Chapter 2 Flashcards
Strategic management
formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives
What does strategic management consist of?
- Developing vision and mission statements
- Formulating, implementing, and evaluating
- Making cross-functional decisions
- Achieving objectives
Project stakeholders
individuals or groups who have an active stake in the project and can potentially impact its development (positively or negatively)
Project stakeholder analysis
- tool for demonstrating conflicts that occur through the creation and introduction of new projects
- consists of identifying project stakeholders, their impact and managing it for positive results
- project management should find ways to balance conflicts demands from different stakeholders
Internal stakeholders
- Top management
- Accountant
- Other functional managers
- Project team members
External stakeholders
- Clients
- Competitors
- Suppliers
- Intervener groups (environmental, social activist…)
Managing stakeholders
- Assess the environment (find stakeholders)
- Identify goals of principal stakeholders
- Assess team capabilities in dealing with stakeholders
- Define the problem
- Develop solutions (create an action plan)
- Test and refine solutions
Organizational structure: 3 elements
- Formal reporting relationships (hierarchy levels, control)
- Groupings within organizations (group into departments)
- Design of systems to ensure coordination and communication
Project organizational structures
- overall structure of the organization that is developing the project (client, project team, top management…)
- internal structure of the project team (relationship between members of the project team)
Forms of Organization structure
- Functional organizations
- Project organizations
- Matrix organizations
Functional organizations structure
- group people performing similar activities into departments
- division of labor is based on the type of work performed
- members routinely work on projects or support product lines simultaneously
Project organizations structure
- group people into project teams on temporary assignments
- project manager has sole control over the resources the project uses
- role of functional departments’ managers is to ensure that there are sufficient resources available as projects need them
Matrix organizations structure
- create a dual hierarchy in which functions and projects have equal importance
- project manager has to work with functional heads to determine the number of people required to perform project tasks
- project team personnel remain under the authority of both project manager and functional department supervisor
Strengths and weaknesses of functional structures
Strengths:
- allows for standard career paths
- enables development of in-depth knowledge
- no change to firm’s design
Weaknesses:
- lack of customer focus
- longer time
- varying interest or commitment
- difficult to achieve cross-functional cooperation
Strengths and weaknesses of project structures
Strengths:
- Project manager sole authority
- Improved communication and rapid response to market opportunities
- Effective decision making
Weaknesses:
- expensive to set up and maintain teams
- inefficient use of resources
- members concerned about future when project ends
- difficult to maintain a pooled supply of capital
