SOFTWARE DEVELOPMENT PROJECT

MANAGEMENT
(CSC4125)

Organizational Structure Types

Project Constraints

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 Lecture Outline
• Organizational Structure Types
– Functional organization
– Matrix Organization
– Projectized Organization

• Project Constraints
– Time
– Cost
– Scope
– Resources
– Quality
– Risk

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 Types of Organizational Structures
• Organizational structure is an enterprise environmental
factor, which can affect the availability of resources and
influence how projects are conducted.
• Three major types of organizational structures:
1) Functional organization
2) Matrix Organization
3) Projectized Organization

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 Types of Organizational Structures
1) Functional Organization
• A classical hierarchy in which each employee
has one clear superior.
• Full authority to Functional Managers.
• Project Managers don’t have the authority to
make major decisions on projects.
• The teams working on the project don’t reply
directly to the PM.
• The teams are in departments, and the PM
needs to “borrow” them for the project.

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 Types of Organizational Structures
1) Functional Organization (cont.)
• PMs don’t set the budget.
• PMs need to clear major decisions with department
managers
• PMs spend half their time doing admin tasks.
– All of the project work typically happens within a
particular department, and that department’s
manager is completely in charge of everything
• PM are assistants to FM in getting the work done.

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 Types of Organizational Structures
2) Matrix Organization : A matrix organization is a
blended organizational structure.
– Reflect a blend of functional and projectized characteristics
• Matrix organizations can be divided into three
categories (depending on the relative level of power
and influence between functional manager and
project manager) –
a) Weak Matrix Organization
b) Balanced Matrix Organization
c) Strong Matrix Organization

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 Types of Organizational Structures
a) Weak Matrix Organization:
• PMs have some authority but they aren’t in charge of the
resources on a project
• Major decisions still need to be made with the FM’s
cooperation or approval
• Project Expeditors can work in weak matrix organizations.
 Project Coordinators are like Expeditors, except that coordinators
typically report to higher-level managers and have some decision-
making ability. Expeditors have no authority at all.
• Advantage – PM gets some authority to manage the project
• Disadvantage – FM can see PM as a threat and cause conflict

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 Types of Organizational Structures
b) Balanced Matrix Organization:
• Shared authority between PM and FM
• PMs run their people-management decisions by the FM, but
the FM runs his project decisions by the PM too.
– Folks who work in a balanced matrix organization
report to a PM and a FM equally
• Advantage – PM and FM share the responsibility of the
project
• Disadvantage – PM and FM can be confused about who
manages what

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Types of Organizational Structures
c) Strong Matrix Organization:
• Have full-time PM with considerable authority and
full-time project administrative staff
• PM has more authority than FM, but the team still
reports to both managers
• The team might be judged based on performance
on their projects, as well as on their functional
expertise.

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 Types of Organizational Structures
3) Projectized Organization
• There is no defined hierarchy.
• PM has full authority to staff and manage the project
• Teams are organized around projects
– PM choose the team members, and release them
when the project is over
– Contractors/consulting companies are usually
organized like this
• The team reports to the PM
• PM estimates and tracks budget and schedule
• PM is responsible for the success or failure of the
project

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 Types of Organizational Structures
3) Projectized Organization (cont.)
• At the start of every project, a set of developers are assigned
to it.
• It is assumed that the assigned members can carry out various
activities required for project completion. The developers
remain with the project till the completion of the project.
• Same team carries out all the project activities.
• Advantage – The PM has full authority to staff & manage the
project
• Disadvantage –The PM holds accountability for the project

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Project Coordinator vs. Project Expeditor

 Difference between Project Coordinator(PC) and Project

Expeditor(PE):
• PE keeps track of status but has no decision-making
authority on a project at all
• PC has similar duties, but does get to make some of the
minor decisions on the project without having to run them
by the functional manager
• PC reports to higher authority
• PE are more like assistants to FM
• Both of them exists is Weak-Matrix Organizations

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 How Teams are structured in
Functional and Projectized Organization?
 In a Functional Organization,
– Developers are divided into functional groups based on their
specialization/experience (i.e. Each functional group comprises
developers having expertise in some specific task or functional area)
– Different functional groups might be – requirements analysis, design,
coding, testing, database, networking
– For carrying out specific activities, different projects borrow developers
from the corresponding functional groups. Upon the completion of
their activities, developers are returned to their respective functional
groups. The partially completed product passes from one team to
another and evolves due to the work done on it by several teams.
– A functional team working on a project does not physically meet the
members of other functional teams who have carried out other parts of
the project.

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 How Teams are structured in
Functional and Projectized Organization?

• In a Projectized Organization,
– The team is organized around a project and not around a
job function
– Resources are brought together specifically for the purpose
of a project
– Necessary resources are acquired for the project, and the
people assigned to the project work only for the PM for the
duration of the project.
– At the end of each project, resources are either reassigned
to another project or returned to a resource pool.

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Influences of Organizational Structures on Projects

Organizational Project Characteristics

Structure Type Work Groups  PM’s  PM’s Role Who manages
Arranged by: Authority Project Budget?

