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Lecture III IV

The document discusses different organizational structures for project management: [1] Functional structures separate departments by specialty and give managers authority over resources. This allows skills to develop but limits project managers' authority and can cause resource conflicts. [2] Projectized structures dedicate all resources to projects and give project managers full control. This streamlines projects but leaves staff without work when projects end. [3] Matrix structures balance functional and project needs by having staff report to both functional and project managers. Variations range from weak matrices that are mostly functional to balanced and strong matrices that give more power to project managers.

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132 views5 pages

Lecture III IV

The document discusses different organizational structures for project management: [1] Functional structures separate departments by specialty and give managers authority over resources. This allows skills to develop but limits project managers' authority and can cause resource conflicts. [2] Projectized structures dedicate all resources to projects and give project managers full control. This streamlines projects but leaves staff without work when projects end. [3] Matrix structures balance functional and project needs by having staff report to both functional and project managers. Variations range from weak matrices that are mostly functional to balanced and strong matrices that give more power to project managers.

Uploaded by

api-3731916
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Lecture – III

PROJECT MANAGEMENT

UNDERSTANDING ORGANIZATIONAL STRUCTURES

Different organizational structures determine the level of


authority senior management is willing to delegate to Project
Managers.

1. FUNCTIONAL ORGANIZATIONAL

• Oldest style of organizational therefore known as


Traditional approach to organizing business.
• Are centered by specialties & grouped by
functions; the organization might have a HR
department, a marketing department, a
manufacturing department, finance department etc.
• Specialized HR skill sets to perform unique
departmental function.
• Hierarchy: Staff –managers, managers-departmental
heads, departmental heads – VP, VP-CEO.
• A strict chain of command may exist.[e.g. Don’t talk
to the big boss without talking to your --]
• Each department is managed independently &
enjoys limited span of control. Marketing dose not
run finance department or their project, BUT incase
marketing department need financial
Information, chain of command is fallowed, Manager
Marketing talk to the Manager Finance, gets the
relevant information & pass it back to project team.

ADVANTAGES & DISADVANTAGES

Advantages:
a) Enduring Organizational Structure.
b) Clear upwards Career paths with separation of
functions allows specialty skills to flourish.
c) People with similar skills and experience are easier to
manage as a group.
d) Assignments distributed to those, best suited for the
task.
e) One supervisor with a clear chain of command.

1
Disadvantages:
a) Project manager has little to no formal authority, [VP
holds the control].
b) Multiple projects compete for limited resources &
priorities.
c) Project team members are loyal to the functional
managers.

2. PROJECTIZED ORGANIZATION

• Nearly the opposite of Functional organization.


• Focus of this type of organization is Project itself.
• PM reports directly to CEO.
• PM acquire & assign resources for the project.
• Support Departments like HR & Finance might
report directly to PM.
• Team members report directly to the PM not their
functional manager.
• At the end of project team is dissolved, & project
members return to their functional areas to resume
their duties.

ADVANTAGES & DISADVANTAGES

Advantages:
a) Organizational resources are purely dedicated to
projects & project work.
b) Collocated [physically work at the same location],
build collective team work.
c) Team members develop loyalty to the project not to
the functional manager.
d) PM almost have ultimate authority over the project.

Disadvantages:
a) Project team members may find themselves out of
work at the end of
the project.
b) Highly specialized skills can be useful at one time
but might be idle
during other time in the project.
----------------------------

2
Lecture-4

3. MATRIX ORGANIZATION

Minimize the differences between & take advantages of , the


strengths & weaknesses of functional and Projectized
organizations. The idea at play here is that the best of both
organizations can be achieved by combining them into one.

• While maintaining the hierarchical structure in the


organization objectives are fulfilled and good project
management techniques are utilized.
• Employees report to one functional manager and at least
one project manager.
• Functional managers pick up the administrative
positions and assign employees to projects.
• Functional managers also monitor the work of their
employees.
• Functional managers & PM’s share the responsibility of
performance reviews for the employees.
• Functional manager assign employees to the project
while, PM assigns the tasks to the employees.
• Balance of power is maintained due a lot of
communication & negotiation between project manager
& the functional manager.

Strong Matrix Organization

3
• Balance of power rests with the PM’s. They can press
Functional managers to give the best of their resources for
the project.
• Sometimes more resources then necessary are assembled

Week Matrix Organization:

• Functional managers have all the powers in this matrix,


project managers are really project coordinator or
expeditors with part time responsibilities on project
• Project managers have little or no authority on the
project
• Functional managers enjoy a lot of authority and make
all the work assignments.

Balance Matrix Organization:

• In between week matrix & strong matrix is an


organizational structure called the balance matrix.
• Power is balanced between project managers and the
functional managers.
• Employees get assigned to the project based on the
needs of the project NOT the strength & weakness of the
manager’s position.
• PM reports to functional manager but share power &
authority.

COMPARING MATRIX STRUCTURE

Weak Matrix Balance Matrix


Strong Matrix

Project Project Project Project


manager’s coordinator, manager manager
Title: project leader

4
or project
expeditor
Project Split focus Projects & Projects &
manager’s between project work project work
Focus: project &
functional
responsibilities
Project Minimal Balance of Full authority &
manager’s authority & authority & power
Power: power power
Project Part time on Full time on Full time on
manager’s projects projects projects
Time:
Organization Most like Blend of both Most like a
Style: functional weak & strong projected
organization matrix organization
Project Functional A functional Manager of
manager manager manager, but project
Reports to: shares managers
authority &
power

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