1

Chap 3

Organization: Structure and Culture

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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?

What’s Next

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Chap 3

Functional Organization

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 ManagerResource Control: Functional ManagerProject Control: Project Manager

Advantages• No Change• Flexibility• In depth Expertise• Easy Post Project Transition

Disadvantages• Lack of focus• Poor integration• Slow• Lack of Ownership

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Chap 3

Functional Organizations

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Chap 3

Dedicated Teams

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 ManagerResource Control: Project ManagerProject Control: Project Manager

Advantages:• Simple• Fast• Cohesive• Cross functional Integration

Disadvantages• Expensive• Internal Strife• Limited Tech Expertise• Difficult Post-Project Transition

6

Chap 3

Dedicated Project Team

7

Chap 3

Project Organizational Structure

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Chap 3

Matrix Team

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

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Chap 3

Matrix Organization Structure

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Chap 3

Rated Effectiveness of Project Structures by Type of Project

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Chap 2

The Right Project Structure?

• 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?

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Chap 3

Defining an Organization’s Culture

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Chap 3

Organization Supportive of Project Management

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Chap3

Proposed Project Organization for the Jaguar Project

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Chap3

Jaguar Master Plan