ORGANIZATIONAL STRUCTURES – Problems
Problem 1
A company has fifteen projects going on at once. Three projects are over $5 Millions, seven
projects are between $1 million and $3 million and Five projects are between $500 000 and
$700 000. Each project has a full-time project manager. Just based upon this information,
which organizational form would be best? Can all the project managers report to the same
person?
Response
The projected organization seems to be the best one for this situation since we have 15
projects that are going at once. Based on the provided information, there’s no connection
between projects such as supplies, qualification of needed workers and their achievements
so far. Hence, it’s the most suitable organization to take. All the project manager has to
report to the same person who’s the ‘General Manager’.
Problem 2
A major insurance company is considering the implementation of project management. The
majority of the projects in the company are two weeks in duration, with very few existing
beyond one month. Can project management work here?
Response
Project management can work here since it could optimize the time that projects are
taking also it could change the company method within which they are working such as
having projects that could be done at the same time.
Problem 3
A government subcontractor operates with a pure specialized product management
(projectized) organizational structure and has four product lines. All employees are required
to have a top secret security clearance. The subcontractor’s plant is structured such that each
of the four product lines occupies a secured area in the building. Employees wear security
badges that give them access to the different areas. Most of the employees are authorized to
have access only to their area. Only executives have access to all four areas. For security
reasons, functional employees are not permitted to discuss the product lines with each other.
Many of the projects performed in each of the product lines are identical, and severe
duplication efforts exist. Management is interested in converting over to a matrix structure to
minimize the duplication of effort. What problem must be overcome before and during matrix
implementation?
Response
The matrix organization does have some disadvantages and problems, but they need not
be considered insurmountable . This organization is inherently more complex than
either a functional or a pure project organization, since it is the superimposition of one
on the other. The project manager is sometimes faced with a problem of achieving fast
reaction times, primarily since there are so many people to be consulted. A matrix
organization with a number of projects faces real problems with project priorities and
resource allocation. Each project manager will obviously consider his project to have the
highest priority. Similarly, each functional manager will consider that the allocation of
resources and priorities within his department is his own business.
Name : Houssem Eddine SOUID
Class : 3A MIndS