SARA3_MGT323

Description

Assignment Workload:

This Assignment comprise of a Case Study.
Assignment is to be submitted by each student individually.

Assignment Purposes/Learning Outcomes:

After completion of Assignment-1 students will able to understand the

Defining the concepts, theories and approaches of project management. (L.O-1.1)
Recognize the steps of planning process in the project management. (L.O-1.2)
Estimate the project budget and cost control. (L.O-2.2)
Analyze to work effectively and efficiently as a team member for project related cases. (L.O-3.1)

Assignment-1-Case Study

Assignment Question:(Marks 10)

Please read the Case-4.2 “The Home Improvement Project.”from Chapter 4 “Defining the Project” given in your textbook – Project Management: The Managerial Process 8th edition by Larson and Gray page no: 132 also refer to specific concepts you have learned from the chapter to support your answers. Answer the following questions with 500 Words limit.

What factors and forces contributed to scope creep in this case? (3 Marks)
Is this an example of good or bad scope creep? Explain. (3 Marks)
How could scope creep have been better managed by the Nelsons? (4 Marks)

Answers:

1.

2.

3.

Note: Each question must be answered in more than 500 words

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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
Project Management (MGT323)
Deadline:09/03/2024 @ 23:59
Course Name: Project Management
Course Code: MGT323
Student’s Name:
Semester: II
CRN:
Student’s ID Number:
Academic Year:2023-24, II Term
For Instructor’s Use only
Instructor’s Name: Njoud AlJohani
Students’ Grade:
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only)
via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks
may be reduced for poor presentation. This includes filling your
information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions. Peer-review Journals should be included in
References.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Workload:
• This Assignment comprise of a Case Study.
• Assignment is to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-1 students will able to understand the
1. Defining the concepts, theories and approaches of project management. (L.O-1.1)
2. Recognize the steps of planning process in the project management. (L.O-1.2)
3. Estimate the project budget and cost control. (L.O-2.2)
4. Analyze to work effectively and efficiently as a team member for project related cases.
(L.O-3.1)
Assignment-1-Case Study
Assignment Question:
(Marks 10)
Please read the Case-4.2 “The Home Improvement Project.” from
Chapter 4 “Defining the Project” given in your textbook – Project
Management: The Managerial Process 8th edition by Larson and Gray page
no: 132 also refer to specific concepts you have learned from the chapter to
support your answers. Answer the following questions with 500 Words
limit.
1. What factors and forces contributed to scope creep in this
case? (3 Marks)
2. Is this an example of good or bad scope creep? Explain. (3
Marks)
3. How could scope creep have been better managed by the
Nelsons? (4 Marks)
Answers:
1.
2.
3.
Because learning changes everything.
Chapter One
Modern Project
Management
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
®
An Overview of Project Management 8th Ed
© McGraw-Hill Education
2
Learning Objectives
1-1
Understand why project management (PM) is crucial in
today’s world
1-2
Distinguish a project from routine operations
1-3
Identify the different stages of a project life cycle
1-4
Describe how Agile PM is different from traditional PM
1-5
Understand that managing projects involves balancing the
technical and sociocultural dimensions of the project
© McGraw-Hill Education
3
Chapter Outline
1.1
What Is a Project?
1.2
Current Drivers of Project Management
1.3
Agile Project Management
1.4
Project Management Today: A Socio-Technical Approach
© McGraw-Hill Education
4
Examples of Projects Given to Recent College Graduates
• Business information: install new data security system
• Physical education: develop a new fitness program for senior citizens
• Marketing: execute a sales program for a new home air purifier
• Industrial engineering: create a value chain report for every aspect of a key product from
design to customer delivery
• Chemistry: develop a quality control program for an organization’s drug production facilities
• Management: implement a new store layout design
• Pre-med neurology student: join a project team linking mind mapping to an imbedded
prosthetic that will allow blind people to function normally
• Sport communication: create a promotion plan for a women’s basketball project
