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Organisational Structures
PMB Week 5, Sept 15 PMB-WK5
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Outline This Lecture Covers LO2 and AC2.1 AC2.2
Review of Project Scheduling Organisational Structures Project Team Roles Monitoring & Control Systems PMB-WK5
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Forms of Organization Structure
Functional organizations – group of people performing similar activities into departments Project organizations – group of people into project teams on temporary assignments Matrix organizations – create a dual hierarchy in which functions and projects have equal prominence PMB-WK5
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Functional Organizational Structure
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Functional Structures
Strengths Weaknesses Firm’s design maintained Fosters development of in-depth knowledge Standard career paths Project team members remain connected with their functional group Functional siloing Lack of customer focus Projects may take longer Siloing means when people are unwilling to cooperate with others.
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Silo Effect Found in Functional Structures
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Project Organizational Structure
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Project Structures Strengths Weaknesses Project manager sole authority
Improved communication Effective decision-making Creation of project management experts Rapid response Chance of loyalty to the project rather than the firm No pool of specific knowledge Workers unassigned at project end
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Matrix Organizational Structure
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Matrix Structures Strengths Weaknesses Suited to dynamic environments
Equal emphasis on project management and functional efficiency Promotes coordination across functional units Maximizes scarce resources Dual hierarchies mean two bosses Negotiation required in order to share resources Workers caught between competing project & functional demands Scarce means short in supply
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Dedicated Project Organizations
Organizations can sometimes gain tremendous benefit from creating a fully-dedicated project organization Project manager authority expanded Functional alignment abandoned in favor of market opportunism Focus on external customer PMB-WK5
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Project roles and governance
Source : (Maylor, 2010 ; pp. 62 ) PMB-WK5
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Project Roles & Responsibilities
Project Sponsor : The Person who “owns” the project from a business perspective and who is (usually) responsible to the organisation for the projects business case Project Manager : The Person given the day to day control of a project under the delegated authority of the project board or sponsor. User : The beneficiaries of a product or service obtained from the project PMB-WK5
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Project Roles & Responsibilities
Project Champion : A project champion, also known as a project advocate, is a person who supports the team through the completion of a project. He provides moral, psychological, physical support and resources to the team, whilst advocating the benefits of the project to its stakeholders. Project Board : The group of persons charged with the responsibility for delivering a project. Usually has three distinct roles (Executive, Senior User & Senior Supplier). Team : Everyone involved directly or indirectly in the execution of the Project. PMB-WK5
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CONTROL Control is the act of comparing progress to plan so that corrective action can be taken when a deviation from planned performance occurs. This refers the use of information as the primary ingredient of control, rather than power. PMB-WK5
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The Project Control Cycle
Source ( Pinto, 2013)
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Project S-Curve Showing Negative Variance
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Types of Control Systems
Configuration Control Design Control Trend monitoring Document Control Acquisition Control Specification Control Further Reading ( Pinto, 2013 : pp. 178) PMB-WK5
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Types of control systems
Configuration control : includes procedures that monitor emerging project scope against the original baseline scope. Design control : relates to systems for monitoring the project’s scope, schedule, and costs during the design stage. (Planning) Trend monitoring : is the process of tracking the estimated costs, schedules, and resources needed against those planned. Trend monitoring shows significant deviations from norms for any of these important project metrics. PMB-WK5
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Types of Control Systems
Document control : ensures that important documentation is compiled and disseminated in an orderly and timely fashion Acquisition control : monitors systems used to acquire necessary project equipment, materials, or services needed for project development and implementation. Specification control : ensures that project specifications are prepared clearly, communicated to all concerned parties, and changed only with proper authorization PMB-WK5
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Monitoring and control cycle
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Homework For a particular role within a Business Project,
Research and present one job and person specification. This task should be completed before your PMB-Seminar. Explain what is meant by Configuration Management ? Read Chapter 2 &5 of Pinto PMB-WK5
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References V. K. Verma. (1997). Managing the Project Team
Pinto, Jeffery K. Project Management, Achieving Competitive Advantage Global Edition, 3rd Edition. Pearson Higher Education (UK), 30/06/2013. Project Management: Author: Maylor, Harvey, 4th Edition (Pearson 2010) The Definitive Guide to Project Management, 2nd edition (Pearson 2007) PMB-WK5
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