Question

A construction corporation has won the bids for building a number of big infrastructure projects. Knowing that you are learning project management, the general director of the company approached you and requested you to help him organize the implementation of the projects.

a) What form of project organization is appropriate? Why?

b) Draw the organizational chart for the project in relations to the corporation.

A construction corporation has won the bids for building a number of infrastruceture projects. Base on project form of Project management. What form of project organization is appropriate to implement the project? And why?

Answer 1

B

A.

PROJECT-BASED ORGANISATION STRUCTURE

Also known as PBO’s the project-based organization structure is the best structure that can be used in the construction business. The CEO or director is at the top and the different projects are handled by the different managers under the CEO. Under managers, the employees work in the form of architect, engineer, supervisor, etc

Project-based organizations can be formed by the different types of organizations having functional, matrix, and divisions. PBO’s focus on the final result of the projects the managers directly are responsible for the particular projects.

In project-based structure, employees are assigned the projects and they report to their project managers respectively. The project manager makes sure that he takes care of the initial stage of the project till the time it is completed. This improves the responsiveness of the manger towards the project and the organization. Project teams conduct almost all operations of the company and project managers make sure that the projects have access to employees with the right functional expertise.

There are many variations of management style between two businesses depending on the work and the ob\jective of the organization. Let’s take an example of the chemical company within the in-house staff for the planning design and construction of facilities for new product line will go for the adoption of matrix organization structure but in the case of the construction company whose existence is dependent directly on the management of certain type of construction projects that will definitely go for the project-oriented organization process.

ADVANTAGES

· Flexible

· Effective

· Knowledge management

· Equal

· Improve appraisals

· expertise

Disadvantages of project-based organization structure

· Project team is meant for delivering the results without anyone’s help so sometimes isolation from other teams can prove to be a problem or disadvantage for the organization.

· Less communication between teams, knowledge transfer can be a big problem.

· Career continuity of the employee and the professional growth of the employee suffers.