temporary organisational structure.docx

7/21/2019 Temporary Organisational Structure.docx

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ID: 22049846 AHAMED ZIYATH SL

1

Sheffield Hallam University

MSc Construction Management/Project Management

MODULE TITLE: PROJECT MANAGEMENT PRACTICE

MODULE CODE: 26-7040-00S

SEMESTER 1 ACADEMIC SESSION: 2013/2014

SUBJECT: TEMPORARY ORGANISATIONAL STRUCTURE

BY: AHAMED ZIYATH SULAIMA LEBBE (ID: 22049846)

WORD COUNT 2500 3000 WORDS


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Contents

Introduction ...................................................................................................................................................... 3

1. Orgnisational Structure ....................................................................................................................... 4

1.1 Functional Orgnisation ............................................................................................................................... 5

1.2 Matrix Organization ..................................................................................................................................... 6

1.3 Projectised Organization ............................................................................................................................ 9

2. Temporary (Project) Organisational Structure?....................................................................... 10

3. Oranisational Perception for Project? .......................................................................................... 11

4. Integration issues? ............................................................................................................................... 12

4.1 People Dimension? .................................................................................................................................... 12

4.2 Process dimension ..................................................................................................................................... 14

4.3 Tools dimension ......................................................................................................................................... 16

4.4 Methodology dimension .......................................................................................................................... 17

4.5 Results and outcomes dimension......................................................................................................... 18

5. Conclusion............................................................................................................................................... 19

6. Reference ................................................................................................................................................ 20


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Introduction

An organizational structure is a formation combined with activities of duty assignment,

management and control. It is a business strategy to achieve aims of organisation. This is also a

transparent glass the personnel see through their organisation and its environment.

An organization can be structured in many different ways, depending on their objectives. The

structure of an organization will determine the modes in which it operates and performs.

Organizational structure allows the expressed allocation of responsibilities for different

functions and processes to different entities such as the branch, department, workgroup and

individual.

Where: project (temporary) organisation structure (Enterprise project structure) is a

hierarchy that enables the coordination and application of project events. Its core motive is to

make an environment that nurtures interfaces and communication within project team

members to identify their roles and responsibilities. Project organisation structure is

fundamental route where the individuals find their ways of supervision and commination. It is a

unique structure, which may be changed/rearranged depending on the nature of the projects, is

constrained with the project management

This report will critically discuss integration issues within project organisation structure and

permanent organisation structure in terms of integration change management and give solution

to the problem on how to solve, face or get rid of the problems occurred during this process.
http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)


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1. Orgnisational StructureHow to direct organisation to better change and innovation is gained through a clear

understanding of organizational structure. Most of the writers agree with the concept and say

that the more you understand about the organisation is the more you build up the ultimate

business goals towards success path. In that case, the structure gives primary/fundamental

attention to develop business strategy.

According to PMBOK (2013) Fifth Edition, the organizational structure is an enterprise

environmental factor which can affect the availability of resources and influence how the

projects are conducted. Organizational structures range from functional to projectised, with

variety of matrix structures. (See the table 1 below)

Table 1: how organisation influences on projects

Organization

StructureFunctional

Matrix

ProjectisedWeak

Matrix

Balanced

Matrix

Strong

Matrix

Project Managers

Authority

Little or

NoneLimited

Low to

Moderate

Moderate or

High

High to

Almost Total

Resource

Availability

Little or

NoneLimited

Low to

Moderate

Moderate or

High

High to

Almost Total

Who control the

project budget

Functional

Manager

Functional

ManagerMixed

Project

Manager

Project

Manager

Project Managers

RolePart-time Part-time Full-time Full-time Full-time

Project Management

Administrative StaffPart-time Part-time Full-time Full-time Full-time


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Project Coordination

1.1 Functional Organisation

It is a hierarchy where each employee has one clear superior. Employees are grouped by area

like production, marketing, engineering, and accounting at the top level. Areas may be further

subdivided into functional organisation like civil, mechanical and electrical engineering. Each

department in functional organisation carry out its project independent of other departments.

