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Chapter Outline

• 3.1 Project Management Structures

• 3.2 Project Management Office (PMO)
• 3.3 What Is the Right Project Management Structure?
• 3.4 Organizational Culture
• 3.5 Implications of Organizational Culture for Organizing Projects
Chapter Three
Organization: Structure and
Culture

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3.1 Project Management Structures Organizing Projects within the Functional Organization

• Three different project management structures are: • Top management decides to implement the project, and different
1. Functional organization segments of the project are distributed to appropriate areas.
2. Dedicated project teams • Coordination is maintained through normal management channels.
3. Matrix structure • It is commonly used when one functional area plays a dominant role in
▫ Weak matrix completing the project or has a dominant interest in the success of the
▫ Balanced matrix project.
▫ Strong matrix
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Advantages and Disadvantages of using Functional Organization to
Functional Organizations
Administer and Complete projects

• Advantages • Disadvantages
1. No change 1. Lack of focus
2. Flexibility 2. Poor integration
3. In-depth expertise 3. Slow
4. Easy post-project transition 4. Lack of ownership

• FIGURE 3.1

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Organizing Projects as Dedicated Teams Dedicated Project Team

• Dedicated project teams operate as units separate from the rest of the parent
organization.

• 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.

• FIGURE 3.2
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Projectized Organization Structure 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 expertise
4. Cross-functional integration 4. Difficult post-project transition

• FIGURE 3.3

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Organizing Projects within a Matrix Arrangement Matrix Organization Structure

• 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.

• FIGURE 3.4
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Division of Project Manager and Functional Manager Responsibilities in
Different Matrix Forms
a Matrix Structure

• Weak matrix
• 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.

• TABLE 3.1

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Different Matrix Forms (Continued) Different Matrix Forms (Continued)

• Balanced matrix • Strong matrix

• 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.
• 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.
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Advantages and Disadvantages of Matrix Management 3.2 Project Management Office (PMO)

• Advantages • Disadvantages • Is a centralized unit within an organization or a department that oversees

1. Efficient 1. Dysfunctional conflict and supports the execution of projects.
2. Strong project focus 2. Infighting • Plays a critical role in helping matrix systems mature into more effective
3. Easier post-project transition 3. Stressful project delivery platforms.

4. Flexible 4. Slow • Can be characterized in different kinds:

▫ Weather station—tracks and monitors project performance.
▫ Control tower—improves project execution.
▫ Resource pool—provides the organization with a cadre of trained project
managers and professionals.
▫ Command and control center—has direct authority over the project.

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3.3 What Is the Right Project Management Structure? 3.4 Organizational Culture

• Organization Considerations • Organizational Culture Defined

• How important is the project management to the success of the firm?
• Is a system of shared norms, beliefs, values, and assumptions that blinds
▫ What percentage of core work involves projects?
• What level of resources are available?
people together, thereby creating shared meanings.

• Project Considerations • Reflects the “personality” of the organization.

• Size of project • Performs several important functions in organizations.
• Strategic importance ▫ Provides a sense of identity for its members
• Novelty and need for innovation
▫ Helps legitimize the management system
• Need for integration (number of departments involved)
▫ Clarifies and reinforces standards of behavior
• Environmental complexity (number of external interfaces)
▫ Helps create social order
• Budget and time constraints
• Stability of resource requirements
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Key Dimensions Defining an Organization’s Culture 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.

• FIGURE 3.5

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Organizational Culture Diagnosis Worksheet 3.5 Implications of Organizational Culture for Organizing Projects

• 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.

• FIGURE 3.6
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Cultural Dimensions of an Organization Supportive of Project Management

Planner
…. Egnineer
Project team
A team of people Project Accounting
designer
who work manager staff

together to attain
the objective Worker
Purchasing
secretary
staff

Project structure

• FIGURE 3.7

28

27

Group

• Have common objectives

• Do individual tasks
• Individual achievement
Goals of a project team
– Ensure project schedule
– Support each other
“Group” & “Team” Team
– Create motivations

• Share common objectives – On-budgect

• Do collaborative tasks – ……..
• Team achievements
• Create measurable and specific
outputs
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Advantages Forming (hình thành)

Objectives? Action plan?
- Improve results
- Enhance creativity Storming (Sóng gió):
conflicts between members due to
- Reduce tension and conflicts different reasons such as working style,
behavior, controversy over problems or
- Solve problems effectively solutions, culture, …

- Enhance morality, caring, and trust Norming (ổn định):

- Take on the challenge Stages of forming Start accepting each other, accept
differences, try to resolve conflicts,
Teamwork recognize the strengths of other
a team members, and respect each other

Disadvantages Performing (hoạt động hiệu

quả):
The team achieves the highest
- Time and effort consuming efficiency at work. Collaboration is
easy without any conflict.
- Slow decision-making
- Separate a team from the "Mother" organization
Adjourning (thoái trào):
- Factional formation
Prioritize completing the remaining
tasks and disbanding the group

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• Members <10.
• Members voluntarily participate in the
project.
• Members join from the beginning to
the end of the project. Leader Member
• Team members join the full-time style skills
A successful project. Factors for
• Collaborative organizational culture &
project team mutual trust. Effective Team
• Members report directly to the project Organization
leaders. structure
• Work content is publicly reported
within the team.
• Unity of goals. Effective communication is a
critical factor for building an
effective team
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CONFLICT
Effective
communication The conduct of an individual,
group or organization • Types of conflicts
• Listening intended to prevent or ▫ Individual: between one person
▫ Attitude: caring, paying limit (at least temporarily) and another
attention, respecting an individual, group or ▫ Group: between 2 or more
▫ Body language: Listen with other organization from groups/organizations
your eyes, do not interrupt achieving the desired
purpose
▫ Coming from within: between
other people's speech people or groups within the same
▫ Focus: content, feeling organization
• Conflict management ▫ Coming from outside: conflict
between 1 person (or 1 group or
more people) and 1 person (or 1
group or more people from
outside the project

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OLD PERSPECTIVE OF CONFLICT

• Make potential problems appear
• Conflict is a bad sign and be solved
• Find ways to avoid conflict • Forcing people to take a stand
• The conflict is caused by the mistake of - Functional Conflict and look for new ways
management
• Conflict need to be eliminated
• Enabling people to challenge their
abilities

NEW PERSPECTIVE OF CONFLICT

• Unavoidable conflicts  need to confront

conflicts
• Efficiency and productivity decline
• Many different causes cause conflicts - Dysfunctional
• Conflict can be bad, it can be good • Factionalism
Conflict
• Conflicts need to be managed & controlled • Unnecessary ins
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• Information exchange
Conflict management
▫ Purposes
▫ Principles/standards Acceptance • No action
▫ Influences
• Values
• Focus on the • Solutions to satisfy
▫ Individual Negotiation similarity both
▫ Profession
▫ Locality/Country/Creed
Causes of conflicts • Concerns • Reduce the intensity of conflict by defusing
differences, and rearranging (if possible) so
Reconciliation
▫ Different ideas and beliefs that the two parties do not have to work
together.
▫ Concerns about results
• Human being
Rules • Following
▫ Personality rules/law
▫ Sentimental
▫ The problem of past conflicts has
• Remove the
not been resolved Facing sources of
conflicts