Group of people who must coordinate

their

activities in order to meet organizational

 objectives.

• An organizational structure outlines

how

certain activities are directed to achieve the

goals of an organization.

• Successful organizational structures define

each employee's job and how it fits within
 the overall system.
4MAJ
ORFA
CTOR
STHATCAUSEDTHEONSETOFTHE

ORGANIZATION
ALREVOLUTION
01

02
 03

04
• Organizational restructuring involves
conducting an organizational assessment to

identify areas of competence, improvement, and

potential risks and applying the findings to inform strategic
solutions.

• Apoorly restructed organization can sever

 communication channels that may have taken
months or years to cultivate.

methods of operation

Buyout

• Changing • Adifferent direction

business environment

• New
3.1 ORGANIZATIONAL WORK FLOW

An organization’s workflow is comprised of the

set of processes it needs to accomplish, the set of
people or other resources available to perform those
 processes, and the interactions among them.

Whatever
Organizational form is finally selected, formal channels must be developed
so that each individual has a clear description of;
03
01 02
RESPONSIBILITY ACCOUNTABILITY

AUTHORITY The obligation incurred Being answerable for

The power is granted
to individuals so that
they can make final
decisions.
by individuals in their the satisfactory
roles in the formal completion of a
organization to effectively specific assignment.
perform assignments.
 Accountability = Authority+ Responsibility

3.2
TRADITIONAL ORGANIZATION
A traditional organizational structure follows a
system in which power flows upward through the
organization, and all employees follow a chain of
command.

• All employees follow a chain of command. Such

as a manager is the chief coordinator of all
departments.
 • Every department has its own rules and
regulations as well as and every employee
has own job description and accountability
to his superior.
• They strictly follow their own business strategy
set in the annual economic year.All the goal
achievement plans are placed before and
difficult to change. Always traditional
organization is fixed and rigid.

3.3 DEVELOPING
WORK INTEGRATION
 POSITION

To achieve organizational integration, it must align its

company strategy, culture, structure, and management

 style with its goal of

staff skills, technology,

producing energy in an ecologically sustainable

manner.

4INTEGRATINGMECHANISM
 01

02

03

04
3.4
LINE-STAFF ORGANIZATION
A line-staff organization is a structure that distributes work responsibilities from
upper management to lower-level employees. The managers establish standards for
the quality of the work and deadlines for employees to finish their tasks, and they
communicate their expectations to the team. It's the team's responsibility to meet
those expectations in the assigned time.
• The prime responsibility of the project manager

is to keep the division manager informed of the

status of the project.

• Department managers refused to take direction

from the project managers because to do so

would seem an admission that the project

manager was next in line to be the division

manager.

• The project managers can assign work to

individuals in functional organizations.

3.5 PURE PRODUCT ORGANIZATION

A pure product organization consists of a separate division

for a separate line of products. Each division has its own
manager and employee team and the managers work under
the authority of one general manager.
• The project manager (for each division) assigns the tasks and
responsibilities to the members of his/her division and reviews
their performance. As the employees have to report to only
one boss, strong communication exists between the manager
and the employees.
• The major advantage of this organizational flow is that one
individual, the program manager, maintains complete line
authority over the entire project. Not only does he assign work,
but he also conducts merit reviews. Because each individual
reports to only one person, strong communication channels
develop that result in a very rapid reaction time.
• Amajor disadvantage of pure product organization is that there
is no chance of cost reduction. This is due to the fact that each
division has its own team and resources are not shared
 among the divisions.

3.6 MATRIX ORGANIZATIONAL FORM

A matrix structure is a combination of two or more types of

organizational structures. It is a way of arranging your
business so that you set up reporting relationships as a grid,
or a matrix, rather than in the traditional hierarchy.

Matrix
Why isamatrix
organizations bring together skills and
organizationused?
knowledge separated into different functions to
support specific products and projects while
retaining functional units, such as finance and
marketing.
Whatarethe
characteristicsofa
matrixorganization?

Organizations that use a matrix organizational

structure retain functional areas, such as
HowdoesMatrix Organizationwork? operations, finance, marketing, research and
development, and human resources, forming combining functional and project based
cross-functional teams to support specific structures to have individual employees report to
products. As a result, individual employees report a manager in a functional area and a product
to two managers: a functional area manager and a manager (or a project manager) in another
product manager (or a project manager) in business unit.
another business unit.

A matrix organizational structure works by

 MODIFICATION OF
MATRIX STRUCTURES

❑Modified matrix
 structures are organizational structures
which combine elements of both functional
and matrix structures.

The Manager of
Project Managers (M.P.M.)

o is a project manager, a people manager, a change manager and a

systems manager. In general, one role cannot be considered more
important than the other.
o has responsibilities for managing the projects, directing and leading
people and the project management effort, and planning for change in the
organization.

The main reason for separating project management from project engineering is
 so that the project engineer will remain “solid” to the director of engineering in
order to have the full authority to give technical direction to engineering.

CENTER FOR PROJECT

MANAGEMENT
EXPERTISE
001To develop and update a methodology for project
management. The methodology usually advocates
informal project management.

The center for

002To act as a facilitator or trainer in conducting
project management training programs.
expertise has as its charter:
003To provide project management assistance to
any

employee who is currently managing projects and

requires support in planning, scheduling, and
controlling projects.

004To develop or maintain files on “lessons learned”to see that this information is made available to all
and project managers

SELECTING THE
ORGANIZATIONAL FORM
Project management approach can be effectively applied
to a onetime undertaking that is:
 of a specific goal respect to
Infrequent, unique, interdependence of
or unfamiliar to the detailed tasks
present Critical to the
organization company
Definable in terms Complex with
The basic factors that influence the selection of a project
organizational form are:

Project size Project

length
Project

location Available resources

Experience
with project
management aspects of
organization the project
Philosophy and visibility of
upper-level
management

Unique

STRUCTURING THE
SMALL COMPANY
Small and medium companies generally prefer to have the project manager
report fairly high up in the chain of command, even though the project
manager may be working on a relatively low-priority project.
 STRATEGIC BUSINESS UNIT
(SBU) PROJECT
MANAGEMENT

❑ SBU is a grouping of functional units that have the responsibility for profit (or loss) of
part of the organization’s core businesses.

❑ The major benefit of these types of project management SBUs is that it allows the SBU
to work more closely with the customer. It is a customer-focused organizational
structure.
 TRANSITIONAL
MANAGEMENT
Transitional management is the art and science
of managing the conversion period from one
organizational design to another.

Transitional management necessitates an

understanding of the new goals, objectives,
roles, expectations, and employees’ fears.

Fifteen challenges must be accounted for

during transition:
 Personnel problems demands

Transfer of power
Reporting
Communications

Trust
Teamwork
Project manager
acceptance
Policies and
procedures Theory X–Theory Y
Competition
Hierarchical
consideration Overmanagemen
t costs
Tools
Contradicting
Priority scheduling

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