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Project Management Processes in Organizations




Londy Bracale

Colorado Technical University

MPM650-0804B-02: Project Management Processes in Organizations

Professor Chiji Ohayia

Phase 2 Discussion Board

November 30, 2008

Project Management Significance in Organizations

American Property Development Corporation (APDC) is not convinced that project management provides enough value to the organization. I am a member of the Project Management Institute (PMI), which has a local chapter in my hometown. This is an excellent resource and support for my profession. During one of our meetings, I informed the group about the lack of understanding and support I receive from APDC. The group took some time to discuss how different organizations view project management, how these views affect the project managers ability manage projects, how the skill set is valued, and how unique the project manager career path is. This document will discuss these questions and how it can be applied to the situation at American Property Development Corporation (CTU Online, 2008).

Many organizations have not yet realized the days of their rigid static-organization are over and when they realize that organizational change is a necessity, it is too late. Those that continue to succeed have already learned that their organization must be dynamic in nature. In other words, they must be capable of rapid restructuring if environmental conditions demand. Some of these conditions can be the global market is fluctuating rapidly, competition increasing, technology advancements, and more control of scarce resources (Kerzner, 2006). Organizational structures are an important consideration before beginning a project because they will affect the entire process.

Organizations can be project driven or non-project driven. Project driven organizations can be construction or aerospace, industries, all the work is characterized through projects, whereas non-project driven organizations can be low-tech manufacturing where projects exists to support product lines or functional lines in the business. Obviously, projects being promoted in a non-project driven organization are more difficult to There are typically three organizational structures to contend with. The traditional or functional, matrix and project driven. The traditional hierarchy organization such as APDC, may not adequate for project management. In these organizations management is typically satisfied with the organization’s technical capabilities but as APDC has experienced, their projects lack attention to detail, fall short on delivery, run over budget, and overall, fail to meet the requirements. In these traditional organizations function in silos and the projects have little influence in decision making. The project management practice needs to be sold in the organization for proper adherence. The matrix organizational structure has a dual influence in decision-making. One of the challenges is the resources are shared which make it challenging for solid commitment. However, the project manager maintains control of the project and resources once committed. The project driven organization has full control of the project and committed participants work directly for the project manager with increased morale, and flexibility. One of the down sides is a tendency to retain personnel on a project beyond their allotted time; specialists still require top-level coordination. You can see in each organizational scenario how the structure can make the project managers job more difficult or more productive (Project Management Institute, 2004).

Not all organizations view project management the same. Some believe that project management is an excellent way to achieve objectives and some organizations perceive project management as a threat. For example, one of the entities that I work with is OMWorkspace, which is a national commercial furniture dealer and design service organization. They use project managers for large interior design jobs and are critical to the success of each and every job. In other organizations, some resent the project manager because project management is a visible position that interacts with upper level management.

Successful projects provide great value to an organization and the project management practice in turn provides the organization with a strategic asset. When the best practices that are provided by the Project Management Body of Knowledge (PMBOK) are applied to projects, value is created in a tangible manner to improve the project success. Using the tools provided by the Project Management Institute and the PMBOK. The professional project manager studies the tools and techniques that are put to work on a project which is a tangible way to research and support the project management practices because these tools and techniques are directly related to what the practitioners do (Besner & Hobbs, 2006).

Project management has proven tangible and intangible value to add to any organization. Some of the intangibles are created through innovation, ability to accomplish corporate objectives, create competitive advantage, attract employees, improve human resources, and organizational structures. It has been proven through a scientific study conducted by the Project Management Institute, that project management offers significant value to any organization. One of the results shown that no matter how mature your organization is,  when you stop investing in project management and the people, the progress will deteriorate. When project management was discontinued in an organization severely suffered. Every organization is different and will require a unique fit in the context of project management for each organization. Project management is a practice, and should be tailored to fit an organization (Project Management Institute, 2004).

The project manager position was not always in high demand as it is today. Before the rise in popularity, the project managers were for many, a sideline to the day job. Project management has evolved from just a philosophy of management to an advantage to enterprise project management system in all functional units. The project management career path is such demand today that corporations regard project management as mandatory for the organization to survive. The project management career path is unique because of its discipline and broad management skill set that can be used in any industry. In project driven organizations, there are three career paths that can lead to executive management, 1) through project management, 2) project engineering, or 3) through line management (Kerzner, 2006).

Project management is gaining ground worldwide as an important position all organizations must subscribe to. Every organization needs to consider that project management is designed to work specifically to their organization and there is no one system that will work for all organizations. The Project Management Institute has been developed to promote the benefits of the profession and support the practitioners in the field. The Project Management Institute has developed the global standards in which the practitioners perform and continue to sharpen their skills and advance their profession within their respected organizations (Project Management Institute, 2004).



Besner, C., & Hobbs, B. (2006). The perceived value and potential contribution of project management practices to project success. Project management journal. 37, 38, 39.

CTU Online. (Ed.). (ca. 2008). Course Materials [Printable version]. Colorado Springs, CO: CTU Online. Retrieved November 30, 2008, from CTU Online, Virtual Campus, MPM650-0804B-02: Project Management Processes in Organizations website: https://campus.ctuonline.edu

Kerzner, H. (2006). Project management, a systems approach to planning, scheduling, and controlling - ninth edition. Hoboken, New Jersey: John Wiley & Sons, Inc..

Project Management Institute. (2004). A guide to the project management body of knowledge: PMBOK guide. Newtown Square, Pa: Project Management Institute.