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Senior managers rarely feel much confidence Chapter 0 There are many reasons for the rapid C] Speed and market responsiveness have become absolute requirements successful competition The development of new products, processes, or services regularly requires input from diverse areas of specialized knowledge Chapter 4-1 C] Four reasons for growth (count. C] Rapid expansion technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations A majority of senior managers rarely feel much confidence in their understanding and control of the activities in their areas Chapter 4-2 Types of Project Organizations C] There are two fundamentally different ways of organizing projects within the parent organization L] The project as part of the Functional Organization C] The project as a free-standing part of the parentC] A third type, called a Matrix Organization is a hybrid of the two main types CLC Each has advantages and disadvantages Chapter 4-3 The project as part Of the Functional Organization The Project as Part of the Functional Organization Advantages Disadvantages Maximum flexibility Client is not the focus Stimulates sharing of knowledge & experience Limited to the functional area Place of Continuity Unclear responsibility Path for career advancement Time Consuming Slow decision making Tendency to sub optimize Chapter 4-4 The Project as part of the 0 Advantages of using the functional elements of the arena organization as the administrative home for a project include: C] Maximum flexibility in the use of staff.Individual experts can be utilized by many different projects C] Specialists in the division can be grouped to share knowledge and experience C] The functional division also serves as a base of technological continuity when individuals choose to leave the project C] The functional division contains the normal path of advancement for individuals whose expertise is in the functional area C] There are also disadvantages to housing the project in a functional area: The client is not the focus of activity and concern The functional division tends to be oriented toward the activities particular to its function 0 Occasionally, no individual is given full responsibility for the project There are often several layers Of management between the project and the client.

That’s why it is time consuming C] There is a tendency to suboptimal the project Chapter 4-5 Pure Project Organization pure Project Organization Full Line Authority Shortened Line of Communication Cadre of experts Higher Commitment Swift Decision Sanity of Command Simple & flexibleStructure Duplication of effort Negative Tendency of PM Lacking of Expertise Knowledge Potential threat uncertainty about future Chapter 4-6 C] Advantages of a pure project organization: L] The project manager has full line authority over the project. All members of the project work force are directly responsible to the project manager When the project is removed from the functional division, the lines of communication are shortened C] When there are several successive projects of a similar kind, the pure project organization can maintain a permanent cadre of experts who evolve skills in specific technologies C] Advantages of a pure project organization (count. C] A project team that has a strong and separate identity and develops a high level of commitment from its members CLC Because the authority is centralized, the ability to make a swift decision is enhanced 0 Unity of command exists Pure project organizations are structurally simple and flexible, which makes them relatively easy to understand and implement Chapter 4-7 C] Disadvantages of a pure project organization: Each project tends to be fully staffed which can lead to a duplication Of fort in every area from clerical staff to technological support C] There is a need to ensure access to technological knowledge and skills that results in an attempt by project managers to stockpile equipment and technical assistance The functional division is a repository of technical lore, but it is not readily accessible to team members of the pure project team Chapter 4-8 organization (count. ) C] Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out.

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In a pure project organization, the project takes on a life of its own and it can heartens the parent organizations culture C] There tends to be concern among team members about “life after the project ends” Chapter 4-9 The Matrix Organization The matrix organization is a combination of functional and pure project C] A matrix organization can take on a wide variety of specific forms C] “Project’ or “strong” matrix organization most resembles the pure project organization C] The “coordination” or “functional” or &jeak” matrix most resembles the functional form CLC The “balanced” matrix lies in between the others Chapter 4-10 C] Rather than being a stand alone organization, like the pure project, the matrix project is not separated from the parent organization: Chapter 4-11 L] As with other organizational forms, the matrix organization has its own unique advance takes: C] The project is the point of emphasis CLC Because the project is overlaid on the functional divisions, the project has reasonable access to the reservoir of technology in all areas CLC There is less anxiety about what happens when the project is completed Chapter 4-12 Diva n takes Rapid as pure project Balance of Power Political Infighting Tough Shutting Down uncomfortable for PM Violates Unity of Command Participation of admit from Parent Balance of resources Advantages of a Matrix (count. C] Response to client’s needs is as rapid as in the pure project organization C] Matrix management gives the project access to representatives from the administrative units of the parent firm C] The matrix organization allows a better company-wide balance of resources to achieve goals C] There are also disadvantages to using the matrix organization; most involve conflict between the functional and project managers: 0 The balance of power between the project and national areas is very delicate C] The movement of resources from project to project may foster political infighting CLC Problems associated with shutting down projects can be as severe as in a pure project organization Chapter 4-14 C] Disadvantages of a Matrix (count. ) C] The division of authority and responsibility in a matrix organization is complex, and uncomfortable for the project manager. C] Matrix management violates the management principle of unity of command. Project workers have at least two bosses, their functional heads and the project manager.

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