Functional Organization

Advantages and Disadvantages of Functional Organiation

Advantages Disadvantages

Specialisation: Each department focuses on its

own work

Closed communication could lead to lack of focus

Accountability : Someone is responsible for

each department

Departments can become resistant to change

Clarity : Everyone knows their own and others

roles within the department

Coordination may take too long

Job security is guaranteed PM has no authority.

CheifExecutive

FuntionalManager

Staff

Staff`

Staff

FuntionalManager

Staff

Staff

Staff

FuntionalManager

Staff

Staff

Staff

Boxes are representing staff who are engaged in project activities


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ProjectCoo

rdination

1.2 Matrix OrganizationIn Matrix organisation, there can be more reporting lines for to manage individuals: it generally

manages cross practice, business group and the traditional vertical business units: always silos

of function and geography. This form is an attempt to maximize the strengths and weaknesses of

both the functional and project forms. There are three types in matrix:

1. Weak Matrix: it maintains many of the features of functional organisation. The project

manager role is more of coordinator expediter than that of project manager.

2. Strong Matrix: it has many of the features of projectised organization. The project

manager has full authority

3. Balanced Matrix: it recognises the need for a project manager. The project manager does

not have full authority.

Weak Matrix Organization

In a weak matrix, functional manager has power. In this form of organization, the project

expeditor acts primarily as a staff assistant and communications coordinator. The expeditor has

no personally decision making rights. Simply to say The functional managers have all the Power

in a weak matrix, and project managers act as project organizers with little or no authority.

CheifExecutive

FuntionalManager

Staff

Staff`

Staff

FuntionalManager

Staff

Staff

Staff

FuntionalManager

Staff

Staff

Staff



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ProjectCoordination

ProjectCoord

ination

Strong Matrix Organization

Here, project managers have power. They are able to force the functional managers to give them

their best resources. The project managers can then negotiate these resources among

themselves without functional managers. The project managers have their own boss, in effect a

functional manager, who is the manager of project managers.Balanced Matrix Organization

CheifExecutive

FuntionalManager

Staff

Staff`

Staff

Manager of ProjectManagers

ProjectManager

ProjectManager

ProjectManager

FuntionalManager

Staff

Staff

Staff

FuntionalManager

Staff

Staff

Staff

CheifExecutive

FuntionalManager

Staff

ProjectManager

Staff

FuntionalManager

Staff

Staff

Staff

FuntionalManager

Staff

Staff

Staff




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This form of organization is alike the Weak Matrix organization. But that the coordinator has

some authority to make decisions and reports to higher level manager.

Advantages and Disadvantages of Matrix Organiation


Better coordination and control Violation of unity of command

Adaptable to dynamic environment Costly structure

Effective utilization of resources Problem of overspecialization

Particular managementDifficult to balance project authority between

project and functional authority.

Sufficient time for top management Employees have no job security

Excellence in inter disciplinary specialization

Development of team work


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1.3 Projectised OrganizationIn the projectised organisation, team members are often co-located: resources are involved in

project work and the project managers have a strong independent authority. It is combined with

organizational units called departments. These groups may report directly to the project

manager and provide support services to various projects. Simply to say that all the organisation

is run by projects. The Project Manager has total control of projects. Personnel are assigned and

report to a Project Manager.

Projectised Organization

Advantages and Disadvantages of Projectised Organiation


Project Manager has the power and full

authority over the projects resources

No career path in areas of specialty

Communication are easier and faster No job security

Loyalty to projects Employees may be exploited

High level of integration Less employees interest in work at final stage

of the projectQuicker decision making

CheifExecutive

ProjectManager

Staff

Staff

Staff

ProjectManager

Staff

Staff

Staff

ProjectManager

Staff

Staff

Staff


Project Coordination


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2. Temporary (Project) Organisational Structure?It is a part of organisational units where project team memebrs are assigned temporarily to

achieve a spcific goals or aims. The structure paves the way for employees to understand their

scope and responsiblities. It allows them to get the fundemental idiology and hierachy of the

project.

The project structure is a unique characteristic: it may vary or change depending on the nature

of project and client requirements. The organisational team:

Client:Private

EngineeringOffice

ProjectManager:

TarekMohamad

ResidenceEngineer:

AbdulHassen

Architectur

alEngineer:

Omar Amin

StructuralEngineer:

Edvin Karo

ElectricalEngineer:Al Harti

PlanningEngineer:AhamedZiyath

DocumentController:Mahmoud

Salah

Mechanical

Engineer:Mahmoud

Ezz

Civil

Engineer:ErwinYanoc

QS.

