ID: 22049846

AHAMED ZIYATH SL

Sheffield Hallam University

MSc Construction Management/Project Management

MODULE TITLE: PROJECT MANAGEMENT PRACTICE MODULE CODE: 26-7040-00S

SEMESTER 1

ACADEMIC SESSION: 2013/2014

SUBJECT: TEMPORARY ORGANISATIONAL STRUCTURE BY: AHAMED ZIYATH SULAIMA LEBBE (ID: 22049846)

WORD COUNT 2500 3000 WORDS

ID: 22049846

AHAMED ZIYATH SL

Contents Introduction ...................................................................................................................................................... 3 1. Orgnisational Structure ....................................................................................................................... 4

1.1 1.2 1.3 Functional Orgnisation ............................................................................................................................... 5 Matrix Organization ..................................................................................................................................... 6 Projectised Organization............................................................................................................................ 9

2. 3. 4.

Temporary (Project) Organisational Structure?....................................................................... 10 Oranisational Perception for Project? .......................................................................................... 11 Integration issues? ............................................................................................................................... 12
4.1 4.2 4.3 4.4 4.5 People Dimension? .................................................................................................................................... 12 Process dimension..................................................................................................................................... 14 Tools dimension ......................................................................................................................................... 16 Methodology dimension .......................................................................................................................... 17 Results and outcomes dimension......................................................................................................... 18

5. 6.

Conclusion............................................................................................................................................... 19 Reference ................................................................................................................................................ 20

ID: 22049846

AHAMED ZIYATH SL

Introduction An organizational structure is a formation combined with activities of duty assignment, management and control. It is a business strategy to achieve aims of organisation. This is also a transparent glass the personnel see through their organisation and its environment. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Where: project (temporary) organisation structure (Enterprise project structure) is a hierarchy that enables the coordination and application of project events. Its core motive is to make an environment that nurtures interfaces and communication within project team members to identify their roles and responsibilities. Project organisation structure is fundamental route where the individuals find their ways of supervision and commination. It is a unique structure, which may be changed/rearranged depending on the nature of the projects, is constrained with the project management This report will critically discuss integration issues within project organisation structure and permanent organisation structure in terms of integration change management and give solution to the problem on how to solve, face or get rid of the problems occurred during this process.

ID: 22049846

AHAMED ZIYATH SL

1. Orgnisational Structure How to direct organisation to better change and innovation is gained through a clear understanding of organizational structure. Most of the writers agree with the concept and say that the more you understand about the organisation is the more you build up the ultimate business goals towards success path. In that case, the structure gives primary/fundamental attention to develop business strategy. According to PMBOK (2013) Fifth Edition, the organizational structure is an enterprise environmental factor which can affect the availability of resources and influence how the projects are conducted. Organizational structures range from functional to projectised, with variety of matrix structures. (See the table 1 below) Table 1: how organisation influences on projects Organization Structure Project Managers Authority Resource Availability Who control the project budget Project Managers Role Project Management Administrative Staff Matrix Functional Little or None Little or None Functional Manager Part-time Part-time Weak Matrix Limited Limited Functional Manager Part-time Part-time Balanced Matrix Low to Moderate Low to Moderate Mixed Full-time Full-time Strong Matrix Moderate or High Moderate or High Project Manager Full-time Full-time High to Almost Total High to Almost Total Project Manager Full-time Full-time Projectised

ID: 22049846

AHAMED ZIYATH SL

1.1

Functional Organisation

It is a hierarchy where each employee has one clear superior. Employees are grouped by area like production, marketing, engineering, and accounting at the top level. Areas may be further subdivided into functional organisation like civil, mechanical and electrical engineering. Each department in functional organisation carry out its project independent of other departments. Functional Organization Cheif Executive Funtional Manager Staff Staff Funtional Manager Staff

