2.1 Project Organization Structures

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Project Organization Structure
Project Governance
The governance of a project is much like the governance of an organisation. Project governance is “the
set of policies, regulations, functions, processes, and procedures and responsibilities that define the
establishment, management and control of projects, programmes or portfolios”. (APM, 2012)
Project governance may be highly formalised, within the organisational governance, as illustrated below,
for large projects, or programmes or portfolios of projects. In smaller organisations, perhaps with less
complex projects, some of the governance and support for the project may be undertaken by the project
manager themselves. However the context, the roles and responsibilities for project governance need to
be clear and appropriate for the project and the organisation. (OpenLearn Course, n.d)
OpenLearn Course image adapted from ISO 21500
Project Governance Structure

Project governance refers to the system of decision-making and management that has been established
for a particular project. Effective governance ensures that:
▪ The project lifecycle is managed and the benefits are realised
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▪ The outcomes are aligned with business needs, balanced against the desires for interested parties
▪ Risk profiles are managed to acceptable levels
▪ Project deliverables meet the planned timelines, cost and quality
▪ The scope and milestones for go/no-go are managed
▪ The organisation has the capacity and capability to utilise the delivered outcomes
▪ Appropriate project management methodologies are used
▪ Variations are approved
Good Governance Features

According to Murray (2011), a good governance structure should have the following features:
Alignment of organisational objectives
▪ How does the project contribute to the organisation’s objectives?
▪ Focus on the outcomes rather than activities
Delegating authority
▪ Each person needs to know what their authority is and what needs to be referred to a higher level
of authority within the project governance
Reporting
▪ Those to whom responsibilities have been delegated should periodically report on progress
▪ Independent assurance
Counterbalance to self-reporting
▪ Independent check of structures and processes to review whether the objectives will be met
Decision gates
▪ At the specific points in the project lifecycle
▪ Provide formal points of control where a decision is made to grant or renew authority for the
project to continue
(Murray, 2011 in OpenLearn Course, n.d)
Project Stakeholders
An important part of the project management lifecycle is the identification of the relevant project
management stakeholders, which may be “an individual, group or organization that is actively involved in
the project, anyone who may affect, be affected by, or perceive itself to be affected by a decision, activity,
product or any type of outcome of the project” (PMI). They are involved at each step in the lifecycle of
the project with the main interest in the project’s outcome. They are typically the members of a project
team, project managers, executives, project sponsor, customers, and users. Stakeholders are people who
are invested in the project and who will be affected by the project at any point along the way, and their
input can directly impact the outcome. However, key stakeholders are those stakeholders who have the
influence and the authority to dictate whether a project is a success or not. Constant communication
between stakeholders is essential throughout the process.
Types of stakeholders
There are several types of project stakeholders and they can be grouped into two categories: Internal and
External.
Internal Stakeholders are those directly involved in the work of the project, such as:
▪ A project manager: the person responsible for managing the project
▪ A project team: the group of people that is performing the work of the project. They usually
perform under the project manager’s leadership
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▪ An organization: the enterprise whose employees are directly involved in the work of the project
▪ A sponsor: the financier, an executive in the organization with the authority to assign resources
and enforce decisions regarding the project and provide the financial resources for the
completion of the project
External Stakeholders are linked indirectly to the project, though their contribution can be essential to its
completion such as:
▪ Costumers/Users: this includes the individuals or the organization that will make use of the
project’s product or outcome
▪ A supplier: a person or establishment that provides any type of supply essential to the completion
of the project, such as equipment, goods or services needed for the execution and success of the
project
▪ A subcontractor: an entity which renders services or provides necessary materials for the
performance of the project whose affiliation to the project is through a contract
▪ The government: which authorizes the realization of the project or might be and end-of-line
consumer of the product or service
▪ Local community: the people of the community where the project was performed or are in any
way impacted by it
▪ Individual citizens: people that make use of the outcome or product of the project or are affected
by it
Typical stakeholders (both internal and external) in a project involve:

