INTRODUCTION TO

PROJECT MANAGMENT

1
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What is a project?
A project can be defined as ..
..and endeavour in which human (or machine),
material and financial resources are organised in a novel
way, to undertake a unique scope of work, or given
specification, within constraints of cost and time, so as to
deliver beneficial change by quantitative and qualitative
objectives
Unique process consisting of a set of coordinated and
controlled activities with start and finish dates, undertaken
to achieve an objective conforming to specific
requirements, including constraints of time, cost, quality
and resources
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What is a project?
According to Project Management Institute, U.S.A
A Project is a one-shot, time limited, goal directed,
major undertaking, requiring the commitment of varied
skills and resources.
It has also been described a s a combination of human
and non human resources pooled together in a temporary
organization to achieve a specific purpose. The purpose
and the set of activities which can achieve that purpose
distinguish one project form another.
For example:
cement project, manufacturing, Power project, refinery
projects, Health project, Educational projects, Social
project, construction projects etc.
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What is a project? Contd

According to J. Price Gettinger
A specific activity with a specific starting point and a
specific ending point intended to accomplish a specific
objective. It is something you draw a boundary around at
least a conceptual boundary and say this is the Project.

According to United Nations

Compilation of data which will enable an appraisal to be
made of the economic advantages and disadvantages
attendant upon the allocation of countrys resources to
the production of specific goods and services.
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The nature of projects

There are many types of project which we will
identify later in this session
Whatever the nature of the project there are
three core issues which need to be addressed:
Quality

Cost

Time

In addition, projects invariably take place in a

context which includes organizational politics,
individuals personal objectives and external,
commercial or stakeholder pressures.
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The project basics

Organisational politics

Cost
Personal Business
Objectives Pressures
Quality Time

External and stakeholder

issues
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Features / Characteristics of Project

A project can be identified by its features. The special
features of a project that would differentiate from any other
on going activity are given below:
1. Objective: A project fixed set of objectives. Once the
objectives have been achieved, the project ceases to exist.
2. Life span: It has a specific life span. It means a project
cannot continue endlessly, it has come to an end.
3. Single Entity: A project is one entity and is normally
entrusted to one responsibility centre while the
participants in the projects are many.
4. Team work: A project calls for team work; the team
again is constituted of members belonging to different
disciplines, organizations and even different countries.
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Contd..
5. Life Cycle: A project has a life cycle reflected by growth,
maturity and decline similar.
6. Uniqueness: No two projects are exactly same. The
location, the infrastructure, the agencies and the people
make each project unique.
7. Change: Change is an inherent feature in any project out
its life.
8. Successive Principle: Project is based on successive
principle and hence it is difficult to learn fully the end
results at any stage.
9. Made to Order: A project is always made to the order of
its customers. The customer stipulates various
requirements and inputs constraints with in which the
target must be executed.
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Contd..
10) Unity in Diversity: A project works for a specific set of
goals with the complex set of diversified activities. The
varieties are in the term of technology, machinery etc.
11) High level of sub-contracting: High level of sub-
contraction of work can be done in a project. The more
the complexity of the project the more will be the extent
of sub-contracting.
12) Risk and Uncertainty: Every project has risk and
uncertainty associated with it.
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Types of Project
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Types of Project Contd..

Figure (above) shows the various categories into which
industrial projects may be fitted.
The location, type, technology, size, scope and speed are
normally the factors which determine the effort needed in
executing a project.
Though the characteristics of all projects are the same,
they cannot be treated alike. Classification of project helps
in graphically expressing and highlighting the essential
features of the project. Projects are often categorized in
terms of their speed of implementation as follows:
Normal Projects

Crash Projects

Disaster Projects
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Types of Project: Normal Projects

Features of this category of project are:
Adequate time is allowed for implementation.

All the phases in a project are allowed to take

their normal time.

Minimum requirement of capital.

No sacrifice in terms of quality.

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Types of Project: Crash Projects

Features of this category of project are:
Requires additional costs to gain time.