Project Coordination
Funtional Manager

Staff

Staff

Staff

Staff`

Staff

Staff

Boxes are representing staff who are engaged in project activities

Advantages and Disadvantages of Functional Organiation Advantages Specialisation: Each department focuses on its own work Accountability : Someone is responsible for each department Clarity : Everyone knows their own and others roles within the department Job security is guaranteed
PM has no authority. Coordination may take too long Departments can become resistant to change

Disadvantages
Closed communication could lead to lack of focus

ID: 22049846

AHAMED ZIYATH SL

1.2 Matrix Organization In Matrix organisation, there can be more reporting lines for to manage individuals: it generally manages cross practice, business group and the traditional vertical business units: always silos of function and geography. This form is an attempt to maximize the strengths and weaknesses of both the functional and project forms. There are three types in matrix: 1. Weak Matrix: it maintains many of the features of functional organisation. The project manager role is more of coordinator expediter than that of project manager. 2. Strong Matrix: it has many of the features of projectised organization. The project manager has full authority 3. Balanced Matrix: it recognises the need for a project manager. The project manager does not have full authority. Weak Matrix Organization Cheif Executive Funtional Manager Staff Staff Funtional Manager Staff Funtional Manager Project Coordination 6

Staff

Staff

Staff

Staff`

Staff

Staff

Boxes are representing staff who are engaged in project activities In a weak matrix, functional manager has power. In this form of organization, the project expeditor acts primarily as a staff assistant and communications coordinator. The expeditor has no personally decision making rights. Simply to say The functional managers have all the Power in a weak matrix, and project managers act as project organizers with little or no authority.

ID: 22049846

AHAMED ZIYATH SL

Strong Matrix Organization Project Coordination 7 Cheif Executive Funtional Manager Staff Staff Staff` Staff Staff Staff Funtional Manager Staff Staff Staff Funtional Manager Manager of Project Managers Project Manager

Project Manager
Project Manager

Boxes are representing staff who are engaged in project activities Here, project managers have power. They are able to force the functional managers to give them their best resources. The project managers can then negotiate these resources among themselves without functional managers. The project managers have their own boss, in effect a functional manager, who is the manager of project managers. Balanced Matrix Organization Cheif Executive Project Coordination

Funtional Manager
Staff Staff

Funtional Manager Staff

Funtional Manager

Staff Project Manager

Staff Staff

Staff Staff

Boxes are representing staff who are engaged in project activities

ID: 22049846

AHAMED ZIYATH SL

This form of organization is alike the Weak Matrix organization. But that the coordinator has some authority to make decisions and reports to higher level manager. Advantages and Disadvantages of Matrix Organiation Advantages Better coordination and control Adaptable to dynamic environment Effective utilization of resources Particular management Sufficient time for top management Excellence in inter disciplinary specialization Development of team work
Costly structure Problem of overspecialization Difficult to balance project authority between project and functional authority. Employees have no job security

Disadvantages
Violation of unity of command

ID: 22049846

AHAMED ZIYATH SL

1.3 Projectised Organization In the projectised organisation, team members are often co-located: resources are involved in project work and the project managers have a strong independent authority. It is combined with organizational units called departments. These groups may report directly to the project manager and provide support services to various projects. Simply to say that all the organisation is run by projects. The Project Manager has total control of projects. Personnel are assigned and report to a Project Manager. Projectised Organization Project Coordination Cheif Executive

Project Manager Staff Staff

Project Manager
Staff

Project Manager

Staff Staff

Staff Staff

Staff Staff

Boxes are representing staff who are engaged in project activities

Advantages and Disadvantages of Projectised Organiation Advantages Project Manager has the power and full authority over the projects resources Communication are easier and faster Loyalty to projects High level of integration Quicker decision making
No job security

