project management unit III case study

MBA 6931, Project Management Strategy and Tactics 1

Course Learning Outcomes for Unit III Upon completion of this unit, students should be able to:

3. Characterize important project management issues. 3.1 Describe how a company should be reorganized for greater effectiveness. 3.2 Analyze the challenges associated with a new organizational structure related to its scope. 3.3 Explain how a new organizational structure would impact the Key Manager Incentive Plan

(KMIP) program.

4. Outline project activity and risk taking in the project management process. 4.1 Explain the risks associated with a new organizational structure and scope. 4.2 Describe how structure and scope impact the overall project management process.

Course/Unit Learning Outcomes

Learning Activity

3.1 Unit III Lesson Chapter 5, pp. 145-176 Unit III Case Study

3.2 Unit III Lesson Chapter 5, pp. 145-176 Unit III Case Study

3.3 Chapter 5, pp. 145-176 Unit III Case Study

4.1 Unit III Lesson Chapter 5, pp. 145-176 Unit III Case Study

4.2 Unit III Lesson Chapter 5, pp. 145-176 Unit III Case Study

Reading Assignment Chapter 5: The Project in the Organizational Structure, pp. 145-176

Unit Lesson Organizational structure is how the organization is constructed. This can include management levels as well as everyone who works toward maintaining the strategic mission of the organization with an eye on development toward achieving the strategic vision. Companies can be organized in many different ways, and the creativity in organizational structures continues to evolve. One of the most common methods for organizational project structures is that of functionality, which is based on functions within the organization such as marketing, accounting, finance, operations, human resources, and more. This strategy is advantageous because of its specialization of functions within each operational branch as well as its simplicity and general overall acceptance. This method provides a high level of staff flexibility within each branch and represents a consistent path of advancement for individuals within each function. The largest disadvantage with functional organizational structures is the fact that the client or customer is not the primary focus. Instead, priority is placed on the tasks within each of the functions. Another significant disadvantage of a functional approach within an organization is that the employees within each function tend to have a narrow focus aligning with their particular function versus a more holistic viewpoint

UNIT III STUDY GUIDE

Organizational Structure

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encompassing all areas within the organization. This narrow focus can create conflict within the team instead of a cohesively operating team atmosphere. A project-oriented structure assumes that each of the functions described in the functional structure are aligned to certain projects within the organization. In other words, each project within the organization has its own team of functions focusing on that specific project. In reviewing the advantages of this approach, the most prevalent is that the project manager has complete authority over the entire project and has a team that is completely dedicated to the project and the successful completion of it. Additionally, all of these team members have reporting responsibility to the project manager, enabling the project manager with the ability to hold team members accountable for specific tasks within the project. When the lines of communication are also shortened, there are more direct lines of communication. This shortened communication stream often equates to a clearer picture of responsibilities among team members. As inevitable project changes occur, this shortened line of communication can be extremely beneficial with faster response times on the part of team members. These structures also are relatively simple to understand by all stakeholders and have increased flexibility. The largest disadvantage to this type of organizational structure is the duplication of effort when functional responsibilities are recreated over many different projects. This is extremely prevalent with respect to technological aspects. This can be critical in this time of widespread corporate budget cuts in order to remain competitive within their respective industries. Additionally, inconsistency within an organization can become prevalent as each project team implements their project in different ways. Whichever structure the organization takes, it is important that the management team is capable of securing the resources needed to make the project a success. These resources include not only the financial support but also the internal and external talent necessary to complete the project. Reassuring the necessary combination of education and experience along with a balance of skills and competencies is crucial in achieving the goals. This balance depends entirely on the project, which is one of the complexities of the project management process. At this point, you are probably wondering why a project manager cannot combine some of the advantages of the functional with that of the project-based organizations. This is the exact premise for the matrixed organization. Clearly defined, the matrix organization is a clear hybrid organization taking on a variety of forms depending on the organization’s needs and the project’s needs. One of the largest advantages to this approach is the simplicity of control. There is one project manager who has ultimate responsibility for the project. This attribute minimally decreases the confusion around multiple areas of responsibility and authority within the project scope. The team members maintain their functional responsibilities but tend to develop a strong connection to the project, which ultimately decreases duplication of effort and anxieties on the part of the team members. The holistic approach of the matrix of the project management system creates company- wide consistencies while still being able to maintain the flexibility to respond quickly to customer/client changes and needs. As advances in technology have changed almost every aspect of our lives, it has also changed how project management operates. Within the scope of the organization of the team, the use of virtual teams is growing at a significant rate. What does this mean? Basically, it means that members of the team will be located in different time zones and potentially in different parts of the world potentially. While the obvious result of this is to secure the best talent for each project, it does create some challenges. Think about the scheduling complexities when attempting to set up meetings. Another challenge might be the language or cultural differences that separate the group. Successful use of virtual teams requires a disciplined approach to communication, particularly when completion of the tasks requires the completion of the previous task. Team- building activities are important in order to create a solid team atmosphere where members are willing to contribute to the overall goals of the project, not just their individual goals. Take a look at the example on page 157 of your textbook of how a small software firm, Yunio, utilizes virtual teams to their advantage (Meredith, Mantel, & Shafer, 2018). Think about communication methods that you might use in this scenario. Why would you use these methods? Why is it important to look at your team and consider the communication methods that they are the most comfortable with? These are all questions that need to be contemplated by project managers as they assemble their team. Think about groups that you have managed in the past and how communication and a culture of teamwork improved or could have improved the overall culture. What could you have done differently?

