Government

Project
Management
BY:
PRACHI AIREN (2K20/UMBA/25)
ROHIT SINGH (2K20/UMBA/33)
Organisation Structure

A major government agency

is organized to monitor
government subcontractors
as shown here

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 About the Case
Below are the vital characteristics of certain project office team
members:

Assistant project
Project manager Department managers Contracts officer
manager
• Directs all project • Acts as chairman of • Act as members of the • Authorizes all work
activities the steering committee steering committee for directed by the project
• Acts as the information • Interfaces with both in- any projects that utilize office to inhouse
focal point for the house functional their resources. functional groups and
subcontractor. groups and contractor. • These slots on the to the customer, and
steering committee ensures that all work
must be filled by the requested is
department managers authorized by the
themselves, not by contract.
functional employees. • The contracts officer
acts as the focal point
for all contractor cost
and contractual
information 3
Terminology
Organisation Structure: organizational structure is used to determine the hierarchy and authority of people
involved in a specific project. The structure defines each team member’s function and the reporting lines on a chart for
team members to reference during a project.

Steering committee: A project Steering Committee is the key body within the governance structure which is
responsible for the business issues associated with the project that are essential to the ensuring the delivery of the project
outputs and the attainment of project outcomes

Manager Department: Department Manager means and refer to the employee under the direct supervision of the
General Manager, who has been assigned as the Department Manager with a specific area of responsibility.

Horizontal Organisation structure: Organizations with these structures often have few managers with many
employees, and they allow employees to make decisions without needing manager approval.

Vertical organisational structure: Vertical organizational structure is a pyramid-like top-down management

structure. These organizations have clearly defined roles with the highest level of leadership at the top, followed by
middle management then regular employees.  4
TYPES OF ORGANIZATIONAL
STRUCTURE

This one is the combination of a project and functional organization. This hybrid organization overcomes the
limitations of each organization. Here, both the functional and project managers share their respective
authorities.
Project managers are generally responsible for
•     Overall integration
•     Project planning
•     Execution of the project, and
•     Completion of project activities
All activities must be done using the assigned resources.
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MATRIX ORGANISATION

Strong Matrix Organization Weak Matrix Organization

Balanced Matrix Organization

• Reasonable authority to project manager.
• Power enjoyed by the functional as well as project manager in the same
manner.
• Resources working on the project face a complex communication.
• It is not clear – whom to report and who is the real boss.

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 QUESTIONS:
1. Explain how this structure should work.
2. Explain how this structure actually works.
3. Can the project manager be a military type who is
reassigned after a given tour of duty?
4. What are the advantages and disadvantages of this
structure?
5. Could this be used in industry?
1 Explain how this structure should work .
• A matrix organization is a company structure where teams report to multiple leaders. The matrix design keeps open
communication between teams and can help companies create more innovative products and services. Using this structure
prevents teams from needing to realign every time a new project begins.

• The provided organization chart is typical of project organizations such as the urban development or housing construction or NHAI
or TERI.

• It is a matrix structure (balanced matrix) in which the individual employees have dual reporting i.e. functional reporting to the
department managers and project reporting to the assistant project manager or the project manager.

• In this type of reporting structure, an individual resource or employee is frequently involved in numerous projects at the same time,
and resource allocation is based on the project's schedules, timelines, and requirements.

• Resource planning is often done ahead of time in this type of organisation structure, and the amount of resources required and
expected days are conveyed to the various departmental managers, who then distribute resources based on availability and
suitability..
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Example

Executing Agency
The United Nations Development Program (UNDP) is the Executing
Agency of the project.
Implementing Partner
The Ministry of Environment and Forests (MoEF) is the implementing
partner for the project.
Responsible Partner for Implementation
The Energy and Resources Institute (TERI) has the overall
responsibility for the implementation of project activities. TERI
coordinates and facilitates the project activities in all the five regions.
TERI provides guidance and directions for project implementation.