▪ Customers: the direct user of a product or service, often both internal and external to the
company executing the project
▪ Project manager: the project's leader
▪ Project team members: the group executing the project under the project manager's leadership
▪ Project sponsor: the project's financier
▪ Steering committee: advisory group providing guidance on key decisions. Includes the sponsor,
executives, and key stakeholders from the organization
▪ Executives: the top management in the company executing the project, those who direct the
organization's strategy
▪ Resource managers: other managers who control resources needed for executing the project
▪ Other stakeholders: depending on the project, some which may include sellers/suppliers,
contractors, owners, government agencies, media. etc.
(Clarizen blog, 2017)
(Wrike, n.d)
Direct Project Stakeholders

Another categorization is between direct and indirect stakeholders, whether they are internal or external
stakeholders, as illustrated below.
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The direct stakeholders include the following:
▪ Sponsor / owner - owns and finances for the project; defines requirements and benefit from
project
▪ Champion - senior user representative who convinces sponsor that the project should be
prioritised; trusted in the organisation
▪ Users - will operate the facility on behalf of the owner
▪ Project manager - responsible for planning, organising, implementing and controlling the work so
that the project is delivered to specification, under budget and on time
▪ Contractors / integrators - receive finance to resource the project and deliver the facility
(deliverables); define the work required to achieve objectives and deliver results to the owner.
▪ Champion, project manager and senior user representatives may form a steering committee
Project Organization Structure

A project organization or known as project management structure is a structure that facilitates the
coordination and implementation of project activities. Its main reason is to define the formal relationship
among members of the project management and the relationships with the external environment during
the project life-cycle. The structure defines the authority level, responsibilities and lines of communication
between individuals within the project showing where each person is placed in the project structure. The
project management structure also aims to reduce uncertainty and confusion throughout the project, but
particularly at the project imitation phase.
Each project has its unique characteristics and the design of an organizational structure should consider
the organizational environment, the project characteristics in which it will operate, and the level of
authority the project manager is given. This means a project structure can take on various forms having
its own advantages and disadvantages. The objective in designing a project structure is to provide a formal
environment that the project manager can use to influence team members to do their best in completing
their assignment and duties.
When determining the project organization/management structure for your project, ask the following:
▪ Who is ultimately responsible for the project?
▪ Who is accountable?
▪ Who has the authority to sign-off?
▪ What committees/boards do you need to negotiate with? In what order? What do they need to
know? What are the limits of their authority/responsibility?
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▪ To whom can you escalate the project if a quick decision is needed?
Roles, responsibilities and authority must be negotiated and understood by all stakeholders.
Project Organization Chart

The project organization structure is usually illustrated as a chart, but the structure cannot be tool rigid
or too loose. An organization chart shows where each person is placed in the project structure. It is the
relative locations of the individuals on the organization chart that specifies the working relationships, and
the lines connecting the boxes designate formal supervision and lines of communication between the
individuals.
(Remington 2002)
The project organization chart establishes the formal relationships among project manager, the project
team members, the development organization, the project, beneficiaries and other project stakeholders.
The project manager must create a project structure that will meet the various project needs at different
phases of the project. The structure cannot be designed too rigid or too lose, since the project
organization's purpose is to facilitate the interaction of people to achieve the project ultimate goals within
the specified constraints of scope, schedule, budget and quality.
However, the organization chart has a limited functionality; it only shows the hierarchical relationship
among the team members but does not shows how the project organization will work, it is for that reason
that the design should consider factors that will facilitate the operation of the structure; these include
communications, information flows, coordination and collaboration among its members.
(PM4DEV, 2016)
Factors in Designing a Project Structure
There are two design factors that significantly influence the process of developing a project management
structure, such as level of specialization, and the need for coordination. The project manager should
consider these factors at the moment of designing the project organization in order to maximize the
effectiveness of the structure.
Specialization
Specialization affects the project structure by the degree of specialty in technical areas or development
focus; projects can be highly specialized and focus on a specific area of development, or have different
broad specializations in many areas of development. For large projects that have multiple specializations
or technical areas, each area may have a different need; from differences in goals, approaches and
methodologies, all of which influence the way the project will implement its activities. While specialization
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allows each project component to maximize their productivity to attain their departmental/areas goals,
the dissimilarities may lead to conflict among the members or leads of each component. In general, the
greater the differences, the more problems project managers have in getting them to work together.
Coordination
Coordination is required to bring unity to the various elements that make up a project. The project work
is organized around a work breakdown structure (WBS) that divides the overall project goals into specific
activities or tasks for each project area or component; the project manager must design an organizational
structure that ensure that the various components are integrated so that their efforts contribute to the
overall project goal. Integration is the degree of collaboration and mutual understanding required among
the various project components to achieve project goals. Most projects are characterized by the division
of labour and task interdependencies, creating the need for integration to meet project objectives. This
need is greatest when there are many project components that have different specializations.
(PM4DEV, 2016)
Benefits of Project Organizational Structure
Having an appropriate project organizational model can bring benefits to any project. Some of these
advantages are:
▪ Allowing an project to accomplish the scope
▪ Keeping attention on project outcome
▪ Allowing better control and use of resources
▪ Better direction and coordination of people, their skills and specialization
▪ Making the decision-making process more efficient, smoother, and faster
▪ Enabling easier and better communication, which helps reducing conflicts
▪ Allowing project teams to perform better
▪ Helping identifying roles and responsibilities in a clear and precise way
(Adapted from Twproject, 2019)
Types of Project Organization Structures

