Page 364 - Global Project Management Handbook

MANAGEMENT OF THE PROJECT-ORIENTED COMPANY 18-5

FIGURE 18.1 Requirement for an organizational fit in the project-oriented company.

option for designing the organizational structure. Companies have the choice of
designing their organizations with or without projects and programs. By applying
“management by projects” as a strategy, it is possible to realize the following organi-
zational objectives:
● Creating organizational flexibility by using temporary organizations in addition to the
permanent organization
● Delegating management responsibility to projects and programs
● Ensuring goal-oriented work by defining project and program objectives
● Ensuring organizational learning through the monitoring potential of projects and programs
Personnel management goals also can be realized through management by projects. In
projects, it is possible to operationalize and integrate the often isolated or competing lead-
ership models of management by objectives, management by delegation, management by
motivation, etc. Management by projects uses as leadership strategy the motivational and

personnel development functions of projects. Working in projects is attractive for many
employees because projects
● Usually contain new business processes
● Are socially challenging and integrative because of teamwork
● Provide freedom of movement and promote creativity
● Are limited in time and therefore require feedback and new options after the end of the
project
Individual learning in projects is promoted through the complexity of the problem sit-
uations. The marketing relevance of management by projects results from
● The effects of projects on relevant environments
● The application of project management as a sales instrument
● The possible marketing of project management as a service for internal and/or external
organization markets