C3 Pro Organization ISB El

TOPIC 3
PROJECT ORGANIZATION AND

ISSUES IN PROJECT MANAGEMENT
Organizational structure of project
Building and managing teamwork
Leadership
Approaches to solve problems
Conflict management
L.O.1- Explain, distinguish concepts, processes, and

methods to solve problems in projects
Course instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, Ho Chi Minh city University of Technology
1
Where We Are Now
2
Instructor: Dr. Nguyen Thi Duc Nguyen 1

Project Management Structures
3

Challenges to Organizing Projects
The uniqueness and short duration of projects relative to
ongoing longer-term organizational activities
The multidisciplinary 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.
4

Three different project management structures are:
1.Functional organization
2.Dedicated project teams
3.Matrix structure
Weak matrix
Balanced matrix
Strong matrix
5
Organizing Projects within the Functional Organization
Top management decides to implement the project, and

different segments of the project are distributed to
appropriate areas.
Different segments of the project are delegated to respective

functional units.
Coordination is maintained through normal management

channels.
It is commonly used when the interest of one functional area

dominates the project or one functional area has a dominant
interest in the project’s success.
6

Functional Organizations
Advantages and Disadvantages of using Functional

Organization to Administer and Complete projects
• Advantages • Disadvantages
1. No Structural change 1. Lack of focus
2. Flexibility 2. Poor integration
3. In-depth expertise 3. Slow
4. Easy post-project 4. Lack of ownership

transition

Organizing Projects as Dedicated Teams
• Dedicated project teams operate as units separate:

• from the rest of the parent organization.
• under the leadership of a full-time project manager.
• A full-time project manager is designated to pull together a
core group of specialists who work full time on the project.
• The project manager recruits necessary personnel from
both within and outside the parent company.
• In a projectized organization where projects are the
dominant form of business, the entire organization is
designed to support project teams.
• “Projectitis” is referred to as a negative dimension to
dedicated project teams. A we-they attitude can emerge
between project team members and the rest of the
organization.
9
Dedicated Project Team
10

Strengths and Weaknesses of the Dedicated
Project Team Approach
• Strengths • Weaknesses
1. Simple 1.Expensive
2. Fast 2.Internal strife
3. Cohesive 3.Limited technological
4. Cross-functional expertise
integration 4.Difficult post-project

transition
11
Project Organizational Structure
12

Organizing Projects within a Matrix Arrangement
• Matrix management is a hybrid organizational form in which horizontal

project management structure is overlaid on the normal functional
hierarchy.
– There are usually two chains of command, one along functional lines and the
other along project lines.
– Project participants report simultaneously to both functional and project
managers.
• The matrix structure is designed to utilize resources optimally.
– Individuals work on multiple projects as well as being capable of performing
normal functional duties.
– It attempts to achieve greater integration by creating and legitimizing the
authority of a project manager.
– It provides dual focus between functional/technical expertise and project
requirements.
13
Matrix Organization Structure
14

Division of Project Manager and Functional
Manager Responsibilities in a Matrix Structure
Project Manager Negotiated Issues Functional Manager
What has to be done? Who will do the task? How will it be done?
When should the task be done? Where will the task be done?
How much money is available to Why will the task be done? How will the project involvement
do the task? 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?
15
Different Matrix Forms
Weak matrixーFunctional (also Weak or Lightweight) Form

•This form is very similar to a functional approach with the
exception that there is a formally designed project manager
responsible for coordinating project activities.
•Functional managers are responsible for managing their
segment of the project.
•The project manager acts as a staff assistant who draws the
schedules and checklists, collects information on the status
of the work, and facilitates project completion.
16

Different Matrix Forms (Continued)
Balanced matrixーBalance (or Middleweight) Form

•The project manager is responsible for defining what needs
to be accomplished. The project manager establishes the
overall plan for completing the project, integrates the
contribution of the different disciplines, set schedules, and
monitors progress.
•The functional managers are concerned with how it will be
accomplished. The functional managers are responsible for
assigning personnel and executing their segment of the
project according to the standards and schedules set by the
project manager.
17
Different Matrix Forms (Continued)
Strong matrixーStrong (Heavyweight) Form

•The project manager controls most aspects of the project,
including scope trade-offs and assignment of functional
personnel. The project manager controls when and what
specialists do and has final say on major project decisions.
•The functional managers have title over their people and are
consulted on a need basis. The functional managers serve
as subcontractors for the project.
18