• Systems engineers: develop data mining software of medical papers and studies related to
drug efficacy
• Accounting: work on an audit of a major client
• Public health: design a medical marijuana educational program
• English: create a web-based user manual for a new electronics product
© McGraw-Hill Education
5
1.1 What Is a Project?
Project Defined (according to PMI)
• A temporary endeavor undertaken to create a unique product, service,
or result
Major Characteristics of a Project
• Has an established objective
• Has a defined life span with a beginning and an end
• Involves several departments and professionals
• Involves doing something never been done before
• Has specific time, cost, and performance requirements
© McGraw-Hill Education
6
Program versus Project
Program Defined
• A group of related projects designed to accomplish a common goal
over an extended period of time
Program Management Defined
• A process of managing a group of ongoing, interdependent, related
projects in a coordinated way to achieve strategic objectives
Examples:
• Project: completion of a required course in project management
• Program: completion of all courses required for a business major
© McGraw-Hill Education
7
Comparison of Routine Work with Projects
Routine, Repetitive Work
Projects
Taking class notes
Writing a term paper
Daily entering sales receipts into the
accounting ledger
Setting up a sales kiosk for a
professional accounting meeting
Responding to a supply-chain request
Developing a supply-chain information
system
Practicing scales on the piano
Writing a new piano piece
Routine manufacture of an Apple iPod
Attaching tags on a manufactured
product
© McGraw-Hill Education
Designing an iPod that is approximately
2 X 4 inches, interfaces with PC, and
stores 10,000 songs
Wire-tag projects for GE and
Wal-Mart
TABLE 1.1
8
Project Life Cycle
© McGraw-Hill Education
FIGURE 1.1
9
The Challenge of Project Management
The Project Manager
• Manages temporary, non-repetitive activities and frequently acts
independently of the formal organization.
• Marshals resources for the project.
• Is the direct link to the customer.
• Works with a diverse troupe of characters.
• Provides direction, coordination, and integration to the project team.
• Is responsible for performance and success of the project.
• Must induce the right people at the right time to address the right
issues and make the right decisions.
© McGraw-Hill Education
10
1.2 Current Drivers of Project Management
Factors leading to the increased use of project management:
• Compression of the product life cycle
• Knowledge explosion
• Triple bottom line (planet, people, profit)
• Increased customer focus
• Small projects represent big problems
© McGraw-Hill Education
11
1.3 Agile Project Management
Agile Project Management (Agile PM)
• Is a methodology emerged out of frustration with using traditional
project management processes to develop software.
• Is now being used across industries to manage projects with high
levels of uncertainty.
• Employs an incremental, iterative process sometimes referred to as a
‘rolling wave’ approach to complete projects.
• Focuses on active collaboration between the project and customer
representatives, breaking projects into small functional pieces, and
adapting to changing requirements.
• Is often used up front in the defining phase to establish specifications
and requirements, and then traditional methods are used to plan,
execute, and close the project.
• Works best in small teams of four to eight members.
© McGraw-Hill Education
12
Rolling Wave Development
• Iterations typically last from one to four weeks.
• The goal of each iteration is to make tangible progress such as define
a key requirement, solve a technical problem, or create desired
features to demonstrate to the customer.
• At the end of each iteration, progress is reviewed, adjustments are
made, and a different iterative cycle begins.
• Each new iteration subsumes the work of the previous iterations until
the project is completed and the customer is satisfied.
© McGraw-Hill Education
FIGURE 1.3
13
1.4 Project Management Today: A Socio-Technical Approach
The Technical Dimension (The “Science”)
• Consists of the formal, disciplined, purely logical parts of the process.
• Includes planning, scheduling, and controlling projects.
The Sociocultural Dimension (The “Art”)
• Involves the contradictory and paradoxical world of implementation.
• Centers on creating a temporary social system within a larger
organizational environment that combines the talents of a divergent
set of professionals working to complete the project.
