project management organization structure
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Hierarchical structures
Reports, Decides and Communicates-With all mapped on thesame association
Do not work well with iterative and incremental softwaredevelopment process
Manager is not necessarily always right
Project-based structures
Reports, Decides and Communicates-With are differentassociations
Cut down on bureaucracy reduces development time Decisions are expected to be made at each level
Hard to manage
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Hierarchical Structure
Projects with high degree of certainty, stability, uniformity andrepetition.
Requires little communication
Role definitions are clear
When? The more people on the project, the more need for a formal structure
Customer might insist that the test team be independent from thedesign team
Project manager insists on a previously successful structure
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Project-Based Structure
Project with degree of uncertainty
Open communication needed among members
Roles are defined on project basis
When?
Requirements change during development
New technology develops during project
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Corporation X
Human
Resources
Marketing Engineering ProcurementManufacturing
Finance &
Administration
Project Manager
Project Team
MA1 MA2 MA3 EN1 EN2 EN3 MF1 MF2 MF3 PR1 PR2
Forming a (Dedicated) Project Team
Staff are assigned away from various departments to work
full-time on the project.
OtherAreas
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The (dedicated) Project Team lies at one extreme end of the
continuum which starts from undertaking projects using the
(pure) functional form of project organization.
A project manager is selected to head a core group of
personell assigned from two or more functional units of theorganization and who are all required to work full-time on the
project in question.
Project Teams are usually cross-functional in nature and
are a powerful means of dealing with complex assignments which
may be difficult to do using other project organiza-tion forms.
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Advantage
No structural impact on the functional organization occursonly
the tempo-rary siphoning away of functional specialists from their
respective areas for the duration of the project or for a phase of it
when heir input is required in order to complete specialist tasks.
Project completion time is comparatively smaller due to project
personell devoting their efforts to the project in question full-timeand also because the flow of information and decision-making is
generally not hindered by hierachies as it is in the functional form
of organizing projects.
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Advantage
Motivation, feeling of iden-tification and cohesiveness are strong
in the project.
Project personell share a common goal and they also share a
collective responsibility for ensuring the realization of this goal.
Cross-functional cooperation is strongly encouraged and
promoted as a means of achieving the project goal.
Cross-functional teams create a synergy effect which can handle
tasks characterised by a high degree of complexity.
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Disadvantage
A major criticism of the (dedicated) project team relates to the cost
factor. Normally, a larger expense is involved because resources and
facilities are assigned to the project on a full-time basis. Acrossprojects, this may result in a duplication of infrastructure and work.
Projectitisproject personell evolve a collective identity
encapsulating themselves from the enterprise, giving rise to a non-
constructive usand themoutlook. Sometimes this not only
undermines the integration of the project effort back into
mainstream operations but also the subsequent assimilation of
project personell back into their respective functional areas.
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Disadvantage
The project may become over-dependent on the gamut of skills,
expertise and experience held by the project personell and maynot seek to incorporate fresh skills, expertise and experience
which is held by individuals and organiza-tional entities which are
outside the project.
The assimilation of project personell back into their respective
functional units may prove difficult due to their prolonged
absence from their units and the challenge of keeping up with
the developments which have taken place in the functional units
during the project period.
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Determining The Best Project Organization Form
The projects size
The projects strategic importance
The projects innovation requirementThe projects level of required integration across functional
delineations
The project environments complexity
The project budget and time constraintsThe project resource requirement level of stability
In generalthe higher the level of these factors, the
greater is the requirement of autonomy and authority for the
project manager and his/her team in order to ensure the
success of the project (i.e. a strong project matrix or
dedicated project team is desirable).
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Criteria for organizational design decisions (Robert Youker, 1977)
Criterion Functional
Structure
Matrix Structure Project Structure
Uncertainty Low High High
Technology Standard Complicated New
Complexity Low Medium High
Duration Short Medium Long
Size Small Medium Large
Importance Low Medium High
Customer Diverse Medium One
Interdependency
(within)
Low Medium High
Interdependency
(between)
High Medium Low
Time criticality Low Medium High
Resource criticality Depends Depends Depends
Differentiation Low High Medium
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Associations in organizational structures
Reporting association: Used for reporting status information
Decision association
Used for propagating decisions
Communication association Used for exchanging information needed for decisions (e.g.,
requirements, design models, issues).
