Unit 3 Project Organization.pptx related to MBA flied
- 1. 3–1 Project Management Structures • Challenges to Organizing Projects –The uniqueness and short duration of projects relative to ongoing longer-term organizational activities –The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas. • Choosing an Appropriate Project Management Structure –The best system balances the needs of the project with the needs of the organization.
- 2. 3–2 Project Management Structures • Organizing Projects: Functional organization –Different segments of the project are delegated to respective functional units. –Coordination is maintained through normal management channels. –Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.
- 4. 3–4 Functional Organization of Projects • Advantages 1. No Structural Change 2. Flexibility 3. In-Depth Expertise 4. Easy Post-Project Transition • Disadvantages 1. Lack of Focus 2. Poor Integration 3. Slow 4. Lack of Ownership
- 5. 3–5 Project Management Structures (cont’d) • Organizing Projects: Dedicated Teams –Teams operate as separate units under the leadership of a full-time project manager. –In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
- 8. 3–8 Project Organization: Dedicated Team • Advantages 1. Simple 2. Fast 3. Cohesive 4. Cross-Functional Integration • Disadvantages 1. Expensive 2. Internal Strife 3. Limited Technological Expertise 4. Difficult Post-Project Transition
- 9. 3–9 Project Management Structures (cont’d) • Organizing Projects: Matrix Structure –Hybrid organizational structure (matrix) is overlaid on the normal functional structure. • Two chains of command (functional and project) • Project participants report simultaneously to both functional and project managers. –Matrix structure optimizes the use of resources. • Allows for participation on multiple projects while performing normal functional duties. • Achieves a greater integration of expertise and project requirements.
- 11. 3–11 Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure TABLE 3.1 Project Manager Negotiated Issues Functional Manager What has to be done? Who will do the task? How will it be done? When should the task be done? Where will the task be done? How much money is available Why will the task be done? How will the project involvement to do the task? impact normal functional activities? How well has the total project Is the task satisfactorily How well has the functional been done? completed? input been integrated?
- 12. 3–12 Different Matrix Forms • Weak Form –The authority of the functional manager predominates and the project manager has indirect authority.In a weak matrix structure, a project manager works like a project coordinator or project expeditor. A project coordinator has some say in the allocation of resources, while a project expeditor serves only as a point of communication between the customer and team. Overall, in a weak matrix, the functional manager reigns supreme. • Balanced Form –The project manager sets the overall plan and the functional manager determines how work to be done. In a balanced matrix, both have equal power. Resources working on a project can face communication difficulties due to the lack of clarity on whom to report. • Strong Form –The project manager has broader control and functional departments act as subcontractors to the project.In a strong matrix structure, the project manager enjoys more power than the functional manager. For example, the project manager has a say in the allocation of resources.
- 13. 3–13 Project Organization: Matrix Form • Advantages 1. Efficient 2. Strong Project Focus 3. Easier Post-Project Transition 4. Flexible • Disadvantages 1. Dysfunctional Conflict 2. Infighting 3. Stressful 4. Slow
- 14. 3–14 Project Management Structures (cont’d) • Organizing Projects: Network Organizations –An alliance of several organizations for the purpose of creating products or services. • A “hub” or “core” firm with strong core competencies outsources key activities to a collaborative cluster of satellite organizations.
- 15. 3–15 Project Organization: Network Form • Advantages –Cost Reduction –High Level of Expertise –Flexible • Disadvantages –Coordination of Breakdowns –Loss of Control –Conflict
- 16. Composite Organization • A composite organization blends the functional, matrix, and projectized types of organizations. A composite is just two or more models that are adapted for a special project, for simplicity, or to keep power in check. Most modern businesses are of the composite type. Two examples to help describe composite organizations are below: • An organization may deliver one project in a Balanced Matrix way, while another is being performed in a Functional way. They also have yet another project that’s being done as Projectized. • A Functional organization needs a small building, and the organization has the capability to construct the building itself. This would become a Composite organization because the organization creates a separate project team to complete this task. 3–16
- 17. Other Forms • Organic Organic project organization focuses on a project's natural progression. This type of organization is flexible with a more relaxed workflow approach. This approach is also known as "laissez-faire," meaning the company allows each employee to have a unique approach to work and the ability to make their own decisions. They work side by side to communicate quickly to resolve unexpected issues. • Multidivision When a team uses a multidivision project organization, they do not have functional roles. Instead, several individual groups share the same goal and skills. These groups might work on distinct tasks but progress toward the overall team objective. • Virtual Virtual project organization involves team members from across the country or around the world who work on the same project together. This team does not focus on functional roles but rather on overall contribution to project objectives. The project manager organizes the team and goals to keep everyone informed and progressing effectively. • Democratic Democratic project organization is when a company makes decisions based on the majority's opinion and feedback. A team uses the democratic approach to enforce structures, rules and expectations that most employees agree on. As a result, implementing regulations and outlining goals is easier because of the general consensus among team members. 3–17
- 18. 3–18 Choosing the Appropriate Project Management Structure • Organization (Form) Considerations –How important is the project to the firm’s success? –What percentage of core work involves projects? –What level of resources (human and physical) are available?
- 19. 3–19 Choosing the Appropriate Project Management Structure (cont’d) • 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