© McGraw-Hill Education
14
A Socio-Technical Approach to Project Management
© McGraw-Hill Education
FIGURE 1.4
15
Text Overview
• Chapter 2 focuses on how organizations go about evaluating and
selecting projects.
• Chapter 3 discusses matrix management and other organization forms
and also discusses the significant role that culture of an organization
plays in the implementation of projects.
• Chapter 4 deals with defining the scope of the project and developing a
work breakdown structure (WBS).
• Chapter 5 explores the challenge of formulating cost and time estimates.
• Chapter 6 focuses on utilizing the information from the WBS to create a
project plan in the form of a timed and sequenced network of activities.
© McGraw-Hill Education
16
Text Overview (Continued)
•
Chapter 7 examines how organizations and managers identify and manage
risks associated with project work.
•
Chapter 8 explores resource allocation and how resource limitations impact the
project schedule.
•
Chapter 9 examines strategies for reducing project time either prior to the
initiation of the project or in response to problems or new demands placed on
the project.
•
Chapter 10 focuses on the role of the project manager as a leader and stresses
the importance of managing project stakeholders within the organization.
•
Chapter 11 focuses on the core project team and combines the latest
information on team dynamics with leadership skills/techniques of developing a
high-performance project team.
© McGraw-Hill Education
17
Text Overview (Continued)
•
Chapter 12 discusses how to outsource project work and negotiates
with contractors, customers, and suppliers.
•
Chapter 13 focuses on the kinds of information managers use to
monitor project progress and discusses the key concept of earned value
•
Chapter 14 covers closing out a project and the important assessment
of performance and lessons learned.
•
Chapter 15 discusses agile project management, a much more flexible
approach to managing projects with high degree of uncertainty.
•
Chapter 16 focuses on working on projects across cultures.
© McGraw-Hill Education
18
Key Terms
Agile project management (Agile PM)
Program
Project
Project life cycle
Project Management Professional (PMP)
© McGraw-Hill Education
19
Because learning changes everything.
www.mheducation.com
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
®
Because learning changes everything.
Chapter Two
Organization Strategy
and Project Selection
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
®
Where We Are Now
© McGraw-Hill Education
2
Learning Objectives
02-01
02-02
02-03
02-04
02-05
02-06
02-07
02-08
02-09
Explain why it is important for project managers to understand
their organization’s strategy
Identify the significant role projects contribute to the strategic
direction of the organization
Understand the need for a project priority system
Distinguish among three kinds of projects
Describe how the phase gate model applies to project
management
Apply financial and nonfinancial criteria to assess the value of
projects
Understand how multi-criteria models can be used to select
projects
Apply an objective priority system to project selection
Understand the need to manage the project portfolio
© McGraw-Hill Education
3
Chapter Outline
2.1
Why Project Managers Need to Understand Strategy
2.2
The Strategic Management Process: An Overview
2.3
The Need for a Project Priority System
2.4
Project Classification
2.5
Phase Gate Model
2.6
Selection Criteria
2.7
Applying a Selection Model
2.8
Managing the Portfolio System
© McGraw-Hill Education
4
2.1 Why Project Managers Need to Understand Strategy
Two main reasons project managers need to understand their
organization’s mission and strategy:
1. So they can make appropriate decisions and adjustments.
• How a project manager would respond to a suggestion to modify the
design of a product or to delays may vary depending upon strategic
concerns.
2. So they can be effective project advocates. They have to be able to:
• demonstrate to senior management how their project contributes to
the firm’s mission in order to garner their continued support.
• explain to stakeholders why certain project objectives and priorities
are critical in order to secure buy-in on contentious trade-off
decisions.
• explain why the project is important to motivate and empower the
project team (Brown, Hyer and Ettenson, 2013).
© McGraw-Hill Education
5
2.2 The Strategic Management Process: An Overview
Strategic Management Defined
• Is the process of assessing “what we are” and deciding and
implementing “what we intend to be and how we are going to get
there.”
