Project Management

Organizational Structure & Culture

Presented by Team 2
 Team 2

Herdiani Sinatrya Jeffry Dwi Saputra

9116202302 9116202303

Muhammad Ali Affandi Ade Rochmanu

9116202310 9116202316
BIG PICTURE
Project Management
PRESENTATION
Scheme
 PRESENTATION
Scheme

Project Management Structure

The Pro & Cons of The Structure

Organizational Culture

Implication of Organizational Culture

Summary & Discussion

Project Management Structure
What is Organization Structure?
 Organization Structure

An organizational structure defines how activities such

as task allocation, coordination and supervision are directed
toward the achievement of organizational aims.
Project Management Structure * Gray, Clifford F., and Erik W.
Larson. (2006). Project
management: the managerial
process. Fifth Ed. Boston:
McGraw-Hill/Irwin.

Functional Organization

Dedicated Teams /
Projectized Organization

Matrix Arrangement
Project Management Structure *Project Management Institute (2012).
A guide to the project management
body of knowledge (PMBOK guide).
Fifth Ed. Newtown Square, Pa, Project
Management Institute

Organizational Chart (Hierarchical)

Responsibility Chart (Matrix)

Role Description (Text)

 Functional Organization

A functional organization is a traditional structure where the organization is

divided based on the functions performed by that particular group of
people, such as Human Resources, Information Technology, Marketing,
Service, etc.
Dedicated Teams
Projectized Organization

Assembly
Test
Matrix Arrangements
What do you think about Apple Structure?

Have you heard about Projectitis?

 PRESENTATION
Scheme

Project Management Structure

The Pro & Cons of The Structure

Organizational Culture

Implication of Organizational Culture

Summary & Discussion

The Pro & Cons of The Structure
The Pro & Cons of The Structure

Functional Organization

Dedicated Teams /
Projectized Organization

Matrix Arrangement
 Functional Organization
Pros Cons

No Change Lack of Focus

Flexibility Poor Integration

In-Depth Expertise Slow

Easy Post-Project Transition Lack of Ownership

 Dedicated Project Team /
Projected Organization
Pros Cons

Simple Expensive

Fast Internal Strife

Cohesive Limited Technological Expertise

Cross-Functional Integration Difficult Post-Project Transition

 Matrix Arrangement
Pros Cons

Efficient Dysfunctional Conflict

Strong Project Focus Infighting

Easier Post-Project Transition Stressful

Flexible Slow
Responsibilities in Matrix Structure
 Different Matrix Form
Weak Balanced Strong

Similar to Functional Project Manager define Full Authority in Project

Approach what to accomplish Manager

Authority in Functional Functional Manager concern Functional Manager act as

Manager how to accomplish consultant and control

Project Manager act as Moderate authority in *Functional department as

Staff Assistant Project Manager subcontractor

Merger between technical

and operational
 Hobbs and Mnard identify seven factors that should
influence the choice of project management structure

Size of the Project

Strategic Importance
Novelty and need for innovation
Environmental Complexity (number of external interfaces)
Budget and time constrain
Stability of resource requirement
 Matrix management works, but it sure is difficult at times. All
matrix managers must keep up their health and take Stress-Tabs.

A Project Manager
Projectitis
Apple Case Studies
 PRESENTATION
Scheme

Project Management Structure

The Pro & Cons of The Structure

Organizational Culture

Implication of Organizational Culture

Summary & Discussion

Organizational Culture
Our observations of other firms, and research suggest there is a
strong connection between project management structure,
organizational culture, and project success.
Gray, C. & Larson, E.
What is Organization Culture ?
 Organization Culture

a system of shared norms, beliefs, values, and

assumptions which binds people together,
thereby creating shared meanings.
 10 Primary Characteristic
Research suggested

Member Identity
Team Emphasis
Reward Criteria
Management Focus
Open-System Focus
Conflict Tolerance
Unit Integration
Control
Risk Tolerance Means vs End Orientation
 Key Dimensions
Member Identity
Job Organization
Team Emphasis
Individual Group
Management Focus
Task People
Unit Integration
Independent Interdependent
Control
Loose Tight
Risk Tolerance
Low High
Reward Criteria
Performance Other
Conflict Tolerance
Low High
Means vs End Orientation
Means Ends
Open-System Focus
Internal External
 Culture perform several important function in
Organization

Provides a sense of identity to its member

Helps legitimize the management system of the organization
Clarifies and reinforces standards of behavior
Helps create social order
Deciphering Organization Culture could be interpretative
and subjective, there are several way:

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
 PRESENTATION
Scheme

Project Management Structure

The Pro & Cons of The Structure

Organizational Culture

Implication of Organizational Culture

Summary & Discussion

Implication of Organizational Culture
 Project managers have to be able to operate in
several, potentially diverse, organizational cultures.
One of organization that appears to fit this ideal
profile is

3M has received acclaim for creating an entrepreneurial culture

within a large corporate framework.
 3M Case Studies
Cultural Dimension of Supportive
of Project Management

Member Identity
Job Organization
Team Emphasis
Individual Group
Management Focus
Task People
Unit Integration
Independent Interdependent
Control
Loose Tight
Risk Tolerance
Low High
Reward Criteria
Performance Other
Conflict Tolerance
Low High
Means vs End Orientation
Means Ends
Open-System Focus
Internal External
Summary & Discussion
 Summary

The organizational structure will dictate the level of power, authority, and resources
available to a project manager.

A traditional functional organization gives the project manager very little, if any,
authority, whereas a projectized organization will provide the project manager with
significant authority.
 Reference
Belinda. Functional Organization vs Projectized Organization, (5 Dec 2011).<https://
www.passionatepm.com/blog/functional-organizations-versus-projectized-organizations-
pmp-concept-10>
Caulfield, Brian. Steve Jobs Killer Instintcts. Forbes. (6 Apr 2009). <http://www .forbes.com/
2009/04/06/apple-microsoft-advertising-technology-enterprise- tech-apple.html>
Gray, Clifford F., and Erik W. Larson. (2006). Project management: the managerial process.
Fifth Ed. Boston: McGraw-Hill/Irwin.

Project Management Institute (2012). A guide to the project management body of

knowledge (PMBOK guide). Fifth Ed. Newtown Square, Pa, Project Management Institute
Yoffie, David B. and Slind Michael. Apple Inc., (2008), Harvard Business School. Reviewed 8
Sep 2008.
 Discussion

Why it is important to assess the culture of an organization before

deciding the project structure?

What do you believe is more important for successfully completing a

project - the formal project management structure or the culture of
the parent organization?
Thats a wrap
Opening