Project Organisations

The traditional form of organisation is not very suitable for project work because it has no means of integrating different departments at levels below the top management and it does not facilitate effective communication,coordination and control.

Project Organisations may take one of the following three forms:

Line and Staff Organisation
Divisional Organisation
Matrix Organisation

Line and Staff Organisation

A Person is appointed with the primary responsibility of coordinating the work of the people in the functional departments.

Divisional Organisation

A separate division headed by the project manager is set up to implement the project.

Matrix Organisation

The personnel working on the project have a responsibility to their functional superior as well as to the project manager.

The line and functional form of organisation is conducive to an efficient use of resources but is not suitable for an effective realization of project objectives. The divisional form of organisation on the other hand is suitable for effective realization of project objectives but not conducive to an efficient use of resources. The matrix form of organization seeks to achieve the twin objectives of efficient use of resources and effective realization of project objectives-at the cost of greater organisational complexity.

Comprehensive project planning covers the following areas:

Project Work
Manpower and Organisation
Money
Information Systems

The important stages in the life cycle of a project are:

Project Development
Preliminary Engineering
Bidding and Contract negotiation
Engineering design
Purchase & Procurement
Construction
Commissioning

The two important tools of Project Planning are

Bar chart
Network Techniques

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