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Project Management Structures

(1)

Challenges to Organizing Projects

The uniqueness and short duration of projects relative to ongoing

longer-term organizational activities

The multidisciplinary and cross-functional nature of projects creates
authority and responsibility dilemmas.

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Project Management Structures

(2)

Choosing an Appropriate Project Management

Structure
The best system balances

the needs of the project

with the needs of the
organization.

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Project Management Structures

(3)

Organizing Projects: Functional organization

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

projects success.

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Functional Organizations

FIGURE 3.1

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Functional Organization of Projects

Advantages

Disadvantages

No Structural Change

Lack of Focus

Flexibility

Poor Integration

In-Depth Expertise

Slow

Easy Post-Project

Lack of Ownership

Transition

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Project Management Structures

(contd)
Organizing Projects: Dedicated Teams
Teams operate as separate units under the leadership of a full-time

project manager.
In a projectized organization where projects are the dominant form

of business, functional departments are responsible for providing

support for its teams.

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Dedicated Project Team

FIGURE 3.2

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Project Organization: Dedicated Team

Advantages

Disadvantages

Simple

Expensive

Fast

Internal Strife

Cohesive

Limited Technological

Cross-Functional

Integration

Expertise
Difficult Post-Project

Transition

10

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Project Organizational Structure

FIGURE 3.3

11

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Project Management Structures

(contd)
Organizing Projects: Matrix Structure

Hybrid organizational structure (matrix) is overlaid on the

normal functional structure.

Two chains of command (functional and project)
Project participants report simultaneously to both functional and project

managers.

12

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Project Management Structures

(contd)
Matrix structure optimizes the use of resources.
Allows for participation on multiple projects while performing

normal functional duties

Achieves a greater integration of expertise and project requirements

13

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Matrix Organization Structure

FIGURE 3.4

14

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Division of Responsibilities in a
Matrix Structure
Project Manager

Negotiated Issues

Functional Manager

What has to be done?

Who will do the task?

How will it be done?

When should the task be done?

Where will the task be done?

How much money is available to

do the task?

Why will the task be done?

How will the project involvement

impact normal functional activities?

How well has the total project

been done?

Is the task satisfactorily

completed?

How well has the functional

input been integrated?

TABLE 3.1

15

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Different Matrix Forms (Functional)

Functional (also Weak or Lightweight) Form
Matrices in which the authority of the functional manager

predominates and the project manager has indirect authority

16

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Different Matrix Forms (Balance)

Balance (or Middleweight) Form
The traditional matrix form in which the project manager sets the

overall plan and the functional manager determines how work to be

done

17

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Different Matrix Forms (Strong)

Strong (Heavyweight) Form
Resembles a project team in which the project manager has broader

control and functional departments act as subcontractors to the

project

18

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Project Organization:
Advantages

Matrix Form

Disadvantages

Efficient

Dysfunctional Conflict

Strong Project Focus

Infighting

Easier Post-Project

Stressful

Transition

Slow

Flexible

19

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Rated Effectiveness of Project

Structures by Type of Project

Source: Larson, E. W., and Gobeli, D. H., Matrix Management: Contradictions and
Insights, California Management Review, vol. 29, no. 4 (Summer 1987), p. 137.

20

FIGURE 3.6

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Choosing the Appropriate Project

Management Structure
Organization (Form) Considerations
How important is the project to the firms success?
What percentage of core work involves projects?
What level of resources

(human and physical)

are available?

21

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Choosing the Appropriate Project

Management Structure (contd)
Project Considerations
Size of project
Strategic importance
Novelty and need for innovation
Need for integration (number of departments involved)
Environmental complexity (number of external interfaces)
Budget and time constraints
Stability of resource requirements

22

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A little story about culture

23

PM Larson & Gray chapter 3 Version 3.1

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(harvest of) Definition(s)

1.

2.
3.
4.
5.
6.
7.

