How Organizational Structure And Culture Impacts Project Management

How Organizational Structure And Culture Impacts Project Management

There is no doubt that organizational structure and culture have a direct impact on Project Management. First, organizational culture is fundamental to the existence of the cooperation between the employees. The absence of the common values leads to the alienation of the employees or even departments. At the same time, it could be very hard for the managers to maintain a communication process due to the absence of some common cultural background. As a result, it would be impossible for a company to manage different projects due to the fact that the regular communication errors undermine the efficiency of the process.

Second, organizational culture also implies the development of the specific company’s values, which are based on the history of a company’s business performance. Thus, such values as mutual respect, the rejection of any form of discrimination, and promotion of innovations could be beneficial for the management of projects because the employees will work as the single mechanism. For example, gender discrimination could undermine the functioning of a company due to the formation of an inferiority complex for the female employees. Needless to say, that such situation is absolutely unacceptable.

Finally, the formation of the relevant organizational structure gives a unique opportunity for the senior management to manage all the operations effectively. Don Hellriegel states that the implementation of the leadership culture and the creation of the working groups under the direction of the leaders improve the working results of departments (Hellriegel 38-39). It happens because the leaders use charisma and personal example to motivate employees and retranslate the values of a company. Consequently, it is easier to manage projects, especially in the long-term period.

It is possible to conclude that organizational culture and structure determine the final success of any project. The ignorance of these two factors will lead to the failure in project management.

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Hellriegel, Don, Slocum, John. (2011). Organization Behavior. Mason, Ohio: South-Western Cengage Learning. 672.