Organisational structure Flashcards
Define ‘Organisation’
The management structure applicable to the project/programme/portfolio and the organisational environment in which it operates
Name the six layers of organisational structure
- External
- Sponsorship
- Management
- Delivery
- P3 assurance
- Administrative support
Define the six layers of organisational structure
- External - the host or client organisation; sets requirements
- Sponsorship - the link between the External and Management layers; accountable for the overall success/benefits of the project
- Management - day to day management of the project
- Delivery - those who create outputs
- P3 assurance - provide confidence that the management & delivery of work are conducted effectively and appropriately
- Administrative support - provides services to Management and Delivery layers of an administrative/technical nature
Name the three types of organisational structure
- Functional - line manager authority
- Matrix - balance
- Project - PM authority
List advantages of a Matrix organisational structure
- Formal, two-dimensional solution to a two-dimensional problem
- Improved management of projects where task forces aren’t appropriate
- Preserves the benefits of a functional structure
- Economical use of expensive resources
Clear roles and responsibilities are key to making a matrix work. Define the responsibilities of the PM and the functional manager within a matrix.
- PM - time, scope, cost, quality
- Functional manager - control over how products are delivered and over the approach/resources used within a work package specification and budget
Describe the strengths of a Functional organisational structure
- Develops strong specialist skills
- Efficient use of resources
- Clears departmental lines of communication
- Effective if the project is within one function
- It’s a compromise solution for places that don’t do many projects
Describe the weaknesses of a Functional organisational structure
- Concentrates on specialist goals
- Poor integration leads to a lack of motivation
- Slows development of general management skills
- Slow response/ rate of change
- Lacks customer focus because there is no single point of contact
Describe the strengths of a Project (task force) organisational structure
- Strong commitment to a project; single purpose with a high level of autonomy
- Integrates multiple disciplines
- Develops general management skills
- Clear management definition
- Can operate with informal comms
- Precise budget with transparent PM costs
Describe the weaknesses of a Project (task force) organisational structure
- High visibility can upset the established organisation
- Increased costs because of inefficient use/ duplication of resources
- Reduced job security, unclear career paths
- Prone to symptoms of ‘group think’
- Sharing of lessons learnt can be problematic
- Risks the team becoming distracted at the end of a project
Describe the strengths of a Matrix organisational structure
- Balance between project and BAU
- Integrates projects within functional departments
- Ensures specialist knowledge is developed and is not lost
- Ensures visibility of global priorities
- Ensures flexible and efficient use of resources
Describe the weaknesses of a Matrix organisational structure
- Individuals have two or more bosses
- PM may feel they don’t have enough authority
- More complex organisational structure
- Likely to face functional/ project resource problems
- Conflict and stress more likely
- Constantly changing
What can be used to link an Organisation Breakdown Structure to a Work Breakdown Structure?
A Responsibility Assignment Matrix (using RACI)
What are the two axes on a Responsibility Assignment Matrix?
- Key deliverables/ work packages
2. Resources
