TOPIC 3

CONSTRUCTION
PROJECT
ORGANIZATION

©LUIS © GALAN © BAQUIÑO © VICENTE © PAGANTIAN ©TAGAMTAM

Objectives:
At the end of the discussion the students must
be able to:
● To understand the organizational approach to
execute a construction project;
● To develop a project organizational structure;
and
● To understand the role of a project manager.
 What Is Organizational
Table of 01 Structure in Project
Management?

Contents 02 Types of Project

Organizational Structures
Example of Projectized
03 Project Organizational
Structure for Construction
Features of an Organization
04 Structure

How to Make a Project

05 Organizational Chart
What to Consider When
Making a Project
06 Organizational Chart
What Is Organizational Structure in Project Management?
Eby (2021) states that a project
management organizational
structure is used to determine the
hierarchy and authority of people
involved in a specific project. The
structure defines each team
member’s function and the
reporting lines on a chart for team
members to reference during a
project.
 Why is it
Important?
 Creating and communicating a
project management organization
structure is one tool to help
connect strategy and vision across
those involved in the project.
Developing a project organization
structure ultimately reduces
disruptions, overlaps, conflicts,
uncertainty, and confusion before
Anthony C. Taylor
a project even begins.
Managing Partner and Lead Facilitator
at SME Strategy Management Consulting
 TYPES OF PROJECT ORGANIZATIONAL STRUCTURES

Functional Project Projectized Organizational Matrix Organizational

Organizational Structure Structure Structure
A matrix organizational structure is
A functional project organizational A projectized or project-based set up on a grid to demonstrate
structure organizes its hierarchy organizational structure creates a staff reporting patterns to more
around traditionally functioning dedicated project division within than one authority. It is a hybrid of
departments. A functional manager an organization. The project functional and projectized
heads each department and reports coordination operates vertically organizational structures, and
to an executive. These functional under this division. Project project managers share authority
managers — not other staff — managers maintain sole with other program managers in
coordinate the project, and they authority for the project and are this structure. Depending on the
select team members from each assigned dedicated staff who decision-making capacity of the
department to support the project, in work toward project goals. project manager, a matrix structure
addition to their functional
is one of three subtypes: weak,
responsibilities.
balanced, or strong.
 Functional Project Organizational Structure

A functional project organizational structure

organizes its hierarchy around traditionally
functioning departments. A functional manager heads
each department and reports to an executive. These
functional managers — not other staff — coordinate
the project, and they select team members from each
department to support the project, in addition to their
functional responsibilities.
 Projectized Organizational Structure

A projectized or project-based organizational

structure creates a dedicated project division within
an organization. The project coordination operates
vertically under this division. Project managers
maintain sole authority for the project and are
assigned dedicated staff who work toward project
goals.
 Matrix Organizational Structure

A matrix organizational structure is set up on a grid to

demonstrate staff reporting patterns to more than one
authority. It is a hybrid of functional and projectized
organizational structures, and project managers share
authority with other program managers in this
structure. Depending on the decision-making capacity
of the project manager, a matrix structure is one of
three subtypes: weak, balanced, or strong.
 Matrix Organizational Weak Structure

A weak structure is similar to the functional

organization structure, in which coordination occurs
horizontally among staff without a designated project
manager. The primary difference between a weak
matrix and a functional structure is that the staff
across departments, rather than the functional
managers, coordinate the project (but the functional
manager maintains decision-making authority).
 Matrix Organizational Balanced Structure

In a balanced matrix, the project manager also holds a

staff position and does not utilize the project manager
role to its full capacity. The project manager still has
little authority over project decisions, budget, staff,
etc., and primarily serves as the point of contact and
coordinator.
 Matrix Organizational Strong Structure

A strong matrix is most similar to a projectized

organizational structure. In it, a dedicated project
manager falls under a functional project management
department, has dedicated cross-functional staff, and
is supported by a manager of all the project managers.
This subtype offers the project manager the most
authority as they work across a matrixed environment.
 Examples of
Project
Management
Organizational
Structure
FEATURES OF AN ORGANIZATION STRUCTURE

1 Hierarchy 2 Division of Labor 3 Span of Control

The hierarchy should This refers to the workload Here, define who manages
delineate a clear line of (managerial, task oriented, whom. Reporting structures
authority and define etc.) associated with the will be based on this concept.
decision-making roles.
responsibilities.