Maximum overlapping of phases is encouraged.

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Types of Project: Disaster Projects

Features of this category of project are:
Anything needed to gain time is allowed in

these projects.
Around the clock work is done at the
construction site.
Capital cost will go up very high.

Project time will get drastically reduced.

No competitive bidding is resorted too.

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Classification of Project
The project can be classified on several basis. Major
classification of the projects are given below:
1. On the basis of Expansion
1. Project expanding the capacity
2. Project expanding the supply of knowledge.
2. On the basis of Magnitude of the resources to
be invested
1. Giant projects affecting total economy
2. Big projects affecting at one sector of the economy
3. Medium size projects
4. Small size projects (depending on size, investment &
impact).
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Classification of Project contd..

3. On the basis of Sector
1. Industrial project
2. Agricultural project
3. Educational project
4. Health project
5. Social project.
4. On the basis of Objective
1. Social objective project
2. Economic objective project.
5. On the basis of Productivity
1. Directivity productive project
2. Interactively productive project.
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Classification of Project contd..

6. On the basis of nature of benefits
1. Quantifiable Project
2. Non-quantifiable Project.
7. On the basis of government priorities
1. Project without specific priorities
2. Project with specific priorities.
8. On the basis of dependency
1. Independent project
2. Dependent project.
9. On the basis of ownership
1. Public sector project
2. Private sector project.
3. Joint sector project
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Classification of Project contd..

10. On the basis of location
1. Project with determined location
2. Project with future impact.
11. On the basis of social time value of the project
1. Project with present impact
2. Project with future impact.
12. On the basis of risk involved in the project
1. High risks project
2. Normal risks project
3. Low risks project.
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Classification of Project contd..

13. On the basis of economic life of the project
1. Long term project
2. Medium term project
3. Short tern project.
14. On the basis of technology involved in the project
1. High sophisticated technology project
2. Advance technology project
3. Foreign technology project
4. Indigenous technology project.
15. On the basis of resources required by the
projects
1. Project with domestic resources
2. Project with foreign resources
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Classification of Project contd..

16. On the basis of employment opportunities
available in the project
1. Capital intensive project
2. Labour intensive project.
17. On the basis of management of project
1. High degree of decision making attitude
2. Normal degree of decision making attitude
3. Low degree of decision making attitude.
18. On the basis of sources of finance
1. Project with domestic financing
2. Project with foreign financing
3. Project with mixed financing
4. Project with financial institutions.
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Classification of Project contd..

19. On the basis of legal entity
1. Project with their own legal entity
2. Project without their own legal entity.
20. On the basis of role played by the project
1. Pilot project
2. Demonstration project.
21. On the basis of speed required for execution
of the project
1. Normal project
2. Crash project
3. Disaster project.
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Measures of Project Success

The resulting information system is

acceptable to the customers (e.g. users,
managers).
The system was delivered on time.

The system was delivered within budget.

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Measures of Project Failures

Failure to establish upper-management

commitment to the project
Lack of organizations commitment to the
methodology
Taking shortcuts through or around the
methodology
Poor Project management:
Feature creep
Scope creep
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Some examples of Project Initiatives

Redesigning or relocating a production facility (Manufacturing
Project)
Implementing a management information system (MIS Project)
Developing a new alloy required for a space vehicle. (Spacecraft
Project)
Constructing national highways (Infrastructure Project)
Organizing the Olympics (Sports project)
Constructing a dam for better irrigation facilities. (Infrastructure
Project)
Launching of new product (Advertising and Marketing Project)
Implementing a new computer system (IT project or upgrade)
Designing and Implementing a new organizational structure (HR
Project)
Designing and Constructing a house or colony (Construction
Project)
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Project Life Cycle

What is Project Life Cycle?

