What is the impact of Project Management on Organizations?

What is the impact of Project Management on Organizations?

Project management is the formalization of organizational liaison devices. Organizational liaison devices emerged or were developed, both formal or informal, and encouraged experimentation to integrate activities across organizational structures.

Jay R. Galbraith, one of the several researchers who have studied these liaison devices, in his research provides that in part the basis for a description of the following types:

  1. Individual liaison Individual liaison is the simplest or may be the best form of liaison brought about by people who sense the need to work together and about maintaining contact with others in the organization that have a interest in an activity under way. This is usually self-motivated.

  2. Standing committees Standing committees are extensively used to integrate organizational activities. These committees exist at all levels in the organization. At the top level, such committees are known as ‘plural executives’. They bring about synergy in the making and executing key operational and strategic decisions for the organization.

  3. Product managers Product managers are usually posted to act as a focal point for the marketing and sales promotion of a product. They usually are provided with some small administrative staff and might have profit or loss responsibility. They may not have a specific team but rather work closely in a coordinating role with other key individuals.

  4. Managerial liaison When more formal linkage is required, a manager or supervisor may be appointed, who will be in charge of several people through out setting direction for the organizational unit and giving supervisory jurisdiction over the people. Modern organizations usually use this form very widely.

  5. Task forces Members are appointed to the task force to work on a problem or opportunity. In task force, members always have a reporting relationship with their regular organizational unit and with the task force chairperson as well. Once the purpose for which the task force was created is accomplished, it will be dissolved.

  6. Project engineer Project engineer is the one who is responsible for directing and integrating the technical aspects of the design or development process. These positions are involved in almost all contemporary organizations to the point that the project engineer manages a project throughout all its engineering steps, that is, from the initial design to manufacture or construction.

  7. Liaison position When a significant amount of contract is needed to co-ordinate activities of two or more organizational entities, a liaison position is formally established to bring about synergy and communication between these units. Actually this does not have any direct formal authority over the organizational units but is expected to communicate, co-ordinate, pull together and informally integrate work within the organizational units. For example: an engineering liaison person, a production co-coordinator or aide-de-camp in a military organization.

References

  1. Introduction about Project Management

  2. Definition of a capital expenditure

  3. Importance and difficulties of Capital expenditure

  4. What is the need of Project Management ?

  5. How was the evolution of Project Management?

  6. What is the scope of Project Management

  7. What is the impact of Project Management on Organizations ?

  8. What are the characteristics of Project Management?

  9. What are Project Management Activities?

  10. What are Project Management processes?

  11. What are the different phases of life cycle of a project?

  12. How does project management becomes a part of strategic planning?

  13. What are the different phases of capital budgeting?

  14. What are the facts of project analysis

  15. What are the basic strategic postures associated with the SPACE approach?

  16. What is conglomerate diversification?

  17. What are the objectives of capital budgeting?

  18. Maximization of the wealth of equity shareholders

  19. Do firms really act or should solely act to further shareholders welfare?

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