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Lecture Project management in practice - Chapter 4: Project organisational structures and cultures

The main goals of this chapter are to: Understand the different project organisational structures that broadly define how the project fits with the organisational structures that may already exist in an organisation, realise the importance of an organisation’s culture and the effect it can have on the management of a project. | CHAPTER 4 Project Organisational Structures and Cultures Learning Elements 4.1. Understand the different project organisational structures that broadly define how the project fits with the organisational structures that may already exist in an organisation. 4.2. Realise the importance of an organisation’s culture and the effect it can have on the management of a project. Project Management Structures Challenges to organising projects The uniqueness and short duration of projects relative to ongoing longer-term organisational activities. The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas 1. Functional organisations 2. Dedicated project teams 3. Matrix arrangement Weak matrix Balanced matrix Strong matrix Project Management Structures (cont.) Functional Organisations Different segments of the project are delegated to respective functional units. Coordination is maintained through normal management channels. Used when the . | CHAPTER 4 Project Organisational Structures and Cultures Learning Elements 4.1. Understand the different project organisational structures that broadly define how the project fits with the organisational structures that may already exist in an organisation. 4.2. Realise the importance of an organisation’s culture and the effect it can have on the management of a project. Project Management Structures Challenges to organising projects The uniqueness and short duration of projects relative to ongoing longer-term organisational activities. The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas 1. Functional organisations 2. Dedicated project teams 3. Matrix arrangement Weak matrix Balanced matrix Strong matrix Project Management Structures (cont.) Functional Organisations 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. Functional Organisations (cont.) Advantages No structural change Flexibility In-depth expertise Easy post-project transition Disadvantages Lack of focus Poor integration Slow Lack of ownership 3– Functional Organisations (cont.) Dedicated Project Teams Teams operate as separate units under the leadership of a full-time project manager. In a projectised organisation, where projects are the dominant form of business, functional departments are responsible for providing support for its teams. Dedicated Project Teams (cont.) Advantages Simple Fast Cohesive Cross-functional integration Disadvantages Expensive Internal strife Limited technological expertise Difficult post-project transition 3– Dedicated Project Teams (cont.) Dedicated Project Teams (cont.) Matrix Organisations Weak form The authority of the functional manager predominates and the .