Energy efficiency improvement in Indian

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Brick industry.
Project Steering Committee
A Project Steering Committee (PSC) with members from MoEF, UNDP, TERI, BEE (Bureau of Energy Efficiency) and SDC (Swiss
Agency for Development and Cooperation) has been constituted at the apex level to review the progress and provide direction and
guidelines for implementation of the project. The functions of the PSC include the following:
• Ensure that the project goals and objectives are achieved in a defined timeframe
• Review the project progress and suggest implementation strategies periodically
• Review the project expenditures against activities and outcomes
• Approve Annual and Quarterly Work Plans

The PSC will be responsible for taking, by consensus, management decisions for the project and holding periodic reviews.

National Project Director

The Joint Secretary, MoEF, is the National Project Director of the project. The NPD will coordinate project implementation on behalf
of Ministry of Environment & Forests and ensure its proper implementation.

Project Manager
The Project Manager has been designated from TERI for the day-to-day management and decision making of the project and will be
accountable to the NPD and PSC. He prepares the detailed activity and monitoring plan based on the Annual Work Plan (AWP) and
Budget and submits it to the PSC for approval. The Project Manager ensures that the project produces the results specified in the
project document, to the required standards of quality and within the specified constraints of time and cost.

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2 Explain how this structure actually works .
• Although the organisation structure is ideal for a project-driven corporation, the main disagreements that would develop in
this structure are reporting conflicts originating from differing functional and project reporting, resource limits, or resource
underutilization.

• As project managers rely on departmental managers to assign functional workers or resources, it is the responsibility of
departmental managers to distribute resources appropriately to fulfil project deadlines. However, for a variety of reasons it
can fail, including -

1. Failure to establish the project's priority

2. Interpersonal relationships with project managers
3. Departmental priorities, such an allocation may not be the best, causing projects to be harmed.

As a result, it's not uncommon to see some resources underutilised and others stretched to their maximum in this type of system.

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3 Can the project manager be a military type who is reassigned after a given
tour of duty?

Ans: YES

The project manager is in charge of delivering a specific project in this sort of organisation structure, even if the
organisation is working on multiple projects at the same time.

• The project manager's role is to ensure smooth coordination among all agencies and interfaces with departmental
managers
• He may not be directly involved in resource management issues, which are handled by departmental managers in this
case; however, the project manager can be reassigned without halting project progress.

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4
What are the advantages and disadvantages of this structure?

Main advantages:-
1. Clear project objectives with free flow of
information.
2. Modular organization structure where in resources
can be allotted or removed in a flexible manner
3. Resource management primarily the responsibility
of domain experts such as departmental managers
4. Well laid down rules & procedures for interfacing
with agencies and escalation matrix clearly defined
in case of non-compliance
Main disadvantages:-
1. Dual reporting of Function and project may cause
ambiguity for individual employees / resources
2. Inter project competition for best resources may
lead to suboptimal allocation
3. Project manager may not have full control over
resources in the project, which may lead to
project being affected
4. Complex reporting style with juggling priorities.

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5 Could this be used in industry?

With slight alterations, this structure can be employed in the industry, where project managers working on various projects
report directly to the VP of projects, who in turn reports to the organization's CEO.

In this way, if numerous projects are fighting for the same resources, there is a well-defined hierarchy for resolving conflicts .

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 Example
An electronics manufacturing company, which is presently
working on four different projects, each having its project
manager (who are the senior engineers in the team).

However, the company has a single team of functional

managers to look after the operations. The organization has a
matrix structure to handle all the projects effectively.

Therefore, each executive works under his/her respective

project manager, along with the functional manager.

Here, we have the company’s CEO as the ‘matrix leader’. VP’s

as Functional managers. Project managers and the various
executives working under these managers are termed as matrix
employees.

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 Example

￮ A major government industry like:

 Ministry of Urban Development
and Housing Construction.

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THANK YOU!

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