Project management is a developmental strategy for organizations that focuses on the employment of various management disciplines to formulate pursuits or endeavors that are expected to result to the realization of organizational goals and objectives.
There are several expectancies involved in project management, such as the extraction and allocation of cost, the identification of a time table for accomplishing goals and objects and planning a schedule for such purpose, the establishment of efficient communications media for transfer and circulation of information, the isolation of needed resources, the evaluation of quality and practicality of projects, the assessment of individual and team performances, and the detection and prevention of potential risks and loses. (Yadav, 2004)Aside from the role of managerial roles and responsibilities, another aspect of the organization that professionals are looking into as influential to project management is the structure of the organization. The structure of the organization is the arrangement of its elements and composition in a strategic manner to suit the mission and vision of the organization. Structuring means putting the organization together efficiently in such a way that mechanisms within it are running smoothly and the best possible outcomes are achieved. AbeBooks, 2008) Organizational structure greatly influences the success of the organization. For example, human resources management fails to employ highly skilled and competitive individuals.
This will result to inferior productivity and work outputs. Work force becomes a weakness of the organization affecting the outcome of projects dependent on human resources that will be carried out. Therefore, it is important that project management looks into the structure of the organization in order to gain competitive advantage. (Mochal, 2003)When organizational structure is integrated to the concept of project management, it takes on various roles and purposes.
Organizational structure within the management of projects may follow a functional, pure project or matrix organizational configuration. The platform of these structures of organization holds various advantages and disadvantages to organization. Therefore, the implementation of each organizational structure should be applied judiciously. A functional organization incorporated to project management depends on the elements comprising the organization.
Projects are directed by functional management teams within the organization, overseen by a general project manager. The organization and supervision of the project is a major responsibility of the organization’s management teams, with success depending on the capability of these management teams to distribute tasks to grouped staff members based on determined knowledge and skills, strengths and weaknesses. Moreover, communication and coordination between management teams is also a necessity. Therefore, the output of the project is highly dependent on the mechanisms within and among the functional management teams.
The benefits of functional project organizations are that tasks and responsibilities are specified for each specialist management team. Management teams are able to work within expected roles through their competencies and expertise. Due to specific tasks and responsibilities, hiring and promotion is clearly guide and management teams and staff members establish harmonious work relationships because they share the same knowledge and expertise. The management team and staff members complement each other for productivity and desirable work outputs.Moreover, the distribution of tasks becomes highly flexible.
Since projects are entrusted to functional management teams within the organization, operational costs are controlled and reduced. (PSU, 2008) Disadvantages of functional project organizations include the difficulty of collaborating with other management teams. For exclusive management teams and staff members, there is a tendency to disconnect themselves from other management teams and staff members resulting to independent but bordered decisions.Consultation with other management teams and the project manager is important in decision-making and task realization in order for them to grasp a clearer picture of all aspects of the project.
This creates imbalance between the authorities and objectives of functional managers and project managers, and as focus is on the managerial position and responsibility, it veers away attention from client needs and concerns. The accomplishment of tasks and responsibilities is highly dependent on the management team, so the issue of appointing functional management teams becomes perilous.Matrix project organizations rely on selected members of the organization to carry out processes and operations within a given project. The accomplishment of assigned tasks is dependent on functional managers and a project manager who oversees all practices and operations.
The project manager works closely with all functional managers to select best staff members from all departments for specific tasks and responsibilities. Organizational practices and operations are dependent on the relationship between the project manager and functional management teams.Both have power to structure the process and elements involved in accomplishing a project plan. This establishes the complexity of matrix project organizations. (PSU, 2008) Advantages of matrix project organizations include its potential to utilize best resources within the organization for optimal results. Selection of functional managers and staff members is not limited to a particular department or group so the process ensures that the most knowledgeable and skilled are employed to participate in the project.
Moreover, the involvement of staff members from various departments guarantees resource sharing and nurtures collaborative relationships between them. Another advantage is that project managers can closely monitor mechanisms, guide the direction of these mechanisms, and secure the accomplishment of goals and objectives. This results to efficient and speedy action to address client needs and concerns.Due to a broad range of responsibilities for the project manager and functional managers, knowledge and skill improvement is fostered through the process. PSU, 2008) Disadvantages include possibilities of power struggles between the project manager and functional manager because of shared responsibilities.
There is a possibility that there will be difficulties in reaching a compromise that will uphold organizational goals and objectives and not personal agenda of putting individual ideas ahead of the other. The utilization and employment of human resources are also curtailed because participants that will be asked to join the project are selected from all departments.Moreover, staff members will be confused with varying roles assigned to them for different projects forcing them to become knowledgeable and competitive in multiple disciplines. These disadvantages complicate the concept of matrix project organizations limiting its functionality and flexibility. (PSU, 2008) Pure project organizations assign independent teams headed by a project manager assigned with specific roles and contributions for the accomplishment of organizational goals and objectives.
Project managers handle staff members and appoint them to positions and roles to accomplish the project. Unlike the matrix project organizations, project managers take full responsibility for all processes and operations comprising the project plan. The number of project managers and team that will be established is dependent on the number and extensiveness of projects. Therefore, as projects increase, there will be a need to employ other project managers and staff members under them.
(PSU, 2008) The good thing about project organizations is that it takes action to new projects immediately.Once a project is formulated, a project manager is appointed all at once with staff members under his wing to accomplish the said project. Roles are also clear and direct with a project manager solely responsible for all mechanisms. Staff members will not be confused by authority, as in the conflicting roles of functional managers and project managers in the matrix project organization.
Since full concentration is intended for the project alone, staff members are highly motivated and committed to accomplish their tasks and responsibilities.Disadvantages lack the collaborative influence of sharing resources between departments because the team works independently. Like the functional organization, project management teams and staff members may detach themselves from other departments and project management teams which influences the realization of desirable work outputs for the project. (PSU, 2008) Selecting the best organizational structure to incorporate within the organization determines success and competitive advantage.
To achieve this purpose, it is best to look at the nature, mission, and vision of the organization.There is a need to analyze the strengths and weaknesses of the organization, resources and capabilities, and most importantly competitive edge. Competitive edge looks at what the organization does best, what its expertise are, in order to determine what structure will work most excellently for it to accomplish its goals and objectives. (BYU, 2008) Functional organizations are best employed when resources for cost are limited, functional managers are more influential than project managers, time table for the project is stretched, and the priority of the organization is to strengthen its ground rather than pleasing its clients.
The structure of a functional organization is suited for purposes such as strengthening the foundations of the organization by developing knowledge, skills, and competencies of functional managers and staff members and developing cohesiveness through collaborative necessities between functional management teams and staff members. Matrix organizational structures should be implemented when the organization is highly dependent on their clients for success because it provides a quick way of addressing client needs and concerns. This approach is client-centered unlike the functional organization.In this structure, knowledgeable and skilled functional managers and staff members are selected so the organization does not focus too much on the development of personnel competencies but on the utilization of human resources to provide optimal products and services for their clients.
This is also ideal for cohesive and harmonious organizations, wherein functional managers and project managers are able to work together as a team. Pure project organizations works for organizations operating within a fast-paced corporate arena.If there is a need to pump up productivity and innovativeness, then project organizations should be implemented because it ensures fast and efficient productivity rate. Moreover, general project managers can handle multiple projects assigned to project managers. Therefore, all projects are being worked on and accomplished all at once.
In the process, the organization is also enhancing the knowledge and competencies of its personnel by engaging them with various roles and responsibilities requiring experience in multiple disciplines.
