Chapter 6

Organization and
Management Study

Chap 6-1
 After completing this chapter, you
should be able to:

6.1 Project organization and management

6.2 Organizational structure
6.3 Project human resource requirement
planning
6.4 Project operational and financial manuals
6.5 Project organization and management
cost forecasting

Chap 6-2
 6.1 Project organization and
management

 Refer to the processes, structures, and

practices involved in planning, executing,
and controlling projects to achieve specific
goals within defined constraints such as
time, budget, and resources.

Chap 6-3
 key aspects of project
organization and
management:

1. Project Definition: Clearly define the

project scope, objectives, deliverables, and
success criteria.
criteria
2. Project Planning: Develop a
comprehensive project plan that outlines
the tasks, activities, timelines, and
resources required to complete the project.
3. Team Formation: Assemble a project team
with the necessary skills and expertise to
execute the project.
Chap 6-4
4. Communication and Collaboration:
Establish effective communication channels
to facilitate information sharing.
6. Risk Management: Identify potential
risks and develop strategies to mitigate or
address them.
7. Resource Management: Allocate and
manage project resources, including
personnel, budget, equipment, and materials.

Chap 6-5
8. Task Tracking and Monitoring: Monitor
project tasks, milestones, and deadlines.
9. Change Management: Anticipate and
manage changes that may arise during the
project.
10. Quality Assurance: Define quality
standards and ensure that project deliverables
meet the specified requirements.

Chap 6-6
11. Stakeholder Management: Engage and
manage project stakeholders throughout the
project lifecycle.
12. Project Documentation: Maintain
comprehensive project documentation,
including project plans, progress reports,
meeting minutes, and any changes or
decisions made during the project.

Chap 6-7
13. Project Closure: Close the project by
completing all required deliverables,
obtaining necessary approvals, conducting
lessons learned sessions.

Remember that project organization and

management practices can vary depending
on the project's size, complexity, industry,
and organizational culture.

Chap 6-8
 6.2 Organizational structure

 Organizational structure refers to the way

an organization is designed and arranged to
define roles, responsibilities, authority
relationships, and communication channels
within the organization.
 It determines how tasks are divided,
coordinated, and controlled to achieve the
organization's goals.

Chap 6-9
 Common types of
organizational structures

1. Functional Structure: In a
functional structure, the organization is
divided into departments based on
functions such as finance, marketing,
operations, and human resources.

Chap 6-10
A Sample of Functional Structure

C lark J oh n s on
CEO

E xec . V .P . S en ior V . P . S en ior V .P .

F in an c e & A d m in . S tores L og is tic s

V .P . Tax V .P . C on troller V .P .
D is trib u tion

V .P . M IS D irec tor
C orp . P lan n in g D irec tor
Tran s p ortation
2. Divisional Structure: In a divisional
structure, the organization is divided into
semi-autonomous divisions or business
units based on products, services,
geographical regions, or customer
segments.
Each division operates as a separate

entity with its own functions,

Chap 6-12
 Geographic Structure
CE O
Corporation

Corporate
M anagers

Northern W estern S outhern E astern

Region Region Region Region
 Product Structure
CE O
Corporation

Corporate
M anagers

W ashing M achine Lighting T elevision

Division Division Division
3. Matrix Structure: A matrix structure
combines functional and divisional structures.
 It involves creating dual reporting
relationships, where employees report to both
functional managers.
can create complexity and potential conflicts

between different reporting lines.

Chap 6-15
 Matrix Structure
CEO

Func.
Managers

Sales Design Production

Product
Team Managers

team A

Product
team B
Product Team
Product
team C

= two boss employee

11/14/24
16
 Matrix structure
Manager Manager Manager Manager
matrix Production Marketing HRM Finance
bosses

Manager, Production, Marketing, HRM, Finance,

Project A Project A Project A Project A Project A

Manager, Production, Marketing, HRM, Finance,

Project B Project B Project B Project B
Project B
Manager, Production, Marketing, HRM, Finance,
Project C Project C Project C Project C
Project C
Manager, Production, Marketing, HRM, Finance,
Project D Project D Project D Project D Project D

Manager, Production, Marketing, HRM, Finance,

Project E Project E Project E Project E Project E
two-boss
employees

11/14/24
17
4. Team-Based Structure: In a team-based
structure, the organization is organized around self-
managed teams or cross-functional teams.
fosters collaboration, flexibility, and innovation but

requires strong communication and coordination

among teams.
It's important to note that organizations may adopt a
combination of these structures or customize them to
fit their specific needs.
The chosen organizational structure should align with
the organization's strategy, goals, culture, and
external environment to facilitate effective
communication, decision-making, and performance.

