ORGANIZATIONAL WORK FLOW

• Organizations are continually restructured to meet the demands

imposed by the environment.
• Authority is the power granted to individuals (possibly by their
position) so that they can make final decisions.
• Responsibility is the obligation incurred by individuals in their
roles in the formal organization to effectively perform
assignments.
• Accountability is being answerable for the satisfactory
completion of a specific assignment. (Accountability = authority
+ responsibility.)
TRADITIONAL (CLASSICAL) ORGANIZATION
(CONT)

The traditional management structure.

TRADITIONAL (CLASSICAL) ORGANIZATION
(CONT)
TRADITIONAL (CLASSICAL) ORGANIZATION
(CONT)
LINE–STAFF ORGANIZATION (PROJECT
COORDINATOR)
PURE PRODUCT (PROJECTIZED) ORGANIZATION
PURE PRODUCT (PROJECTIZED) ORGANIZATION
(CONT)
PURE PRODUCT (PROJECTIZED) ORGANIZATION
(CONT)
 MATRIX ORGANIZATIONAL FORM
• The matrix organizational form is an attempt to combine the advantages
of the pure functional structure and the product organizational structure.
• This form is ideally suited for companies, such as construction, that are
“project-driven.
MATRIX ORGANIZATIONAL FORM (CONT)

Typical matrix structure.

MATRIX ORGANIZATIONAL FORM (CONT)
MATRIX ORGANIZATIONAL FORM (CONT)
SELECTING THE ORGANIZATIONAL FORM
• The basic factors that influence the selection of a project organizational
form are:
 Project size
 Project length
 Experience with project management organization
 Philosophy and visibility of upper-level management
 Project location
 Available resources
 Unique aspects of the project
SELECTING THE ORGANIZATIONAL FORM (CONT)
SELECTING THE ORGANIZATIONAL FORM (CONT)
TRANSITIONAL MANAGEMENT
• Transitional management is the art and science of managing the
conversion period from one organizational design to another.
• Transitional management necessitates an understanding of the
new goals, objectives, roles, expectations, and employees’ fears.
• Fifteen challenges must be accounted for during transition:
• Transfer of power.
• Trust.
• Policies and procedures.
• Hierarchical consideration.
• Priority scheduling.
• Fifteen challenges must be accounted for during transition:
(cont)
• Personnel problems.
• Communications.
• Project manager acceptance.
• Competition.
• Tools.
• Contradicting demands.
• Reporting.
• Teamwork
• Theory X–Theory Y.
• Overmanagement costs.