• Is a continuous, iterative process aimed at developing an integrated
and coordinated long-term plan of action.
• Requires strong links among mission, goals, objectives, strategy, and
implementation.
Two Major Dimensions of Strategic Management:
1. Responds to changes in the external environment and allocates the
firm’s scare resources to improve its competitive position.
2. Internal responses to new action programs aimed at enhancing the
competitive position of the firm.
© McGraw-Hill Education
6
Four Activities of the Strategic Management Process
The sequence of activities of the strategic management process is:
1. Review and define the organizational mission
•
The mission identifies “what we want to become.” Mission statements identify the scope
of the organization in terms of its product and service.
2. Analyze and formulate strategies
•
Formulating strategy answers the question of what needs to be done to reach
objectives. Strategy formulation includes determining and evaluating alternatives that
support the organization’s objectives and selecting the best alternative.
3. Set objectives to achieve strategies
•
Objectives translate the organization strategy into specific, concrete, measureable
terms. Objectives answer in detain where a firm is headed and when it is going to get
there.
4. Implement strategies through projects
•
Implementation answers the question of how strategies will be realized, given available
resources.
© McGraw-Hill Education
7
Strategic Management Process
© McGraw-Hill Education
FIGURE 2.1
8
Characteristics of Objectives
© McGraw-Hill Education
EXHIBIT 2.1
9
2.3 The Need for a Project Priority System
Implementation of projects without a strong priority system linked to strategy
create problems.
Problem 1: The Implementation Gap
•
The implementation gap is the lack of understanding and consensus of
organization strategy among top and middle-level managers.
Problem 2: Organization Politics
•
Project selection may be based not so much on facts and sound reasoning as on
the persuasiveness and power of people advocating projects.
•
The term sacred cow is often used to denote a project that a powerful, highranking official is advocating.
Problem 3: Resource Conflicts and Multitasking
•
A multi-project environment creates the problems of project interdependency and
the need to share resources. Resource sharing leads to multitasking—involves
starting and stopping work on one task to go and work on another project, then
returning to the work on the original task.
© McGraw-Hill Education
10
Benefits of Project Portfolio Management
© McGraw-Hill Education
EXHIBIT 2.2
11
2.4 Project Classification
© McGraw-Hill Education
FIGURE 2.2
12
2.5 Phase Gate Model
Phase Gate Model
• Is a series of gates that a project must pass through in order to be
completed.
• Its purpose is to ensure that the organization is investing time and
resources on worthwhile projects that contribute to its mission and
strategy.
• Each gate is associated with a project phase and represents a
decision point.
• A gate can lead to three possible outcomes: go (proceed), kill
(cancel), or recycle (revise and resubmit).
© McGraw-Hill Education
13
Phase Gate Process Diagram
© McGraw-Hill Education
FIGURE 2.3
14
2.6 Selection Criteria
• Financial Criteria
• Payback
• Net present value (NPV)
• Nonfinancial Criteria
• Projects of strategic importance to the firm
• Two Multi-Criteria Selection Models
• Checklist Models
• Multi-Weighted Scoring Models
© McGraw-Hill Education
15
Financial Criteria: The Payback Model
The Payback Model
• Measures the time the project will take to recover the project investment.
• Desires shorter paybacks.
• Is the simplest and most widely used model.
• Emphasizes cash flows, a key factor in business.
Limitations of the Payback Method
• Ignores the time value of money.
• Assumes cash inflows for the investment period (and not beyond).
• Does not consider profitability.
The Payback formula is
© McGraw-Hill Education
16
Example Comparing Two Projects Using Payback Method
© McGraw-Hill Education
EXHIBIT 2.3A
17
Financial Criteria: Net Present Value (NPV)
Net Present Value (NPV)
• Uses management’s minimum desired rate of return (discount rate) to compute
the present value of all net cash inflows.
• Prefers positive NPV to negative NPV.
• Desires higher positive NPVs.
• Is more realistic because it considers the time value of money, cash flows, and
profitability.
The NPV formula using Microsoft Excel is
where
I0 = Initial investment (since it is an outflow, the number will be negative)
Ft = Net cash inflow for period t
k = Required rate of return
n = Number of years
© McGraw-Hill Education
18