The project organizational structure is an essential configuration for determining the hierarchy of people,
their function, workflow and reporting system. The factor that is the most significant when deciding on
the design of the organization structure is the extent of authority and responsibility top management is
prepared to delegate to the project manager.
According to Project Management for Development Organizations (PM4DEV), there are three main types
of organizational structures, each of which has their own unique characteristics, and all are defined by the
level of organizational authority given to the project manager:
▪ Programmatic (hierarchical and functional)

▪ Matrix
▪ Project (pure project based)
Programmatic Based
The programmatic focus refers to a traditional structure in which program sector managers have formal
authority over most resources. It is only suitable for projects within one program sector. However, it is
not suitable for projects that require a diverse mix of people with different expertise from various program
sectors. In a programmatic based organization, a project team is staffed with people from the same area.
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All the resources needed for the project team come from the same unit. For instance, if the project is
related to the health area, the project resources come from the health unit.
Google image
The most obvious advantage of programmatic based projects is that there are clear lines of authority, in
large projects the project managers tend to also be the program unit manager. There is no need to
negotiate with other program units for resources, since all of the staff needed for the project will come
from the same program area. Another advantage of this type of organization is that the team members
are usually familiar with each other, since they all work in the same area.
The team members also tend to bring applicable knowledge of the project. A major disadvantage of the
programmatic based organization is that the program area may not have all of the specialists needed to
work on a project. A nutrition project with a water component, for instance, may have difficulty acquiring
specialty resources such as civil engineers, since the only people available will work in their own program
unit. Another disadvantage is that project team members may have other responsibilities in the program
unit since they may not be needed fulltime on a project. They may be assigned to other projects, but it is
more typical that they would have support responsibilities that could impact their ability to meet project
deadlines.
Functional Project Teams

