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At the top of your paper provide the reference to your Journal Article. Use a scholarly source as described above. Utilizing a non-scholarly/non-peer-reviewed source will result in significant point deduction. Introduction Give a brief overview of the chapter of Kloppenborg covered for the week. Be sure to cite any reference to the text. Include the text in a reference section at the end. Summary (cite article when appropriate) Give a summary of the article or case study. Relevant Points (cite article when appropriate) Identify the relevant points of the article or case study that coincide with the chapter covered for the week. Critique Provide a balanced criticism of the article or case study. What were the strengths and weaknesses of the study? How do the findings support the field of project management? How could it have been altered to better support the field? Application of Concept(s) Apply the concept(s) to your career, field, industry, etc. Provide a real world application not a general statement. This section should demonstrate how you can take the findings of this article or case study and utilize them in a practical way in your career, field or practice. Make the application specific to your own experience. Do not just provide a general overview of the usefulness of the findings. Be specific; not general. References (this does not count toward the required paper length) Every paper typed in this course should be in APA formatting (title page, reference page, NO abstract page, in-text citations, running head, page numbers, Times New Roman 12 font, 1 inch margins, double-spacing, 3 page content etc…). Lastly, add the summary of the research paper that you developed about 300 words separately. Do not copy the research paper itself.
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CHAPTER
4
Organizational Capability: Structure,
Culture, and Roles
CHAPTER OBJECTIVES
CORE OBJECTIVES:
Compare and contrast the
advantages and disadvantages of the functional,
project, strong matrix,
balanced matrix, and
weak matrix methods of
organization; describe
how each operates and
when to use each.
Relate how an organization s structure influences the implementation of its strategic plan.
Describe organizational
culture elements that are
helpful in planning and
managing projects and
demonstrate how to
overcome organizational
culture elements that
hinder project success.
Describe different project life cycle models and
distinguish when each is
appropriate.
BEHAVIORAL OBJECTIVES:
Describe the duties,
motivations, and challenges of each of the
executive, managerial,
and team roles in projects
and list important attributes for selecting each.
Given a project situation,
explain ethical behavior
consistent with PMI s
Code of Ethics and
Professional Conduct.
Predict the impact of organizational structure and
associated culture on individual and team behaviors.
Predict the impact of
organizational structure
and associated culture
on individual and team
performance.
Monkey Business Images/Shutterstock.com
After completing this
chapter, you should
be able to:
We implement project management best practices for the purpose of increasing
the likelihood for project success. Formerly, as an executive, I was responsible
for establishing, operating, and evolving a national project management office
(PMO) for one of the nation s largest print/mail and electronic outsourcing firms.
Organizational structure, culture, roles and responsibilities of project participants, and project life cycle standard processes and tools were critical influencers to achieving project success. As there is no single way to implement project
management, how we chose to address each influencer shaped the way projects
were managed. A snapshot of our approach follows:
From an operations perspective, there was a strategic need to implement a
centralized approach to project management. Through a number of mergers and
acquisitions, 10 geographically dispersed operation centers were servicing a
broad range of expanding customer needs. As a result, two key factors were at
play. One: the customer base was growing from regionally based to nationally
based customers. Two: the best-of-the-best operations technology needed to be
leveraged across all centers. Structurally, the decision was made to consolidate
100
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02-200-203
PMBOK ® 6E
PRIMARY OUTPUTS
1.2 Foundational elements
Life Cycle and Development Approach
2.4 Organizational systems
3.4 Project manager competencies
Leader Roles and Responsibilities
4.3 Direct and Manage
Project Work
4.1 Develop
Project Charter
4.2 Develop Project
Management Plan
4.7 Close Project
or Phase
4.4 Direct and Manage
Project Work
PMBOK® GUIDE
Topics:
1.2 Foundational
elements
2.4 Organizational
systems
4.5 Monitor and
Control Project Work
4.6 Perform Integrated
Change Control
operation centers to three, geographically in the East, Central, and West. This
meant that internal and external projects that applied nationally could no longer
be managed at a regional level using only regional resources. A new type of project manager was needed to manage national resources using a standardized set
of practices. Creating a matrixed project organization to serve the functional organization was the first phase.
