W4.1_Shinta_Project Management Organization

1.       Problem Definition

A project organization is a structure that facilitates the coordination and implementation of project activities. As the next incoming EPC project in company which I work now will be the most important agenda, thus the right decisions to form the organizational structure of project management will be prioritized.


2.       Development of Feasible Alternatives

Most organization structure arrangements are structured in 3 ways:

1)      Functional

2)      Project based

3)      Matrix

(strong matrix is preferable)

3.       Development of the Outcome for Alternative

The principles requirement of forming the EPC organization chart described as bellows:

1)      Optimizing the resource

2)      Power and authority

3)      Unity of command and direction

4)      Increase productivity

4.       Selection of Criteria.

1)      Functional organizational structure.

The programmatic focus refers to a traditional structure in which program sector managers have formal authority over most resources.


2)      Project-based organizational structure.

Independent project team that separated from the parent organizations, with their own technical staff and management.


3)      Matrix organizational structure.

Matrix organizational structure is a hybrid form, it loads a level of project management structure on the functional hierarchical structure.


 5.       Analysis and Comparison of the Alternative.


6.       Selection of the Preferred Alternative.

Matrix organization type has come out as the appropriate design in forming the incoming EPC project organization chart. Matrix organizations will provide focus on the specific technical competencies and allow projects to be staffed with specialists from throughout the organization. Reporting to one person in the programmatic unit is commonly applied, while working for one or two project managers from other projects in different programmatic units.

7.       Performance Monitoring and the Post Evaluation of Result.

All of these, matrix organizational structure is the most suite type considering the complexity of EPC Project. However, further evaluation on the implementation is subjected to review.


  1. Giammalvo, Paul D. (2014). AACE Certification Preparation Course – Day 1.
  2. Three types of Project Management Organizations. (2011). Retrieved from http://www.mypmhome.com/three-types-of-project-management-organizations/
  3. Organizational Structures In Project Management. (2011). Retrieved from http://www.mypmhome.com/organizational-structures-in-project-management/

6 thoughts on “W4.1_Shinta_Project Management Organization

  1. OK Bu Shinta,
    MUCH better, but you are still starting out with a conclusion before you do your analysis.

    What was your selection criteria? Doesn’t it make sense that the selection criteria should be the one that took advantage of as many of the plusses and mitigated as many of the negatives as possible?

    My suggestion would be to take this same case study. which is a very good one, but for your W5 and W6 blog, use multi attribute decision models as the basis to do your analysis?

    Also, do some research on alternatives to the matrix management model. There are BETTER ways which solve the problem of “serving two masters.”

    Dr. PDG

  2. Pingback: W2_Teddy_Organization Project Management | TOPAZ SMART

  3. Pingback: W2_Teddy_ Project Management Organizations | TOPAZ SMART

  4. Pingback: W14_OAN_Project Management Organization – EMERALD AACE 2017 – WEEKLY BLOG

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