CHAPTER 3

THE PROJECT IN THE ORGANIZATIONAL

STRUCTURE

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CHAPTER OUTLINE
3.1 Forms of Organizational Structure
3.2 The project manager
3.3 Project team building, conflict and negotiation

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3.1 FORMS OF ORGANIZATIONAL
STRUCTURE
 Functional organizations – group people performing
similar activities into departments (phân bổ theo
chuyên trách)

 Project organizations – group people into project teams

on temporary assignments (phân bổ theo cấu trúc dự án)
 kết thúc thì tan rã

 Matrix organizations – create a dual hierarchy in which

functions and projects have equal prominence
PROJECTS IN A FUNCTIONAL
ORGANIZATION
 Make it a part of one of the functional divisions
 More than one choice may exist
 If support from other areas is needed, they are expected to
help support the project
 Vừa làm function vùa support cho project
 Another way is to assign the work to all divisions with
the top management overseeing the effort

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FUNCTIONAL ORGANIZATIONS
FUNCTIONAL STRUCTURES FOR PROJECT
MANAGEMENT
Strengths Weaknesses
1. Firm’s design maintained 1. Functional siloing

2. Fosters development of in- 2. Lack of customer focus

depth knowledge

3. Standard career paths 3. Projects may take longer

4. Project team members remain 4. Projects may be sub-

connected with their functional optimized
group

2-6
FUNCTIONAL FORM BEST FOR…
 In-depth application of a technology
 Large capital investment, especially when that
investment is concentrated in one functional area

5-7
PROJECTS IN A PROJECTIZED
ORGANIZATION

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PROJECTS IN A PROJECTIZED ORGANIZATION
PROJECTIZED ORGANIZATIONAL STRUCTURE

3–10
PROJECTS IN A PROJECTIZED
ORGANIZATION
Strengths Weaknesses
1. Project manager sole authority 1. Expensive to set up and
maintain teams
2. Improved communication
2. Chance of loyalty to the
3. Effective decision-making project rather than the firm

4. Creation of project 3. No pool of specific knowledge

management experts
4. Workers unassigned at project
5. Rapid response end

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PROJECT FORM BEST FOR…

Handling a large number of similar projects

Handling a one-time project that requires
much control, but is not focused on one
functional area

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PROJECTS IN A MATRIXED
ORGANIZATION
 Matrixed project organization
 Keeps desirable features of both standalone and functional
projects
 Avoids some of the disadvantages of each type
 It is a combination of standalone projectized and
functional organization structures
 Can take on a variety of specific forms

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MATRIX ORGANIZATION STRUCTURE
DIFFERENT MATRIX FORMS
 Weak Form
 The authority of the functional manager predominates and the
project manager has indirect authority.
 Balanced Form
 Theproject manager sets the overall plan and the functional
manager determines how work to be done.
 Strong Form
 The project manager has broader control and functional
departments act as subcontractors
to the project.
WEAK MATRIX
 Project might have only one full-time person, the project
manager
 Functional departments devote capacity to the project

 Primary task of the project manager is to coordinate

project activities carried out by the functional
departments

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MATRIX STRUCTURES FOR PROJECT
MANAGEMENT
Strengths Weaknesses
1. Suited to dynamic 1. Dual hierarchies mean two
environments bosses

2. Equal emphasis on project 2. Negotiation required in order

management and functional to share resources
efficiency

3. Promotes coordination across 3. Workers caught between

functional units competing project & functional
demands
4. Maximizes scarce resources

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MATRIX FORM BEST FOR…
 Projects that require inputs from several functional areas
 Projects that use technology from several functional
areas

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CULTURE AFFECTS PROJECT
MANAGEMENT
 Departmental interaction

 Employee commitment to goals

 Project planning

 Performance evaluation

2-
CHOOSING THE APPROPRIATE PROJECT
MANAGEMENT STRUCTURE
 Organization (Form) Considerations (trong máy)
 Project Considerations
3.2 PROJECT MANAGER

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LEADERS VS. MANAGERS
 Managers have official titles in an organization

