With respect to organization, project management calls for the appointment of one person, the project manager, who has responsibility for the detailed planning, coordination, and ultimate outcome of the project. Usually appointed from the middle management ranks, the project manager is supplied with a team, often numbering no more than half a dozen people for a $10 million project. Team members, drawn from the various functional departments involved in the project, report directly to the project manager.
Within the limits of the project, the project manager's responsibility and authority are interfunctional, like that of top management for the company as a whole. Despite this similarity, however, this function cannot safely be superimposed on a top executive's normal workload. Every company 1 know that has tried giving operating responsibility for the management of a complex project to a division manager is soon swamped in a tidal wave of detail. Most projects call for more and faster decisions than does routine work, and clear precedents are usually lacking. Few projects are ever successfully managed on a part-time basis.
The essence of project management is that it cuts across, and in a sense conflicts with, the normal organization structure. Throughout the project, personnel at various levels in many functions of the business contribute to it. Because a project usually requires decisions and actions from a number of functional areas at once, the main flow of information and the main interdependences in a project are not vertical but lateral. Up-and-down information flow is relatively light in a well-run project; indeed, any attempt to consistently send needed information from one functional area up to a common authority and down to another area through conventional channels is apt to cripple the project and wreck the time schedule. Projects are characterized by exceptionally strong lateral working relationships, requiring closely related activity and decisions by many individuals in different functional departments.
Necessarily though, a project possesses a vertical as well as a horizontal dimension, since those who are involved in it at various stages must often go to their superiors for guidance. Moreover, frequent project changes underline the necessity of keeping senior executives informed of the project's current status.
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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.