MBA 4001

PROJECT MANAGEMENT
Module 4
 Module 4: Project Organizational
2
Structures
4.1 Organizing groups into projects
4.2 Roles and responsibilities of Project team members
4.3 Roles of systems analysis and systems management
4.4 Relationship between project managers and line
managers
4.5 Division of responsibility and authority among team
members

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3 Organizing groups into projects

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 Organization Designs
4

 Organization is a social entity that has a collective

goal and is linked to an external environment.
 The purpose of an organization to coordinate the
efforts of many to accomplish goals.
 There are a number of options, functional (pyramid of
hierarchy), project, and matrix organization
 Project Managers need to understand relative
advantages and disadvantages of each

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 Organization Structure
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 Represents the management hierarchy:

 Reporting relationships who report to whom
 The official chain of control or authority, which deals of
official activities, such firing, hiring, and promotion.
 Organization can be grouped into major subdivisions
on the basis of a number of frameworks.
 Responsibilities & type of work for each subdivision
 Official lines of authority & communication

Informal organizations are also important and can exist in parallel to the official
organization, communication of the informal is socially motivated.

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 Alternative Structures
6

 There are a number of options

 Best depends on goals, type of work it
supposed to do, and the environment
within which it operates.
 Forms of organization structures are:
 Functional organization
 Project organization
 Matrix organization

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 Functional Organization
7

This type relies on formal rules, procedures, coordinated

plans, budgets, fairly common, segmented by department
and their functions. Works well in repetitive, stable
environments

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 Functional org…
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 A functional organization is the most common type of the

three.
 It works best in small organizations in which the different
sections are geographically close together and which
provide only a small number of goods and/or services.
 In a functional structure, the organization is broken into
different sections based upon specialty. For example,
there may be one area for sales, one for customer service
and one for the supervisors who deal with escalated
problems.
 The project manager's role is to ensure smooth execution
of processes and projects; however, the functional
manager has the most power and makes the final
decisions.
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 Types of Functional org
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 Geographic Differentiation
 Product Differentiation

 Customer Differentiation

 Process Differentiation

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 Advantages of Functional Organization
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The advantage to the functional structure is the role

of the functional manager, which means there is only
one boss. This reduces or prevents conflicts of
interest and makes it easier to manage specialists:

 Clear line of authority

 Career development
 Comfortable and easy
 Technical expertise
 Flexible resource assignment

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 Disadvantages of functional org.
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The disadvantage of this type of structure is that the

project manager has limited authority and a limited
career path.
 No accountability over complete project
 No project emphasis
 Low coordination across function
 No customer focal point
 Low delegation of authority
 Work delays due to red tape
 Heavy politics
 Lack of a big picture view
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 Projectized Organization
12

 Projectized organization is a project focused organizational

structure where project manager has the final authority over
the project to make project decisions, priorities, acquire and
assign resources.
 A projectized organization refers specifically to an
organizational structure that has been set up in a manner in
which the project manager leads the group and in which the
project manager has the ultimate authority to make any and
all decisions involving the organization.
 In a projectized structure, all the work is looked at as a
project. The project manager has complete control, unlike in
the functional structure, and all team members report
directly to the project manager.
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 Projectized Organization
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 Projectised Organization
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 Sometimes these team members are permanent, and

sometimes they are hired as temporary workers to
help with the project until its completion. If the
organization takes on a large project, it will have all
the necessary resources available to sustain the
project and will act as a small, self-contained
company.
 The project manager works with complete autonomy
(central authority, power) over the project, team is on
the project full time and report to the project
manager.
 As a project manager, you have the responsibility to
take authority, rather than waiting for someone to
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 Project Organizations (Pros and
15
Cons)
 Advantages to the projectized structure include the project
manager's opportunity for career progression. In addition,
because good communication exists within the project work, the
team members tend to be more committed to, and excel in, their
responsibilities.
 The disadvantage of a projectized structure is that, because the
team breaks up and disperses after the completion of the
project, there are no long-term goals or sense of job security for
the rest of the workers.
 Another disadvantage is that the organization has to essentially
clone the same resources for each project (project manager,
work area, administrator).
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 More Advantages of Project Org.
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 The main advantage of having a projectized

organization is that decisions are made much faster
due to shorter communication paths.
 Additionally, project managers have real authority
and the team is more loyal, more dedicated, and is
not disturbed by the problem of "multiple managers"