 Leaders focus on interpersonal relationships rather than

administration

Important differences exist between the two on:

•Creation of purpose •Outcomes

•Network development •Execution
•Focus
•Timeframe
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HOW THE PROJECT MANAGER LEADS
Project managers function as mini-CEOs and manage
both “hard” technical details and “soft” people issues.
Prj mana
- Acquire prj rs

- Motivate and build teams

- Ddd

- Ccc

- ccc

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ACQUIRING RESOURCES
Project are under funded for a variety of reasons:
 vague goals
 no sponsor
 requirements understated
 insufficient funds
 distrust between managers

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COMMUNICATION
It is critical for a project manager to maintain strong
contact with all stakeholders

Project meetings feature task oriented and group

maintenance behaviors and serve to:
update all participants
increase understanding & commitment
make decisions
provide visibility
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TASK-ORIENTED BEHAVIOR: TO GET JOB
DONE

Structuring process
Stimulate the conversation
Clarify and summarise the decision and perception
Testing the concensus

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GROUP MAINTENANCE BEHAVIOR: INCREASE
COHESIVE, TRUST,COMMITMENT,RECOGNIZING THE
ACCOMPLISHMENT

Gatekeeping
Harmonising
Supporting
Setting standards
Analysing process

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TRAITS OF EFFECTIVE PROJECT
LEADERS
A number of studies on effective project leadership
reveal these common themes:
 Good communication
 Flexibility to deal with ambiguity/uncertainty with
minimum stress
 Work well with project team
 Skilled at various influence tactics

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WHAT ARE PROJECT CHAMPIONS?
Champions are fanatics in the single-
minded pursuit of their pet ideas.

Champions can be:

creative originators
entrepreneurs
godfathers or sponsors
project managers
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CHAMPION ROLES
Traditional Duties
 technical understanding

 leadership

 coordination & control Nontraditional Duties

 obtaining resources • cheerleader
 administrative • visionary
• politician
• risk taker
• ambassador
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CREATING PROJECT CHAMPIONS

 Identify and encourage their emergence

 Encourage and reward risk takers
 Remember the emotional connection
 Free champions from traditional management

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THE NEW PROJECT LEADERSHIP
Four competencies determine a project leader’s
success:

1. Understanding and practicing the power of

appreciation
2. Reminding people what’s important
3. Generating and sustaining trust
4. Aligning with the led/followers

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PROJECT MANAGEMENT
PROFESSIONALISM
o Project work is becoming the standard for
many organizations

o There is a critical need to upgrade the

skills of current project workers

o Project managers and support personnel

need dedicated career paths
CREATING PROJECT MANAGERS

 Match personalities with project work

 Formalize commitment to project work with training
programs
 Develop a unique reward system
 Identify a distinct career path
THREE MAJOR QUESTIONS FACING
PROJECT MANAGERS
 What needs to be done?
 When must it be done?
 How are the resources required to do the job to be
obtained?

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PROJECT MANAGER RESPONSIBILITIES
 The parent company
 The project and the client
 The project team

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THE PARENT COMPANY
 Proper usage of resources
 Timely and accurate reports
 Covered in detail later
 Keep project sponsor informed

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THE PROJECT AND THE CLIENT
 Preserve the integrity of the project
 This may be difficult with all sides wanting changes
 Keep the client informed of major changes

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THE PROJECT TEAM
 The “team” will disband at the end of the project
 The project manager must look out for everyone’s future
 This is in the best interest of the project, otherwise as the
project winds down, everyone will be looking after
themselves

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SPECIAL DEMANDS ON PROJECT
MANAGER
 Acquiring adequate resources
 Acquiring and motivating personnel

 Dealing with obstacles

 Making project goal trade-offs

 Maintaining a balanced outlook

 Breadth of communication

 Negotiation

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ACQUIRING ADEQUATE RESOURCES
 Project budgets are usually inadequate
 Resource trade-offs must be considered