The features of the functional (programmatic) project teams are as follows:
Advantages
▪ A team member can work on several projects
▪ Technical expertise is maintained within the functional area even if individuals leave the project
or organization
▪ Functional area is a home after the project is completed
▪ A critical mass of specialized functional-area experts creates synergistic solutions to a project’s
technical problems
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Disadvantages
▪ Motivation of team members is often weak
▪ Needs of the client are secondary and are responded to slowly
▪ Aspects of the project that are not directly related to the functional are get short-changed
(Business Administration Blog, 2012)
Matrix Based
Matrix based project organizations allow program units to focus on their specific technical competencies
and allow projects to be staffed with specialists from throughout the organization. For instance, nutrition
specialists may report to one program unit, but would be allocated out to work on various projects. A
health specialist might report to the health unit, but be temporarily assigned to a project in another
project that needs health expertise. It is common for people to report to one person in the programmatic
unit, while working for one or two project managers from other projects in different programmatic units.
Google image
The main advantage of the matrix based organization is the efficient allocation of all resources, especially
scarce specialty skills that cannot be fully utilized by only one project. For instance, monitoring and
evaluation specialists may not be utilized full-time on a project, but can be fully leveraged by working on
multiple projects. The matrix based organization is also the most flexible when dealing with changing
programmatic needs and priorities. Additional advantages to matrix management are: it allows team
members to share information more readily across the unit boundaries, allows for specialization that can
increase depth of knowledge and allow professional development and career progression to be managed.
It is easier for a program unit manager to loan an employee to another manager without making the
change permanent. It is therefore easier to accomplish work objectives in an environment when task loads
are shifting rapidly between programmatic units.
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The main disadvantage is that the reporting relationships are complex. Some people might report to
programmatic unit managers for whom little work is done, while actually working for one or more project
managers. It becomes more important for staff members to develop strong time management skills to
ensure that they fulfil the work expectations of multiple managers. This organization also requires
communication and cooperation between multiple programmatic unit managers and project managers
since that all be competing for time from the same resources. Matrix management can put some difficulty
on project managers because they must work closely with other managers and workers in order to
complete the project. The programmatic managers may have different goals, objectives, and priorities
than the project managers, and these would have to be addressed in order to get the job done. An
approach to help solve this situation is a variation of the Matrix organization which includes a coordinating
role that either supervises or provides support to the project managers. In some organizations this is
known as the Project Management Office (PMO), dedicated to provide expertise, best practices, training,
methodologies and guidance to project managers.
The PMO unit also defines and maintains the standards of project management processes within the
organization. The PMO strives to standardize and introduce economies of scale in the implementation of
projects. The PMO is the source of documentation, guidance and metrics on the practice of project
management and implementation. The PMO can also help in the prioritization of human resources
assigned to projects.
Project Management Office (PMO)
Google image
Project Matrix Teams
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Given the fact that matrix project attempts to blend properties of functional and pure project structure,
different projects (rows of matrix) borrow resources from functional areas (columns).
Advantages
▪ Communication between functional divisions is enhanced
▪ A project manager is held responsible for successful completion of the project
▪ Duplication of resources is minimized
▪ Team members have a functional “home” after project completion, so they are less worried
about life-after-project than if they were a pure project organization
▪ Policies of the parent organization are followed
Disadvantages
• There are two ‘bosses’
• It is doomed to failure unless the PM has strong negotiating skills
• Suboptimization is a danger, as PMs hoard resources for their own project, thus harming other
projects
Project Based
In this type of organization project managers have a high level of authority to manage and control the
project resources. The project manager in this structure has total authority over the project and can
acquire resources needed to accomplish project objectives from within or outside the parent organization,
subject only to the scope, quality, and budget constraints identified in the project. In the project based
structure, personnel are specifically assigned to the project and report directly to the project manager.
The project manager is responsible for the performance appraisal and career progression of all project
team members while on the project. This leads to increased project loyalty. Complete line authority over
project efforts affords the project manager strong project controls and centralized lines of
communication. This leads to rapid reaction time and improved responsiveness. Moreover, project
personnel are retained on an exclusive rather than shared or part-time basis. Project teams develop a
strong sense of project identification and ownership, with deep loyalty efforts to the project and a good
understanding of the nature of project’s activities, mission, or goals.
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Google image
Pure project based organizations are more common among large and complicated projects. These large
projects can absorb the cost of maintaining an organization whose structure has some duplication of effort
and the less than cost-efficient use of resources. In fact, one major disadvantage of the project based
organization is the costly and inefficient use of personnel. Project team members are generally dedicated
to one project at a time, even though they may rarely be needed on a full-time basis over the life cycle of
the project. Project managers may tend to retain their key personnel long after the work is completed,
preventing their contribution to other projects and their professional development. In this type of
organization, limited opportunities exist for knowledge sharing between projects, and that is a frequent
complaint among team members concerning the lack of career continuity and opportunities for
professional growth. In some cases, project personnel may experience a great deal of uncertainty, as
organization’s or donor’s priorities shift or the close of the project seems imminent.
One disadvantage is duplication of resources, since scarce resources must be duplicated on different
projects. There can also be concerns about how to reallocate people and resources when projects are
completed. In a programmatic focus organization, the people still have jobs within the program unit. In a
project-based organization it is not always clear where everyone is reassigned when the project is
completed. Another disadvantage is that resources may not be needed as a full time for the entire length
of the project, increasing the need to manage short term contracts with consultants and other subject
matter experts.
A variety of this pure project approach is temporarily project-based organizations. This organization
consists of a project team pulled together temporarily from their program unit and led by a project
manager that does not report to a programmatic unit. The project manager has the full authority and
supervision of the project team.
Pure Project Teams

