Question

This unit provides insight on how to structure the project organization in an effective and efficient manner to achieve project objectives. One of the challenging issues of project management is the contradiction of fundamental design principles associated with traditional organizations. Projects are unique, one-time efforts with a distinct beginning and end. Most organizations are designed to efficiently manage ongoing activities.

Considering the fact that project success is directly linked to the amount of autonomy and authority project managers have over their projects, how would you decide on the type of organizational structure for effective management of a proposed multi-story building facility outside of the focal firm’s location? In your response outline the weaknesses and strength of your proposition.

Answer 1

In my opinion the organization structure that will ensure the efficient management through providing a complete authority and control over the project is the "Divisional Organizational Structure" where divisions should be based on the projects to be conducted rather than the functions to be performed. Each division should be allotted a particular project manager with certain number of essential team members along with necessary physical and financial resources so that they shall carry out a particular project in that division using these facilities.

The divisional organisational structure is that type of a structure where independent decisions are taken and authority and responsibility is completely delegated to the division so as to produce the desired result. Moreover the biggest advantage of this structure is that the failure of one division does not hamper the overall functioning and survival of organization as in case of the unified structure.

Moreover the authority required to accomplish a task and inorder to govern the activities is independent from any restrictions and regulations

'Divisional organizational Structure ' is on one of the most simple structure , easily understandable and comprehensive in nature and incorporates efficient communication through integrating the information system of organization inorder to ensure smooth supply of information and data that will help take essential decisions in timely manner.

Moreover the authority required to accomplish a task is possible by incorporating a divisional structure where each division will perform individual tasks to accomplish a goal or an objective in the best possible manner. This will in turn encourage healthy competition in the organisation where each division will work their best to outperform than the other so as to receive the most benefits. And inorder to govern the activities , the divisional structure will suit at its best in terms of self contained segment where the divisional head (or a project manager) will be entrusted with the necessary facilities to perform the job.
There is a separate team to which the project manger needs to report
The project mangers will be entrusted with the full authority to use the resources, perform all the tasks, take all the necessary decisions and accomplish the goal or objective.

Thus the divisional head has control over their department and have full initiative in finding new ways or implementing innovative ideas.

Strengths:
The main strengths of my proposition are:
Decision making authority
Use of self initiated ideas , techniques or methods
Authority over resources.
Independent unit resulting in efficiency and no sharing of machinery , equipments etc thus no idle time
Separate staff or team to perform activities and jobs without any interferences.
Effective communication

Accomplishing of tasks within the deadlines.

Weaknesses:

The structure will be independent from the rest and will thus not enjoy perks of organisational system as there will be a limit of the resources to be used.

The failure of project will be completely put on the head of project manger and the team, even if the environment had not been favourable or any other contingency might have had arisen.

The separation from the rest of organization and its functions will not let it share ideas or gain experience or increase knowledge and contribute more to the organization.

It will hinder the smooth functioning of the organization.

It might result on under utilization of resources.

Decentralization will take place even more than the required level.

Thankyou

Hope i explained well

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