The attention that a project receives isnt
uniformly distributed throughout its life span
but varies from phase to phase.
Most projects pass through the following
five phases, which tend to overlap at times:

Planning
Conception Definition & Implementation Clean-up
Organising
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Significance of Project Life Cycle

It defines:
The phases of the project (time)

The work performed in each phase (work)

The input and output of each phase (result)

The milestone of each phase (end sign)

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Phase I: Conception/Initiation Phase

Conception is the phase during which the project

idea finds genesis and germinates, out of:
the need to solve a problem,
the observance of ones environment,
the drive to innovate something new.

This phase is essential and if flawed, it may lead to

defective and dysfunctional projects.

A well conceived project goes a long way towards

successful implementation and operation
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Phase II: Definition Phase

The definition phase of the project involves

developing the idea generated during Conception
phase.

It produces a document describing the project in

sufficient detail, covering all necessary aspects like
the manpower, materials, machinery, layout,
utilities and feasibility.

It clears most of the ambiguities and uncertainties

about the formation made in the previous phase.
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Phase III: Planning and Organising Phase

This phase starts almost immediately after the

conception phase and overlaps with both definition
and implementation phases.

This phase involves the preparation for the project

to take off smoothly and effects many decisions
related to the project basics.

It involves both Core planning and facilitating

planning.
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Core Planning
Scope Definition

Activity Definition

Activity Sequencing

Activity Duration Estimating

Schedule Development

Resource Planning

Cost Estimating

Cost Budgeting

Project Plan Development

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Facilitating Planning
Quality Planning

Organizational Planning

Staff Acquisition

Communications Planning
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Phase IV: Implementation Phase

This phase is a period of hectic activity. During
this period, the idea starts materializing physically
and tangibly and for the first time, the project can
be seen off the paper.
Usually, 80-85 percent of the project work is done
in this phase using all techniques of project
management.
The various sub phases of this phase, which often
overlap, are as following.

Engineering Procurement Construction Commissioning

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Implementation Phase contd

Project Plan Execution
Complete Work Packages
Information Distribution
Scope Verification
Quality Assurance Team Development
Progress Meetings
Source Selection
Contract Administration
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Controlling
Controls are performed to regularly measure
project performance, to adjust project plans and
take preventive actions in anticipation of possible
problems

Where we are?
(measurement)

How can we get Where we

on track again? planned to be?
(correction) (evaluation)
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Phase V: Clean-up/Termination Phase

This is the transition phase in which the project is

handed over to the operators and/or agencies
responsible for maintaining it.

This phase is a clean up task in which all project

accounts are closed, Outstanding payments are
settled and dues are collected.

All previous phases involve compartmentalized

disposition of the project personnel and that task is
winded - down in this phase.
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Clean-up/Termination Phase contd.

Administrative Closure generating necessary
information to formally recognize phase or project
completion.
Contract Close-out completion and delivery of
project deliverables and resolving open issues. It
includes:
Purchase Audits
Product Verification
Formal Acceptance
Lessons Learnt
Update of Records
Archives of Records
Releasing the Project Team
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Synopsis of Project Life Cycle

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What is a Project Management?

The art of organising, leading, reporting and
completing a project through people.

A project is a planned undertaking

A project manager is a person who causes things to
happen
Therefore, project management is causing a planned
undertaking to happen.
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What is Project Management?

Managing a project is called Project Management.
According to PMI
PM is the application of knowledge, skills, tools and
techniques to project activities in order to meet or
exceed stakeholder needs and expectations.
PM includes
defining project goals,

specifying how the goals will be accomplished,

what resources are needed, and relating budgets and

time for completion.
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Project Management Objectives

Coordinate the various interrelated processes of the
project.
Ensure project includes all the work required, and only the
work required, to complete the project successfully.
Ensure that the project is completed on time and within
budget.
Ensure that the project will satisfy the needs for which it
was undertaken.
Ensure the most effective use of the people involved with
the project.
Promote effective communication between the projects
team members and key stakeholders.
Ensure that project risks are identified, analyzed, and
responded.
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Why Project Management?

