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ISQM 410 – Project Management

ISQM 410 – Project Management. Chapter 3 – Organization: Structure & Culture. PM Structures. PM structures Functional organization – traditional “stovepipe” Advantages: Project completed within existing organization structure,; no alteration of operations

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ISQM 410 – Project Management

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  1. ISQM 410 – Project Management Chapter 3 – Organization: Structure & Culture

  2. PM Structures • PM structures • Functional organization – traditional “stovepipe” • Advantages: • Project completed within existing organization structure,; no alteration of operations • Maximum flexibility in use of staff • If scope narrow, in-depth expertise can of functional unit can be applied • Normal career paths are within functional divisions are maintained • Disadvantages • Project often lack focus and commitment • Poor integration across functional units • Generally takes longer to complete • Motivation of team members often limited

  3. PM Structures • PM structures • Dedicated project teams – operate separately from rest of the parent organizations • Advantages: • Relatively simple way to complete projects; does not disrupt ongoing operations • Get done more quickly • High level of motivation and dedication • High level of cross-functional integration (if staffed properly) • Disadvantages: • Expensive; loss of economies of scale • Projectitis – we-they divisiveness • Inhibits maximization of technological expertise • What to do with personnel when project is complete

  4. PM Structures • PM structures • Matrix management – hybrid that overlays PM structure on functional hierarchy (can have functional, balanced, or project matrix) • Advantages: • Share resources (more cost efficient) • Stronger project focus by having assigned PM • Access to larger reservoir of talent (homeport return helps with economies of scale & technological expertise) • More flexible utilization of resources • Disadvantages: • Tensions between PMs and functional organizations can breed conflicts (need to be managed) • Resource sharing can lead to conflict/competition • Violates unity of command (two bosses) • Decision making can get bogged down

  5. PM Structures • Organization: Structure & Culture • Factors in PM Structure Selection • Size of project • Strategic importance • Novelty & the need for innovation • Need for integration (number of departments) • Environmental complexity (external interfaces) • Budget & time constraints • Stability of resource requirements • *** Higher the levels of these seven factors, the more autonomy & authority the PM & team require >> matrix or dedicated teams are preferred

  6. PM Structures • Organization: Structure & Culture • Characteristics of organizational culture and their relationship to PM • Member identity – job vs. organization • Team emphasis – individual vs. group • Management focus – task vs. people • Unit integration – independent vs. interdependent • Control – loose vs. tight • Risk tolerance – low vs. high • Reward criteria – performance vs. other • Conflict tolerance – low vs. high • Means-end orientation – means vs. ends • Open-system focus – internal vs. external

  7. PM Structures • Identifying Cultural Characteristics • Involves synthesizing the following: • What people tell you – content and how is it communicated • How they act – is behavior consistent with words • Individual & organizational responses to events • Physical environment – dress code; how is position & status identified and perceived; locus of power • Business environment – what issues are important (explicit vs. implicit); financial vs. people • How people interact – slow & methodical vs. urgent & spontaneous; rituals; values; level of candor: who talks & how. • Critical in being able to adapt and contribute to the organization. • Personal – cultural fit is critical to success (person & organization)

  8. PM Structures • Implications of Organizational Culture for Organizing Projects • Cultural dimensions must be optimized for effective project management • Some dimensions require balance (middle-of the-road) > task/people focus; ends/means focus • Other dimensions require more emphasis on one end of the continuum > Focus on external environment; greater interdependence & group focus (required for effective teaming); greater risk tolerance; greater conflict tolerance • Greater project authority/resources necessary in orgs. That have strong, negative cultural currents • Less formal authority & fewer dedicated resources needed in orgs. Where cooperation and interdependence have a strong cultural presence • Must be interpreted in the context of business environment, systems, and processes (capability)

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