent
organization's cultural preferences is crucial
for creating the best compromise
Basic considerations that may influence the
selection of the organizational structure for
project management:
• a project could be small, medium
Project size and large.

• refers to the duration from the

The project length start of an element's execution to
its completion.
Experience with project • familiarity with other
management organizations' way of handling
organization projects.
The philosophy and • refer to the beliefs and support of
visibility of upper level top management.
management
Basic considerations that may influence the
selection of the organizational structure for
project management:
Project • the geographic location using the
street address, nearest major city,
location or the latitude and longitude.

• the accessibility of needed

Available resources.
resources
Unique • include effective control of human resources,

aspects of which are classified as labor-intensive or

capital-intensive, requiring formal structures
or informal organizational forms.
the project
Thank You