FORMS OF PROJECT

ORGANIZATION
Presented By:-
Gautam Chopra
Chaman Tanwar
 PROJECT ORGANIZATION

• To work on any project or business you need to have a proper project organization &
its structure.
• Which includes Manpower, Machinery, Technology, Building, Infrastructure, etc.
• As they are the key factors for a successful commercialization of the project.
 FUCTIONAL ORGANIZATION
FORMS OF DIVISIONAL ORGANIZATION
PROJECT
ORGANIZATION MATRIX ORGANIZATION

PROJECTIZED ORGANIZATION
 FUNCTIONAL ORGANIZATION

• When activities are divided, on the basis of functions of the organization, it is

called ‘functional organization’.

• This may allow recruitment of subject expertise but at the same time it may
result in a greater coordination problem causing lesser control due to chaos.
EXAMPLE : AIRTEL
 DIVISIONAL ORGANIZATION

• This structure is for HIGHLY DIVERSIFIED & DESPERSED firms in terms of

geographical areas/ product/ market.
• A divisional organizational structure usually consists of several parallel teams
focusing on a single product or service line.
• In a divisional structure, an organization is divided into various divisions where
people with diverse skills are kept together in the form of groups by a similar product,
service or geographic location, and each division itself is capable of doing the task on
its own. Each division has its own resources required to function properly.
• The division can be based on product, service or the geographical area: e.g. :- ITC
 EXAMPLE

• General Electrics. It can have

microwave division, turbine
division, etc., and these
divisions have their own
marketing teams, finance
teams, etc.
 MATRIX ORGANIZATION

• When it comes to matrix structure, the organization places the employees based on
the function and the product.
• The matrix structure gives the best of the both worlds of functional and divisional
structures.
• The company uses teams to complete tasks
• The teams are formed based on the functions they belong to and product they are
involved in
 STARBUCKS
• Starbucks has rearranged their
organizational structure to better
accommodate customer satisfaction.
The CEO of Starbucks announced
expansion of their matrix
organizational structure last month.
 PROJECTIZED ORGANIZATION

• In projectized organizations, arrange their activities into programs or portfolios, and

implement them through the projects.
• Here, the project manager is in charge of his project, and he has full authority over
it. Everyone in his team reports to him. The projectized organization structure is
opposite to the functional organization structure. Here, either there will be no
functional manager, or if he exists, he will have a very limited role and authority.
• The project manager controls the budget, resource, and work assignment.
 CONCLUSION

• After all the previously cited, we can put the question what model to choose. In other
words, the question is how we should establish the connection between the enterprise
and the business which exist in definite time having the characteristics of continuity, on
the one side, and the projects having the characteristics that is unique and temporary.
• In any case it is necessary to consider the nature of the potential project, characteristics
of different projects, advantages and disadvantages of every organizational form,
different preferences in the culture of home organization, as well as to reach the best
possible compromise.
• It is generally considered that the functional model would be the best choice for projects
where the major focus is oriented on the qualitative technology application, not on cost
minimization, making determined plans or fast response to change.
THANK YOU