Project Management Organization Structure

8/14/2019 Project Management Organization Structure

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Hierarchical structures

Reports, Decides and Communicates-With all mapped on thesame association

Do not work well with iterative and incremental softwaredevelopment process

Manager is not necessarily always right

Project-based structures

Reports, Decides and Communicates-With are differentassociations

Cut down on bureaucracy reduces development time Decisions are expected to be made at each level

Hard to manage


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Hierarchical Structure

Projects with high degree of certainty, stability, uniformity andrepetition.

Requires little communication

Role definitions are clear

When? The more people on the project, the more need for a formal structure

Customer might insist that the test team be independent from thedesign team

Project manager insists on a previously successful structure


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Project-Based Structure

Project with degree of uncertainty

Open communication needed among members

Roles are defined on project basis

When?

Requirements change during development

New technology develops during project


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Corporation X

Human

Resources

Marketing Engineering ProcurementManufacturing

Finance &

Administration

Project Manager

Project Team

MA1 MA2 MA3 EN1 EN2 EN3 MF1 MF2 MF3 PR1 PR2

Forming a (Dedicated) Project Team

Staff are assigned away from various departments to work

full-time on the project.

OtherAreas


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The (dedicated) Project Team lies at one extreme end of the

continuum which starts from undertaking projects using the

(pure) functional form of project organization.

A project manager is selected to head a core group of

personell assigned from two or more functional units of theorganization and who are all required to work full-time on the

project in question.

Project Teams are usually cross-functional in nature and

are a powerful means of dealing with complex assignments which

may be difficult to do using other project organiza-tion forms.


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Advantage

No structural impact on the functional organization occursonly

the tempo-rary siphoning away of functional specialists from their

respective areas for the duration of the project or for a phase of it

when heir input is required in order to complete specialist tasks.

Project completion time is comparatively smaller due to project

personell devoting their efforts to the project in question full-timeand also because the flow of information and decision-making is

generally not hindered by hierachies as it is in the functional form

of organizing projects.


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Advantage

Motivation, feeling of iden-tification and cohesiveness are strong

in the project.

Project personell share a common goal and they also share a

collective responsibility for ensuring the realization of this goal.

Cross-functional cooperation is strongly encouraged and

promoted as a means of achieving the project goal.

Cross-functional teams create a synergy effect which can handle

tasks characterised by a high degree of complexity.


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Disadvantage

A major criticism of the (dedicated) project team relates to the cost

factor. Normally, a larger expense is involved because resources and

facilities are assigned to the project on a full-time basis. Acrossprojects, this may result in a duplication of infrastructure and work.

Projectitisproject personell evolve a collective identity

encapsulating themselves from the enterprise, giving rise to a non-

constructive usand themoutlook. Sometimes this not only

undermines the integration of the project effort back into

mainstream operations but also the subsequent assimilation of

project personell back into their respective functional areas.


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Disadvantage

The project may become over-dependent on the gamut of skills,

expertise and experience held by the project personell and maynot seek to incorporate fresh skills, expertise and experience

which is held by individuals and organiza-tional entities which are

outside the project.

The assimilation of project personell back into their respective

functional units may prove difficult due to their prolonged

absence from their units and the challenge of keeping up with

the developments which have taken place in the functional units

during the project period.


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Determining The Best Project Organization Form

The projects size

The projects strategic importance

The projects innovation requirementThe projects level of required integration across functional

delineations

The project environments complexity

The project budget and time constraintsThe project resource requirement level of stability

In generalthe higher the level of these factors, the

greater is the requirement of autonomy and authority for the

project manager and his/her team in order to ensure the

success of the project (i.e. a strong project matrix or

dedicated project team is desirable).


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Criteria for organizational design decisions (Robert Youker, 1977)

Criterion Functional

Structure

Matrix Structure Project Structure

Uncertainty Low High High

Technology Standard Complicated New

Complexity Low Medium High

Duration Short Medium Long

Size Small Medium Large

Importance Low Medium High

Customer Diverse Medium One

Interdependency

(within)

Low Medium High

Interdependency

(between)

High Medium Low

Time criticality Low Medium High

Resource criticality Depends Depends Depends

Differentiation Low High Medium


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Associations in organizational structures

Reporting association: Used for reporting status information

Decision association

Used for propagating decisions

Communication association Used for exchanging information needed for decisions (e.g.,

requirements, design models, issues).


