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Project Organizational Structure

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What is organization?

As a verb, organizing is to unite different people to

finish a task that cant be done by single person.

As a noun, organization includes people and related

resources, as well as their relations with each other.

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Concept of organization

Organization: a consciously formed structure of

principalship and posts

[U.S.]Harold Koontz

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Why do we need organization

4

objective

restriction commissionorganization

staff

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Identify objective

Identify activities

Build institutions

Recruit staff

Achieve

goal

implementation

responsibility

delegation

Divide levels

Set working

system

objective

task

institution

staff

Check and feedback

organization

No

Yes

Design of project organization

5

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Objective oriented

Stability and adaptability

Unified direction

Job division

Proper management

Centralization and

decentralization of power

Power-responsibility balance

Effective

equilibrium

Overall

Principles for

project

organization

Principles for project organization design

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Types of Organizational Structure

Functional type

Project type

Matrix type

Weak matrix

Balanced matrix

Strong Matrix

Complex matrix

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Functional type

President

Functional DepartmentManager

Staff

Staff

FunctionalDepartment Manager

FunctionalDepartment Manager

project

coordination

Staff in black blocks refer to those involved in project activitiesStaff

Staff

Staff

Staff

Staff

Staff

Staff

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Improve the quality of professional command

Greater flexibility in the use of staff.

Professionals from the same sector can share knowledge and

experience.

Advantages of functional type

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Focus on the functions of the department; place the department

interests higher than project objectives.

Functional department has its own day-to-day work. The interests of

project and the customers are often not given priority.

Project manager only plays a coordinating role and does not have

enough power to control the progress of the project.

Disadvantages of functional type

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President

Project Manager

Staff

Project Manager

Staff

Project Manager

Staff

Project

coordination

Staff

Staff in black blocks refer to those involved inproject activities)

Staff

Staff

Staff

Staff

Staff

Project type organization

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Project manager takes full charge of the project, who enjoys themaximum autonomy and can make full use of all the resources.

Project team members can clearly understand and focus on the project

objectives. Team spirit can be fully tapped.

The concentration of power speeds up decision-making process. The

team can make faster response to customer demand or high-levelintention.

Simple structure, easy to operate, more effective in progress, cost and

quality control.

Advantages of project type

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Since each project would bring together a large number of professionals, it is

not suitable for small businesses.

As the project focuses are different in various stages, team members dont

have equal work loads in different stages, which may on the one hand affect

staff's enthusiasm and on the other hand result in a waste of talents.

This structure is not conducive to the external communication. Equipment and

personnel can not be shared between different projects and it is difficult to

share knowledge and experiences.

Members of the project dont have sense of continuity and security.

Example: Organizing committee of Olympic Games

Disadvantages of project type

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Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

President

Functional Dep.

Manager

Functional Dep.Manager

Functional Dep.Manager

Project

coordinati

on

Staff in black blocks refer to thoseinvolved in project activities

Weak matrix

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Balanced matrix

President

Functional Dep.manager

Project

manager

Staff

Functional Dep.manager

Staff

Staff

Functional Dep.manager

Staff

Staff

Staff

Staff

Staff

Projectcoordination

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Strong Matrix

President

Functional Dep.

manager

Staff

Functional Dep.

manager

Staff

Staff

General Project

manager

Project

manager

Project

manager

Project

manager

Project

coordinati

on

staff

staff in black blocks refer to thoseinvolved in project activities

Staff

Staff

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Project Manager is responsible for the administrative functions and

department manager is responsible for the technical aspects of the

project, which can develop their own strengths.

Minimize duplication of resources and reduce redundant staff.

Project members can go back to function departments after the

completion of the project. They do not have to worry about dismission.

Advantages of matrix type

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Each project member has two leaders. Responsibilities are unclear.

If several projects share resources, it would lead to strife between the

project managers.

Disadvantages of matr ix type

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Influence of different organization struc ture to Project

organization form

Project features

Functionaltype

matrix type

Project typeWeak matrix Balanced

matrixStrongmatrix

Authority of project manager low or no limited Low to medium Medium tohigh

Very high, evenfull authority

Participation of full-time staffin project implementation andorganization

Almost zero 025% 1560% 5095% 85100%

Role of project manager Part time Part time Full time Full time Full time

Titles commonly used forproject manager

Projectcoordinator

Projectresponsibleperson

Projectcoordinator

Projectresponsibleperson

Project manager

Project director

Projectmanager

Planningmanager

Project manager

Planningmanager

Project Administrativepersonnel

Part time Part time Part time Full time Full time