4 Position Type (Line vs. Staff) 5 Centralization

A line position is a team This defines how the decision
member who is directly making occurs. In a centralized
involved with the product. project, few people own
A staff position supports decisions, whereas in
those in line positions, but are a decentralized project, decision-
not directly involved with the making authority is distributed
product. across the organization
FEATURES OF AN ORGANIZATION STRUCTURE
1 Hierarchy
The hierarchy should
delineate a clear line of
authority and define
decision-making
responsibilities.
FEATURES OF AN ORGANIZATION STRUCTURE
2 Division of Labor
This refers to the
workload (managerial,
task oriented, etc.)
associated with the roles.
FEATURES OF AN ORGANIZATION STRUCTURE
3 Span of Control
Here, define who
manages whom.
Reporting structures will
be based on this concept.
FEATURES OF AN ORGANIZATION STRUCTURE
4 Position Type (Line vs. Staff)
A line position is a team member
who is directly involved with the
product. A staff position supports
those in line positions, but are not
directly involved with the product.
FEATURES OF AN ORGANIZATION STRUCTURE
5 Centralization
This defines how the decision making
occurs. In a centralized project, few
people own decisions, whereas in
a decentralized project, decision-
making authority is distributed
across the organization
How to Make
a Project
Organizational
Chart
Step 1 Align the Project with Organizational Strategy
The project manager must have a deep understanding of
how the project goals align with the company or
department’s strategy. This will bring the team onboard
from the beginning, develop shared meaning from
project team members, and ultimately provide the most
seamless project execution.
Step 2 Analyze Projects on an Organizational Level
If an organization doesn’t have a PMO, the project
manager must analyze the volume and variety of
projects when considering which organizational
structure to select. A high variety and low volume of
projects suggests a projectized structure would best fit,
whereas a low variety and high volume of projects
would suggest a functional structure. A matrix structure
falls in bet
Step 3 Determine Roles and Responsibilities
Focus on the necessary roles and responsibilities first,
before considering personnel. If a project manager has
the authority to decide who is on the team, it is
important to research potential team members to find
the most suitable people for the project.
Step 4 Structure the Chart
Structuring a chart can be complex, but you can make
the process easier by approaching it from the large
structure to task details, or vice versa. Start by reviewing
the strengths of the team, the project tasks that need to
be completed, and the existing structure of the
organization. Decide which people’s strengths fall into
leadership roles and which people are more task
oriented.
Step 5 Finalize the Organizational Chart
Develop and finalize the visual representation of the
organizational chart. Include names and contact
information for team members to easily correspond
with each other throughout the project. Read this
roundup of organizational structure templates to quickly
create and adapt to your project team.
Step 6 Communicate
A project organizational chart is only as good as the
number of team members who are aware of it. Often,
team members don’t know that a chart exists and are
confused as to who they report to and the responsibilities
of others. This leads to wasted time and causes
unnecessary conflict. As simple as it may seem, sharing the
project organization chart with all team members before
the start of the project reduces confusion.
Bonus Step Create an Organization Chart that
Represents the Client’s Reporting Structure
Leading authority on practical project
leadership Eric Verzuh, President and Founder
of Versatile Company, points out that “a
project manager needs to understand their
own reporting structure as well as the client’s
reporting structure. When both the project
team and the client understand each other’s
reporting structures, they can plan to
communicate with the right people.”
 What to
Consider
When Making
a Project
Organizational
Chart
In their article, “An analysis of the main project
organizational structures: Advantages, disadvantages, and
factors affecting their selection,” J.R. San Cristóbal, V.
Fernández, and E. Diaz state that there are “several
important aspects to consider. All of these factors will shape
the context in which decisions are made, the form of the
organizational structure, the ability of project managers to
make decisions, and (first and foremost) the future of the
project.”
THESE FACTORS ARE FF:

Decision Making Design

Consider the complexity of both physical Remember that all features (division of
and operational boundaries for how labor, spans of control, etc.) must be part of
decisions are made. Ask: How simple are the the design process, and take care to visualize
relationships? Are responsibilities allocated how project team members will interact.
equally? Who will be given what authority? Keep the design simple and flexible to allow
What tasks are weightier than others? for changing roles as the project evolves.

Balance Optimize Talent and Resources

You can reduce administrative, social, and When picking an organizational structure,
technical issues by paying attention to how optimize talent and resources. Doing so
roles and responsibilities are distributed. creates a high-performing team that can
Aim to limit the number of direct reports successfully deliver the goals of the project.
under any one person (five max is
suggested).
Decision Making
Consider the complexity of both physical and
operational boundaries for how decisions
are made. Ask: How simple are the
relationships? Are responsibilities allocated
equally? Who will be given what authority?
What tasks are weightier than others?
Design
Remember that all features (division of labor,
spans of control, etc.) must be part of the
design process, and take care to visualize
how project team members will interact.
Keep the design simple and flexible to allow
for changing roles as the project evolves.
Balance
You can reduce administrative, social, and
technical issues by paying attention to how
roles and responsibilities are distributed.
Aim to limit the number of direct reports
under any one person (five max is
suggested).
Optimize Talent and Resources
When picking an organizational structure,
optimize talent and resources. Doing so
creates a high-performing team that can
successfully deliver the goals of the project.
Verzuh, of Versatile Company, also recommends
keeping things simple. He urges people to ask,
“‘What is the best organizational structure to help
you accomplish your goals and vision?’

