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Questions and Answers
What is the primary benefit of a well-established unity of command in a project?
What is the primary benefit of a well-established unity of command in a project?
Which factor contributes significantly to the effectiveness of information flow among project participants?
Which factor contributes significantly to the effectiveness of information flow among project participants?
In project management, what does flexibility in organizational structures primarily refer to?
In project management, what does flexibility in organizational structures primarily refer to?
What is a common characteristic of an organic or simple project organizational structure?
What is a common characteristic of an organic or simple project organizational structure?
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How does personnel selection impact project success?
How does personnel selection impact project success?
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What is the primary factor influencing how resources are allocated within a project portfolio?
What is the primary factor influencing how resources are allocated within a project portfolio?
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Which of the following organizational structures allows for a project manager to have the most authority over resources?
Which of the following organizational structures allows for a project manager to have the most authority over resources?
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What is a significant disadvantage of a functional organization?
What is a significant disadvantage of a functional organization?
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What role does 'division of labor' play in organizational structure?
What role does 'division of labor' play in organizational structure?
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Why is understanding the organizational culture important for project managers?
Why is understanding the organizational culture important for project managers?
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What does the term 'interdependence' refer to in project management?
What does the term 'interdependence' refer to in project management?
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Which of the following best describes the need for a clear organizational type?
Which of the following best describes the need for a clear organizational type?
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What is crucial for balancing the needs of a parent organization with a project?
What is crucial for balancing the needs of a parent organization with a project?
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In a weak matrix organization, who generally manages the project budget?
In a weak matrix organization, who generally manages the project budget?
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What is the project manager's role in a strong matrix organization?
What is the project manager's role in a strong matrix organization?
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What type of organization has work groups arranged by job function, with the project manager as a function?
What type of organization has work groups arranged by job function, with the project manager as a function?
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Which organization type has the project manager working part-time and sharing duties with functional responsibilities?
Which organization type has the project manager working part-time and sharing duties with functional responsibilities?
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In a balanced matrix organization, who is responsible for managing the project budget?
In a balanced matrix organization, who is responsible for managing the project budget?
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What distinguishes a project-oriented organization from other types of organizations?
What distinguishes a project-oriented organization from other types of organizations?
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Which factor is likely to increase the project manager's authority in a matrix organization?
Which factor is likely to increase the project manager's authority in a matrix organization?
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How does the role of administrative staff differ across various matrix organization types?
How does the role of administrative staff differ across various matrix organization types?
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What is the primary responsibility of a project manager within a strong matrix organization?
What is the primary responsibility of a project manager within a strong matrix organization?
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Which of the following best describes the authority of functional managers in a weak matrix organization?
Which of the following best describes the authority of functional managers in a weak matrix organization?
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What is an essential task of a project manager acting as a staff assistant in a weak matrix organization?
What is an essential task of a project manager acting as a staff assistant in a weak matrix organization?
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In a balanced matrix organization, which statement correctly reflects the relationship between project managers and functional managers?
In a balanced matrix organization, which statement correctly reflects the relationship between project managers and functional managers?
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Which capability is least associated with project managers in a functional organization?
Which capability is least associated with project managers in a functional organization?
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What is a disadvantage of the functional organizational structure in project management?
What is a disadvantage of the functional organizational structure in project management?
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What is an advantage of a matrix organizational structure?
What is an advantage of a matrix organizational structure?
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Which statement best describes a disadvantage of the project-oriented structure?
Which statement best describes a disadvantage of the project-oriented structure?
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What is a potential consequence of having a complex reporting system in a matrix organizational structure?
What is a potential consequence of having a complex reporting system in a matrix organizational structure?
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How does the functional organizational structure affect team dynamics?
How does the functional organizational structure affect team dynamics?
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Study Notes
Professional Practice & Standards - Week 1
- This week's topic is about organizational structures in a professional practice setting.
Organizational Structure
- Organizational structure refers to how a corporation or organization is set up.
- Key implementation approaches include functional, project-based, and matrix structures.
- Each approach has its advantages and disadvantages.
- Organizational structure impacts project management processes, resource allocation, and manager authority within a company's portfolio.
