Organizational and Legal Structures

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Questions and Answers

Which of the following is NOT a component typically analyzed within the formal organization frames of companies?

  • Human Resources
  • Technological (correct)
  • Structural
  • Political

A 'Joint Venture' is considered a type of legal structure for companies.

True (A)

When beginning a company, what are the two primary concerns confronting the person?

  • Technological infrastructure and human resources
  • Financial and structural organization
  • Marketing and sales strategy
  • Management (Admin.) and legal organization (correct)

In the context of management (admin.) structure concerns, what is one key aspect related to the areas and levels of organizations?

<p>hierarchy</p> Signup and view all the answers

Match the organizational frame with its primary focus:

<p>Structural frame = Roles, responsibilities, coordination, and control Human resources frame = Harmony between the organization's needs and the needs of people Political frame = Conflict and power dynamics among individuals and groups Symbolic frame = Symbols, meanings, and cultural aspects related to events</p> Signup and view all the answers

Which organizational structure is characterized by grouping staff based on their specific skills and knowledge?

<p>Functional (D)</p> Signup and view all the answers

In a functional organization, team members typically report directly to the project manager, not to their respective department heads.

<p>False (B)</p> Signup and view all the answers

What is a primary disadvantage of a functional organization?

<p>&quot;Silos&quot; that create longer decision cycles (C)</p> Signup and view all the answers

In a functional organization, conflicts may arise across which specific areas?

<p>functional</p> Signup and view all the answers

One of the pros to using a functional organization is that it encourages ______________.

<p>specialization</p> Signup and view all the answers

Which organizational type is described as the 'opposite' of a functional organization?

<p>Projectized organization (B)</p> Signup and view all the answers

In projectized organizations, the project manager typically has less authority compared to functional organizations.

<p>False (B)</p> Signup and view all the answers

Which of the following is an advantage of project organizations?

<p>Unity of command (D)</p> Signup and view all the answers

A disadvantage of using project organizations is that there is a lack of good ____________ information among project.

<p>crossfeed</p> Signup and view all the answers

What is a typical example of an organization that might use a project-based structure?

<p>Construction company (D)</p> Signup and view all the answers

Match the organizational structure with its description:

<p>Functional = Staff grouped by specialty Projectized = Staff grouped according to project Matrix = Combination of functional and projectized elements</p> Signup and view all the answers

Matrix organizations combine elements of both functional and projectized structures.

<p>True (A)</p> Signup and view all the answers

Who typically has more authority to acquire and manage resources within each department in a matrix organization?

<p>Project manager (A)</p> Signup and view all the answers

What is an advantage from using matrix organizations?

<p>Project Integration across functional lines (C)</p> Signup and view all the answers

In matrix development, what type of channels must exist for making commitments?

<p>horizontal and vertical</p> Signup and view all the answers

In a strong matrix organization, how are individuals from functional departments assigned to projects?

<p>Full-time (A)</p> Signup and view all the answers

In a _______________ matrix organization, functional departments assign resource capacity rather than people to the project.

<p>weak</p> Signup and view all the answers

In a balanced matrix organization, functional departments assign both people and resource capacity to the project.

<p>True (A)</p> Signup and view all the answers

In which type of matrix organization are functional departments assigned full time to the project?

<p>Strong (A)</p> Signup and view all the answers

In which matrix type is the project manager's authority the lowest?

<p>Functional (A)</p> Signup and view all the answers

Fill in the blank: In order, what are common titles for Project Manager's Role in Functional organization, Weak Matrix, Balanced Matrix, and Strong Matrix?

<p>Project Coordinator/Project Leader, Project Coordinator/Project Leader, Project Manager/Project Officer, Project Manager/Program Manager (C)</p> Signup and view all the answers

Project Managers never have administrative staff on projects.

<p>False (B)</p> Signup and view all the answers

What are common elements of project management jobs?

<p>All of the above (D)</p> Signup and view all the answers

Match the 'Effective Project Manager' characteristic with the 'not effective project manager' counterpart.

<p>Lead by example = Set bad examples Are visionaries = Are not self assured Are technically competant = Lack technical expertise Are good communicators = Are poor communicators</p> Signup and view all the answers

Effective project managers are known to:

<p>All of the above (D)</p> Signup and view all the answers

What is a common trait among ineffective project managers?

<p>poor communication</p> Signup and view all the answers

Effective project managers are poor motivators.

