Chapter 13Types of Project

Organizations

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Learning Objectives

The characteristics of the three types of organization structures: - functional - project - matrix

The advantages and disadvantages of each

Real World Example Vignette: Simple Guidelines for Great Leaders An effective leader: commits people to action, develops team members

into leaders, and acts as an agent for change Guidelines for effective leaders:

Ensure the team understands the mission and vision, and sticks to it Make behavioral expectations clear- advocate good behavior, and

have consequences for unacceptable behavior Make teamwork a criterion for team member’s successful

performance Focus on encouraging good behavior and producing positive actions,

instead of making people fearful Cliques are unacceptable Work closely to manage and resolve conflict Don’t rush or neglect processes

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Real World Example Vignette: The Chicago Police Department Chicago Police Department is using advanced IT to better protect its 3 million

citizens within 228 square miles. The Citizen Law Enforcement Analysis and Reporting System (CLEAR) provides quick access to shared information about crimes

After 3 years and $40 million, half of the CLEAR’s planned functions have been developed and are in use. CPD processes about 700 arrests each day. The information is entered and stored in CLEAR, providing a central database of searchable information for the CPD and other Illinois police departments

Since CLEAR was introduced, the CPD’s crime-solving rate has increased. The rate went from 21% in 2001 to 26% in 2002

Factors leading to the successful implementation of CLEAR: extensive user-input, user-friendly interfaces that resemble existing paper forms, employees trained fellow employees to use the system

CLEAR transformed the CPD’s business practices into highly efficient processes for sharing critical information.

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Functional-Type Organization Used in businesses that sell and produce

standard products. Groups consist of individuals performing the

same function. Periodically undertake in-house projects. Team members can be assigned to the

project. Team members continue regular functional

jobs. Project manager does not have complete

authority over team.

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Project-Type Organization

Used in companies in the project business, not selling products.

Work on multiple projects at a time. Project team is dedicated to one project. Project manager has complete authority

over team. Each project team tends to be isolated.

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Matrix-Type Organization A mix of functional and project

organization structures. Used in companies that work on multiple

projects at a time. Provides project and customer focus. Retains functional expertise. Individuals can be assigned to various

types of projects.

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Matrix-Type Organization (Cont.) Both project managers and functional

managers have responsibilities. The Project Manager is the intermediary

between customer and company. The Functional Manager decides how

tasks will be accomplished.

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Functional Organization Advantages Reduces duplication and overlap of

activities. Provides specialization and functional

excellence.

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Functional Organization Disadvantages

Can be insular. Teamwork is not emphasized. Decisions may be parochial. Structure can slow communication,

problem solving and decision making. Lack of customer focus. Stronger allegiance to function than

project.

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Project Organization Advantages Team has full control over resources. Organization is highly responsive to

customer.

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Project Organization Disadvantages Can be cost inefficient. Tendency to stretch out work during slow

periods. Potential for duplication on concurrent

projects. Low level of knowledge transfer. No functional “home”. People may be laid off at the end of the

project.

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Matrix Organization Advantages Allows efficient utilization of resources. Individuals can be moved among projects. Provides a core of functional expertise. Facilitates information flow. Team members can communicate with

project and functional managers. Customer focused.

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Matrix Organization Disadvantages Team members have a dual reporting

relationship. A proper balance of power must be

established between project and functional managers.

Conflicts regarding priorities can arise between managers.