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Unformatted text preview: 7/19/2018 The Project Manager's Authority | Project Management Search this course... Project Management: Unit 2: Project Management Concepts UNIT CONTENTS MODULE 5 MODULE CONTENTS ORGANIZATIONAL STRUCTURES (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p1_organizational_structures) (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p3_advantages_pmo)
Go to page 25 Current Module | Pages 24 - 27 The Project Manager's Authority
Learning Objectives Q Describe the advantages and disadvantages of common types of
organizational structures. As shown in the table, the organizational structure has significant influence on a
project’s administration. In a functional structure, the PM has little or no formal
authority. The PM role is, in fact, a part-time role. Any influence that the PM has
will come primarily, if not entirely, from the PM’s ability to negotiate with and
influence others -- “people skills.” 1/8 7/19/2018 The Project Manager's Authority | Project Management On the opposite end of the spectrum is the projectized organization. In this case
the PM has a full-time role on the project. This also includes nearly total authority
on all administrative matters from resource allocation to budget to schedule to
scope trade-offs.
The PM’s role and level of authority in a matrix structure are highly dependant on
how weak or strong the matrix structure is. Although the table indicates either a
weak, balanced, or strong matrix, the reality is that this occurs on a continuum. In
fact, it is not common to find a purely functional or a purely projectized
organizational structure. The structure is often a blend of all of the above. Influence of organizational structures on projects. (Source: PMBOK, 2013) Some organizations may actually be better served by a functional structure. A
small manufacturing company that produces products based on a customer’s
design will have infrequent projects. These may be limited to investigating a new
piece of manufacturing equipment. In such a case, there may not even be the
need for a dedicated PM. A plant manager or production supervisor may have the
necessary skills to manage such a project.
Other organizations may do best with a matrix-type structure. An automobile
manufacturer, for instance, will have many functional departments but also may
have several vehicle programs running simultaneously. In this case, the PM will
2/8 7/19/2018 The Project Manager's Authority | Project Management want SMEs to be assigned for the duration of a project, but the SMEs will still want
a functional manager for the long term.
Some organizations’ projects and programs are so large and complex that the
most effective structure would be a projectized organization. An aircraft
manufacturer would be one example. These programs are so extensive and the
expertise required so diverse that portions are actually subcontracted to other
companies. It is typical, for instance, to have engines designed and built by one
company and different electronics systems built by other companies. The
projectized organization is the most appropriate for this organization. Advantages and Disadvantages of Common Types
of Organizational Structures
You continue with your plans to open a restaurant. Being a person who likes to
plan ahead, you consider how to organize your project team. You know that once
your restaurant is up and running, you will be engaged in operations. You do not
expect any projects for some time, at least not until you need equipment, decide
to remodel, or need to expand. You decide to be your own project manager. You
initially see the organization structure as a functional organization, at least until
the restaurant is operational. You perceive yourself in a general manager role,
with several groups, each performing a specific function, reporting to you. You will
need the following:
An attorney for legal matters, including construction contracts
An accountant for financial advice, including a cost/benefit analysis to
determine if you should build new or renovate an existing property
A real estate agent to assist with selection of a site to build or locating an
existing facility to renovate
An architect to design the structure and exterior of either a new facility or
a renovation 3/8 7/19/2018 The Project Manager's Authority | Project Management You will depend on the architect to hire and direct the
construction contractor.
An interior designer to layout the interior, including customer and kitchen
areas.
The designer will contract to have furniture and equipment
installed.
An employment agent to hire personnel You envision an organization chart similar to this: You determine that you should bring on a chef early in the process to consult on
the kitchen design. Now your organization actually becomes a weak matrix. The
chef has direct reporting to you with “dotted line” to the interior designer. 4/8 7/19/2018 The Project Manager's Authority | Project Management You realize that you will have to schedule activities in a logical and orderly
manner. And you will have to coordinate between each of these functions. For
example, you need to coordinate between your real estate agent, accountant, and
attorney to identify possible locations and their financial considerations, and your
attorney on legal issues. Did I Get This A project manager’s level of authority in a matrix organization
depends on the type of matrix . Correct. A PM’s authority depends on the type of matrix 5/8 7/19/2018 The Project Manager's Authority | Project Management In a strong matrix organization, a, SMEs assignments come from the
project manager Correct. In a strong matrix organization, SME assignments come
from the project manager. A project manager has no authority in a functional
organization. Correct. A PM has no authority in a functional organization. In a functional organization, SMEs report to a functional manager . Correct. In a functional organization, SMEs report to a functional
manager. In a matrix organization, administrative personnel are not duplicated in each project team. Correct. Administrative personnel are not duplicated in project
teams in a matrix organization. Timely decision making is an advantage of a projectized
organization. 6/8 7/19/2018 The Project Manager's Authority | Project Management Correct. Timely decision making is an advantage of a projectized
organization. Drag and drop the influence level a PM has within each organizational structure.
