Selecting the Best Organization

The central issue in choosing a project organizational structure is to determine the quality of work to be carried out, according to the initial selection of project objectives and identification of the tasks necessary to implement each goal.

In general, you can follow the following steps in choosing the organizational structure of the project:

1. Identify the goals of the project that need to be achieved.

2. Identify key tasks for each of these goals, and iden­tify functional units in the head office that can perform these tasks.

3. Figure the order of the main tasks, and then configure the work package from them.

4. Determine which parts of the project will perform business groups and which will work with the other.

5. Make a list of the main characteristics of the project, for example the level of technology required, size and execution time is expected. If there is no problem in allocating the resources, this will avoid any politi­cal problems that might occur between the different functional departments who will be involved in the project. Finally previous experience of the company will affect the project organization.

Figure 5.2 Organization chart on site.

6. Based on full knowledge of the disadvantages and advantages of different organizations, one can select the appropriate organizational structure for the project.

The best choice of project-organization type depends ultimately and crucially on actual circumstances. There are no detailed steps that can be considered instructions to determining which type of organization is needed and how to build the project. There is this fundamental rule-of-thumb that should inform an optimal selec­tion, and-or design, of organizational structure: take into account the nature of the project and the characteristics of the available and most relevant organizational types, and carefully weigh the advantages and disadvantages of each.

Single-project organization is most suited to conditions in which a company operates a large number of similar projects, such as con­struction. Single-project organization is generally appropriate for projects that are unique and where privatization is high. It func­tions individually, and requires careful control, because it is not necessarily integrated into any department’s standard operating procedure within the larger organization.

Matrix-type organization is best-suited to conditions in which a project requires the integration of many functional departments, includes high-tech, but does not require that all the technicians are working full-time professionals. But it does mesh complex and puts the project manager in difficult situations and therefore can be avoided when a structure is simple.