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Organisational Structures

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GSOE9820 – Engineering Project Management
Corey Martin

Week 4
Projects and Organisational structures

Course Roadmap

Organisational structure
“An organisational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims”.

Reference: Pugh, D. S., ed. (1990).Organization Theory: Selected Readings. Harmondsworth: Penguin

To improve project success!

Sources:

http://www.pmi.org/
CHAOS summary report 2013

Common types of project management structures • Functional

• Dedicated Project Teams

• Matrix
Reference: Gray, C & Larson, E, Project Management, 5th Ed. McGraw-Hill

Functional Organisation of projects
• Different segments of the project are delegated to respective functional units.
• Coordination is maintained through normal management channels. • Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.

Functional
1.
2.
3.
4.

Advantages
No/little org. change
Flexibility in use of staff
In-Depth Expertise
Easy Post-Project Transition

1.
2.
3.
4.

Disadvantages
Lack of Focus for project
Poor Integration across org.
Typically slower to complete
Lack of Ownership

Dedicated Project Teams
• Teams operate as separate units under the leadership of a full-time project manager.
• In a projectised organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.

Dedicated project teams
1.
2.
3.
4.

Advantages
Simple – independent from functional organisation
Fast – Full attention
Cohesive - motivated
Cross-functional integration

1.
2.
3.
4.

Disadvantages
Expensive – additional staff
Internal strife –

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