<p>False (B)</p> Signup and view all the answers

A sign of an ineffective project managers is if they ______ ________ ________.

<p>set bad examples</p> Signup and view all the answers

What is one of the common duties of a project manager?

<p>All of the above (D)</p> Signup and view all the answers

Project managers will ____ initial PM processes.

<p>Often Develop (C)</p> Signup and view all the answers

Flashcards

Structural Frame

Focuses on roles, responsibilities, coordination, and control within an organization.

Human Resources Frame

Focuses on providing harmony between the organization's needs and the needs of its people.

Political Frame

Assumes organizations are composed of diverse individuals and interest groups, with conflict and power as key issues.

Symbolic Frame

Focuses on symbols and meanings related to events within the organization, emphasizing culture.

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Functional Organization

An organizational structure where staff are grouped by specialty.

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Pros of Functional Organization

Authority is clearly defined, eliminates duplication, encourages specialization, and provides clear career paths.

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Cons of Functional Organization

Can lack customer orientation, create longer decision cycles, and lead to conflicts across functional areas.

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Projectized Organization

An organizational structure where staff are grouped according to project.

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Pros of Project Organization

Involves unity of command, effective inter-project communication, and clear responsibility.

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Cons of Project Organization

Involves career path limitations, duplication of facilities, and inefficient use of specialists.

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Matrix Organization

Combines elements of both functional and projectized organizations.

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Pros of Matrix Organization

Project integration across functional lines and efficient use of resources.

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Cons of Matrix Organization

Personnel may report to two bosses, and can lead to complexity.

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Strong Matrix

When individuals from functional departments are assigned full time to the project.

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Weak Matrix

When departments assign resource capacity, rather than people, to the project.

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Balanced Matrix

When departments assign both people and resource capacity to the project.

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Project

A temporary endeavor to create a unique product, service, or result.

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Project Integration

Ensuring all project elements fit together.

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Loyalty Improvement in matrix development

Loyalty increases as participants focus entirely on project work.

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Strong Matrix

Full-time involvement on a project.

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Horizontal/Vertical Channels

Channels for commitments should exist horizontally AND vertically.

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Project Management Basics

Planning, Stakeholder Identification, Risk Management.

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Project Job Functions

Defining scope, evaluating risks, managing change.

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Ineffective PM traits

Examples: Setting a bad precedent and lacking expertise.

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Effective PM traits

Technical Skill, Communication, Vision.

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Study Notes

Lecture 3: Organizational Structures

  • Lecture focuses on analyzing companies' organization frames and various types of legal structures.
  • The administrative organization and the legal organization are concerns when starting a company.

Types of Organizations

  • Several concerns confront the person who would like to constitute a company.
  • Management and legal organizations are two concerns.

Analyzing Company Structures

  • Companies formal organization frames comprise structural, human resources, political, and symbolic elements.
  • Companies various types of legal structures include Proprietorship, Partnership, Corporation, and Joint Venture.

Management Organization

  • Management structure concerns the areas and levels of organization's responsibilities (Hierarchy).
  • It also concerns how members of the organization communicate to each other.

Organizations - Frames

  • The Structural frame focuses on roles and responsibilities, coordination and control and is defined by organization charts.
  • The Human Resources frame focuses on providing harmony between needs of the organization and needs of people.
  • The Political frame assumes organizations are composed of varied individuals and interest groups, where conflict and power are key issues.
  • The Symbolic frame focuses on symbols and meanings related to events, indicating that culture is important.

Organizational Structures

  • Includes Functional, Project, and Matrix Structures.
  • Functional organizations focus on engineering, marketing, design, etc.
  • Project based organizations focus on Project A, Project B, and income from projects.
  • Matrix combines functional and project based approaches.
  • Program Management Models, feature shorter cycles, need for rapid development process, used in matrix organizations.

Functional Organization

  • Groups staff by specialty.
  • Each department has representatives on the project team and work together towards the project's goals.
  • Team members report to their respective department heads.
  • The project manager works across boundaries in gaining authority and resources during the project.

Functional Organization - Pros

  • Has a clear definition of authority, eliminates duplication, encourages specialization, and provides clear career paths.
  • Each member of staff has one boss and allows for good technology transfer in projects, plus stability, security, and morale.