Advantages and Disadvantages of Matrix Management
• Advantages • Disadvantages
1. Efficient 1. Dysfunctional conflict
2. Strong project focus 2. Infighting
3. Easier post-project transition 3. Stressful
4. Flexible 4. Slow
Course instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, Ho Chi Minh city University of Technology 19
Rated Manager Authority

of Different Project Structures by Type of Project
High FUNCTIONAL MATRIX PROJECTIZED
Project
Manager
Authority
Low
ERIC VERZUH
The spectrum of organizational styles

(ERIC VERZUH)
(Construction
(Utility companies)
companies)
20

Rated Effectiveness of Different Project Structures by
Type of Project
Source: Larson, E. W., and Gobeli, D. H., “Matrix Management: Contradictions and
Insights,” California Management Review, vol. 29, no. 4 (Summer 1987), p. 137.
21
Choosing the Appropriate

Project Management Structure
Organization Considerations
•How important is the project management to the success of the firm?
•What percentage of core work involves projects?
•What level of resources are available?
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 requirements
22

Project-oriented
Pure Functional Function-oriented (strong) Pure project
Structure (weak)
Structure
Structure
(One from the department
... (Project team supported
structure
committed to a project) by functions)
0 1 5 90 99 100
Mixed Technologies
Not a special organization Fast response needed
Sharing data ;sharing Cost saving Many technologies
resources Complicated
Few technologies Resources limited, unstable
Not complicated
23
Organizational Culture
24

Organizational Culture
Organizational Culture Defined

A system of shared norms, beliefs, values, and assumptions
which bind people together, thereby creating shared
meanings.
Reflects the “personality” of the organization. The
“personality” of the organization that sets it apart from
other organizations.
Performs several important functions in organizations.
• Provides a sense of identify to its members.
• Helps legitimize the management system of the organization.
• Clarifies and reinforces standards of behavior.
• Helps create social order
25
Key Dimensions Defining an Organization’s Culture
26

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.
27
Implications of Organizational Culture

for Organizing Projects
Challenges for Project Managers in Navigating

Organizational Cultures
• Project managers interact with:
– The culture of their parent organizations as well as the subcultures
of various departments.
– The project’s clients or customer organizations.
– Other organizations connected to the project such as suppliers and
vendors, subcontractors, consulting firms, government and
regulatory agencies, and community groups.
• “A riverboat trip” is a metaphor describing the relationship between
organizational culture and project management. Culture is the river
and the project is the boat.
28

Cultural Dimensions of an Organization Supportive
of Project Management
29
Mechanisms for Sustaining Organizational Culture
30

Managing
project team/conflicts
31
Characteristics of High-Performing Teams
1. Share a sense of common purpose
2. Make effective use of individual talents and expertise
3. Balance role and share tasks
4. Exert energy toward problem solving
5. Accept differences of opinion and expression
6. Encourage risk taking and creativity
7. Set high personal performance standards
8. Identify source of both professional and personal growth
32

The Five-Stage Team Development Model
The Punctuated Equilibrium Model

of Group Development
34

Situational Factors Affecting Team Development
• Conditions Favoring Development of High-Performing Project Teams

- There are 10 or fewer members per team.
- Members volunteer to serve on the project team.
- Members serve on the project from beginning to end.
- Members are assigned to the project full time.
- Members are part of an organization culture that fosters cooperation and trust.
- Members report solely to the project manager.
- All relevant functional areas are represented on the team.
- The project involves a compelling objective.
- Members are located within conversational distance of each other.
35
Creating a High-Performance Project Team

Building High-Performance Project Teams
Recruiting Project Members

Factors affecting recruiting
• Importance of the project
• Management structure used to complete the project
How to recruit?
• Ask for volunteers
Who to recruit?
• Problem-solving ability
• Availability
• Technological expertise
• Credibility
• Political connections
• Ambition, initiative, and energy
Recruiting Project Members
• Factors affecting recruitment

- The importance of the project
- The management structure being used to complete the project
• Considerations that need to be factored into the recruitment process
- Problem-solving ability
- Availability
- Technological expertise
- Credibility
- Political connections
- Ambition, initiative, and energy
- Familiarity
38

Conducting Project Meetings
- The first project team meeting—project kick-off meeting

