Chapter 3: Organization and Structure
Advantages of Function Organization
No change Flexibility In-depth expertise Easy post-project transition
How important is the project management to the success of the firm?
Organization Considerations
What level of resources are available?
Organization Considerations
What percentage of core work involves projects?
Organization Considerations
Is a system of shared norms, beliefs, values, and assumptions that blinds people together, thereby creating shared meanings
Organizational Culture
Reflects the "personality" of the organization.
Organizational Culture
• Performs several important functions in organizations. • Provides a sense of identity for its members • Helps legitimize the management system • Clarifies and reinforces standards of behavior Helps create social order
Organizational Culture
Budget and time constraints
Project Considerations
Environmental complexity (number of external interfaces)
Project Considerations
Need for integration (number of departments involved)
Project Considerations
Novelty and need for innovation
Project Considerations
Size of Project
Project Considerations
Stability of resource requirements
Project Considerations
Strategic importance
Project Considerations
Is a centralized unit within an organization or a department that oversees and supports the execution of projects.
Project Management Office (PMO)
Plays a critical role in helping matrix systems mature into more effective project delivery platforms
Project Management Office (PMO)
referred to as a negative dimension to dedicated project teams
Projectitis
• provides the organization with a cadre of trained project managers and professionals.
Resource pool
Strengths of Dedicated Project Team
Simple Fast Cohesive Cross-functional integration
The functional managers have title over their people and are consulted on a need basis. The functional managers serve as subcontractors for the project.
Strong Matrix
The project manager controls most aspects of the project, including scope trade-offs and assignment of functional personnel. The project manager controls when and what specialists do and has final say on major project decisions.
Strong Matrix
a metaphor describing the relationship between organizational culture and project management.
A Riverboat Trip
The functional managers are concerned with how it will be accomplished. The functional managers are responsible for assigning personnel and executing their segment of the project according to the standards and schedules set by the project manager.
Balance Matrix
The project manager is responsible for defining what needs to be accomplished. The project manager establishes the overall plan for completing the project, integrates the contribution of the different disciplines, set schedules, and monitors progress.
Balance Matrix
has direct authority over the project
Command and control center
improves project execution
Control tower
__________ is the river, and the ________ is the boat.
Culture, project
A full-time project manager is designated to pull together a core group of specialists who work full time on the project.
Dedicated Teams
In a projectized organization where projects are the dominant form of business, the entire organization is designed to support project teams.
Dedicated Teams
The project manager recruits necessary personnel from both within and outside the parent company.
Dedicated Teams
operate as units separate from the rest of the parent organization
Dedicated Teams
Disadvantages of Matrix Management
Dysfunctional conflict Infighting Stressful Slow
Advantages of Matrix Management
Efficient Strong project focus Easier post-project transition Flexible
Weaknesses of Dedicated Project Team
Expensive Internal strife Limited technological expertise Difficult post-project transition
A hybrid organizational form in which horizontal project management structure is overlaid on the normal functional hierarchy
Matrix management
Coordination is maintained through normal management channels.
Functional Organization
It is commonly used when one functional area plays a dominant role in completing the project or has a dominant interest in the success of the project.
Functional Organization
Top management decides to implement the project, and different segments of the project are distributed to appropriate areas.
Functional Organization
Three different project management structures
Functional organization Dedicated project teams Matrix structure • Weak matrix • Balanced matrix • Strong matrix
Disadvantages of Function Organization
Lack of focus Poor integration Slow Lack of ownership
Project participants report simultaneously to both functional and project managers.
Matrix Management
Usually two chains of command, one along functional lines and the other along project lines.
Matrix Management
designed to utilize resources optimally
Matrix Structure
• Individuals work on multiple projects as well as being capable of performing normal functional duties. • It attempts to achieve greater integration by creating and legitimizing the authority of a project manager. • It provides dual focus between functional/technical expertise and project requirements.
Matrix Structure
Functional managers are responsible for managing their segment of the project.
Weak Matrix
The project manager acts as a staff assistant who draws the schedules and checklists, collects information on the status of the work, and facilitates project completion.
Weak Matrix
This form is very similar to a functional approach with the exception that there is a formally designed project manager responsible for coordinating project activities.
Weak Matrix
tracks and monitors project performance
Weather station
