05. Project And Organizational Structure
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Chapter 05 of ICT Project Management of IOE Engineering syllabus. This is an educational purposed slides. This chapter provides knowledge about system view of project management,functional organization, matrix organization ...and more.Provided by Project Management Sir of KU.
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05. Project And Organizational Structure
- 1. 5. Project and Organizational Structure
- 2. Projects Cannot Be Run In Isolation • Projects must operate in a broad organizational environment • Project managers need to use systems thinking: – taking a holistic view of carrying out projects within the context of the organization • Senior managers must make sure projects continue to support current business needs
- 3. A Systems View of Project Management • A systems approach emerged in the 1950s to describe a more analytical approach to management and problem solving • Three parts include: – Systems philosophy: an overall model for thinking about things as systems – Systems analysis: problem-solving approach – Systems management: address business, technological, and organizational issues before making changes to systems
- 4. Three Sphere Model for Systems Management The simple idea of addressing the three spheres of system management can have huge impact on selecting and managing project successfully sample of business, organizational, and technological issues that could be factors in the tablet project.
- 5. The Four Frames of Organizations • The systems approach requires that project managers always view their projects in the context of the larger organization. Organizational issues are often the most difficult part of working on and managing projects. – People believe that most projects fail because of company politics. Project managers often do not spend enough time identifying all the stakeholders involved in projects, especially the people opposed to the projects. Also, project managers often do not spend enough time considering the political context of a project or the culture of the organization. – To improve the success rate of IT projects, it is important for project managers to develop a better understanding of people as well as organizations.
- 6. The Four Frames of Organizations
- 7. What Went Wrong In a paper titled “A Study in Project Failure,” two researchers examined the success and failure of 214 IT projects over an eight-year period in several European countries. The researchers found that only one in eight (12.5 percent) were considered successful in terms of meeting scope, time, and cost goals. The authors said that the culture within many organizations is often to blame Among other things, people often do not discuss important leadership, stakeholder, and risk management issues
- 8. Organizational Structure Consists of three key elements: 1. Designates formal reporting relationships – number of levels in the hierarchy – span of control 2. Groupings of: – individuals into departments – departments into the total organization 3. Design of systems for – effective communication – coordination – integration across departments
- 9. Forms of Organizational Structure • Functional organizations – group people performing similar activities into departments • Project organizations – group people into project teams on temporary assignments • Matrix organizations – create a dual hierarchy in which functions and projects have equal importance
- 11. Functional Structures for Project Management Strengths Weaknesses 1. Firm’s design maintained 2. Promotes development of in-depth knowledge 3. Standard career paths 4. Project team members remain connected with their functional group 1. Functional siloing (isolating from others) 2. Lack of customer focus 3. Projects may take longer 4. Projects may be sub- optimized due to varying interest or commitment across functional boundaries
- 13. Structure of a Project-Based Organization Corporation X Marketing Human Resources Finance and Administration Legal Project Manager (Project A) Project Manager (Project B) Engineering Manufacturing Procurement Engineering Subcontractors (X, Y, Z) Manufacturing Procurement Other Projects Other Projects
- 14. Project Structures for Project Management Strengths Weaknesses 1. Project manager sole authority 2. Improved communication 3. Effective decision-making 4. Creation of project management experts 5. Rapid response to market 1. Expensive to set up and maintain teams 2. Chance of loyalty to the project rather than the firm 3. No pool of specific knowledge 4. Workers unassigned at project end
- 16. Matrix Structures for Project Management Strengths Weaknesses 1. Suited to dynamic environments 2. Equal emphasis on project management and functional efficiency 3. Promotes coordination across functional units 4. Maximizes limited resources 1. Dual hierarchies mean two bosses 2. Negotiation required in order to share resources 3. Workers caught between competing project & functional demands
- 17. Different matrix forms • Weak form – The authority of the functional manager predominates and the project manager has indirect authority • Balanced form – The project manager sets the overall plan and the functional manager determines how work to be done • Strong form – The project manager has broader control and functional departments act as subcontractors to the project
- 18. The Functional (“Weak”) Project Matrix Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff Project CoordinationProject Coordination
- 19. The Balanced Project Matrix Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager StaffStaff PMPM StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff Project CoordinationProject Coordination
- 20. The (Strong) Project Matrix Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff StaffStaff Project CoordinationProject Coordination Manager of Project Mgrs Manager of Project Mgrs Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager
- 21. Virtual Projects • Project team crosses time, space, organizational, or cultural boundaries • Facilitated by the use of the Internet • Often organized as a matrix
- 22. Virtual Project Rules • Challenging and interesting projects • Use volunteers • Include few people who know each other • Create an online resource to learn about each another • Encourage frequent communication • Divide work into independent modules
- 23. Organizational Structure and its Influences on Projects