Organizing Large Projects: How Managers Decide

Now tools will help managers design organization structures for large engineering and construction projects. An improved understanding of how managers decide in structuring project organizations is necessary to develop these tools and to assist managers in the systematic design of organizations tailored to meet project goals under unique situations. This paper reports a portion of results from research conducted to determine current practices in project organization design. The conclusion that adaptation dominates this process leads to several implications for industry professionals and researchers wishing to improve project performance. Recognizing the role of adaptation in current practices of organizational structuring will allow managers to avoid inertia and systematically design organizations. Researchers can assist by expanding variables in organization theory to better capture project situation and structure and by developing new tools to assist in systematic organization design.