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Chapter 5
BASIC PROJECT
ORGANIZATION STRUCTURES
Basic Project Organization
Small and Medium Projects
Chapter 5 2
Levels of Project
Organization:
1. External or Global Project Organization
- Involves parent departments and
companies in projects.
4
II. Larger Project Organizations
and Internal Structure Forms
• Internal functionalization
• Divisionalization
• The ‘Federal’ organization
• Central and decentralized form of larger
organization
5
Project Organization
External Organization Forms
Chapter 5 6
A. Dedicated Project Team
8
A. Dedicated Project Team
PROS
9
A. Dedicated Project Team
CONS
1. Not a flexible way to use company resources.
2. In a company, more teams, more specialist in
payroll.
3. Difficulty of switching specialists between
projects.
4. Difficult division of labor within functions.
5. Not for several simultaneously handled small
projects
10
B. Task Force Organization
11
B. Task Force Organization
Task force preferred situation:
12
B. Task Force Organization
13
B. Task Force Organization
Requirements for delegates:
14
B. Task Force Organization
Task force preferred situation:
15
B. Task Force Organization
Steps to take:
1. Decide who will lead the force.
2. If no one is available, senior delegate is
chosen from each functional group.
3. (The functional group needs to have work
remaining on the project.)
4. Accommodation (war room) is set up for
delegate use.
5. Force member issues instruction to own
group.
6. Expert project manager oversee the
project.
7. Expert project manager reports to the
owner.
16
C. Matrix Organization
17
C. Matrix Organization
CONDITIONS
• Matrix or project manager is appointed to
manage.
• Functional groups are intact beyond
project life.
• Individuals on project are responsible to
two (2) managers:
a) Parent group functional manager
b) Project manager
• Authority is shared between functional and
project manager. 18
C. Matrix Organization
ROLE OF MANAGERS
19
C. Matrix Organization
ADVANTAGES OF MATRIX CONCEPT
• Permits integration of individuals, groups,
organizational units and companies into a
single organization.
23
D. Hybrid Structures
24
Forms of Hybrid
Structures
1. Single Company
25
Forms of Hybrid
Structures
26
E. Modular Network
Structures
• Used by project oriented
companies and obtains maximum
flexibility.
Chapter 5 30
Advanced Project Management
Chapter 6
Chapter 6 33
FACTORS INFLUENCING THE
ORGANIZATIONAL
STRUCTURE
34
Larger Project
Internal Organization Forms
Chapter 6 35
INTERNAL
ORGANIZATION
Structure of relationships between individuals and groups working on
the project viewed as a separate entity.
Chapter 6 36
Variable Factors
1. Sizes of organizational units.
37
Concepts
1. Internal Functionalism
2. Divisionalization
Chapter 6 39
DIVISIONAL ORGANIZATION
Chapter 6 40
FEDERAL ORGANIZATION
Chapter 6 41
Practical Aspects of Basic
Form in Larger Project Forms in Larger
Projects
1. Centralization versus
decentralization
3. Federal Organization
42
1. Centralization versus
Decentralization
1. Conflicting needs
• Discrete division handled
independently.
• Though handled independently,
integration is still needed.
• Leads to formation of
headquarters.
• Bureaucracy leading to
“Organizational Arthritis.”
45
II. Centrally Controlled
Project Organization
PROBLEMS WITH OVER-CENTRALIZED
CONTROL
48
ACCOUNTABILITY
Chapter 6 49
RESPONSIBILITY
Chapter 6 50
DELEGATION OF
ACCOUNTABILITY
RESPONSIBILITY
1. Delegation of activity to
managers.
51
Consenquences:
4. Establishment of larger
progression structure.
54
Internal Organization Forms
Organization and Project Life Cycle
Chapter 6 55
Stages
1. Conception
2. Definition
3. Design
4. Procurement
5. Execution
6. Commissioning and
handover.
56
Project Organization
Typical Progression
1. Conception
2. Definition
3. Design
4. Execution
57
Project Organization
Typical Progression
1. Conception
2. Definition
3. Design
4. Execution
58
Internal Organization Forms
Management Contracting
Chapter 6 59
Discrete management
roles that use management
contractors
1. Overall management role
integrating all those involved.
a. Pre-contract management,
organization, planning and control
of:
• Conception
• Definition
• The contracting process. 60
Discrete management
roles that use management
contractors
b. Post- contract.
• Decision, approvals, liaison, direction.
• Administration, supervision, technical
monitoring, quality control of:
1. Design and procurement
2. Execution/ construction.
3. Design management role
4. Execution/construction
management role.
61
Discrete management
roles that use management
contractors
5. Execution/construction
management role.
62
Management Contacting
Combined Management Roles
Chapter 6 63
Combined
Management Roles
1. Dual management
2. Tripartite management
3. Management contracting
a) Construction management
b) Design and build
c) Project management
contracting
64
I. Dual Management
4. Contractor’s PM is combined
with client’s team in explicit
partnership.
67
II. Tripartite Management
• Bias
69
III. Management Contracting
1. Construction Management
Contracting
3. Project Management
Contracting
70
III. Management Contracting
1. Construction Management
Contracting
• As a combination. 72
III. Management Contracting
i. Pre-contract
ii. Post contact
iii. Overall project management
73
THANK YOU!
Escalona, Carmela Jane H.
Project Management
AR52FC2
Instructor
Ar. Rolando A. Pinangat