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Manajemen Proyek
Chapter 3
Problems
1. Much has been written about how to identify and interpret signs that indicate that a
new organizational form is needed. Grinnell and Apple have identified five signs in
addition to those previously described in Section 3.6:
Management is satisfied with its technical skills, but projects are not meeting
time, cost, and other project requirements.
There is a high commitment to getting project work done, but great fluctuation
in how well performance specifications are met.
Highly talented specialists involved in the project feel exploited and misused.
Particular technical groups or individuals constantly blame each other for
failure to meet specifications or delivery dates.
Projects are on time and to specification, but groups and individuals arent
satisfied with the achievement.

Grinnell and Apple state that there is a good chance that a matrix structure will eliminate
or alleviate these problems. Do you agree or disagree? Does your answer depend on the
type of project? Give examples or counterexamples to defend your answers.

Answer:

Grinnell and Apple are correct in that a matrix would eliminate these problems provided
that the problems are the result of poor interaction between diverse functional groups.
If these problems are common to projects which stay within one line organization, then
the problems rest with the line managers.

2. One of the most difficult problems facing management is that of how to minimize the
transition time between changeover from a purely traditional organizational form to a
project organizational form. Managing the changeover is difficult in that management
must consistently provide individual training on teamwork and group problem
solving; also, provide the project and functional groups with assignments to help build
teamwork.
Answer:
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Converting from a traditional to a project structure may take between two to three
years if employees feel that they cannot effectively report to more than one boss, or if
they feel that they will not be evaluated effectively. Any organizational structural
change must be married to the wage and salary administration program. Once
employees learn how to report to multiple managers, a company can convert from one
project organizational form to another, virtually overnight.

3. Do you think that personnel working in a project organizationalstructure should


undergo therapy sessions or seminars on a regular basis so as to better understand
their working environment? If yes, how frequently? Does the frequency depend upon
the project organizational form selected, or should they all be treated equally?
Answer:
People should undergo therapy sessions both during conversion and for some time
after, say two to three years. The follow-up sessions are designed to obtain feedback
from the employees and their recommendations as to how the system can be improved.
This should be done regardless of the form.

4. Which organizational form would be best for the following corporate strategies?
a. Developing, manufacturing, and marketing many diverse but interrelated
technological products and materials
b. Having market interests that span virtually every major industry
c. Becoming multinational with a rapidly expanding global business
d. Working in a business environment of rapid and drastic change, together with
strong competition

Answer:

A matrix structure is well suited for each of these.

5. Do you think that documenting relationships is necessary in order to operate effectively


in any project organizationalstructure? How would you relate your answer to a
statement made in the previous chapter that each project can set up its own policies,
procedures, rules, and directives as long as they conform to company guidelines?
Answer:
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Not all project managers have the same amount of project authority. Furthermore, the
project manager, by virtue of his ability to establish his own project policies and
procedures, can delegate as much authority as he wishes. Everything must be
documented so that all players understand the ground rules. This will be discussed in
more depth in Section 5.3.

6. In general, how could each of the following parameters influence your choice for an
organizationalstructure? Explain your answers in as much depth as possible.
a. The project cost
b. The project schedule
c. The project duration
d. The technology requirements
e. The geographical locations
f. The required working relationships with the customer

Answer:

Under special circumstances, each of these factors can be used as the criteria for
selecting an organizational form. In general, the only good reason for changing the
organizational form is to get better control of resources. However, since customers may
consider your organization as an extension of their own company, they may wish to
have some say as to the organizational structure for a project.

7. In general, what are the overall advantages and disadvantages of superimposing one
organizational form over another?
Answer:
Combining organizational forms is designed to obtain the best of two worlds. For
example, the matrix is a combination of the horizontal and traditional structure. The
idea is to obtain an organizational structure where the advantages grossly outweigh the
disadvantages.

8. In deciding to go to a new organizational form, what impact should the capabilities of


the following groups have on your decision?

a. Top management
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b. Middle management

c. Lower-level management

Answer:

Obviously, the capabilities of all levels of management are important. However, if the
middle and lower-level managers have demonstrated the ability to manage resources,
then more authority can be delegated to them and the company can be run on a day-to-
day basis by cooperation between the project and functional managers.

9. Should a company be willing to accept a project that requires immediate organizational


restructuring? If so, what factors should it consider?
Answer:
Companies will always be willing to accept organizational restructuring if they really
want or need the customers business. Once a company accepts project management,
the company becomes dynamic and can usually adapt to a changing environment very
quickly because individuals learn how to report effectively to multiple managers.
Management must consider the feasibility of the change, the impact on the existing
organization, and especially the possibility that this might become a precedent for the
future.

