The main goals of this chapter are to: Understand the different project organisational structures that broadly define how the project fits with the organisational structures that may already exist in an organisation, realise the importance of an organisation’s culture and the effect it can have on the management of a project.
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CHAPTER 4
Project Organisational
Structures and Cultures
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Learning Elements
4.1 Understand the different project
organisational structures that broadly
define how the project fits with the
organisational structures that may already exist in an organisation
4.2 Realise the importance of an
organisation’s culture and the effect it can have on the management of a project
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Project Management
Structures
Challenges to organising projects
• The uniqueness and short duration of
projects relative to ongoing longer-term organisational activities.
• The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas
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Functional Organisations
• Different segments of the project are
delegated to respective functional units.
• Coordination is maintained through normal
management channels.
• Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s
success.
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Functional Organisations (cont.)
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Functional Organisations
(cont.)
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Dedicated Project Teams
• Teams operate as separate units under
the leadership of a full-time project
manager.
• In a projectised organisation, where
projects are the dominant form of
business, functional departments are
responsible for providing support for its
teams.
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Dedicated Project Teams (cont.)
Disadvantages
• Expensive
• Internal strife
• Limited technological expertise
• Difficult post-project transition
3–9
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Dedicated Project Teams (cont.)
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Dedicated Project Teams (cont.)
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Matrix Organisations
Weak form
The authority of the functional manager predominates
Balanced form
T
he project 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.
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Matrix Organisations (cont.)
• Infighting
• Stressful
• Slow
3–13
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Matrix Organisations (cont.)
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What is the Right Project Management Structure?
Organisation (form) considerations
• How important is the project to the firm’s success?
• What percentage of core work involves
projects?
• What level of resources (human and
physical) are available?
3–15
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What is the Right Project
Management Structure? (cont.)
Project considerations
• Size of project
• Strategic importance
• Novelty and need for innovation
• Need for integration
• Environmental complexity
• Budget and time constraints
• Stability of resource requirements
3–16
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Organisational Culture
A system of shared norms, beliefs,
values and assumptions which bind
people together, thereby creating
shared meanings.
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Organisational Culture (cont.)
T
he ‘personality’ of the organisation that sets it
apart from other organisations
• Provides a sense of identify to its members
• Helps to legitimise the management system
of the organisation
• Clarifies and reinforces standards of
behaviour
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Organisational Culture
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Identifying Cultural Characteristics
S tudy the physical characteristics of an
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Identifying Cultural
Characteristics (cont.)
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