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Possible Mappings of ToDos to People

One-to-One Ideal but often not worth to be called a project

Many-to-Few

Each project member assumes several roles ("hats")

Danger of overcommittment

Need for load balancing

Many-to-"Too-Many"

Some people don't have significant roles

Bystanders Loosing touch with project


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Assigning Responsibilities To People

To Do List for the Project

Item 1

Item 2

Item 3

Item 4

Item 5

Item 6

Item 7

Item 8

Item 9

Item 1

Item 2

Item 9

Role 1

Item 4Item 5

Item 7

Role 2

Item 3

Item 6

Item 8

Role 3

Person A

Role 1

Role 2

Person B

Role 3

Team A


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Using the Work Breakdown Structure

1. Estimate and schedule the work (Durations, precedences on WBS)

2. Organize and schedule resources (resource allocated WBS)

3. Assign responsibilities(Resource ramp-up, resource allocated WBS)

4. Estimate and allocate costs and budgets (costed WBS)

5. Add up costs to different levels

Task

Levels on the WBS (phase, account/contract)

Cost account

Total project

6. Get resource commitments

7. Schedule start end dates

8. Track expenditures, schedules and performance

Work Breakdown Structure


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Implement Work Breakdown Structure

Subdivision into Smaller Increments

Level 1: Total Project

Level 2: Systems of the Project

Level 3: Subsystems of the Project

Level 4: Units/Equipments

Level 5: Work Packages or Components


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WBS serves several important Purposes, such as:

Subdivision of Work

Identification of Project Levels

Work Sharing between Companies Economic Geographical Distribution of Funds

Implementation of WBS Numbering System (Code) applicable to the

entire Project

Definition of Cost Account Structure

Allocation of Funds

Implementation of Project Control in line with the WBS Code

Assignment of Responsibilities to Companies & Individual Managers

Identification of Interfaces at all Levels

Implementation of Documentation Numbers related to WBS Code

Identification of Work Package


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Work Package Description

Work Package (WP) Identification

Title

Identification of the WP in the WBS (WP Number) Date of the Start and End of the WP

Company or Entity in charge of the WP Performance

Work Package Manager

Description of the WP Tasks to be Performed

Tasks Explicitly Excluded

WP Inputs

Product(s) to be Completed or Delivered


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The

Project Manager


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Leadership Skills:

Vision and Strategy

Establishing Direction

Aligning People Communicating

Negotiating

Motivating and Inspiring

Influencing Organizations

Overcoming Barriers to Change


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General Management Skills:

Planning

Finance and Accounting

Personnel Administration

Technology

Organizational Development

Delegation

Team Building

Conflict Management

Solving Problems


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Communications Skills:

Writing

Listening

Speaking Presenting

Media Relations

Meeting Management


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Role of a project manager

The role of a project manager is affected by the one-

shot nature of the project

The role of a project manager is difficult when team

members are still linked to their permanent workareas

Members may be assigned to several projects

simultaneously

Managers must rely on their communication skills

and powers of persuasion


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Project manager attributes

Leader & manager

Facilitator, coordinator

Communicator

Credibility: Technical/Administrative

Work under pressure

Goal-oriented

Innovator Versatilist

Knowledgeable about the

organization

Political sensitivity

Conflict: sense, confront,

resolve

Can deal with stress, chaos,

ambiguity

Planning and follow-

through

Ethical dilemmas


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Project manager attributes

Specialist

Generalist

Versatilist


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Project manager duties

Reports to senior management

Communicates with users

Plans and schedules

Obtains and allocates resources

Controls risks

Manages people

Coordinates

Implements quality assurance

Controls the budget

Delivers results


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The

Project Team


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Team Formation

Top level Design

Rough Subsystem Decomposition (beforerequirements analysis)

Done during Predevelopment phase

Team Formation done after Top Level Design

Heuristics:

One team for each subsystem

One cross-functional task per team

5-7 members per team

Be prepared to iterate the team formation after system

design when the subsystem decomposition is baseline


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Project teams

Diversity of knowledge needed

Cross-functional

Self-directed Often ad-hoc or temporary

Often distributed (geographically)

Start and end dates


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Project personnel skills

Technical

Political

Problem-oriented

(vs. discipline-oriented) Goal-oriented

Flexibility, adaptability

High self-esteem

can handle failure, risk, uncertainty, unexpected

can share blame and credit

Documents

Project Management Organization Structure