Organisational Structure 13.1Understand the basic concepts of organisational structure.
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Sheffield Hallam University
MSc Construction Management/Project Management
MODULE TITLE: PROJECT MANAGEMENT PRACTICE
MODULE CODE: 26-7040-00S
SEMESTER 1 ACADEMIC SESSION: 2013/2014
SUBJECT: TEMPORARY ORGANISATIONAL STRUCTURE
BY: AHAMED ZIYATH SULAIMA LEBBE (ID: 22049846)
WORD COUNT 2500 3000 WORDS
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Contents
Introduction ...................................................................................................................................................... 3
1. Orgnisational Structure ....................................................................................................................... 4
1.1 Functional Orgnisation ............................................................................................................................... 5
1.2 Matrix Organization ..................................................................................................................................... 6
1.3 Projectised Organization ............................................................................................................................ 9
2. Temporary (Project) Organisational Structure?....................................................................... 10
3. Oranisational Perception for Project? .......................................................................................... 11
4. Integration issues? ............................................................................................................................... 12
4.1 People Dimension? .................................................................................................................................... 12
4.2 Process dimension ..................................................................................................................................... 14
4.3 Tools dimension ......................................................................................................................................... 16
4.4 Methodology dimension .......................................................................................................................... 17
4.5 Results and outcomes dimension......................................................................................................... 18
5. Conclusion............................................................................................................................................... 19
6. Reference ................................................................................................................................................ 20
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Introduction
An organizational structure is a formation combined with activities of duty assignment,
management and control. It is a business strategy to achieve aims of organisation. This is also a
transparent glass the personnel see through their organisation and its environment.
An organization can be structured in many different ways, depending on their objectives. The
structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, workgroup and
individual.
Where: project (temporary) organisation structure (Enterprise project structure) is a
hierarchy that enables the coordination and application of project events. Its core motive is to
make an environment that nurtures interfaces and communication within project team
members to identify their roles and responsibilities. Project organisation structure is
fundamental route where the individuals find their ways of supervision and commination. It is a
unique structure, which may be changed/rearranged depending on the nature of the projects, is
constrained with the project management
This report will critically discuss integration issues within project organisation structure and
permanent organisation structure in terms of integration change management and give solution
to the problem on how to solve, face or get rid of the problems occurred during this process.
http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking) -
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1. Orgnisational StructureHow to direct organisation to better change and innovation is gained through a clear
understanding of organizational structure. Most of the writers agree with the concept and say
that the more you understand about the organisation is the more you build up the ultimate
business goals towards success path. In that case, the structure gives primary/fundamental
attention to develop business strategy.
According to PMBOK (2013) Fifth Edition, the organizational structure is an enterprise
environmental factor which can affect the availability of resources and influence how the
projects are conducted. Organizational structures range from functional to projectised, with
variety of matrix structures. (See the table 1 below)
Table 1: how organisation influences on projects
Organization
StructureFunctional
Matrix
ProjectisedWeak
Matrix
Balanced
Matrix
Strong
Matrix
Project Managers
Authority
Little or
NoneLimited
Low to
Moderate
Moderate or
High
High to
Almost Total
Resource
Availability
Little or
NoneLimited
Low to
Moderate
Moderate or
High
High to
Almost Total
Who control the
project budget
Functional
Manager
Functional
ManagerMixed
Project
Manager
Project
Manager
Project Managers
RolePart-time Part-time Full-time Full-time Full-time
Project Management
Administrative StaffPart-time Part-time Full-time Full-time Full-time
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Project Coordination
1.1 Functional Organisation
It is a hierarchy where each employee has one clear superior. Employees are grouped by area
like production, marketing, engineering, and accounting at the top level. Areas may be further
subdivided into functional organisation like civil, mechanical and electrical engineering. Each
department in functional organisation carry out its project independent of other departments.
Functional Organization
Advantages and Disadvantages of Functional Organiation
Advantages Disadvantages
Specialisation: Each department focuses on its
own work
Closed communication could lead to lack of focus
Accountability : Someone is responsible for
each department
Departments can become resistant to change
Clarity : Everyone knows their own and others
roles within the department
Coordination may take too long
Job security is guaranteed PM has no authority.