A pure project team is where a self-contained team works full time on the project.
Advantages:
▪ The project manager has full authority over the project
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▪ Team members report to one boss
▪ Lines of communication are shortened
▪ Decisions are made quickly
▪ Team pride, motivation and commitment are high
Disadvantages
▪ Duplication or resources
▪ Organizational goals and policies ignored
▪ Lack of new technology transfer due to weakened functional divisions
▪ Team members have no functional are home
Mixed
Another design is based on a mixed structure that includes a matrix, programmatic focus and project
based; this mix reflects the need for more flexibility in a development organization to accommodate
different requirements. For example a health program may have a couple of projects short term and long
term all reporting to the program manager. An education project may be organized on a matrix using
resources part-time from other units, and a large water project organized as a fully project-based were all
staff report to the project manager. It is not unusual to find this type of mixed designs on development
organizations.
Networked Project Teams

Typically, project networks consist of a core set of team members who bring in noncore contributors
(such as other company employees, suppliers, consultants or customers) from their personal networks
who can provide knowledge, information and feedback regarding the team's task (Cummings and
Pletcher, 2011).
Virtual Project Teams

Virtual project teams are those where at least one member of the team is remote from the others. Due
to a combination of globalisation, outsourcing, the use of the most talented people wherever they are
based, flexible working, and more, virtual projects are on the rise. Today's project manager needs to be
able to deliver projects virtually, and this paper aims to help them to do so. The following list introduces
the challenges that this type of project team encounters:
▪ Missing out on dynamics and nuances of conversation
▪ Working across time zones
▪ Working across different cultures
▪ Building trust
(Pullan and Prokopi, 2016)
Roles and Responsibilities in a Typical Project Lifecycle

Project Board can go by many other names, such as steering group or steering committee. it provides the
management support to the project manager. The project board is chaired by the project sponsor and
typically includes a number of other senior stakeholders as well as the project manage
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The project board is chaired by the project sponsor and typically includes a number of other senior
stakeholders as well as the project manager. These are the key people who have the ability to get things
done on the project. Their job is to oversee the project and keep it moving in the right direction.
Project boards are set up at the beginning of the project lifecycle and operate until it's completed. It has
four key roles.
Project Board Governance