Engineer:Kalith

Ahamed

Below show is an example of project organisational structure

Client: PrivateEngineering Office

Consultant: AranConsulting Engineers

Design Consultant:EHAF Consulting

Engineers

Design:Qatar

DesignConsodium

Main Contractor:Generic Engineering

Technology

SubContactor:Mechanical

SubContactor:Electrical

SubContactor:

UtilitiesSuppliers


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3. Organisational Concept for Project?There are contexts that an organization commence for the projects. They are as follows:

Projects are unique units, where project organisational structure is set up only to run the

project.

Project ownership can be shareholders or other stakeholders in the undertaking.

A project can be carried out inside the context of a larger organization, leadership team

within the organization forms the sponsoring group.

The project is the business strategy for passing the determined sponsoring group.

In a large organization, there can be more projects.

An organisation forms portfolios and/or programmes in service area or products in a

definite business objective.

In an organization the business interest are managed as a portfolio or programme where

the project sponsor is determined.

Figure below shows the relationship between projects in the context of other management

vehicles commonly found in organizations.


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4. Integration Issues?Most probably, the integration issues (linked with integration processes) in project organisation

structure occurs during the change management processes. Elements of successful projects and

initiatives set the stage for the united value intention. While the disciplines are distinct in their

focus and approach, in action the technical side and people side of change are often interacting

and intermingling. Here identified are five dimensions of integration issues to be discussed in

terms of change management:

1. People dimension

2. Process dimension

3. Tools dimension

4. Methodologies dimension

5. Results and outcomes

4.1People Dimension?The people dimension of integration explains the structure of change management and project

management work and how the relationship is architected. Change management resource can

either sit on the project team or support the project team externally. (Below show example).

There is not a "right" or "wrong" decision around team structure, but there are certainly

advantages and challenges of each model. When the change management resource is part of the

project team, there is a higher level of project knowledge and responsibilities can be more easily

integrated. When the change management resource supports the project team externally, the

resource tends to have higher levels of access to the sponsor, more objectivity and an exclusivefocus on change management.


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The decision of which "people dimension" integration approach is likely based on the nature of

the project and the norms in the organization. Whichever approach is taken, it is important to

effectively define roles, responsibilities and relationships for the project management resources

and change management resources.

To prevent the issues in integration along the people dimension:

Evaluate the nature of the change and the organization to decide on the best architecture

for the relationship between project resources and change management resources.

Clearly define roles, responsibilities and relationships - by clearly establishing who will

be doing what, you create better expectations and foster a better working relationship.

Be present and involved - as the change management resource on the project, be sure

that you are engaged and involved with project activities so change management has a

presence.

Ensure sponsorship: regardless of the decision on structure, adequate sponsorship for

change management gives credibility and support for the change management work and

focus.


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4.2Process dimensionThe process dimension of integration addresses how the activities of project management and

the activities of change management are brought together during the lifecycle of the project or

initiative. Integration at the process dimension enables these two complementary disciplines to

be more effective in sequencing work, aligning the timing of activities and exchanging

information that is crucial to project success. The image below shows, at a high level, how

change management and project management activities can be integrated.

Integration of activities is enhanced by several factors:

Beginning change management activities early in the project lifecycle, at the project

initiation or project planning phases. The earlier change management is launched, the

more effective the sequencing, aligning and exchanging of information will be.

Using a process-driven approach with distinct deliverables for change management. If the

change management approach is not process-driven with specific deliverables and

milestones, it is very difficult to integrate with project management from both a practical

and a credibility perspective.


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To prevent the issues in integration along the process dimension:

Be structured in approach: the more difficult, process-oriented and milestone-driven the

change management approach is. The more easily it can be integrated with project

management activities.

Create concrete deliverables: as the change management resource, the more you can

capture change management work in concrete deliverables, the more effectively you can

integrate your work into the existing project team work.

Actively identify key points in time for integrating activities: throughout the project

lifecycle, there are times where integration of activities is more critical and makes more

sense. Some of these include: risk identification activities, solution design activities,

project announcement activities, system testing activities. In each instance, you can be

more complete and holistic by integrating these activities to ensure that both the

technical side and people side perspectives are addressed.


