Project Organisation Structure

Project Organisation Structure

The traditional form of organisation having functional divisions of management and a well-defined hierarchical relationship is well-suited only for established operations, characterised by a continuous flow of repetitive work where each department attends to specific function. This characteristic enables the emergence of a relative, stable, inter-departmental and inter-personal relationship, however this conventional type of management hierarchy is not suitable for projects. This is because of the fact that a project is characterised by certain distinctive features, such as

(i) a project is a non-repetitive and non-routine undertaking which is often plagued with many uncertainties;

(ii) a project requires coordinated efforts of persons drawn from different departments and disciplines as also contribution from external agencies; and

(iii) a project have dynamic, temporary and flexible relationships.

Thus, the very nature of projects and their complexities require a well-built project organisation structure, which again depends upon the volume and size of the project as well as the culture and motive of the project owner. Then, what type of organisation structure will be suitable for managing projects, before seeking an answer to this question, it is essential to know the various possible types of organisation structures available for project management.

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