Project organisation structure, Project Management

Project organisation

In this type of organisation, the project management needs of all divisions of the company are served by a centralized separate division of skilled manager. The project organisation structure is illustrated in Figure.

 

2089_project structure.png

Figure: Project Organisation Structure

Characteristics

  • It is the responsibility of a central group to plan, control, manage, and report the progress of all projects in the organisation.
  • Project managers have a lot of authority and independence.
  • Team members can be placed together in a proper order.

Advantages

  • The entire organisation follows a formal project management system.
  • Having    a    common    understanding     and    application     of    project management  practices  helps  completion  of  project  on  time,  within budget and within project scope and hence increases efficiency.
  • Every project across the organisation follows a standard for planning, controlling and reporting. This aids communication and provides efficiency.
  • Costs can be reduced by using common tools to manage all projects.
  • Centralized availability of data from all projects makes it easier to analyse and apply it to future projects, improving accuracy of estimation and practice.
  • All the projects of an organisation can be managed as a whole. Senior management can set priorities across projects and allocate resources using enterprise portfolio management.

Disadvantages

  • The centralised project managers and practices may tend to become self-serving rather than been considerate to the needs of project office and people.
  • Since processes become excessive, the cost of managing projects under a centralised organisational structure is comparatively higher than other structures.
  • Scarcity of qualified technical leaders. Project managers may not have the necessary technical background for a project.
  • Since project managers are located in a separate project office, they may seem unresponsive to the needs of people who request their time and skill.
Posted Date: 9/28/2012 6:31:01 AM | Location : United States







Related Discussions:- Project organisation structure, Assignment Help, Ask Question on Project organisation structure, Get Answer, Expert's Help, Project organisation structure Discussions

Write discussion on Project organisation structure
Your posts are moderated
Related Questions
What are the Advantages of Division of Labour? Advantages of Division of Labour: As very similar worker does the same work frequently:- a. It gains proficiency and ski

ADVANTAGES OF PARTICIPATIVE MANAGEMENT: Advantages: For improving the library and information service, the management follows the technique of participatory decision making wh


Question: (a) The greatest threats to many projects are failures to communicate effectively. (i) Elaborate on the Project Communication Management processes (ii) Briefly

Degree of Vertical Integration Vertical integration is the amount of production and distribution chain, from suppliers of raw materials and components to the delivery of finishe

We are two partners, starting a new business "Events Management" and we have to prepare the business plan with 7P''s, how could you help us?

The Head of Insurance at JKL Bank has been considering how to make efficiencies in the operation of the Car Insurance Business Unit. One option under consideration is to outsource

What are the differences between classical theory and neo-classical theory of organisation? Difference between classical theory and neo-classical theory of organisation: The cl

Question 1: (a) Elaborate on the drivers of the ‘Age of Project Management'. (b) Differentiate between the terms ‘Project Management' and ‘Line Management'. (c) Expla

Span of management Span of management refers to the number of subordinates who directly report to one superior. If a manager has too many subordinates then his span is wide and