Alternate mode Learn by Doing Which organizational structure is used by government entities? Matrix
Functional
Projectized Correct. Functional organization is straightforward, has clear lines
of authority, and is well defined. This makes it perfectly suited to
government entities. 7/8 7/19/2018 The Project Manager's Authority | Project Management The project manager always has a full-time role on a project when the
organizational structure being used is projectized . Correct. In projectized organizational structures, the PM.has a full
time role. Hint:
Which type of organizational structure can involve many SMEs and demands clear lines of authority? (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p1_organizational_structures) (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p3_advantages_pmo)
Go to page 25 © 2018 Acrobatiq 8/8 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Search this course... Project Management: Unit 2: Project Management Concepts UNIT CONTENTS MODULE CONTENTS ORGANIZATIONAL STRUCTURES MODULE 5 (/courseware/wgu_pm_nov15/u1_concepts/m2_project_management/p5_project_management_summary) (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p2_pm_authority)
Go to page 24 Current Module | Pages 24 - 27 Advantages and Disadvantages of Common
Types of Organizational Structures
Learning Objectives Q Describe the advantages and disadvantages of common types of
organizational structures. Every organization has some sort of structure, be it formalized on a organizational
chart or informal. There are essentially three types of organizational structures:
Functional (Departmentalized)
Projectized
Matrix
1/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Each structure has advantages and disadvantages. The Organizational Structure: Functional
(Departmentalized)
The functional (departmentalized) organization is the oldest and most basic form
of organization. It is the type of organization most often represented in
corporation shareholder reports. A functional organization is very straightforward.
Lines of authority are clear cut and well defined. There is a defined supervisorsubordinate relationship for each department and subdepartment. There is no
question of who reports to whom. This is the prototypical hierarchical structure
that we most often see in organization charts. Nearly every corporate annual
report with an organization chart will use a hierarchical structure to illustrate lines
of reporting and authority: 2/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management (Source: ) Advantages Disadvantages Lines of authority are clear. Utilizing resources across functions can be
difficult. Departmental work is easily prioritized Requests for assistance from other by identified departmental authority. departments not easily prioritized. There is flexibility in the use of staff. It is inefficient for projects requiring
collaboration/cooperation between
departments. Subject matter experts (SME) available to Project customer is not the only focus. work on multiple projects.
Knowledge and experience readily Organization does not focus on solving project shared between functional specialists. business issues. Technical continuity exists within the Project does not have a single individual organization. responsible for all aspects of the project. Professional growth and career paths for Response to customer needs is slow and the staff are clearly defined. difficult.
Project issues are not all given the same level
of attention.
Project is not managed holistically. 3/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Examples of Functional Organizations
Government entities are excellent examples of functional organizations. These can be observed by
organizational charts for the U.S. Department of State and the U.S. Department of Energy. As can be
seen, each of these two entities is organized along well-defined functional roles. Chart of positions that report to the Secretary of State. 4/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Organization chart for the Department of Energy. Functional organizations worked well for many years, as long as projects were not
overly complex and operations did not require a large degree of
interdepartmental collaboration. Eventually, the need for another organizational
structure became apparent, and the projectized structure came into existence. The Organizational Structure: Projectized 5/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management (Source: ) In the projectized organization, subject matter experts (SMEs) from different
functional areas are assigned to directly report to the project manager (PM) for a
specific project. The SMEs report to the PM for the duration of the project. At
project conclusion, the SMEs report back to their respective functional areas
where they receive work assignments from the functional manager until such time
as they are reassigned to another project. Advantages Disadvantages There are clear lines of authority, and PM must have enough work to keep SMEs busy the project manager has full full-time or risk loss to another project or authority. functional area. 6/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Once SMEs are assigned, there is less SME assigned may not have the most appropriate need to negotiate availability of knowledge or expertise for the project. resources.
Project is managed holistically. Approach is expensive because of the duplication
of personnel. Response to customer and Equipment and personnel may be hoarded to stakeholder issues is faster and ensure access to those resources. clearer.
Skilled project team can support Team members lose access to a repository of several successive projects of the functional or technical expertise. same type.
There is timely decision making on Policies and procedures may be applied project issues. inconsistently. Organizational structure is simple, Team members may be anxious about post- flexible, and easy to understand. project work. The Organizational Structure: Matrix
The principle differentiation between a matrix structure and either a functional or
a projectized structure is that a matrix has less clearly defined lines of reporting. A
SME, for example, will have a functional supervisor but may be assigned to a
particular, specific project. The SME will report to the PM while assigned to the
project, but the functional supervisor still retains administrative authority and
responsibility for the SME.