The decision on whether or not to set up a separate
project management division is subjective as it
depends upon various factors some of them are:
Interactions or interdependencies between various
departments.
Sharing of common resources

The importance of the project to the organization

Size of the project

Degree of unfamiliarity with the work involved

and its complexity
Changes in the market and

The reputation of the organization

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Functions of Project Management

Scoping: setting the boundaries of the project
Planning: identifying the tasks required to
complete the project
Estimating: identifying resources required to
complete the project
Scheduling: developing a plan to complete the
project
Organizing: making sure members understand their
roles and responsibilities
Directing: coordinating the project
Controlling: monitoring progress
Closing: assessing success and failure
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Steps in Project Management

Project Management basically consist of the following steps:
1. Grouping work into packages which acquires the properties of
a project. This means that the works so grounded are related
on each other, contribute to the same goals and can be bound
by definite time, cost and performance targets.
2. Entrusting the whole project to a single responsibility centre
known as the project manager, for coordinating directing and
controlling the project.
3. Supporting and servicing the project internally and externally.

4. Building up commitment through negotiations, coordinating

and directing towards goals through schedules, budgets and
contracts.
5. Ensuring adherence to goal through continuous monitoring
and control using schedules, budgets and contracts as the
basis.
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Benefits of Project Management

Project management helps to avail the following benefits:
Identification of functional responsibilities to ensure that all
activities are accounted for regardless of personnel
turnover.
Minimizing the need for continuous reporting.

Identification of time limits for scheduling.

Identification of a methodology for trade-off analysis.

Measurement of accomplishment against plans.

Early identification of problems so that corrective action

may follow.
Improved estimating capability for future planning.

Knowing when objectives cannot be met or will be

exceeded.
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Obstacles in Project Management

To enjoy the various benefits of project
management given above, the following obstacles
be overcome carefully.

Project complexities
Execution of customers special requirements
Organisation restructuring is a typical task
Project risks
Changes in technology
Forward planning and pricing.
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Managing the Project Scope

The scope of the project determines the boundaries of the
project.
The scope specifies what features/ a characteristic of the
project product is included and what is not included.
In project management there are actually two different
scopes.
Product Scope, which is what the end result of the project
will create. The product scope is what customers focus
onwhat they are predicting the firm to create. The
product scope describes the thing or service that will exist
as a result of undertaking the project.

Project Scope, on the other hand, describes all the work to

create the product scope. It includes all of the work, and
only the required work, to complete the project
deliverable.
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Managing the Project Scope contd

Project Manager and the client prepares project

scope and deliverables.
The project manager then prepares a Project
Overview Statement based on the list of
deliverables.
The POS will be sent to the firms top
management for approval.
The PM prepares a Project Definition Statement
with his team members that can be used as a
reference in executing the project.
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Project Manager
The person who is responsible for the
project and will be held accountable for
its success or failure.
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Project Manager contd

A project manager is a person who has the overall
responsibility for the successful initiation, planning,
design, execution, monitoring, controlling and closure of
a project.
A project manager is a person who is responsible for
making decisions, both large and small. The project
manager should make sure they control risk and minimise
uncertainty. Every decision the project manager makes
must directly benefit the project.
The project manager must have a combination of skills
including an ability to ask penetrating questions, detect
unstated assumptions and resolve conflicts, as well as
more general management skills.
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Who should be the Project Manager?

In any organization we find two types of people:
1. Those who give excellent ideas from their knowledge and
experience but are not very good at getting things done and
2. Those whose are good at handling men and matters, but are
not as sound as the former in technical matters.
People who have great ideas are not necessarily good
implementers.
The manager of a project should be one who can work
effectively with different groups of people, interact with
various departmental heads, and integrate all the functions to
get the project move.
Harold Kerzner calls the first type of people Project
Champions and the Second Project Manager.
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Project Manager Vs Line Managers

There is always a constant tussle between the line managers
and the project manager to share the organizations
resources like;
Money, Manpower, Equipment, Facilities and
Information Technology.
Manpower is controlled by Line Managers.
Allocation of manpower will be done by Line Managers
based on the request made by Project Manager.
Employees provided to Project Manager continue to report
to Line Manager and give preference to the commands of
the Line Manager over the Project Manager.
Success of Project depends on good working relationship
between PM and LM
 1-52

Project Manager Role & Responsibilities

Define and manage customer expectations.

