Unit II Proposal

MGT 6302, Project Management Strategy and Tactics 1

Course Learning Outcomes for Unit II

Upon completion of this unit, students should be able to:

2. Discuss how organizational factors can impact project management efforts. 2.1 Assess how a project and its personnel and resources are affected by organizational structure.

8. Analyze communication, ethics, and leadership in effective project management. 8.1 Explore project communication within a specific organizational structure. 8.2 Examine the project manager’s role within a specific organizational structure.

Course/Unit Learning Outcomes

Learning Activity

2.1

Unit Lesson Part 1: Chapter 2 Part 2: Chapter 1 Article: “Considerations for the Occasional Project Manager” Unit II Proposal

8.1

Unit Lesson Part 1: Chapter 2 Part 2: Chapter 1 Article: “Considerations for the Occasional Project Manager” Unit II Proposal

8.2

Unit Lesson Part 1: Chapter 2 Part 2: Chapter 1 Article: “Considerations for the Occasional Project Manager” Unit II Proposal

Required Unit Resources

Part 1: Chapter 2: The Environment in Which Projects Operate

Part 2: Chapter 1: Introduction

In order to access the following resource, click the link below.

Hubble, A., & Spitulnik, J. (2016). Considerations for the occasional project manager. Performance Improvement, 55(7), 15–20. https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN=117572833&site=ehost-live&scope=site

UNIT II STUDY GUIDE Project Management and Organizational Structure

MGT 6302, Project Management Strategy and Tactics 2

UNIT x STUDY GUIDE Title

Unit Lesson

Introduction

Welcome to Unit II. In this unit, we focus on project management and organizational structures. The organizational structure plays a significant role in determining how projects are managed and operated. Today's organizations are comprised of individuals who work together to meet the organization's strategic goals and objectives. These individuals complete their own set of coordinated tasks, which helps the next individual to complete their tasks. Every organization has a certain structure or makeup regarding how they are organized. The choice of organizational structure is often influenced by the industry in which it is operated, the environment, and the internal culture. In addition, organizational culture also plays a role in the project and how the project manager leads the team. Communication, ethics, and leadership styles are all attributed to the organization’s culture

The three common types of organizational structures are functional, project, and matrix. You will see in your textbook that additional, less common structures are also identified, such as organic, virtual, and hybrid. Let’s focus on exploring each of the three major organizational structures.

Functional Structure

Within the functional structure, the project teams are grouped according to the skills, knowledge, and work tasks that they provide for the organization. For example, an organization may have an accounting department to handle its finance and budgeting operations. It may have a human resources department to handle activities related to personnel, including hiring and firing of employees. The functional structure has many components of the hierarchy system and focuses on a top-down approach. In this type of structure, the functional managers have the authority, and project managers have limited authority in the budget, resources, and schedule. The functional manager is given more authority since the organization believes that they are the experts in the area. For most project teams operating in the functional structure, there is not a great deal of difference from their day-to-day jobs and tasks. Since the work is very similar, the project teams can lose interest in the projects and become unmotivated to deliver a strong project deliverable (Hubble & Spitulnik, 2016).

Project Structure

For the project structure, the team members as well as the resources are grouped according to the goods and/or services produced or according to the territories, clients, or legal entities served. If given the option, most project managers would choose to manage a project using the project or projectized structure. This structure is the exact opposite of the functional structure even though the group members will still become a part of the group based on the department that they work in and the skills that they possess. In the project structure, the project manager has complete authority over the project and is seen as the expert in the field. The project team will also be devoted solely to the project, so they do not have to worry about their normal daily tasks. This provides them with more time to focus on the project and their assigned activities. Since the project manager has full authority, the communication is usually clearer and more direct. In addition, decisions are made quickly with only the project manager to make the final call. The biggest disadvantage would be the pressure on the project team. Usually, these members are working on multiple projects simultaneously and feel the need to deliver (Hubble & Spitulnik, 2016).

Matrix Structure

Finally, with the matrix departmentalization, they combine functional and project structures. The functional departments, such as marketing, are on one side of the organization while the project structure, which handles specific projects, are on the other. Employees typically are assigned to report to both a functional manager and a project manager, depending on their job duties (Hubble & Spitulnik, 2016).

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The following table can help you compare the three organizational structures by exploring the advantages and disadvantages of each.

Functional Advantages

 Functionality and responsibility are well defined.  The process of communication is well-defined and channeled to go throughout the organization. This

results in the sharing of information, which enables those in the organization to learn more from each other.

 Each employee reports to only one supervisor, and this makes control easier.  Budgeting is centralized, so cost control is easier.  Technological control is centralized, and it is easier to stay updated with technology.

Disadvantages

 The functions required for a project are spread across the organization, so it may be difficult to pull together and coordinate the resources needed to complete the project.

