C722 Project Management Complete Text.pdf - The Project Manager's Authority | Project Management Search this course Project Management Unit 2 Project

C722 Project Management Complete Text.pdf - The Project...

This preview shows page 1 out of 703 pages.

You've reached the end of your free preview.

Want to read all 703 pages?

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...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture