Quản trị kinh doanh - Chapter 4: Project organisational structures and cultures

CHAPTER 4Project Organisational Structures and CulturesLearning Elements4.1. Understand the different project organisational structures that broadly define how the project fits with the organisational structures that may already exist in an organisation. 4.2. Realise the importance of an organisation’s culture and the effect it can have on the management of a project. Project Management StructuresChallenges to organising projectsThe uniqueness and short duration of projects relative to ongoing longer-term organisational activities.The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas 1. Functional organisations2. Dedicated project teams3. Matrix arrangementWeak matrixBalanced matrixStrong matrixProject Management Structures (cont.)Functional OrganisationsDifferent segments of the project are delegated to respective functional units.Coordination is maintained through normal management channels.Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success. Functional Organisations (cont.)AdvantagesNo structural changeFlexibilityIn-depth expertiseEasy post-project transitionDisadvantagesLack of focusPoor integrationSlowLack of ownership3–6Functional Organisations (cont.)Dedicated Project TeamsTeams operate as separate units under the leadership of a full-time project manager.In a projectised organisation, where projects are the dominant form of business, functional departments are responsible for providing support for its teams.Dedicated Project Teams (cont.)AdvantagesSimpleFastCohesiveCross-functional integrationDisadvantagesExpensiveInternal strifeLimited technological expertiseDifficult post-project transition3–9Dedicated Project Teams (cont.)Dedicated Project Teams (cont.)Matrix OrganisationsWeak formThe authority of the functional manager predominates and the project manager has indirect authority.Balanced formThe project manager sets the overall plan and the functional manager determines how work to be done.Strong formThe project manager has broader control and functional departments act as subcontractors to the project. Matrix Organisations (cont.)AdvantagesEfficientStrong project focusEasier post-project transitionFlexibleDisadvantagesDysfunctional conflictInfightingStressfulSlow3–13Matrix Organisations (cont.)What is the Right Project Management Structure?Organisation (form) considerationsHow important is the project to the firm’s success?What percentage of core work involves projects?What level of resources (human and physical) are available?3–15What is the Right Project Management Structure? (cont.)Project considerationsSize of projectStrategic importanceNovelty and need for innovationNeed for integrationEnvironmental complexityBudget and time constraintsStability of resource requirements3–16Organisational CultureA system of shared norms, beliefs, values and assumptions which bind people together, thereby creating shared meanings. Organisational Culture (cont.)The ‘personality’ of the organisation that sets it apart from other organisationsProvides a sense of identify to its membersHelps to legitimise the management system of the organisationClarifies and reinforces standards of behaviourKey Dimensions Of Organisational Culture1 Member identity2 Team emphasis3 Management focus4 Unit integration5 Control6 Risk tolerance7 Reward criteria8 Conflict tolerance9 Means versus end orientation10 Open-systems focusOrganisational CultureIdentifying Cultural CharacteristicsStudy the physical characteristics of an organisationPublic documentsRead about the organisation.BehaviourObserve how people interact within the organisation.FolkloreInterpret stories and folklore surrounding the organisation.Identifying Cultural Characteristics (cont.)Key Termsbalanced matrixdedicated project teamfunctional structurematrixorganisational cultureprojectitisProject Management Office (PMO)projectised organisationstrong matrixweak matrix