24

Refers to a common frame of reference widely shared by

members of an organization
Is something acquired by these people and taught to
newcomers
Emphesizes what is unique to the organization
Has an enduring quality
Has symbolic significance and surfaces in observable ways
Has an invisible motive force
Is modifiable, but thats hard

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Evolution & Replication

Organization
culture

FILTER
Selection process

Socialization processes
Peer pressure
Role models
Rewards
Punishments
Training, development
Rites, rituals, ceremonies
Reaction to crisisses
25

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Culture & Project Management

26

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Culture Management
Socialization
Manage symbols
Change reward systems
Add new members
Implement culture shock

Change the top people

People involvement

27

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International Aspects of Culture

Culture is more often a source of conflict than of synergy.
Cultural differences are a nuisance at best and often a disaster."
Prof. Geert Hofstede, Emeritus Professor, Maastricht University.

Cultural dimensions, Hofstede

Power distance
Uncertainty avoidance
Individualism
Masculinity
Long term orientation
28

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Example 1 The netherlands

29

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Example 2 Belgium

30

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Example 3 Germany

31

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Cultural Clusters in the World,

mental images & concepts
Network Netherlands, Scandinavia Consensus
Family Asia Loyalty and Hierarchy
Pyramid Latin America, Greece Slavic countries Loyalty,

hierarchy and implicit order

Solar system France and Latin-language countries Hierarchy
and impersonal bureaucracy
Machine Germany, Switzerland, Austria Order

32

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Organizational Culture
Organizational Culture Defined
A system of shared norms, beliefs, values, and assumptions which

bind people together, thereby creating shared meanings

The personality of the organization that sets it apart from other

organizations.
Provides a sense of identify to its members
Helps legitimize the management system of the organization
Clarifies and reinforces standards of behavior

33

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Key Dimensions Defining an

Organizations Culture

FIGURE 3.7

34

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Identifying Cultural Characteristics

Study the physical characteristics of an organization.

Read about the organization.

Observe how people interact within the organization.
Interpret stories and folklore surrounding the organization.

35

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Organizational Culture Diagnosis

Worksheet

FIGURE 3.8

36

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Implications of Organizational
Culture for Organizing Projects
Navigating Organizational Cultures:
Working Upstream or Downstream?
Interactions with

37

The culture of the country/region/people Hofstede!

the culture and subcultures of the parent organization
the projects clients or customer organizations
Other organizations connected to the project

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Cultural Dimensions - Organization

Supportive of Project Management

FIGURE 3.9

38

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The influence of
different cultures on
international negotiation
in project management

An example of the American and Japanese culture

39

PM Larson & Gray chapter 3 Version 3.1

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Big Challenge for Culture

Management: Negotiation
Negotiation is one kind of problem-solving process one in which people
attempt to reach a joint decision on matters of common concern in
situation where they are in disagreement or conflict
However before actual entering a cross cultural negotiation, business man
should be aware of what culture means and how different cultures can
influence or even hinder the negotiation process.

40

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Scope: Three Main Conpoments

1. Low-context vs. High-context culture
2. Non-verbal communication
3. Business etiquette

41

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High context vs. Low context (Japan

vs. USA)
High-context communication is one in which most of the information

exists in the context or is internalized in the people communicating,

whereas in low-context communication most of the information lies
in explicit codes.

42

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43

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Influence of Culture on Negotiations

44

This figure is a perfect visualization of the cultural differences. The blue part represents
the western culture, and the red part the Asian culture.

Americans are very direct (speaking up their mind and approaching a problem) and not
relationship oriented. The Japanese culture allegorizes the complete opposite, meaning
that a relationship is a prerequisite for a negotiation.

