The Project Organizational Chart

One of the first requirements of the project startup phase is to develop the organizational chart for the project and determine its relationship to the parent organizational structure. Figure 4-8 shows, in abbreviated form, the six major programs at Dalton Corporation. Our concern is with the Midas Program. Although the Midas Program may have the lowest priority of the six programs, it is placed at the top, and in boldface, to give the impression that it is the top priority. This type of representation usually makes the client or customer feel that his program is important to the contractor.

The employees shown in Figure 4-8 may be part-time or full-time, depending upon the project's requirements. Perturbations on Figure 4-8 might include one employee's name

FIGURE 4-8. Dalton Corporation.
FIGURE 4-9. Midas Program office.

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FIGURE 4-10. Typical project team organization. Source: F. A. Hollenbach and D. P. Schultz, "The Organization and Controls of Project Management," Project Management Institute Inc., Realities in Project Management: Proceedings of the 8th Annual Seminars and Symposium, Chicago, Illinois (1977). All rights reserved. Materials from this publication have been reproduced with the permission of PMI. Unauthorized reproduction of this material is strictly prohibited.

identified on two or more vertical positions (i.e., the project engineer on two projects) or the same name in two horizontal boxes (i.e., for a small project, the same person could be the project manager and project engineer). Remember, this type of chart is for the customer's benefit and may not show the true "dotted/solid" reporting relationships in the company.

The next step is to show the program office structure, as illustrated in Figure 4-9. Note that the chief of operations and the chief engineer have dual reporting responsibility; they report directly to the program manager and indirectly to the directors. Again, this may be just for the customer's benefit with the real reporting structure being reversed. Beneath the chief engineer, there are three positions. Although these positions appear as solid lines, they might actually be dotted lines. For example, Ed White might be working only parttime on the Midas Program but is still shown on the chart as a permanent program office member. Jean Flood, under contracts, might be spending only ten hours per week on the Midas Program.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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