Distinguish between functional, matrix, and fully projectized organizational structures
1. What does an organizational chart indicate or convey?
Organizational charts convey several characteristics of the organization: (1) the vertical authority relationships and reporting relationships that exist between senior staff and subordinates, (2) the general type of work performed, (3) the different departments that do the work, (4) the formal communication channels, and (5) the various levels of management (pg. 132).
2. What does an organizational chart not indicate or convey?
Organizational charts do not convey: (1) do not show all details of an organization, for example, do not show in specific terms organizational objectives, (2) significant factors in the organization's external environment, (3) technology used, (4) comparative importance of the jobs in various departments, (5) degree of horizontal interaction occurring between departments, or (6) informal relationships that have arisen spontaneously among workers.
3. In this chapter, it is shown how a project managerís performance can be measured by two factors: differentiation and Integration. In what four areas can we measure differentiation? Briefly discuss each of these four areas.
The four areas that differentiation are: (1) structure, (2) time horizon, (3) management style, and (4) task environment. Structure in whether it is flexible to formal, for example, during planning phase, flexible and informal structure encourages more creativity, whereas during the implementation phase formal structure may be more helpful (pg. 136). Time horizon whether short or long, for example, some projects like R&D activities require a longer time horizon. Management style in whether a participative or authoritarian style is used. Task environment whether it is certain or uncertain, for example, marketing tasks are uncertain whereas whereas manufacturing and distribution tasks have more certainty.
4. What are two different integration strategies? Explain them briefly.
The two different integration strategies are vertical coordination and lateral coordination. Vertical coordination strategies rely on traditional management techniques and vertical information systems to coordinate the activities of the various project units or departments (pg. 138). traditional management techniques are such as using chain of command, rules, policies, procedures, objectives, and plans. Vertical information system sends information up and down the project hierarchy so that better quality decisions can be made (pg. 138). Lateral coordination strategies are based on the concept that most project organizations must emphasize both vertical and lateral relationships to successfully manage their projects (pg. 138). Two most commonly used lateral coordination systems are: direct contact and integrators. Direct contact is the simplest way to resolve coordination problems by simply getting together to solve a specific problem (pg. 139). Integrators integrate project activities, which typically run across several functional departments and are done by people with diverse mix of skills and backgrounds (pg. 139).
5. In one paragraph (1/2 page or less) distinguish between functional, matrix, and fully projectized organizational structures.
Functional or hierarchical structure is a top down structure that often resembles a pyramid. Specialists are grouped together and supervised by an individual possessing similar skills and experiences. Matrix structures make use of resources from various functional departments on a full-time or part-time basis to meet project objectives (pg. 152). Matrix structure can create conflict because an employee will have two bosses. There can be weak and strong matrix organizations. Matrix is weak if the project manager has a lower level of authority than the functional manager to direct and control project activities and resources (pg. 153). As the project manager's formal authority increases, the matrix becomes stronger (pg. 153). A projectized organizational structure can be used to avoid drawbacks such as conflicts of the functional and matrix structure. Skills and expertise from various functional departments, allocated on a full-time or part-time basis with teams disbanded once the project is complete or the task force meets its mandate (pg. 157). The project manager in a project organizational structure has total authority over the project and can acquire resources needed to accomplish project objectives from within or outside the parent organization, subject only to the scope, quality, and cost constraints identified as project targets (pg. 157). Project manager is responsible for the performance appraisal and career progression of all project team members while on the project (pg. 158).