10. Table 26 identifies the different life cycles of programs, projects, systems, and
products. For each of the life cycles phases, select a project organizational form that
you feel would work best. Defend your answer with examples, advantages, and
disadvantages
Answer:
Generally speaking, life cycles are used on long term projects where each life cycle
phase can be measured in weeks or months. Organizational structures, although they
must be able to adapt to a changing environment, are designed for a stable flow of
work. Companies should not design organizational forms based upon the individual
life cycle phases but rather the total project life cycle. There are exceptions, however,
as in the situation where the first phase is R & D and the remaining phases include
selling in the market. (See Problem 311)
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11. A major steel producer in the United States uses a matrix structure for R&D. Once the
product is developed, the product organizationalstructure is used. Are there any
advantages to this setup?
Answer:
R & D is one of the best applications of the matrix structure because the best technical
resources can be shared between projects and the general atmosphere fosters teamwork.

12. A major American manufacturer of automobile parts has a division that has
successfully existed for the past ten years with multiple products, a highly sophisticated
R&D section, and a pure traditionalstructure. The growth rate for the past five years
has been 12 percent. Almost all middle and upper-level managers who have worked in
this division have received promotions and transfers to either another division or
corporate headquarters. According to the book, this division has all the prerequisites
signifying that they should have a project organizational form of some sort, and yet
they are extremely successful without it. Just from the amount of information
presented, how can you account for their continued success? What do you think would
be the major obstacles in convincing the personnel that a new organizational form
would be better? Do you think that continued success can be achieved under the present
structure?
Answer:
The company has been very successful in the past using informal project management
where people appear to be talking to one another and making decisions which are in
the best interest of the project. This type of structure cannot work effectively for large
organizations or large projects which span several departments. However, many
companies find this organizational structure effective because they get the advantages
of formal project management without the disadvantages of the necessity for formally
defined authority and a massive flow of paperwork. Personnel resent organizational
change unless they are convinced that the new structure will give them more authority,
responsibility, opportunity for advancement, ability to build an empire, more status,
more pay, and other such arguments.

13. Several authors contend that technology suffers in a pure product organizational form
because there is no one group responsible for long-range planning, whereas the pure
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functional organization tends to sacrifice time and schedule. Do you agree or disagree
with this statement? Defend your choice with examples.
Answer:
Both statements are correct.

14. Below are three statements that are often used to describe the environment of a matrix.
Do you agree or disagree? Defend your answer.
a. Project management in a matrix allows for fuller utilization of personnel.
b. The project manager and functional manager must agree on priorities.
c. Decision-making in a matrix requires continual trade-offs on time, cost,
nntechnical risk, and uncertainty

Answer:

All three statements are correct.

15. Assume that you have to select a project organizational form for a small company. For
each form described in this chapter, discuss the applicability and state the advantages
and disadvantages as they apply to this small company. (You may find it necessary to
first determine the business base of the small company.)
Answer:
The first concern in selecting an organizational form for a small company is to
minimize the overhead rate. This is usually accomplished by minimizing the number
of top-level managers while trying to delegate the minimum amount of authority
(especially for decision-making) to lower-level personnel. Therefore, although some
companies may wish to have an informal matrix, the usual selection is the formal,
traditional structure.

16. How would each person identified below respond to the question, How many bosses
do you have?
a. Project manager
b. Functional team member
c. Functional manager (Repeat for each organizational form discussed)

Answer:
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Project managers believe that they report to every executive in the organization and the
customer even though they may be attached to one line group. In addition, some project
managers believe that they must report to every line manager as well since only the line
managers control resources. Function team members report formally to their line
manager and informally to all project managers. Some line employees try to avoid the
horizontal informal reporting by asserting that they have only one boss. Functional
managers report to only one person, their functional executive.

17. If a project were large enough to contain its own resources, would a matrix
organizational form be acceptable?
Answer:
If a project organization were large enough to control its own resources on a full-time
basis, then a project organizational form may not be acceptable. Most of the time, when
this occurs, the project is shown as a vertical line on the organizational chart, perhaps
as a separate division, rather than a horizontal line.

18. One of the most common reasons for not wanting to adopt a matrix is the excessive
administrative costs and accompanying overhead rates. Would you expect the overhead
rates to decrease as the matrix matures? (Disregard other factors that can influence the
overhead rates, such as business base, growth rate, etc.)
Answer:
Yes. There is a tendency to create more upper-level management slots when first going
to a matrix in order to obtain better control. However, there comes a point where the
matrix becomes mature and less top-level personnel are required

19. Which type of organizationalstructure is best for R&D personnel to keep in touch with
other researchers?
Answer:
A matrix organizational form is that structure which best fosters teamwork and
communications. The reason for this is because it forces people in each one of the
functional disciplines to communicate with one another, and if the project manager
gives these people more information than they have to have (i.e. the total picture), then
this has a tremendous bearing on how well people will communicate with one another
and work together.
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20. Which type of organizational form fosters teamwork in the best manner?
Answer:
A matrix organizational form is that structure which best fosters teamwork and
communications. The reason for this is because it forces people in each one of the
functional disciplines to communicate with one another, and if the project manager
gives these people more information than they have to have (i.e. the total picture), then
this has a tremendous bearing on how well people will communicate with one another
and work together.

