lecture 3 project organizations

8/16/2019 LECTURE 3 Project Organizations

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PROJECT MANAGEMENT

By: Najmus Saqib Rehmani

Project Organizations

19/02/2016


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!y"es o# Project Organiations

here are two fundamentall! different wa!s of

organizing projects within the parent organization

he project as part of the functional

organization

he project as a free"standing part of the parent

organization

A third t!pe, called a #atri$ Organization is a

h!brid of the two main t!pes

Each has advantages and disadvantages


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President/ CEO

VP

Finance

VP

Marketing

VP

Manufacturing

VP

Engineering

$unctiona% Organiation

NewLayout –Robot Line

& #unctiona% organiation is a common ty"e o# organiationa%structure in (hich the organiation is )i*i)e) into sma%%ergrou"s base) on s"ecia%ie) #unctiona% areas+ such as ,!+-nance+ or mar.eting


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Part o! t"e #unctiona$Organization

Advantages of using the functional elements of theparent organization as the administrative home for a

project include%#a$imum fle$ibilit! in the use of staff

Individual e$perts can be utilized b! man! differentprojects

&pecialists in the division can be grouped to share

knowledge and e$perience

he functional division also serves as a base oftechnological continuit! when individuals choose to leave

the project

he functional division contains the normal path of

advancement for individuals whose e$pertise is in the

functional area


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%isadantages o! t"e Project asPart o! t"e #unctiona$ Organization

here are also disadvantages to housing the project

in a functional area%

he client is not the focus of activit! and concern

he functional division tends to be oriented toward theactivities particular to its function

Occasionall!, no individual is given full responsibilit!

for the project

here are often several la!ers of managementbetween the project and the client

here is a tendenc! to sub optimize the project


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An organization in which the project is separated from

the rest of the parent s!stem. It becomes a self"contained unit with its own staff.

Pure Project Organization


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Adantages o! Pure Project Organization

he project manager has full line authorit! over the project

All members of the project work force are directl!responsible to the project manager

'hen the project is removed from the functional division, the

lines of communication are shortened

'hen there are several successive projects of a similarkind, the pure project organization can maintain a

permanent cadre of e$perts who develop skills in specific

technologies A project team that has a strong and separate identit! and

develops a high level of commitment among its members(ecause the authorit! is centralized, the abilit! to make a

swift decision is enhanced. )nit! of command e$istshe organizational structure tends to support a holistic

approach to the project


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%isadantages o! Pure ProjectOrganization

Each project tends to be full! staffed which can

lead to a duplication of effort in ever! area from

clerical staff to technological support

he functional division is a repositor! of technicallore, but it is not readil! accessible to team

members of the pure project teamIn a pure project organization, the project takes on

a life of its ownhere tends to be concern among team members

about *life after the project ends+


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Organization

-ather than being a stand alone organization, like the

pure project, the matri$ project is not separated from theparent organization%


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Adantages o! Matri& Organization

he project is the point of emphasis(ecause the project is overlaid on the functional

divisions, the project has reasonable access to the

reservoir of technolog! in all areashere is less an$iet! about what happens when the

project is completed#atri$ management gives the project access to

representatives from the administrative units of the

parent firmhe matri$ organization allows a better compan!"wide

balance of resources to achieve goalshere is a great deal of fle$ibilit! in precisel! how the

project is organized within the matri$


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sa an ages o a r &Organization

he balance of power between the project andfunctional areas is ver! delicate

he movement of resources from project to project ma!

foster political infighting

roblems associated with shutting down projects canbe as severe as in a pure project organization

he division of authorit! and responsibilit! in a matri$

organization is comple$, and uncomfortable for the

project manager.#atri$ management violates the management principle

of unit! of command. roject workers have at least two

bosses, their functional heads and the project manager.

t


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e rgan at onaSystemsivisionalization is a means of dividing a large

organization into smaller more fle$ible units

his enables the parent organization to

capture some of the advantages of small,specialized organizational units while retaining

some of the advantages that come with larger

size units


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ie) Organiationa% Systems

&)*antages o# a mie) organiation:

!he hybri)iation o# the mie) #orm %ea)s to

eibi%ity

!he -rm is ab%e to meet s"ecia% "rob%ems by

a""ro"riate a)a"tation o# its organiationa%

structure

3isa)*antages inc%u)e:3issimi%ar grou"ings (ithin the same accountabi%ity

center ten) to encourage o*er%a"+ )u"%ication+ an)#riction because o# incom"atibi%ity o# interests

4on)itions sti%% eist that resu%t in conict bet(een#unctiona% an) "roject managers


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4hoosing an Organiationa%$orm

Se%ecting the organiationa% inter#ace bet(een

the "roject an) the -rm is a )i5cu%t tas.

