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Project Organisation

Dr. Sepani Senaratne

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Project Management
  e overview and organisation needed to
ensure tat a project is completed on time,
witin budget and tat it works.ơ

  e means, tecniques, and concepts used


to run a project and acieve its objectivesơ

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º Manage b Projects?
 |ecause of teir
 speed and market responsiveness for
successful competition
 abilit to utilise a wide range of specialised
knowledge
 abilit to andle organisation cange
processes
 abilit to control large-scale complex
activities

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Project Initiation
  project can initiated,
 o get a product or service done
 o support a creative idea
 o develop a new tecnolog
 o undertake a certain repair

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Project Organisation Forms
 ree major tpes
 1 - ºitin functional organisation
 2 - Pure project organisation
 3 - Matrix organisation

 Eac differ in te wa te connect to


te parent organisation

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1- Functional Organisation
 Project becomes a part of te functional
division
 e project is assigned to te functional
unit tat as te most interest in
ensuring its success or can be most
elpful in implementing it

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1-Example

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1-dvantages
 Maximum flexibilit in te use of staff
 People can be switced back and fort
between different projects witin te
functional unit
 Full access to tecnical knowledge resided
witin te functional unit
 Functional unit serves as te base of
continuit and consistenc in policies,
practices and procedures
 Contains te normal pat of individual
advancement
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1-Disadvantages
 Project is not te main focus as functional
unit as its own work to do, tus less
motivation
 Not problem-oriented rater function-oriented
 No individual is given full responsibilit for te
project
 Poor and slow response to client needs
 Does not facilitate a olistic approac to
project ƛ designed as a totalit
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2- Pure project organisation
 Project is separated from te rest of te
organisation
  self-contained unit wit its own staff
and administration, wile tied to te
parent organisation b periodic progress
reports and supervision

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2- Example

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2- dvantages
 PM as full line autorit, ig status and
direct control - unit of command &
sortened communication
  strong sense of identit
  ig level of commitment and motivation
b its members
 React more rapidl to client needs
 Structurall simple and flexible
 Supports a olistic approac to te project
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2-Disadvantages
 In case of several projects, can lead to
duplication of tasks
 Foster inconsistenc in terms of policies
and procedures
 ºit strong attacments, bitter
competition and political infigting can
exist
 ºorr about life after te project

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3-Matrix Organisation
  project organisation overlaid on te
functional divisions of te parent firm
 In tis, project manager controls wen
and wat is team will do, wile te
functional managers control wo will be
assigned to te project and wat
tecnolog will be used.

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3-Example

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3-dvantages
 Project manager takes te responsibilit for
managing te project
 e project as reasonable access to knowledge
resided in all functional divisions
 Less anxiet after project completion
 Flexible and rapid response to bot client and
parent firm
 ccess to admin. units, terefore,consistenc in
policies, practices and procedures
 llows better compan-wide balance of
resources in case of several parallel projects
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3-Disadvantages
 Since te power is balanced between project
manager and te functional manager, doubts
can exist about wo is in-carge of wat
 Generall PM takes administrative control wile
 Functional manager takes tecnological control
 Violate unit of command

 PMs ma focus on individual projects rater


tan te total sstem tat optimises
organisation-wide goals

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Mixed organisations
 Sometimes, pure functional and pure
project organisations ma coexist in a
firm.

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Coosing an organisational form
 Functional form
 ºere major focus must be on in-dept application of a
tecnolog (function)

 Pure project form


 For managing complex, innovative non-routine tasks in an
uncertain, canging environment

 Matrix form
 ºen te project requires inputs of several functional areas
and involves reasonable complicated tecnolog

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