Information Technology Project

Management – Third Edition

By Jack T. Marchewka
Northern Illinois University

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The Human Side of Project Management

Chapter 4
Learning Objectives
Describe the three major types of formal
organizational structures: functional, pure project,
and matrix.
Discuss the advantages and disadvantages of the
functional, pure project, and matrix organizational
structures.
Describe the informal organization.
Develop a stakeholder analysis.
Describe the difference between a work group and a
team.
Describe and apply the concept of learning cycles and
lessons learned as a basis for knowledge management.
PMBOK® Area – Project Human Resources
Management
Human Resources Planning
Creating a staff management plan that identifies project roles,
responsibilities, and reporting relationships
Acquiring Project Team
Putting together a project team with the right mix of skills and
experiences
Developing Project Team
The technical, organizational, and interpersonal skills of team members
may need to be augmented through training
Also includes creating the team environment
Managing the Project Team
The challenge of managing local and/or geographically dispersed project
team members
Generally, these groupings and activities are documented
in an organizational
chart to clarify and portray the lines of authority,
communication, reporting relationships,
and responsibilities of individuals and groups within the
organization
The Formal Organization
An organization's structure reveals the formal groupings and specializations
of activities.
These groupings and activities are documented in an organizational chart to
clarify and portray the lines of authority, communication, reporting
relationships, and responsibilities of individuals and groups within the
organization
Published Lines of
Authority
Responsibilities
Reporting Relationships
Communication
Decision-Making
the formal organizational structure will determine how
resources are allocated, who has authority over those
resources, and who is really in charge of the project.
Three most common structures—
Functional,
Matrix,
Project-based organization
Organization and Project Planning
Organizational Structure

Figure 4.1
The Functional Organization

organizing resources to perform specialized tasks or

activities in order to attain the goals of the organization
individuals and subunits (i.e., groups of individuals)
perform similar functions and have similar areas of
expertise. projects are managed within the existing
functional hierarchy.
Projects in a functional organization are typically
coordinated through customary channels and housed
within a particular function.
 The Functional Organization

Figure 4.2
Increased flexibility— Subject matter experts and other
resources can be assigned to the project as needed.
an individual can be part of the project team on a
full-time or part-time basis.
Once the project is completed, the project team
members can return to their respective functional units.
Breadth and depth of knowledge and
experience—Individuals from a particular subunit can
bring a wealth of knowledge, expertise, and experience
to the project.
If the project crosses functional areas, an opportunity
exists for these individuals to learn from each so that a
less parochial solution can be developed
Less duplication—Coordination of resources and activities
can lead to less duplication of resources across projects
since specialization of skills and resources are housed
within a functional area.
Disadvantages
Determining authority and responsibility— project involves more than one
functional area.
For example, in an IT project, will the project manager be from the IS
department or from the functional area?
A project manager from the IS area may have knowledge and expertise with
respect to the technology, but lack critical knowledge about the business.
a project manager from the functional area may understand the business, but
lack an understanding of the technology.
Poor response time—The normal lines of authority and communication
delineated by the functional structure determine who makes specific decisions.
Projects may take longer if important decisions have to pass through several
layers of management and across several functional areas.
Poor integration-the individuals in a functional area may act
in their own best interests instead of taking a holistic or
organizational view of the project.
or, the functional area may attempt to become
self-sufficient by acquiring knowledge, expertise, and
technology outside of its normal area of specialization.
The Functional Organization

Advantages Disadvantages
Increased Flexibility Determining Authority
Breadth & Depth of & Responsibility
Knowledge & Poor Response Time
Experience Poor Integration
Less Duplication
The Project
Organization
Project Organization
Clear authority and responsibility—Unlike the projects in a functional
organization, the project manager here is fully incharge.
the project team reports directly to the project manager, thus providing
clear unity of command.
This structure allow the project team to better concentrate on the
project
Improved communication—A clear line of authority results in more
effective and efficient communication.
High level of integration—Since communication across the organization is
increased, the potential for a higher level of cross integration across the
organization exists.
Fewer conflicts over resources arise since each project has resources
dedicated solely to it.
The Project-Based Organization

Advantages Disadvantages
Clear Authority & Project Isolation
Responsibility Duplication of Effort
Improved “Projectitis”
Communication
High Level of
Integration
 The Matrix Organization

Figure 4.4
The Matrix Organization
combination of the vertical functional structure and the
horizontal project structure
The matrix organization provides many of the opportunities
and challenges associated with the functional and project
organizations
The Matrix Organization

Advantages Disadvantages
High Level of Potential for conflict
Integration Unity of Command can
Improved be violated
Communication Poor Response Time
Increased Project Focus
Hybrid organizations.
The matrix organization can take on various forms that can create hybrid
organizations.
The most common forms include:
Balanced matrix —the project manager focuses on defining all of the
activities of the project, while the functional managers determine how
those activities will be carried out.
Functional matrix —take on more of the qualities of a functional
organization. Here the project manager focuses on coordinating the
project activities, while the functional managers are responsible for
completing those activities that are related to their particular area.
Project matrix —Take most of the qualities of a project organization. the
project manager has most of the authority and responsibility for defining
and completing the project activities, while the functional managers
provide guidance and resources, as needed.
While the formal organizational
structure tells us how individuals
or groups within an organization
should relate to one another, it
does not tell us how they actually
relate.
 The Informal Organization
Bypasses formal lines of communication & authority
Power is determined by how well one is connected
in the informal network – i.e., the “grapevine”
Can be more complex than the formal organization
because relationships are established from positive
and negative relationships over time
Stakeholders

