Choosing a Project Organisation 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.

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