The project board has oversight responsibility for the work that the project team is carrying out. It ensures
that policies are adhered to at the corporate level and the program level.
Board Direction
There are often decisions to be made on a project that falls outside of the remit of the project manager.
That decision needs to be discussed with a number of stakeholders. The issue will go to the project board.
The board's role overall here is to keep the project on course by providing the appropriate direction for
the team. They contribute to setting the vision at the start of the project and keep the project on track
throughout.
The project manager is the key person who provides the needed information. The rest of the board is
there to provide help and support.
Decision-Making
The project board is primarily a decision-making body. Their role is to keep the project moving forward by
solving problems that can block its progress and helping the project manager see a clear route to
successful completion.
Throughout a project, the project manager may put recommendations to the board. This could include
asking it to address:
Risks and potential challenges
Resource problems, like not having the right team members available
Schedule delays
Budget overruns
The board may accept the project manager’s recommendation. Or it may come up with other suggestions
for a way forward. The board's value is that its members collectively have a big picture.
Approving Spending
The project board approves the overall budget. It doesn't usually demand to see every invoice but it
monitors on going spending to ensure it stays on track.
The project manager goes to the board when it looks like it's time to dip into contingency funds or
management reserves. The board can authorize overspends and access additional funds when it can be
justified.
Overall, the project board provides an essential governance and steering function for the project team.
Its direction and advice help the project manager keep the project moving in the right direction, and it is
perfectly placed to step in and help if anything starts to go wrong.
Project Owner is known as the creator of the project. The owner holds the power of selecting, promoting
and removing the other team members. S/he oversees the overall operations of the project and the duties
of the individual team members also. The project owner is the person who is in overall charge and is the
project’s key stakeholder. They
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▪ Are responsible for the project’s business case
▪ Convey a clear vision of the project
▪ Hold the power of selecting, promoting and removing the other team members
▪ Oversee the overall progress of the project
Project Sponsor is responsible for advocating for the project at the executive level and with control
agencies and stakeholders. The Project Sponsor is responsible for approving the project charter and
authorizing the project to proceed to the next project phase. The project sponsor is the professional who
provides the financial resources required by the project. The sponsor communicates with the project
manager on a regular basis, in order to review the emerging issues regarding the project. They manage
the resource needs of the project and prepare the financial reports of the different stages of the project.
Project Sponsor is that person or group who owns the project. Every project has one. They are the reason
for the project. While they don’t manage the day-to-day operations of a project, they are above the
project manager in terms of project hierarchy. Most likely, the project sponsor has been involved with the
project from the very beginning. They were the one who helped conceive it and advocated for it.
(Malsam, 2019)
The project sponsor can be crucial to the success of a project. The project sponsor is responsible for many
aspects of the project, from initiating and ensuring the success to approving and establishing parts of the
project. According to the Project Management Institute (PMI), the project sponsor role can be broken into
three parts: vision, governance and value or benefits realization. They break those down in the following
way:
Vision
▪ Makes sure the business case is valid and in step with the business proposition
▪ Aligns project with business strategy, goals and objectives
▪ Stays informed of project events to keep project viable
▪ Defines the criteria for project success and how it fits with the overall business
Governance
▪ Ensures project is properly launched and initiated
▪ Maintains organizational priorities throughout project
▪ Offers support for project organization
▪ Defines project roles and reporting structure
▪ Acts as an escalation point for issues when something is beyond the project manager’s control
▪ Gets financial resources
▪ Decision-maker for progress and phases of project
Values & Benefits
▪ Makes sure that risks and changes are managed
▪ Helps to ensure control and review processes
▪ Oversees delivery of project value
▪ Evaluates status and progress
▪ Approves deliverables
▪ Helps with decision-making
▪ Responsible for project quality throughout project phases
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The role of project sponsor is ongoing, and continued engagement with the project is likely to be essential.
However, what that engagement needs to be will vary between projects, and is also likely to vary over the
life cycle of a single project. During the project initiation, the project sponsor selects the project manager
and set their authority. Also, during the project initiation, the project sponsor makes sure the project is
appropriate for the organization, offering input on the project charter and participates in the kick-off
meeting. The sponsor helps with the decision making during this phase. For the planning phase, the
project sponsor is checking to make sure the project plan is realistic and feasible. For the implementation
and control phases, the project sponsor should work with the project manager, but not overstep
boundaries. The project sponsor evaluates the project’s actual progress against what was planned and
provides feedback to the project manager as necessary. During the closing phase, the project sponsor is
part of the post-mortem evaluation on performance and other aspects of the project. They make sure
that handoffs and signoffs are done properly. Project sponsors help facilitate the discussion that decides
whether a project was a success or failure.
The role of Project Sponsor in the Governance and in project support
Project Manager executes the project management plans. The Project Manager continuously manages
and evaluates the overall project performance to provide confidence that the project will satisfy the
relevant quality standards. The Project Manager performs scope verification and control that identifies
and manages all elements (people, requirements, and technology) inside and outside of the project that
increase and decrease the project scope beyond the required or defined need of the original, agreed upon
Project Scope. This is done through a variety of techniques and as documented in the master project
management plan. The Project Manager continuously utilizes performance reporting as a necessary
process for collecting and distributing performance information. This includes status reporting, progress
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measurement, and forecasting. The project manager takes into account the day to day activities related
to the project and undertakes the strategic decision making process. The manager works with the vendors
and develops various project schedules. S/he develops the budget and develops various strategies for
managing the risks associated with the project. The professional communicates with the senior
management regarding the performances of the project team.
Project Scheduler is responsible for coordinating, managing and controlling inputs to the project plan.
The project Scheduler performs schedule control which involves influencing the factors that create
schedule changes to ensure that changes are beneficial, determining that the schedule has changed and
managing the actual changes when and as they occur. This is done through a variety of techniques and as
documented in the master project management plan.
Financial Analyst is responsible for managing, tracking and controlling budget/costs,