3.3 The project man-
Monkey Business Images/Shutterstock.com
ager s sphere of
influence
3.4 Project manager
competencies
4.1 Develop project
charter
4.2 Develop project
management plan
4.3 Direct and manage
project work
4.4 Manage project
knowledge
4.5 Monitor and control
project work
4.6 Perform integrated
change control
4.7 Close project or
phase
CHAPTER OUTPUTS
Life Cycle and Development Approach
Leader Roles and
Responsibilities
101
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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102
Part 2 Leading Projects
Ensuring the culture would accept and support these changes was critical
to success as change is not easy and resistance was anticipated. Senior management buy-in was essential and plans were implemented to dialogue, collaborate,
and communicate the benefits of a PMO throughout the organization. The PMO s
first mission was to establish national project management standards and manage
a select few strategic national projects with a limited set of project managers.
Proof of concept was key to continued buy-in. Clear roles and responsibilities for
executive sponsors, project managers, and project team members were collaboratively established. Standard processes and tools used by the project teams were
jointly developed. Training occurred from the executive suite to project managers
and project team members. As time progressed, project success rates increased
and the PMO responsibilities were expanded to include the project management
of all strategic operational projects and new customer implementations. Career
paths for regional project managers were established. Selected regional project
managers were promoted and trained to be national project managers. The organizational structure changed with selected regional project managers reporting to the
national PMO. The executive sponsorship roles continued to evolve along with
standard processes and practices to facilitate new responsibilities. In Improving
Executive Sponsorship of Projects: A Holistic Approach, additional insight on each
influencer, considerations, pitfalls, and tips for project management implementation approaches can be found.1
Dawne E. Chandler, PhD, PMP
C
hapter 2 dealt with organizational issues of strategic planning, selecting, and resourcing projects. Chapter 3 details how to initiate a project usually by composing and
ratifying a charter. This chapter introduces both project leadership and project planning.
Leadership in this chapter includes organizational structure and culture along with roles
of all key project participants. Planning is introduced in the selection of the project life
cycle approach and introduction to the concept of a project plan. Both project leadership
and planning lead to project success, as shown in Exhibit 4.1. Effectively leading project
team members and other stakeholders leads to a foundation of respect and trust, which,
in turn leads to project success. Effective project planning lays the groundwork for effective
project execution, monitoring, control, and closeout, which also lead to project success.
EXHIBIT 4.1
DETERMINANTS OF PROJECT SUCCESS
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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Chapter 4 Organizational Capability: Structure, Culture, and Roles
103
4-1 Types of Organizational Structures
Contemporary companies choose among various methods for establishing their organizational structure. Organization structure is often developed by grouping people together
based on criteria such as functional or technical skills or long-term activities. The structure size and complexity increase with the increase in the number of employees. The
structure is the way in which an organization divides its people into distinct tasks to
achieve coordination among all these groups. Organizational structure can be considered
to include work assignments, reporting relationships, and decision-making responsibility.
Each method of structuring organizations has strengths and weaknesses. In this section,
we will investigate various organizational methods and the impact of each on managing
projects. The advantages and disadvantages of each organizational form are discussed in
the following sections and then summarized in Exhibit 4.5.
4-1a Functional
A functional organization is an organizational structure in which staff is grouped by
areas of specialization and the project manager has limited authority to assign work
and apply resources. 2 This is the traditional approach in which there are clear lines of
authority according to type of work. For example, all accountants might report to a head
of accounting, all marketers report to a head of marketing, and so on. An organizational
chart for a functional organization is shown in Exhibit 4.2. Note that everyone in the
organization reports up through one and only one supervisor. That supervisor is the
head of a discipline or function (such as marketing).
The functional manager generally controls the project budget, makes most project
decisions, and is the primary person who coordinates project communications outside
the functional areas by contacting his or her peer functional managers.
ADVANTAGES One advantage of the functional form of organization is called unity of
command all workers understand clearly what they need to do because only one boss is
EXHIBIT 4.2
FUNCTIONAL ORGANIZATION
Marketing VP
Operations VP
Finance VP
Services VP
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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104
Part 2 Leading Projects
giving them instructions. Communication is vertical and clearly established. Another
advantage is that since all workers in a discipline report to the same supervisor, they will
have an opportunity to interact frequently and can learn readily from each other and keep
their technical skills sharp. Having the same supervisor also acts as a motivating factor for
several employees to maintain and improve their technical expertise. A third advantage is
that workers know that when they finish work on a project, they will still have a job
because they will continue to report to the same functional manager. For small projects
that require most of the work from one department, the functional organization often
works well, both because of the advantages already stated and because the functional manager can share resources among various small projects and centrally control the work.
