1 Chap 3 Organization: Structure and Culture

2 Chap 3 We have defined our corporate strategy and method for selecting our project. We must define what is the organizational structure which fits our company and provides the best chance for a successful project. What are our choices for structure? How does our corporate culture impact this choice? What’s Next

3 Chap 3 Functional Organization Uses existing Organizational Structure. Project Manager has high level responsibility but delegates the tasks and management of each task to the appropriate department. Task Control: Functional Manager Resource Control: Functional Manager Project Control: Project Manager Advantages No Change Flexibility In depth Expertise Easy Post Project Transition Disadvantages Lack of focus Poor integration Slow Lack of Ownership

4 Chap 3 Functional Organizations

5 Chap 3 Dedicated Teams Team members are focused solely on the project. Functional skills are identified and one or more personnel temporarily assigned to the project team for the duration of the project. Project Manager has control and responsibility. Task Control: Project Manager Resource Control: Project Manager Project Control: Project Manager Advantages: Simple Fast Cohesive Cross functional Integration Disadvantages Expensive Internal Strife Limited Tech Expertise Difficult Post-Project Transition

6 Chap 3 Dedicated Project Team

7 Chap 3 Project Organizational Structure

8 Chap 3 Matrix Team Each member supports the project but also has functional responsibilities. Project Manager: What, When, How much, How well. Functional Mgr: How will, impact on functional, functional integration. Negotiated: Who will, Where will, Why will, Is task ok. Advantages Efficient Stronger Project Focus Easier Post-Project Transition Flexible Disadvantages Dysfunctional Conflict Infighting Stressful Slow Issues Depend on Matrix Form: Weak; Balanced; Strong

9 Chap 3 Matrix Organization Structure

10 Chap 3 Rated Effectiveness of Project Structures by Type of Project

11 Chap 2 The Right Project Structure? Size of project Strategic Importance Novelty and need for innovation Environmental complexity Budget and time requirements Stability of resource requirements How do these factors impact which structure to use?

12 Chap 3 Defining an Organization’s Culture

13 Chap 3 Organization Supportive of Project Management

14 Chap3 Proposed Project Organization for the Jaguar Project

15 Chap3 Jaguar Master Plan