Chapter 3-4 Flashcards
Projectized Organization
In a firm, where projects are the main form of business, the main responsibility of traditional departments is to assist and support dedicated project teams (this is when 75% of work involves projects in an organization)
Project Management Structures
- Functional Organization
- Dedicated Project Teams
- Matrix Structures
Functional Organization (Project Management Structures)
- Manage projects within the existing company’s hierarchy
- Different segments of the project are delegated to the respective departments to complete
- Coordination and communication between departments would occur through normal channels
Dedicated Project Teams (Project Management Structures)
- Separate teams operate apart from the rest of the organization
- Usually, the organization still has financial control, some grant the project manager freedom to get the project done as they see fit
- Used when a company has few projects
Matrix Structures (Project Management Structures)
- Weak matrix
Similar to functional organization but has a project manager assigned with coordinating project activities. The project manager acts as a staff assistant to make schedules, collect the progress, and has indirect authority to expedite the project - Balanced matrix
The project manager is responsible for defining what needs to be done and the functional manager is responsible for figuring out how to accomplish those tasks, both must work together to approve technical and operational decisions. - Strong matrix
Creates the feel of a project team, functional managers have title over their people and is consulted when needed. The project manager has final say and controls when and what specialists (project participants) do.
Advantages/Disadvantages of Functional Organization Structure
Advantages:
- No change to organizational structure and operation
- Flexibility in the use of staff
- In-depth expertise available for all components
- Easy post-project transition
Disadvantages:
- Lack of focus, each department will still have their normal workload to attend to and therefore may get pushed aside to attend to more daily tasks
- Potentially poor integration across departments, each department is only concerned for their segment and thus the project as a whole might suffer
- Slow to complete, project information and decisions follow usual channels, not direct communication between segments to adjust where and when needed
- Lack of ownership, the project may be seen as an additional burden
Advantages/Disadvantages of Dedicated Project Teams Structure
Advantages:
- Simplifies operations, the rest of the organization stays intact
- Fast, able to quicken the pace of a project’s completion
- Cohesive, participants share a common goal and responsibility to the project and team
- Cross-functional integration- specialists of different areas collaborate and become committed to optimizing the project
Disadvantages:
- Expensive, creates a new management position and resources are assigned on a full time basis
- Internal strife, sometimes conflict emerges between the team and the rest of the organization
- Limited technological expertise, since the team is separate more technological expertise can’t be brought on to solve problems
- Difficult post-project transition
Advantages/Disadvantages of Matrix Structures
Advantages:
- Efficient, resources can be shared across multiple projects and functional divisions
- Strong project focus by having a formally defined project manager coordinating contributions across departments
- Easier post-project transition
- Flexible utilization of resources and expertise
Disadvantages:
- Dysfunctional conflict, tension possible between project and functional managers
- Infighting, since equipment, people, and resources are being shared there may be fighting over scarce resources
- Stressful for participants, no unity of command
- Slow, agreements have to be forged across multiple groups
Project Considerations
- Size of the project
- Strategic importance
- Novelty and need for innovation
- Need for integration (number departments involved)
- Environmental complexity (number of external interfaces)
- Budget and time constraints
- Stability of resource requirements
Project Offices (POs)
- Weather station
- Control tower
- Resource pool
Weather station (POs)
Allows management to track and monitor project performance, staff provides independent forecasts of project performance
Control tower (POs)
Used to improve project execution, the staff at the PO identify best practices and standards for project management excellence
Resource pool (POs)
The goal of the resource pool PO is to provide the organization with trained project managers and professionals, operating as an academy for continually upgrading the skills of a firm’s project professionals.
Characteristics of Organizational Culture
- member identity (The degree to which members identify with the organization as a whole rather than their job or professional expertise)
- team emphasis (The degree to which work activities are organized around groups versus individuals)
- management focus (The degree to which management decisions take into account the effect of outcomes on people within the organization)
- unit integration (The degree to which units within the organization are encouraged to operate in a coordinated or interdependent manner)
- control (The degree to which rules, policies, and direct supervision are used to oversee and control employee behaviour)
- risk tolerance (The degree to which employees are encouraged to be aggressive, innovative, and risk-seeking)
- reward criteria (The degree to which rewards such as job promotions and salary increases are allocated to employee performance rather than seniority, favouritism, or other non-performance factors)
- conflict tolerance (The degree to which employees are encouraged to air conflicts and criticisms openly)
- means versus end orientation (The degree to which management focuses on outcomes rather than on techniques and processes used to achieve those results)
- open-systems focus (The degree to which the organization monitors and responds to changes in the external environment)
Project Scope
a definition of the end result or mission of the project