- Establishing ground rules
- Planning decisions
- Tracking decisions
- Managing change decisions
- Relationship decisions
- Managing subsequent project meetings
Project Team Meetings
Managing
Establishing
Subsequent
Ground Rules
Meetings
Conducting
Relationship Planning
Decisions Project Decisions
Meetings
Managing Change Tracking

Decisions Decisions
40

Establishing Team Norms
- Confidentiality is maintained; no information is shared outside the

team unless all agree to it.
- It is acceptable to be in trouble, but it is not acceptable to surprise
others. Tell others immediately when deadlines or milestones will not
be reached.
- There is zero tolerance for bulling a way through a problem or an
issue.
- Agree to disagree, but when a decision has been made, regardless of
personal feelings, move forward.
- Respect outsiders, and do not flaunt one’s position on the project team.
- Hard work does not get in the way of having fun.
Establishing a Team Identity
- Effective use of meetings

- Co-location of team members
- Creation of project name
- Get the team to build or do something together early on
- Team rituals

Managing Conflict within the Project Team
Encouraging Functional Conflict

Encourage dissent by asking tough questions.
Bring in people with different points of view.
Designate someone to be a devil’s advocate.
Ask the team to consider an unthinkable alternative
Managing Dysfunctional Conflict

Mediate the conflict.
Arbitrate the conflict.
Control the conflict.
Accept the conflict.
Eliminate the conflict.
43
Conflict Intensity Over the Project Life Cycle
44

45

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TOPIC 3

PROJECT ORGANIZATION AND

L.O.1- Explain, distinguish concepts, processes, and

Where We Are Now

Instructor: Dr. Nguyen Thi Duc Nguyen 1

Project Management Structures

Instructor: Dr. Nguyen Thi Duc Nguyen 2

Three different project management structures are:

Organizing Projects within the Functional Organization

Top management decides to implement the project, and

Different segments of the project are delegated to respective

Coordination is maintained through normal management

It is commonly used when the interest of one functional area

Instructor: Dr. Nguyen Thi Duc Nguyen 3

Advantages and Disadvantages of using Functional

1. No Structural change 1. Lack of focus

2. Flexibility 2. Poor integration

3. In-depth expertise 3. Slow

4. Easy post-project 4. Lack of ownership

Instructor: Dr. Nguyen Thi Duc Nguyen 4

• Dedicated project teams operate as units separate:

Dedicated Project Team

Instructor: Dr. Nguyen Thi Duc Nguyen 5

2. Fast 2.Internal strife

3. Cohesive 3.Limited technological

integration 4.Difficult post-project

Project Organizational Structure

Instructor: Dr. Nguyen Thi Duc Nguyen 6

• Matrix management is a hybrid organizational form in which horizontal

Matrix Organization Structure

Instructor: Dr. Nguyen Thi Duc Nguyen 7

Project Manager Negotiated Issues Functional Manager

Different Matrix Forms

Weak matrixーFunctional (also Weak or Lightweight) Form

Instructor: Dr. Nguyen Thi Duc Nguyen 8

Balanced matrixーBalance (or Middleweight) Form

Different Matrix Forms (Continued)

Strong matrixーStrong (Heavyweight) Form

Instructor: Dr. Nguyen Thi Duc Nguyen 9

Rated Manager Authority

High FUNCTIONAL MATRIX PROJECTIZED

The spectrum of organizational styles

Instructor: Dr. Nguyen Thi Duc Nguyen 10

Choosing the Appropriate

Instructor: Dr. Nguyen Thi Duc Nguyen 11

committed to a project) by functions)

Instructor: Dr. Nguyen Thi Duc Nguyen 12

Organizational Culture Defined

Key Dimensions Defining an Organization’s Culture

Instructor: Dr. Nguyen Thi Duc Nguyen 13

• Study the physical characteristics of an

Implications of Organizational Culture

Challenges for Project Managers in Navigating

Instructor: Dr. Nguyen Thi Duc Nguyen 14

Mechanisms for Sustaining Organizational Culture

Instructor: Dr. Nguyen Thi Duc Nguyen 15

Characteristics of High-Performing Teams

1. Share a sense of common purpose

2. Make effective use of individual talents and expertise

3. Balance role and share tasks

4. Exert energy toward problem solving

5. Accept differences of opinion and expression

6. Encourage risk taking and creativity

7. Set high personal performance standards