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Be 2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

Project Organisation

Dr. Sepani Senaratne

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Project Management The overview and organisation needed to

ensure that a project is completed on time,within budget and that it works.

The means, techniques, and concepts usedto run a project and achieve its objectives

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

Why Manage by Projects? Because of their

speed and market responsiveness for

successful competition ability to utilise a wide range of specialised

knowledge

ability to handle organisation change

processes ability to control large-scale complex

activities

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Project Initiation Aproject can initiated,

To get a product or service done

To support a creative idea

To develop a new technology

To undertake a certain repair

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

Project Organisation Forms Three major types

1 - Within functional organisation

2 - Pure project organisation

3 - Matrix organisation

Each differ in the way they connect tothe parent organisation

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

1- Functional Organisation Project becomes a part of the functional

division

The project is assigned to the functionalunit thathas the most interest inensuring its success or can be most

helpful in implementing it

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1-Example

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

1-Advantages Maximum flexibility in the use of staff

People can be switched back and forth

between different projects within thefunctional unit

Full access to technical knowledge residedwithin the functional unit

Functional unit serves as the base ofcontinuity and consistency in policies,practices and procedures

Contains the normal path of individualadvancement

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

1-Disadvantages Project is not the main focus as functional

unithas its own work to do, thus less

motivation Not problem-oriented rather function-oriented

No individual is given full responsibility for the

project Poor and slow response to client needs

Does not facilitate a holistic approach toproject designed as a totality

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2- Example

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

2-Disadvantages In case of several projects, can lead to

duplication of tasks

Foster inconsistency in terms of policiesand procedures

With strong attachments, bitter

competition and political infighting canexist

Worry about life after the project

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

3-Matrix Organisation Aproject organisation overlaid on the

functional divisions of the parent firm

In this, project manager controls whenand whathis team will do, while thefunctional managers control who will be

assigned to the project and whattechnology will be used.

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3-Example

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

3-Advantages Project manager takes the responsibility for

managing the project

The projecthas reasonable access to knowledgeresided in all functional divisions

Less anxiety after project completion

Flexible and rapid response to both client and

parent firm Access to admin. units, therefore,consistency in

policies, practices and procedures

Allows better company-wide balance of

resources in case of several parallel projects

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

3-Disadvantages Since the power is balanced between project

manager and the functional manager, doubts

can exist about who is in-charge of what Generally PM takes administrative control while

Functional manager takes technological control

Violate unity of command

PMs may focus on individual projects ratherthan the total system that optimisesorganisation-wide goals

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BE2306 Lecture Series - 2008, Department of Building Economics, University of Moratuwa

Mixed organisations Sometimes, pure functional and pure

project organisations may coexist in afirm.

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Choosing an organisational form Functional form

Where major focus must be on in-depth application of atechnology (function)

Pure project form

For managing complex, innovative non-routine tasks in anuncertain, changing environment

Matrix form

When the project requires inputs of several functional areasand involves reasonable complicated technology