Taylor, of Strategy Management Consulting, adds

that you should ask yourself, “How can I structure
my team so they can be high performing for
maximum quality, output, money, and
communication?”
BELOW ARE SOME BEST PRACTICE KEY TAKEAWAYS:

Every project will be

different.
BELOW ARE SOME BEST PRACTICE KEY TAKEAWAYS:
No organizational
structure will be
perfect. Keep goals,
vision, people, and
communication as
the top priorities.
BELOW ARE SOME BEST PRACTICE KEY TAKEAWAYS:
Take time to thoughtfully construct
the chart. Identify primary decision
makers and authorities, and assign
every individual to an appropriate,
clearly defined role. Identify how
the roles are linked, and define and
describe the reporting and
communication channels. Build the
chart. Use an organizational chart
template to simplify the process.
 Role and
Responsibilities
of a Project
Manager
Essential Skills for the Role of Project Manager

Business and Project Technical People

Domain Management Knowledge (not Management
Knowledge Knowledge Required at Capability
Expert Level)

Leadership and Risk Communication Scheduling and

Team Management and Negotiating Task
Management Management
 Business and Domain Knowledge
A project manager needs to get involved in every stage of
discussions from initiation to the closure of a project. Hence,
essentially he must have some knowledge on the business
and domain that the project is all about.

Project Management Knowledge

A project manager should have in-depth knowledge about
what is project management otherwise it is difficult for him to
boil down the difficult situations during project execution.
 Technical Knowledge (not Required at Expert Level)
A project manager does not need to be a tech genius but if he
knows the technical whereabouts of the project, that helps
him to justify during the project negotiation and feasibility
analysis. Besides, he must be an excellent player of making
visual presentations through software which are essential
during the meetings with stakeholders.

People Management Capability

The role of project manager is like two sides of the same coin.
He needs to work in favor of both clients and his own team;
both his roles are integral and essential. So, he must be
meticulous in managing people.
 Leadership
The most critical skill that a project manager requires is
leadership because he not only needs to be responsible for
monitoring the tasks of the projects all through but also to
lead the team and keep them motivated positively.

Team Management
A project manager plays a project coordinator role too. He
needs to keep things operational. He needs to administer,
delegate tasks, set the goals for the team, resolve conflicts,
and evaluate the performance of individual team members.
 Scheduling
This is one of the vital parts of project management and unless it
is a realistic one, it is difficult to finish the project on time and
within the budget. So, he must be aware of project scheduling
techniques and tools like Gantt chart, how to create milestones,
analyzing dependencies, setting the duration of each task.
Task Management
In project management, tasks are the mortar over the bedrock of
scheduling. So, a project manager must be well managed and
acquainted with tools to manage tons of small to big tasks to
avoid unforeseen complexity that could be raised due to the
mismanagement of the project.
 Communication
Communication here signifies effective communication.
Moreover, unless a project manager communicates clearly it
creates ambiguity among stakeholders, team members, and
vendors. The communication is not always verbal, it could be
through file sharing, chat and by other means.
Negotiating
It is common that clients put ongoing demands within the limited
budget and unless a project manager negotiates it diplomatically
it causes an issue for the business goal of the organization. This
is one kind of conflict management too which can threaten the
project unless appropriately negotiated.
 Risk Management
Every project has its underlying risks which may be
associated with each step of a project life cycle and
unanticipated during planning. The project manager must be
ready with a backup plan to handle such risks and should
also be capable of analyzing potential risks at some level.
Due to its utmost importance, PMBOK considers it as one of
the key knowledge areas for the project managers.
 Role and
Responsibilities
of a Project
Manager
Planning and Defining Scope
Task Breakdown and Activity
Planning
Sequencing the Tasks

Resource Planning

Scheduling the Tasks

Time Estimation

Cost Estimation

Budgeting
Making SOW and Other Project
Management Related Documentation
Preparing Charts for Scheduling
Leading the Team

Risk Analysis

Managing Risks and Resolving Issues

Monitoring Progress of the Tasks

Project Status Report Generation

Conducting Meetings

Partnering with Vendors

Controlling Quality
 SUMMARY
Summing up, the role of project manager is not
confined but goes through the whole project. All
you need to have is enough skills, knowledge,
and expertise to perform the role of project
manager. To build a successful project
management career, a project management
certification can also help you validate your skills
as a project manager.
CONSTRUCTION METHODS AND PROJECT
MANAGEMENT GROUP 2
 Thanks!
Do you have any questions?
[email protected]
0966 299 5981
Kitz Lape Luis

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