Group :A Group Name :Blooming

rose Semester : 7th

Section :E

Project Organization

The project organization defines the human infrastructure of the project. This task is designed to define the project organization chart, the roles, and the relationships of the project team. The organizational structure clearly identifies roles and responsibilities of each position, augmenting the existing role definitions where necessary to cover all of the responsibilities. The project organization technique that is used in this step provides a standard set of roles and responsibilities which can be customized for a particular project. This should cover all personnel resources required, both full and part time.

Types of Organizations

Functional organizationPure Project organizationMatrix organizationMixed organization

Functional organization

The end of the project organization spectrum is the functional project. Its theme is housing the project within a functional division.

In this form of organization, all activities of the enterprise are grouped and divided according to functions like production, marketing, finance and others. Each department is in the charge of a specialist who is called functional manager. The functional manager has a control over the functions in his charge and no matter on those functions found in other part of the organization.

Functional organization structure

Advantages and disadvantages of projects in Functional

organization Advantages Specialization—It ensures a greater division of labour and

enables the concern to take advantage of specialization of functions.

More efficiency—Efficiency of workers is increased as the workers and other have to perform a limited number of operations and they get suggestions and instructions from specialists.

Separation of mental and physical functions—It ensures the separation of mental and physical functions. This ensures better control of the working of the different sections.

Economy—Standardization and specialization in various fields facilitates production on a large-scale resulting in economy in production.

Advantages

Expansion—it offers a greater scope for expansion as compared to line organization. It does not face the problem of limited capabilities of a few line managers. The expert knowledge of the functional managers facilitates better control and supervision in the organization.

coordination is established: all the persons working within a department are specialists of their respective jobs. It makes coordination easier at the departmental level.

Minimal duplication of efforts:

In this type of organization unnecessary duplication of efforts is eliminated. For example, the function of finance is only carried out by the finance department. There is no need to establish two or more departments. It makes it possible to utilize the human and other resources effectively.

Disadvantages

(1) confusion—the operation of functional organization is too complicated. Workers are supervised by a number of bosses. This results overlapping of authority and thus creates confusion in the organization.

(2) lack of coordination—under this, the work is divided into parts and sub-parts. It poses difficulties in coordinating the functioning of different parts. Thus it is difficult to take quick decisions.

(3) difficulty in fixing responsibility—because of multiple authority, responsibility for poor performance cannot be fixed easily on a particular person.

(4) conflict-supervisory staff of equal rank may not always agree on certain issues. Therefore, there may be frequent conflicts which may lead to non-performance.

5) hurdle in complete development: this system is a hurdle in the way of the complete development of the employees. Each employee specializes only in a small part of the whole job.

(6) ignorance of organizational objectives: each departmental head works according to his sweet will. They always give more importance to their departmental objectives. Hence, overall organizational objectives suffer. For example, to establish its image, the production department may produce quality product ignoring the fact that market trend favors accepting medium quality product.

Pure Project Organization

A pure project is where a self-contained team works full time on the project.

A "pure project organization" is a model of a business where project managers have total control over the project they oversee. Central control at the managerial level must be weak for this to occur. Put simply, a "pure project organization" might also be termed a "task force." In the case of a "pure project," the leader of this task force would have to be given total authority for a limited period to solve a particular problem. In business, it is a great challenge to find an example of such purity.

Pure Project Organization Structure

Advantages and disadvantages of the pure project organization.

Advantages

The project manager has full line authority over the project

All members of the project work force are directly responsible to the PM.

When the project is removed from the functional division, the lines of communication are shortened.

When there are several successive projects of a similar kind, the pure project organization can manipulate a more or less permanent cadre of experts who develop considerable skill in specific technologies.

The project team that has a strong and separate identity of its own tends to develop a high level of commitment from its members.

Disadvantages

1. When the parent organization takes on several projects, it is common for each on to be fully staffed.

2. In fact, the needs to ensure access to technical knowledge and skills result in an attempt by the Pm to stockpile equipment and technical assistance in order to certain that it will be available when needed.

3. Though individuals Engaged with project develop considerable depth in the technology of the project, they tend to fall behind in other areas of their technical expertise

4. Pure project group seems to foster inconsistency in the way in which policies and procedures are carried out.

5. In pure project organizations, the project takes on a life of its own.

6. Another symptoms of projectitis is the worry about life after the project ends.

The Matrix Organization

An organizational structure that facilitates the horizontal flow of skills and information. It is used mainly in the management of large projects or

product development processes, drawing employees from different

functional disciplines for assignment to a team without removing them from their respective positions.

