Ch. 3

Advantages of Functional Organizations

No Change. Projects are completed within the basic functional structure of the parent organization. There is no radical alteration in the design and operation of the parent organization. Flexibility. There is maximum flexibility in the use of staff. Appropriate specialists in different functional units can temporarily be assigned to work on the project and then return to their normal work. With a broad base of technical personnel available within each functional department, people can be switched among different projects with relative ease. In-Depth Expertise. If the scope of the project is narrow and the proper functional unit is assigned primary responsibility, then in-depth expertise can be brought to bear on the most crucial aspects of the project. Easy Post-Project Transition. Normal career paths within a functional division are maintained. While specialists can make significant contributions to projects, their functional field is their professional home and the focus of their professional growth and advancement.

Governance Framework includes

Rules Policies Procedures Norms Relationships Systems Processes

matrix management

is a hybrid organizational form in which a horizontal project management structure is "overlaid" on the normal functional hierarchy. In a matrix system, there are usually two chains of command, one along functional lines and the other along project lines. Instead of delegating segments of a project to different units or creating an autonomous team, project participants report simultaneously to both functional and project managers

A project management system

provides a framework for launching and implementing project activities within a parent organization. A good system appropriately balances the needs of both the parent organization and the project by defining the interface between the project and parent organization in terms of authority, allocation of resources, and eventual integration of project outcomes into mainstream operations.

Project Considerations

- Size of project - Strategic importance - Novelty and need for innovation - Need for integration (number of departments involved) - Environmental complexity (number of external interfaces) - Budget and time constraints - Stability of resource requirements

Projectized Organization

A multi-project organization in which project managers have full authority to assign priorities and direct the work of persons assigned to their project.

Dedicated project team

An organizational structure in which all of the resources needed to accomplish a project are assigned full time to the project.

matrix structure

Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project.

Disadvantages of Dedicated Project Team

Expensive. Not only have you created a new management position (project manager), but resources are also assigned on a full-time basis. This can result in duplication of efforts across projects and a loss of economies of scale. Internal Strife. Sometimes dedicated project teams become an entity in their own right and conflict emerges between the team and the remainder of the organization (see Snapshot from Practice 3.2: The Birth of the Mac). This divisiveness can undermine not only the integration of the eventual outcomes of the project into mainstream operations but also the assimilation of project team members back into their functional units once the project is completed. Limited Technological Expertise. Creating self-contained teams inhibits maximum technological expertise being brought to bear on problems. Technical expertise is limited somewhat to the talents and experience of the specialists assigned to the project. While nothing prevents specialists from consulting with others in the functional division, the we-they syndrome and the fact that such help is not formally sanctioned by the organization discourage this from happening. Difficult Post-Project Transition. Assigning full-time personnel to a project creates the dilemma of what to do with personnel after the project is completed. If other project work is not available, then the transition back to their original functional departments may be difficult because of their prolonged absence and the need to catch up with recent developments in their functional area.

Advantages of Dedicated Project Team

In many cases, the project team approach is the optimum approach for completing a project when you view it solely from the standpoint of what is best for completing the project: Simple. Other than taking away resources in the form of specialists assigned to the project, the functional organization remains intact with the project team operating independently. Fast. Projects tend to get done more quickly when participants devote their full attention to the project and are not distracted by other obligations and duties. Furthermore, response time tends to be quicker under this arrangement because most decisions are made within the team and are not deferred up the hierarchy. Cohesive. A high level of motivation and cohesiveness often emerges within the project team. Participants share a common goal and personal responsibility toward the project and the team. Cross-Functional Integration. Specialists from different areas work closely together and, with proper guidance, become committed to optimizing the project, not their respective areas of expertise.

Disadvantages of functional organization

These disadvantages are particularly pronounced when the scope of the project is broad and one functional department does not take the dominant technological and managerial lead on the project: Lack of Focus. Each functional unit has its own core routine work to do; sometimes project responsibilities get pushed aside to meet primary obligations. This difficulty is compounded when the project has different priorities for different units. For example, the marketing department may consider the project urgent while the operations people consider it only of secondary importance. Imagine the tension if the marketing people have to wait for the operations people to complete their segment of the project before they proceed. Poor Integration. There may be poor integration across functional units. Functional specialists tend to be concerned only with their segment of the project and not with what is best for the total project. Slow. It generally takes longer to complete projects through this functional arrangement. This is in part attributable to slow response time—project information and decisions have to be circulated through normal management channels. Furthermore, the lack of horizontal, direct communication among functional groups contributes to rework as specialists realize the implications of others' actions after the fact. Lack of Ownership. The motivation of people assigned to the project can be weak. The project may be seen as an additional burden that is not directly linked to their professional development or advancement. Furthermore, because they are working on only a segment of the project, professionals do not identify with the project.

Strong Matrix

This form attempts to create the "feel" of a project team within a matrix environment. 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. The functional manager has title over her people and is consulted on a need basis. In some situations a functional manager's department may serve as a "subcontractor" for the project, in which case they have more control over specialized work. For example, the development of a new series of laptop computers may require a team of experts from different disciplines working on the basic design and performance requirements within a project matrix arrangement. Once the specifications have been determined, final design and production of certain components (i.e., power source) may be assigned to respective functional groups to complete.

Weak Matrix

This form is very similar to a functional approach with the exception that there is a formally designated project manager responsible for coordinating project activities. Functional managers are responsible for managing their segment of the project. The project manager basically acts as a staff assistant who draws the schedules and checklists, collects information on status of work, and facilitates project completion. The project manager has indirect authority to expedite and monitor the project. Functional managers call most of the shots and decide who does what and when the work is completed.

Balanced Matrix

This is the classic matrix in which the project manager is responsible for defining what needs to be accomplished while the functional managers are concerned with how it will be accomplished. More specifically, the project manager establishes the overall plan for completing the project, integrates the contribution of the different disciplines, sets schedules, and monitors progress. 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. The merger of "what and how" requires both parties to work closely together and jointly approve technical and operational decisions.

3 types of matrices

Weak, Balanced, and Strong