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Chapter Three
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Where We Are Now
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Chapter Outline
 Project Management Structures
 What Is the Right Project Management Structure?
 Organizational Culture
 Implications of Organizational Culture for Organizing
Projects
 The Five-Stage Team Development Model
 Situational Factors Affecting Team Development
 Building High-Performance Project Teams
 Managing a Virtual project team
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Chapter Three
Organization: Structure
and Culture
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the classroom.
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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
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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.
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Functional Organizations
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Functional Organizations
FIGURE 3.1
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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
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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.
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Dedicated Project Team
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FIGURE 3.2
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Projectized Organization Structure
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
FIGURE 3.3
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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
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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.
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Matrix Organization Structure
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FIGURE 3.4
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Division of Project Manager and Functional Manager
Responsibilities in a Matrix Structure
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TABLE 3.1
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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.
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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.
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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.
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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
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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
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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
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Key Dimensions Defining an Organization’s Culture
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FIGURE 3.5
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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.
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Cultural Dimensions of an Organization Supportive of Project Management
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FIGURE 3.7
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Chapter Three
Managing Project Teams
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the classroom.
High-Performing Teams
Synergy
•
Positive synergy
1 + 1 + 1 + 1 + 1 = 10
•
Negative synergy
1+1+1+1+1=2
Characteristics of High-Performing Teams
1.
Share a sense of common purpose
2.
Make effective use of individual talents and expertise
3.
Balance role and share tasks
4.
Exert energy toward problem solving
5.
Accept differences of opinion and expression
6.
Encourage risk taking and creativity
7.
Set high personal performance standards
8.
Identify source of both professional and personal growth
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FIGURE 3.7
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The Five-Stage Team Development Model
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FIGURE 3.7
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Situational Factors Affecting Team Development
Conditions Favoring Development of High-Performing Project Teams
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There are 10 or fewer members per team.
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Members volunteer to serve on the project team.
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Members serve on the project from beginning to end.
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Members are assigned to the project full time.
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Members are part of an organization culture that fosters cooperation
and trust.
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Members report solely to the project manager.
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All relevant functional areas are represented on the team.
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The project involves a compelling objective.
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Members are located within conversational distance of each other.
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FIGURE 3.7
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Building High-Performance Project Teams
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FIGURE 3.7
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Recruiting Project Members
Factors affecting recruitment
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The importance of the project
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The management structure being used to complete the project
Considerations that need to be factored into the recruitment process
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Problem-solving ability
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Availability
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Technological expertise
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Credibility
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Political connections
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Ambition, initiative, and energy
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Familiarity
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FIGURE 3.7
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Conducting Project Meetings
The first project team meeting—project kick-off meeting
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Establishing ground rules
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Planning decisions
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Tracking decisions
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Managing change decisions
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Relationship decisions
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Managing subsequent project meetings
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FIGURE 3.7
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Establishing Team Norms
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Confidentiality is maintained; no information is shared outside the team
unless all agree to it.
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It is acceptable to be in trouble, but it is not acceptable to surprise others.
Tell others immediately when deadlines or milestones will not be reached.
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There is zero tolerance for bulling a way through a problem or an issue.
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Agree to disagree, but when a decision has been made, regardless of
personal feelings, move forward.
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Respect outsiders, and do not flaunt one’s position on the project team.
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Hard work does not get in the way of having fun.
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FIGURE 3.7
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Establishing a Team Identity
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Effective use of meetings
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Co-location of team members
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Creation of project name
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Get the team to build or do something together early on
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Team rituals
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FIGURE 3.7
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FIGURE 3.7
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Requirement for an Effective Project Vision
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Managing Project Reward Systems
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The reward system encourages team performance and extra effort.
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Most project managers advocate the use of group rewards.
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To increase the value of rewards, rewards need to have lasting
significance.
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Some project managers have to use negative reinforcement to motivate
project performance.
-
There are times when we need to reward individual performance.
Examples of this kind of rewards include
•
Letter of recommendation
•
Public recognition for outstanding work
•
Job assignments
•
Flexibility
FIGURE 3.7
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Orchestrating the Decision-Making Process
Facilitating group decision making involves four major steps.
Identifying problems
Generating alternatives
Reaching a decision
Following up
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FIGURE 3.7
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Managing Conflict within the Project
Functional
Conflicts
Dysfunctional
Conflicts
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FIGURE 3.7
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Managing Conflict within the Project
Encouraging Functional Conflict
-
Functional conflict plays a critical role in obtaining a deeper understanding of the issues
and coming up with the best decisions possible.
-
Project managers can legitimize dissent within the team by
•
Designating someone to play the role of devil’s advocate.
•
Asking the group to take 15 minutes to come up with all the reasons the team
should not pursue a course of action.
Managing Dysfunctional Conflict
-
Mediate the conflict
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Arbitrate the conflict
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Control the conflict
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Accept the conflict
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Eliminate the conflict
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FIGURE 3.7
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Managing Virtual Project Teams
Two biggest challenges involved in managing a virtual project team are
1.
Developing trust
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Hold a face-to-face meeting at the beginning and orchestrate the exchange of social
information
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Set clear roles for each team member
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Form teams with people who have already worked effectively together on projects, if
possible
2.
Developing effective patterns of communication
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Don’t let team members vanish
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Establish a code of conduct to avoid delays
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Establish clear norms and protocols for surfacing assumptions and conflicts
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Use electronic video technology to verify work
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Share the pain
FIGURE 3.7
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