Project Organisation

A. Definition

Organisation (organization) is a team or group of people who work together for a particular purpose, such as a government department, business or project. The Organisation Structure is a framework to define the roles and responsibilities, work flow, reporting system, and decision making. There is two type of an organisation: a permanent and task force organization.

The Project Organisation (organization) defines the human infrastructure, and identifies roles and responsibilities of each positions that facilitates the coordination and implementation of project activities. One of the important decisions of project management is the form of organizational structure that the team members with a minimum missing, overlaps and conflict. The success of project depends on its organizational structure, key personnel capability, and management work process in which where decision is made. The Project Organisation can be structured as a Functional Structure Organisation, Project TF (Task force) (traditional Hierarchical) Structure Organisation, and Matrix Structure Organisation. The Project Organisation can be evaluated different options based on the project environmental, company needs, assigned personnel capabilities ensuring efficiency, productivity, operational effectiveness.

B. Type of Project Organisation

Project TF (Task Force) Organisation (Hierarchical Structure, Projectized Organisation as defined by PMI) is a traditional hierarchical structure organisation, the Project Manager who is the head of all authority of the project in commercial, technical and execution. A corporate functional organisation such as Quality, HSE, Risk, Value, O&M, IT, Estimate, Finance, HR, Legal and so on can be assigned as project supportive staffs. The Project TF Organisation is normally applied for a medium and large size of project, and multi projects project.

Functional Organisation is the most commonly used of organization structure in the production industry. The Functional Organisation structure is divided into separated roles and functions by division or department, such as project management, engineering, procurement, construction, and project controls. The Functional Organisation is normally applied for a small size of project. An advantage of the Functional Organisation will be a specialization, efficiency and productivity, but disadvantage will be a lack of teamwork and difficult management control.

Matrix Organization (or Hybrid) is a company structure in which the reporting processes are set up as a dual reporting relationships, project management and functional management. Normally, the Project Management is responsible for the project profit and loss; relationship with client, and project operation and execution, and the functional management is responsible for the work qualities.

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C. Other Definitions

Hybrid Organisation is a mixture organisation of the public, private and voluntary sector. The Hybrid Organisation refers to a Matrix Organisation.

Task Force (TF) Team is a temporary group of people formed to carry out a specific mission or project, or to solve a problem that requires a multi-disciplinary approach.

Construction Team Organisation (Site Organization) consists of site administration, field controls, field engineering, field material control, construction supervision (subcontractor management), safety (site), quality (quality control and inspection), pre-commissioning team and hand-over tam. The Construction Management Organisation is a normally a Project TF Organisation and full time assignment.

Guideline and Template: to be developed