Project Organizational
Structure
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
What is Organizational Structure?
An organizational structure is a system that outlines
how activities are directed in order to achieve the
goals of an organization. These activities can include
roles, rules, and responsibilities (RRR).
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
What is Project Organizational Structure?
The project organizational structure is an essential
configuration for determining the hierarchy of
people, their function, workflow and reporting
system.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Types of project organizational structures
1.Pure Project Organization
2.Functional organizational structure
3.Matrix organizational structure
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Different Project Programs of L&T Infrastructure Development Projects Limited
1.Infrastructure
2.Construction
3.Power
4.Heavy Engineering
5.Defence
6.Defence Ship building
7.Hydrocarbon
8.Information Technology
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Pure Project Organization
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Limitations of Pure Project Organizations
1.One challenge that pure project organizations face is planning the smooth transition of
resources from one project to another
2.People assigned to the project tend to form strong attachments to it and a disease called
“projectitis” is developed.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Functional Project Organizations
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Examples of Projects carried out in Functional Project
Organization format
1.Implementation of Industry 4.0 practices in shop floor
2.Implementation of new corporate IT application.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Advantages
• The functional project has immediate, direct, and complete contact with the most
important technologies it may need, and it has in‐depth access
• Because the project is housed in the department that will benefit from the project, the
department’s leadership team has more leeway in determining the priority of the
project relative to other departmental work and is subjected less to the concerns and
priorities of other departments.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Challenges
• Communication gap across functional departments
• Communications across functional department boundaries are rarely as
simple as most firms think they are.
• When technological assistance is needed from another department, it may
or may not be forthcoming on a timely basis.
• Technological depth is certainly present, but technological breadth is
missing.
• In most functionally organized projects, the lines of communication to
people or units outside the functional department are slow and tortuous.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Matrix organizational structure
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Advantages
• If the project is likely to require complex technical problem solving, it
will probably have the appropriate technical specialists assigned to it.
• Flexibility in the way it can interface with the parent organization.
• In general, matrix organized projects have the advantages of both pure
and functional projects.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Disadvantages
• The Unity of Command Principle in management theory ,i. e : for
each subordinate, there shall be one, and only one, superior is violated
• In matrix projects, the individual specialist borrowed from a function
has two bosses. Thus, project workers are often faced with conflicting
orders from the PM and the functional manager. The result is
conflicting demands on their time and activities.
• In matrix organizations the PM controls administrative decisions and
the functional heads control technological decisions. This distinction is
simple enough when initiating project. However, during operation , the
partial division of authority and responsibility of PM is complex.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License Pure Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
ROLES OF A PROJECT MANAGER
1.Facilitator
Because projects are often multidisciplinary, the PM (Project Manager) rarely has
technical competence in more than one or two of the several technologies
involved in the project. As a result, the PM is not a competent overseer and thus
has a different role. The PM is a facilitator.
• The PM ensure that those who work on the project have the appropriate knowledge
and resources, including that most precious resource, time, to accomplish their
assigned responsibilities
• Manage the conflict between members of the project team, conflict between the
team and senior managers, conflict with the client and other outsiders
2. Communicator
The PM is responsible to the project team, to senior management, to the client,
and to anyone else who may have a stake in the project’s performance or
outcomes.
ATTRIBUTES OF A PROJECT MANAGER
• A strong technical background
• A hard-nosed manager
• A mature individual
• Someone who is currently available
• Someone in good terms with senior executives
• A person who can make the project team happy
• One who has worked in several different departments
• A person who can walk on the waters
PROJECT STAKEHOLDERS
A stakeholder is an individual, group, or organization that may affect, be
affected by, or perceive itself to be affected by a decision, activity, or outcome
of a project. Project stakeholders may be internal or external to the project,
they may be actively involved, passively involved, or unaware of the project.
Project stakeholders may have a positive or negative impact on the project or
be positively or negatively impacted by the project.
Internal stakeholders:
• Program manager
• Resource manager
• Project management office (PMO)
• Project managers of other projects
• Team members
External stakeholders:
• Customers
• End users
• Suppliers
• Shareholders
• Regulatory bodies
• Competitors
MONITOR STAKEHOLDER ENGAGEMENT
• Monitor Stakeholder Engagement is the process of monitoring project stakeholder
relationships, and tailoring strategies for engaging stakeholders through modification
of engagement strategies and plans.
