Project Organization and Management

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ARSP 1Written Report

‘‘Project Organization andManagement’’

(Group 3)

Submitted by:

Baa!a" #ion$%&a%%e!gon" 'em$

Padi%%o" oraine Beao%edo" *ir!tie

+rmeneta" Pau% ,i%arce

Submitted to:

Arc’t- Mercedita Ba%ero


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• arvey - evine /01102 mentions that there are three classic organizational

structures available or dealing with pro"ects these are the basic types o

organizations.

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• A- 5e &unctiona% Organization6

▫ It is the traditional organization or perorming ongoing work. Its ocus

is on operational discipline. It is best or routine work and the

maintenance o standards.

• B- 5e Project Organization6

▫ It was designed or isolated kind o work with a strong ocus on the

pro"ect.

• - 5e Matri7 Organization6

▫ #he limitations o both the classic unctional organization and the pure

pro"ect organization, it is understandable that a new type o

organization would emerge. #he matri$ organization, which gained

popularity in the 3451s, o!ers the best o both worlds solution but not

without problems.

• #- 5e ompo!ite Organization6

▫ It is an organization may be created or special pro"ect team to handle

a critical pro"ect. 6ntil now, there has been no (uantitative modeling

used or the evaluation o a pro"ect's communication e7ciency under

di!erent organizational structures

A.FUNCTIONAL ORGANIZATION• A unctional organizational structure is a structure that consists o

activities such as coordination, supervision and task allocation. #he

organizational structure determines how the organization perorms or

operates. #he term organizational structure reers to how the people in

an organization are grouped and to whom they report. ne traditional

way o organizing people is by unction.

• #his organizing o specialization leads to operational e7ciency where

employees become specialists within their own realm o e$pertise. #he


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most typical problem with a unctional organizational structure is

however that communication within the company can be rather rigid,

making the organization slow and in8e$ible.

• As a whole, a unctional organization is best suited as a producer o

standardized goods and services at large volume and low cost.

9oordination and specialization o tasks are centralized in a unctionalstructure, which makes producing a limited amount o products or

services e7cient and predictable. oreover, e7ciencies can urther be

realized as unctional organizations integrate their activities vertically

so that products are sold and distributed (uickly and at low cost.

Memer! o8 a 8unctiona% organization

• %unctional organization /%2:▫

%unctional manager▫ ;ro"ect anagement 7ce /;2 central at other 9ompany.▫ Industrial Saety central at mother company▫ uman


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▫ < in pro"ect.▫ %inance and sales in pro"ect.▫ All reports o employs to the pro"ect manager.

C.MATRIX ORGANIZATION• #he matri$ structure groups employees by both unction and product.

#his structure can combine the best o both separate structures. A

matri$ organization re(uently uses teams o employees to accomplish

work, in order to take advantage o the strengths, as well as make up

or the weaknesses, o unctional and decentralized orms. An e$ample

would be a company that produces two products, >product a> and

>product b>.

• ?eak)%unctional atri$: A pro"ect manager with only limited authority

is assigned to oversee the cross& unctional aspects o the pro"ect. #he

unctional managers maintain control over their resources and pro"ect

areas.

• @alanced)%unctional atri$: A pro"ect manager is assigned to oversee

the pro"ect. ;ower is shared e(ually between the pro"ect manager and

the unctional managers. It brings the best aspects o unctional and

pro"ectized organizations. owever, this is the most di7cult system to

maintain as the sharing o power is a delicate proposition.

• Strong);ro"ect atri$: A pro"ect manager is primarily responsible orthe pro"ect. %unctional managers provide technical e$pertise and

assign resources as needed.

Memer! o8 a Matri7 organization

• #he matri$ organization /2:▫ ;ro"ect manager.▫ ; o the entire pro"ect but give reports to pro"ect manager and the

central ; o the company.▫ Industrial saety in pro"ect give reports to pro"ect manager and the

central to the company▫ < in pro"ect give reports to pro"ect manager and the central to the

company%inance and sales in pro"ect give reports to pro"ect manager and the central

to the company

D.COMPOSITE ORGANIZATION


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• In a composite organization structure, organizations may use any

combination o the above given types o structures.

• Suppose your organization is a unctional organization and it needs a

small building, and your organization has the capability to construct

this building on its own. In this case, your organization will create a

separate small pro"ect team to complete this task.• 9omposite organization is basically a combination o all other

organization types /unctional, pro"ectized, matri$2. #hink o it an

organization where one pro"ect is being done in @alanced atri$ way,

while another is being done in %unctional way. And then they also have

another pro"ect being done as ;ro"ectized way. So in a sense there is no

f$ organization type but a combination o all others.

