Download as PPT, PDF, TXT or read online from Scribd
Download as ppt, pdf, or txt
You are on page 1/ 15
Student Version
CHAPTER THREE
Organization: Structure and Culture
McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Where Where We WeAre Are Now Now
32
Project Project Management Management Structures Structures 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.
33
Project Project Management Management Structures Structures Organizing Projects: Functional organization Different segments of the project are delegated to respective functional units. Coordination is maintained through normal management channels. Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the projects success.
34
Functional Functional Organization Organization of of Projects Projects Advantages 1. No Structural Change 2. Flexibility 3. In-Depth Expertise
Disadvantages 1. Lack of Focus 2. Poor Integration 3. Slow 4. Lack of Ownership
4. Easy Post-Project Transition
35
Project Project Management Management Structures Structures (contd) (contd) Organizing Projects: Dedicated Teams Teams operate as separate units under the leadership of a full-time project manager. In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
36
Project Project Organization: Organization: Dedicated Dedicated Team Team Advantages
Disadvantages
1. Simple
1. Expensive
2. Fast
2. Internal Strife
3. Cohesive
3. Limited Technological Expertise
4. Cross-Functional Integration
4. Difficult Post-Project Transition
37
Project Project Management Management Structures Structures (contd) (contd) Organizing Projects: Matrix Structure Hybrid organizational structure (matrix) is overlaid on the normal functional structure. Two chains of command (functional and project) Project participants report simultaneously to both functional and project managers.
Matrix structure optimizes the use of resources.
Allows for participation on multiple projects while performing normal functional duties. Achieves a greater integration of expertise and project requirements.
38
Different Different Matrix Matrix Forms 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.
39
Project Project Organization: Organization: Matrix Matrix Form Form Advantages
Disadvantages
1. Efficient
1. Dysfunctional Conflict
2. Strong Project Focus
2. Infighting
3. Easier Post-Project Transition
3. Stressful 4. Slow
4. Flexible
310
Choosing Choosing the the Appropriate Appropriate Project Project Management Management Structure Structure Organization (Form) Considerations How important is the project to the firms success? What percentage of core work involves projects? What level of resources (human and physical) are available?
311
Choosing Choosing the the Appropriate Appropriate Project Project Management Management Structure Structure (contd) (contd) 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 312
Organizational Organizational Culture Culture Organizational Culture Defined A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings. The personality of the organization that sets it apart from other organizations. Provides a sense of identify to its members. Helps legitimize the management system of the organization. Clarifies and reinforces standards of behavior.
313
Identifying Identifying Cultural Cultural Characteristics 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.
