Project Management

Prepared by
Prof. Rahul N Dalvi
 Unit III : Project Organisation
• Organisational structures.
• Project stakeholders.
• Roles and responsibilities.
• Managing projects through teamwork.
• Managing conflict in projects.
• Communication and coordination.
 Organisational structures
• Functional Organization
• Product Organization
• Matrix Organization
 Functional Organization
• Functional Organization is the most basic and logical form of
organizational structure.
• A functional organization structure is a hierarchical
organization structure wherein people are grouped based on
their area of specialization.
• It brings together on one department all those who are
engaged in one activity or in one or more related activities
• These people are supervised by a functional manager with
expertise in the same field. This expertise helps him to
effectively utilize the skills of employees, which ultimately
helps organizations in achieving its business objectives.
Manager Manager Manager
Manager(HR)
(Finance) (Production) (Marketing)
 Product Organization
• Each product group falls within the reporting
structure of an executive and that person
oversees everything related to that particular
product line.
 Manager
Manager Manager Manager
(Pharmaceutical
(Food products ) (Cosmetics) (Health products)
products)
 Matrix Organization
• A matrix structure provides for reporting levels both
horizontally as well as vertically.
• Employees may be part of a functional group (i.e. engineer)
but may serve on a team that supports new product
development (i.e. new album).
• This kind of structure may have members of different
groups working together to develop a new product line.
Pure Project Organization Structure
• Here, Project Manager is in total control of all the other
departments. This form of organizational structure is suited if
the organization has a complex project whose resource
requirements are large.
• Each project is treated as a separate entity and all the
functional departments required for the project are formed
and assigned to the project manager for his overall control.
 Project stakeholders.
• Stakeholders are individuals who either care about or have a
vested interest in your project.
• They are the people who are actively involved with the work
of the project or have something to either gain or lose as a
result of the project.
 Role of Stakeholders
• The creation of the project charter and the
project scope statement
• Project management plan development
• Approving project changes and being on the
change control board
• Identifying constraints
• Identifying requirements
• Risk management
• The stakeholders may also become risk response
owners.
 Role of Stakeholders
• Project leader (or project manager) – the head of the project; defines,
plans, controls, and leads the project
• Project team members – produce the outputs (deliverables) for the
project; participate in the project management process; contribute their
skills and effort to perform tasks
• Sponsor (or upper manager) – the person with formal authority who is
ultimately responsible for the project; oversees the project; acts as a
liaison between the upper management team and the project leader;
provides authority, guidance, and maintains project priority
• Project customer – the person or group whose needs and requirements
drive the project; receives the final output(s) that the project produces;
provides product requirements and funding
• Functional managers (also known as resource managers or line managers)
– provide company policy an resources, particularly people who are
involved in the project