Coordinate development of the project plan.
Monitor and control project work according to the
approved plan.
Communicate project status by preparing status
reports and conducting progress review meetings.
Establish and follow a change management process.
Lead the project team and resolve conflicts between
team members.
Maintain the project notebook.
Conducting project close-out activities.
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Project Manager Skills

Communication Skills: Listen, persuades

Organization Skills: Plans, set goals, analyzes
Team-building Skills: Shows empathy,
motivates, promotes esprit de corps
Leadership Skills: Set examples, provide vision
(big picture), delegate, positive, energetic
Coping Skills: Flexible, creative, patient,
persistent
Technology Skills: Experience, project
knowledge
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Project Management Framework

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Project Stakeholders
Stakeholders are the people involved in or
affected by project activities
Stakeholders include
the project sponsor and project team
support staff
customers
users
suppliers
opponents to the project
 1-56

Project Management Knowledge Areas

Knowledge areas describe the key competencies

that project managers must develop
4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
All knowledge areas are important!
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Knowledge Areas
A project manager is responsible for applying and managing the
following ten knowledge areas:
Identify, define, combine, unify and coordinate activities within the Project Management Process
Integration Groups

Scope Ensure the project includes all work required to complete the project successfully

Time Manage the timely completion of the project

Manage the planning, estimating, budgeting, financing, funding, monitoring, and controlling of
Cost cost to enable the project to be completed within the approved budget

Determine quality policies , objectives, and responsibilities so that the project will satisfy the needs
Quality for which it was undertaken

Organize, manage, and lead the project team, including the identification of roles, responsibilities,
Human Resources required skills, and reporting relationships

Ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval,
Communication management, control, monitoring and disposition of project information

Identify and assess risks, plan responses, and control risk to increase the likelihood and impact of
Risk positive events and decrease the likelihood and impact of negative events on the project

Purchase or acquire and control products, services, or results needed from outside the project
Procurement team

Identify people, groups, or organizations that could impact or be impacted by the project; analyze
Stakeholders expectations, and develop strategies to engage stakeholders in decisions and activities
 1-58

Tools & Techniques for Project Management

Project management tools and techniques assist project
managers and their teams in various aspects of project
management.
Project Management has a special set of techniques. But
project management like any functional management is
not technique only.
The techniques are the scientific part of the management;
but then there is also the art and politics of management,
and one could ignore them only to ones risk.
The techniques, therefore, may provide only as to what
is to be done, but it will require additional knowledge as to
how it should be done and get it done through people.
There are several techniques which would contribute
significantly towards effective project management. These
can be broadly grouped under the following heads:
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Tools & Techniques for PM contd.

1. Project selection techniques
Cost benefit analysis

Risk and sensitivity analysis

2. Project execution planning techniques

Work breakdown structure (WBS)

Project execution plan (PEP)

Project responsibility assignment matrix (PRAM)

Project management manual

3. Project scheduling and coordinating techniques

Bar charts

Life cycle curves

Line of Balance (LOB)

Network Techniques (PERT/CPM)

 1-60

Tools & Techniques for PM contd.

