Lecture 6

Question 1

what are the properites of a functional organisation

Answer 1

= split int management silos (functional groups)
- silo criteria - buisness function, product group, customer type, georgraphical region
projects are initiated by unit heads and run by an ad hoc team

Question 2

what are the advantages of a functional organisation

Answer 2

1. specialisation inside units allows to develop and grow expertise
2. clear career paths for employees within each uni

Question 3

what are the disadv of functional organisation

Answer 3

customer needs no met by individual functions
rivalries between units make cross unit tasks inefficient
project man has no formal authority over team

Question 4

where are functional organisations most common?

Answer 4

in manufacturing industries

Question 5

what are the properties of pure project organisation

Answer 5

• each project is completely autonomous (with all support functions)
  project team consists of permenant employees and contractors

Question 6

what are the advantages of pure project organisation

Answer 6

• fast and tailored delivery
• adequate mix of expertise
• flexible labour force
• project manager has full authority and full accountability

Question 7

what are the disadvantages

Answer 7

1. diff to learn from past projects (project teams change)
2. limited to commitment to long term success
3. high costs due to organization redundancies and contractor salaries
4. career instability for project team members

Question 8

what is an example of a pure project organization

Answer 8

construction/consulting companies/movies/political campaigns

Question 9

what makes a weak matrix

Answer 9

PM is coordinator among departments - only gets capacity from departments, not team members

Question 10

what is a strong matrix

Answer 10

PM has authority over personnel - gets headcount - team that works full/part time on project

Question 11

what are the advantage of matrix organisation

Answer 11

• combine adv from FO (Specilisation) and PPO (speed flexibitity)

Question 12

what are the disadvantages of a matrix organisation

Answer 12

Weak matrix - functional units can easily lead projects off course (since pm only gets capacity)
strong matrix - high coordination expenses - two bosses problems, teams report to functional and project managers
- conflicting priorities between PM and functional work

Question 13

give an application scenario of a weak matrix

Answer 13

initiatives on top of day to day buisness

Question 14

give an application scenario of a strong matrix

Answer 14

consulting/construction projects, new product development

Question 15

what to PPO and FO prioritise in their organisation formats respecitively

Answer 15

PPO - importance of flexibility and customer focus

FO - importance of technological learning.

Question 16

what are the risks in breaking down individual silos?

Answer 16

accountability - no more P/Ls
scalability - 13 major product servies
commonaliteis between product lines
can the organisation structure change the company culture