Functional Organization - Cons

  • Can lack customer orientation because of "Walls."
  • "Silos" create longer decision cycles and conflicts may arise across functional areas.
  • Project leaders have little power, and there is poor horizontal communication.
  • Discipline is not program-oriented, resulting in a slower workforce.

Functional Manager Scene

  • FM vs Training Representative.
  • FM vs Roles.
  • FM vs Job Limits.

Project Manager Scene

  • PM vs. hiring an extra engineer.
  • PM vs. changes in project plans.
  • PM vs. request outside personnel job.
  • PM vs. erasers (more than $5).

Projectized Organization

  • The opposite of the functional organization structure.
  • Staff is grouped according to the project, with each team containing specialists necessary to complete the project scope.
  • The project manager has more authority and can direct resources for the project.

Project Organization - Pros

  • Unity of command and effective inter-project communication.
  • Each member of staff has one clear boss, offering good project schedule and cost control.
  • Single point of customer contact and a training ground for general management.
  • Construction and university research centers are examples.

Project Organization - Cons

  • Duplication of facilities and career path issues.
  • The organization structure has Inefficient use of specialists and Uncertain technical direction.
  • Insecurity regarding future job assignments and poor crossfeed info among projects can occur.

Matrix Organization

  • Combines elements of both functional and projectized organizations.
  • Staff is arranged by functional departments.
  • The project manager usually has his/her own supporting resources and more authority to acquire and manage resources from within each department.
  • This type of organization provides the most support for projects.

Matrix Organization - Pros

  • Project integration across functional lines, more efficient use of resources.
  • Functional teams are retained.

Matrix Organization - Cons

  • Two bosses for personnel and complexity issues.
  • Each member of staff may have TWO or more Bosses.
  • Resource & priority conflicts.

Matrix Development

  • This develops loyalty increase, where participants spend full time on the project.
  • Horizontal and vertical channels must exist for making commitments.
  • Need Quick and effective conflict resolution and Good communication channels and free access between managers.
  • All managers have planning process inputs and negotiate resources (horizontally and vertically).

Matrix Structure Types

  • Strong Matrix: individuals from functional departments are assigned full time to the project.
  • Weak Matrix: functional departments assign resource capacity rather than people to the project.
  • Balanced Matrix: functional departments assign both people and resource capacity to the project.

Organizational Structure Influences on Projects

  • Functional: Project Manager's Authority is little to none.
  • Weak Matrix: Project Manager's Authority is limited.
  • Balanced Matrix: Project Manager's Authority is low to moderate.
  • Strong Matrix: Project Manager's Authority is moderate to high.
  • Projectized: Project Manager's Authority is high to almost total.
  • Functional: Organization's Personnel Assigned Full-time to Project Work virtually none.
  • Weak Matrix: Organization's Personnel Assigned Full-time to Project Work is 0-25%.
  • Balanced Matrix: Organization's Personnel Assigned Full-time to Project Work is 15-60%.
  • Strong Matrix: Organization's Personnel Assigned Full-time to Project Work is 50-95%.
  • Projectized: Organization's Personnel Assigned Full-time to Project Work is 85-100%.
  • Functional Manager's Role: Project Coordinator/ Project Leader part-time.
  • Weak Matrix: Project Coordinator/ Project Leader is part-time.
  • Balanced Matrix: Project Manager/ Project Officer is full-time.
  • Strong Matrix: Project Manager/ Program Manager role is full time.
  • Projectized: Project Manager/ Program Manager role is full-time.
  • Project Management Administrative Staff can be Part-time or Full-time in each type of structure.

Project Management Job Functions

  • Define scope of a project.
  • Identify stakeholders, decision-makers, and escalation procedures.
  • Develop detailed task list (WBS) and estimate time needs.
  • Develop initial PM process.
  • Identify required resources and budget.
  • Evaluate project needs.
  • Identify and evaluate risks and prepare a contingency plan.
  • Identify interdependencies.
  • Identify and track critical milestones and participate in project phase reviews.
  • Secure needed resources.
  • Manage the change control process and report project status.

Project Manager Characteristics

  • Effective Project Managers lead by example, are visionaries, technically competent, and decisive.
  • Effective Project Managers are good communicators and motivators, stand up to management when necessary, support team members, and encourage new ideas.
  • Ineffective Project Managers set bad examples, are not self-assured, and lack technical expertise.
  • Ineffective Project Managers have poor communication and motivation skills.

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