Project Management Lecture 6 Project Organization

Lecture 6: Project organization Def: Project organization refers to the structure and system used to manage and coordinate the various aspects of a project. It involves defining roles, responsibilities and reporting relationships to ensure that the project is completed efficiently and effectively. A wellstructured project organization helps ensure that resources are allocated appropriately, tasks are executed on time and goals are met. Organizational structures    The way which a company or org. arranges its internal hierarchy and roles to achieve its goals and objectives. Defines how tasks are divided, coordinated and supervised. An effective organizational structure facilitates communication, enhances operational efficiency, and ensures that all parts of the organization work towards common goals. Key elements of organizational structure     Levels of authority defines the layers of management and reporting relationships. Chain of command: the line of authority within the organization, showing who reports whom. Departmentalization: grouping of similar activities of functions into departments, such as marketing, finance and human resources. Integration mechanisms: processes and systems that ensure different parts of the organization work together effectively Type of organizational structures There are many variants of organizational structure. In terms of project management the following are commonly used 1. Functional structure 2. Matrix structure 3. Independent structure  Functional structure     Departments or functions operate independently with each department handling its own project Most commonly/traditionally used The organization is divided into different departments or functions, each specializing in a specific area of expertise This setup groups employees based on their roles, skills and task they perform, leading to a clear hierarchy and defined roles within each department. Main features of functional structure  Employees are grouped based on their skills/tasks such as marketing, sales, hrm etc.    Employees report to functional manager who oversees their specific function The chain of command is clear within each department Communication flows smoothly within each functional department due to the specialized nature of the work and clear reporting lines. The matrix structure    Is a hybrid organizational structure that combines elements of both the functional and projectized structures It is designed to improve the flexibility and efficiency of the organization by allowing for more dynamic allocation of resources and better collaboration across different functional areas. In this structure, employees typically report to two managers: one functional manager and one project or product manager. Main features of matrix structure     Employees have dual reporting relationships Resources, including personnel, are shared across departments. This allows for more efficient use of resources. Teams are composed of members from various functional department, which encourages collaboration across different areas of expertise. The matrix structure is often used when organizations have multiple projects running concurrently. Pure project structure    Is an organizational structure in which the entire company is organized around projects In this structure, the project manager has full authority over the project and its resources, including the team members, budget and schedule. Team members are dedicated exclusively to the project, and they report directly to the project manager rather than to a functional manager. Project team    Is a group of individuals brought together to work collaboratively on a specific project. The team typically consists of members from different departments or areas of expertise, each contributing their specialized knowledge and skills to the project. The project team operates under the leadership of a project manager, who coordinates the efforts of the team to achieve the project objectives. Factors to consider when selecting team      Credibility: ethical and reputable Availability: readily available when needed Technical expertise: select skilled employees Problem solving availability Dynamic and adaptable Team building    Refers to the process of developing and strengthening the relationships, trust, collaboration and effectiveness of a group of individuals working together as a team In the context of project management or organizational development, team building is crucial for creating high-performing team that works cohesively towards shared goals. It involves activities, exercises, and strategies aimed at improving communication, boosting morale, fostering a sense of unity, and enhancing problem-solving skills within the team. Team building process      Forming: the project is assembled, roles and responsibilities are defined, and team members begin to get acquainted with each other and the project objectives. Storming: as team members start working together, conflicts or differences of opinion may arise. This is a natural stage where the team is working out how to collaborate effectively. Norming: the team begins to develop a stronger sense of unity and collaboration. Processes and workflows are established, and team members start to work more cohesively. Performing: the team reaches peak productivity and efficiency. Members work collaboratively to achieve project milestones and objectives with minimal friction. Adjourning: once the project is completed, the team is disbanded. This stage may involve transition team members back to their departments, reviewing project outcomes and celebrating success. Responsibility matrix   Also called RAM or RACI matrix, Is a tool used in project management to define and clarify the roles and responsibilities of team members and stakeholders in relation to specific tasks or deliverables. It ensures that everyone involved in the project understands their duties, helping to avoid confusion, overlaps and gaps in responsibility. Example of responsibility matrix R: responsible: the person or people responsible for completing the task or deliverable. They do the work A: accountable: the person who is ultimately accountable for the task or deliverable. This person approves the work and ensures it meets the necessary standards. C: consulted: the person or people who need to be consulted before a decision or action is taken. They provide input based on their expertise. I: informed: the person or people who need to be kept informed about the progress or outcome of the task. They do not contribute directly to the work but need to stay updated. Internal team structure    Refers to how roles, responsibilities and relationships are organized to achieve the projects goals for a particular team. The structure can vary based on the size, complexity and scope of the project, as well as the organizations culture and management style. Several types are: o Traditional team structure o Isomorphic structure o Expert structure o Egoless o Autocratic Traditional team structure  Classic top-down structure where there is a clear chain of command.  A project manager oversees the entire project, and the team is organized into layers.  Team leaders report to the manager and individual contributors reporting to the team leader.  It is normally used for larger projects. Isomorphic structure  Refers to a team structure that closely mirrors or mimics the structure of the project  The structure allows the team to execute different areas of the project at once  A team is grouped into subunits of a project  There is challenge of coordinating the project. Expert structure  Is an organizational design in which authority, decision-making and leadership are concentrated around individuals or teams with the highest expertise or specialized knowledge in a particular field.  This type of structure is common in projects where specialized knowledge is critical to success, such as law, medicine, research and technology. Egoless  Is an organizational or team structure where hierarchy and formal authority are minimized in favor of collaboration, shared ownership and collective responsibility.   In this model, the emphasis is placed on the work, not on individual status or rank. The goal is to create an environment where all members contribute equally, decisions are made collaboratively, and the focus is on problem-solving rather than personal recognition or power dynamics. Autocratic  Is an organizational design where one individual holds absolute control and decision-making authority.  In this structure power is centralized at the top, and the leader or manager makes all key decisions without input or consultation from subordinates.  This structure is characterized by strict oversight, rigid control and a clear chain of command.