Disadvantages
No career path in areas of specialty

Employees may be exploited

Less employees interest in work at final stage of the project

ID: 22049846

AHAMED ZIYATH SL

2. Temporary (Project) Organisational Structure? It is a part of organisational units where project team memebrs are assigned temporarily to achieve a spcific goals or aims. The structure paves the way for employees to understand their scope and responsiblities. It allows them to get the fundemental idiology and hierachy of the project. Below show is an example of project organisational structure
Client: Private Engineering Office Project Manager: Tarek Mohamad Residence Engineer: Abdul Hassen Planning Engineer: Ahamed Ziyath Architectur al Engineer: Omar Amin Structural Engineer: Edvin Karo Electrical Engineer: Al Harti Document Controller: Mahmoud Salah Mechanical Engineer: Mahmoud Ezz Civil Engineer: Erwin Yanoc QS. Engineer: Kalith Ahamed

The project structure is a unique characteristic: it may vary or change depending on the nature of project and client requirements. The organisational team:

Client: Private Engineering Office

Consultant: Aran Consulting Engineers

Design Consultant: EHAF Consulting Engineers Design: Qatar Design Consodium

Main Contractor: Generic Engineering Technology

Sub Contactor: Mechanical

Sub Contactor: Electrical

Sub Contactor: Utilities

Suppliers

10

ID: 22049846

AHAMED ZIYATH SL

3. Organisational Concept for Project? There are contexts that an organization commence for the projects. They are as follows: Projects are unique units, where project organisational structure is set up only to run the project. Project ownership can be shareholders or other stakeholders in the undertaking. A project can be carried out inside the context of a larger organization, leadership team within the organization forms the sponsoring group. The project is the business strategy for passing the determined sponsoring group. In a large organization, there can be more projects. An organisation forms portfolios and/or programmes in service area or products in a definite business objective. In an organization the business interest are managed as a portfolio or programme where the project sponsor is determined. Figure below shows the relationship between projects in the context of other management vehicles commonly found in organizations.

11

ID: 22049846

AHAMED ZIYATH SL

4. Integration Issues? Most probably, the integration issues (linked with integration processes) in project organisation structure occurs during the change management processes. Elements of successful projects and initiatives set the stage for the united value intention. While the disciplines are distinct in their focus and approach, in action the technical side and people side of change are often interacting and intermingling. Here identified are five dimensions of integration issues to be discussed in terms of change management: 1. People dimension 2. Process dimension 3. Tools dimension 4. Methodologies dimension 5. Results and outcomes 4.1 People Dimension? The people dimension of integration explains the structure of change management and project management work and how the relationship is architected. Change management resource can either sit on the project team or support the project team externally. (Below show example).

There is not a "right" or "wrong" decision around team structure, but there are certainly advantages and challenges of each model. When the change management resource is part of the project team, there is a higher level of project knowledge and responsibilities can be more easily integrated. When the change management resource supports the project team externally, the resource tends to have higher levels of access to the sponsor, more objectivity and an exclusive focus on change management. 12

ID: 22049846

AHAMED ZIYATH SL

The decision of which "people dimension" integration approach is likely based on the nature of the project and the norms in the organization. Whichever approach is taken, it is important to effectively define roles, responsibilities and relationships for the project management resources and change management resources. To prevent the issues in integration along the people dimension: Evaluate the nature of the change and the organization to decide on the best architecture for the relationship between project resources and change management resources. Clearly define roles, responsibilities and relationships - by clearly establishing who will be doing what, you create better expectations and foster a better working relationship. Be present and involved - as the change management resource on the project, be sure that you are engaged and involved with project activities so change management has a presence. Ensure sponsorship: regardless of the decision on structure, adequate sponsorship for change management gives credibility and support for the change management work and focus.

13

ID: 22049846

AHAMED ZIYATH SL

4.2 Process dimension The process dimension of integration addresses how the activities of project management and the activities of change management are brought together during the lifecycle of the project or initiative. Integration at the process dimension enables these two complementary disciplines to be more effective in sequencing work, aligning the timing of activities and exchanging information that is crucial to project success. The image below shows, at a high level, how change management and project management activities can be integrated.