• The key benefit of this process is that it maintains or increases the efficiency and
effectiveness of stakeholder engagement activities as the project evolves and its
environment changes. This process is performed throughout the project
STAKEHOLDER POWER/INTEREST GRID
HIGH
POWER
LOW
HIGH
LOW
INTEREST
Application
Radiologists 1.Cardiologists
2.Administration
Patients/Families Test Technicians
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Conflict Resolution in
Project Management
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Typical causes of conflict within project-based organizations
1. Conflicts over costs and budgets
2. Ego and personality clashes
3. Differing views, ways of working and internal biases
4. Verbal miscommunication and misunderstandings
5. Lack of trust and respect between team members
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Conflict resolution strategies (Kenneth Thomas and Ralph Kilmann ,1975)
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Competing Strategy
• Approaching a situation assertively and being
unwilling to cooperate is referred to as a
“competing” strategy.
• When a competing strategy is employed, someone
must lose in order for the other to win
• This competing strategy may be appropriate in
situations where the decision must be made
quickly
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Example
There’s a six-story office building under construction with several crews on the job. One
crew member continually ignores safety protocol, skirting steps that could risk his life. The
manager reprimands him in front of everyone and dismisses him. He is behaving in such a
way that could lead to an accident. The safety issue could endanger others and, in the long-
term, the project itself. Though the competing style is often viewed negatively, the decisive
action taken by the manager here can also be seen as positive because it keeps
This work is licensed under a
everyone
Project Management
safe.
Creative Commons Attribution 3.0 Unported License
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Avoiding Strategy
• When the position is not asserted aggressively but the
person is still unwilling to cooperate, there is a conflict
“avoiding” strategy.
• This is a lose‐lose strategy
• An avoiding strategy might be applied when the issue
is not that important to you, or you feel that the
detrimental effects from the conflict outweigh the
benefits of resolving the issue in a desirable way
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Example
On a building site, structural steel plate drill hole placements have changed. Your
team receives updated plans from your system. After weeks, the wrong plates arrive.
The plate manufacturer missed your update. An irate ironworker wants to know why
erroneous plates prevent him from finishing. You say that you updated the system
and delivered the vendor the right information, so you completed your part. You
blame the seller for not reading the update. Typical avoidance.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Creative Commons Attribution 3.0 Unported License (CC-BY).
Project Management
Chapter 1: Project Management: Past and Present
Collaborating Strategy
• When one assertively state his/her position but do so in
a spirit of cooperation ,they are employing a
“collaborating” strategy
• Collaborating strategy can be considered a win‐win
strategy.
• This is the preferred strategy in most situations and
particularly in situations where the needs of both
parties are important
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Example
Consider yourself as earthmover equipment supply contractor who collaborates
with two construction companies. When one company complains that the other has
access to superior equipment, you listen to both sides, determine which company
will benefit from which equipment, and then reassign the equipment so that
everyone is happy and can carry on working effectively.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Accommodating Strategy
• In situations where one do not assert their position and
focus more on cooperating with the other party, they
are employing an “accommodating” strategy.
• Here the situation can be described as I lose, you win.
• Accommodating strategy is employed when one is
wrong or the issue is much more important to the other
person.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Example
A plumbing crew is not scheduled to begin work on a project until the electricians
have completed their work; however, the plumbers have arrived early and the
electricians are still at work, resulting in a scheduling dispute. The plumbers
technically messed up the schedule, but you want to keep a positive relationship
with them, so you give the electricians the day off and let the plumbers continue.
Thus, the task is still completed and your plumbers are satisfied.
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Creative Commons Attribution 3.0 Unported License (CC-BY).
Project Management
Chapter 1: Project Management: Past and Present
Compromising Strategy
• When both parties are willing to adjust their positions
and reach a mutually agreed-upon solution, it is
“compromising.”
• In these cases, nobody wins and nobody loses.
• Arrived at a solution that you and the other party can
live with but are not particularly happy about.
• One might employ a compromising strategy when the
potential benefits of trying to develop a win‐win
solution are exceeded by the costs
This work is licensed under a
Creative Commons Attribution 3.0 Unported License
Project Management
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
Example
Consider that your construction project has fallen behind schedule. You wish to
request a two-week extension from the client, while your companion wishes to
request that the crew work longer hours, seven days per week. You consent to
requesting a one-week extension and requesting that the crew work extended
hours six days per week. Both parties have reached a compromise, and the
This work is licensed under a Project Management
conflict is swiftly resolved.
Creative Commons Attribution 3.0 Unported License
Creative Commons Attribution 3.0 Unported License (CC-BY). Chapter 1: Project Management: Past and Present
