BLDG 6571 - Postlec 6

BLDG 6571 7/18/2017
BLDG 6571 PROJECT

MANAGEMENT
Lecture 6 Organizational Structures
Dr. Mona Abouhamad
ORGANIZATIONAL STRUCTURES
Project : A project is a temporary endeavor undertaken to create a unique
product, service or result
Projects are typically part of an organization that is larger than the project
Example: Corporations, Government Agencies, Health Care Institutions,
International Bodies, Professional Associations, etc.
Projects are influenced by organizations or organizations that set them up
Dr. Mona Abouhamad 2

BLDG 6571 7/18/2017
How many disciplines are involved?
What are the relationships among the disciplines?
When are the various disciplines brought into the project?
WHAT IS AN ORGANIZATION STRUCTURE?

An organizational structure refers to the arrangement and
interrelationships of the various component parts of an organization.
ORGANIZATIONAL BREAKDOWN STRUCTURE (OBS)

A hierarchical structure which provides an organizational perspective of
the project.
The OBS typically reflects the management structure of an organization,

from top-level personnel down through the various levels constituting the
business.

BLDG 6571 7/18/2017
WHY IS IT IMPORTANT?
It shows how an organization aligns its resources to carry out its work.
It shows what an organization focuses on.
Used internally to clarify job descriptions and to define internal
processes.
ORGANIZATIONAL STRUCTURES
Project
Functional (projectized) Matrix
Weak
Balanced
Strong

BLDG 6571 7/18/2017
7
FUNCTIONAL ORGANIZATION
Dr. Mona Abouhamad

BLDG 6571 7/18/2017
FUNCTIONAL ORGANIZATIONAL STRUCTURES

CEO
Project Coordinator
Head of Head of Head of MEP Head of

Arch. Design Struc. Design Design Construction
Eng. A Eng. C Eng. E Eng. G
Eng. B Eng. D Eng. F Eng. H


The hierarchical structure is developed by breaking down the
organization into different functions (services) and then assigning the

personnel according to these functions.
The project is coordinated by functional and upper level of

management
Moselhi 1997

BLDG 6571 7/18/2017

Hierarchy where each employee has one clear superior (unity of
command)
Staff grouped by specialty (ex: production, accounting, engineering,
.etc)
Specialities further subdivided into functional
Each department performs its job independent of other departments.

Advantages:
High stability
High professional standard
Incorporation of latest technology
Excellent corporate memory
(undocumented experience, insights, knowledge and skills acquired over the years,
passed on to newcomers through personal contact)
Tightest discipline control

BLDG 6571 7/18/2017

Disadvantages:
Poor communication across functional areas
Low adaptability
Minimum appreciation of overall project objectives
Overly Rigid operating rules
Resistance to change
Example: Marketing does no readily know what engineering is doing

Works best when design and construction dont overlap
Requires skilled people-oriented managers, who can

avoid internal conflict with other functional groups

BLDG 6571 7/18/2017

Examples for Functional Organizations:
Universities Academic, HR, Facility Maintenance
Governments Government is divided into Ministries
Armed Forces Navy, air-force, Marines
16
PROJECTIZED ORGANIZATION
Dr. Mona Abouhamad

BLDG 6571 7/18/2017
PROJECTIZED ORGANIZATIONAL STRUCTURE

CEO
Project
Coordinator
Project A Project B Project C
Manager Manager Manager
Arch. A Arch. D Arch. G
Eng. B Eng. E Eng. H
Constr. C
Dr. Mona Abouhamad
Constr. F Constr. I 18

BLDG 6571 7/18/2017

Team members are collocated (put together)
Most of the organizations resources are involved in the
project
Project managers have a great deal of independence and
authority
Projectized organizations often have organizational units
called departments, but these groups either report directly to
the project manager or provide support services to the
various projects

The project manager is in charge of a project team
composed of a core group of personnel from different
functional areas &/or groups assigned on a full time basis.
The functional managers have no formal involvement
Moselhi 1997
Members of the team may be drawn from marketing,

production, engineering, construction etc.

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21
MATRIX ORGANIZATION
Dr. Mona Abouhamad
MATRIX ORGANIZATIONAL STRUCTURES

A blend of functional & projectized attempting to preserve
the strong point of each
What were those ?

