The Impact of Changing Project Organization Structure on Project Performance

Abstract

Instigating changes to project organization structure during the project execution could disrupt many project processes and influence project performance. The purpose of this study is to investigate a particular problem occurred in completed construction projects in UAE market. The problem appeared due to unnecessary changes and slow or inadequate response to change by senior managers in contractor’s project organization structure. These changes had negative impact on the project management roles and responsibilities, additional cost and time impact. Furthermore, there were negative consequences on the performance of the project’s team and their effort to create new ideas as well as their innovation inside the construction project that they are involved. The qualitative methodology is used in this study through investigating five case studies for construction projects that completed in UAE market along with extensive literature review that focused on the different sides of the problem as well as an interview with ten members of contractor’s project management and senior managers to examine the impact of the problem on project performance and team effectiveness. The main findings indicate that having clear and defined roles and responsibilities have positive impact on project performance and team effectiveness. Moreover, the contractor’s senior managers have a vital role in establishing, managing the project organization structure and ensuring that any changes to the structure are dealt with effectively. This would enable the project to progress according to plan, reduce project activity reworks and address any weaking communication and cohesiveness between project team members.