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4. 4KF3 Ch. 3 Organization - Structure and Culture.docx

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Chapter 3: Organization: Structure and Culture 4KF3 Lecture Notes Organization Structure Key Elements*** 1. Work specialization 2. Departmentalization 3. Chain of command 4. Span of control 5. Centralization/decentralization 6. Formalization Functional Organization Pure Project Organization Page 1 of 8 Chapter 3: Organization: Structure and Culture 4KF3 Matrix Organizations  Weak matrix is closer to functional organization because departmental Manager has more control  Strong matrix closer to pure project organization because Project Manager has more control Page 2 of 8 Chapter 3: Organization: Structure and Culture 4KF3 Organizational Culture Ex. if there is strong team emphasis, you would have more inclination to use a pure project organizational structure Identifying Cultural Characteristics  Study physical characteristics of organization.  Read about the organization.  Observe how people interact with the organization.  Interpret stories and folklore about the organization. Page 3 of 8 Chapter 3: Organization: Structure and Culture 4KF3 Right Management Project Structure Considerations How to Choose Organizational Form  Define project outcomes  Determine key tasks and functional expertise locations  Arrange key tasks by sequence and decompose into work packages  Determine which organizational units need to work on work packages  List any special characteristics or assumptions  Considering the above, choose a structure Project Management Offices PMO Models  Weather Station o Source of information for everyone in the company to use as a reference o Gives advice to other employees  Control Tower o Everything is run from the PMO  Resource Pool o When a project needs to be done, they will send in help Page 4 of 8 Chapter 3: Organization: Structure and Culture 4KF3 Reading Notes  Three types of project management structures: functional organization, dedicated project teams, matrix structure  Organizational culture: reflects the personality of a an organization Project Management Structures  System provides a framework for launching and implementing project activities within a parent organization o Balances the needs of both the parent organization and the project by defining the interface in terms of authority, allocation of resources, and eventual integration of project outcomes into mainstream opportunities  Efficiency is achieved by breaking down complex tasks into simplified, repetitive responses Organizing Projects within the Functional Organization  Different segments of a project are delegated to the respective functional units  Coordination is maintained through normal management channels  Commonly used when one functional area plays a dominant role in completing the project o A high ranking manager in that area is given the responsibility of coordinating the project  Major advantages of this structure o No change to the existing organizational structure o Flexibility for staff (can be switched on and off fairly easily) o In-depth expertise o Early post-project transition – normal career paths are maintained  Disadvantages of this structure (worse when the scope is broad and no one function takes over) o Lack of focus because everyone has their own core routine work to complete o Poor integration o Slow – harder to communicate efficiently o Lack of ownership – because they only work on a segment, they do not identify Organizing Projects as Dedicated Teams  Teams operates as separate units from the rest of the parent organization  Full-time project manager is designated to bring together full-time specialists  Interface between parent organization and project teams will vary  Projectized organization: when an organization consists of quasi-project teams and functional departments assist those teams  Major advantages of this structure: o Simple – functional teams can operate independently as before o Fast – participants are on projects full-time, decisions not deferred for approval o Cohesive – common goal is motivating Page 5 of 8 Chapter 3: Organization: Structure and Culture 4KF3 o Cross-Functional Integration – commitment to optimizing the project  Disadvantages of this structure (more so when the parent’s needs are taken into account) o Expensive – duplication of efforts and a loss of economies of scale o Internal Strife – we-they divisiveness o Limited technological expertise – can stop members from looking outside o Difficult post-project transition – when the project is over, what to do with members Organizing Projects with a Matrix Arrangement  Matrix management is a hybrid organizational form in which a horizontal project management structure is overlaid on the normal functional hierarchy  Two chains of command: one across functional lines and one across project lines  Could be temporary or permanent  Each project has an administrative assistant  Designed to optimally utilize resources by having individuals work on multiple projects as well as being capable of performing normal functional duties  Dual focus between functional/technical expertise and project requirements  Different matrix forms: o Weak matrix: similar to a functional approach with the exception that there is a formally designated project manager responsible for coordinating project
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