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Divisional organisation
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Divisional Organisation
Matrix Organisation
Project Planning
Projects involving few activities, resources, constraints, and interrelationships can be visualised easily by the human mind and planned
informally. However,when a project crosses a certain threshold level of size
and complexity, informal planning has to be substituted by formal planning.
The need for formal planning is indeed much greater for project work than
for normal operations. Without effective planning , there may be chaos.
Comprehensive project planning covers the following:
Engineering design
Construction
Commissioning
Design
Purchase
of parts
Fabrication
Assembly
40
30
20
10
7
12
16
4
50
Hierarchy of Plans
A large project may consist of thousands (or even tens of thousands) of activities. A
project plan consisting of such a large number of activities cannot be comprehended
and visualised by the human mind. Hence, the global plan of so many activities may
be held in a computer memory and structured on a hierarchical and modular basis in
terms of plans of much smaller size , consisting of, say, 30 to 150 activities.
I Level Plan : A highly summarised plan, the I level plan shows the broad
activities of the project, such as engineering design, contract negotiation,
procurement, construction, and commissioning with very elementary breakdown.
II Level Plan : The activities in the summary plan (at the I level) are shown in
greater detail in the II level plan. This permits a more detailed examination of
various stages of the project, so that inter-relationships can be properly established.
III Level Plan : This is the plan constructed in terms of cost accounts. It is useful
for lower levels of management. It helps them in week to week, or even day to
day, planning and control.
Project Control
Project control involves a regular comparison of performance against targets, a
search for the causes of deviation, and a commitment to check adverse
variances. It serves two major functions: (i) it ensures regular monitoring of
performance, and (ii) it motivates project personnel to strive for achieving
project objectives.
Reasons for Ineffective control:
Authority
Orientation
Motivation
Group functioning
Authority
Since the project manager works largely with professionals and supervisory
personnel, the basis of the authority would be different from that found in
simple superior-subordinate relationships. For exercising leadership and
influence over professional people, he has to explain the logic and rationale
for the project activities; show receptivity to the suggestions made by others;
avoid unilateral imposition of decisions: eschew dogmatic postures; and
search for areas of agreement which can be the basis of acceptable solutions.
His effective authority would stem from his ability to develop a rapport
with the project personnel, his skill in resolving conflicts among various
people working on the project, his professional reputation and stature, his
skills in communication and persuasion, and his ability to act as a buffer
between the technical, engineering, financial, and commercial people involved
in the project.
Orientation
Most of the managers working for a project are usually engineers (or technologists) .
Typically, an engineer:
Motivation
The project manager should bear in mind the following:
In a project setting where hygiene factors are reasonably taken care of,
the principal motivators would be a sense of accomplishment and
professional growth.
Group Functioning
The groups formed in a project setting may be of three types: vertical
groups, horizontal groups and mixed groups. A vertical group consists
of people drawn from different levels in the same department, or
function, or company. A horizontal group consists of people drawn
from different functions, departments, and companies, but occupying
similar hierarchical positions. A mixed group consists of people drawn
from different levels from various functions, departments, and
companies.
Adequate formulation
Advance action
Effective monitoring
Project integration
SUMMARY
The traditional form of organisation is not very suitable for project work because it has
no means of integrating different departments at levels below the top management and
it does not facilitate effective communication, coordination, and control.
Project organisation may take one of the following three forms: line and staff
organisation, divisional organsiation, and matrix organisation.
In the line and staff form of project organisation, a person is appointed with the primary
responsibility of coordinating the wok of the people in the functional departments.
Under the divisional form of project organisation, a separate division headed by the
project manager is set up to implement the project. In a matrix organisation, the
personnel working on the project have a responsibility to their functional superior as
well as to the project manager.
Comprehensive project planning covers the following areas: project work, manpowr
and organisation, money, and information system.
The important stages in the life cycle of a project are: project development and
preliminary engineering, bidding and contract negotiations, engineering design,
purchase and procurement, construction, and commissioning.
The two important tools of planning are the bar chart and the network techniques. The
bar chart is a pictorial device in which the activities are represented by horizontal bars
on the time axis. In network techniques, the activities, events, and their interrelationships are represented by a network diagram
For large projects, a hierarchy of plans showing various levels of detail may be
prepared.
The traditional approach to project control, involving a comparison of the actual cost
with the budgeted cost, is referred to as variance analysis. This approach is inadequate
for project control for the following reasons: (i) it is backward-looking rather than
forward-looking, and (ii) it does not use the data effectively to provide integrated
control.
To achieve satisfactory human relations in the project setting, the project manager must
successfully handle problems and challenges relating to (i) authority, (ii) orientation,
(iii) motivation, and (iv) group functioning.
Often, the project manager has to coordinate the efforts of various functional groups
(within the organisation) and outside agencies without the leverage of hierarchical
authority. His effective authority depends largely on his professional stature and interpersonal skills.
The project manager has to strengthen the managerial orientation of project personnel,
particularly technical and engineering personnel.
There are several stages, partially overlapping, in the formation of an effective group:
development of mutual trust, diminution of defensive behaviour, openness and candour
in communication, cooperation and supportive behaviour, and resolution of differences
by mutual negotiation.
Time and cost over-runs of projects are very common in India, particularly in the public
sector. Hence, projects tend to become uneconomical and economic development is
adversely affected.
The important pre-requisites for successful completion of projects are : (i) adequate
formulation, (ii) sound project organisation, (iii) proper implementation planning, (iv)
advance action, (v) timely availability of funds, (vi) judicious equipment tendering and
procurement, (vii) better contract management, and (viii) effective monitoring.