OM480 Project Management and Organizational Structures (With Material from the Text Authors)

Overview Organizational Project Management Picking the “Best” Structure

Functional Organizations Delta Manufacturing, Inc. President Human resources Finance and administration MarketingEngineeringManufacturingProcurement Electronics engineering Software engineering Mechanical engineering Design Receiving & inspection Purchasing Customer service Domestic sales International sales FabricationAssemblyTesting Production scheduling Project coordination

Dedicated Project Team Zeus Electronics, Inc. President Human resources Finance and administration MarketingEngineeringManufacturingProcurement Project manager Project team

Project Organization Structure Central Engineering Systems, Inc. President Marketing Human resources EngineeringManufacturingProcurement Finance and administration Legal Alpha Project Project Manager Beta Project Project Manager EngineeringSubcontractors ManufacturingProcurement Other projects Electrical Mechanical Software Fabrication Assembly Test Systems Hardware Software Subcontractor X Subcontractor Y Subcontractor Z Assembly Test

Matrix Organization Structure

Projects and Organizational Change Economic Conditions –Globalization –Information Flows Technology Landscape –Growth –Obsolescence Competition –See Above Interdependent Systems –Moving “Bottlenecks”

The New PM Realities Shorter Timelines –Years to Months Organizational Uncertainty –“Turf battles” Employee Attrition –Downsizing, Mergers, Acquisitions –“Free Agency” FUD Cost Containment Efforts

Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure

Key Dimensions Defining an Organization’s Culture

Cultural Dimensions of an Organization Supportive of Project Management

Network of Relationships Project manager Team Project Team Project Functional managers Administrative support Project managers Project sponsors Top management Customers Other organizations Government agencies Contractors

Source: Adapted from A. R. Cohen, and David L. Bradford, Influence without Authority New York: John Wiley and sons, 1990). Reprinted by permission of John Wiley & Sons, Inc. Commonly Traded Organizational Currencies Task-related currencies ResourcesLending or giving money, budget increases, personnel, etc. AssistanceHelping with existing projects or undertaking unwanted tasks. CooperationGiving task support, providing quicker response time, or aiding implementation. InformationProviding organizational as well as technical knowledge. Position-related currencies AdvancementGiving a task or assignment that can result in promotion. RecognitionAcknowledging effort, accomplishments, or abilities. VisibilityProviding a chance to be known by higher-ups or significant others in the organization. Network/contactsProviding opportunities for linking with others.

Commonly Traded Organizational Currencies Inspiration-related currencies VisionBeing involved in a task that has larger significance for the unit, organization, customer, or society. ExcellenceHaving a chance to do important things really well. Ethical correctnessDoing what is “right” by a higher standard than efficiency. Relationship-related currencies AcceptanceProviding closeness and friendship. Personal supportGiving personal and emotional backing. UnderstandingListening to others’ concerns and issues. Personal-related currencies Challenge/learningSharing tasks that increase skills and abilities. Ownership/involvementLetting others have ownership and influence. GratitudeExpressing appreciation. Source: Adapted from A. R. Cohen, and David L. Bradford, Influence without Authority New York: John Wiley and sons, 1990). Reprinted by permission of John Wiley & Sons, Inc.

Projects and Organizational Effectiveness