DISADVANTAGES That said, the functional form of organization can slow down communications when multiple functions need to have input. It also can be challenging from a
technical standpoint if input is required from multiple disciplines. The functional manager is
probably quite good within his or her domain, but may have less understanding of other disciplines. However, in small organizations where most people have been forced to understand
multiple areas, this may be less of an issue. Coordination between departments is frequently
conducted at the manager level as the functional managers have a great deal of decisionmaking authority. This often means communication needs to first travel up from an
employee at a low level in the structure to the manager, then across from one functional
manager to another manager, and then down from the manager to an employee at a low
level who will be working on it. This can become more complex when organizations have
multiple levels of hierarchy within functional divisions and a chain of command must be followed. In short, coordination in a functional organization is complex and time consuming.
These long communication channels often make for slow decision making and slow response
to change. Integration becomes difficult and it may lead to frustration and a decrease in motivation and innovation. Also, decisions will tend to favor the strongest functional group or
division. For these reasons, some organizations choose other forms of organization.
4-1b Projectized
The exact opposite form of functional organization is the projectized organization, which
is defined as group employees, collocated or not, by activities on a particular project. The
project manager in a projectized structure may have complete, or very close to complete,
power over the project team. 3 In this organizational form, the larger organization is broken down into self-contained units that support large projects, geographies, or customers.
Most people in the organization are assigned to a project and report upward through the
project manager, as can be seen in Exhibit 4.3. While the structure of the two organizational charts appears similar, the reporting manager is a project manager instead of a functional manager. The project manager has extensive authority for budgets, personnel, and
other decision-making issues in this organizational structure. This provides adequate time
for the project manager to make decisions. Projectized organization structure provides an
opportunity to maintain expertise on a given project.
ADVANTAGES The advantages of the projectized organizational form are very different from the advantages of the functional form. Because people from different functions
now report to the same project manager, traditional department barriers are reduced.
Since the project manager is responsible for communications, response times and decision making tend to be swift. All workers understand clearly what they need to do
because only one boss the project manager is giving them instructions.
Projectized organizational structures often utilize the technique of co-location, which
is an organizational technique in which the project team members are moved to
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 4 Organizational Capability: Structure, Culture, and Roles
105
EXHIBIT 4.3
PROJECTIZED ORGANIZATION
Project Manager 1
Project Manager 2
Project Manager 3
Project Manager 4
alternate locations (either full time or only for parts of days) to allow them to better
work with one another, and on the project in general. 4 This co-location often results
in enhanced project team identity as well as trust, collaboration, coordination, strong
customer focus, and effective integration of effort on the project.
DISADVANTAGES However, this organizational form also has disadvantages. Team
members are often assigned to just one project, even if the project only needs part of their
time, which leads to idle time. This can be costly because project team members are retained
during and even after completing the project. Since the project manager is in charge and the
team may be physically located on-site rather than with the rest of the organization, some
projects tend to develop their own work methods and disregard those of the parent organization. While some of the new methods may be quite useful, project teams not watched
closely can fail to practice important organizational cultural norms, or accepted practices,
and they sometimes fail to pass the lessons they learn on to other project teams. Team
members who are co-located, while learning more about the broader project issues, often
do not keep up their discipline-specific competence as well. Team members sometimes
worry about what they will do when the project is completed, which leads to adverse motivational, morale, and security issues. In short, motivating people could become a challenge.
4-1c Matrix
Each of the extreme strategies already described (extreme in the sense that either the
functional manager or the project manager has a great deal of authority) has strong
advantages, but also significant weaknesses. In an attempt to capture many of the advantages of both, and to hopefully not have too many of the weaknesses of either, many
organizations use an intermediate organizational strategy in which both the project manager and the functional manager have some authority and share other authority.
This intermediate strategy is the matrix organization, which is any organization in
which the project manager or project team leader actually shares responsibility for the
project with a number of individual functional managers. 5 A matrix organization is
shown in Exhibit 4.4. Note that project team members report to both functional and
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
106
Part 2 Leading Projects
EXHIBIT 4.4
MATRIX ORGANIZATION
Manager of
Project Managers
Marketing VP
Operations VP
Finance VP
Services VP
Project Manager 1
Project Manager 2
Project Manager 3
Project Manager 4
project managers. This is a clear violation of the unity-of-command principle; however,
it is necessary to enjoy the benefits of a matrix organization. In short, the hoped-for benefit of a matrix structure is a combination of the task focus of the projectized organizational structure with the technical capability of the functional structure.
ADVANTAGES Matrix organizations have many advantages, which is why an increasing number of companies are using some variation of them today. One advantage is that
because both project and functional managers are involved, there is good visibility into
who is working where, and resources can be shared between departments and projects.
This reduces possible duplication a major advantage in this age of lean thinking in business. Since both types of managers are involved, cooperation between departments can be
quite good. There is more input, so decisions tend …
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