The Project Organizational Chart

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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 4-12 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 4-12 may be part-time or full-time, depending upon the project's requirements. Perturbations on Figure 4-12 might include one employee's name 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 4-13. 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 part-time 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.

If the function of two positions on the organizational chart takes place at different times, then both positions may be shown as manned by the same person. For example, Ed White may have his name under both engineering design and engineering testing if the two activities are far enough apart that he can perform them independently.

Figure 4-12. Dalton Corporation.

The people shown in the project office organizational chart, whether full-time or part-time, may not be physically sitting in the project office. For full-time, long-term assignments, as in construction projects, the employees may be physically sitting side by side (see Figure 4-14), whereas for parttime assignments, it may be imperative for them to sit in their functional group. Remember, these types of charts may simply be eyewash for the customer.

Most customers realize that the top-quality personnel may be shared with other programs and projects. Project manning charts, such as the one shown in Figure 4-15, can be used for this purpose. These manning charts are also helpful in preparing the management volume of proposals to show the customer that key personnel will be readily available on his project.

Linea Tiempo
Figure 4-13. Midas Program office.
Midas Suptlas Menegment

Figure 4-14. Typical project team organization. Source: F. A. Hollenbach and D. P. Schultz, "The Organization and Controls of Project Management," Proceedings of the Ninth Annual Seminar/Symposium on Project Management, 1977.

Figure 4-15.

Project engineering department manning for the Midas Program.

Figure 4-15.

Project engineering department manning for 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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