Chap 3
Organization:
Structure and Culture
1
What’s Next
Chap 3
We have defined our corporate strategy and
method for selecting our project.
We must define what is the organizational structure
which fits our company and provides the best chance for
a successful project.
What are our choices for structure?
How does our corporate culture impact this choice?
2
Functional Organization
Chap 3
Uses existing Organizational Structure.
Project Manager has high level responsibility but delegates the
tasks and management of each task to the appropriate
department.
Task Control:
Functional Manager
Resource Control: Functional Manager
Project Control:
Project Manager
Advantages
• No Change
• Flexibility
• In depth Expertise
• Easy Post Project Transition
Disadvantages
• Lack of focus
• Poor integration
• Slow
• Lack of Ownership
3
Functional Organizations
Chap 3
4
Dedicated Teams
Chap 3
Team members are focused solely on the project.
Functional skills are identified and one or more personnel
temporarily assigned to the project team for the duration of
the project. Project Manager has control and responsibility.
Task Control:
Project Manager
Resource Control: Project Manager
Project Control:
Project Manager
Advantages:
• Simple
• Fast
• Cohesive
• Cross functional Integration
Disadvantages
• Expensive
• Internal Strife
• Limited Tech Expertise
• Difficult Post-Project Transition
5
Dedicated Project Team
Chap 3
6
Project Organizational Structure
Chap 3
7
Matrix Team
Chap 3
Each member supports the project but also has functional responsibilities.
Project Manager: What, When, How much, How well.
Functional Mgr: How will, impact on functional, functional integration.
Negotiated: Who will, Where will, Why will, Is task ok.
Advantages
• Efficient
• Stronger Project Focus
• Easier Post-Project Transition
• Flexible
Disadvantages
• Dysfunctional Conflict
• Infighting
• Stressful
• Slow
Issues Depend on Matrix Form: Weak; Balanced; Strong
8
Matrix Organization Structure
Chap 3
9
Rated Effectiveness of Project Structures
by Type of Project
Chap 3
10
The Right Project Structure?
Chap 2
• Size of project
• Strategic Importance
• Novelty and need for innovation
• Environmental complexity
• Budget and time requirements
• Stability of resource requirements
How do these factors impact
which structure to use?
11
Defining an Organization’s Culture
Chap 3
12
Organization Supportive of
Project Management
Chap 3
13
Proposed Project Organization for the
Jaguar Project
Chap3
14
Jaguar Master Plan
Chap3
15