BLDG 6571 7/18/2017
Weak Matrix Balanced Matrix Strong Matrix
Maintain Characteristics Recognizes need for Maintain characteristics of

of functional organizations project manager projectized organizations
Project manager is a PM not given full authority Can Have full time project
coordinator over project/ project Managers with
funding. considerable authority

BLDG 6571 7/18/2017
WEAK MATRIX ORGANIZATION
WEAK MATRIX ORGANIZATION

CEO
Head of Head of Head of MEP Head of

Arch. Design Struc. Design Design Construction
Project
Coordinator Eng. B Eng. D Eng. F Eng. H

BLDG 6571 7/18/2017
BALANCED MATRIX ORGANIZATION
BALANCED MATRIX ORGANIZATION

CEO
Head of Arch. Head of Struc. Head of MEP Head of

Design Design Design Construction
Project Eng. B
Coordinato Eng. D Eng. F Eng. H
r Dr. Mona Abouhamad
Project
Manager 29

BLDG 6571 7/18/2017
STRONG MATRIX ORGANIZATION

BLDG 6571 7/18/2017
STRONG MATRIX ORGANIZATION

CEO
Manager of
Head of Arch. Head of Struc. Head of
Project
Design Design Construction
Managers
Project
Eng. A Eng. C Eng. E
Manager
Project
Coordinator
Project
Eng. B Eng. D Eng. F
Dr. Mona Abouhamad
Manager 32

Project responsibilities such as scope, cost & schedule are the
responsibility of the project manager
Functional objectives such as quality assurance, design standards and
internal company policies are the responsibility of the functional

manager

BLDG 6571 7/18/2017

Advantages
Combines functional strength with the advantage of project-oriented
team
Fosters excellent climate for developing project managers
Retains access to corporate memory

Disadvantages
Difficulty in precisely defining accountability of both functional and
project managers
Violation of unity command principle (hierarchical organization
principle that no subordinate should report to more than one boss)
Strongest managers often dominate
Highest overall management and administrative cost

BLDG 6571 7/18/2017
INFLUENCE ON PROJECTS
37
Dr. Mona Abouhamad
COMPOSITE ORGANIZATIONS
Involve different structures at various levels.
Ex: a fundamental functional organization would create special project
team to handle a critical project.
The team may include full-time staff from different functional

departments, develop its set of operating procedures, operate outside
of standard formalized reporting structure.

BLDG 6571 7/18/2017
REFERENCES
Hendrickson, Chris, and Tung Au. Project management for construction:
Fundamental concepts for owners, engineers, architects, and builders.
Chris Hendrickson, 1989.
Guide, P. M. B. O. K. "A guide to the project management body of
knowledge." Project Management Institute. Vol. 4. 2008.

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BLDG 6571 7/18/2017

BLDG 6571 PROJECT

product, service or result

Example: Corporations, Government Agencies, Health Care Institutions,

International Bodies, Professional Associations, etc.

Projects are influenced by organizations or organizations that set them up

Dr. Mona Abouhamad 2

Dr. Mona Abouhamad 1

How many disciplines are involved?

What are the relationships among the disciplines?

When are the various disciplines brought into the project?

Dr. Mona Abouhamad 3

WHAT IS AN ORGANIZATION STRUCTURE?

ORGANIZATIONAL BREAKDOWN STRUCTURE (OBS)

The OBS typically reflects the management structure of an organization,

Dr. Mona Abouhamad 4

Dr. Mona Abouhamad 2

It shows what an organization focuses on.

Used internally to clarify job descriptions and to define internal

Dr. Mona Abouhamad 5

Dr. Mona Abouhamad 6

Dr. Mona Abouhamad 3

Dr. Mona Abouhamad

Dr. Mona Abouhamad 8

Dr. Mona Abouhamad 4

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Head of Head of Head of MEP Head of

Eng. A Eng. C Eng. E Eng. G

Eng. B Eng. D Eng. F Eng. H

FUNCTIONAL ORGANIZATIONAL STRUCTURES

organization into different functions (services) and then assigning the

The project is coordinated by functional and upper level of

Dr. Mona Abouhamad 10

Dr. Mona Abouhamad 5

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Staff grouped by specialty (ex: production, accounting, engineering,

Specialities further subdivided into functional

Each department performs its job independent of other departments.

Dr. Mona Abouhamad 11

FUNCTIONAL ORGANIZATIONAL STRUCTURES

High professional standard

Incorporation of latest technology

Excellent corporate memory

Tightest discipline control

Dr. Mona Abouhamad 12

Dr. Mona Abouhamad 6

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Minimum appreciation of overall project objectives

Overly Rigid operating rules

Example: Marketing does no readily know what engineering is doing

Dr. Mona Abouhamad 13

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Requires skilled people-oriented managers, who can

Dr. Mona Abouhamad 14

Dr. Mona Abouhamad 7

FUNCTIONAL ORGANIZATIONAL STRUCTURES

Dr. Mona Abouhamad 15

Dr. Mona Abouhamad

Dr. Mona Abouhamad 8

PROJECTIZED ORGANIZATIONAL STRUCTURE

Dr. Mona Abouhamad 17

PROJECTIZED ORGANIZATIONAL STRUCTURE

Arch. A Arch. D Arch. G

Eng. B Eng. E Eng. H