ORGANIZATION: STRUCTURE AND

CULTURE
MGMT 6084 PROJECT MANAGEMENT

MODULE
THREE

Prof. Mohamed Soliman

Project Management by Nick Youngson CC BY-SA 3.0 Alpha Stock Images

The following content was prepared by Prof Robert Brookes and reproduced
from Larson, Gray (2018) Project Management: The Managerial Process.
WHAT ARE WE GOING TO DO TODAY?

 Review Case 2.3.

 Learn about the three main types of organizational structure:
 Functional
 Dedicated Project / Projectized
 Matrix
 Learn about the factors that influence organizational culture.
 Apply what you have learned to Fanshawe.
 Review the online activities for Module 3.
MODULE 2 REVIEW

 How did the

case studies go?
 Who did you
pick and why?
WHERE DO YOU WANT TO WORK?
 Think about an actual or ideal company you would like to work with after you
graduate.
 What is it about this company that makes it attractive?
 Pay and benefits?
 Marketplace brand?
 Opportunities for advancement?
 Do you know people that work there?
 Does the company culture have a reputation? E.g. Google is ‘fun’, Apple is
‘innovative’.
 Write down a few points then share with a partner or group of 3.
 Did you write down similar points?
PROJECT MANAGEMENT

You are here!

THE IMPORTANCE OF STRUCTURE

 Projects operate within the organizational environment – and they are

different from the normal day-to-day activities around which the
company has evolved.
 There can be issues!
 Competition between projects (short term) and organizational
activities (long term).
 Authority and responsibility conflicts.
TYPES OF STRUCTURE

Dedicated
Functional Matrix
Project

Projectized Weak Balanced Strong

THE FUNCTIONAL ORGANIZATION

Organizing Projects: Functional Organization

 Different segments of the project are delegated

to respective functional units.

 Coordination is maintained through normal management channels.

 It is used when the interest of one functional area dominates the

project or one functional area has a dominant interest in the project’s
success.
THE FUNCTIONAL ORGANIZATION
THE FUNCTIONAL ORGANIZATION
Advantages
Commonly used structure.
Flexibility. Gives employees an
opportunity to try different
things.
Can develop / deploy deep
technical expertise.
Maintains functional career path.
Disadvantages
Balancing project versus
functional needs can be difficult.
Project may have variable priority
levels between departments.
Can be difficult to integrate work
between departments.
Projects can take longer to
complete (weakest link).
Lack of ownership and
accountability.
DEDICATED PROJECT TEAMS

Organizing Projects: Dedicated Project 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 – WITHIN FUNCTIONAL
ORGANIZATION

Having learned about the functional

structure, what do you think may be the
key advantage of using this structure?
What is a key disadvantage?
DEDICATED PROJECT – PROJECTIZED
ORGANIZATION
DEDICATED PROJECT
Advantages
Organization can still act functionally
while dedicating resources.
Fast – since employees have a single
role they can respond more quickly to
project needs.
The project team can function more
cohesively as the project is the main
priority for the group.
The project takes precedence over
functional specializations.
Disadvantages
More expensive due to management
overhead, possible inefficiencies.
Team can evolve to be ‘separate’ from
the company, or compete with other
project teams.
The longer term nature of the project
teams means that highly specialized
employees may be hesitant to
participate.
More difficult for employees to
transition back to their functional role,
and this may hamper career
development.
THE MATRIX STRUCTURE

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 DESIGN
 MATRIX DESIGN – DIVISION OF
RESPONSIBILITIES

Project Manager Negotiated Issues Functional Mngr

• What has to be done? • Who will do the task? • How will it be done?

• When should the task • Where will the task be

be done? done?

• How much money is • Why will the task be • How will the project
available to complete done? involvement affect day-
the task? to-day activities?
• Is the task
• How well has the total satisfactorily • How well has the
project been completed? functional input been
completed? integrated?
 MATRIX DESIGN

Weak Matrix Balanced Matrix Strong Matrix

• Close to functional • Project manager has

• Project manager says
design. final say on most
‘what’
• Dedicated project decisions.
• Functional manager
manager who co- • Functional group still
says ‘why’.
ordinates and controls
• Project manager has
monitors activities. implementation
more power to
• Functional manager ‘details’.
prioritize activities, but
accountable for • Can be close to
this arrangement still
project deliverables dedicated project
requires negotiation.
and prioritization. design.
MATRIX DESIGN
Advantages
Efficiency is increased as it is easier to
allocate resources effectively.
Portfolio management is supported.
Functional specialists don’t have to
leave their functional group.
Very flexible in terms of resources and
reporting structures.
Disadvantages
There may be conflict between
functional managers and project
managers.
There may be conflict between project
managers when it comes to allocation
of scarce resources.
Project team members have two (or
more) bosses, which can create stress.
Due to the need for negotiation
between managers, the matrix
structure can actually slow down
projects (this applies more to weak or
balanced matrices).
TYPES OF STRUCTURE REVISITED