21. Canadian bankers have been using the matrix organizationalstructure to create
banking general managers for all levels of a bank. Does the matrix structure readily
admit itself to a banking environment in order to create future managers? Can we
consider a branch manager as a matrix project manager?
Answer:
Yes. The matrix structure can be used in banks to create banking general managers.
Branch managers are often regarded as banking general managers performing in a
matrix.

22. A major utility company in Cleveland has what is commonly called fragmented
project management, where each department maintains project managers through staff
positions. The project managers occasionally have to integrate activities that involve
departments other than their own. Each project normally requires involvement of
several people. The company also has product managers operating out of a rather crude
project (product) organizationalstructure. Recently, the product managers and project
managers were competing for resources within the same departments. To complicate
matters further, management has put a freeze on hiring. Last week top management
identified 120 different projects that could be undertaken. Unfortunately, under the
current structure there are not enough staff project managers available to handle these
projects. Also, management would like to make better use of the scarce functional
resources. Staff personnel contend that the solution to the above problems is the
establishment of a project management division under which there will be a project
management department and a product management department. The staff people feel
that under this arrangement better utilization of line personnel will be made, and that
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each project can be run with fewer staff people, thus providing the opportunity for more
projects. Do you agree or disagree, and what problems do you foresee?
Answer:
A separate project management division would alleviate many of the problems.
However, line managers may perceive this new division as a threat to their power base
and authority, and may not provide the support needed. A training program will be
necessary to convince the line managers that the new structure is in the best interest of
the company.

23. Some organizationalstructures are considered to be project-driven. Define what is


meant by project-driven. Which organizational forms described in this chapter would
fall under your definition?
Answer:
Project-driven industries identify all corporate profitability and loss on a project-by-
project basis since the entire function of the organization is to support projects. Such
industries would be aerospace, defense, construction, and divisions within larger
companies, such as the MIS groups. Matrix structures are ideal for project-driven
industries.

24. Are there any advantages to having a single project engineer as opposed to having a
committee of key functional employees who report to the director of engineering?
Answer:
It is always better to have one individual who is dedicated and committed (perhaps
through full-time assignment) than to fragment the responsibility among several people
who must share their loyalties among several projects.

25. The major difficulty in the selection of a project organizational form involves
placement of the project manager. In the evolutionary process, the project manager
started out reporting to a department head and ultimately ended up reporting to a senior
executive. In general, what were the major reasons for having the project manager
report higher and higher in the organizational structure?
Answer:
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The major reasons are usually attributed to the responsibility for profit and loss. The
greater ones influence on profit or loss, the higher one usually reports. Another reason
for reporting high is customer interfacing.

26. Ralph is a department manager who is quite concerned about the performance of the
people beneath him. After several months of analysis, Ralph has won the acceptance
of his superiors for setting up a project management structure in his department. Out
of the twenty-three departments in the company, his will be the only one with
formalized project management. Can this situation be successful even though several
projects require interfacing with other departments?
Answer:
For projects internal to the department, this works well. However, when interfacing
with other departments becomes necessary, Ralph may find a greater need for
interpersonal skills

27. A large electronics corporation has a multimillion dollar project in which 90 percent of
the work stays within one division. The division manager wants to be the project
manager. Should this be allowed even though there exists a project management
division?
Answer:
As long as the other divisions are willing to provide support, this situation can work.
The other divisions must be allowed to participate in planning and decision-making.
Using the project management division would be easier, but not necessarily more
practical. Not all projects must flow through the project management division

28. The internal functioning of an organization must consider: The demands imposed on
the organization by task complexity Available technology The external environment
The needs of the organizational membership Considering these facts, should an
organization search for the one best way to organize under all conditions? Should
managers examine the functioning of an organization relative to its needs, or vice
versa?
Answer:
Project management advocates that there is no one best way to organize under all
conditions. Organizations must be dynamic in order to respond rapidly to an ever-
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changing environment. The needs of the organization should determine the structure
and, as needs change, so should the structure.

29. Project managers, in order to get the job accomplished, need adequate
organizationalstatus and authority. One corporate executive contends that an
organizational chart such as that in Figure 36 can be modified to show that the project
managers have adequate authority by placing the department managers in boxes at the
top of the functional responsibility arrowheads. The executive further contends that,
with this approach, the project managers appear to be higher in the organization than
their departmental counterparts but are actually equal in status. Do you agree or
disagree with the executives idea? Will there be a proper balance of power between
project and department managers with this organizationalstructure?
Answer:
This situation can do more harm than good. Organizational charts do not necessarily
indicate the balance of power in the organization. The line managers may be upset
about seeing project managers drawn in higher positions on the organizational charts.

