Capital University of Science and Technology,

Islamabad

CE-5823
Advanced Project Management for
Construction Projects
Week No. 11

Dr. Syed Shujaa Safdar Gardezi

Department of Civil Engineering

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 Organizational Systems :
• Projects drive change.
– Projects drive change in organizations. From a business perspective, a
project is aimed at moving an organization from one state to another
state in order to achieve a specific objective (see Figure 1-1).

Before the project begins, the

organization is commonly
referred to as being in the
current state. The desired result
of the change driven by the
project is described as the future
state.

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 Organizational Systems and Projects :

 Projects operate within the constraints imposed by the organization through

their structure and governance framework.

 To operate effectively and efficiently, one (project manager) needs to

understand where responsibility, accountability, and authority reside within
the organization.

 This understanding will help (project manager) to effectively use his or her
power, influence, competence, leadership, and political capabilities to
successfully complete the project.

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 Organizational Systems and Projects :

• Organizational System Defined:

System:
A system is a collection of various components that together
can produce results not obtainable by the individual
components alone.

Components:
A component is an identifiable element within the project or
organization that provides a particular function or group of
related functions.

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 Organizational Systems and Projects :

• Organizational System Defined:

– The interaction of multiple factors within an individual organization
creates a unique system that impacts the project operating in that
system is known as its organizational system.

– The resulting organizational system determines the power, influence,

interests, competence, and political capabilities of the people who are
able to act within the system.

– The system factors include but are not limited to:

• Management elements
• Governance frameworks
• Organizational structure types

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 Organizational Systems and Projects :

• Management Elements :

– Management elements are the components that comprise the key

functions or principles of general management in the organization.

– The general management elements are allocated within the organization

according to its governance framework and the organizational structure
type selected.

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 Organizational Systems and Projects :

• Management Elements :
– The key functions or principles of management include but are not limited to:
• Division of work using specialized skills and availability to perform work
• Authority given to perform work
• Responsibility to perform work appropriately assigned based on such
attributes as skill and experience;
• Discipline of action (e.g., respect for authority, people, and rules)
• Unity of command (e.g., only one person gives orders for any action or
activity to an individual)
• Unity of direction (e.g., one plan and one head for a group of activities
with the same objective)
• General goals of the organization take precedence over individual goals
• Paid fairly for work performed

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 Organizational Systems and Projects :

• Management Elements :
– The key functions or principles of management include but are not limited to:

• Optimal use of resources

• Clear communication channels
• Right materials to the right person for the right job at the right time
• Fair and equal treatment of people in the workplace
• Clear security of work positions
• Safety of people in the workplace
• Open contribution to planning and execution by each person; and
• Optimal morale.

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 Organizational Systems and Projects :

• Management Elements :
– Performance of these management elements are assigned to selected
individuals within the organization. These individuals may perform the noted
functions within various organizational structures.

For example, In a hierarchical structure :

– There are horizontal and vertical levels
within the organization.
– These hierarchical levels range from the line
management level through to the executive
management level.
– The responsibility, accountability, and
authority assigned to the hierarchical level
indicate how the individual may perform the
noted function within that organizational
structure.
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 Organizational Systems and Projects :

• Governance Frameworks :
Governance:

According to PMI, governance refers to organizational or structural

arrangements at all levels of an organization designed to determine
and influence the behavior of the organization’s members. The
research suggests that the concept of governance is multidimensional
and:

• Includes consideration of people, roles, structures, and policies; and

• Requires providing direction and oversight through data and feedback.

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 Organizational Systems and Projects :

• Governance Frameworks :
Governance is the framework within which authority is exercised in
organizations. This framework includes (defines) but is not limited

• Rules
• Policies
• Procedures
• Norms
• Relationships
• Systems
• Processes

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 Organizational Systems and Projects :

• Governance Frameworks :

This framework influences / effects how:

• Objectives of the organization are set and achieved,

• Risk is monitored and assessed, and
• Performance is optimized.

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 Organizational Systems and Projects :

• Organizational Structure Type :

There may be four types of organization structures in terms of project

management in a company. These are

• Functional Organization
• Projectized Organization
• Matrix Organization.
• PMO

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 Organizational Systems and Projects :
• Organizational Structure Type :
Functional Organization

• A functional organization is the most

common type of organizational
structure.
• This is where the organization is
divided into smaller groups based on
its special functions such as IT,
finance, engineering or marketing etc.
• This departmentalization allows
greater operational efficiency because
the employees have their skills and
knowledge to be shared within the
group.
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 Organizational Systems and Projects :
• Organizational Structure Type :
Functional Organization

• The basis of this functional

organization structure is an
arrangement where a worker has
different managers for different
areas of the organization
operation.

• Since this type of structure has

many departments, it could also
have several reporting structures
as well.

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 Organizational Systems and Projects :
Functional Organization – Advantages

• The team is managed by an experienced person with a high ability and

skills who can adequately understand and review the entire work.

• The team members work with other people in the field and it allows
sharing of thoughts and knowledge to make the people learn new skills.

• The members have the chance to get promoted within their functional areas
which can be a reason for them to stay long term. The company is getting
the advantage of their expertise and knowledge.

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 Organizational Systems and Projects :
Functional Organization – Advantages

• Because of people’s expertise, the workers with specialized skills can

perform tasks quickly, efficiently and with more confidence, while reducing
of work-related mistakes.

• The clear nature of the career path within the functional unit makes it
possible for employees to be highly motivated to advance their careers as
they move up within the hierarchy.

• Ideal structure for small businesses that focus on one product or service
because you can maximize performance by encouraging peer cooperation
among different units at various levels of management through supervision
and coordination.

• Specialization leads to operational efficiencies and enhances productivity

levels.
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 Organizational Systems and Projects :

• Organizational Structure Type :

Projectized Organization
In projectized organizations, organizations arrange their activities into
programs or portfolios and implement them through the projects.

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 Organizational Systems and Projects :

Projectized Organization
In this setup
• The project team members work under the supervision of the project manager
and they directly report to him.
• The project manager has the full control of everything. He has the power over
resources, assignments and budget.
• Right after the project has finished, the whole team will dissolve and all the
resources will be released.
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 Organizational Systems and Projects :

Projectized Organization – Advantages

Advantages of a projectized organization structure can be :

• There is a clear line of authority since the team members directly report to the
project manager. This reduces conflict and makes decision making faster and more
flexible.

• Due to a single reporting system, there are shorter lines of communication which
creates strong and effective communication within the project management team.

• Due to a sole authority, less time is consumed in communication, and the response
to stakeholders’ concerns is fast.

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 Organizational Systems and Projects :

Projectized Organization – Advantages

Advantages of a projectized organization structure can be :

• Due to a sense of urgency, milestones, good communication, and cooperation,

the learning curve is more rapid for any new member.

• Team members become versatile and flexible due to experience in different

kinds of projects.

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