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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