Question B1
Compare and contrast the benefits and drawbacks of functional organisations, project organisations and matrix organisations in the context of project creation.
Total 30 marks
Functional
Advantages
No Change: The existing routine operations and design of the participating organisation is maintained as projects are developed within the existing structure of the organisation.
Flexibility: The functional organisational structure enables maximum flexibility for staff as appropriate specialists can be temporarily assigned to work on the project, whilst remaining connected with their functional group.
In-Depth Expertise: The nature of functional organisational structures allows for development of in-depth knowledge and expertise.
Easy Post-Project Transition: Standard career paths within the functional organisational structure are maintained.
Functional Disadvantages
Disadvantages
Lack of Focus: Each functional unit tends to focus on its core routine operations. Project objectives become secondary.
Poor Integration: Functional specialists tend be concerned only with their own particular segment of the project, rather than the project as a whole. Lack of integration across functions and between project personnel.
Slow: Functional organisations tend to be highly bureaucratic.
Lack of ownership: The motivation of people assigned to projects could be weak. The project seen as burden to normal duties
Project
Advantages
Control:The project manager can maintain strong control over the project and bypass the traditional bureaucracy inherent in functional organisations.
Fast: Within project organisational structures most decisions are made within the project team. Project team dedication
Cohesive: Personnel within the project team are often loyal to the project. High level of motivation and cohesiveness across the project as team members share the common project goal and responsibility for project success.
Cross-functional integration: Brings together specialists from different disciplines.
Disadvantages
Duplication of resources: Insufficient use of resources due to the duplication of personnel and equipment across projects.
Projectitis: The nature of projects can result in project teams taking on an entity of their own and becoming so consumed within the project they begin to distance themselves from the parent organisation and other organisational projects.
Limited Technical Expertise: The expertise of the project is limited to the experience and knowledge of the project team members.
Difficult Post-project transition: What to do with team members once the project is complete.
Matrix Advantages
Efficient: Maximisation of resource utilization. Resource sharing
Strong Project Focus: By having a formal project management unit with project managers responsible for the coordinating and integrating functional contributions provides a stronger focus on projects within the organisation.
Easy Post-Project Transition: As the project structure is overlaid over the functional structure, specialists who contribute to the project are able to return to their normal functional unit once the project is complete.
Resource utilisation: Flexibility of resource utilisation and expertise within the firm,
Disadvantages
Dysfunctional conflict: Functional manager needs to ensure the functional unit maintains performance and may be reluctant to release valuable resources to the project. Whereas the project manager requires specialist resources from the functional unit.
Conflict: Infighting: The matrix structure often requires a sharing of resources and equipment across projects and functions.
Stressful: Project participants exposed to stressful situations. Two bosses from opposing directions.
Slow: Extensive negotiations, agreements and decision making required between the project and functional manger
Question B2
Critically evaluate the typical stages of project team development
Answers may illustrate Tuckamans model of forming, norming, storming, performing and adjouning.At the forming stage the members get to know each other and lay the basis for project and team ground rules. The role of the PM is to create a structure and set the tone for future cooperation and positive attitude within the team. At the Storming stage conflict begins as team members begin to resist authority and demonstrate hidden agendas and prejudices. The role of the PM is to be aware of personal agendas and adopt conflict resolution plans accordingly. At the Norming stage members agree on operating procedures and seek to work together, develop close relationships and commit to project development. At this stage the PM needs to encourage and motivate the team to continue in this attitude. At the Performing stage team member’s work together to accomplish their tasks. At this stage the PM needs to ensure morale is maintained, whilst conducting his own activities. At the Adjourning stage the team disbands. The role of the PM needs to be sensitive to concerns of the team members and contribute to a smooth transition process.
Better answers will discuss the cyclic behaviour of the model when new members join the team.
Question B3
Identify and explain the typical types costs incurred on a project
Within any project cost drivers fall into two categories: Direct Costs: These are costs that are clearly specific to a project or individual work package and include Labour; Materials; Subcontractors; Equipment and facilities & travel. Indirect Costs: These are costs that cannot be clearly specified to a particular project and are incurred by multiple projects within the organisation. Indirect costs include:
· Overheads: Many projects are performed within the participating organisations facilities. Overhead costs include rent, rates, utilities and other consumables.
· Salaries: Project draw on the support of administrative staff, senior management and even janitorial personal.
· Equipment and machinery: Essential equipment such as photocopiers, computers, telephones and facsimiles all have associated costs that can not be directly apportioned to a project. This also includes software and licenses required by the organisation to perform the project.
Better answers will include other types of costs such as
· Re-occurring versus non-recurring costs: non-recurring costs are those associated with charges applied once at the beginning or end of the project (one off costs), whereas recurring cost of those that typically continue to operate over the project’s life cycle.
· Fixed versus variable costs: fixed costs do not vary with their respected usage. Variable cost of those that accelerate or increase through usage.
· Normal versus expediency costs: normal costs of those incurred through routine processes of work on the project, whereas Expedia to costs are on plan costs incurred when steps are taken to speed up the project. This is called “ crashing costs”
Total 30 marks
Question B4
Discuss the stages of the closeout process under conditions of natural termination
Stages in the project closeout process are: finishing the work; handing over the project; gaining acceptance for the project; harvesting the benefits; and reviewing how it all went. During this process, project managers need to ‘put it all to bed’ in terms of project documentation. Whilst disbanding the team. Better answers will focus on disbanding the team and discuss the intellectual and emotional aspects of disbanding the team.
Total 30 marks
22
002
0
A
27
729
5
C
35
205
2
B
49
509
5
E
214
12014
12
H
27
729
5
D
310
9012
7
2
312
9012
9
G
Task Name
Early Start
Duration
Early Finish
Late Start
Slack
Late Finish
A
2
2
0
0
2
0
C
2
7
7
2
9
5
B
3
5
2
0
5
2
E
4
9
5
0
9
5
H
2
14
12
0
14
12
D
2
7
7
2
9
5
2
3
10
9
0
12
7
G
3
12
9
0
12
9
C
o
s
t
(
£
K
)
Time (weeks)
9
11
1314
300
325
365
Normal point
Crash 1
Crash 2
Crash 3
305
8
Crash 4
395
Y-Axis
X-Axis
SJ/-
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