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4.3Tools dimensionSome tools cannot be integrated as they exist in only one discipline or the other. However, there

are numerous tools that are used by both project management and change management

practitioners: the communication plan and risk assessment are two tools commonly used in both

disciplines. Integration on a tool dimension means creating a single communication plan that

includes both technical side and people side messages.

The table below includes a list of some of the tools that have been integrated:

To prevent the issues in integration along the tool dimension:

Identify specific tools that make sense for integration: some of the more common might

include stakeholder analysis, risk identification and communication plans (all of these are

common artifacts of project management and can easily be adapted to include a change

management perspective).


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Work with what the project team has already done: there is no sense in alienating a

project team by telling them that their communication plan is a "telling plan" and not a

communication plan. Instead, your best approach is to say "that is great that you already

have a communication plan, now let me see what I can add from a change management

perspective."

Ensure ownership is clear: one risk of integrating at the tool dimension is that each may

inadvertently give up accountability once both project management and change

management are involved. Clarify early on who will still maintain and own the tool even

when both perspectives are included.

4.4Methodology dimensionWhile integration along the people, process and tool dimensions occurs at the project level,

integration of methodologies occurs at the organizational level. This dimension of integration

moves one step up - creating a common and standard approach to project delivery that

incorporates the organization's project management methodology and the organization's change

management methodology.

Integration of methodologies is not trivial and involves decisions about when and how the

methodologies interact and when they diverge. As with each dimension of integration, there are

advantages and challenges to consider when integrating methodologies. One of the biggest

challenges is that change management work becomes too governed by project milestones and

timing, taking away some of the change management work stream's needed ability to react to

and adjust to how people are experiencing the change.

An integrated methodology is often part of a greater strategy for institutionalizing change

management.

To prevent the issues in integration along the methodology dimension:

Select a common change management methodology: before you can begin to integrate at

a methodology level, you will need to select an organizational standard change

management methodology.


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Be mindful of the tradeoffs: when you integrate at the methodology dimension, there are

some risks related to removing the responsive nature of change management. Take these

risks into consideration and design your integrated methodology appropriately.

Manage the change of introducing an integrated methodology: many project managers in

your organization may not be familiar or experienced with applying change management.

They have also been successful with, and are accustomed to, using their current project

management methodology. When you introduce a new integrated methodology, be sure

to apply change management to the change "applying the new integrated methodology."

4.5Results and outcomes dimensionIntegration on the results and outcomes dimension stems from the notion that change

management and project management are in fact complementary disciplines with a common

objective. The phrase "common objective" means that, in the end, both project management and

change management are approaches used to improve the performance of the organization by

helping it reach a desired future state resulting from a project or initiative. Rather than

integration, this dimension is more focused on reaching a shared view of what success means

and how each of the disciplines contribute to project success.

While results and outcomes are the final dimension presented here, this is in many ways where

integration actually begins. When we can successfully integrate our view and definition of what

we are trying to achieve, the rest of the integration elements begin to fall into place. Rather than

an "us" versus "them" mentality, integration on the results and outcomes dimension drives a

"we" approach.


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5. ConclusionIn a simple way, we can say the forming of project organization structure (POS) is the prominent

strategy in business which is combined with project integration processes in the project

lifecycle. On the other hand, it can be described as forming a project team which, a formal

communication channel for supervision, pave the way for employees to understand clearly their

roles and responsibilities.

Even though there are many issues in other project integration processes, which are given above

in the chart, the negative impacts from integration issues in change management (change

control) are dangerous which may lead the project to over budget, time and bad quality of

product or service.

Furthermore, no-one can deny the integration issues which exist in permanent organizational

structure but the issues are no going to affect more the permanent organization when compared

to POS. For instance, if anyone is dropped or fired out of permanent organization there can be

other one to fulfill all the requirements in place of him: so the change is not going to affect as it is

a continuation process.

But, in POS if one (Example, one Engineer) is dropped or fired in the middle of the project it is

hard to complete the project in time because it take time for the new comer to understand the

concept of the project: so the duration he takes to know about the project may affect the project

completion which may cause negative impact on time, budget and quality.


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