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Project Organization
Project organization
It refers to the division of labour , grouping of
Marketing
departme
nt
Project -A
Project-B
Productio
n
departme
nt
Project-C
HR
departme
nt
Finance
departme
nt
Production
department
Marketing
department
HR
department
Design
Project -A
Construction
Finance
administratio
n
.
A project manager has full authority to make
decisions in the project.
Quick decision making. unity of command.
Communication can be vertical, diagonal, horizontal
etc.
Focus on project objectives.
Separate staffs are needed .
Lack of job security for project s employee
Suitable for big projects
Matrix organization
structure
General
manager
Marketing
dept
HR dept
Production
dept
Finance
dept
Projectcoordinatio
n
Project A
Project B
Project -C
Matrix organization
structure
It is a combination of functional and pure project organization
structure.
The project manager leads the project .
The project manager should coordinate with the functional
managers for human , financial and physical resources.
All functional departments should support to all the projects for
concerned functions.
cross functional team is formed to perform project task.
Facilitates efficient use of resources.
Ensure job security
Duplication of effort , delay and conflict due to dual boss system
Complex and difficult to manage .
Lacking chain of command and unity of direction
Project authority
Authority is a legal power to command and control
Legal
Real
authority
authority
Project
charter
authority
Legal authority
The authority provided by the existing law to
Real authority
It is the authority grasped by the leader from
Linear responsibility
chart (LRC)
Linear responsibility chart is a tool which identifies the
LRC
Responsibilty
Establish
department
objective
Project planning
Integration of
project
Project control
Project
budgeting
Coordination in
between project
and functional
manger
General
manager
Functional
manager
Project
manager