CheifExecutive
FuntionalManager
Staff
Staff`
Staff
FuntionalManager
Staff
Staff
Staff
FuntionalManager
Staff
Staff
Staff
Boxes are representing staff who are engaged in project activities
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ProjectCoo
rdination
1.2 Matrix OrganizationIn Matrix organisation, there can be more reporting lines for to manage individuals: it generally
manages cross practice, business group and the traditional vertical business units: always silos
of function and geography. This form is an attempt to maximize the strengths and weaknesses of
both the functional and project forms. There are three types in matrix:
1. Weak Matrix: it maintains many of the features of functional organisation. The project
manager role is more of coordinator expediter than that of project manager.
2. Strong Matrix: it has many of the features of projectised organization. The project
manager has full authority
3. Balanced Matrix: it recognises the need for a project manager. The project manager does
not have full authority.
Weak Matrix Organization
In a weak matrix, functional manager has power. In this form of organization, the project
expeditor acts primarily as a staff assistant and communications coordinator. The expeditor has
no personally decision making rights. Simply to say The functional managers have all the Power
in a weak matrix, and project managers act as project organizers with little or no authority.
CheifExecutive
FuntionalManager
Staff
Staff`
Staff
FuntionalManager
Staff
Staff
Staff
FuntionalManager
Staff
Staff
Staff
Boxes are representing staff who are engaged in project activities
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ProjectCoordination
ProjectCoord
ination
Strong Matrix Organization
Here, project managers have power. They are able to force the functional managers to give them
their best resources. The project managers can then negotiate these resources among
themselves without functional managers. The project managers have their own boss, in effect a
functional manager, who is the manager of project managers.Balanced Matrix Organization
CheifExecutive
FuntionalManager
Staff
Staff`
Staff
Manager of ProjectManagers
ProjectManager
ProjectManager
ProjectManager
FuntionalManager
Staff
Staff
Staff
FuntionalManager
Staff
Staff
Staff
CheifExecutive
FuntionalManager
Staff
ProjectManager
Staff
FuntionalManager
Staff
Staff
Staff
FuntionalManager
Staff
Staff
Staff
Boxes are representing staff who are engaged in project activities
Boxes are representing staff who are engaged in project activities
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This form of organization is alike the Weak Matrix organization. But that the coordinator has
some authority to make decisions and reports to higher level manager.
Advantages and Disadvantages of Matrix Organiation
Advantages Disadvantages
Better coordination and control Violation of unity of command
Adaptable to dynamic environment Costly structure
Effective utilization of resources Problem of overspecialization
Particular managementDifficult to balance project authority between
project and functional authority.
Sufficient time for top management Employees have no job security
Excellence in inter disciplinary specialization
Development of team work
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1.3 Projectised OrganizationIn the projectised organisation, team members are often co-located: resources are involved in
project work and the project managers have a strong independent authority. It is combined with
organizational units called departments. These groups may report directly to the project
manager and provide support services to various projects. Simply to say that all the organisation
is run by projects. The Project Manager has total control of projects. Personnel are assigned and
report to a Project Manager.
Projectised Organization
Advantages and Disadvantages of Projectised Organiation
Advantages Disadvantages
Project Manager has the power and full
authority over the projects resources
No career path in areas of specialty
Communication are easier and faster No job security
Loyalty to projects Employees may be exploited
High level of integration Less employees interest in work at final stage
of the projectQuicker decision making
CheifExecutive
ProjectManager
Staff
Staff
Staff
ProjectManager
Staff
Staff
Staff
ProjectManager
Staff
Staff
Staff
Boxes are representing staff who are engaged in project activities
Project Coordination
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2. Temporary (Project) Organisational Structure?It is a part of organisational units where project team memebrs are assigned temporarily to
achieve a spcific goals or aims. The structure paves the way for employees to understand their
scope and responsiblities. It allows them to get the fundemental idiology and hierachy of the
project.
The project structure is a unique characteristic: it may vary or change depending on the nature
of project and client requirements. The organisational team:
Client:Private
EngineeringOffice
ProjectManager:
TarekMohamad
ResidenceEngineer:
AbdulHassen
Architectur
alEngineer:
Omar Amin
StructuralEngineer:
Edvin Karo
ElectricalEngineer:Al Harti
PlanningEngineer:AhamedZiyath
DocumentController:Mahmoud
Salah
Mechanical
Engineer:Mahmoud
Ezz
Civil
Engineer:ErwinYanoc
QS.
