PGD in Project Management

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UNIT 1: PROJECT MANAGEMENT
FUNDAMENTAL

 Chapter 1: Modern Project Modern

Project
Management Manage
ment

 Chapter 2: Organisation Strategy

and Project Selection
Organisati
 Chapter 3: Organisation Structure Defining PM on
the Strategy
Project Fundame and
and Culture Scope ntal Project
Selection

 Chapter 4: Defining the Project

Scope
Organisati
on:
Structure
and
Culture
Chapter 3: Organisation Structure and
Culture
• Identify different project management structures and understand their
strengths and weaknesses.
• Distinguish three different types of matrix structures and understand their
strengths and weaknesses.
• Describe how project management offices (PMOs) can support and improve
project execution.
• Understand organizational and project considerations that should be
considered in choosing an appropriate project management structure.
• Appreciate the significant role that organizational culture plays in
managing projects.
• Interpret the culture of an organization.
• Understand the interaction between project management structure and the
culture of an organization.
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Organizational culture
• it reflects the “personality” of an organization
• Both the project management structure and the culture of the
organization constitute major elements of the enterprise
environment in which projects are implemented
• It is important for project managers and participants to know
the “lay of the land” so that they can avoid obstacles and take
advantage of pathways to complete their projects.

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Project Management Structures
• One approach to organizing projects is to simply manage them
within the existing functional hierarchy of the organization.
• Coordination is maintained through normal management
channels.

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Functional
Organisation Advantages
No change
The functional organization is also
commonly used when, given the nature of Flexibility
the project, one functional area plays a In-depth expertise
dominant role in completing the project
or has a dominant interest in the success Easy post-project transition
of the project.
A project involving the upgrading of the
management information system would
be managed by the Information Systems
Department Disadvantages
Lack of focus
Poor integration
Slow
Lack of ownership

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Organizing Projects as Dedicated Teams
• These teams operate as units separate from the rest of the parent
organization.
• a full-time project manager is designated to pull together a core group of
specialists who work full time on the project.
• The subsequent team is physically separated from the parent organization
and given marching orders to complete the project

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Projectized organization
• Where projects are the dominant
form of business, such as a
construction firm or a consulting
firm, the entire organization is
designed to support project teams
• The main responsibility of traditional
functional departments is to assist
and support these project teams.

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Projectized
Organization
Structure Advantages
Simple
The dedicated project team Fast
approach has strengths and
weaknesses Cohesive
Cross-functional integration

Disadvantages
Expensive
Internal strife
Limited technological expertise
Difficult post-project transition.

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Organizing Projects within a Matrix
Arrangement
• Matrix management is a hybrid organizational form in which a
horizontal project management structure is “overlaid” on the
normal functional hierarchy
• there are usually two chains of command, one along functional
lines and the other along project lines.

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Division of Project Manager and Functional
Manager Responsibilities in a Matrix Structure

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Different Matrix Forms
• Weak matrix. This form is very similar to a functional approach with the exception that
there is a formally designated project manager responsible for coordinating project
activities.
• The project manager basically acts as a staff assistant who draws the schedules and checklists,
collects information on the status of work, and facilitates project completion.
• Balanced matrix. This is the classic matrix, in which the project manager is responsible
for defining what needs to be accomplished, while the functional managers are concerned
with how it will be accomplished.
• The project manager establishes the overall plan for completing the project, integrates the
contribution of the different disciplines, sets schedules, and monitors progress.
• Strong matrix. This form attempts to create the “feel” of a project team within a matrix
environment.
• The project manager controls most aspects of the project, including scope trade-offs and
assignment of functional personnel.

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Matrix management

ADVANTAGES DISADVANTAGES
• Efficient • Dysfunctional conflict
• Strong project focus • Infighting
• Easier post-project transition • Stressful
• Flexible • Slow

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Project Management Office (PMO)
• a centralized unit within an organization or a department that
oversees and supports the execution of projects
• In a small organization with few projects, the PMO may consist of
just one professional assigned to support project efforts.
• In large, multinational firms, PMOs may involve hundreds, even
thousands, of professionals operating at different levels and in
different parts of the organization.
• PMOs in terms of being
• (1) a weather station, (2) a control tower, or (3) a resource pool

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• Weather station. The primary function of the weather station PMO is to track
and monitor project performance. It is typically created to satisfy top
management’s need to stay on top of the portfolio of projects under way in the
firm.
• Control tower. The primary function of the control tower PMO is to improve
project execution. It considers project management as a profession to be
protected and advanced.
• Resource pool. The goal of the resource pool PMO is to provide the organization
with a cadre of trained project managers and professionals. It operates like an
academy for continually upgrading the skills of a firm’s project professionals.
• Command and control center. Unlike the support function performed by the
other kinds of PMO, this type has direct authority over projects. It acts as a key
decision maker across the life of a project, making sure the project is aligned with
business objectives and conforms to accepted practices.

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What Is the Right Project Management
Structure?
• A number of issues need to be considered at both the
organization and project levels.
• Organization Considerations
• At the organization level, the first question that needs to be asked is, how
important is project management to the success of the firm?
• A second key question involves resource availability
• an organization needs to assess current practices and what changes
are needed to more effectively manage projects

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• Project Considerations
• At the project level, the question is how much autonomy the project needs in
order to be successfully completed.
• seven factors that should influence the choice of project management structure:
1. Size of project.
2. Strategic importance.
3. Novelty and need for innovation.
4. Need for integration (number of departments involved).
5. Environmental complexity (number of external interfaces).
6. Budget and time constraints.
7. Stability of resource requirements.

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Organizational Culture

Organizational culture refers to a system of shared norms, beliefs, values, and assumptions
that binds people together, thereby creating shared meanings.

For example, egalitarianism may be expressed in the informal dress worn at a

high-tech firm. Conversely, mandated uniforms at a department store reinforce respect for the
hierarchy.

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• Ultimately culture helps create social order within an organization.
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Inside Amazon
https://www.youtube.com/watch?v=LHxJ6HOi2y0

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Identifying Cultural Characteristics
Implications of Organizational Culture for
Organizing Projects
• First, on internal projects they have to interact with the culture of
their parent organization as well as the subcultures of various
departments (e.g., Marketing, Accounting). On external projects, they
also have to interact with the project’s client or customer
organizations.
• Finally, they often have to interact in varying degrees with a host of
other organizations connected to the project. These organizations
include suppliers and vendors, subcontractors, consulting firms,
government and regulatory agencies, and in many cases community
groups. Many of these organizations are likely to have very different
cultures.

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Thank you!
For your Time and Support

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Home Assignment

 Select an organisation of your choice

 Analyse the culture of that organisation by relating the slide 20 and 22 of this lecture
 Please do not copy paste in large scale!
 Prepare some slides and present in the next class
 Thank you!