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 Comparison between org. types
17

 There are several differences between projectized and

other types of organizations:
 In projectized organizations, the Project Manager has all
the authority he wants, as opposed to matrix and
functional organizations, where the Project Manager has
no or little authority.
 The Project Manager owns the resources, as opposed to
matrix and functional organizations where he borrows the
resources. Resources are only allocated to projects
in projectized organizations.
 In other types of organizations, resources report to their
functional managers and usually do routine, non-project
work.
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 Matrix Organization
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 It is used mainly in the management of

large projects or product
development processes, drawing employees from
different functional disciplines for assignment to
a team without removing them from their
respective positions.
 Matrix management is a type of
organizational management in which people with
similar skills are pooled for work assignments.
 The matrix structure combines both the functional and
projectized structures. Each team member has two
bosses; they report both to the functional manager
and the project manager.
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 Matrix Organization
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 If the matrix is strong, the power resides more

with the project manager.
 If the matrix is weak, the power resides more
with the functional manager.
 The key is to find a balance in which the
power is shared equally.
 Because of its complexity, this type of
structure can lead to problems if it is not used
carefully and properly. Good communication
is essential for success.
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 Matrix organization
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 Advantages of Matrix Structure
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❑ Efficient use of resources

❑ Efficient communication both vertically and horizontally.
❑ Individuals can be chosen according to the needs of the
project.
❑ Project team which is dynamic and able to view problems
in different way as specialists have been brought together
in a new environment.
❑ Project managers are directly responsible for completing
the project within specific deadline and budget

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 Advantages of Matrix Structure
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❑ Required resources can be managed moving into and out

of the project team
❑ Project cost is lessened because resources are used as
needed
❑ There are an appropriate focus on the project objectives
through a single PM
❑ The overall enterprise utilization of resources is better
handled

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 Disadvantages of Matrix
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 Complexity, which can be difficult to

manage.
 For example, if the functional manager
and the project manager do not
communicate well, then the team members
can be caught in the middle causing
confusion, loss of morale and consequent
delay / cost over runs in the project.

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 Disadvantages of Matrix
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The other disadvantages include:

 A conflict of loyalty between line managers
and project managers over the allocation of
resources.
 Projects can be difficult to monitor if teams
have a lot of independence.
 Costs can be increased if more managers (ie
project mangers) are created through the use
of project teams.

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 Matrix Problems
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 Unclear lines of authority, Two bosses, dual

reporting
“No Man Can Serve Two Masters!”
violation of the military principle of UNITY OF
COMMAND
 Chaos, confusion more common
 Often project manager tells you what to do, but your
raise comes from functional manager
 Success highly depends on individuals
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 Matrix Capabilities
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 Functional part provides repository for technical

expertise and physical resources
 When in functional home, workers keep up
professionally (train)
 Functional homes a place to go when project over
(no new job search)

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 Roles and responsibilities of Project team
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members

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 Project Structure
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Executive Sponsor

Advisory/Steering Team
Project Sponsor

Project Leader

Project Core Team

<Name> <Name> <Name>

Functional Team Functional Team Functional Team

Project Resources
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 Project Roles
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 Project Sponsors
 Serve as champions for the project and provide high-
level direction, authority, decision-making and resources
for the project.
 Advisory or Steering Team
 Supports the sponsor(s) and project leader. Provides
high-level direction, input, and decision making.


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 Project Roles
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 Project Manager
 Responsible for planning, organizing, managing,
controlling and communicating on all phases of a project
 Project/Technical Leader
 Provides subject matter expertise and functional
ownership and accountability for project results.

