Organisation Structure

Organisation Structure:

A project organisation is a structure that facilitates the implementation and coordination of project activities and is undoubtedly related to project success. Choosing an appropriate project management structure is crucial as the best system balances the requirements of the project with the requirements of the company. All projects are unique which is why a number of aspects should be considered when deciding the most suitable project structure design such as the organisational environment, project characteristics and level of authority. A project structure can take on various forms with each form having its own advantages and disadvantages.

There are three approaches which consist of:
1. Functional Organisation
2. Dedicated Teams
3. Matrix Structure

Identifying the project structure is only a part of organising the project. In order for the project to be successful, there must be effective implementation and application. This requires ongoing interaction, integration and collaboration among all individuals involved in the project. Having a structure in place facilitates open communication as it defines the levels of authority and the relationships among all project members. This is displayed using a graphical illustration known as an organisational chart. The organisations aim is to promote the interaction of individuals and to achieve the projects goals within the specified constraints of scope, budget, time and quality. 

Examples of organisation structures:

Book Publisher: 

Best suited - Teams operate as separate units under the leadership of a full-time project manager. In a projectised organisation where projects are the dominant form of business, functional departments are responsible for providing support for its team.

Least suited - Matrix structure.

Advertising Agency:

Best suited - Functional organisation. Different segments of the project are delegated to respective functional units. Coordination is maintained through normal management channels. Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.

Least suited - Matrix structure.

Consultancy Firm:

Best suited - Matrix structure. Hybrid organisational structure is overlaid on the normal functional structure. There are usually two chains of command (functional and project) and the project participants report simultaneously to both functional and project managers. The matrix structure optimises the use of resources and allows for participation on multiple projects while performing normal functional duties. Additionally, it achieves a greater integration of expertise and project requirements.

Least suited - Dedicated teams.