Project Organization as Part of the Company

This organizational form is used often for small projects that are within the company itself, such as industrial projects that entail increasing the product line, expanding the plant, or creating a new production line.

In this case, the project manager eeds to define the departments that are responsible for the project. This organization is also used in a type of project that contains new technology, such as buying a new advanced machine in which the supervision of the proj­ect rests and operation will be with the engineering management responsibility.

According to this schema, one of the departments will manage the project. This department will have daily work performed by individuals, and the department shall be responsible for the proj­ect and report to senior management of the company. Now let us consider what the advantages and disadvantages are to this type of organization.

The most important features can be summarized as follows:

• We can easily transport the personnel to and from the project. This greatly simplifies the processes whereby experiences are exchanged and modern technology is transferred to the largest audience among company employees.

• Being already part of the company, the workforce is readily deployable for project tasks

• Individuals working on the project are operating in the same functions that they normally would, and therefore their presence in the project will enhance the promotion of individuals

• Increasing the experience of individuals who work in the project will increase the benefit to each individual and the company as a whole.

The disadvantages to this type of organization are as follows: [2]

• Project lines of accountability and departmental lines of accountability may fail to be adequately distin­guished or synchronized. This organization, in most cases, will not be given responsibility for a specific individual, where that work will be responsible from the whole department, so may be two persons work in the same activity in the project. So, may be one of them busy in the department regular activities or in vacation, so the work may be reviewed by more than one person, all that will cause a loss of accountability in the project.

• If or when senior management consider the project just an extension of their usual routine work, the moti­vation of a working group towards completing project objectives may not be able to play its proper role.