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 Project Roles
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
Core Team
 Provides day-to-day leadership for the planning,
implementation, and closing of a project

Functional Team Leader
 Manages the sub team and pursues the team’s given objectives
(i.e. project tasks)

Team Member
 Responsible for contributing to overall project objectives and
specific team deliverables

Project Resource
 Responsible for providing subject matter expertise as needed
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 Project Roles
32

 Project Resource (Key Users)

 Provides source information to the team
 Provides expert business understanding of the
organization
 Represents the user’s area in identifying current or
future procedures
 Reviews and confirms major Project work products for
the project
 Participates as required in User Acceptance Testing
Activities
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 Project Initiation :Align the Team
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 The basis for establishing a common understanding

of roles and responsibilities.
 Team Member Identification
 Team Roles and Responsibilities
 Measures of Success

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 Team Member Identification
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 Identifying the Project Delivery Team needed to

accomplish the work assigned.
 Specialty Groups
 Consultants
 Contractors
 Others (vendors, etc.)

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 Team Member Identification
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 It’s up to the Project Manager to assess the project

and assemble a team with the necessary skills to
accomplish the project effort.
 Project Manager must secure resources and services
from the appropriate specialty group (functional
group) managers
 Team member’s efforts must complement one
another, gaining everyone’s buy in and commitment
is the key to effectively managing the scope of the
project.
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 Team Member Identification
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Steps:
1. Review project description, identify skills required
2. Work with functional managers to identify,
schedule, and commit appropriate staff
3. Identify consultant/contractor services required
4. Define the Project Organization

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 Team Roles and Responsibilities
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 “Who will do what?”

• Responsibilities
– deliverables
or products expected of Team
members

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 Team Roles and Responsibilities
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Steps:
1. The Project Manager collaborates with the
project team to identify individual roles.
2. Review and determine individual and team
responsibilities and the corresponding authority.

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 Project Managers
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 Plan and Identify/provide resources

 Lead Project Management Process
 Develop Project Management Plan

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 Team Members
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 Endorse & implement Project Management Plan

 Perform designated roles and responsibilities
 Provide estimates to Project Manager
 Review Project Management Plan

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 Team Alignment
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Team Alignment
Building the foundation of cooperation
Forming a cohesive, effective unit

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 Measures of Success
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Measures of Success
Indicators or metrics used
to assess progress –
reviewed at regular
intervals during the
project

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 Measures of Success
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Steps:
1. Identify Critical Success Factors
2. Review Critical Success Factors with Region /
Organizational Management
3. Identify corresponding Measures of Success
4. Define values that will be monitored and reported

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 Operating Guidelines
44

Specific processes and rules the Team will use to

maintain cohesiveness and effectiveness.
 Team Decision-Making Process

 Team Meetings

 Communication

 Team Performance Measures

 Team Issues and Conflict Resolution

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 Other Support Team Roles
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 Business Analyst
 Domain (Subject Matter) Experts
 Eg.Graphic Designer etc. (Special skills)

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 Roles of systems analysis and systems
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management

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 Systems Analysis
47

 A system analyst is responsible for analyzing,

designing and implementing systems to fulfill
organizational needs.
 He/she plays a vital role in making operational the
management information system.
 The role of the system analyst has however
changed.

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 Systems Analysis Role
48

 System analyst is seen more as a change agent

responsible for delivering value to an organization
on its investments in management information
systems (that includes a heavy dose of information
communication technology investment).
 ‘A person who conducts a methodical study and
evaluation of an activity such as business to identify
its desired objectives in order to determine
procedures by which these objectives can be gained

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 Systems Analyst Need
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 Organization requires system analysts as line

managers normally do not have an understanding
of the kind of information-based solutions that are
possible for their business problems.
 System analysts bridges this gap as he/she is has a
thorough knowledge of both the business systems
and business processes

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 Systems Analyst Need
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 A system analyst is therefore in a position to

provide information system based solutions to
organizations after having studied the problem that
the organization is facing.
 Understand both business and technology.
 Study business problem or opportunity and devise
an information system enabled solution for it by
detailing the information system specifications.

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 Systems Analyst Need
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 Specification that the analyst delivers is in a

technical format which is easily understandable to a
technical (IT) specialist.
 Technical specialist might not understand the
business issue, if it comes directly from the line
managers as he has very little knowledge of
business processes.

