Project Management
Quản lý Dự án
Dr. TRAN QUYNH LE
Dr. NGUYEN DUC DUY
Industrial Systems Engineering Department
Mechanical Engineering Faculty
Ho Chi Minh City University of Technology (HCMUT)–
VNUHCM
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Chapter 3
Organization Structure and Culture
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LEARNING OUTCOME
• 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
• Interpret the culture of an organization.
• Understand the interaction between project management
structure and the culture of an organization.
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Project Management Structures
▪ Challenges to Organizing Projects
• The uniqueness and short duration of projects relative to ongoing longer-term
organizational activities
• The multidisciplinary and cross-functional nature of projects creates authority and
responsibility dilemmas.
▪ Choosing an Appropriate Project Management Structure
• The best system balances the needs of the project
with the needs of the organization.
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Project Management Structures
▪ Organizing Projects: Functional organization
• Different segments of the project are delegated to respective functional units.
• Coordination is maintained through normal management channels.
• Used when the interest of one functional area dominates the project or one
functional area has a dominant interest in the project’s success.
• Uses existing functional organizational hierarchy
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Functional Organizations
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Functional Organization of Projects
Advantages Disadvantages
▪ No Structural Change ▪ Lack of Focus
▪ Flexibility ▪ Poor Integration
▪ In-Depth Expertise ▪ Slow
▪ Easy Post-Project Transition ▪ Lack of Ownership
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Project Management Structures (cont’d)
▪ Organizing Projects: Dedicated Teams
• Teams operate as separate units under the leadership of a full-time project
manager.
• In a projectized organization where projects are the dominant form of business,
functional departments are responsible for providing support for its teams.
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Dedicated Project Team
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Project Organization: Dedicated Team
Advantages Disadvantages
▪ Simple ▪ Expensive
▪ Fast ▪ Internal Strife (Xung đột nội bộ)
▪ Cohesive (Gắn kết) ▪ Limited Technological Expertise
▪ Cross-Functional Integration ▪ Difficult Post-Project Transition
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Project Organizational Structure
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Project Management Structures (cont’d)
▪ Organizing Projects: Matrix Structure
• Hybrid organizational structure (matrix) is overlaid on the normal functional
structure.
➢ Two chains of command (functional and project)
➢ Project participants report simultaneously to both functional and project managers.
• Matrix structure optimizes the use of resources.
➢ Allows for participation on multiple projects while performing normal functional
duties.
➢ Achieves a greater integration of expertise and project requirements.
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Matrix Organization Structure
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Division of Project Manager and Functional Manager Responsibilities
in a Matrix Structure
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Different Matrix Forms
▪ Functional (also Weak or Lightweight) Form
• Matrices in which the authority of the functional manager predominates and the
project manager has indirect authority. (the FM is the big boss)
▪ Balance (or Middleweight) Form
• The traditional matrix form in which the project manager sets the overall plan and
the functional manager determines how work to be done (assigns personnel).
▪ Strong (Heavyweight) Form
• Resembles a project team in which the project manager has broader control
(decides when and what specialists do, has final say on major decisions) and
functional departments act as subcontractors to the project.
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Different Matrix Forms
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Different Matrix Forms
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Different Matrix Forms
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Project Organization: Matrix Form
Advantages Disadvantages
▪ Efficient ▪ Dysfunctional Conflict
▪ Strong Project Focus ▪ Infighting
▪ Easier Post-Project Transition ▪ Stressful
▪ Flexible ▪ Slow
▪ the disadvantages depend on
the organizations culture
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Project management structure-coordinator
model
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Choosing the Appropriate Project Management
Structure
▪ Organization (Form) Considerations
• How important is the project to the firm’s success?
• What percentage of core work involves projects?
• What level of resources (human and physical) are available?
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Project Management Structures
▪ What is the right structure?
▪ Organizing Considerations
• if 75% or more of the work involves projects, consider fully projectized
organization.
• If org has both standard products and projects, use a matrix approach.
• If very few projects, dedicated teams can be used on an as-need basis.
• For sharing limited resources, use matrix.
• Try weak matrix first, less resistance.
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Project Management Structures
▪ What is the right structure?
▪ Project Considerations – the higher these factors, the more control (autonomy &
authority ) the PM needs.
▪ Use dedicated teams or strong matrix with projects that are large complex, need
input from many depts, frequent assessment from customers, high innovation, and
high strategic value.
• 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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Mixing and matching organizational structure with Categories of
projects
▪ A company may have 50+ projects, and use different structures for different
types of projects
▪ Advanced Development – high risk endeavors, creation of breakthrough
product or process. (Use dedicated team.)
▪ Platform – medium-risk, system upgrades that yield new products and
processes. (Use strong matrix.)
▪ Incremental – low-risk, short-term, htat involve minor adjustments in
existing products and processes. (Use weak matrix.)
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Organizational Culture
▪ Organizational Culture Defined
• A system of shared norms, beliefs, values, and assumptions which bind people
together, thereby creating shared meanings.
• The “personality” of the organization that sets it apart from other organizations.
➢ Provides a sense of identify to its members.
➢ Helps legitimize the management system of the organization.
➢ Clarifies and reinforces standards of behavior.
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Key Dimensions Defining an Organization’s Culture
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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
Power Corp.
▪ I. Physical Characteristics:
• Architecture, office layout, décor, attire
• Corporate HQ is 20 Story modern building—president on top floor. Offices are bigger in the top floors than lower
floors. Formal business attire (white shirts, ties, power suits, . . . ) Power appears to increase the higher up you
are.
▪ II. Public Documents:
• Annual reports, internal newsletters, vision statements
• At the heart of the Power Corp. Way is our vision . . . to be the global energy company most admired for its people,
partnership and performance. Integrity. We are honest with others and ourselves. We meet the highest ethical
standards in all business dealings. We do what we say we will do.
▪ III. Behavior:
• Pace, language, meetings, issues discussed, decision‐making style, communication patterns, rituals
• Hierarchical decision‐making, pace brisk but orderly, meetings start on time and end on time, subordinates choose
their words very carefully when talking to superiors, people rarely work past 6:00 P.M., president takes top
performing unit on a boat cruise each year . . .
▪ IV. Folklore:
• Stories, anecdotes, heroines, heroes, villains
• Young project manager was fired after going over his boss’s head to ask for additional funds. Stephanie C.
considered a hero for taking complete responsibility for a technical error. Jack S. was labeled a traitor for joining
chief competitor after working for Power Corp. for 15 years.
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Implications of Organizational Culture for
Organizing Projects
▪ Challenges for Project Managers in Navigating Organizational Cultures
• Interacting with the culture and subcultures of the parent organization
• Interacting with the project’s clients or customer organizations
• Interacting with other organizations
connected to the project
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Cultural Dimensions of an Organization Supportive of Project Management
FIGURE 3.9
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Powers of leader
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Additional documents
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Additional documents
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Key Terms
▪ Balanced matrix
▪ Dedicated project team
▪ Strong matrix
▪ Matrix
▪ Organizational culture
▪ Weak matrix
▪ Projectitis
▪ Projectized organization
▪ Network organization
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