Functional Job being done Little or none  Part-time Functional

(task-oriented) (e.g. designing, Manager
testing)
 Matrix – Weak Job function  Low  Part-time Functional
Manager
 Matrix – Balanced Job function  Low to  Part-time  Mixed
moderate
Matrix – Strong By job function,  Moderate to  Full-time Project Manager
with PM as a high
function
 Projectized Project  High to almost  Full-time Project Manager
(project-oriented) total

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 Stakeholders
• As per the PMBOK Guide “A stakeholder is an individual, group, or
organization who may affect, be affected by or perceive itself to be
affected by a decision, activity, or outcome of a project.”
• A stakeholder is anyone who is affected either positively or negatively by
the cost, time, scope, resources, quality, or risks of your project.
• Anyone who will be affected by the outcome of the project is a
stakeholder.
– Sponsor
– Development Team
– Management Team
• PM should find all of the stakeholders & keep them updated about the
progress of the project.
– Makes sure that expectations are met

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 Stakeholders
• Project stakeholders may be internal or external to the
project, they may be actively involved, passively involved or
unaware of the project.
• Project stakeholders may have a positive or negative impact
on the project, or be positively or negatively impacted by the
project.
• Stakeholders can be positive as well as negative.
– A positive stakeholder sees the project’s positive side and is
benefitted by its success. These stakeholders help the project
management team to successfully complete the project.
– A negative stakeholder sees the negative outcome of the project and
may be negatively impacted by the project or its outcome. This type of
stakeholder is less likely to help your project be completed
successfully.

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 Examples of Stakeholders
Examples of stakeholders include but are not limited to :
Internal stakeholders (belonging to the External stakeholders (not belonging
organization performing the to the performing organization)
project)  – Customers
– Sponsor – End users
– Resource manager – Suppliers
– Project management office – Shareholders
(PMO) – Regulatory bodies
– Portfolio steering committee – Competitors
– Program manager
– Project managers of other
projects
– Team members

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 Stakeholders (cont.)
• Remember, your project is successful if all your stakeholders are happy. It
may happen that even though you have completed the project and all
deliverables are accepted by the client, the project is not successfully
completed because some of your stakeholders are not happy. Therefore, it
is very important for you to keep all your stakeholders satisfied if you want
to complete your project successfully.
• All stakeholders are not equal. Every stakeholder has different
requirements and expectations. You should treat every stakeholder
according to their requirements and expectations. Failing to do so can
jeopardize your project’s success.
• If you know every stakeholder, their needs, expectations, and
requirements, it will increase the chance of the project’s success. If you
miss any important stakeholder, you may face many difficulties in the later
stages of the project such as: delay in the project, cost overrun, and in the
most severe cases, the project may be terminated.

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 Stakeholders (cont.)
• Stakeholders have varying level of responsibility
and authority when participating on a project.
– This level can change over the course of the project’s life
cycle
• Stakeholder identification is a continuous process
throughout the entire project life cycle.
• Identifying stakeholders, understanding their
relative degree of influence on a project, and
balancing their demands, needs, and expectations
are critical to the success of the project.

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 Stakeholders (cont.)
• Different stakeholders in a project may have different
objectives.
• It is important for the PM to identify the project
stakeholders at a very early stage of the project.
After identifying stakeholders, PM records their
details, requirements, expectations, power, and
influence on the project in the stakeholder register.
– A stakeholder register is a project management
document which contains the information about
the project’s stakeholders

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 Project Constraints
1) Time
2) Cost Triple Constraints
3) Scope
4) Resources
5) Quality
6) Risk

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 Managing Project Constraints
1) Time:
– Projects will need to get done on schedule
2) Cost:
– Project will always have to stay within a budget
3) Scope:
– Need to manage the scope of work for the project
4) Resources:
– Have to have the people & materials to get the work done
5) Quality:
– Product should do what it is supposed to do
6) Risk:
– Unexpected obstacles can wreck the project

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Managing Project Constraints (cont.)
• If all six constraints are not managed at the same
time, risk managing in favor of just one
constraint increases.
– Late delivery, Budget overrun, Unacceptable to
customers etc.

• Any time the project changes, the manager will

need to know how that change affects all of the
constraints.

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 Review
Scenarios Constraint Remark
Affected
The project was running late, so SCOPE The PM stuck to the original
the PM decided to release it on budget & schedule, but
time even though it was released a product that
missing some of its features. wasn’t complete.

The company didn’t have RESOURCES Resources are people or

enough money to invest in the materials that you need for
project, so they had to draft your project, and when you
people from other dept. to cut corners you end up
work part time to get the job straining them.
done.

The team wanted to add more QUALITY Tests and defects are part of
testers to find defects, but the quality.
PM overruled them.

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 Review (cont.)
Scenarios Constraint Remark
Affected
About halfway through the project, TIME There are lot of ways to
the PM realized that the money was change the schedule but
running out faster than expected. The sometimes there simply
PM tried to move up the deadline. isn’t enough time

A construction PM assumed that the RISK Assumptions

weather would cooperate with the
plans to complete the job, but
thunderstorms have derailed the
project.

The PM didn’t take software license COST PM should always look into
fees into account which later the matter
increased the budget.

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The Triple Constraints

Scope
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 The Triple Constraints
• The Triple Constraints are –
1) Time
2) Cost
3) Scope
• Each of these constraints is related to the other two and directly affects the
quality of the project.
• They must be managed to successfully complete a project.
• When the scope of a project is changed, time and cost are also affected.
– The same is true when changes are made to cost or time
• Any change to one of the constraints will have some effect on one, or both
of the remaining constraints.
• The PM must ensure each of these constraints is balanced with the other
two at all times.

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 The Triple Constraints
• Scope
– How much work is to be done?
– Increasing the scope causes more work to be done, and
vice versa
• Time
– The schedule of the project
– Modifying the schedule alters the start & end dates for
tasks in the project and can alter the project’s overall
end date
• Cost
– The cost required to accomplish the project’s objectives
– Modifying the cost of the project generally has an impact
on the scope, time, or quality of the project
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