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 Systems Analyst Need
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 The system analyst then bridges the gap between

the two by translating and transforming the business
problem/opportunity into a information systems
solution and supplying the specification of such a
system to the technologist who can then take up the
task and build the actual system.
 In most cases, the analyst works as a change agent.

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 Systems Analyst Need
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 When devising a solution, the analyst does not restrict

him/ her to the immediate problem/opportunity at
hand but also focuses on the future.
 This requires that an analyst suggest some changes in
the process of doing business to bring in greater
efficiency in future.
 Inevitably, the process of creating an information
systems enabled solution is coupled with the activity
of business process reengineering through which
change is brought
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 Systems Analyst Need
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 The analyst uses the opportunity of devising a solution

to bring in change and make the organization more
efficient. Thus, a system analyst may also be
considered as a change agent.
 Work of an analyst not only requires very good
understanding of technical knowledge but also of
business and interpersonal skills.

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 Systems Analyst Need
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 The interpersonal skills required by a system analyst

are:
 Communication: The analyst needs to be a very
good communicator to understand and communicate
to the user group as well as to the1echnical
specialists.
 Foresightedness and vision: The analyst must have
foresight and vision, so that they can factor in the
future requirement of the users even if they have not
factored that in the design
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 Systems Analyst Need
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 The interpersonal skills required by a system analyst

are:
 Adaptability and flexibility skills: The analyst may be
new to the environment of the particular business but
he/she has to be quick on the uptake and adapt fast to
the culture and environment of the organization.
 Selling: The analyst needs to have flair to sell their ideas
and solutions to the users.
 Patience and rationality: The analyst needs to be patient
and rational so that he/she do not rush to a solution

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 Systems Analyst Need
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 Sound temperament: The analyst needs to remain calm in

the face of adverse situations.
 Management skills: These skills are an absolute necessity
for any analyst. The system analyst has to deliver in spite
of several constraints hence they must have good
management skills to manage time and resources at their
disposal.

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 Systems Analyst Need
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 Management skills
 Time management skills.
 Project management skills..

 Man management skills.

 Team management skills.

 Organizing and directing skills.

 Negotiation skills.

 Leadership quality:.

 Training and documentation capability:.

 Presentation skills: Module 4 / 92

 Systems Analyst Need
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 Technical skills required by the system analyst are:

 Creativity: This skill will ensure that the analyst can give
the users novel technical solutions for the same problem.
 Problem solving: This skill will help the analyst form a
systems approach to problem solving so that they are
able to structure a problem even when there is none.
 Technical knowledge: The analyst needs to have
concrete knowledge in the technical domain so that they
are able to generate alternative solutions to problem.

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 Systems management
60

 Systems management refers to enterprise-wide

administration of distributed systems including (and
commonly in practice) computer systems.
 Systems management is strongly influenced by
network management initiatives in
telecommunications.

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 Application performance
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management (APM)
 Application performance management (APM)
technologies are now a subset of Systems
management.
 Maximum productivity can be achieved more
efficiently through event correlation, system
automation and predictive analysis which is now all
part of APM
 Centralized management has a time and effort
trade-off that is related to the size of the company,
the expertise of the IT staff, and the amount of
technology being used Module 4 / 92
 Application performance
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management (APM)
 Small business or startups may not need automation
 Large business with thousands of similar employee
computers may clearly be able to save time and
money, by systems management automation..
 Systems management may involve one or more of
the following tasks:
 Hardware inventories.
 Server availability monitoring and metrics.

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 Application performance
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management (APM)
 Software inventory and installation.
 Anti-virus and anti-malware.

 User's activities monitoring.

 Capacity monitoring.

 Security management.

 Storage management.

