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02
Project Management Framework
02 Project Management Framework:
Learning Objectives
Page 2
Organization Influence
Since Projects are typically part of an organization that is larger than the
Project, the Project is influenced by a number of aspects of the larger
organizational structure:
Organizational Structure
The structure of the performing organization often constrains the availability of
resources.
Page 3
Organization Process
Assets
Page 4
Organizational Influences
Page 5
Organizational Structure
Page 6
Functional Organization
Project
Projectmanagers
managersin
inthis
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haveno
nopower/control.
power/control.
Page 7
Behavioural Differences:
Functional vs. Project Manager
Page 8
Functional Organization:
Characteristics
Each functional group concentrates on performing its own activities
in support of the companys business mission.
A company with a functional structure may periodically undertake
projects, but these are typically in-house projects rather than
projects for external customers.
A strict chain of command might exist, and the corporate culture
might dictate that you follow it.
Roughly translated:
Dont talk to the big boss without first talking to your boss who talks to
their boss who talks to the big boss
Page 9
Project Organization
Functional
Functionalmanagers
managersin
inthis
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organizationhave
haveno
nopower/control
power/control
Page 10
Project Organization:
Characteristics
A full-time project manager has complete project and administrative
authority over the project team.
Project organization structures are found primarily in companies that
are involved in very large projects, i.e., high (multimillion) dollar value
and long (several years) duration.
Project organization structures are prevalent in the construction and
aerospace industries. They are also used in the non business environment,
such as for volunteer-managed projects.
Page 11
Project Organization:
Advantages/Disadvantages
Advantages:
The project team has full control over the resources, including authority
over how the work gets done and by whom.
The project organization is highly responsive to the customer.
Is well positioned to be highly responsive to the project objective and
customer needs because each project team is strictly dedicated to only
one project.
Disadvantages:
Cost-inefficient because of underutilization of resources.
When things are slow, individuals have a tendency to stretch out their work
to fill up the time available
Potential for duplication of activities on several concurrent projects.
There is a low level of knowledge transfer among projects.
Individuals are dedicated to working on one project.
At the end of a project, people may be laid off if there is not a new project
to which they can be assigned leading to team members experiencing Page high12
Matrix Organization
CEO
Project Manager1
Project Manager 2
The idea is that the best of both organizational structures can be realized by
combining them into one. The project objectives are fulfilled and good project
management techniques are utilized while still maintaining a hierarchical
structure in the organization.
It provides the project and customer focus of the project structure, but it
retains the functional expertise of the functional structure.
Page 13
Matrix Organization:
Characteristics
Employees in a matrix organization report to one functional manager
and to at least one project manager.
Its possible that employees could report to multiple project
managers if they are working on multiple projects at one time.
In
Inaanutshell,
nutshell,functional
functionalmanagers
managersassign
assignemployees
employeesto toprojects,
projects,while
whileproject
project
managers
managersassign
assigntasks
tasksassociated
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withthe
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projectininaamatrix
matrixorganization.
organization.
Page 14
Matrix Organization:
Balance of Power
A lot of communication and negotiation takes place
between the project manager and the functional manager
This calls for a balance of power between the two, or one will
dominate the other.
There are Three types of matrix organizations that are
formed as result of the power basis between the project
manager and the functional manager:
Strong matrix
Weak matrix
Balanced Matrix
Page 15
Strong Matrix Organization
Page 16
Weak Matrix Organization
Page 17
Weak Matrix Organization
CEO
Proj. Coordinator
Sometimes when there are too many local projects and becomes increasingly
difficult to exe to them, the CEO may use the services of a project manager in
the role of a Project Coordinator.
The Project Coordinator has some power to make decisions, some authority,
and reports to a higher-level manager, possibly the CEO
The Project Coordinator has power over the individual project managers
Page 18
Balanced Matrix Organization
Page 19
Comparing Organizational
Structures
Functional Weak Matrix Balance Strong Project
Matrix Matrix
Project Project Project
Managers coordinator, coordinator, Project Manager Project Manager Project Manager
Title: project leader project leader, or
project expeditor
Page 20
Project Office
Page 21
Enterprise
Environmental Factors
Page 22
Enterprise Environmental Factors
23
Page 23
Project Stakeholders
Page 24
Project Stakeholders:
Discussion
Stakeholder Definition
People that are involved in the project or affected by the project
activities in a negative or positive way. They may also exert influence
over the project and its results.
Stakeholders include:
project manager the person that manages the project
project sponsor the person that provides the financial resources (funding)
project team persons that will be completing work tasks on n the project
support staff persons that support the administration of the project
customers - the person or organization that will use the product of the
project
Users - the end users that will use the product of the project
Others - suppliers, sellers, owners
Adversaries to the project
Points to remember:
Stakeholders can be outside of performing organization
Society, citizens
Page 25
Project Stakeholders: Discussion
In
Inconflict
conflictsituations,
situations, resolve
resolveconflict
conflictininfavor
favorof
ofthe
the
CUSTOMER!
CUSTOMER!
Page 26
Question and Answers
Page 27