Matrix organizational structures are sometimes further defined as follows: Weak Matrix Balanced Matrix Strong Matrix 7/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Structure is very similar to Project manager defines what needs to Attempts to provide a functional organization. be accomplished and establishes the appearance of proje overall: team in the matrix
organization. Plan
Schedule
Budget
Etc. Project managers are Functional manager determines how it Project manager has designated to coordinate will be accomplished: more control over va project activities: project aspects than Assigns personnel
Essentially
acts as a
coordinator
between
different
functions
and
departments Executes plans in
accordance with
schedule and standards
defined by the PM other organizationa
forms, including: Scope,
including
trade-offs Requires
close
cooperation
between
the PM and
the
functional
manager Schedule
Budget
Assignmen
of function
personnel Functional managers Functional manager remain responsible for maintains “title” to their own portions of functional personne projects. 8/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management (Source: ) Advantages Disadvantages Central focus is the project. Requires cooperation and
coordination between and among
functional departments and
project managers. Project managers have access to a large reservoir of SMEs not in daily contact with technically skilled people. Potentially more access to other SMEs for sharing of SMEs as needed. More chance to get the most technical knowledge. appropriate SME. 9/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Project team members have less anxiety about the Person with decision-making future. power is not always clearly
identified. Customer issues are responded to quickly. Resource balancing between
projects can lead to friction. Administrative personnel are not duplicated in each Project closeout tasks are often project team. difficult in strong matrix
organizations. Resource balancing between projects is simpler and Division of authority and more efficient. responsibility is complex. Project team organization is more flexible. Did I Get This Drag and drop each statement to the organizational structure it describes.
Alternate mode Functional Projectized Matrix There are clear lines of
authority, and the project
manager has full authority. Inefficient for projects requiring
collaboration and cooperation
between departments. Project managers have access
to a large reservoir of
technically skilled people. 10/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Correct. Because of the nature of the functional structure, the
organization has more institutional knowledge and continuity. Correct. This is an advantage of a projectized structure. Correct! This is a disadvantage of a matrix structure. Correct. Functional structures do not lend themselves to crossfunctional collaboration. Correct. This is an advantage of a projectized structure. Correct! This is an advantage of a matrix structure. Correct. Functional structures tend to be more rigid in how projects
are managed.
Drag and drop each of the following advantages into the correct organizational
structure column. 11/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Alternate mode Functional Lines of authority are clear. Projectized Matrix
PM has better chance to get the
most appropriate SME. Project
auth SMEs work in close proximity,
which allows for exchanges of
ideas between SMEs. en
re Correct. Clear lines of authority are found in functional structures. Correct. Project managers have full authority over SMEs in a
projectized structure. Correct. There’s a better chance of getting the most appropriate
SMEs in a matrix structure. Correct.SMEs work in close proximity in a functional organization. Correct. Response to customer and stakeholder issues is faster and
clearer in a projectized structure. 12/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Correct. Resource balancing between projects is simpler and more
efficient in a matrix structure.
Drag and drop each of the following disadvantages into the correct organizational
structure column.
Alternate mode Functional Projectized Matrix
Person with decision-making
power is not always clearly
identified. Utilizing resources across
functions can be difficult. PM must have enough work to
keep SMEs busy full-time or risk
loss to another project or
functional area. Correct! A functional organization does not focus on solving project business
issues. Correct. Team members lose access to a repository of functional or
technical expertise in a projectized structure. Correct! The person with decision-making power is not always clearly
identified in a matrix organization.
13/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management Correct! Cross-functional resource sharing is difficult in a functional
structure. Correct. Having enough SME work is an issue in a projectized
organization. Correct! Resource balancing between projects can lead to friction in a matrix
organization. Learn by Doing Which is the most basic form of organizational structure? Matrix
Projectized
Functional
Correct! Functional organization is straightforward, has clear lines of
authority, and is well defined, making it the most basic of the three. (/courseware/wgu_pm_nov15/u1_concepts/m2_project_management/p5_project_management_summary) (/courseware/wgu_pm_nov15/u1_concepts/m3_organizational_structures/p2_pm_authority)
Go to page 24 14/15 7/19/2018 Advantages and Disadvantages of Common Types of Organizational Structures | Project Management © 2018 Acrobatiq 15/15 7/19/2018 Project Closeout Wrap-up | Project Management Search this course... Project Management: Unit 8: Executing, Monitoring, and Controlling Project Work UNIT CONTENTS MODULE 32 MODULE CONTENTS PROJECT CLOSEOUT (/courseware/wgu_pm_nov15/u7_controlling_project_work/m18_project_closeout/p2_lessons_learned) (/courseware/wgu_pm_nov15/u7_controlling_project_work/u7_summary/u7_project_work_summary)
Go to page 142 Current Module | Pages 140 - 142 Project Closeout Wrap-up
Summary
In this module we reviewed the final function of the project manager: closing out
the project. This is a formal process that assures all project ta...
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