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Non-verbal Communication
People use to communicate more nonverbally rather than

verbally
- non-verbal communication 90%
- verbal communication 10%

45

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Eye Contact
JAPAN

USA

Looking straight in the eyes

Never trust a person who

is considered rude

46

doesn't look you in the

eyes

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Smile
JAPAN
Smiling can mean
Laughing is acceptable, but

frowning is not

47

USA
Americans smile

freely at strangers
in public places

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Gestures and postures

JAPAN

48

USA

Japanese try to avoid

Americans are not touch

showing their emotions in

public
Most famous gesture is
bowing

oriented
They are very free in
behavior

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Gesture & Posture

Meaning

Text

JAPAN

USA

Thumb and forefinger form a circle

with the other three fingers spread
upward

OK-sign in Japan it means money" or "give me

change in coins"

OK or Yes of Fine

Thumb up with a close fist

Meaning can be father, boss or superior

Approval or Good job or well done

While counting it means five

49

Crossing the fingers

This means dirty

Good luck

Raising your hand with the forefinger

above your head

Considerably rude

Asking for attention

Turn palm down and scratch

Come

Go away

Turn palm up and wave

It is rude to do this in Japan

Come

Eye closed

Youre listening, paying attention

Bored or sleepy

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Business Etiquette
Politeness, sensitivity and good manners are the pillars of business

etiquette

JAPAN

USA

Japanese business etiquette is USA business etiquette is

more formal

50

informal

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Greeting
JAPAN
Bowing is most common

USA
Handshake is the common

greeting

Do not misunderstand a
weak handshake
51

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Exchange of Business Card

52

JAPAN

USA

Exchange business card at the

first meeting
Present your card nicely
Treat the business card with
respect
Never write any notes on the
business card
Put the business cards you
received in a business card case

Business cards are exchanged

without formal ritual
Wait for a request for your
business card from a person of
higher rank
Show that you are interested
Keep cards clean and crisp
It is common to put card in the
wallet, which may then go in
the back pocket of their
trousers, what is not perceived
as an insult
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Conclusion
Cultural differences are ubiquitous
"Being successful in intercultural communications and interactions does

not require you to go native and change your fundamental perspective"

Best way to prepare live in the other culture
It is more likely and easier to achieve a matching negotiation
outcome, if all parties have been socialized in a similar culture
environment
Fully understand other cultures - turn this understanding into own
advantages and prevent mistakes

53

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Project Communications
Management

54

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Copyright 2008 by The McGraw-Hill Companies, Inc. All Rights

Importance of Good Communications

The greatest threat to many projects is a failure to communicate
Research shows that IT professionals must be able to communicate

effectively to succeed in their positions

Strong verbal skills are a key factor in career advancement for IT
professionals

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What is Project Communications

Management?
The goal of project communications management is to ensure

timely and appropriate generation, collection, dissemination,

storage and disposition of project information
It provides the critical links among people, ideas and information
that are necessary for success
Everyone involved in the project must understand how the
communications in which they are involved can affect the project
as a whole.

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Project Communications Management

Processes
Communications planning: determining the
information and communications needs of the
stakeholders
Information distribution: making needed
information available in a timely manner
Performance reporting: collecting and
disseminating performance information
Administrative closure: generating, gathering,
and disseminating information to formalize
phase or project completion
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Communications Planning
Communication planning involves determining the information

and communication needs of the stakeholders, when they will

need it, how it will be given to them, and by whom
The main input to this process is communication requirements,
which includes information such as:
project organization and stakeholder responsibility relationship

disciplines, departments, and specialties involved in the project

number of people involved and their location

The main tool for this process is a stakeholder analysis for project

communications
The main output is a communications management plan - a
document that guides project communications
58

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Communications Management Plan

A description of a collection and filing structure for gathering and storing

various types of information - organizing documents

A distribution structure describing what information goes to whom, when, and

how. Do executives receive different formats of status report?

A format for communicating key project information. Is there a template for

preparing status report? Hard copy or e-mail?

A project schedule for producing the information. Do stakeholders know when

to expect status report?

Access methods for obtaining the information - who can see what documents,

what information is online, etc.

A method for updating the communications management plans as the project

progresses and develops. Who will update?

A stakeholder communications analysis. What kinds of information will be

distributed to which stakeholder?

59

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Sample Stakeholder Analysis for

Project Communications

60

Stakeholders

Document Name

Document
Format

Contact Person Due

Customer
Management

Monthly Status
Report

Hard copy

Gail Feldman,
Tony Silva

First of month

Customer
Business Staff

Monthly Status
Report

Hard copy

Julie Grant,

First of month

Customer
Technical Staff

Monthly Status
Report

E-mail

Internal
Management

Monthly Status
Report

Hard copy

Bob Thomson

First of month

Internal
Business and
Technical Staff

Monthly Status
Report

Intranet

Angie Liu

First of month

Training
Subcontractor

Training Plan

Hard Copy

Jonathan Kraus

11/1/1999

Software
Subcontractor

Software
Implementation
Plan

E-mail

Barbara Gates

6/1/2000

Jeff Martin
Evan Dodge,

First of month

Nancy Michaels

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Suggestions for Improving Project

Communications
Good communication is vital to the management and

success of a project
Applying few methodologies can improve
communication. They are:
Resolve conflicts effectively

Develop better communication skills

Run effective meetings
Use templates for project communications

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Developing Better Communication

Skills
Most information technology professional enter the field

62

because of their technical skills, however, most find that

communication skills are the key to advancing their career
Most companies spend a lot of money for technical training,
some other do for both technical and communication skills
Senior management needs to have high standards for
presentations, reporting, and behavior towards others
Allocation of time for report or presentation preparation,
meeting with customers, and assisting when necessary, are
important
Communication can be improved through proper planning,
support, and leadership form management
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Running Effective Meetings

A well-run meeting can be a vehicle for fostering team building

and reinforcing expectations, roles, relationships, and

commitment to the project.
A poorly run meeting can have a detrimental effect on a project
Some guidelines for improving meetings:
Define the purpose and intended outcome of the meeting

Determine who should attend the meeting

Provide an agenda to participants before meeting
Prepare handouts, visual aids, and logistics
Run meetings professionally: have ground rules, control time, encourage

63

participation, summarize key issues, clarify decisions and actions, and have
minutes takes
Make meetings fun with some activities
Avoid meetings when not necessary
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Use Templates: Sample Template

for a Monthly Progress Report
I.

Accomplishments for Month of January (or appropriate month):

Describe most important accomplishments. Relate to project's Gantt chart
Describe other important accomplishments, one bullet for each. If any issues were
resolved from the previous month, list them as accomplishments.

II.

Plans for February (or following month):

Describe most important items to be accomplished in the next month. Again relate
to the project's Gantt chart.
Describe other important items to accomplish, one bullet for each

64

III.

Issues: Briefly list important issues that surfaced or are still important. Managers
hate surprises and want to help the project succeed, so be sure to list issues.

IV.

Project Changes (Date and Description):List any approved or requested

changes to the project. Include the date of the change and a brief description.
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Outline of a Final Project

Documentation
I.

Project description

II.

Project proposal and backup data (request for proposal, statement of work,
proposal correspondence, and so on)

III.

Original and revised contract information and client acceptance documents

IV.

Original and revised project plans and schedules (WBS, Gantt and PERT charts,
cost estimates, communications management plan, etc.)

V.

Design documents

VI.

Final project report

VII.

Deliverables, as appropriate

VIII. Audit reports

65

IX.

Lessons learned reports

X.

Copies of all status reports, meeting minutes, change notices, and other written
and electronic communications
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Developing a Communications
Infrastructure
A communications infrastructure is a set of tools, techniques, and

principles that provide a foundation for the effective transfer of

information
Tools include e-mail, project management software, groupware,
fax machines, telephones, teleconferencing systems, document
management systems, and word processors
Techniques include reporting guidelines and templates, meeting
ground rules and procedures, decision-making processes,
problem-solving approaches, and conflict resolution and
negotiation techniques
Principles include using open dialog and an agreed upon work
ethic.
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Using Software to Assist in Project

Communications
One of the biggest problems on large projects is

providing most recent project plans, Gantt charts,

specifications, meeting information, change requests,
and so on to all or selected stakeholders
There are many software tools to aid in project
communications
Microsoft Project Central is a companion product of
Microsoft Project, which helps facilitate collaboration
and communication between project stakeholder over
the Intranet
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