Lecture Project Organisation

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PROJECT ORGANISATION

Year 3 Project Management

Dr. Margaret Nelson


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LECTURE OUTLINE

TypesBackground

StructureCulture


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TYPES OFORGANISATIONS

Bureaucratic organisation Adhocratic organisationTall hierarchy Flat hierarchyClear and precise specification of task

responsibilities

Ambiguous and overlapping task

responsibilitiesReliance upon procedures for co-ordination

Reliance upon leadership andteamworking for co-ordination

Search for technical fixes to co-ordination problems

Development of organisationalcapabilities to solve co-ordinationproblems

Production driven Responsive to client needsStrong emphasis upon planning Strong emphasis upon learning by

doingSimple jobs in a complex organisation Complex jobs in a simple organisationEmphasis on productivity Emphasis on flexibility


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RISE OF THEPM CONCEPT

an organisational innovation a specialist co-ordinator of the process

constructing large, complex systems railways aerospace

the cold war programmes Polaris/ Atlasresource bases and project coordinators


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RESOURCE BASES& PROJECT CO-ORDINATORS

Project Manager Resource-Base Manager What is the task to be done? How will the task be done?When will the task be done? Where will the task be done?Why will the task be done? Who will do the task?What is the budget for the task What are the resources required for the

task?Quality of integration of task output intofinal product

Quality of task output


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CLIENTRESPONSIBILITIES

Promoter defining need

Financier

obtaining capitalDecision-maker appropriately timed decisions

Recruiter mobilising appropriate resource bases

The problem of managerial capabilities in-house capability

executive project management


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CLIENT PMOPTIONS

client client

project coalition project coalition

executive project manager

PM dept


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PROJECT ORGANISATIONIN CONSTRUCTION

Little coordination at the level of theproject as a wholeMixing project and resource basemanagement responsibilitiesPoor training

Resource bases in the project coalition


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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 ManagementStructure

The best system balancesthe needs of the projectwith the needs of theorganization

PM STRUCTURES


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PM STRUCTURES


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Different segments of the project aredelegated to respective functional units

Coordination is maintained through normalmanagement channels

Used when the interest of one functional

area dominates the project or onefunctional area has a dominant interest inthe projects success

FUNCTIONALORGANISATION


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FUNCTIONALORGANISATION (2)


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Advantages

No StructuralChange

Flexibility

In-Depth

Expertise Easy Post-Project

Transition

Disadvantages

Lack of Focus

Poor Integration Slow

Lack of Ownership

FUNCTIONALORGANISATION (3)


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Teams operate as separate units under the leadership of a full-time projectmanager

In a project ized organization whereprojects are the dominant form of business, functional departments areresponsible for providing support for itsteams

DEDICATED TEAMS


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DEDICATED TEAMS(2)


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Advantages

Simple

Fast Cohesive

Cross-FunctionalIntegration

Disadvantages

Expensive

Internal Strife Limited

Technological

Expertise Difficult Post-

Project Transition

DEDICATED TEAMS(3)


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PROJECT ORGANISATIONALSTRUCTURE


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Hybrid organizational structure (matrix) isoverlaid on the normal functional structure. Two chains of command (functional and project)

Project participants report simultaneously to bothfunctional 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

project requirements.

MATRIX STRUCTURE


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MATRIXSTRUCTURE (2)


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Project Manager Negotiated Issues Functional Manager

What has to be done? Who will do the task? How will it be done?

When should the task be done? Where will the task be done?

How much money is available to Why will the task be done? How will the project involvementdo the task? impact normal functional activities?

How well has the total project Is the task satisfactorily How well has the functionalbeen done? completed? input been integrated?

RESPONSIBILITIES INA MATRIX STRUCTURE


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Functional (also Weak or Lightweight) Form Matrices in which the authority of the functional

manager predominates and the project manager hasindirect authority.

Balance (or Middleweight) Form The traditional matrix form in which the project

manager sets the overall plan and the functional

manager determines how work to be done.Strong (Heavyweight) Form Resembles a project team in which the project

manager has broader control and functional

departments act as subcontractors to the project.

DIFFERENTMATRIX FORMS


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Advantages

Efficient

Strong ProjectFocus

Easier Post-

Project Transition Flexible

Disadvantages

DysfunctionalConflict

Infighting

Stressful

Slow

MATRIXSTRUCTURE (3)


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An alliance of several organizations for thepurpose of creating products or services. A hub or core firm with strong core

competencies outsources key activities to acollaborative cluster of satellite organizations.

NETWORKORGANISATIONS


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MOUNTAIN BIKENETWORK PROJECT


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Advantages

Cost Reduction

High Level of Expertise

Flexible

Disadvantages

Coordination of Breakdowns

Loss of Control

Conflict

NETWORKORGANISATIONS (2)

RATED EFFECTIVENESS OF


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Source: Larson, E. W., and Gobeli, D. H., Matrix Management: Contradictions and Insights, California Management Review, vol. 29, no. 4(Summer 1987), p. 137.

RATED EFFECTIVENESS OFDIFFERENT PROJECTSTRUCTURES BY TYPE


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Organization (Form) Considerations How important is the project to the firms

success? What percentage of core work involves

projects? What level of resources (human and physical)

are available?

CHOOSING THEAPPROPRIATE PMSTRUCTURE


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A system of shared norms, beliefs, values, andassumptions which bind people together,thereby creating shared meanings.

The personality of the organization that sets itapart from other organizations.

Provides a sense of identify to its members.

Helps legitimize the management system of theorganization.

Clarifies and reinforces standards of behavior.

ORGANISATIONALCULTURE

KEY DIMENSIONS


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KEY DIMENSIONSDEFINING ANORGANISATIONS CULTURE


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Study the physical characteristics of an organization architecture, office layout, decor Read about the organization Public documents e.g.annual reports, internal newsletters, vision statements

Observe how people interact within the organization pace, language, meetings, issues discussed, decisionmaking style, communication patterns, ritualsInterpret stories and folklore surrounding the

organization stories, anecdotes, heroines, heroes,villiains

IDENTIFYING CULTURALCHARACTERISTICS

IMPLICATIONS OF


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Challenges for Project Managers innavigating Organizational Cultures

Interacting with the culture and subcultures of the parent organization Interacting with the projects clients or

customer organizations

Interacting with other organizationsconnected to the project

IMPLICATIONS OFORGANISATIONALCULTURE

MECHANISMS FOR


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MECHANISMS FORMAINTAININGORGANISATIONAL CULTURE


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READING LIST

Gray, C. F. and Larson, E. W. (2006), Project Management: TheManagerial Process, 3 rd Edition, NY: McGraw Hill/Irwin.Lock, D. (2001), The Essentials of Project Management, 2 nd Edition,Hampshire: Gower. Pp 31-54.Reiss, G. (1995), Project Management Demystified: Todays Toolsand Techniques, 2 nd Edition, Winch, G, Lecture NotesWalker, A. (2002), Project Management in Construction, 4 th Edition,Oxford: Blackwell Publishing. Chapters 1-4, 11 & 12.

http://www.ce.cmu.edu/pmbook/ http://www.blackwellpublishing.com/winch/case.pdf

http://www.maxwideman.com/guests/index.htm
http://www.ce.cmu.edu/pmbook/http://www.blackwellpublishing.com/winch/case.pdfhttp://www.maxwideman.com/guests/index.htmhttp://www.maxwideman.com/guests/index.htmhttp://www.blackwellpublishing.com/winch/case.pdfhttp://www.ce.cmu.edu/pmbook/


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