Integration of activities is enhanced by several factors: Beginning change management activities early in the project lifecycle, at the project initiation or project planning phases. The earlier change management is launched, the more effective the sequencing, aligning and exchanging of information will be. Using a process-driven approach with distinct deliverables for change management. If the change management approach is not process-driven with specific deliverables and milestones, it is very difficult to integrate with project management from both a practical and a credibility perspective. 14

ID: 22049846

AHAMED ZIYATH SL

To prevent the issues in integration along the process dimension: Be structured in approach: the more difficult, process-oriented and milestone-driven the change management approach is. The more easily it can be integrated with project management activities. Create concrete deliverables: as the change management resource, the more you can capture change management work in concrete deliverables, the more effectively you can integrate your work into the existing project team work. Actively identify key points in time for integrating activities: throughout the project lifecycle, there are times where integration of activities is more critical and makes more sense. Some of these include: risk identification activities, solution design activities, project announcement activities, system testing activities. In each instance, you can be more complete and holistic by integrating these activities to ensure that both the technical side and people side perspectives are addressed.

15

ID: 22049846

AHAMED ZIYATH SL

4.3 Tools dimension Some tools cannot be integrated as they exist in only one discipline or the other. However, there are numerous tools that are used by both project management and change management practitioners: the communication plan and risk assessment are two tools commonly used in both disciplines. Integration on a tool dimension means creating a single communication plan that includes both technical side and people side messages. The table below includes a list of some of the tools that have been integrated:

To prevent the issues in integration along the tool dimension: Identify specific tools that make sense for integration: some of the more common might include stakeholder analysis, risk identification and communication plans (all of these are common artifacts of project management and can easily be adapted to include a change management perspective).

16

ID: 22049846

AHAMED ZIYATH SL

Work with what the project team has already done: there is no sense in alienating a project team by telling them that their communication plan is a "telling plan" and not a communication plan. Instead, your best approach is to say "that is great that you already have a communication plan, now let me see what I can add from a change management perspective."

Ensure ownership is clear: one risk of integrating at the tool dimension is that each may inadvertently give up accountability once both project management and change management are involved. Clarify early on who will still maintain and own the tool even when both perspectives are included. 4.4 Methodology dimension While integration along the people, process and tool dimensions occurs at the project level, integration of methodologies occurs at the organizational level. This dimension of integration moves one step up - creating a common and standard approach to project delivery that incorporates the organization's project management methodology and the organization's change management methodology. Integration of methodologies is not trivial and involves decisions about when and how the methodologies interact and when they diverge. As with each dimension of integration, there are advantages and challenges to consider when integrating methodologies. One of the biggest challenges is that change management work becomes too governed by project milestones and timing, taking away some of the change management work stream's needed ability to react to and adjust to how people are experiencing the change. An integrated methodology is often part of a greater strategy for institutionalizing change management. To prevent the issues in integration along the methodology dimension: Select a common change management methodology: before you can begin to integrate at a methodology level, you will need to select an organizational standard change management methodology.

17

ID: 22049846

AHAMED ZIYATH SL

Be mindful of the tradeoffs: when you integrate at the methodology dimension, there are some risks related to removing the responsive nature of change management. Take these risks into consideration and design your integrated methodology appropriately.

Manage the change of introducing an integrated methodology: many project managers in your organization may not be familiar or experienced with applying change management. They have also been successful with, and are accustomed to, using their current project management methodology. When you introduce a new integrated methodology, be sure to apply change management to the change "applying the new integrated methodology."

4.5 Results and outcomes dimension Integration on the results and outcomes dimension stems from the notion that change management and project management are in fact complementary disciplines with a common objective. The phrase "common objective" means that, in the end, both project management and change management are approaches used to improve the performance of the organization by helping it reach a desired future state resulting from a project or initiative. Rather than integration, this dimension is more focused on reaching a shared view of what success means and how each of the disciplines contribute to project success. While results and outcomes are the final dimension presented here, this is in many ways where integration actually begins. When we can successfully integrate our view and definition of what we are trying to achieve, the rest of the integration elements begin to fall into place. Rather than an "us" versus "them" mentality, integration on the results and outcomes dimension drives a "we" approach.

