Chapter-2 Project Organization Structure

Chapter Two
Project Organizational Structures
Contents
•Defining scope
•Quality
•Activity sequence
•Work Breakdown Structure (WBS)
•Organization Breakdown Structure (OBS)
Defining Project Scope
• Scope refers to all the work involved in creating the products of the project and
the processes used to create them.
• It is what needs to be achieved and the work that must be done to deliver
a project.
• It determines and documents a list of specific elements in a project scope statement :
 project goals,
 deliverables (is a product produced as part of a project, such as products, planning
documents,…)
 features,
 functions,
 tasks,
 deadlines,
 costs
 project teams roles and responsibilities
 list of stakeholders who will be affected.
Project Scope Management
Project scope management

includes the processes
involved in defining and
controlling what is or is not
included In a project
It ensures that the project team and stakeholders have the same
understanding of what products the project will produce and what
processes the project team will use to produce them.
Collection of Project Requirements
• Collecting requirements: defining and documenting the features

and functions of the products produced during the project as well
as the processes used for creating them
Requirements include:
• Conditions or capabilities to be met by the final
product
• Details on product, functionality, features, attributes,
validation
• Need to be obtained, analysed, prioritised and
approved by stakeholders
Sources of Project Requirements
• Users stories – problems and expectations

• Brainstorming sessions – involve stakeholders and end users
• Review sessions – putting the requirements in front of the stakeholders to review
Project Charter
A project charter is a formal, typically short document that describes your project in
its entirety — including what the objectives are, how it will be carried out, and who
the stakeholders are. It is a crucial ingredient in planning out the project because it
is used throughout the project lifecycle
Stakeholders
• are people who are invested in the project and who will be affected by your
project at any point along the way, and their input can directly impact the
outcome.
•They are typically:
 the members of a project team,
 project managers,
 executives,
 project sponsors,
 customers, and users.
Project Quality
Project Quality includes the processes and activities that
determine quality policies, objectives and responsibilities so
that the project will satisfy the needs for which it was
undertaken (to meet stakeholders needs and expectations)
Activity Sequence
• the key benefit of this process is that it defines the logical sequence of
work to obtain the greatest efficiency given all project constraints.
WBS
• WBS breaks down the project deliverables into
manageable portions of work packages that you allocate a
unique ID to.
• This is commonly shown in a graphical form, such as an
organizational style chart or a fishbone diagram.
• The project manager defines the key objectives first and
then identifies the tasks required to reach those goals.
Example
Project objective: to evaluate the overall status of University industry

linkage of FTVET and its surrounding industry and to devise
improvement mechanisms.
Deliverables
• University’s policy environment and internal capacity development
• Industry’s policy environment and internal capacity development
•
Overall status of FTVET industry linkage
University’s policy environment Industry’s policy environment

and internal capacity and internal capacity
Internship and Tailored Industry Exploitation of new

Existence and Consultancy Technological Technology IP University staffs’ Tailored Training Internship,
externship staffs’ views technologies into
regularly and training developments transfer protection graduate views and graduate and externship,
coordination programs and Linkages new products,
services Linkages programs consultanc and exchange
updating the processes,
y services of staffs applications services
policy
environment for
UIL
collaboration
• Using a WBS, a large project is broken down into smaller subprojects which
may, in turn, be further subdivided into another, lower level of more
detailed sub component activities, and so on.
• Eventually, all the tasks for every activity are identified, commonalities are
discovered, and unnecessary duplication can be eliminated.
Project Organization
• The way you run projects is influenced by the way your
organization is structured
• Like any organization, projects can be managed and
controlled by using different type of organizational
structure.
• Before selecting an organizational structure, the project
team should assess the nature of the job to be performed
and its requirements.
• Formal and informal structures: The formal
organization structure represents the officially
sanctioned structure of a functional area.
• The informal organizations, on the other hand, develop

when people organize themselves in an unofficial way to
accomplish an objective that is in line with the overall
project goals.
• Both formal and informal organizations are placed in

every project environment.
• The structure may be defined in terms of:
– functional specializations,
– product requirements or
– both
• Large and complex projects should be based

on well-designed structures that permit
effective information and decision processes.
Functional organization:
•People are organized into groups

dedicated to a particular functions such
as HR, Finance, Marketing, …
•Structure and projects are initiated and
executed by the divisional managers, who
assume the project manager duties in
addition to their regular functional roles.
•They are often given secondary titles such
as “Coordinator of Project X.”
Product organization – for project-oriented
organization
•These companies do most of their work on a
project basis and are therefore structured
around projects.
•This includes consultants.
•They use the end product or goal of the

project as the determining factor for personnel
structure.
•This is often referred to as the pure project
organization or, simply, project organization.
•The project is set up as a unique entity within

the parent organization.
•It has its own dedicated technical staff and

administration.
• It is linked to the rest of the system through process reports, organizational policies,
procedures, and funding.
• In pure product organization:
 technology utilization and resource sharing are
limited because there is no single group responsible
for overall project planning.
• In the traditional organization structure:
– time and schedule efficiency are sacrificed.

Matrix organization:
• There are usually two chains of
command: horizontal and vertical.
• The horizontal line deals with the

functional line responsibility while
the vertical line deals with the
project line of responsibility.
• The project manager has total

responsibility and accountability for
the project success.
• The functional managers have the

responsibility to achieve and maintain
high technical performance of a
project.
Further reading:
•Discuss the Pros and Cons of the three project
organizational structures
End

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Chapter Two

Project Organizational Structures

Project scope management

• Collecting requirements: defining and documenting the features

• Users stories – problems and expectations

Project objective: to evaluate the overall status of University industry

• University’s policy environment and internal capacity development

• Industry’s policy environment and internal capacity development

University’s policy environment Industry’s policy environment

Internship and Tailored Industry Exploitation of new

• The informal organizations, on the other hand, develop

• Both formal and informal organizations are placed in

• Large and complex projects should be based

•People are organized into groups

•They use the end product or goal of the

•The project is set up as a unique entity within

•It has its own dedicated technical staff and

• In the traditional organization structure:

– time and schedule efficiency are sacrificed.

• The horizontal line deals with the

• The project manager has total

• The functional managers have the

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