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Possible Mappings of ToDos to People
One-to-One Ideal but often not worth to be called a project
Many-to-Few
Each project member assumes several roles ("hats")
Danger of overcommittment
Need for load balancing
Many-to-"Too-Many"
Some people don't have significant roles
Bystanders Loosing touch with project
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Assigning Responsibilities To People
To Do List for the Project
Item 1
Item 2
Item 3
Item 4
Item 5
Item 6
Item 7
Item 8
Item 9
Item 1
Item 2
Item 9
Role 1
Item 4Item 5
Item 7
Role 2
Item 3
Item 6
Item 8
Role 3
Person A
Role 1
Role 2
Person B
Role 3
Team A
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Using the Work Breakdown Structure
1. Estimate and schedule the work (Durations, precedences on WBS)
2. Organize and schedule resources (resource allocated WBS)
3. Assign responsibilities(Resource ramp-up, resource allocated WBS)
4. Estimate and allocate costs and budgets (costed WBS)
5. Add up costs to different levels
Task
Levels on the WBS (phase, account/contract)
Cost account
Total project
6. Get resource commitments
7. Schedule start end dates
8. Track expenditures, schedules and performance
Work Breakdown Structure
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Implement Work Breakdown Structure
Subdivision into Smaller Increments
Level 1: Total Project
Level 2: Systems of the Project
Level 3: Subsystems of the Project
Level 4: Units/Equipments
Level 5: Work Packages or Components
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WBS serves several important Purposes, such as:
Subdivision of Work
Identification of Project Levels
Work Sharing between Companies Economic Geographical Distribution of Funds
Implementation of WBS Numbering System (Code) applicable to the
entire Project
Definition of Cost Account Structure
Allocation of Funds
Implementation of Project Control in line with the WBS Code
Assignment of Responsibilities to Companies & Individual Managers
Identification of Interfaces at all Levels
Implementation of Documentation Numbers related to WBS Code
Identification of Work Package
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Work Package Description
Work Package (WP) Identification
Title
Identification of the WP in the WBS (WP Number) Date of the Start and End of the WP
Company or Entity in charge of the WP Performance
Work Package Manager
Description of the WP Tasks to be Performed
Tasks Explicitly Excluded
WP Inputs
Product(s) to be Completed or Delivered
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The
Project Manager
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Leadership Skills:
Vision and Strategy
Establishing Direction
Aligning People Communicating
Negotiating
Motivating and Inspiring
Influencing Organizations
Overcoming Barriers to Change
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General Management Skills:
Planning
Finance and Accounting
Personnel Administration
Technology
Organizational Development
Delegation
Team Building
Conflict Management
Solving Problems
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Communications Skills:
Writing
Listening
Speaking Presenting
Media Relations
Meeting Management
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Role of a project manager
The role of a project manager is affected by the one-
shot nature of the project
The role of a project manager is difficult when team
members are still linked to their permanent workareas
Members may be assigned to several projects
simultaneously
Managers must rely on their communication skills
and powers of persuasion
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Project manager attributes
Leader & manager
Facilitator, coordinator
Communicator
Credibility: Technical/Administrative
Work under pressure
Goal-oriented
Innovator Versatilist
Knowledgeable about the
organization
Political sensitivity
Conflict: sense, confront,
resolve
Can deal with stress, chaos,
ambiguity
Planning and follow-
through
Ethical dilemmas
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Project manager attributes
Specialist
Generalist
Versatilist
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Project manager duties
Reports to senior management
Communicates with users
Plans and schedules
Obtains and allocates resources
Controls risks
Manages people
Coordinates
Implements quality assurance
Controls the budget
Delivers results
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The
Project Team
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Team Formation
Top level Design
Rough Subsystem Decomposition (beforerequirements analysis)
Done during Predevelopment phase
Team Formation done after Top Level Design
Heuristics:
One team for each subsystem
One cross-functional task per team
5-7 members per team
Be prepared to iterate the team formation after system
design when the subsystem decomposition is baseline
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Project teams
Diversity of knowledge needed
Cross-functional
Self-directed Often ad-hoc or temporary
Often distributed (geographically)
Start and end dates
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Project personnel skills
Technical
Political
Problem-oriented
(vs. discipline-oriented) Goal-oriented
Flexibility, adaptability
High self-esteem
can handle failure, risk, uncertainty, unexpected
can share blame and credit
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