!he choice is )etermine) by the situation+ but is

a%so "art%y intuiti*e ust consi)er the nature o# the "otentia% "roject+

the characteristics o# the *arious organiation

o"tions+ the a)*antages an) )isa)*antages o#

each+ the cu%tura% "re#erences o# the "arent

organiation+ an) then ma.e the best com"romise

that can be ma)e


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4riteria #or the se%ection o# a "roject

organiation:

1 3e-ne the "roject (ith a statement o#the objecti*es7 that i)enti-es the major

outcomes )esire)

2 3etermine the .ey tas.s associate) (itheach objecti*e an) %ocate the units in the

"arent organiation that ser*e as

#unctiona% 8homes #or these ty"es o#


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4riteria #or the se%ection o# a "rojectorganiation cont;) ?ist any s"ecia% characteristics orassum"tions associate) (ith the "roject

6 ,n %ight o# items 1@>+ an) (ith #u%%recognition o# the "ros an) cons associate)

(ith each structura% #orm+ choose a


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!he Project !eam

!o staA a "roject+ the "roject manager (or.s #roma #orecast o# "ersonne% nee)s o*er the %i#e cyc%eo# the "roject& (or. brea.)o(n structure BS7 is "re"are) to

)etermine the eact nature o# the tas.s require) tocom"%ete the "roject

S.i%%s requirements #or these tas.s are assesse) an)%i.e s.i%%s are aggregate) to )etermine (or. #orce nee)s

$rom this base+ the #unctiona% )e"artments arecontacte) to %ocate in)i*i)ua%s (ho can meet thesenee)s

4ertain tas.s may be subcontracte)


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!he Project !eam

!here are some "eo"%e (ho are morecritica% to the "roject;s success than othersan) shou%) re"ort )irect%y to the "roject

manager or the "roject manager;s )e"uty:Senior "roject team members (ho (i%% be

ha*ing a %ong@term re%ationshi" (ith the "roject

!hose (ith (hom the "roject manager requires

continuous or c%ose communication

!hose (ith rare s.i%%s necessary to "roject

success


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Cuman $actors an) the Project !eam

eeting sche)u%e an) cost goa%s+ (ithoutcom"romising "er#ormance is a technica%"rob%em+ (ith a human )imension

Project "ro#essiona%s ten) to be "er#ectionistsPri)e in (or.manshi" %ea)s the team

member to im"ro*e an) thus change7 the

en) resu%t

!hese changes sometimes cause )e%ays in

the "roject


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oti*ating Project !eam embers: !he "roject manager o#ten has %itt%e contro%o*er the economic re(ar)s an) "romotions o#"roject team members+ but this )oes not mean

he/she cannot moti*ate members o# the teamCo( are technica% em"%oyees moti*ate)D

o Recognition

o &chie*ement

o !he (or. itse%# o Res"onsibi%ity

o &)*ancement

o !he chance to %earn ne( s.i%%s


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Em"o(erment o# "roject teams isa%so a moti*ationa% #actor:1 ,t harnesses the abi%ity o# the team

members to mani"u%ate tas.s so that"roject objecti*es are met !he team isencourage) to -n) better (ays o# )oingthings

2 Pro#essiona%s )o not %i.e beingmicromanage) Partici"ati*emanagement )oes not te%% them ho( to

(or. but gi*en a goa%+ a%%o(s them to)esi n their o(n metho)s


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,nter"ersona% 4onict

!he #ocus o# conict can o#ten be re%ate) to thestage in the "roject;s %i#e cyc%ehen the "roject is -rst organie)+ "riorities+ "roce)ures

an) sche)u%es a%% ha*e rough%y equa% "otentia% to cause

conict3uring the bui%)u" "hase+ "riorities become signi-cant%y

more im"ortant than any other conict #actor,n the main "rogram "hase sche)u%es are the most

im"ortant cause o# conict #o%%o(e) by technica%)isagreements&t the "roject -nish+ meeting the sche)u%e is the critica%

issue


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,nter"ersona% 4onict

4onict an) the Project anager

ost o# the conict on "roject teams is the resu%t

o# in)i*i)ua%s #ocusing on the "roject through the

eyes o# their in)i*i)ua% )isci"%ine or )e"artment4onict a*oi)ers )o not ma.e success#u% "roject

managers

On occasion+ com"romise a""ears to be he%"#u%+

but most o#ten+ gent%y con#ronting an) reso%*ing

the conict is the metho) o# choice+ #or a (in@(in

situation


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atrices


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lecture 3 project organizations

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