CPM Reviewer

Influence of Organizational Structures on Project

ORGANIZATION STRUCTURE
PROJECT CHARACTERISTICS MATRIX
FUNCTIONAL PROJECTIZED
WEAK BALANCED STRONG
Low to Moderate High to almost
Project Manager’s Authority Little/none Low
moderate to high total
Low to Moderate High to almost
Resource Availability Little/none Low
moderate to high total
Functional Functional Project Project
Who manages the project budget Mixed
Manager Manager Manager Manager
Project Manager’s Role Part-time Part-time Full-time Full-time Full-time
Project Management Administrative
Part-time Part-time Full-time Full-time Full-time
Staff

Functional Organization Strong Matrix Organization

-EACH EMPLOYEE has ONE CLEAR SUPERIOR -similar to projectized organization

Weak Matrix Organization -have FULL-TIME PROJECT MANAGERS with

CONSIDERABLE AUTHORITY
-similar to functional organization
-FULL-TIME PROJECT ADMINISTRATIVE
-PROJECT MANAGER functions as
STAFF
EXPEDITOR/COORDINATOR
Projectized Organization
-PROJECT EXPEDITOR works as STAFF
ASSISTANT AND COMMUNICATIONS -TEAM MEMBERS are OFTEN COLOCATED
COORDINATOR but DOES NOT make or
-most of the organization’s resources involved in
enforce decisions
project work
-PROJECT COORDINATOR makes some
-PROJECT MANAGERS have a GREAT DEAL OF
decisions, has some authority, and reports to a
INDEPENDENCE AND AUTHORITY
higher-level manager
-virtual collaboration techniques often used to
Balanced Matrix Organization
accomplish benefits of colocated terms.
-recognizes the need for a PROJECT MANAGER
-ORGANIZATIONAL UNITS = DEPARTMENTS
-neither provides the PROJECT MANAGER with
-TEAM RESOURCES can either REPORT
FULL AUTHORITY over the project nor over
DIRECTLY to the project manager or PROVIDE
project funding
SUPPORT SERVICES to the various projects
Organizational Structures include:  Individual citizens
 Temporary or permanent lobbying
 Strategic
organizations
 Middle management
 Society at large
 Operational levels
PROJECT GOVERNANCE
Project Manager may interact with all 3 levels
depending on factors such as:

 Strategic importance of the project

 Capacity of stakeholders to exert
influence on the project
 Degree of project management maturity
 Project management systems
 Organizational communications

This interaction determines project

characteristics like:

 Project manager’s level of authority

 Resource availability and management
 Entity controlling the project budget
 Project manager’s role
 Project team composition

PROJECT STAKEHOLDERS

- Individuals and organizations that are

ACTIVELY INVOLVED in the project

KEY STAKEHOLDERS

 Project Manager
 Customer
 Performing Organization
 Project Team Members
 Sponsor

Categories of project stakeholder:

 Internal and external

 Owners and funders
 Sellers and contractors
 Team members and their families
 Government agencies and media outlets