Monday 7 February 2022

You should be aware of the pros and cons of a project-based organization

This article is compiled by the r&d project management system: we all know that Huawei is a typical project-based organization, and the essence of a project-based organization is to stimulate organizational vitality, improve operational efficiency, enhance project profitability, and enhance customer satisfaction. 


But do we know the pros and cons of a project-based organization? knowing whether your company is a good fit for a project-based organization must understand the strengths and weaknesses of a project-based organization. let's analyze it as follows:

the project-based structure has the following advantages:

1. the project-based structure can ensure the effective implementation of the project without affecting the normal operation of the organization.

2. the project manager is fully responsible for the project.

the project team's mission is to achieve the project goals, and the project manager and team members can devote all their energy and time to the project without having to think about the affairs of the original department. project managers have autonomy over the project budget, and internal project decisions are not interfered with by other functions, so project goals are easier to achieve. the project team is independent of other functional departments, there is no cross-cutting and dual management problem of personnel and business, it will not affect the normal operation of other departments, it will not affect various processes and systems, and the project manager will generally not be resisted by the department manager. everyone in the organization understands the project and works towards the same goal, ensuring that the project organization has sufficient project management resources, which is conducive to the cultivation of project management professionals.

the project plan is formulated by him, and in large and complex projects, it may be equipped with deputy technical managers, deputy production managers and chief engineers, etc., who will assume certain management responsibilities. iin the implementation of the project, if it is necessary to make personnel adjustments, resource allocation, procurement decisions, quality measures decisions, etc., the project manager can quickly make decisions and deliver them to the relevant teams for implementation on the basis of analyzing various information. in reality, some enterprises ostensibly implement a project-based structure, but the authority of the project manager may not be in place, such as the financial rights are controlled by the financial department of the enterprise, and the allocation of resources is controlled by the functional departments. in complex projects, the project manager's authority is very important, because there are many uncertainties in the project, there are many problems that need to be dealt with in the implementation process, if the decision-making power is not delegated to the project manager, but everything must be instructed by the enterprise executives, the work efficiency will inevitably decline, and the construction period will inevitably be greatly affected.

3. the level of integration in cross-functional areas within the project team is very high, and the cooperation between various majors is close.

since all the people involved in the project work under the arrangement of the project manager and are not under the command of the manager of the department, the communication between different professionals is very convenient. for example, in a new product development project, when the designer designs a component, the procurement engineer and the processing personnel participate in the discussion, if the processing conditions are insufficient or the price of raw materials is too high, the designer can adjust the design plan. management software implementation project, data collection is a basic work, the collection engineer must communicate with the implementation consultant, according to the needs of business processes and statistical analysis, reasonably determine the content of the data collection template and implementation steps, to ensure that the data can be collected at one time to meet the requirements of the implementation.

4. the team has a single goal and the project is advancing fast.

for each project participant, the realization of the project goal is a common mission, although the original department and division of labor are different, but they are all contributing to the project goal, they no longer undertake tasks outside the project organization. the project manager facilitates the internal construction of the project team, improves the motivation and cohesion of employees to participate in the project, and promotes the effective implementation of the project plan. <
project-based organizations also have some disadvantages:

1. higher costs, duplication of resource allocation and loss of economies of scale.

it is costly to assemble and maintain a certain number of project teams. because project members and other resources are fixed to a project full-time, resources cannot be shared by multiple projects, and dedicated resources must be configured for each project group, so that enterprises may employ an excessive number of project professionals. for example, a metallurgical industry special blower manufacturer, for dozens of steel industry customers signed a turnkey project contract, each contract needs to send a project team, post settings and personnel requirements are similar, because the customers are distributed throughout the country, it is difficult to achieve resource sharing between project teams, enterprises to allocate personnel and material resources for these project teams. the number of employees in the enterprise expands with the increase of the number of projects, and human resources can be fully utilized in the case of more projects, which will cause waste of resources when there are not many projects.

2. difficulty in maintaining the accumulation of technology or knowledge.

project members may move to another project or lose money after completing one project, making it difficult to form a unified knowledge base. the expertise of project members is in the hands of the employees, who also take their expertise with them when they leave.

3. the technical exchange between project personnel and the parent organization is restricted.

after the personnel drawn from the line department become project members, they are no longer members of the original department, and due to the inconsistency between the department tasks and the project tasks, the original department is not obliged to carry out technical exchanges or guidance for the transferred personnel. when an individual encounters technical difficulties, he or she can only rely on his personal relationship to seek help from his former colleagues.

4. the work arrangement of the team members at the end of the project.

if no new projects require them, the employment of these people becomes a problem. if there is no solution that will affect the motivation of employees, they will privately look for employment opportunities and propose to leave when they are hired by a new employer. project team members often see projects rather than the enterprise as a service, and when the project is completed, they look for new challenges rather than working in the enterprise.

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