 The project will need to pull resources from the organization’s various functional departments, so it may be difficult to establish responsibility for the project. Functional organizations tend to be focused on the organization’s daily, ongoing activities, making it less likely that projects will be a priority. This also makes it more difficult for projects to be managed.

 The organization’s focus is on its daily, ongoing activities, and those involved in projects may be less motivated to complete the project.

Project Advantages

 The project is structured according to goods and/or services produced or the stakeholders who are served, so it is easier to accommodate projects and make them a priority.

 Each project has all of the resources needed to complete a project, making it easier to compile and coordinate the resources. Responsibility for the project is well-defined.

 Response times are quicker since the project and all resources to complete it are in the same division.

 Projects are an important part of the team’s work and they receive priority, so those involved in the projects are more likely to be motivated to complete them.

Disadvantages  The project structure can result in a duplication of efforts since the same functions, such as financial

management, are performed in each project. This can be more costly as well as less efficient.  Projects are an important part of the work in organizations, so some personnel may be devoted to

projects and may experience downtime between projects. The project teams may communicate little, if at all, among each other, limiting their ability to share information and learn from each other.

 Each project team is responsible for its own technology, which makes technology more expensive. This may result in the organization not having the latest technology available to complete projects.

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Matrix Advantages

 This enables an organization to benefit from the advantages of both the functional and project structures.

Disadvantages

 The organization may experience the disadvantages of both the functional and project structures.

The Significance of Organizational Culture in Managing Projects

Organizational culture can impact the completion of projects. The organization’s culture often sets the tone for how the employees work together and how the operations are managed; the role that the employees have in feedback all play a major role in how the projects will be managed. Let’s explore a few of the common types of organizational cultures (Leith, 2016).

Aggressive Organizational Culture

This culture values competitiveness. When organizations promote competitiveness among their employees, their employees may perform at a higher level, helping the organization to be more competitive in the marketplace. In this type of culture, ethical behaviors could be questioned. The project manager needs to ensure that the team remains focused on the project’s tasks and performs the project in accordance with ethical guidelines.

Detail Oriented Organizational Culture

This culture focuses on precision. Such organizations want their employees to complete their work in specific ways, and they value the details regarding each employee’s activities. Organizations that are detail oriented tend to be more capable of producing goods and services that are standardized and consistent. In this type of culture, open communication is valued since the team will be detail oriented and focused on delivering a top- notch project.

Innovative Organizational Culture

This culture tends to be flexible and adaptable, with leaders, managers, and employees who are willing to experiment with new ideas. With organizations that practice an innovative culture, creativity is encouraged, and creative ideas become an important way to continuously change and improve the organization’s operations. Communication is especially important in this culture since innovative projects often change quickly, and the project team will need to stay informed.

Outcome Oriented Organizational Culture

This culture focuses on achievement. Instead of focusing on the policies and procedures used to accomplish an organization’s goals and objectives, outcome-oriented organizations focus on the outcome. The organization’s success or failure is measured by whether the outcome is achieved—not by how it is achieved. Like the aggressive organizational cultures, the project manager needs to ensure that the team completes the project in an ethical manner. The team should not let the pressures of the sponsors or organization cloud their judgments.

Service Oriented Organizational Culture

This culture emphasizes high-quality service, striving to structure and coordinate the entire organization’s activities in such a way that the organization can deliver top quality goods and services to customers, fully meeting their needs and expectations. Project teams focus on ethics and ensure that the project sponsors are satisfied with the end results. The team will have a focus on quality and meeting the schedule and budget.

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Team Oriented Organizational Culture

This culture promotes teamwork, emphasizing the need for employees to work together to find ways to improve the organization’s work processes and the quality of its goods and services. Within the team setting, communication is essential. The team will build a relationship based on its communication.

Conclusion

Projects are a necessary venture for most organizations to achieve continued growth and success. Projects can be complicated, and they are affected by an organization’s structure. To increase their chances of successfully completing a project, project managers must understand the structure of their organization and how their projects fit into the organization’s structure and culture.

References

Hubble, A., & Spitulnik, J. (2016). Considerations for the occasional project manager. Performance Improvement, 55(7), 15–20. https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN=117572833&site=ehost-live&scope=site

Leith, M. (2016, November 21). Organizational culture. ProjectManagement.com. https://www.projectmanagement.com/wikis/351444/Organizational-culture

Learning Activities (Nongraded)

Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information.

Visit the website YouTube, and perform a search for each of the following keyword search terms to view a wide variety of resources that offer additional insight into this unit’s topics. Note the channels or authors whose videos you find most helpful, and consider bookmarking or subscribing to them for continued professional development. It is suggested when looking for online resources, you choose those that are most recent, as they will offer the most up-to-date information.

Keyword search terms for this unit are listed below.

• Project organizational structure • Project organizational culture • Project manager role