Chap 3 - PEM
Chap 3 - PEM
3–2
Project Management Structures
• Challenges to Organizing Projects
– The uniqueness and short duration of projects relative
to ongoing longer-term organizational activities
– The multidisciplinary and cross-functional nature of
projects creates authority and responsibility dilemmas.
• Choosing an Appropriate Project Management
Structure
– The best system balances
the needs of the project
with the needs of the
organization.
3–3
Project Management Structures (cont’d)
• Organizing Projects: Functional organization
– Different segments of the project are delegated
to respective functional units.
– Coordination is maintained through normal
management channels.
– Used when the interest of one functional area
dominates the project or one functional area has
a dominant interest in the project’s success.
3–4
Functional Organization of Projects
• Advantages • Disadvantages
1. No structural 1. Lack of focus
change
2. Poor integration
2. Flexibility
3. Slow
3. In-depth expertise
4. Lack of ownership
4. Easy post-project
transition
3–5
Project Management Structures (cont’d)
• Organizing Projects: Dedicated Teams
– Teams operate as separate units under the
leadership of a full-time project manager.
– In a projectized organization where projects are the
dominant form of business, functional departments
are responsible for providing support for its teams.
3–6
Project Organization: Dedicated Team
• Advantages • Disadvantages
1. Simple 1. Expensive
2. Fast 2. Internal Strife
3. Cohesive 3. Limited Technological
Expertise
4. Cross-Functional
Integration 4. Difficult Post-Project
Transition
3–7
Project Management Structures (cont’d)
• Organizing Projects: Matrix Structure
– Hybrid organizational structure (matrix) is overlaid on
the normal functional structure.
• Two chains of command (functional and project)
• Project participants report simultaneously to both functional
and project managers.
– Matrix structure optimizes the use of resources.
• Allows for participation on multiple projects while performing
normal functional duties.
• Achieves a greater integration of expertise and project
requirements.
3–8
Different Matrix Forms
• Weak Form
– The authority of the functional manager predominates
and the project manager has indirect authority.
• Balanced Form
– The project manager sets the overall plan and the
functional manager determines how work to be done.
• Strong Form
– The project manager has broader control and
functional departments act as subcontractors
to the project.
3–9
Project Organization: Matrix Form
• Advantages • Disadvantages
1. Efficient 1. Dysfunctional Conflict
2. Strong Project 2. Infighting
Focus
3. Stressful
3. Easier Post-Project
4. Slow
Transition
4. Flexible
3–10
What Is the Right Project
Management Structure?
3–11
What Is the Right Project
Management Structure? (cont’d)
• Project Considerations
– Size of project
– Strategic importance
– Novelty and need for innovation
– Need for integration (number of departments
involved)
– Environmental complexity (number of external
interfaces)
– Budget and time constraints
– Stability of resource requirements
3–12
Organizational Culture
• Organizational Culture Defined
– A system of shared norms, beliefs, values, and
assumptions which bind people together, thereby
creating shared meanings.
– The “personality” of the organization that sets it
apart from other organizations.
• Provides a sense of identify to its members.
3–13
Identifying Cultural Characteristics
3–14
Key Terms
Balanced matrix
Dedicated project team
Matrix
Organizational culture
Projectized organization
Project Office (PO)
Strong matrix
Weak matrix
3–15