One of the challenges in project management is to identify the appropriate organisational structure in which...

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General Management

One of the challenges in project management is to identify theappropriate organisational structure in which to manage theproject.
Briefly outline the different types of organisationalstructures that exist in which projects can be managed. ex : matrixstructure,functional organizational and dedicated projectteam
Identify the key criteria that will influence the choice oforganisational structure for a project.

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Different types of organisational structures that exist in which projects can be managed are A common way to differentiate between business organizational structures is between ongoing operational work versus capital projects Operational work maintains an existing sales channel whereas projects are onetime unique expenditures with a defined budget beginning and end dates and they accomplish a specific goal There are four types of organizational structures each of which has their own unique set of influences on the management of the organizations projects Functional Project Matrix Composite Functional Most organizations are divided along functional lines that is each division is organized by work type such as engineering production or salesIn the functional organizational structure projects are initiated and executed by the divisional managers who assume the project manager duties in addition to their regular functional roles They are often given secondary titles such as Coordinator of Project X In this structure project managers usually dont have alot of authority to obtain resources or to manage schedules and budgets They must obtain approvals to utilize resources from other departments which can be a complex undertaking This is because the functional organization is designed to focus on the provision of the divisional services rather than project deliverables ProjectOriented On the other end of the scale is the projectoriented organization These companies do most of their work on a project basis and are therefore structured around projects This includes construction contractors architectural firms and consultants Project managers are usually full time in the role and for small projects they might manage several projects at once In this structure project managers usually have a great deal of independence and authority They are able to draw on resources with little required approval In fact most of these types of organizations have some form of functional divisions which are placeholders for resources that can be utilized by all projects They are usually called departments For example at an engineering firm the geotechnical department is available as an expert resource to all projects within the firm Matrix Although the projectoriented and functional structures are at opposite ends of the spectrum it is possible to be located somewhere in between a hybrid In fact most organizations are along some level of the spectrum utilizing a structure that gives project managers a bit more authority without losing focus on the provision of functional services In the typical matrix structure a project manager is assigned from within one of the functional departments in either a part time or full time capacity They are assigned project team members from various departments who are released from their departmental duties at least partially Thus a high priority can be placed on the project while maintaining the functional division services However the project manager and team members are still paid by their See Answer

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