 Crises occur that require special resources

 Availability of resources is seen as a “win-lose”

proposition

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ACQUIRING AND MOTIVATING
PERSONNEL
 Most project workers are borrowed from functional
managers
 The project manager negotiates for the desired worker
but
 The project manager wants the best qualified individual
 The functional manager decides who to assign

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ACQUIRING AND MOTIVATING
PERSONNEL CONTINUED
 The functional manager also decides:
 The skill level to assign
 The pay and promotion of the worker

 Worker will most likely return to the functional manager

once the project is finished
 Once workers are assigned to a project, the project
manager must motivate them
 The project manager has little or no control over pay and
promotion

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MOST IMPORTANT CHARACTERIZES
FOR TEAM MEMBERS
 High-quality technical skills
 Political, and general, sensitivity
 Strong problem orientation
 Strong goal orientation
 High self-esteem

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MAKING PROJECT GOAL TRADE-OFFS
 Project managers must make trade-offs between the
project goals of:
 Cost
 Time
 Scope
 Ancillary goals
 Multiple projects
 Project goals and organizational goals
 Project, firm, career

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MAINTAINING A BALANCED OUTLOOK
 Hard to tell where a project is headed
 Outlook can change over the life of a project

 Technical problems cause waves of pessimism and

optimism
 Mood swings can hurt performance

 Maintaining a positive outlook is a delicate job

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BREADTH OF COMMUNICATION
 Why projects exist
 Some projects fail
 Support of the top management is needed
 A strong information network is needed
 Must be flexible

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NEGOTIATIONS
 Acquiring adequate resources
 Motivating personnel

 Dealing with obstacles

 Making project goal trade-offs

 Handing failure

 Maintaining communication

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ATTRIBUTES OF EFFECTIVE PROJECT
MANAGERS
 Credibility
 Sensitivity
 Leadership, ethics, and management style
 Ability to handle stress

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3.3 PROJECT TEAM BUILDING,
CONFLICT AND NEGOTIATION

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THE PROJECT TEAM
 Systems architect
 Development engineer

 Test engineer

 Contract administrator

 Project controller

 Support services manager

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 Identify Necessary Skills

BUILDING THE
Identify People With Skills
PROJECT TEAM
Talk to Potential Team Members

Negotiate with Their Supervisor Renegotiate with Top

Management

Success? No
Success?
Yes
Yes No

Assemble the Team Build Fallback Positions 53

EFFECTIVE PROJECT TEAMS

 Clear Sense of Mission

 Productive Interdependency
 Cohesiveness

 Trust

 Enthusiasm

 Results Orientation
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REASONS WHY TEAMS FAIL
Poorly developed or unclear goals
Poorly defined project team roles & interdependencies
Lack of project team motivation
Poor communication
Poor leadership
Turnover among project team members
Dysfunctional behavior

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STAGES IN GROUP DEVELOPMENT

1. Forming – members become acquainted

2. Storming – conflict begins
3. Norming – members reach agreement
4. Performing – members work together
5. Adjourning – group disbands

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CONFLICT MANAGEMENT
Conflict is a process that begins when you perceive that
someone has frustrated or is about to frustrate a major
concern of yours.

Categories Views
• Goal-oriented • Traditional
• Administrative • Behavioral
• Interpersonal • Interactionist
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SOURCES OF CONFLICT

Organizational
Reward systems
Scarce resources
Uncertainty Interpersonal
Differentiation • Faulty attributions
• Faulty communication
• Personal grudges &
prejudices

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CONFLICT RESOLUTION

 Mediate – defusion/confrontation tự hòa giải

 Arbitrate – judgment có ng phân xử
 Control – cool down period
 Accept – unmanageable
 Eliminate – transfer

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NEGOTIATION
a process that is predicated on a manager’s ability to
use influence productively

Questions to Ask Prior to Entering a Negotiation

1. How much power do I have?
2. What sort of time pressures are there?
3. Do I trust my opponent?

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PRINCIPLED NEGOTIATION

1. Separate the people from the problem

2. Focus on interests, not positions

3. Invent options for mutual gain

4. Insist on using objective criteria

Getting to Yes – Fisher & Ury

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