Organization Designs. Structure. Organization Structure. Informal Organization. There are a number of options Project Managers need to understand

Transcription

1 Organization Designs Project Organization Structure organization a system to achieve goals formal organization structure informal structure There are a number of options Project Managers need to understand relative advantages and disadvantages of each Organization Structure range of activities organization does management hierarchy major subdivisions responsibilities & type of work for each subdivision official lines of authority & communication doesn t show informal organization structure t tends to develop by fits and starts t in response to historical challenges Informal Organization Informal organization is critical (who knows who; who will work with who) informal communication is: socially motivated communicates quickly is not thorough nor dependable Project Management should use good features, mitigate bad

2 Alternative Structures there are a number of options best depends on goals, type of work, environment DIFFERENTIATION - organizational specialization functional geographic product customer process Functional Organization integration by rules, procedures, coordinated plans, budgets Hieronymus Botch CEO Bean Kounter Accounting Silas Marner Finance Snidely Whiplash Marketing John Doe Production Atlanta Phoenix Butte works well in repetitive, stable environments the most prevalent form Siegfried Hill MIS Geographic Differentiation Standardized accounting and reporting procedures Product Differentiation If produce a variety of products. John McGraw CEO Megaglomerate Octopi Dan McGann St Louis Joe Kelley Baltimore Cy Seymour New York Dr. Sweitzer Tobacco J. Ripper Health Products A. Onassis Tankers J. Helms Environmental TV sales Production Telemarket Production special order Can tailor to unique requirements of locale Often used with functional within regions production marketing marketing legal Integration between subdivisions tends to be low use standardized financial & reporting

3 Customer Differentiation If a particular customer very important George Patton Military Sales Gunn Runner Overnight Delivery Che Guevera covert sales A. Nobel special ops functions geographic explosives peace prizes Integration level depends on interdependence of products (usually low) Process Differentiation some logical process basis for differentiation Little 600 Consulting Phyllis Knight Customer Contactor Systems Analysis Programming Customer Training need more integration, as problem in one area affects others; task forces, teams Project Environments traditional organizational design when change required, add layers of mgmt, rules less flexibility, slow Projects complexity uncertainty change unpredictability Project Organizations need to be highly differentiated to meet variety of problems need to be highly integrated to respond rapidly need to be highly flexible must integrate subunits through horizontal relationships must have structures suited to unique environments

4 Comparison Integrators Traditional little boss big boss another one supreme high ruler rigid, clumsy little boss 2 big boss 2 etc Project staff people project manager designer customer worker folk liaison bees horizonal communication facilitate communication, reduce decisions referred up liaisons - link 2 groups task forces - temporary grouping to solve problem permanent teams - long term task force project expediters or coordinators project managers matrix managers Pure Project Organizations if high complexity, major resource requirements, heavy stake outcome PURE PROJECT organization appropriate separate organization created for this goal TYPES PROJECT CENTER STAND-ALONE PROJECT PARTIAL PROJECT Project Center linked to parent organization draw resources & personnel as needed EXAMPLES: General Motors task force to develop suggestions for downsizing relocation operations

5 Stand-Alone Project newly created organization for this mission draw from several organizations EXAMPLES: large-scale public works NASA space station development construction joint-ventures Partial Project project manager responsible for some activities other activities (support-oriented) remain with functional divisions TYPICAL ARRANGEMENT Pure Project Disadvantages cost in personnel (facility duplication) lose training investment - no place else to use key people Matrix Organization if organization continually operates on a project basis (and many MIS shops do) need to be able to quickly create large project groups Gidlik Grid-like structure t of reporting and authority relationships overlaying traditional functional organization

6 Matrix Capabilities functional part provides repository for technical expertise and physical resources when in functional home, workers keep up professionally (train) functional homes a place to go when project over (no new job search) Hybrid Forms Firms combine matrix, functional, project features, custom design their own organization COST CONTROL: functional worst SCHEDULE: project best, functional worst TECHNICAL: functional worst If high technical risk Project Risks give project manager more authority matrix better (more skills readily available) If high cost risk clear goals paramount give project manager high authority more planning, monitoring, control If high schedule risk more project manager experience, monitoring Matrix Problems must be reinforced by information systems and behavior supporting two-dimensional information flow, dual reporting No Man Can Serve Two Masters! military principle i of UNITY OF COMMAND chaos, confusion more common often project manager tells you what to do, but your raise comes from functional manager

7 Criteria for Selection of Form Other criteria Type Size Duration Complexity task force small to short to low to medium team medium medium project team all all small to medium multiple medium all medium to high project teams to large matrix medium all medium to high to large stake of the project if high, matrix or pure give better control degree of technological uncertainty if high certainty, task forces & teams criticalness of time & cost goals if time & cost not major, task forces & teams project uniqueness if unique, partial or full project Project Office support staff group reporting to project manager to coordinate efforts of information center functional areas subcontractors plans, directs, controls project activities links users, project teams, top management Project Office Functions planning & control systems engineering change management contracting financial control

8 8-29 Summary organization structure is means to achieve goals & respond to problems differentiation project organizations more flexible need to know criteria for appropriate project organization structure