4. Project monitoring and progressing techniques
Progress measurement technique (PROMPT)

Performance monitoring technique (PERMIT)

Updating, reviewing and reporting technique (URT)

5. Project cost and productivity control techniques

Productivity budgeting technique

Value engineering (VE)

COST / WBS

6. Project communication and clean-up techniques

Control room

Computerised information systems

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Project Management Tools and Technique

Knowledge Area Tools & Technique Examples

Integration Management Project selection methods, project management
methodology, project charters, stakeholders analysis,
project management plans, work authorization
systems,
Scope Management Project scope statements, statements of works,
requirements analysis, WBS, scope change control,
Time Management Gantt Charts, Project Network Diagrams, Critical
Path Analysis, PERT, milestone reviews,
Cost Management Net present value, return on investment, payback
analysis, business cases, earned value management,
project portfolio management, cost estimates, cost
management plan, financial software
 1-62

Project Management Tools and Technique

Knowledge Area Tools & Technique Examples

Quality Management Six Sigma, Quality Control Charts, Pareto Diagrams,
Fishbone/Ishikawa Diagrams, Quality Audits, Maturity
Models, Statistical Methods
Human Resources Motivation techniques, responsibility assignment
Management matrices, Emphatic listening, team contracts, resources
histograms, resources leveling, team building exercises
Communications Communication management plan, project Web sites,
Management conflict management, Templates, status reports,
Procurement Make-or-buy analysis, contracts, sources selection,
Management requests for proposals or quotes, negotiating, e-
procurement
Risk Management Risk management plan, probability/impact matrix, risk
ranking, Monte-carlo simulation, top-ten risk item tracking
 1-63

A sample PERT project management plan

4
1 month 3 months
D F
3 months 2 months
1 2 5
A E
B C
4 months 3 months
3

There are five milestones 1 to 5 and six activities A to F which are

estimated to take 1,2,3 or 4 months as shown. The minimum time
for project completion is the CRITICAL PATH of 7 months shown
as a thick lines.
 1-64

Project Management In India

Project Management has been adopted in India

after Independence.
Right from the inception, it has been a failure in
India.
Severe time and cost overruns have been the
characteristic features of projects, particularly in
the public sector.
Commonly quoted reasons for the overruns are:
Internal Reasons
External Reasons
 1-65

Internal Reasons
Disputes with local people on acquisition of land and
compensation.
Bad choice of technology
Non-availability of skilled personnel
Lack of proper planning
Non-availability of the equipment of required quality
at the required time.
Poor quality of the inputs purchased
Labor disputes
Lack of proper handling of organizational issues such
as appointment of the project manager
Absence of proper co-ordination between different
departments involved, such as customs, sales tax. Etc.
Lack of proper monitoring and follow up.
 1-66

External Reasons
Funds not being released by the concerned
department on time.
Changes in foreign exchange rates
Inflation
Political instability and lack of Political Will to
implement projects quickly and efficiently
Budget deficits
Diversion of funds to other unforeseen uses like
meeting a natural calamity.
 1-67

Ethics in Project Management

Ethics means science of conduct.

Doug Wallace and John Pekel define Ethics as the
basic ground rules by which humans live.
These ground rules differ from society to society and
individual to individual, and similarly from a project
executed in one country to one executed in another.
Therefore, ethics refer to the moral principles that are
accepted by the majority of the members of the
society.
Project Manager should exercise care when dealing
with ethical issues that arise during the development
and implementation of a project.
 1-68

Ethics and Project Management

The decision taken by project management
professionals will have an impact on the
quality of life of various stakeholders of the
project.
Some common ethical mistakes committed
by businesses;
Taking shortcuts in order to meet the schedule or
budget
Using inferior quality materials
Compromising on safety measures
Violation of standards
 1-69

Forms of Project Organizations

Growth of Project Oriented Organizations
There are many reasons for the rapid
growth, but most of them can be grouped in
four general areas:
Speed and market responsiveness have become
absolute requirements for successful
competition
The development of new products, processes,
or services regularly requires input from
diverse areas of specialized knowledge
 1-70

Contd
Rapid expansion of technological
possibilities in almost every area of
enterprise tends to destabilize the structure
of organizations
A majority of senior managers rarely feel
much confidence in their understanding
and control of the activities in their areas
 1-71

Forms of Project Organizations

There are two fundamentally different ways of
organizing projects within the parent organization
The project as part of the Functional
Organization
The project as a free-standing part of the parent
organization
A third type, called a Matrix Organization is a
hybrid of the two main types
 1-72