Dedicated
Functional Matrix
Project

Projectized Weak Balanced Strong

AGAIN: FUNCTIONAL ORGANISATION
AGAIN: PROJICTISED ORGANISATION
AGAIN: STRONG MATRIX ORGANIZATION
AGAIN: BALANCED MATRIX ORGANIZATION
AGAIN: WEAK MATRIX ORGANIZATION
ORGANIZATIONAL STRUCTURE SUMMARY
BREAK TIME

 5 minutes

Licenced under CC
3.0
TYPES OF STRUCTURE REVISITED

Dedicated
Functional Matrix
Project

Projectized Weak Balanced Strong

TYPES OF STRUCTURE REVISITED
EXAMPLES OF ORGANIZATIONAL STRUCTURE

 Check out the company

online that you thought
about in the first
exercise.
 What type of structure
do they have (or do you
think they have)?
 Share your results.
 WHAT IS THE ‘RIGHT’ STRUCTURE?
Organization 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?

Project Considerations
 Size of project
 Strategic importance  Environmental complexity (number
of external interfaces)
 Novelty and need for innovation
 Budget and time constraints
 Need for integration (number of
departments involved)  Stability of resource requirements
ORGANIZATIONAL CULTURE

Organizational Organizational
Structure Culture

Project
Success!
ORGANIZATIONAL CULTURE

Organizational culture refers to a system of

shared norms, beliefs, values, and assumptions which
binds people together, thereby creating shared
meanings. [Larson and Gray pg. 81]
UNDERSTANDING ORGANIZATIONAL CULTURE

 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
ORGANIZATIONAL CULTURE

Organizational Culture

 Provides a sense of
identity.
 Helps legitimize the
management system.
 Clarifies and reinforces
standards of behaviour.
 Helps create social order
within an organization.
 NAVIGATING CULTURE

Challenges for Project Managers

in Navigating Organizational Cultures
 Interacting with the culture and
subcultures of the parent
organization Source: Pixalbay

 Interacting with the project’s

clients or customer organizations
 Interacting with other
organizations connected to the
project
Source: Wikimedia Commons
A CULTURE SUPPORTIVE OF PROJECT
MANAGEMENT
 CULTURE EXERCISE
Using the organizational culture criteria,
how would you rate Fanshawe as a
student?

For example, do you identify more with

just generally being a student, or as a
student at Fanshawe?

Do you identify more as an individual or a

member of your project team or class?

Are your instructors more focused on

what you produce or as students as
people?

Work with a partner and be prepared to

discuss (and defend) your results!
SUMMARY

 You learned about organizational structure:

 How to determine the different types of structure.
 The advantages and disadvantages of each type of structure as they
relate to project management.
 You learned about organizational culture:
 How culture is different from structure.
 How to ‘measure’ culture and how it relates to project management.
THINGS TO DO BETWEEN NOW AND THE NEXT
CLASS…

 Your groupwork project this week is to complete Case 3.1: Moss and McAdams
Accounting Firm.
 Meet with your group, organize the workload and arrange to submit your responses to
the four questions.
 Don’t forget to fill out and submit your team minutes.
 READ Chapter 4, Project Management 7E – Larson and Gray.
ANSWERING THE CASE STUDY – CASE 3.1

 Answer all four questions.

 Use your experience along with what you have learned.
 Each case answer should be about one-half a page (based on standard margins
and spacing in Microsoft Word). Total submission <= 2 pages.
 It is good practice to have each team member read the case and create a draft
list of points prior to meeting. Then, during the meeting discuss and decide which
points are most important.
 Assign on person to do the final write-up. At least one other person should
review this prior to uploading your submission:
1. A Microsoft Word or PDF that has the answers to questions 1-4.
2. A copy of your team minutes document.
TIPS FOR WORKING ON CASES
1. Read the opening and ending paragraphs.
2. Skim the case and note the case questions.
3. Read the case in detail, noting the following:
1. What is the main issue in this case?
2. Who are the key players?
3. What data is available to support your answer (qualitative and quantitative)?
4. What alternatives are there to each question? For example, in the M&M case, the first
question asks how Palmer might respond. Generally he could respond positively or
negatively to the news. How would your respond and why? Justify your answer.
5. Assess your alternatives and select the preferred one.
6. Write up your final answer, using the notes you have generated through the process.
4. Make sure that the answers to the questions are consistent with one another.