30. Defend or attack the following two statements concerning the operation of a matrix:
There should be no disruption due to dual accountability. A difference in judgment
should not delay work in progress.
Answer:
Both statements are true and should be considered in developing matrix structures.

31. A company has fifteen projects going on at once. Three projects are over $5 million,
seven projects are between $1 million and $3 million, and five projects are between
$500,000 and $700,000. Each project has a full-time project manager. Just based upon
this information, which organizational form would be best? Can all the project
managers report to the same person?
Answer:
With this many project managers, it is best to set up a line group for project managers.
It is not uncommon for 15 project managers to report to one manager of project
managers. The reason for this is that project managers should not require any direct
supervision.
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32. A major insurance company is considering the implementation of project management.


The majority of the projects in the company are two weeks in duration, with very few
existing beyond one month. Can project management work here?
Answer:
Project management can work here, but a matrix is not practical. Departmental project
management may be best.

33. The definition of project management in Section 1.9 identifies project teams and task
forces. How would you distinguish between a project team and a task force, and what
industries and/or projects would be applicable to each?
Answer:
Project task forces generally have full-time membership whereas pure project
management advocates sharing resources on several projects which can support full-
time membership.

34. Can informal project management work in a structured environment at the same time
as formal project management and share the same resources?
Answer:
It is highly unlikely that both formal and informal project management can be in use at
the same time and yet share the same resources.

35. Several people believe that the matrix structure can be multidimensional (as shown in
Figure 312). Explain the usefulness of such a structure.
Answer:
The best application of such a structure is for multinational corporations and
multinational projects.

36. Many companies have informal project management where work flows horizontally,
but in an informal manner. What are the characteristics of informal project
management? Which types of companies can operate effectively with informal project
management?
Answer:
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Informal project is designed for non-project-driven organizations. The characteristics


are (1) low need to define authority of the project manager, (2) low need to bury the
project in paperwork, and (3) free flow of information among company personnel.

37. Some companies have tried to develop a matrix within a matrix. Is it possible to have
a matrix for formal project control and an internal authority matrix, communication
matrix, responsibility matrix, or a combination of several of these?
Answer:
Yes. It is possible to have one matrix for the flow of work and a second matrix for
communications or authority.

38. Is it possible for a matrix to get out of control because of too many small projects, each
competing for the same shared resources? If so, how many projects are too many? How
can management control the number of projects? Does your answer depend on whether
the organization is project-driven or nonproject-driven?
Answer:
Project-driven organizations are used to these problems and cope well. Some
companies may have 50100 projects going on at the same time. If the company has a
severe problem because of too many projects, then executives must be willing to delay
approval or startup of projects in order to match availability of resources.

39. A government subcontractor operates with a pure specialized product management


organizationalstructure and has four product lines. All employees are required to have
a top secret security clearance. The subcontractors plant is structured such that each
of the four product lines occupies a secured area in the building. Employees wear
security badges that give them access to the different areas. Most of the employees are
authorized to have access only to their area. Only the executives have access to all four
areas. For security reasons, functional employees are not permitted to discuss the
product lines with each other. Many of the projects performed in each of the product
lines are identical, and severe duplication of efforts exist. Management is interested in
converting over to a matrix structure to minimize the duplication of effort. What
problems must be overcome before and during matrix implementation?
Answer:
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The problem is not necessarily with matrix design as much as it is with security. Going
to a matrix may make priority information available to more people than necessary.

40. A company has decided to go to full project management utilizing a matrix structure.
Can the implementation be done in stages? Can the matrix be partially implemented,
say, in one portion of the organization, and then gradually expanded across the rest of
the company?
Answer:
Implementation can be done in stages, say from division to division. However, this will
take much longer than implementing project management across the entire
organization simultaneously. Partial implementation may result in having to solve the
same problems over and over again.

41. A company has two major divisions, both housed under the same roof. One division is
the aerospace group, where all activities are performed within a formal matrix. The
second division is the industrial group, which operates with pure product management,
except for the MIS department, which has an informal matrix. If both divisions have to
share common corporate resources, what problems can occur?
Answer:
As long as both categories of projects are prioritized from the same list, the line
managers may find it easier to allocate resources. Without common priorities, short-
term thinking together with immediate profits may become more important than long-
term thinking and long-term profits.

42. Several Fortune 100 corporations have a corporate engineering group that assumes the
responsibility of the project managementproject engineering function for all major
capital projects in all divisions worldwide. Explain how the corporate engineering
function should work, as well as its advantages and disadvantages.
Answer:
The corporate engineering function is designed to supply a professional project
manager to any line group needing service. The project manager reports solid to
corporate engineering and dotted to whichever manager requires the services.