Engineer:Kalith
Ahamed
Below show is an example of project organisational structure
Client: PrivateEngineering Office
Consultant: AranConsulting Engineers
Design Consultant:EHAF Consulting
Engineers
Design:Qatar
DesignConsodium
Main Contractor:Generic Engineering
Technology
SubContactor:Mechanical
SubContactor:Electrical
SubContactor:
UtilitiesSuppliers
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3. Organisational Concept for Project?There are contexts that an organization commence for the projects. They are as follows:
Projects are unique units, where project organisational structure is set up only to run the
project.
Project ownership can be shareholders or other stakeholders in the undertaking.
A project can be carried out inside the context of a larger organization, leadership team
within the organization forms the sponsoring group.
The project is the business strategy for passing the determined sponsoring group.
In a large organization, there can be more projects.
An organisation forms portfolios and/or programmes in service area or products in a
definite business objective.
In an organization the business interest are managed as a portfolio or programme where
the project sponsor is determined.
Figure below shows the relationship between projects in the context of other management
vehicles commonly found in organizations.
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4. Integration Issues?Most probably, the integration issues (linked with integration processes) in project organisation
structure occurs during the change management processes. Elements of successful projects and
initiatives set the stage for the united value intention. While the disciplines are distinct in their
focus and approach, in action the technical side and people side of change are often interacting
and intermingling. Here identified are five dimensions of integration issues to be discussed in
terms of change management:
1. People dimension
2. Process dimension
3. Tools dimension
4. Methodologies dimension
5. Results and outcomes
4.1People Dimension?The people dimension of integration explains the structure of change management and project
management work and how the relationship is architected. Change management resource can
either sit on the project team or support the project team externally. (Below show example).
There is not a "right" or "wrong" decision around team structure, but there are certainly
advantages and challenges of each model. When the change management resource is part of the
project team, there is a higher level of project knowledge and responsibilities can be more easily
integrated. When the change management resource supports the project team externally, the
resource tends to have higher levels of access to the sponsor, more objectivity and an exclusivefocus on change management.
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The decision of which "people dimension" integration approach is likely based on the nature of
the project and the norms in the organization. Whichever approach is taken, it is important to
effectively define roles, responsibilities and relationships for the project management resources
and change management resources.
To prevent the issues in integration along the people dimension:
Evaluate the nature of the change and the organization to decide on the best architecture
for the relationship between project resources and change management resources.
Clearly define roles, responsibilities and relationships - by clearly establishing who will
be doing what, you create better expectations and foster a better working relationship.
Be present and involved - as the change management resource on the project, be sure
that you are engaged and involved with project activities so change management has a
presence.
Ensure sponsorship: regardless of the decision on structure, adequate sponsorship for
change management gives credibility and support for the change management work and
focus.
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4.2Process dimensionThe process dimension of integration addresses how the activities of project management and
the activities of change management are brought together during the lifecycle of the project or
initiative. Integration at the process dimension enables these two complementary disciplines to
be more effective in sequencing work, aligning the timing of activities and exchanging
information that is crucial to project success. The image below shows, at a high level, how
change management and project management activities can be integrated.
Integration of activities is enhanced by several factors:
Beginning change management activities early in the project lifecycle, at the project
initiation or project planning phases. The earlier change management is launched, the
more effective the sequencing, aligning and exchanging of information will be.
Using a process-driven approach with distinct deliverables for change management. If the
change management approach is not process-driven with specific deliverables and
milestones, it is very difficult to integrate with project management from both a practical
and a credibility perspective.
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To prevent the issues in integration along the process dimension:
Be structured in approach: the more difficult, process-oriented and milestone-driven the
change management approach is. The more easily it can be integrated with project
management activities.
Create concrete deliverables: as the change management resource, the more you can
capture change management work in concrete deliverables, the more effectively you can
integrate your work into the existing project team work.
Actively identify key points in time for integrating activities: throughout the project
lifecycle, there are times where integration of activities is more critical and makes more
sense. Some of these include: risk identification activities, solution design activities,
project announcement activities, system testing activities. In each instance, you can be
more complete and holistic by integrating these activities to ensure that both the
technical side and people side perspectives are addressed.
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4.3Tools dimensionSome tools cannot be integrated as they exist in only one discipline or the other. However, there
are numerous tools that are used by both project management and change management
practitioners: the communication plan and risk assessment are two tools commonly used in both
disciplines. Integration on a tool dimension means creating a single communication plan that
includes both technical side and people side messages.
