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c4 Project Organization

This document discusses different types of project organizations within a company: functional, pure project, and matrix. The functional organization houses projects within existing functional departments, allowing flexibility but potentially diluting focus on the project. A pure project organization gives the project manager full authority but risks duplication and lacks expertise from functions. A matrix organization combines functional and project structures, aiming to leverage benefits and mitigate disadvantages of each. It overlays projects on functional divisions, giving projects access to resources while maintaining emphasis on the project. However, it also risks political conflict between functional and project managers due to the complex division of authority.

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25 views18 pages

c4 Project Organization

This document discusses different types of project organizations within a company: functional, pure project, and matrix. The functional organization houses projects within existing functional departments, allowing flexibility but potentially diluting focus on the project. A pure project organization gives the project manager full authority but risks duplication and lacks expertise from functions. A matrix organization combines functional and project structures, aiming to leverage benefits and mitigate disadvantages of each. It overlays projects on functional divisions, giving projects access to resources while maintaining emphasis on the project. However, it also risks political conflict between functional and project managers due to the complex division of authority.

Uploaded by

babar sana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 18

Project Management:

A Managerial Approach 4/e

By Jack R. Meredith and Samuel J. Mantel, Jr.

Published by John Wiley & Sons, Inc.

Presentation prepared by RTBM WebGroup


Project Management
A Managerial Approach

Project Organization
Types of Project Organizations
 There are two fundamentally different ways of
organizing projects within the parent organization
 The project as part of the Functional Organization
 The project as a free-standing part of the parent
organization
 A third type, called a Matrix Organization is a hybrid
of the two main types
 Each has advantages and disadvantages

Chapter 4-3
The Project as Part of the
Functional Organization
 Advantages of using the functional elements of the
parent organization for a project include:
 Maximum flexibility in the use of staff
 Individual experts can be utilized by many different projects
 Specialists in the division can be grouped to share
knowledge and experience

Chapter 4-4
Project as part of the
Functional Organization
The Project as Part of the
Functional Organization
 There are also disadvantages to housing the project
in a functional area:
 The client is not the focus of activity and concern
 The functional division tends to be oriented toward the
activities particular to its function
 Occasionally, no individual is given full responsibility for
the project
 There are often several layers of management between
the project and the client

Chapter 4-5
Pure Project Organization
Pure Project Organization
 Advantages of a pure project organization:
 The project manager has full line authority over the
project
 All members of the project work force are directly
responsible to the project manager
 When the project is removed from the functional division,
the lines of communication are shortened
 When there are several successive projects of a similar
kind, the pure project organization can maintain a
permanent cadre of experts who develop skills in specific
technologies
Chapter 4-6
Pure Project Organization
 Advantages of a pure project organization (cont.)
 Because the authority is centralized, the ability to make a
swift (rapid)decision is enhanced
 Unity of command exists
 Pure project organizations are structurally simple and
flexible, which makes them relatively easy to understand
and implement

Chapter 4-7
Pure Project Organization
 Disadvantages of a pure project organization:
 Each project tends to be fully staffed which can lead to a
duplication of effort in every area from clerical staff to
technological support
 At times, it is difficult to ‘assemble’ technical resources and
knowledge on time.
 Although, the functional division is a repository (store)of
expertise, which is not available in Pure Project
Organizations.

Chapter 4-8
Pure Project Organization
 Disadvantages of a pure project organization
(cont.)
 It is difficult to create and then maintain uniform policies
and procedures in a pure project organization.
 In a pure project organization, the project takes on a life
of its own.
 There tends to be concern among team members about
“life after the project ends”

Chapter 4-9
The Matrix Organization
 The matrix organization is a combination of functional and
pure project, trying to take maximum advantage of the
‘benefits’ and avoiding the ‘disadvantages’
 “Project” or “strong” matrix organization most
resembles the pure project organization
 The “coordination” or “weak” matrix most
resembles the functional form
 The “balanced” matrix lies in between the others and
is generally preferred.

All are important, but difference lies on ‘Power of Decision


Making’ i.e. is it concentrated on Project Manager of the
Functional Manager !
The Matrix Organization

 Rather than being a stand alone organization,


like the pure project, the matrix project is not
separated from the parent organization:

Chapter 4-11
The Matrix Organization
 As with other organizational forms, the matrix
organization has its own unique advantages:
 The project is the point of emphasis
 Because the project is overlaid on the functional
divisions, the project has reasonable access to the
reservoir of technology in all areas
 There is less anxiety about what happens when the
project is completed

Chapter 4-12
The Matrix Organization
 Advantages of a Matrix (cont.)
 Response to client’s needs is as rapid as in the pure project
organization
 Matrix management gives the project access to
representatives from the administrative units of the parent
firm
 The matrix organization allows a better company-wide
balance of resources to achieve goals
 There is a great deal of flexibility in precisely how the
project is organized within the matrix

Chapter 4-13
The Matrix Organization
 There are also disadvantages to using the matrix
organization; most involve conflict between the
functional and project managers:
 The balance of power between the project and functional
areas is very delicate
 The movement of resources from project to project may
foster political infighting
 Problems associated with shutting down projects can be as
severe as in a pure project organization

Chapter 4-14
The Matrix Organization

 Disadvantages of a Matrix (cont.)


 The division of authority and responsibility in a matrix
organization is complex, and uncomfortable for the project
manager.
 Matrix management violates the management principle of
unity of command.
 Project workers have at least two bosses, their functional heads
and the project manager.

Chapter 4-15
Mechanism for sustaining organizational
culture

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