Projects are part of an organization that is larger than the project. Even when the project is external (joint ventures, partnering), the project will still be influenced by the organization. The maturity of the organization with respect to its project management system, culture, style, organizational structure and project management office can also influence the project. Most organizations have developed unique and describable cultures. These cultures are reflected in numerous factors, including Shared values, norms, beliefs, and expectations, Policies and procedures, View of authority relationships or Work ethic and work hours. Organizational cultures often have a direct influence on the project. For example: A team proposing an unusual or high-risk approach is more likely to secure approval in an aggressive or entrepreneurial organization A project manager with a highly participative style is apt to encounter problems in a rigidly hierarchical organization, while a project manager with an authoritarian style will be equally challenged in a participative organization.
The structure of the performing organization varies from functional to projectized, with a variety of matrix structures in between, as in table above. The classic functional organization , is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, IT, and accounting at the top level. When new product development is undertaken (for example a new TV news show is prepared to be launched) in a purely functional organization, the production phase includes only the production department staff. Then, when questions about broadcasting arise, they are passed up the organizational hierarchy to the department head, who consults with the head of the broadcasting department. The answer is given down the hierarchy to the production functional manager. At the opposite end of the spectrum is the projectized organization , where team members are often collocated. Most of the organization’s resources are involved in project work, and project managers have a great deal of independence and authority. Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects. Most modern organizations involve all these structures at various levels. For example, even a fundamentally functional organization may create a special project team to handle a critical project. Such a team may have many of the characteristics of a project team in a projectized organization. The team may include full-time staff from different functional departments, may develop its own set of operating procedures and may operate outside the standard, formalized reporting structure.
Each team (actually each individual) has its own way of: Solving problems and meeting challenges Getting work done Communicating Learning Dealing with conflict Interacting with other groups Marking successes and dealing with disappointments and its own practices and values regarding: Centralization Formalization Organizational hierarchy Decision making process communication Suggestions: Do not make improvements too soon Spend time learning about the group ’ s culture Meet your team (individually and collectively) Avoid predetermined assumptions about a new group
Understanding Organizational Influences on a Project Chapter III
Projects are part of an organization that is larger than the project
Organizational structure, etc
Organizational Structures Organizational structure Project Characteristics Functional Matrix Projectized Week Matrix Balanced Matrix Strong Matrix Project Manager’s Authority Little to none Limited Low to Moderate Moderate to High High to almost Total Resource Availability Little to none Limited Low to Moderate Moderate to High High to almost Total Who Controls the project budget Functional Manager Functional Manager Mixed Project Manager Project Manager Project Manager’s Role Part -time Part -time Full-time Full-time Full-time Project Management Administrative Staff Part -time Part -time Part -time Full-time Full-time