- Organizational culture influences project management even with similar structures leading to distinct approaches to project execution.
- Project managers need to understand the particular organizational layout, especially the pathways, obstacles and company culture to effectively manage projects.
- A well-structured organization allows for better stakeholder identification and team support.
- Effective project management systems balance the needs of both the project and the parent organization, enabling smooth resource allocation and integration of project outcomes into standard company operations.
Factors Affecting Organizational Structure
- Division of labor: clear task allocation among departments for specialization.
- Background and experience: previous experience with organizational structures is relevant.
- Interdependence and interactive management: the number of systems, the schedule and cross-organizational interdependency.
- Authority, responsibility, and leadership: vision, strategy and cohesiveness of the team.
- Unity of command: clear lines of command for the project members.
- Personnel: the appropriate skills and talents of personnel on the project.
- Stakeholders: project participants and stakeholders.
- Span of control: the number of project participants.
- Flexibility: the ability to adjust to changing circumstances and conditions in the external environment.
- Culture values: project worker's loyalty and dedication.
- Other factors: size of the project/duration, environmental factors, and technology.
Organic/Simple Structure
- Work groups are assembled based on interactions.
- Project manager role can be part-time and/or an assigned position (coordinator).
- The owner or operator manages the project budget.
Functional Structure
- Work groups are organized by the types of jobs being done (e.g. manufacturing, engineering).
- Project manager may or may not have a designated role (coordinator role); part-time.
- The functional manager is responsible for the budget.
Matrix Structure (Weak)
- Work groups are organized by job function.
- Project manager is part-time and has overlapping responsibilities.
- Functional manager controls the budget.
Matrix Structure (Balanced)
- Work groups are organized by job function.
- Project managers are part-time and have overlapping responsibilities.
- A mix of roles manage the budget.
Matrix Structure (Strong)
- Work groups are organized by job function.
- Project manager is full-time, has a designated role.
- Project manager controls the budget.
Project-Oriented (Composite/Hybrid)
- Work groups are formed around the project itself.
- Project manager is full-time, and has a designated role.
- Project manager controls the budget.
Different Organizational Structures - Examples
- Functional Organization: A hierarchical structure with specialized departments (e.g., production, marketing) reporting to top-level management.
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Example of Functional Organization
- Chief Executive overseeing roles like Production, Marketing, Engineering, and Accounting. These divisions then comprise various staff members.
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Project-oriented Organization: A structure where teams are formed around specific projects, with a project manager responsible for the project's execution.
- Project Management roles are centralized under the Chief Executive for coordination purposes, followed by staff.
Project Management
- Negotiated issues between project managers and functional managers must be addressed in terms of tasks, resources and overall project execution.
- Project manager issues are focused on execution and completion.
- Functional manager issues are focused on execution and alignment with other processes within the organization.
- A manager’s role in the matrix can include a part-time or full-time commitment.
Project Manager (Staff Assistant) - Strengths & Responsibilities
- Schedules and check-lists
- Information gathering
- Project completion facilitation
- Monitoring the project
Functional Manager Responsibilities
- Determining who does what, when, and how the work is completed.
- Making decisions
Weak, Balanced and Strong Matrix Organization
- Different types of Matrix Organization arrangements are based on the structure, responsibility and authority of the project manager.
Advantages and Disadvantages of Organizational Structures
- Functional: Fewer negotiations, no change, less competition, familiar team members, slower approach.
- Matrix: Efficient specialist allocation, flexible roles, good flow, easier transitions, higher admin costs, shared authority.
- Project-oriented: Strong control, fast, central communication, well-defined scope, costly resources, internal strife, limited knowledge sharing.
References
- Larson & Gray (2020). Project Management: The Managerial Process
- San Cristóbal et al. (2018). Analysis of Project Organizational Structures
- PMBOK Guide 6th Edition (PMI)
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Description
Explore the fundamentals of organizational structures in professional practice. This quiz covers key implementation approaches such as functional, project-based, and matrix structures, along with their impacts on project management and resource allocation. Understanding these concepts is crucial for effective project management and stakeholder engagement.