Functional-Type Organization
Used in businesses that sell and produce
standard products.
Groups consist of individuals performing the
same function.
Periodically undertake in-house projects.
Team members can be assigned to the project.
Team members continue regular functional
jobs.
Project manager does not have complete
authority over team.
 1-73

Functional-Type Organization: Advantages

Maximum flexibility in the use of staff

Individual experts can be utilized by many
different projects
Specialists in the division can be grouped to
share knowledge and experience
The functional division also serves as a base of
technological continuity when individuals
choose to leave the project
The functional division contains the normal
path of advancement for individuals whose
expertise is in the functional area
Reduces duplication and overlap of activities
 1-74

Functional-Type Organization: Disadvantages

The client is not the focus of activity and
concern
The functional division tends to be oriented
toward the activities particular to its function
Occasionally, no individual is given full
responsibility for the project
There are often several layers of management
between the project and the client
There is a tendency to sub-optimize the project
Teamwork is not emphasized.
Decisions may be parochial.
Structure can slow communication, problem
solving and decision making.
 1-75

Project Organization
Used in companies in the project
business, not selling products.
Work on multiple projects at a time.
Project team is dedicated to one project.
Project manager has complete authority
over team.
Each project team tends to be isolated.
 1-76

Project Organization: Advantages

The project manager has full line authority
over the project
All members of the project work force are
directly responsible to the project manager
When the project is removed from the
functional division, the lines of
communication are shortened
When there are several successive projects of a
similar kind, the pure project organization can
maintain a permanent cadre of experts who
develop skills in specific technologies
 1-77

Contd.
A project team that has a strong and separate
identity and develops a high level of
commitment from its members
Because the authority is centralized, the ability
to make a swift decision is enhanced
Unity of command exists
Pure project organizations are structurally
simple and flexible, which makes them
relatively easy to understand and implement
The organizational structure tends to support a
universal approach to the project
Organization is highly responsive to customer
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Project Organization: Disadvantages

Can be cost inefficient.
Tendency to stretch out work during slow
periods.
Potential for duplication on concurrent projects.
Low level of knowledge transfer
Each project tends to be fully staffed which can
lead to a duplication of effort in every area from
clerical staff to technological support
There is a need to ensure access to technological
knowledge and skills that results in an attempt
by project managers to stockpile equipment and
technical assistance
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Contd.
The functional division is a repository of technical
knowledge, but it is not readily accessible to team
members of the pure project team
Pure project groups seem to foster inconsistency in the
way in which policies and procedures are carried out
In a pure project organization, the project takes on a life
of its own
There tends to be concern among team members about
life after the project ends
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Matrix Organization
The matrix organization is a combination
of functional and pure project
A matrix organization can take on a wide
variety of specific forms
Project or strong matrix organization most
resembles the pure project organization
The coordination or functional or weak
matrix most resembles the functional form
The balanced matrix lies in between the others
 1-81

Matrix Organization
Rather than being a stand alone
organization, like the pure project, the
matrix project is not separated from the
parent organization:
 1-82

Matrix Organization: Advantages

The project is the point of emphasis
Because the project is overlaid on the functional
divisions, the project has reasonable access to the
reservoir of technology in all areas
There is less anxiety about what happens when the
project is completed
Response to clients needs is as rapid as in the pure
project organization
Matrix management gives the project access to
representatives from the administrative units of the
parent firm
The matrix organization allows a better company-wide
balance of resources to achieve goals
There is a great deal of flexibility in precisely how the
project is organized within the matrix
 1-83

Matrix Organization: Disadvantages

The balance of power between the project and
functional areas is very delicate
The movement of resources from project to project
may foster political infighting
Problems associated with shutting down projects can
be as severe as in a pure project organization
The division of authority and responsibility in a matrix
organization is complex, and uncomfortable for the
project manager.
Matrix management violates the management
principle of unity of command. Project workers have
at least two bosses, their functional heads and the
project manager.
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