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One last area of importance to be discussed with respect to the compilation of the project team is the human resources or people side of project management. As stated earlier, project managers need to be able to create a culture of collaboration within the team, reducing negative conflict while, at the same time, engaging the positive conflict. Positive conflict brings forward innovative and new contributions to the project as it moves through the various stages of completion. This collaborative culture will result in a project team that realizes a collective goal and ultimately successful project completion. In conjunction with this, the project manager needs to be able to maintain a political stance within the organization. Being able to effectively advocate for the project as changes occur as well as supporting the entire team through the times of adversity are paramount for solid project management. As organizations and the number of projects within the organization grow, there is an increased need to utilize a project management office (PMO) in order to effectively manage these projects. This group organizes and leads the projects within the organization, providing a sense of structure and consistency within the administration of projects. Establishing a PMO within an organization provides for a clear understanding of who is responsible for which projects with respect to overall results, methodology, and the allocation of resources. This involves planning, budgeting, scheduling, performance expectations, prioritizing, risk management, audits, evaluations, and other measurement functions that provide a framework for all projects to follow. One of the key components of an effective PMO is credibility. This group needs to maintain a high level of credibility within the organization in order to be able to manage project managers and, ultimately, projects within the organization.

Reference Meredith, J. R., Mantel, S. J., Jr., & Shafer, S. M. (2018). Project management: A strategic managerial

approach (10th ed.). Hoboken, NJ: Wiley.

Suggested Reading In order to access the following resources, click the links below. This article discusses some factors used regarding terminating a project as well as its organizational implications. Behrens, J., & Patzelt, H. (2016). Corporate entrepreneurship managers' project terminations: Integrating

portfolio-level, individual-level, and firm-level effects. Entrepreneurship: Theory and Practice, 40(4), 815–842. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=116618883&site=ehost-live&scope=site

The articles below address how a lack of top management support can be a primary reason for information technology (IT) project failure and how IT project teams can obtain such support. Liu, G. H. W., Wang, E., & Chua, C. E. H. (2015). Leveraging social capital to obtain top management support

in complex, cross-functional IT projects. Journal of the Association for Information Systems, 16(8), 707–737. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=109182984&site=ehost-live&scope=site

Shepherd, D. A., Patzelt, H., & Wolfe, M. (2011). Moving forward from project failure: Negative emotions,

affective commitment, and learning from the experience. Academy of Management Journal, 54(6). 1229–1259. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=http://search.ebscohost.com/logi n.aspx?direct=true&db=bth&AN=69987815&site=ehost-live&scope=site

The article below investigates the two types of knowledge and at what level knowledge sharing and reuse is more commonly adopted for project management purposes.

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Terzieva, M., & Morabito, V. (2016). Learning from experience: The project team is the key. Business Systems Research, 7(1), 1–15. Retrieved from https://libraryresources.columbiasouthern.edu/login?auth=CAS&url=https://search-proquest- com.libraryresources.columbiasouthern.edu/abicomplete/docview/1819266003/5A482F179D034B55 PQ/1?accountid=33337