During the past ten years, large companies have restructured into strategic business units (SBUs). An SBU is a grouping of functional units that have the responsibility for profit (or loss) of part of the organization’s core businesses
Project Management
Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.
STRUCTURING THE SMALL COMPANY
Small and medium companies generally prefer to have the project manager report fairly high up in the chain of command, even though the project manager may be working on a relatively low-priority project.
SELECTING THE ORGANIZATIONAL FORM
Project management has matured as an outgrowth of the need to develop and produce complex and/or large projects in the shortest possible time, within anticipated cost, with required reliability and performance, and (when applicable) to realize a profit.
MATRIX LAYERING
Matrix layering can be defined as the creation of one matrix within a second matrix. For example, a company can have a total company matrix, and each division or department (i.e., project engineering) can have its own internalized matrix. In the situation of a matrix within a matrix, all matrices are formal operations.
CENTER FOR PROJECT MANAGEMENT EXPERTISE
In project-driven companies, the creation of a project management division is readily accepted as a necessity to conduct business.
MODIFICATION OF MATRIX STRUCTURES
The matrix can take many forms, but there are basically three common varieties. Each type represents a different degree of authority attributed to the program manager and indirectly identifies the relative size of the matrix structures company.
MATRIX ORGANIZATIONAL FORM
The matrix organizational form is an attempt to combine the advantages of the pure functional structure and the product organizational structure.
PURE PRODUCT (PROJECTIZED) ORGANIZATION
The pure product organization, develops as a division within a division. As long as there exists a continuous flow of projects
LINE–STAFF ORGANIZATION (PROJECT COORDINATOR)
It soon became obvious that control of a project must be given to personnel whose first loyalty is directed toward …
DEVELOPING WORK INTEGRATION POSITIONS
As companies grew in size, more emphasis was placed on multiple ongoing programs with high-technology requirements