 Network capacity and utilization monitoring

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 Systems management
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responsibilities
 Determining organizational equipment and software
requirements
 Purchasing equipment
 Hardware and software training
 Distribution, setup and monitoring of equipment and
users
 Maintenance and service, upgrades, replacements
and security
 Determining whether progress is served or hindered
by assigned equipment and software
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 System Management Direction
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 However with outsourcing and cloud computing

services, the role of in house system management is
vanishing.
 Use of BIG DATA
 Reliable, quick-access distributed DBs
 Large amounts of data

 Data replication

 Automatically allocates data across multiple servers

 Horizontal scalability: Simply add commodity servers

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 Cloud Service models
66

 Data (DaaS): Retrieve DB data from

cloud provider
 Software (SaaS): Provider runs own
applications on cloud infrastructure.
 Platform (PaaS): Consumer provides
apps; provider provides system and
development environment.
 Infrastructure (laaS): Provides
customers access to processing,
storage, networks or other
fundamental resources

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 Relationship between project managers
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and line managers

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 Project and Line Managers
68

Organisation Project Manager Line Manager

Functional / Very Little Role or Authority Full Management Role and Authority
Weak Matrix
Balanced Part-time and little formal Full management role, does
Matrix authority, provides some input performance reviews with input from
to performance reviews project managers, resources usually
spend most of their time on
operational work and a little time or
temporary full-time on projects as
they occur.

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 Project and Line Managers
69
Organisation Project Manager
Strong Matrix Full-time and at least as
much formal authority as
line manager if not more
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Line Manager
Role is mostly to support project
staff.
You may see line managers
being split out by job skills ...
engineering team, software
development team, support
team, etc.
 Project and Line Managers
70

Organisation Project Manager Line Manager

Projectized Employees report Role may be transferred to
directly, full authority. the project manager. If
they still exist, they are
focused mostly on staffing
coordination and planning,
taking input from projects
and ensuring staff are
covered adequately in the
future..

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 Division of responsibility and authority
71
among team members

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 Responsibility Assignment Matrix
72
(RAM) or (RACI)
 A Responsibility Assignment Matrix (RAM), also known
as RACI describes the participation by various roles in
completing tasks or deliverables for a project or
business process.
 RACI is an acronym derived from the four key
responsibilities most typically used: Responsible,
Accountable, Consulted, and Informed
 Used for clarifying and defining roles and
responsibilities in cross-functional or departmental
projects and processes
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 Key responsibility roles in RACI
73
model
 Role distinction
 Distinction between a role and individually identified
people:
 a role is a descriptor of an associated set of tasks;

 it may be performed by many people; and one person can

perform many roles.
 For example, an organization may have ten people who can
perform the role of project manager, although each project
only has one project manager at any one time;
 Person who is able to perform the role of project manager
may also be able to perform the role of business analyst
and tester.in another project
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 Key responsibility roles in RACI
74
model
 R = Responsible (also Recommender)
 Those who do the work to complete the task
 There is at least one role with a participation type of
responsible, although
 Others can be delegated to assist in the work required

 A = Accountable (also Approver or final approving

authority)
 The one ultimately answerable for the correct and
thorough completion of the deliverable or task

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 Key responsibility roles in RACI
75
model
 A = Accountable (also Approver or final approving
authority)
 the one who ensures the prerequisites of the task are met
and who delegates the work to those responsible.
 Accountable must sign off (approve) work that
responsible provides. There must be only one accountable
specified for each task or deliverable

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 Key responsibility roles in RACI
76
model
 C = Consulted (sometimes Consultant or counsel)
 Opinions are sought, typically subject matter experts; and
with whom there is two-way communication
 I = Informed (also Informee)
 Those who are kept up-to-date on progress, often only on
completion of the task or deliverable; and with whom
there is just one-way communication

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 Key responsibility roles in RACI
77
model
 Very often the role that is Accountable for a task or
deliverable may also be Responsible for completing
it (indicated on the matrix by the task or deliverable
having a role accountable for it, but no role
responsible for its completion, i.e. it is implied).
 Generally recommended that each role in the project
or process for each task receive, at most, just one of
the participation types.

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 Creating a RACI Matrix
78

Assigning people to facilities

 The matrix is typically created with a vertical axis

(left-hand column) of tasks (from a work breakdown

structure) or deliverables (from a product breakdown
structure), and a horizontal axis (top row) of roles
(from an organizational chart).

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 Typical RACI
79

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 Typical RACI
80

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