18

ID: 22049846

AHAMED ZIYATH SL

5. Conclusion In a simple way, we can say the forming of project organization structure (POS) is the prominent strategy in business which is combined with project integration processes in the project lifecycle. On the other hand, it can be described as forming a project team which, a formal communication channel for supervision, pave the way for employees to understand clearly their roles and responsibilities.

Even though there are many issues in other project integration processes, which are given above in the chart, the negative impacts from integration issues in change management (change control) are dangerous which may lead the project to over budget, time and bad quality of product or service. Furthermore, no-one can deny the integration issues which exist in permanent organizational structure but the issues are no going to affect more the permanent organization when compared to POS. For instance, if anyone is dropped or fired out of permanent organization there can be other one to fulfill all the requirements in place of him: so the change is not going to affect as it is a continuation process. But, in POS if one (Example, one Engineer) is dropped or fired in the middle of the project it is hard to complete the project in time because it take time for the new comer to understand the concept of the project: so the duration he takes to know about the project may affect the project completion which may cause negative impact on time, budget and quality.

19

ID: 22049846

AHAMED ZIYATH SL

6. Reference 1. Barry, Fryer (2011). The Practice of Construction Management. 5th Edition. Chicester, John Wiley and Sons. 2. Project Management Institute (2013). A Guide to the Project Management Body of Knowledge. Fifth Edition. USA, PMI. 3. Sven, Bertelsen and Rafael, Sacks (2007). Towards A New Understanding of The Construction Industry And The Nature Of Its Production. Michigan USA. 4. Alan, Griffith and Paul, Watson (2004). Construction Management Principles and Practice New York, Palgrave Macmillan. 5. The Chartered Institute of Building (2002). Code of Practice for Project Management for Construction and Development. Third Edition. Oxford, Blackwell Publishing Ltd. 6. Project management Part 1: Principles and guidelines for the management of projects (2010). Third edition. BS 6079-1:2010. 7. Jan G Wojturski mrics (2012/2013). Project Management Structures and Organisation, Sheffield Hallam University. 8. PreparePM (2013). Project Integration Management. [online]. Last accessed 10 October 2013 at: http://preparepm.com/notes/integration.html 9. Freelance Project Management Services (2013). Project integration management. [online]. Last accessed 04 October 2013 at: http://projectmanagement.magt.biz/templates/01-integration_mgmt/ 10. Wekipedia (2010). Matrix Management. [online]. Last modified on 16 August 2013. Last accessed 04 October 2013 at: http://en.wikipedia.org/wiki/Matrix_management 11. Kumkum, Tandon (2011). Construction Industry: Nature of Work. [online]. Last accessed 25 September 2013 at: http://www.shiksha.com/getArticleDetail/294/ConstructionIndustry-Nature-Of-Work?token=aa&page=1 12. Change Management Service Center (2013). Needs and tips for integrating change management and project management-Module 4 in the Integrating Change Management and Project Management Series. [online]. Last accessed 17 October 2013 at: 20

ID: 22049846

AHAMED ZIYATH SL

http://www.change-management.com/tutorial-integrating-cm-pm-mod4.htm 13. Change Management Service Center (2013). Dimensions of integration-Module 2 in the Integrating Change Management and Project Management Series. [online]. Last accessed 17 October 2013 at: http://www.change-management.com/tutorial-integrating-cm-pmmod2.htm 14. Project Management for Development Organizations (2007). Project Management Organizational nt_Structures.pdf Structure. [online]. Last accessed 23 September 2013 at: http://www.classtoolkit.org/sites/default/files/documents/PM4DEV_Project_Manageme

21