Example Comparing Two Projects Using Net Present Value Method
© McGraw-Hill Education
EXHIBIT 2.3B
19
Nonfinancial Criteria
Examples of strategic objectives are:
• To capture larger market share.
• To make it difficult for competitors to enter the market.
• To develop an enabler product, which by its introduction will increase
sales in more profitable products.
• To develop core technology that will be used in next-generation
products.
• To reduce dependency on unreliable suppliers.
• To prevent government intervention and regulation.
© McGraw-Hill Education
20
Two Multi-Criteria Selection Models
Checklist Models
• Use a list of questions to review potential projects and to determine their
acceptance or rejection.
• Allow greater flexibility in selecting among many different types of projects
and are easily used across different divisions and locations.
• Fail to answer the relative importance or value of a potential project to the
organization and does not allow for comparison with other potential projects.
Multi-Weighted Scoring Models
• Use several weighted selection criteria to evaluate project proposals.
• Include qualitative and/or quantitative criteria.
• Allow for comparison with other potential projects.
© McGraw-Hill Education
21
Checklist Models: Sample Selection Questions Used in Practice
© McGraw-Hill Education
EXHIBIT 2.4
22
Multi-Weighted Scoring Models: Project Screening Matrix
© McGraw-Hill Education
FIGURE 2.4
23
2.7 Applying a Selection Model
Project Classification
• Deciding whether the project fits with the organization strategy.
• Selecting a Model
• Weighted scoring criteria seem the best alternative because:
• They reduce the number of wasteful projects using resources.
• They help to identify project goals that can be communicated using the
selection criteria as corroboration.
• They help project managers understand how their project was selected,
how their project contributes to organization goals, and how it compares
with other projects.
© McGraw-Hill Education
24
Applying a Selection Model (Continued)
Sources and Solicitation of Project Proposals
• Within the organization
• Request for Proposal (RFP) from external sources
(contractors/vendors)
Ranking Proposal and Selection of Projects
• Evaluating each proposal in terms of feasibility, potential contribution
to strategic objectives, and fit within a portfolio of current projects.
• Rejecting or accepting the projects based on given selection criteria
and current portfolio.
• Prioritizing projects by senior management.
© McGraw-Hill Education
25
A Proposal Form for an Automatic Vehicular Tracking (AVL)
Public Transportation Project
© McGraw-Hill Education
FIGURE 2.5A
26
Risk Analysis for a 500-Acre Wind Farm
© McGraw-Hill Education
FIGURE 2.5B
27
Project Screening Process
© McGraw-Hill Education
FIGURE 2.6
28
Priority Screening Analysis
© McGraw-Hill Education
FIGURE 2.7
29
2.8 Managing the Portfolio System
Senior Management Input
• Provides guidance in establishing selection criteria that strongly align with
the current organization strategies.
• Annually decides how to balance the available organizational resources
(people and capital) among the different types of projects.
Governance Team Responsibilities
• Publish the priority of every project.
• Ensure the selection process is open and free of power politics.
• Evaluate the progress of current projects.
• Constantly scan the external environment to determine if organization
focus and/or selection criteria need to be changed.
© McGraw-Hill Education
30
Balancing the Portfolio for Risks and Types of Projects
David and Jim Matheson studied R&D organizations and developed a
classification scheme that could be used for assessing a project portfolio. They
separated projects in terms of degrees of difficulty and commercial value. The
four basic types of projects are:
• Bread-and-butter projects involve evolutionary improvements to current
products and services.
• Pearls represent revolutionary commercial advances using proven technology.
• Oysters involve technological breakthroughs with tremendous commercial
potential.
• White elephants showed promise at one time but are no longer viable.
© McGraw-Hill Education
31
Key Terms
Implementation gap
Net present value (NPV)
Organization politics
Payback
Phase gate model
Priority system
Priority team
Project portfolio
Project sponsor
Sacred cow
Strategic management
© McGraw-Hill Education
32
Because learning changes everything.
www.mheducation.com
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
®
Because learning changes everything.
Chapter Three
Organization: Structure
and Culture
© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
