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Because learning changes everything.® Chapter Three Organization: Structure and Culture © 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Where We Are Now © McGraw-Hill Education 2 Learning Objectives 03-01 03-02 03-03 03-04 03-05 03-06 03-07 Identify different project management structures and understand their strengths and weaknesses. Distinguish three different types of matrix structures and understand their strengths and weaknesses. Describe how project management offices (PMOs) can support and improve project execution. Understand organizational and project considerations that should be considered in choosing an appropriate project management structure. Appreciate the significant role that organizational culture plays in managing projects. Interpret the culture of an organization. Understand the interaction between project management structure and the culture of an organization. © McGraw-Hill Education 3 Chapter Outline 3.1 Project Management Structures 3.2 Project Management Office (PMO) 3.3 What Is the Right Project Management Structure? 3.4 Organizational Culture 3.5 Implications of Organizational Culture for Organizing Projects © McGraw-Hill Education 4 3.1 Project Management Structures Three different project management structures are: 1. Functional organization 2. Dedicated project teams 3. Matrix structure • Weak matrix • Balanced matrix • Strong matrix © McGraw-Hill Education 5 Organizing Projects within the Functional Organization • Top management decides to implement the project, and different segments of the project are distributed to appropriate areas. • Coordination is maintained through normal management channels. • It is commonly used when one functional area plays a dominant role in completing the project or has a dominant interest in the success of the project. © McGraw-Hill Education 6 Functional Organizations © McGraw-Hill Education FIGURE 3.1 7 Advantages and Disadvantages of using Functional Organization to Administer and Complete projects Advantages Disadvantages 1. No change 1. Lack of focus 2. Flexibility 2. Poor integration 3. In-depth expertise 3. Slow 4. Easy post-project transition 4. Lack of ownership © McGraw-Hill Education 8 Organizing Projects as Dedicated Teams • Dedicated project teams operate as units separate from the rest of the parent organization. • A full-time project manager is designated to pull together a core group of specialists who work full time on the project. • The project manager recruits necessary personnel from both within and outside the parent company. • In a projectized organization where projects are the dominant form of business, the entire organization is designed to support project teams. • “Projectitis” is referred to as a negative dimension to dedicated project teams. A we-they attitude can emerge between project team members and the rest of the organization. © McGraw-Hill Education 9 Dedicated Project Team © McGraw-Hill Education FIGURE 3.2 10 Projectized Organization Structure © McGraw-Hill Education FIGURE 3.3 11 Strengths and Weaknesses of the Dedicated Project Team Approach Strengths Weaknesses 1. Simple 1. Expensive 2. Fast 2. Internal strife 3. Cohesive 3. Limited technological expertise 4. Cross-functional integration 4. Difficult post-project transition © McGraw-Hill Education 12 Organizing Projects within a Matrix Arrangement • Matrix management is a hybrid organizational form in which horizontal project management structure is overlaid on the normal functional hierarchy. • There are usually two chains of command, one along functional lines and the other along project lines. • Project participants report simultaneously to both functional and project managers. • The matrix structure is designed to utilize resources optimally. • Individuals work on multiple projects as well as being capable of performing normal functional duties. • It attempts to achieve greater integration by creating and legitimizing the authority of a project manager. • It provides dual focus between functional/technical expertise and project requirements. © McGraw-Hill Education 13 Matrix Organization Structure © McGraw-Hill Education FIGURE 3.4 14 Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure © McGraw-Hill Education TABLE 3.1 15 Different Matrix Forms Weak matrix • This form is very similar to a functional approach with the exception that there is a formally designed project manager responsible for coordinating project activities. • Functional managers are responsible for managing their segment of the project. • The project manager acts as a staff assistant who draws the schedules and checklists, collects information on the status of the work, and facilitates project completion. © McGraw-Hill Education 16 Different Matrix Forms (Continued) Balanced matrix • The project manager is responsible for defining what needs to be accomplished. The project manager establishes the overall plan for completing the project, integrates the contribution of the different disciplines, set schedules, and monitors progress. • The functional managers are concerned with how it will be accomplished. The functional managers are responsible for assigning personnel and executing their segment of the project according to the standards and schedules set by the project manager. © McGraw-Hill Education 17 Different Matrix Forms (Continued) Strong matrix • The project manager controls most aspects of the project, including scope trade-offs and assignment of functional personnel. The project manager controls when and what specialists do and has final say on major project decisions. • The functional managers have title over their people and are consulted on a need basis. The functional managers serve as subcontractors for the project. © McGraw-Hill Education 18 Advantages and Disadvantages of Matrix Management Advantages Disadvantages 1. Efficient 1. Dysfunctional conflict 2. Strong project focus 2. Infighting 3. Easier post-project transition 3. Stressful 4. Flexible 