Organization: Structure and Culture Reference: 1.Project Management: The Managerial Process, 5/e, Erik W. Larson, Oregon State University, Clifford F. Gray, Oregon State University 2.Project Management Institute (PMI), A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th Edition, Lectures of Dr. AZ Khan, Dr. Nadeem Ehsan. 4.Others, given on slides, wherever used.

The Three Structures 2 Functional StructuresMatrix StructureProjectised Structures (weak, balanced, strong)

Functional Structure Simply managing by using the existing functional hierarchy of the organization. 3

… 4 Reference: PMBoK

… 5

… Coordination is maintained through normal management channels. 6

… It is mostly used when One functional area plays a dominant role in completing the project. Has a dominant interest in the success of the project. A high-ranking manager in that area is given the responsibility of coordinating the project. 7

Advantages of Functional Structure No change (no radical change in the organization) Flexibility (max. flexibility in the use of staff, HR can be switched as and when required, availability of specialist and generalist) In-Depth Expertise. In-depth expertise can be brought to bear on the most crucial aspects of the project. Easy Post-Project Transition. Career paths are maintained. CV enhancement 8

Disadvantages Lack of Focus Poor Integration (May be poor integration across functional units) Slow Lack of ownership 9

Projectised/Project Team Structure At other end of the structural spectrum. Separate units from the parent organization. Usually a full-time project manager to pull together a team. Team works full time on the project. The project manager recruits necessary personnel from both within and outside the parent company. 10

… 11 Reference: PMBoK

Another View of Projectised Structures 12

… Team is physically separated from the parent organization. The parent organization may control through finances. It may give maximum authority to PM. 13

If organization is a project based organization, the entire organization is designed to support project teams. The organization consists of sets of quasi- independent teams working on specific projects. Traditional functional departments assist and support these project teams. 14

For Example Marketing department to generate new business that will lead to more projects. HR to manage a variety of personnel issues as well as recruiting and training. It is important to note that not all projects are dedicated project teams; personnel can work part-time on several projects (use with care in interviews). 15

Advantages Simple Fast Cohesive Cross functional integration (specialists from diff. backgrounds work together for optimization of the project) 16

… In many cases, the project team is best for completing a project from project completing point of view. It weaknesses become more evident when the needs of the parent organization are taken into account. 17

Weaknesses / Disadvantages Expensive Internal Strife (projectitis) we-they develops Limited technological expertise Difficult post project transition If other project is not available.. what to do with personnel after a project is completed? If no further project is available, then the transition back to their original functional departments may be difficult because of their prolonged absence and the need to catch up with recent developments in their functional area. 18

MATRIX Structure It is a hybrid organizational form Project management structure is “overlaid” on the normal functional hierarchy. 19

How Matrix could have evolved ? It evolved out of the necessity to share resources across multiple projects and functional domains while at the same time creating legitimate project leadership. 20

The Functional Project Matrix/ Weak Project Matrix An individual is selected who will oversee and coordinate the project activities across the various involved functional levels of the organization. Functional managers are responsible for managing their respective segments of the project, decide who does what and when the project is to be completed, and evaluate the participants. Their influence is greater than that of the project manager, who has indirect authority to expedite and monitor the project.

Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Staff The Functional (“Weak”) Project Matrix Staff Project Coordination

The Balanced Project Matrix In the Balalanced Project Matrix an individual is selected who will manage the project across the various functional levels of the organization and who will interact with the functional managers on an equal basis and jointly approve technical and operational decisions. The project manager defines what needs to be accomplished and the functional managers decide how and by whom it will be accomplished within the plan, various desig-nated functional inputs, standards and schedules established by the project manager.

Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Staff PM Staff The Balanced Project Matrix Staff Project Coordination

The Strong Project Matrix In the Project – or „strong“ - Matrix a project manager is selected to oversee the completion of the project across the various involved functional levels of the organization. The project manager is ultimately is responsible for the project‘s completion, has final say on major project deci-sions and controls most aspects of the project, including the assignment of functional personell, what they do and when. The functional managers maintain title over their respective personell and have consultation rights.

Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Staff The (Strong) Project Matrix Staff Project Coordination Manager of Project Mgrs. Manager of Project Mgrs. Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager Project Manager

… 27 Reference: sameh.wordpress.com

… 28

… Usually two chains of command Project participants report simultaneously to both functional and project managers. 29

… 30

Types of Matrix Structures Weak Balanced Strong 31

Advantages Efficient Strong project focus Easier post project transition Flexible 32

Disadvantages Dysfunctional conflict (conflicts are good but not dysfunctional) Infighting Stressful Slow 33

Finally 34 Reference: PMBoK