The table below includes a list of some of the tools that have been integrated:
To prevent the issues in integration along the tool dimension:
Identify specific tools that make sense for integration: some of the more common might
include stakeholder analysis, risk identification and communication plans (all of these are
common artifacts of project management and can easily be adapted to include a change
management perspective).
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Work with what the project team has already done: there is no sense in alienating a
project team by telling them that their communication plan is a "telling plan" and not a
communication plan. Instead, your best approach is to say "that is great that you already
have a communication plan, now let me see what I can add from a change management
perspective."
Ensure ownership is clear: one risk of integrating at the tool dimension is that each may
inadvertently give up accountability once both project management and change
management are involved. Clarify early on who will still maintain and own the tool even
when both perspectives are included.
4.4Methodology dimensionWhile integration along the people, process and tool dimensions occurs at the project level,
integration of methodologies occurs at the organizational level. This dimension of integration
moves one step up - creating a common and standard approach to project delivery that
incorporates the organization's project management methodology and the organization's change
management methodology.
Integration of methodologies is not trivial and involves decisions about when and how the
methodologies interact and when they diverge. As with each dimension of integration, there are
advantages and challenges to consider when integrating methodologies. One of the biggest
challenges is that change management work becomes too governed by project milestones and
timing, taking away some of the change management work stream's needed ability to react to
and adjust to how people are experiencing the change.
An integrated methodology is often part of a greater strategy for institutionalizing change
management.
To prevent the issues in integration along the methodology dimension:
Select a common change management methodology: before you can begin to integrate at
a methodology level, you will need to select an organizational standard change
management methodology.
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Be mindful of the tradeoffs: when you integrate at the methodology dimension, there are
some risks related to removing the responsive nature of change management. Take these
risks into consideration and design your integrated methodology appropriately.
Manage the change of introducing an integrated methodology: many project managers in
your organization may not be familiar or experienced with applying change management.
They have also been successful with, and are accustomed to, using their current project
management methodology. When you introduce a new integrated methodology, be sure
to apply change management to the change "applying the new integrated methodology."
4.5Results and outcomes dimensionIntegration on the results and outcomes dimension stems from the notion that change
management and project management are in fact complementary disciplines with a common
objective. The phrase "common objective" means that, in the end, both project management and
change management are approaches used to improve the performance of the organization by
helping it reach a desired future state resulting from a project or initiative. Rather than
integration, this dimension is more focused on reaching a shared view of what success means
and how each of the disciplines contribute to project success.
While results and outcomes are the final dimension presented here, this is in many ways where
integration actually begins. When we can successfully integrate our view and definition of what
we are trying to achieve, the rest of the integration elements begin to fall into place. Rather than
an "us" versus "them" mentality, integration on the results and outcomes dimension drives a
"we" approach.
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5. ConclusionIn a simple way, we can say the forming of project organization structure (POS) is the prominent
strategy in business which is combined with project integration processes in the project
lifecycle. On the other hand, it can be described as forming a project team which, a formal
communication channel for supervision, pave the way for employees to understand clearly their
roles and responsibilities.
Even though there are many issues in other project integration processes, which are given above
in the chart, the negative impacts from integration issues in change management (change
control) are dangerous which may lead the project to over budget, time and bad quality of
product or service.
Furthermore, no-one can deny the integration issues which exist in permanent organizational
structure but the issues are no going to affect more the permanent organization when compared
to POS. For instance, if anyone is dropped or fired out of permanent organization there can be
other one to fulfill all the requirements in place of him: so the change is not going to affect as it is
a continuation process.
But, in POS if one (Example, one Engineer) is dropped or fired in the middle of the project it is
hard to complete the project in time because it take time for the new comer to understand the
concept of the project: so the duration he takes to know about the project may affect the project
completion which may cause negative impact on time, budget and quality.
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Construction Industry And The Nature Of Its Production. Michigan USA.
4. Alan, Griffith and Paul, Watson (2004). Construction Management Principles and Practice
New York, Palgrave Macmillan.
5. The Chartered Institute of Building (2002). Code of Practice for Project Management for
Construction and Development. Third Edition. Oxford, Blackwell Publishing Ltd.
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(2010). Third edition. BS 6079-1:2010.
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