When managing projects, there are a lot of areas in which the organizational structure can influence project. This blog will try to identify what is the organization type in “HR Development Scheme” Project using the “Organizational influences on project” matrix. It will then analyze the advantages and disadvantages of the identified organizational structure type. Finally, some recommendation will be suggested to overcome challenges that the organizational type may face.
Takatuf is planning to recruit 10 fresh graduate to develop them to become certified, competent Human Resource leaders and specialist to serve Oman Oil Group company demand Human Resource requirements. The project aim to attach the best fresh talent and develop them for 3-4 years to achieve its objectives. The estimated budget for this program is 3 million USD.
Organizational structure influence on project:
There is a direct link between the project organizational structure and the project authority, resource availability, budget control, project manager role and the admin support. Below table illustrate the project characteristics versus the project organizational structure.
Table 1: Organizational influence on project
Analysis of HR Development Scheme Project organizational structure type
Below is the analysis of the HR Development Scheme Project organizational structure type:
Table 2: HR Development Scheme Project organizational structure analysis
Reflecting on the “HR Development Scheme” Project, the indications shows that the project organizational structure is matrix organizational type as the resource availability is low to moderate, the project budgeted is managed by both functional and project manager, and the project management administration staff are part-timers. On the other hand, we can see that the project manager has high authority which reflects a strong matrix approach, but at the same time, we see that he is a part-timer himself which reflect weak matrix approach.
The analysis above is clearly highlighting that the project structure type is Matrix organizational structure and likely to be balanced matrix which indicates that the power is mutually shared between the functional manager and the project manager.
The key positive point in such setup could be the possibility of having best-fit skilled people available when required.
In contrast, there are few disadvantages of such setup including disturbance on the unity of command, as the team will have two bosses, the function manager and the project manager, which will lead to conflict of priorities of the team. This will cause confusion on team members roles and responsibilities. In addition, having the budget control over two parties would leave the budget accountability vague in such project and will create confusion while compiling the budget after each stage or millstone. Last but not least, the communication clarity is affected in such setup.
Ideas to overcome challenges on Matrix organizational structure:
Having a well-defined communication will help the matrix based organizational structure to work better. Although conflicts between the project manager and functional manager are common in matrix organizational structure, addressing and solving them as early as possible and in private would help the project to go smoother. Finally, making the roles and responsibilities clear from day one and documenting them would significantly avoid many problems and will improve the performance of the team.
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