Chap 6-18
 6.3 Project HR requirement
planning
 involves determining the type,
number, and skills of personnel
needed for a project.
 It ensures that the right people with
the appropriate skills and
competencies are available at the right
time to successfully execute the
project.

Chap 6-19
 Steps involved in HR
requirement planning:
1. Identify Project Roles and Responsibilities
 includes determining project managers, team

leads, subject matter experts, and other

specialized positions based on the project
scope, objectives, and deliverables
2. Define Required Skills and
Competencies
Like project management skill, problem solving,
domain knowledge ,communication skill.

Chap 6-20
3. Assess Current Resource Availability:
4. Perform Gap Analysis: Compare the
skills and competencies required for the
project with the existing resources.
5. Develop a Resource Plan: Develop a
resource plan that outlines the specific
human resource requirements for the project.

Chap 6-21
6. Consider Resource Constraints: Take into
account any constraints that may impact
resource availability, such as budget limitations,
resource availability from other projects, or the
need to comply with organizational policies or
labor regulations.
7. Recruitment and Selection:
8. Training and Development:
9. Resource Allocation and Scheduling:
10. Performance Management

Chap 6-22
 6.4 Project operational and
financial manuals
 Project operational and financial manuals
are important documents that provide
guidelines, procedures, and instructions for
managing the operational and financial
aspects of a project.
 These manuals serve as reference materials
and help ensure consistency, efficiency, and
compliance with established processes.

Chap 6-23
 Operational Manual

1. Introduction: Provides an overview of the

project and its objectives, along with an
explanation of the purpose and scope of the
operational manual.
2. Project Governance: Describes the project
governance structure, including roles,
responsibilities, and decision-making
processes.
processes
3. Project Lifecycle: Outlines the phases,
activities, and deliverables of the project
lifecycle.
Chap 6-24
4. Project Planning and Control: Details
the procedures and tools used for project
planning, including scope definition,
scheduling, resource allocation, and risk
management.
5. Communication and Reporting: Defines
communication channels, reporting
requirements, and frequency of project
updates.

Chap 6-25
6. Quality Management:
7. Procurement and Contract
Management: Provides guidelines for
procurement processes, including
vendor selection, contract negotiation,
and contract administration.

Chap 6-26
 Financial Manual:

1. Financial Management Framework:

Outlines the financial management
policies, principles, and guidelines that
govern the project's financial activities.
2. Budgeting and Cost Control: Describes
the procedures for developing and
managing the project budget.
3. Financial Reporting:

Chap 6-27
4. Risk and Contingency Management:
5. Cash Flow Management: Provides guidance
on managing project cash flow, including
procedures for cash inflows and outflows, cash flow
forecasting, and working capital management.
6. Audit and Compliance: Describes procedures
for internal and external audits,audits ensuring
compliance with financial regulations, and
maintaining proper documentation and records.

Chap 6-28
 management cost
forecasting

 Project organization and management cost

forecasting involves estimating and
predicting the costs associated with
organizing, planning, and managing a
project.
 It helps project managers and stakeholders
in budgeting, resource allocation, and
financial planning.

Chap 6-29
 key steps involved in
forecasting organization and
management costs:
1. Identify Cost Categories: Determine the
cost categories related to project
organization and management.
These may include personnel salaries,
training costs, software and tools,
communication and collaboration
platforms, travel expenses--.
2. Estimate Resource Requirements:

Chap 6-30
3. Determine Resource Rates: Determine the
rates or costs associated with each resource
based on salaries, hourly rates, or contract
rates.
4. Estimate Timeframes: Estimate the
duration
5. Calculate Personnel Costs
6. Consider Non-Personnel Costs:
7. Summarize and Consolidate Costs:

Chap 6-31
8. Include Contingency: Consider adding a
contingency reserve to account for
unforeseen or unknown factors.
9. Review and Validate
10. Monitor and Update: Continuously monitor
the actual costs incurred during project
organization and management activities.

Chap 6-32
Chap 6-33
T.H.A.N.K Y.O.U F.O.R
L.I.S.T.E.N.I.N.G

Chap 6-34