Organisation Structure & Leadership issues in Projects Flashcards
What are problems with organising projects?
- The uniqueness and short duration of projects relative to ongoing longer-term organisational activities
- The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas
- Transient project team members
- Sometimes, multiple stakeholders (e.g. suppliers, clients/ customers, end-users etc.)
What are the three types of organisational structure?
- Pure project organisation
- Functional project organisation
- Matrix project organisation
- weak matrix
- strong matrix
- balanced matrix
What are the advantages of Pure project structure?
- Speed
- Dedicated resources
- Simple
- Integrated
What are the disadvantages of Pure project structure?
- Supplier costs
- Knowledge management
- Instability
- Expensive
What is the Functional project structure?
Different segments of the project are delegated to respective functional units.
Coordination is maintained through normal management channels
Often used when:
- the interest of one functional area dominates
- projects are subsidiary to organisation’s main activities
What are the advantages of Functional project structure?
- No structural change
- Quality through depth of specialisation
- Easier post-project transition
- Possible to ‘hide’ project costs
What are the disadvantages of Functional project structure?
- Slow as a process
- Difficult to integrate functions
- Lack of focus
- Lack of ownership
What is the Matrix project structure?
A hybrid organisational form where horizontal project management structure is overlaid on the normal functional hierarchy.
- there are two chains of command
- project participants report simultaneously to functional & project managers
How is the Matrix project structure designed?
To utilise resources optimally
- individuals work on multiple projects as well as being capable of performing normal functional duties
- attempts to achieve greater integration by creating and legitimising the authority of a project manager
- provides a dual focus between functional/ technical expertise and project requirements
What is a Weak Matrix form?
Project manager co-ordinates departmental input
Little commitment to project success
What is a Strong Matrix form?
Departments will second staff on a full-time basis
Strong commitment but draws resource away from departments
What is a Balanced Matrix form?
The project manager sets the overall plan and the functional manager determines how work to be done
Typical ‘two bosses’ problem
What are the advantages of the Matrix project structure?
- Close coordination where decisions may conflict
- Adapts to specific strategic situations
- Bureaucracy replaced by direct discussion
- Increased managerial involvement
What are the disadvantages of the Matrix project structure?
- Conflict, the matrix structure internalises conflicts between organisational needs and environmental pressures
- Stress, reporting to more than one boss/ superior creates role ambiguity
- Balance of power, perfect balance without cooperation between facing managers can create disputes
- Costly, administration and communication
What is the relationship between organisational structure & organisational culture?
A dependent relationship:
- Hierarchical structure = centralised, top-down decision-making -> culture will reflect lack of freedom and autonomy at lower levels
- Decentralised structured = shared power and authority -> more independent, personalised and accountable culture