A social organization, such as a hospital, may build a new wing, introduce a new service, or design new work processes to reduce costs. Economic organizations might initiate a project to produce a new product, to introduce or revamp work processes to significantly reduce product costs, or to merge with other organizations to reduce competition or lower costs and generate additional profits. Often, these initiatives to increase organizational effectiveness or efficiency are identified as projects. More recently, organizations are increasingly focused on step changes that take advantage of new technologies to create a significant improvement in the effectiveness or efficiency of the organization.
Historically, these methodologies focused on creating incremental and continuous improvement in work processes. Total quality management, lean manufacturing, and several other management philosophies and methodologies have focused on providing the tools and processes for increasing the effectiveness and efficiency of the organization. An organization seeks to develop stable and predictable work processes and then improve those work processes over time through increased quality, reduced costs, and shorter delivery times. Organizations operate to effectively and efficiently produce the product or service that achieves the organization’s purpose and goals as defined by the key stakeholders-those who have a share or interest in the organization. For example, a religious group might begin construction of a cathedral that would take several lifetimes to complete, government performance is reviewed at election time, and a publicly owned company must justify its use of money each year in the annual report. These organizations have different views of time and each organization develops an operational approach to accomplishing the purpose of the organization over that time horizon. Factories create wealth and jobs, churches provide spiritual and common social needs for communities, and government organizations provide regulations and services that allow for an orderly society. economic, religious, community support, government, etc.) Local factories, churches, and hospitals are all organizations that provide some social or community need. Organizations fulfill societal functions (e.g. 1 Projects are undertaken by various organizations to better fulfill their purposes. PMI defines a project by its two key characteristics: it is temporary and undertaken to create a product, service, or result that is unique.
Describe the organizational options for managing projects.īefore elaborating further on project management, let’s first identify what a project is and how projects come about.Understand project levels and organization priorities.Describe two defining characteristics of a project.
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