®
Where We Are Now
© McGraw-Hill Education
2
Learning Objectives
03-01
03-02
03-03
03-04
03-05
03-06
03-07
Identify different project management structures and understand
their strengths and weaknesses.
Distinguish three different types of matrix structures and
understand their strengths and weaknesses.
Describe how project management offices (PMOs) can support
and improve project execution.
Understand organizational and project considerations that should
be considered in choosing an appropriate project management
structure.
Appreciate the significant role that organizational culture plays in
managing projects.
Interpret the culture of an organization.
Understand the interaction between project management
structure and the culture of an organization.
© McGraw-Hill Education
3
Chapter Outline
3.1
Project Management Structures
3.2
Project Management Office (PMO)
3.3
What Is the Right Project Management Structure?
3.4
Organizational Culture
3.5
Implications of Organizational Culture for Organizing Projects
© McGraw-Hill Education
4
3.1 Project Management Structures
Three different project management structures are:
1. Functional organization
2. Dedicated project teams
3. Matrix structure
• Weak matrix
• Balanced matrix
• Strong matrix
© McGraw-Hill Education
5
Organizing Projects within the Functional Organization
• Top management decides to implement the project, and different
segments of the project are distributed to appropriate areas.
• Coordination is maintained through normal management channels.
• It is commonly used when one functional area plays a dominant role in
completing the project or has a dominant interest in the success of the
project.
© McGraw-Hill Education
6
Functional Organizations
© McGraw-Hill Education
FIGURE 3.1
7
Advantages and Disadvantages of using Functional
Organization to Administer and Complete projects
Advantages
Disadvantages
1. No change
1. Lack of focus
2. Flexibility
2. Poor integration
3. In-depth expertise
3. Slow
4. Easy post-project transition
4. Lack of ownership
© McGraw-Hill Education
8
Organizing Projects as Dedicated Teams
• Dedicated project teams operate as units separate from the rest of the
parent organization.
• A full-time project manager is designated to pull together a core group of
specialists who work full time on the project.
• The project manager recruits necessary personnel from both within and
outside the parent company.
• In a projectized organization where projects are the dominant form of
business, the entire organization is designed to support project teams.
• “Projectitis” is referred to as a negative dimension to dedicated project
teams. A we-they attitude can emerge between project team members
and the rest of the organization.
© McGraw-Hill Education
9
Dedicated Project Team
© McGraw-Hill Education
FIGURE 3.2
10
Projectized Organization Structure
© McGraw-Hill Education
FIGURE 3.3
11
Strengths and Weaknesses of the Dedicated Project Team Approach
Strengths
Weaknesses
1. Simple
1. Expensive
2. Fast
2. Internal strife
3. Cohesive
3. Limited technological expertise
4. Cross-functional integration
4. Difficult post-project transition
© McGraw-Hill Education
12
Organizing Projects within a Matrix Arrangement
•
Matrix management is a hybrid organizational form in which horizontal project
management structure is overlaid on the normal functional hierarchy.
•
There are usually two chains of command, one along functional lines and the other
along project lines.
•
•
Project participants report simultaneously to both functional and project managers.
The matrix structure is designed to utilize resources optimally.
•
Individuals work on multiple projects as well as being capable of performing normal
functional duties.
•
It attempts to achieve greater integration by creating and legitimizing the authority
of a project manager.
•
It provides dual focus between functional/technical expertise and project
requirements.
© McGraw-Hill Education
13
Matrix Organization Structure
© McGraw-Hill Education
FIGURE 3.4
14
Division of Project Manager and Functional Manager
Responsibilities in a Matrix Structure
© McGraw-Hill Education
TABLE 3.1
15
Different Matrix Forms
Weak matrix
• This form is very similar to a functional approach with the exception
that there is a formally designed project manager responsible for
coordinating project activities.
• Functional managers are responsible for managing their segment of
the project.
• The project manager acts as a staff assistant who draws the
schedules and checklists, collects information on the status of the
work, and facilitates project completion.
© McGraw-Hill Education