Individuals, groups, or even

organizations that have a “stake”
or claim in the project’s (successful
or unsuccessful) outcome
Stakeholder Analysis Process

1. Develop a list of stakeholders who have an

interest in the successful or unsuccessful
outcome of the project
2. Identify the stakeholder’s interest in the
project
“+1” for positive interest
“0” for neutral
“-1” for negative interest
 Stakeholder Analysis
1. Determine the degree of influence each
stakeholder has on a scale of 0 (no influence) to 10
(can terminate the project)
2. Define a role for each stakeholder – e.g.,
champion, consultant, decision maker, ally, rival,
foe, etc.
 Stakeholder Analysis
1. Identify an objective for each stakeholder – e.g.,
provide resources, guidance, expertise, acceptance,
approval, etc.
2. Identify a strategy for each stakeholder – e.g.,
build, maintain, improve, re-establish the
relationship
Stakehol Interest Influence Potential Role Objective Strategy
der Conflicts

Hirem N. +1 5 Competition for Project Sponsor Provide resources, To maintain open

Firem resources with other and Champion approvals, and public communication so that
functional managers support for the project political landmines can be
avoided
Dee +1 3 Resources not made Project Manager Lead and manage the Work closely with project
Manitger available as promised project so that it stakeholders and project
by functional achieves its MOV team
managers

Project +1 2 This project will Steve Turner – Provide expertise to Support project team with
Team change a number Network complete the project adequate resources while
business processes. Administrator work minimizing distractions
Affected users may Shedelle Bivits –
resist change by Systems Analyst
withholding Corean Jenkins –
information Programmer/DB
A
Myra Dickens –
Inventory Analyst
I. Will -1 4 As the marketing Foe Build and maintain best Maintain open
Sellit manager, Sellit is not possible relationship to communication. Use project
pleased that this minimize attempts to sponsor’s influence as
project was chosen divert resources necessary
over his proposed
project. May
withhold promised
resources
The Project Team
The Roles of the Project Manager
Managerial role
Leadership role
Attributes of a successful project manager
ability to communicate with people
ability to deal with people
ability to create and sustain relationships
ability to organize
The Wisdom of Teams - Jon R. Katzenbach
Douglas K. Smith

Work Groups
Pseudo Teams
Potential Teams
Real Teams
High Performance Teams
Work Groups

Members interact to share information, best

practices, or ideas
No shared performance goals (individual
performance)
No joint work-products
No mutual accountability
Viable in many situations
E.g., study group
Teams
Bring complementary skills & experience
Jointly defined clear goals & approaches improve
communication
Improve decision-making
Have more fun
Real Teams
1. Small number of people
2. Complementary skills
3. Committed to a common purpose
4. Common goals
5. Common approach
6. Hold themselves accountable
Pseudo Teams
Weakest of all groups
Not focused on collective performance (& not trying
to achieve it)
No interest in shaping a common purpose
Confusion & dysfunctional behaviours
Potential Teams
Significant performance potential
Requires more clarity about purpose, goals,
work-products, and common approach
High Performance Teams

Meet all the conditions of a real team

PLUS:
Members are deeply committed
Perform above all reasonable expectations
Vital Signs for Evaluation

6 Project Team Basics

Themes & Identity
Enthusiasm & Energy Level
Event-Driven Histories
Personal Commitment
Earned Membership
Team Leader (Project Manager)
Acts To:
Clarify purpose & goals
Build commitment & self confidence
Strengthen team’s collective skills
Remove external obstacles
Create opportunities for others
Creates the Project Environment
Work space
Team culture and values
Project administration
Ethical Conduct
A Learning Cycle Approach to Project
Management
An Agile Project Management Approach
Learning Cycles

Derived from
educator/philosopher John
Dewey (1938)
Used to describe how
people learn (Kolb, 1984;
Honey & Mumford, 1994)
Can be applied to project
teams (Jeris, 1997; Redding,
2000).
Traditional Teams
Accept background information at “face-value”
Approach projects in logical, linear fashion
Provide run-of-the-mill solutions
Solutions remain within the original “frame” or how the
problem was originally presented to them
Radical Teams
Do not accept issues & tasks at their “face value”
The way the problem is defined may very well be the
problem
Unquestioned assumptions are surfaced & challenged
Only by digging below the surface can we get to the
“root” so that a meaningful solution can emerge
A Learning Cycle

Figure 4.6
Example of a Team Learning Record

What we know What we think we What we don’t

(Facts) know know
(Assumptions) (Questions to be
Answered)
Company has too It may be an efficiency Why are inventory
much inventory on problem levels so high?
hand
Cost of maintaining Management believes an What are the
current inventory is new information system current levels of
becoming will improve efficiency inventory?
prohibitive and therefore lower
inventory levels
Inventory turnover What is the desired
needs to be level of inventory?
increased

Figure 4.7
An Example of an Action Plan for Team Learning

Who? Does What? By When?

Shedelle and Steve Interview sales team Tuesday
to understand past,
current, and future
trends for the
company’s product.

Myra Provide a detailed Thursday

count of the current
physical inventory on
hand.
Corean Research potential Thursday
inventory management
system commercial
packages

Steve Research average Wednesday

inventory levels for
the industry

Figure 4.8
Team Learning Cycles over the Project Life
Cycle

Each cycle provides

the opportunity to
Figure 4.9 challenge framing assumptions,
create new understanding &
Assessing Team Learning

Speed

Breadth
Depth
(Impact)
The Project Environment
A place to call home
Technology
Office supplies
Culture
What is expected from
each team member?
What role will each
team member play?
How will conflicts be
resolved?
Example of a Project Team Charter

Figure 4.10