Project Management StructureProject Management Structures
• Challenges to Organizing Projects
–The uniqueness and short duration of projects relative
to ongoing longer-term organizational activities
–The multi discip
...
Project Management StructureProject Management Structures
• Challenges to Organizing Projects
–The uniqueness and short duration of projects relative
to ongoing longer-term organizational activities
–The multi disciplinary 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.Project Management Structures
• 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.Functional OrganizationsFunctional Organization of Projects
•Advantages
1. No Structural
Change
2. Flexibility
3. In-Depth Expertise
4. Easy Post-Project
Transition
•Disadvantages
1. Lack of Focus
2. Poor Integration
3. Slow
4. Lack of OwnershipProject 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.Dedicated Project TeamProject Organization: Dedicated Team
•Advantages
1. Simple
2. Fast
3. Cohesive
4. Cross-Functional
Integration
•Disadvantages
1. Expensive
2. Internal Strife
3. Limited
Technological
Expertise
4. Difficult Post-Project
TransitionProjectized Organizational StructureProject 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.Matrix Organization StructureDivision of Project Manager and Functional
Manager Responsibilities in a Matrix Structure
Project Manager
What has to be done?
Negotiated Issues
Who will do the task?
Functional Manager
How will it be done?
When should the task bedone? Where will the task be done?
How much money is available
to do the task?
Why will the task be done? How will the project involvement
impact normal functional activities?
How well has the total project Is the task satisfactorily How well has the functional
been done? completed? input been integrated?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.Project Organization: Matrix Form
• Advantages
1. Efficient
2. Strong Project
Focus
3. Easier Post-Project
Transition
4. Flexible
•Disadvantages
1. Dysfunctional
Conflict
2. Infighting
3. Stressful
4. SlowChoosing the Appropriate Project
Management Structure
• Organization (Form) Considerations
–How important is the project to the firm’s success?
–What percentage of core work involves projects?
–What level of resources (human and physical)
are available?Choosing the Appropriate 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 requirementsOrganizational 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.
• Helps legitimize the management system of the organization.
• Clarifies and reinforces standards of behavior.Identifying Cultural Characteristics
• Study the physical characteristics
of an organization.
• Read about the organization.
• Observe how people interact
within the organization.
• Interpret stories and folklore
surrounding the organization.Implications of Organizational Culture
for Organizing Projects
• Challenges for Project Managers
in Navigating Organizational Cultures
–Interacting with the culture and subcultures
of the parent organization
–Interacting with the project’s clients
or customer organizations
–Interacting with other organizations
connected to the projectProject Management Structures (cont’d)
• Organizing Projects: Network Organizations
–An alliance of several organizations for the purpose
of creating products or services.
• A “hub” or “core” firm with strong core competencies
outsources key activities to a collaborative cluster of satellite
organizations.Project Organization: Network Form
• Advantages
–Cost Reduction
–High Level of
Expertise
–Flexible
• Disadvantages
–Coordination of
Breakdowns
–Loss of Control
–ConflictProject Leader and
ManagerManaging versus Leading a Project
• Managing—coping with
complexity
– Formulate plans and
objectives
– Monitor results
– Take corrective action
– Expedite activities
– Solve technical problems
– Serve as peacemaker
– Make tradeoffs among
time, costs, and project
scope
• Leading—coping with
change
– Recognize the need to
change to keep the project
on track
– Initiate change
– Provide direction and
motivation
– Innovate and adapt as
necessary
– Integrate assigned
resourcesManaging Project Stakeholders
• Project Management Maxims:
–You can’t do it all and get it all done
• Projects usually involve a vast web of relationships.
–Hands-on work is not the same as leading.
• More pressure and more involvement can reduce
your effectiveness as a leader.
–What’s important to you likely isn’t as important
to someone else
• Different groups have different stakes (responsibilities,
agendas, and priorities) in the outcome of a project.
–Remember: project management is tough, exciting,
and rewarding—endeavor to persevere.Network of StakeholdersInfluence as Exchange
• The Law of Reciprocity
–One good deed deserves another, and
likewise, one bad deed deserves another.
• Quid pro Quo
–Mutual exchanges of resources and services
(―back-scratching‖) build relationships.
• Influence ―Currencies‖ (Cohen and Bradford)
–Cooperative relationships are built on the exchange
of organizational ―currencies‖ (favors).Social Network Building
• Mapping Dependencies
–Project team perspective:
• Whose cooperation will we need?
• Whose agreement or approval will we need?
• Whose opposition would keep us
from accomplishing the project?
–Stakeholders’ perspective:
• What differences exist between the team and
those on whom the team will depend?
• How do the stakeholders view the project?
• What is the status of our relationships with the stakeholders?
• What sources of influence does the team have relative to
the stakeholders?Management by Wandering Around
• Management by Wandering Around (MBWA)
–Involves managers spending the majority of their time
in face-to-face interactions with employees building
cooperative relationships.
• Characteristics of Effective Project Managers
–Initiate contact with key players.
–Anticipate potential problems.
–Provide encouragement.
–Reinforce the objectives and vision of the project.
–Intervene to resolve conflicts and prevent stalemates.Managing Upward Relations
• Project Success = Top Management Support
–Appropriate budgets
–Responsiveness to unexpected needs
–A clear signal to the organization
of the importance of cooperation
• Motivating the Project Team
–Influence top management in favor of the team:
• Rescind unreasonable demands
• Provide additional resources
• Recognize the accomplishments of team membersThe Significance of a Project SponsorLeading by ExampleEthics and Project Management
• Ethical Dilemmas
–Situations where it is difficult to determine
whether conduct is right or wrong:
• Padding of cost and time estimations
• Exaggerating pay-offs of project proposals
• Falsely assuring customers that everything is on track
• Being pressured to alter status reports
• Falsifying cost accounts
• Compromising safety standards to accelerate progress
• Approving shoddy work
–Code of conduct
• Professional standards and personal integrityContradictions of Project Management
• Innovate and maintain stability.
• See the big picture while getting your hands
dirty.
• Encourage individuals but stress the team.
• Hands-off/Hands-on.
• Flexible but firm.
• Team versus organizational loyalties.Qualities of an Effective Project Manager
1. Systems thinker
2. Personal integrity
3. Proactive
4. High emotional intelligence (EQ).
5. General business perspective
6. Effective time management
7. Skillful politician
8. OptimistSuggestions for Project Managers
• Build relationships before you need them.
• Trust is sustained through frequent
face-to-face contact.
• Realize that ―what goes around comes around.‖Copyright 2012, SAGE Publications, Inc.
Thank You
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