8. Project Organisation

A project organisation defines the structure of a project and its created separately from main operational departments. Its created using a variety of specialist workers that are managed directly by the project manager. Workers can be sourced inhouse or through sub-contractors. The project organisation is broken down into three components: the project leadership (which is responsible for the management of the project), the project team (implements the project), and the project board (decision making body that determines success).

A project organisation is a process, where it enables the arrangements on how critical decisions will be made and enforced on the project. It also decides the budget costs, stakeholders, deadlines, and materials required. Once this is complete the project plan is then presented to the project stakeholders for approval (Hughes, 2019).

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There are three forms of Project Organisations

The functional Organisation

This type of organisation has its departments grouped by areas of specialty, skillset, knowledge, and experience. An example of this would be marketing, finance, information technology etc. This is a form of ‘top management’ as it vertically structures each respective department and their underlying roles. It involves a single line of authorisation/approval. This type of organisation is viewed as a silo environment as each department work independently and have their own vertical management structure.

Advantages

This structure is more efficient and provides higher quality of work as it groups workers by their specialism. The process is streamlined as management hierarchy is transparent and communication channels are standardised, which enables the workforce to be highly motivated and collaborate effectively (UpCouncil, 2020).

Disadvantages

Tasks can be repetitive which will lower worker morale and motivation. Work politics and focusing only on specific departments can lead to ineffective communication. This structure also allows little room for flexibility, innovation, or project changes (UpCouncil, 2020).

An example of a functional organisation is depicted below.

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Pure Project Organisation

This type of project structure is where the project manager has overall control of the project and is and can delegate where required. Its most suitable for large projects that are restricted to one area or skillset (pm4dev,2016).

Advantages

There are clear lines of authority whereby the project managers of large projects tend to be the project unit manager. All workers employed have been employed based on their skillset and are dedicated solely to one area therefore resources are not an issue. The project team generally work well together as they have similar skills and work closely together (pm4dev,2016).

Disadvantages

The project manager may not have all the specialists required to complete the project. Similarly, workers may have other responsibilities or tasks on the project which can hinder them working full time in one area and can impact the completion of the project (pm4dev,2016).

An example of a pure project organisation is depicted below.

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The Matrix Organisation

This type of organisation enables the workers with specialist/technical capabilities to work on various aspects or various departments involved in the one project. This enables for a specialist to work and report to one specific project manager, but that their time /expertise can be utilised on additional projects. This is a hybrid model whereby teams report to both a functional and project manager (pm4dev,2016).

Advantages

Allocation of resources are efficiently used, and specialised workers can be allocated where they are required depending on the project needs. This type of organisation is flexible and adaptable to changes in project plans, allowing for these changes to be prioritised when required. It also allows for the sharing of knowledge and experience, enhancing career progression and development (pm4dev,2016).

Disadvantages

Reporting relationships can be complex and therefore confusing to workers. It can also be unclear when and where workers will be working on the project as they may have multiple functions on the project. Communication can also be affected with numerous people working on the project at different times/intervals. Priorities can be difficult to determine as different project managers on the project may have different goals, objectives, or approaches (pm4dev,2016).

An example of a matrix organisation is depicted below.

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References

Hughes, K. (2019). Project Organisation 101: How to Structure Your Project. Project Manager. Com,Inc URL: Project Organization 101: How to Structure Your Project (projectmanager.com) [Accessed 07.12.2021]

Pm4dev, (2016). Project Management Organisational Structures. Project Management For Development Organisations. URL: file.html (pm4dev.com) [Accessed 07.12.2021]

UpCouncil (2020). Functional Organisational Structure: Everything You Need To Know. UpCouncil Technologies, Inc. URL: Functional Organizational Structure: Everything You Need to Know (upcounsel.com) [Accessed 07.12.2021]