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Lecture Project management: The managerial process (5/e): Chapter 3 - Erik W. Larson, Clifford F. Gray

Chapter 3 - Organization: Structure and culture. This chapter examined two major characteristics of the parent organization that affect the implementation and completion of projects. The first is the formal structure of the organization and how it chooses to organize and manage projects. | Where We Are Now 3– Project Management 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. 3– Project Management 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 project’s success. 3– Functional Organization of Projects Advantages No Structural Change Flexibility In-Depth Expertise Easy Post-Project Transition Disadvantages Lack of Focus Poor Integration Slow . | Where We Are Now 3– Project Management 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. 3– Project Management 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 project’s success. 3– Functional Organization of Projects Advantages No Structural Change Flexibility In-Depth Expertise Easy Post-Project Transition Disadvantages Lack of Focus Poor Integration Slow Lack of Ownership 3– Project Management Structures (cont’d) 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. 3– Project Organization: Dedicated Team Advantages Simple Fast Cohesive Cross-Functional Integration Disadvantages Expensive Internal Strife Limited Technological Expertise Difficult Post-Project Transition 3– Project Management Structures (cont’d) 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