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







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