Information Systems Project Management—David Olson
3-1
Chapter 3: Project Organization
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-2
Learning Outcomes
• Students be able to explain organizatin
structure in project management
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-3
Discussion Topics
• Organization a system to achieve goals
• Alternative organizational structures (1)
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-4
References
•
•
Information Systems Project Management,
David Olson, Olson, David L., 2003,
Introduction to Information Systems
Project Management, 2nd Ed.,
McGrawHill, ISBN: 0-07-282402-6.
Schwalbe, Kathy, 2003, Information
Technology Project Management, 3rd Ed.,
Course Technology, Inc., ISBN: 0619159847.
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-5
Organization Designs
• there are a number of options
• Project Managers need to understand
relative advantages and disadvantages
of each
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-6
Organization Structure
• range of activities organization does
• management hierarchy
– reporting relationships
• major subdivisions
• responsibilities & type of work for each
subdivision
• official lines of authority & communication
Informal organization also important
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-7
Alternative Structures
• there are a number of options
• best depends on goals, type of work, environment
• DIFFERENTIATION - organizational specialization
–
–
–
–
–
functional
geographic
product
customer
process
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-8
Functional Organization
integration by rules, procedures, coordinated plans,
budgets
Hieronymus Botch
CEO
Bean Kounter
Accounting
Silas Marner
Finance
Snidely Whiplash
Marketing
Atlanta
John Doe
Production
Phoenix
works well in repetitive, stable environments
the most prevalent form
© McGraw-Hill/Irwin 2004
Siegfried Hill
MIS
Butte
Information Systems Project Management—David Olson
3-9
Geographic Differentiation
Standardized accounting and reporting procedures
John McGraw
CEO
Dan McGann
St Louis
TV sales
Production
Joe Kelley
Baltimore
Telemarket
Production
Can tailor to unique requirements of locale
Often used with functional within regions
© McGraw-Hill/Irwin 2004
Cy Seymour
New York
special order
Information Systems Project Management—David Olson
3-10
Product Differentiation
If produce a variety of products.
Megaglomerate
Octopi
Dr. Sweitzer
Tobacco
J. Ripper
Health Products
production
A. Onassis
Tankers
marketing
J. Helms
Environmental
marketing
legal
Integration between subdivisions tends to be low
use standardized financial & reporting
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-11
Customer Differentiation
If a particular customer very important
Gunn Runner
Overnight Delivery
George Patton
Military Sales
Che Guevera
covert sales
functions
geographic
A. Nobel
special ops
explosives
peace prizes
Integration level depends on interdependence of
products (usually low)
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-12
Process Differentiation
some logical process basis for differentiation
Little 600 Consulting
Phyllis Knight
Customer
Contactor
Systems
Analysis
Programming
need more integration, as problem in one area
affects others; task forces, teams
© McGraw-Hill/Irwin 2004
Customer
Training
Information Systems Project Management—David Olson
3-13
Project Organization
• traditional organizational design
– when change required, add layers of mgmt, rules
– less flexibility, slow
• Projects
complexity
uncertainty
change
unpredictability
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-14
Project Organizations
• need to be highly differentiated to meet variety of
problems
• need to be highly integrated to respond rapidly
• need to be highly flexible
• must integrate subunits through
horizontal relationships
• must have structures suited to unique
environments
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-15
Comparison
Project
Traditional
project
manager
supreme
high ruler
big
boss
little
boss
big
boss 2
another
one
little
boss 2
etc
staff
people
designer
folk
rigid, clumsy
customer
liaison
worker
bees
horizontal communication
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
Advantages of the Traditional (Classic)
Organization
3-16
•
•
•
•
•
Easier budgeting and cost control are possible
Better technical control is possible
Flexibility in the use of manpower
A broad manpower base to work with
Continituity in the functional disciplines:
policies, procedures, and lines of responsibility
are easily defined and understandable
• Admits mass production activities within
established specifications
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
Advantages of the Traditional (Classic)
Organization (Cont’d)
3-17
• Good control over personnel, since each
employee hone and only one person to report
to
• Communication channels are vertical and well
established
• Quick reaction capability exits, but may be
dependent upon the priorities of the functional
managers
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
Disadvantages of the Traditional
(Classical) Organization
3-18
• No one individual is directly for the total
project
• Does not provide the project-oriented
emphasis necessary to accomplish the project
tasks
• Coordination becomes complex, and additional
lead time is required for approval of decisions
• Decision normally favor the strongest
functional groups
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
Disadvantages of the Traditional
(Classical) Organization
3-19
• No customer focal point
• Response to customer needs is low
• Difficulty in pinpointing responsibility; this is
the result of little or no direct project reporting,
very little project-oriented planning and no
project authority
• Motivation and innovation are decreased
• Ideas tend to be functionally oriented with
little regard for ongoing projects
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-20
Pure Project Organizations
if high complexity, major resource
requirements, heavy stake outcome
PURE PROJECT organization appropriate
separate organization created for this goal
TYPES
PROJECT CENTER
STAND-ALONE PROJECT
PARTIAL PROJECT
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson
3-21
Summary
• organization structure is means to
achieve goals & respond to problems
• differentiation
• project organizations more flexible
• need to know criteria for appropriate
project organization structure
© McGraw-Hill/Irwin 2004