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Chapter 4
Project Organization
Growth of Project Oriented
Organizations
There are many reasons for the rapid
growth, but most of them can be grouped
in four general areas:
Speed and market responsiveness have
become absolute requirements for successful
competition
The development of new products, processes,
or services regularly requires input from diverse
areas of specialized knowledge
Chapter 4-1
Growth of Project Oriented
Organizations
Chapter 4-8
Pure Project Organization
Disadvantages of a pure project organization
(cont.)
Pure project groups seem to foster inconsistency in the
way in which policies and procedures are carried out
In a pure project organization, the project takes on a life
of its own
There tends to be concern among team members about
“life after the project ends”
Chapter 4-9
The Matrix Organization
The matrix organization is a combination of
functional and pure project
A matrix organization can take on a wide variety
of specific forms
“Project” or “strong” matrix organization most
resembles the pure project organization
The “coordination” or “functional” or “weak” matrix
most resembles the functional form
The “balanced” matrix lies in between the others
Chapter 4-10
The Matrix Organization
Chapter 4-11
The Matrix Organization
As with other organizational forms, the matrix
organization has its own unique advantages:
The project is the point of emphasis
Because the project is overlaid on the functional
divisions, the project has reasonable access to the
reservoir of technology in all areas
There is less anxiety about what happens when
the project is completed
Chapter 4-12
The Matrix Organization
Advantages of a Matrix (cont.)
Response to client’s needs is as rapid as in the pure
project organization
Matrix management gives the project access to
representatives from the administrative units of the
parent firm
The matrix organization allows a better company-
wide balance of resources to achieve goals
There is a great deal of flexibility in precisely how
the project is organized within the matrix
Chapter 4-13
The Matrix Organization
There are also disadvantages to using the
matrix organization; most involve conflict
between the functional and project managers:
The balance of power between the project and
functional areas is very delicate
The movement of resources from project to
project may foster political infighting
Problems associated with shutting down projects
can be as severe as in a pure project organization
Chapter 4-14
The Matrix Organization
Chapter 4-15
Mixed Organizational Systems
Divisionalization is a means of dividing a large
organization into smaller more flexible units
This enables the parent organization to
capture some of the advantages of small,
specialized organizational units while retaining
some of the advantages that come with larger
size units
Chapter 4-16
Mixed Organizational Systems
Pure functional and pure project organizations
may coexist in a firm
Chapter 4-17
Mixed Organizational Systems
Advantages of a mixed organization:
The hybridization of the mixed form leads to flexibility
The firm is able to meet special problems by appropriate
adaptation of its organizational structure
Disadvantages include:
Dissimilar groupings within the same accountability center
tend to encourage overlap, duplication, and friction
because of incompatibility of interests
Conditions still exist that result in conflict between
functional and project managers
Chapter 4-18
Choosing an
Organizational Form
Selecting the organizational interface between the
project and the firm is a difficult task
The choice is determined by the situation, but is also partly
intuitive
Must consider the nature of the potential project, the
characteristics of the various organization options, the
advantages and disadvantages of each, the cultural
preferences of the parent organization, and then make the
best compromise that can be made
Chapter 4-19
Choosing an
Organizational Form
Criteria for the selection of a project organization:
1. Define the project with a statement of the objective(s)
that identifies the major outcomes desired
2. Determine the key tasks associated with each objective
and locate the units in the parent organization that
serve as functional “homes” for these types of tasks
3. Arrange the key tasks by sequence and decompose them
into work packages
Chapter 4-20
Choosing an
Organizational Form
Criteria for the selection of a project organization
(cont.):
4. Determine which organizational units are required to
carry out the work packages and which units will
work particularly closely with which others
5. List any special characteristics or assumptions
associated with the project
6. In light of items 1-5, and with full cognizance of the
pros and cons associated with each structural
form, choose a structure
Chapter 4-21
The Project Team
To staff a project, the project manager works from
a forecast of personnel needs over the life cycle of
the project
A work breakdown structure (WBS) is prepared to
determine the exact nature of the tasks required to
complete the project
Skills requirements for these tasks are assessed and like
skills are aggregated to determine work force needs
From this base, the functional departments are contacted
to locate individuals who can meet these needs
Certain tasks may be subcontracted
Chapter 4-22
The Project Team
There are some people who are more critical to
the project’s success than others and should
report directly to the project manager or the
project manager’s deputy:
Senior project team members who will be having a
long-term relationship with the project
Those with whom the project manager requires
continuous or close communication
Those with rare skills necessary to project success
Chapter 4-23
Human Factors and the
Project Team
Meeting schedule and cost goals, without
compromising performance is a technical
problem, with a human dimension
Project professionals tend to be perfectionists
Pride in workmanship leads the team member to
improve (and thus change) the product
These changes cause delays in the project
Chapter 4-24
Human Factors and the
Project Team
Motivating Project Team Members:
The project manager often has little control over the
economic rewards and promotions of project team
members, but this does not mean he/she cannot
motivate members of the team
How are technical employees motivated?
Recognition
Achievement
The work itself
Responsibility
Advancement
The chance to learn new skills Chapter 4-25
Human Factors and the
Project Team
Empowerment of project teams is also a
motivational factor:
1. It harnesses the ability of the team members to
manipulate tasks so that project objectives are
met. The team is encouraged to find better ways of
doing things
2. Professionals do not like being micromanaged.
Participative management does not tell them
how to work but given a goal, allows them to
design their own methods
3. The team members know they are responsible and
accountable for achieving the project
Chapter 4-26
deliverables
Human Factors and the
Project Team
Advantages of Empowerment (cont.):
4. There is a good chance that synergistic solutions
will result from team interaction
5. Team members get timely feedback on their
performance
6. The project manager is provided a tool for
evaluating the team’s performance
Chapter 4-27
Interpersonal Conflict
The focus of conflict can often be related to the stage in
the project’s life cycle
When the project is first organized, priorities, procedures and
schedules all have roughly equal potential to cause conflict
During the buildup phase, priorities become significantly more
important than any other conflict factor
In the main program phase schedules are the most important
cause of conflict followed by technical disagreements
At the project finish, meeting the schedule is the critical issue
Chapter 4-28
Interpersonal Conflict
Conflict and the Project Manager
Most of the conflict on project teams is the result of
individuals focusing on the project through the eyes of
their individual discipline or department
Conflict avoiders do not make successful project
managers
On occasion, compromise appears to be helpful, but
most often, gently confronting and resolving the conflict
is the method of choice, for a win-win situation
Chapter 4-29
Summary
Chapter 4-32
Project Organization
Questions?
Chapter 4-33
Project Organization
Picture Files
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Figure 4-1
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Figure 4-2
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Figure 4-3
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Figure 4-4
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Figure 4-5
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Figure 4-7
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Figure 4-8
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Project Organization
Table Files
Project Organization
Project Organization