Chapter 3

Question 1

Project Management Structures

Answer 1

Challenges to Organizing Projects
The uniqueness and short duration of projects relative to ongoing longer-term organizational activities
The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas.

Choosing an Appropriate Project Management Structure
The best system balances the needs of the project with the needs of the organization.

Organizing Projects: Functional organization
Different 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.

Question 2

Benefits of Cohesive Management

Answer 2

Builds discipline into the project selection process.
Links project selection to strategic metrics.
Prioritizes project proposals across a common set of criteria, rather than on politics or emotion.
Allocates resources to projects that align with strategic direction.
Balances risk across all projects.
Justifies abandoning projects that do not support strategy.
Improves communication and supports agreement on project goals.

Question 3

Functional Organization of Projects

Advantages

Answer 3

No structural change
Flexibility
In-depth expertise
Easy post-project transition

Question 4

Functional Organization of Projects

Disadvantages

Answer 4

Lack of focus
Poor integration
Slow
Lack of ownership

Question 5

Scenario Planning: a Supplement to Strategic Planning

Answer 5

• Social, Technological, Environmental, Economic, Political = STEEP

Clarifying your core business and assessing drivers of change in the industry environment

Developing potential scenarios and assessing the impact of STEEP* factors

Developing potential contingency strategies and best future strategic options

Identifying early indicators and establishing triggers for strategic action

This is a tool for RISK ASSESSMENT

Question 6

Project Management Structures (cont’d)

Organizing Projects: Dedicated Teams

Answer 6

Teams operate as separate units under the leadership of a full-time project manager.
In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.

Question 7

Project Organization: Dedicated Team

Advantages

Answer 7

Simple
Fast
Cohesive
Cross-Functional Integration

Question 8

Project Organization: Dedicated Team

Disadvantages

Answer 8

Expensive
Internal Strife
Limited Technological Expertise
Difficult Post-Project Transition

Question 9

Project Management Structures

Organizing Projects: Matrix Structure

Answer 9

Hybrid organizational structure (matrix) is overlaid on the normal functional structure.
Two chains of command (functional and project)
Project participants report simultaneously to both functional and project managers.

Matrix structure optimizes the use of resources.
Allows for participation on multiple projects while performing normal functional duties.
Achieves a greater integration of expertise and project requirements.

Question 10

Different Matrix Forms

Answer 10

Weak Form
Balanced Form
Strong Form

Question 11

Weak Form

Answer 11

The authority of the functional manager predominates and the project manager has indirect authority.

Question 12

Balanced Form

Answer 12

The project manager sets the overall plan and the functional manager determines how work to be done.

Question 13

Strong Form

Answer 13

The project manager has broader control and functional departments act as subcontractors to the project.

Question 14

Project Organization: Matrix Form

Advantages

Answer 14

Efficient
Strong Project Focus
Easier Post-Project Transition
Flexible

Question 15

Project Organization: Matrix Form

Disadvantages

Answer 15

Dysfunctional Conflict
Infighting
Stressful
Slow

Question 16

What Is the Right Project Management Structure?

Answer 16

Project Considerations
Size of project
Strategic importance
Novelty and need for innovation
Need for integration (number of departments involved)
Environmental complexity (number of external interfaces)
Budget and time constraints
Stability of resource requirements

Question 17

Organizational Culture

Answer 17

A system of shared norms, beliefs, values, and assumptions that bind people together, creating shared meanings
The “personality” of the organization that sets it apart from other organizations

Question 18

Defining Organizational Culture

Answer 18

Physical Characteristics – architecture, structure, dress code
Public Documents – annual reports, newsletters
Behaviour – pace of work, interaction, values
Folklore – stories, legends, perceptions, heroes

Question 19

The Essence of Organizational Culture

Answer 19

Member identity
Team emphasis
Management focus
Unit integration
Control
Risk tolerance
Reward criteria
Conflict tolerance
Means vs. End orientation
Open systems focus

Question 20

Implications of Organizational Culture

Answer 20

Navigational challenges for Project Managers
Interacting with the culture and subcultures of the parent organization
Interacting with the project’s clients or customer organizations
Interacting with other organizations connected to the project