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Organizational Influences

Projects are influenced by the

Organizational Systems

Organizational Cultures

Organizational Structures

Project Management Office (PMO)

of the performing organizations.

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Organizational systems

Project-based

Derive income by performing projects for others

Treat on-going operations as projects (management

by projects)

Non-Project-based

No project-oriented systems in place to supportproject needs efficiently and effectively

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Organizational Cultures

Organizational culture is reflected in Shared values, norms, beliefs and expectations

Policies and procedure

View of authority relationships

Influence on the projects Scope of the projects

Quality of the products

Commitment of the people

Execution of the project

Project management style

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Organizational Structures

Functional A traditional hierarchical organization, sometimes thought

of as resembling a pyramid, with top management at thefulcrum, direct workers at the bottom, and middlemanagers in between

Projectized A type of organization structure where people from

different functional backgrounds work with each otherthroughout the lifetime of the project

Matrix A type of organization structure which typically crosses

functional design (on one axis) with some other designcharacteristic (on the other axis)

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Functional Organization

Staff are grouped by specialty in a strict hierarchyProduction, marketing, accounting,

Scope of the project is limited to the boundaries of the project

Design project, manufacturing project, .

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Functional Organization

Specialists grouped by function

Difficult to cross functional lines

Barriers exist on horizontal information flow

Functional emphasis loyalties may impede

completion

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Functional pluses and minuses

Easier management ofspecialists

TM only have 1 boss

Centralized andrationalized resources

Clear career path

The boss trumps theproject

No career path in PM

PM has no authority Projects suffer in general

No project manager(expediter, coordinator)

No home for team

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Projectized Organization

Project managers have independence and authority

Frequently have departments which provide support

services to multiple projects

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Projectized Organization

Emerges from functional when latter impedes

progress

Line of authority is the PM

Uncertainty where to go on completion of project

Tendency to retain assigned personnel too long

FMs feel threatened as people are removed from their

areas

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Projectized pluses and minuses

Efficient project

organization

Loyalty to project

More effective

communication

Greater job satisfaction

Much more likely tosucceed

No home when project is

done

Less professionalism in

disciplines

Duplication of facilities

and job functions

Less efficient use ofresources

No career path

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Matrix Organizations

Weak Matrix Balanced Matrix

Strong Matrix

Functional

Projectized

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Matrix Organization

Multiple-command system

Individuals from functional areas assigned on

temporary basis to PM

Individuals return to functional organization

Careful plans and procedures needed to minimize

effects of dual reporting

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Matrix pluses and minuses

Highly visible objectives

Improved PM control

More support from

functional orgs Maximum usage of scarce

resources

Better coordination

Team members have ahome

Not cost effective (too many

people)

More than 1 boss for team

More complex to monitor,control

Resource allocation harder

Need extensive P&P

Higher potential for conflict &duplication of effort

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Weak Matrix Organization

Very similar to functional organization

Project coordination is performed by the project

managers

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Balanced Matrix Organization

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Strong Matrix Organization

Very similar to projectized organization

Project management is a full time responsibility

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Project Office

Provides services ranging from support

functions to project managers, such as training,

software, templates, etc. to actually being

responsible for the results of the project

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Project Management Office (PMO)

An organizational unit created to centralize

and coordinate the projects within an

Organization

Function varies among organizations