Memer! o8 a ompo!ite organization

• #he composite organization/92:▫ ;ro"ect manager.▫ ; o the entire pro"ect or another pro"ects but give reports to pro"ect

managers and the central ; o the company.▫ Industrial saety in pro"ect or in more than pro"ect gives reports to

pro"ect manager and the central to the company.▫ < in pro"ect or in more than pro"ect gives reports to pro"ect manager

and the central to the company.▫ %inance and sales in pro"ect or in more than pro"ect give reports to

pro"ect manager and the central to the company

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• 3. ;rinciple o unity o ob"ectives: rganizational goals, departmental goals,

and individual goals must be clearly defned. All goals and ob"ectives must

have uniormity. ?hen there is contradiction among di!erent level o goals

desired goals can't be achieved. #hereore, unity o ob"ectives is necessary

• 0. ;rinciple o specialization: Sound and e!ective organization believes on

organization. #he term specialization is related to work and employees. ?hen

an employee takes special type o knowledge and skill in any area, it is

known as specialization. odern business organization needs the

specialization, skill and knowledge by this desired sector o economy and

thus, e7ciency would be established.


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• . ;rinciple o coordination: In an organization many e(uipment, tools are

used. 9oordination can be obtained by group e!ort that emphasize on unity

o action. #hereore, coordination acilitates in several management concepts

• B. ;rinciple o authority: Authority is the kind o right and power through

which it guides and directs the actions o others so thatthe organizational goals can be achieved. It is also related with decision

making. It is vested in particular position, not to the person because authority

is given by an institution and thereore it is legal. It generally 8ows rom

higher level to lowest level o management. #here should be unbroken line o

authority.

• C. ;rinciple o responsibility: Authentic body o an organization is top level

management, top level management direct the

subordinates. Departmental managers and other personnel take the direction

rom top level management to perorm the task. Authority is necessary to

perorm the work .only authority is not provided to the peoplebut obligation is also provided. So the obligation to perorm the duties and

task is known as responsibility.


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• 33. ;rinciple o communication: 9ommunication is the process o

transormation o inormation rom one person to another o di!erent levels.

It involves the systematic and continuous process o telling, listening and

understanding opinions ideas, eelings, inormation, views etc, in 8ow o

inormation. =!ective communication is important.

• 30. ;rinciple o personal ability: or sound organization, human resources are

important. =mployees must be capable. Able employees can perorm higher.

ainly training and development programs must be encouraged to develop

the skill in the employees.

• 3. ;rinciple o 8e$ibility: organizational structure must be 8e$ible

considering the environmental dynamism. Sometimes, dramatically change

may occur in the organization and in that condition, organization should be

ready to accept the change

•

3B. ;rinciple o simplicity: this principles emphasizes the simplicity oorganizational structure, the structure i organization should be simple with

minimum number o levels do that its member an understand duties and

authorities.

O.SR+/O. O& ORGA./0A/O.A ,AR


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• In this simple chart, the relationship between the 9onstruction anager and

the wner)9lient is obvious. Go matter how large the pro"ect, there must be a

bona fde relationship between the owner and the 9 that shows that the

construction manager was operating in the wner's best interest.

• In your organizational chart, you are re(uired to list the titles and names othe individuals who worked with you on the pro"ects/s2 that you are

submitting as (ualiying or the BF months


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▫ ;arallel processing whereby the pro"ect is divided into independent

parts such that all stages are carried out simultaneously.▫ Staggered processing whereby the stages may be overlapping, such as

the use o phased design&construct procedures or ast track operation.• It should be pointed out that some decomposition may work out better than

others, depending on the circumstances. In any case, the prevalence odecomposition makes the subse(uent integration particularly important. #he

critical issues involved in organization or pro"ect management are:▫ ow many organizations are involvedH▫ ?hat are the relationships among the organizationsH▫ ?hen are the various organizations brought into the pro"ectH

• #here are two basic approaches to organize or pro"ect implementation, even

though many variations may e$ist as a result o di!erent contractual

relationships adopted by the owner and builder. #hese basic approaches are

divided along the ollowing lines:

Separation of orani!ation". Gumerous organizations serve as consultants

or contractors to the owner, with di!erent organizations handling design and

construction unctions. #ypical e$amples which involve di!erent degrees o

separation are:▫ #raditional se(uence o design and construction▫ ;roessional construction management

Interation of orani!ation". A single or "oint venture consisting o a

number o organizations with a single command undertakes both design and

construction unctions. #wo e$tremes may be cited as e$amples:▫ wner&builder operation in which all work will be handled in house by

orce account.▫ #urnkey operation in which all work is contracted to a vendor which is

responsible or delivering the completed pro"ect

• Matri7 Organization e7amp%e


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• A Project9Oriented Organization

• 27amp%e o8 on!truction Management on!u%tant

Organization


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Recommendation! 8or Organizationa% !tructure!

• rganization type in all scales o pro"ects must be well selected beore

starting e$ecution.

▫ During construction phase selected manager and planner must re

ad"ust the organizational relations to have smooth e$ecution according

to their e$perience.

▫ #he best is to choose the suitable planner then the suitable manager

then the suitable organization type and lastly the pro"ect team.

▫

#he proposed tool and 8ow chart will add to the easy choice oorganization type.

Documents

Project Organization and Management