Organizational context

The organizational context in project management constitute of the structural link between projects and the organization involved in the project . As projects, programs, and portfolios are naturally performed by a group of individuals, the relationships among the project team members as well as between the team and the work are formed. The congregation of these relationships contributes to the environment of the projects and the project success, creating a specific context for each project. This is where the concept of Organizational Theory and Design is developed to address the organizational context which inherently formed when individuals work together, and ultimately change individuals' behavior and build a desired work environment which suits the characteristics of specific projects.

Main Idea

As the business environment becomes more fluid and complex, many kinds of challenges arise for an organization to compete and survive in the market. Organizations overcome these challenges by continuously optimizing their resources, improving their operations, and more. These activities are carried out in different style from short-small specialized projects to large-extensive development programs. Generally, all kinds of work requires efforts of a project team and other resources to generate output. Thus, in project management perspective, the project cannot be finished by itself but it requires the project team to perform the work collaboratively to produce the desired project deliverables. The effectiveness of the project team in doing a project can then dictate the quality of the project outcomes. This indicates that the project team members and the project manager are the key to a project success and it is important to consider this aspect when doing any projects.

Organization

An organization is a tool people use to coordinate their actions to obtain something they desire or value - that is, to achieve their goals . In practical sense, an organization comprises of people who put individual contribution to create a value proposition, in form of a product or service, which satisfy the demand of the society. Thus, an organization in itself is merely a conceptual body of the systematic way of how human interacts with each other to achieve something in common. This highlights the importance of how one person in an organization is related to the other and how the collaborations are managed in order to create the desired output. These interrelations and the working procedures can be engineered to promote effectiveness in the organization's value creation process through the concept of organizational theory and design.

Organizational Theory

Organizational theory is the study of how organizations function and how they affect and are affected by the environment in which they operate . Essentially, an organization groups resources in the environment to create values for the society. This value could be in the form of products or services. The process of value creation has three stages: input, conversion, and output