•Choosing an Appropriate Project Management Structure–The best system balances the needs of the project
3–35Project 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.
3–36Functional Organization of Projects•Advantages1.No Structural Change2.Flexibility3.In-Depth Expertise4.Easy Post-Project TransitionDisadvantages1.L
3–37Project Management Structures [cont’d]•Organizing Projects: Dedicated Teams–Teams operate as separate units under the leadership of a full-time project manager.–In a projectizedorganization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
3–38Project Organization: Dedicated Team•Advantages1.Simple2.Fast3.Cohesive4.Cross-Functional Integration•Disadvantages1.Expensive2.Internal Strife3.Limited Technological Expertise4.Difficult Post-Project Transition
3–39Project 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 a greater integration of expertise and
3–41Different Matrix Forms•Weak Form–The authority of the functional manager predominates and the project manager has indirect authority.•Balanced Form–The project manager sets the overall plan and the functional manager determines how work to be done.•Strong Form–The project manager has broader control and
3–42Project Organization: Matrix Form•Advantages1.Efficient2.Strong Project Focus3.Easier Post-Project Transition4.Flexible•Disadvantages1.Dysfunctional Conflict2.Infighting3.Stressful4.Slow
3–43Choosing the Appropriate Project Management Structure•Organization [Form] Considerations–How important is the project to the firm’s success?–What percentage of core work involves projects?–What level of resources [human and physical] are available?
3–44Choosing the Appropriate Project Management Structure [cont’d]•Project Considerations–Size of project–Strategic importance–Novelty and need for innovation–Need for integration [number of departments involved]–Environmental complexity [number of external interfaces]–Budget and time constraints
3–45Organizational Culture•Organizational Culture Defined–A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings.
Upload your study docs or become a
Course Hero member to access this document
Upload your study docs or become a
Course Hero member to access this document