4. Slow © McGraw-Hill Education 19 3.2 Project Management Office (PMO) • Is a centralized unit within an organization or a department that oversees and supports the execution of projects. • Plays a critical role in helping matrix systems mature into more effective project delivery platforms. • Can be characterized in different kinds: • Weather station—tracks and monitors project performance. • Control tower—improves project execution. • Resource pool—provides the organization with a cadre of trained project managers and professionals. • Command and control center—has direct authority over the project. © McGraw-Hill Education 20 3.3 What Is the Right Project Management Structure? Organization Considerations • How important is the project management to the success of the firm? • • What percentage of core work involves projects? What level of resources are available? Project Considerations • Size of project • Strategic importance • Novelty and need for innovation • Need for integration (number of departments involved) • Environmental complexity (number of external interfaces) • Budget and time constraints • Stability of resource requirements © McGraw-Hill Education 21 3.4 Organizational Culture Organizational Culture Defined • Is a system of shared norms, beliefs, values, and assumptions that blinds people together, thereby creating shared meanings. • Reflects the “personality” of the organization. • Performs several important functions in organizations. • Provides a sense of identity for its members • Helps legitimize the management system • Clarifies and reinforces standards of behavior • Helps create social order © McGraw-Hill Education 22 Key Dimensions Defining an Organization’s Culture © McGraw-Hill Education FIGURE 3.5 23 Identifying Cultural Characteristics • Study the physical characteristics of an organization. • Read about the organization. • Observe how people interact within the organization. • Interpret stories and folklore surrounding the organization. © McGraw-Hill Education 24 Organizational Culture Diagnosis Worksheet © McGraw-Hill Education FIGURE 3.6 25 3.5 Implications of Organizational Culture for Organizing Projects • Project managers interact with: • The culture of their parent organizations as well as the subcultures of various departments. • The project’s clients or customer organizations. • Other organizations connected to the project such as suppliers and vendors, subcontractors, consulting firms, government and regulatory agencies, and community groups. • “A riverboat trip” is a metaphor describing the relationship between organizational culture and project management. Culture is the river and the project is the boat. © McGraw-Hill Education 26 Cultural Dimensions of an Organization Supportive of Project Management © McGraw-Hill Education FIGURE 3.7 27 Key Terms Balanced matrix Dedicated project team Matrix Organizational culture Projectitis Projectized organization Project management office (PMO) Strong matrix Weak matrix © McGraw-Hill Education 28 Because learning changes everything. www.mheducation.com © 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. ® المملكة العربية السعودية وزارة التعليم الجامعة السعودية اإللكترونية Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 2 Project Management (MGT323) Deadline: 09/04/2022 @ 23:59 Course Name: Project Management Course Code:MGT323 Student’s Name: Semester: II CRN: Student’s ID Number: Academic Year:2021-22, II Term For Instructor’s Use only Instructor’s Name: Dr Farhat Anjum Students’ Grade: Marks Obtained/Out of 10 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. Atleast two Scholarly Peer- Reviewed Journals are required as references. • All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. • Do not make any changes in the cover page. Assignment Workload: • This Assignment comprise of a Case Study. • Assignment is to be submitted by each student individually. Assignment Purposes/Learning Outcomes: After completion of Assignment-2 students will able to understand the 1. Defining the concepts, theories and approaches of project management. (L.O-1.1) 2. Analyze to work effectively and efficiently as a team member for project related cases. (L.O-3.1) Assignment-2: Case Study #038; Discussion questions Assignment Question: (Marks 10) Please read the Case-3.2 “Horizon Consulting.” from Chapter 3 “Organization: Structure and Culture” given in your textbook – Project Management: The Managerial Process 8th edition by Larson and Gray page no: 101-103 also refer to specific concepts you have learned from the chapter to support your answers. Answer the following questions for Part-1, Part-2. Part-1: Case study questions 1. How successful was -meeting? Explain in 100 words (1 Mark). 2. What factors contributed to the success or failure of this meeting? Explain in 100 words (1 Mark). 3. What kind of project management structure does Horizon use? Is it the right structure? Explain in 300 words (4 Marks) Part-2: Discussion questions Please read Chapter 3 “Organizaton: Structure and Culture” carefully and then give your answers on the basis of your understanding. 4. Going to college is analogous to working in a matrix environment in that most students take more than one class and must distribute their time across multiple classes. What problems does this situation create for you? How does it affect your performance? How could the system be better managed to make your life less difficult and more productive? (2 Marks) (150-200 words) 5. You work for Barbata Electronics. Your R#038;D people believe they have come up with an affordable technology that will double the capacity of existing MP3 players and use an audio format that is superior to MP3. The project is code named KYSO (Knock Your Socks Off). What kind of project management structure would you recommend they use for the KYSO project? What information would you like to have to make this recommendation and why? (2 Marks) (150-200 words). Answers: 1. 2. 3. 4. 5.
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