16
Different Matrix Forms (Continued)
Balanced matrix
• The project manager is responsible for defining what needs to be
accomplished. The project manager establishes the overall plan for
completing the project, integrates the contribution of the different
disciplines, set schedules, and monitors progress.
• The functional managers are concerned with how it will be
accomplished. The functional managers are responsible for assigning
personnel and executing their segment of the project according to the
standards and schedules set by the project manager.
© McGraw-Hill Education
17
Different Matrix Forms (Continued)
Strong matrix
• The project manager controls most aspects of the project, including
scope trade-offs and assignment of functional personnel. The project
manager controls when and what specialists do and has final say on
major project decisions.
• The functional managers have title over their people and are
consulted on a need basis. The functional managers serve as
subcontractors for the project.
© McGraw-Hill Education
18
Advantages and Disadvantages of Matrix Management
Advantages
Disadvantages
1. Efficient
1. Dysfunctional conflict
2. Strong project focus
2. Infighting
3. Easier post-project transition
3. Stressful
4. Flexible
4. Slow
© McGraw-Hill Education
19
3.2 Project Management Office (PMO)
• Is a centralized unit within an organization or a department that
oversees and supports the execution of projects.
• Plays a critical role in helping matrix systems mature into more
effective project delivery platforms.
• Can be characterized in different kinds:
• Weather station—tracks and monitors project performance.
• Control tower—improves project execution.
• Resource pool—provides the organization with a cadre of trained
project managers and professionals.
• Command and control center—has direct authority over the project.
© McGraw-Hill Education
20
3.3 What Is the Right Project Management Structure?
Organization Considerations
• How important is the project management to the success of the firm?
• What percentage of core work involves projects?
• What level of resources are available?
Project Considerations
• Size of project
• Strategic importance
• Novelty and need for innovation
• Need for integration (number of departments involved)
• Environmental complexity (number of external interfaces)
• Budget and time constraints
• Stability of resource requirements
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3.4 Organizational Culture
Organizational Culture Defined
• Is a system of shared norms, beliefs, values, and assumptions that
blinds people together, thereby creating shared meanings.
• Reflects the “personality” of the organization.
• Performs several important functions in organizations.
• Provides a sense of identity for its members
• Helps legitimize the management system
• Clarifies and reinforces standards of behavior
• Helps create social order
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Key Dimensions Defining an Organization’s Culture
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FIGURE 3.5
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Identifying Cultural Characteristics
• Study the physical characteristics of an organization.
• Read about the organization.
• Observe how people interact within the organization.
• Interpret stories and folklore surrounding the organization.
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Organizational Culture Diagnosis Worksheet
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FIGURE 3.6
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3.5 Implications of Organizational Culture for Organizing Projects
• Project managers interact with:
• The culture of their parent organizations as well as the subcultures
of various departments.
• The project’s clients or customer organizations.
• Other organizations connected to the project such as suppliers and
vendors, subcontractors, consulting firms, government and
regulatory agencies, and community groups.
• “A riverboat trip” is a metaphor describing the relationship between
organizational culture and project management. Culture is the river
and the project is the boat.
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Cultural Dimensions of an Organization Supportive of Project Management
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FIGURE 3.7
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Key Terms
Balanced matrix
Dedicated project team
Matrix
Organizational culture
Projectitis
Projectized organization
Project management office (PMO)
Strong matrix
Weak matrix
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