coordinating/preparing budgetary documents, reviewing budget/contract expenditures, and collecting
and reporting financial metrics. The Financial Analyst performs the cost control process of influencing the
factors that create changes to the cost baseline to ensure that changes are beneficial, determining that
the cost baseline has changed and managing the actual changes when and as they occur. This is done
through a variety of techniques and as documented in the Project’s Cost Management Plan.
Quality Manager is charged with overseeing and ensuring both product and process quality for the
project. The Quality Manager provides insight into the project and contractor methods of doing business
by reviewing process and product activities for adherence to standards and plans. The Quality Manager
performs quality control which involves monitoring specific project results to determine if they comply
with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. This is
done through a variety of techniques and as documented in the Quality Management plan.
Risk Manager is responsible for managing, tracking, and controlling risks on the project. The Risk Manager
invokes the risk control process to track identified risks, monitoring residual risks, identifying new risks,
executing risk response plans, and evaluating their effectiveness throughout the project life cycle. This is
done through a variety of techniques and as documented in the Risk Management plan.
Project Team is responsible for performing the tasks defined for them in the project staffing plan and
project master plan. Team members will consist of people having various skills sets, at varying levels of
performance, from multiple organizations within the public and private sectors. Team members will be
determined by the needs of the project and will fluctuate as the project continues. Team members will
consist of permanent, limited term and contracted employees at all levels within the project.
Team Members are the basic constituents of a project management hierarchy and their job titles and
profiles differ as per the type of the project being undertaken in the organization. For example, a web
development project is comprised of team members such as database architect, programmer and the
designers.
Team Leader assists all the team members involved in a particular project. The leader prioritizes the tasks
and divides them in the members according to their particular area of expertise. S/he serves as a
communication channel between the team members and the project manager. S/he plans and
coordinates the various meetings of the project team and keeps the official records of all the
accomplishments of the project.
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They are allocated tasks by their project manager and are expected to report back to them with their
progress and if any issues have arisen. Team members are not necessarily from the same department as
some projects require skillsets from different parts of an organisation. Their individual job role will depend
on the type of the project.
(Kahootz, 2017)
(Best Practices, n.d.)
Impact of Project Change Request on Resources

Change control is an important part of the project management process as any uncontrolled change to
the project might disrupt services and also ensures the efficient use of resources. The overall effect on
the project involves:
▪ impact on timescales
▪ extra resources needed
▪ impact on the other projects and business activities
▪ new risks and issues
(Haughey, 2011)
Changes to project will have some sort of impact. The scope change can impact the timeline, the budget
and therefore the quality of the product. This area should minimally explain the cost of the changes, the
impact on the timeline and potential quality results. There may also be resources impacts. The team may
either have to get additional people or may define a need for existing resources to add or remove time
on the project. All of these items should be defined clearly to enable the customer’s decision making.
(Carman, 2013)
Change order request are a central element in the project’s change management process. All changes to
the project baselines for scope, budget, schedule, quality and risk are documented and analyzed as part
of the project change management process. It is the project manager’s job to gather the information
about each change request and analyze the effect of change on the entire project. The impact of the
change request on the project resources and work requires assessing and re-estimating the work required
in the tasks affected by the change order request. That should include a description of changes required
in the skill sets of the people working on the tasks affected by the change. The change request will have
an impact on the duration of the affected tasks. This means the project manager needs to check if the
change with affect tasks on the critical path (and review if necessary) and how the change will ripple
through the project and affect the overall completion data.
(Billows, 2019)
List of References
17
Business Administration Blog (2012). Project Management. [Online] Available from:
https://businessadministrationblog.wordpress.com/2012/02/03/project-management-pure-functional-
and-matrix-project-statement-of-work-work-breakdown-structure/ (Accessed on 04/11/2019)
Billows, D. (2019). Project Change Management. [Online] Available from:

