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OPSM 639, C. Akkan1 Project Management Organization Structures Organization of project teams and their leadership structures differ according to certain.

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Presentation on theme: "OPSM 639, C. Akkan1 Project Management Organization Structures Organization of project teams and their leadership structures differ according to certain."— Presentation transcript:

1 OPSM 639, C. Akkan1 Project Management Organization Structures Organization of project teams and their leadership structures differ according to certain characteristics of projects. –Some of the important differences are: who the project leader is, who has certain responsibilities and who makes the decisions.

2 OPSM 639, C. Akkan2 Project Management Organization Structures Three main types organization structures used in projects: –Functional project organization –Pure project organization –Matrix project organization

3 OPSM 639, C. Akkan3 Functional Project Organization General Manager Functional Manager Worker Project Coordination

4 OPSM 639, C. Akkan4 Functional Project Organization Key Characteristics –Project teams formed within the functional units. –Nobody responsible for the entire project. –Leadership occurs within functional units (expertise centers). Leadership belongs to technical experts.

5 OPSM 639, C. Akkan5 Functional Project Organization Characteristics of projects suitable for this organization structure: –Solution of technical problems is important. –Integration of different functional units work is not necessary. –Stable environment. –Success depends on application of narrow technical know-how. –Usually one functional unit is dominant (due to technical reasons).

6 OPSM 639, C. Akkan6 Pure Project Organization Characteristics –Project requiring major changes. –Hence, a small, self-sufficient and full-time team is set up. –The team leader is like an entrepreneur. –Leader has full responsibility over the project. –Functional units are stable, provide support to project teams.

7 OPSM 639, C. Akkan7 Pure Project Organization General Manager Project Manager Worker Marketing Finance Human Resources Project Coordination Legal

8 OPSM 639, C. Akkan8 Pure Project Organization Projectitis –a strong divisiveness occurs between the project team and the parent organization. –Project team members have difficulty in going back to their functional units when the project is over.

9 OPSM 639, C. Akkan9 Matrix Project Organization A hybrid form that combines both some characteristics of functional and pure project organization forms. Project manager and functional managers share responsibility. –Project manager decides what tasks will be done, and when they will be done. –Functional manager decides who will work in the project and which technologies will be used. –Members of the project team have two bosses that they report to. Team members could be working on multiple projects.

10 OPSM 639, C. Akkan10 Matrix Project Organization Characteristics of projects suitable for this organization structure : –Integration of work done by different functional units is very important. –Changes (instability) both inside and outside the company. –Success does not depend on application of a narrow expertise.

11 OPSM 639, C. Akkan11 Matrix Project Organization Matrix structures differ according to the weight of the project manager (relative to functional managers) : (1) Lightweight (2) Middleweight - the traditional one (3) Heavyweight

12 OPSM 639, C. Akkan12 Lightweight Matrix Project Organization General Manager Functional Manager Worker Project coordination

13 OPSM 639, C. Akkan13 Lightweight Matrix Project Organization In lightweight structures... –Representatives from each functional unit perform coordination and support. –Functional managers have real power. They provide functional input. –Project coordinator Is responsible for the coordination/intergration of inputs from different functional units. Does not have direct authority over the workers.

14 OPSM 639, C. Akkan14 Heavyweight Matrix Project Structure General Manager Functional Manager Manager of Project Managers Worker Project Manager Project Coordination

15 OPSM 639, C. Akkan15 Heavyweight Matrix Project Structure In heavyweight structures... –Integration is very important and is the key responsibility of the project leader. –Objective is to provide a perfect system solution, not technical excellence within a narrow functional area. –Project leader works with a core team of functional leaders. They have power to get things done within their units.

16 OPSM 639, C. Akkan16 Heavyweight Matrix Project Structure Characteristics of the project leader –A effective manager who is experienced in more than one functional area. –Works like a general manager (CEO) within the project. Can influence details. –Works like the conductor of an orchestra: Keeps track of how certain critical tasks are done and coordinated as a whole.

17 OPSM 639, C. Akkan17 Evaluating Alternative Organizational Structures Use of (human) resources –Efficiency, flexibility, motivation Performance measurement –Career paths, performance reviews Focus –project vs. regular tasks Cross-functional integration Build-up and use of functional expertise and know-how.

18 OPSM 639, C. Akkan18 Evaluating Functional Organization

19 OPSM 639, C. Akkan19 Evaluating Pure Project Organization

20 OPSM 639, C. Akkan20 Evaluating Matrix Organization StrengthsWeaknesses Single point accountabilityManager skill level high Customer interface clearCompetition for resources Rapid reactionEmployee recognition Duplication reducedManagement cooperation required Technology development Career development Disbanded easily


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