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A study on project team organization for a company with flat functional department framework - A case of Formosa Heavy Industrial Cogeneration Department

Abstract
Functional organization is nowadays the most common form of business organization structure, the company's department was established in accordance with business function and forms a pyramidal structure of organization, and this is the so-called traditional organizational structures. This organizational structure has the greatest advantage of the easy control and more accurate on the budget and cost calculations. In such functional organization structure, its main disadvantage is too slow in responding to condition changes and this reaction need interdepartmental coordination. If the environment changes faster or technology is a non-routine and interdependent, then the phenomenon of longitudinal decision-making information overloading and senior decision making slowly will take place. In such an organization, everyone used to wait for a high-level decision and lack of horizontal linkages and solve problem autonomously.
Formosa Plastics Goup is a flat functional organization. Formosa heavy industrial is a subsidiary of Formosa Plastics Group, established in 1991. The main business of Formosa Heavy Industries Corporation in recent years has been changed from undertake co-generator power plant for group in-house company to undertake overseas cogeneration power plant turnkey projects. In order to make the project execution more efficient on integration, management and accomplish project per contract specified schedule, specification, quality, performance and under budgets, Formosa heavy industrial tried to execute project by means of project organization. But the power and responsibility of functional unit are often more obvious than project team, result in the project team was unable to implement the project of the desired performance.
This research expects to know how large engineering companies organize their project teams and how good their performances are by investigating the characteristics and advantages of the project organization. Besides, expert interviews are conducted in two major engineering companies, GIBSIN Engineers, Ltd. and CTCI CORPORATION. And through the in-depth case study on corporate environment, corporate culture, enterprise system and the department characteristic, it is recommended that Formosa Heavy Industries Corporation Co-generation Department had better to take Matrix project organization. Formosa Enterprise system is given responsibility and authority according to its functional organization of vertical schema, inevitably, the project manager could not given formal authority that is departed from the established system of the company. The actual practice is to incorporate project manager into the decision making procedure of each functional division regarding of the project. One of the reasons is that the project manager can fully grasp the progress rates of various functional departments.Secondly, the project managers can follow the project implementation point of view to involve in the decision-making on the implementation of operations appropriately and Immediatly. Finally, this research recommends that the implementation would be required to the environment, organizational culture, interpersonal relationships, and information flow so can enhance the effectiveness of project execution.
Key words: project management, project teams, functional organization, project organization.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0712110-110656
Date12 July 2010
CreatorsHuang, Hsien-hui
ContributorsHsien-Tang Tsai, Iuan-Yuan Lui, Leo Huang, Tsuang Kuo
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0712110-110656
Rightsnot_available, Copyright information available at source archive

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