https://4pm.com/2019/08/02/change-requests-4pm-com/ (Accessed on 4/11/2019)
Clarizen blog (2017). Who Are Project Management Stakeholders? [Online] Available from:
https://www.clarizen.com/project-management-stakeholders/ (Accessed on 04/11/2019)
Carman, C. (2013). 4 Steps to Effective Change Control. [Online] Available from:

https://insights.dice.com/2013/05/08/why-change-control-isnt-for-sissies/ (Accessed on 4/11/2019)
Cummings, J. and Pletcher, C. (2011). Why Project networks Beat Project Teams. [Online] MIT Sloan
Management Review. Available from:https://sloanreview.mit.edu/article/why-project-networks-beat-
project-
teams/#:~:targetText=Typically%2C%20project%20networks%20consist%20of,feedback%20regarding%2
0the%20team's%20task. (Accessed on 04/11/2019)
Haughey, D. (2011). What is Change Control? [Online] Available from:

https://www.projectsmart.co.uk/what-is-change-
control.php#:~:targetText=The%20change%20control%20process%20in,the%20efficient%20use%20of%
20resources. (Accessed on 4/11/2019)
Hierarchy structure (n.d). Project Management Hierarchy. [Online] Available from:

https://www.hierarchystructure.com/project-management-hierarchy/ (Accessed on 04/11/2019)
Kahootz (2017). An overview of a typical project management hierarchy. [Online] Available from:
https://www.kahootz.com/project-management-hierarchy/ (Accessed on 04/11/2019)
Malsam, W. (2019) What is Project Sponsor? Defining This PM Role. [Online] Available from:
https://www.projectmanager.com/blog/what-is-a-project-sponsor (Accessed on 01/11/2019)
Pullan, P. & Prokopi, E. (2016). Leading virtual project teams: dos and don'ts. Paper presented at PMI®
Global Congress 2016—EMEA, Barcelona, Spain. Newtown Square, PA: Project Management Institute.
[Online] Available from: https://www.pmi.org/learning/library/leading-virtual-project-teams-10190
(Accessed on 04/11/2019)
PM4DEV (2016). Project Management Organization Structure. [Online] Available from:

https://www.pm4dev.com/resources/free-e-books/3-the-project-management-organizational-
structures/file.html
Twproject (2019). Project organizational structures in Project Management. [Online] Available from:
https://twproject.com/blog/project-organizational-structures-project-management/
https://www.theprojectgroup.com/blog/en/hybrid-project-management/
18
http://www.bestpractices.ca.gov/sysacq/documents/Project%20Monitoring%20&%20Controlling%20Pr
ocedure.pdf
19

2.1 Project Organization Structures

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Project Organization Structure

OpenLearn Course image adapted from ISO 21500

Project Governance Structure

Good Governance Features

Typical stakeholders (both internal and external) in a project involve:

Direct Project Stakeholders

Project Organization Structure

Project Organization Chart

Types of Project Organization Structures

▪ Programmatic (hierarchical and functional)

Functional Project Teams

Project Management Office (PMO)

Project Matrix Teams

Pure Project Teams

Networked Project Teams

Virtual Project Teams

Roles and Responsibilities in a Typical Project Lifecycle

Project Board Governance

The role of Project Sponsor in the Governance and in project support

Financial Analyst is responsible for managing, tracking and controlling budget/costs,

Impact of Project Change Request on Resources

Billows, D. (2019). Project Change Management. [Online] Available from:

Carman, C. (2013). 4 Steps to Effective Change Control. [Online] Available from:

Haughey, D. (2011). What is Change Control? [Online] Available from:

Hierarchy structure (n.d). Project Management Hierarchy. [Online] Available from:

PM4DEV (2016). Project Management Organization Structure. [Online] Available from:

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