Better coordination and control: - This structure is very much suitable to coordinate and control the functional activities and project activities. Project manager has got responsibility to establish better coordination and control system in organization. Functional authority flows downwards and project authority flows horizontally which enables to establish better control and coordination.

  Adaptable to dynamic environment: - It is hybrid type of organizational

structure which can easily adjust with changing environment at business world. The project managers have functional independently and they can get quickly feedback with information related with project. Along with project mange, employees from different functional area are specialists and adjustment does not become problematic.

  Effective utilization of resources: - Project structure makes very much

effective utilization of resources available. The whole staff along with project manager is specialists in various areas. And has to make maximum utilization of resources. They know better hoe to utilize project capacity and time, how to utilize human and financial resources they know better.

Advantages and disadvantages of the Matrix project organization

Advantages

Advantages Particular management: - In this type of organizational structure people work

in project as a team. They participate in decision making and problem solving activity. They make joint team effort. They have authority to carry out day to day activity. Frequent sharing of ideas and opinion with project manager is common.

 

Sufficient time for top management: - It encourages delegation of authority to project managers. Project managers are responsible for operation of the project. They have authority to take decision about day to day activity of project. Employee working in project will also have sufficient authority. Hence, top management will have sufficient time to think about policy and strategies.

Excellence in inter disciplinary specialization: - In matrix organizational structure experts and specialists from various functional areas are combined together and quality performance becomes possible. All experts from various disciplinary or functional areas interact with each other and they make excellent specialization.

Development of team work: - Team work is facilitating project organization or matrix organization itself is team work. Employees from various functional areas work under the spirit of team and make the project successful. Team effort is made.

Disadvantages

Violation of unity of command: - They get command from two superior functional or departmental manager and project manager. He or she has to report superior at a time project manager and functional manager. He/she will be in confusion. Unity of command hence is violated.

Costly structure: - Matrix organizational structure involves huge overhead cost. There will be much paper work and information collection that involves heavy cost. Most of the worker or employees are specialist and they are given high remuneration and facilities and amount is given to project workers in many cases as incentives.

Problem of overspecialization: - Matrix organizational structure create problem of over specialization in some situations. Specialist from both functional project works gather to show many complex problems of the organization. As many experts gather to solve problems they waste valuable time in supporting their own ideas and sometimes problems remains unsolved. It becomes like the famous saying “Too many cooks spoils the food”.

Disadvantages

Difficult to balance: - There will be two types of specialists functional and project specialist. And, to make a balance between these two specialist is a difficult task. Therefore, high level of interpersonal skill or specialists is required to balance these two types of experts and to maintain balance between project authority and functional authority is also difficult task.

 Feeling of insecurity: - Those employees who are specially appointed for the projects they feel a sense of insecurity after the completion of the project. This may cause project completion delay. Loyalty and commitment towards project may decrease.

Lack of white coordination: - In a matrix organization there will be a problem of maintaining effective coordination among project workers, functional workers and among the workers from various functional areas. Project manager have to make a high level of exercise to maintain effective coordination in the organization.

Lack of commitment: - In a matrix organization, there will be lack of commitment among employees towards project. No one will be responsible and loyal to the completion of the project. Due to the lack of commitment project completion delays, project cost increases. Unless and until the project is completed. They will get good amount with salary and benefit, this also decreases their commitment.

 

Conclusion

After all the previously cited, we can put the question what model to choose. In other words, the question is how we should establish connection between the enterprise and its business which exists in a definite time having the characteristic of continuity, on the one side, and the project having the characteristic that it is unique and temporary. In any case, it is necessary to consider the nature of the potential project, characteristics of different projects, advantages and disadvantages of every organizational form, different preferences in the culture of the home organization, as well as to reach the best possible compromise. It is generally considered that the functional model would be the best choice for projects where the major focus is oriented on the qualitative technology application, not on cost minimization, making determined plans or fast response to changes.

All credit goes to Mohammad Irfan Ali Ayon ID no :120103046 BGC Trust University Bangladesh Dept.: BBA(HRM) Semester :7th Date:05.07.2015 fb ID: irfan.ayon.9@facebook.com