Choosing a Project Organisation Structure

CHOOSING A PROJECT ORGANIZATIONAL STRUCTURE.

The choice of a project organizational structure is typically addressed to the senior management of the parent organization or benefactors. Very rarely do Project Managers have a choice about the way the project interacts with the parent organization.

Basically, the type or form of project organization structure may be influenced by variables such as:

• The nature of the potential project, whether researching, manufacturing, works etc.
• The characteristics of the various organizational goals.
• The total costs and total benefits of each structure.
• The policies, priorities and preferences of the parent organization.
• The extent of resources required to implement the project more competently.
• Geographical and cultural disparities.
• The levels of the technologies to be embraced.
• The number of projects to be handled simultaneously.
• The uniqueness of the project to be rolled out.
• The level of efficiency and effectiveness expected.

Before the right project organizational structure is finally chosen or determined, the procedure below is typically followed:

• Define the project with a statement of the objectives that identify the major outcomes desired
• Determine the key tasks associated with each objective and locate the units in the parent organization that serve as functional homes for such of tasks.
• Arrange the key tasks by sequence and decompose them into work packages.
• Determine which organizational units are required to carry out the work packages which units will work particularly closely with others.
• List any special characteristics or assumptions associated with the project e.g. level technology needed, probable length and size, possible potential problems,who may be assigned to the project etc.
• In light of the above, and with full cognizance of the pros and cons associated with each structural form so as to choose the most appropriate organizationalstructure.