project oriented organization. meaning speed and market responsiveness first – to – market...
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Project Oriented Organization
MEANING
• Speed and market responsiveness• First – to – market powerful competitive
advantage• Development of new products, process from
diverse areas of specialized knowledge• Rapid expansion of technological possibilities
Project organizational structures
• Traditional functional organization• Functional project organization• Pure project organization• Matrix project organization
Functional Project Organization
• Project organized and controlled within a functional unit or department
• Usually for smaller projects with a narrower focus• Individual experts can be utilized by many
different projects• Specialized in the division can be grouped to
share knowledge and experience.
Traditional Functional OrganizationCompany President
MarketingVice President
ManufacturingVice President
ProcurementVice President
CustomerService
Manager
EngineeringVice President
DomesticSales
Manager
InternationalSales
Manager
SystemsEngineering
Manager
ElectronicsEngineering
Manager
SoftwareEngineering
Manager
MechanicalEngineering
Manager
FabricationManager
AssemblyManager
TestingManager
ProductionSchedulingManager
PurchasingManager
Receiving &InspectionManager
TechnicalDocumentation
Manager
ShippingManager
Finance &AdministrationVice President
HumanResources
Vice President
Functional Project OrganizationCompany President
MarketingVice President
ManufacturingVice President
ProcurementVice President
CustomerService
Manager
EngineeringVice President
DomesticSales
Manager
InternationalSales
Manager
SystemsEngineering
Manager
ElectronicsEngineering
Manager
SoftwareEngineering
Manager
EngineeringProject A
FabricationManager
AssemblyManager
TestingManager
ShippingManager
PurchasingManager
Receiving &InspectionManager
EngineeringProject B
ManufacturingProject 1
Finance &AdministrationVice President
HumanResources
Vice President
Pure Project Organization
• Each project is organized as a separate division reporting to senior management
• Effective for large projects, not small. • Each project owns its resources/personnel• Authority is centralized, ability to make swift
decisions is greatly enhanced.• Structurally simple and flexible• Relatively easy to understand
Pure Project Organization
CompanyPresident
Project AProject Manager
Project BProject Manager
MarketingVice President
HumanResources
Vice President
Finance &AdministrationVice President
LegalVice President
EngineeringManager
ManufacturingManager
ProcurementManager
Consultants
EngineeringManager
ManufacturingManager
ProcurementManager
Subcontractors
Matrix Project Organization
• Most common organizational structure• Has many advantages of functional project and pure
project structures• Project team members have two bosses• Team members may be assigned part-time to project
and may have less loyalty to the project
President
ProgramManager
Manufacturing Marketing Finance R & D Personnel
Project 1
Project 2
Project 3
3
1
0
1 1/2
4
1/2
1/2
1/4
3
4
1 1/2
1/2
1/2
1/4
1
Matrix Project Organization
PROJECT FORMULATION
DEFINITION
• It is a process by which one obtains a complete picture about project without really arriving at a detailed feasibility study.
• The information collected through this approach can be used for preliminary evaluation and screening of projects
Purpose of Project Formulation
• Clearly defined plans• Joint decision making consultation with parties• Stress importance of project to organization goals• Developing detailed administrative procedures to
be followed in conduct of project• Develop statement of understanding or charter.
STEPS OF PROJECT FORMULATIONProject formulation
Opportunity studies/support studies
Identification of product/service
Pre-feasibility study
Feasibility study(Techno-economic feasibility)
Project appraisal
Detailed project report
Project Feasibility Study focus on
• Economic and Market Analysis• Technical Analysis• Market Analysis• Financial Analysis• Economic Benefits• Project Risk and Uncertainty• Management Aspects
Market Analysis
• Identification of existing needs/ latest needs• Product life cycle• Market outlook• Competition• Government policies – taxes etc.,• Socio economic factors• Customer profile
Technical Analysis
• Encompasses available alternative technologies
• Selection of the most appropriate technology• Implications of the acquisition of technology• Contractual aspects of licensing
Financial Analysis
• Examines the viability of the project both in financial or commercial considerations
• Also indicates the return on the investments
Risk and Uncertainty
• Technical – Relates to project scope– Change in technology– Quality and quantity of inputs
• Economical– Pertains to market– Cost– Competitive environment– Change in policy– Exchange rate
Economic Benefits
• Employment generation• Economic development of the area where the
project is located, • Foreign exchange savings in case of import
and export substitutes
Management Aspects
• Cover the background of promoters• Management philosophy• Organization set up • Staffing for project implementation phase as• Aspects of Decentralization and delegation,• Systems and procedures• Method of execution
Project Appraisal
• Process of critical examination and analysis of the proposal in total.
• In this phase compilation of additional information and further analysis of project dimensions are undertaken
• At the end of this phase appraisal note is prepared for facilitating decision on the project implementation.
PROJECT TEAM
• Members usually belong to different groups, functions and are assigned to activities for the same project
• Interdependent collection of individuals who work together towards a common goal
• Who share responsibility for specific outcomes of their organizations
• Their commitment can change throughout the project depending on the project development stage.
Characteristics of Project team
• A clear, elevating goal• Competent members• Standards of excellence• Team goals are clearly understood by all• Each team member trusts the judgment of
others• The team has to be willing to take risks• Principled leadership
Project Team Models• Traditional Model
– Group of people with a traditional boss• Team Spirit Model
– Group of people who are working for one boss• Cutting Edge Model
– Group of people who are managing themselves• Task Force Model
– Group that comes together for a specific time only• Cyber Team
– Members see one another rarely or even, not at all
Importance of building teams
• Improve the relations and strengthen the bond among the employees.
• Reduce the chances of confusions, misunderstandings and in a way making the communication effective
• Individuals feel more positive and confident at work
Importance of building teams
• Tasks are accomplished at a faster pace when it is done by a team rather than an individual
• Team work is also important to improve the relations among the employees
• Work never suffers or takes a backseat in a team.
Qualities of good project team member
• Must not enter his office with a mind clouded with negative thoughts.
• Accept the responsibilities only if he/she have interest in the same
• A team member must avoid playing blame games or dirty politics at the workplace
• Develop the habit of using planners and organizers at work to set reminders against the desired date and time
• Adopt a friendly attitude at work. • Be a good communicator
Types of Teams
• Interdependent Teams• Self-Managed Teams• Project Teams• Cross-Functional Teams• Advisory Teams• Independent Teams• Work Teams
Stages of Team Development
• Forming– Involves getting to know the various members of
the team.– Team members can identify each others strengths
and weaknesses within the team itself• Storming
– Individuals within the team will work together in order to maintain control
– Team members may compete for control of the group
• Norming– Working towards meeting their goal– Give and receive feedback– Trust develops within the team
• Performing– Make progress towards achieving the teams overall
goal– Feedback should enable constructive changes to take
place– The team should constantly be improving whilst goals
are being achieved
Barriers of Project Team• Communication Barrier
– Lack of concentration and/or interest– Distractions present
• Physical Barriers
– Lack of equipment– Staff shortages – less members of the team present– Poor lighting– Room temperature not suitable
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