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Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 1
Chapter# Project Manager, Team and Organization
5.1 What does Project Manager (PM) mean?
A project manager is the person responsible for leading a project from its inception to execution.
This includes planning, execution and managing the people, resources and scope of the project.
Project managers must have the discipline to create clear and attainable objectives and and to see
them through to successful completion. The project manager has full responsibility and authority
to complete the assigned project.
A project manager's position may end with the completion of the assigned project, or it may be a
semi permanent position for a limited time or until a predetermined point in the project’s
schedule or stage of completion.
A project manager's responsibilities include overall management, but he or she is seldom directly
involved with the activities that actually produce the end result. The position also oversees any
associated products and services, project tools and techniques to help ensure good practices. In
addition, project managers are responsible for recruiting and building project teams, and making
projections about the project's risks and uncertainties.
Managing relationships and personalities is a huge part of being a project manager. Teams must
work, plan and communicate well together. The ability to collaborate and maintain successful
team member relationships is crucial. Friction, conflict and honest disagreements are part of the
creative process, but the project manager must be sure these do not destroy the project. Making
sure team members feel valued, recognizing and praising superior work, and maintaining a
quality working environment for all team members will aid in this human management effort.
A project manager is the person responsible for accomplishing the stated project objectives. Key
project management responsibilities include creating clear and attainable project objectives,
building the project requirements, and managing the constraints of the project management
triangle, which are cost, time, scope, and quality.
A project manager is often a client representative and has to determine and implement the exact
needs of the client, based on knowledge of the firm they are representing. A project manager is
the bridging gap between the production team and client. So he/she must have a fair knowledge
of the industry they are in so that they are capable of understanding and discussing the problems
with either party. The ability to adapt to the various internal procedures of the contracting party,
and to form close links with the nominated representatives, is essential in ensuring that the key
issues of cost, time, quality and above all, client satisfaction, can be realized.
The term and title 'project manager' has come to be used generically to describe anyone given
responsibility to complete a project. However, it is more properly used to describe a person with
full responsibility and the same level of authority required to complete a project. If a person does
not have high levels of both responsibility and authority then they are better described as a
project administrator, coordinator, facilitator or expeditor.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 2
5.2 Project Roles and Responsibilities of a Project Manager
Role
The person responsible for developing, in conjunction with the Project Sponsor, a definition of
the project. The Project Manager then ensures that the project is delivered on time, to budget and
to the required quality standard (within agreed specifications). He/she ensures the project is
effectively resourced and manages relationships with a wide range of groups (including all
project contributors). The Project Manager is also responsible for managing the work of
consultants, allocating and utilizing resources in an efficient manner and maintaining a co-
operative, motivated and successful team.
Responsibilities
I. Managing and leading the project team.
II. Recruiting project staff and consultants.
III. Managing co-ordination of the partners and working groups engaged in project work.
IV. Developing and maintaining a detailed project plan.
V. Managing project deliverables in line with the project plan.
VI. Recording and managing project issues and escalating where necessary.
VII. Resolving cross-functional issues at project level.
VIII. Managing project scope and change control and escalating issues where necessary.
IX. Monitoring project progress and performance.
X. Providing status reports to the project sponsor.
XI. Managing project training within the defined budget.
XII. Liaises with, and updates progress to, project board/senior management.
XIII. Managing project evaluation and dissemination activities.
XIV. Managing consultancy input within the defined budget.
XV. Final approval of the design specification.
XVI. Working closely with users to ensure the project meets business needs.
XVII. Definition and management of the User Acceptance Testing programme.
XVIII. Identifying user training needs and devising and managing user training programmes.
5.3 The Difference between Project Managers Vs. Functional Managers
Project managers and functional managers have different roles and responsibilities in an
organization. Project managers take responsibility for completing a specific project or program
within a specific time and budget framework. Functional managers have ongoing responsibility
for managing the people and resources within a department to meet corporate business and
financial objectives. To complete certain tasks, both types of manager may work together,
sharing resources or people.
Teams
o Both project managers and functional managers are responsible for managing
teams of people. Functional managers recruit people with specific skills, such as
accountancy, engineering, marketing or administration, to meet their departmental
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 3
objectives. Project managers bring together people from different functional
departments with the skills needed to complete a project. A new product
development project, for example, would require a team with skills in design,
engineering, research, marketing and finance.
Cooperation
o Cooperation between functional managers and project managers is essential to
ensure that project managers can build the right team. According to the University
of Sao Paolo, functional managers have a responsibility for ensuring that their
staff have the right level of skills for ongoing business and specific projects.
However, functional managers may be reluctant to lose key staff for the duration
of a project, as that could impact the performance of their department.
Timescales
o Functional managers have ongoing responsibilities for business results, with
quarterly or annual targets as a measurement. The key difference for project
managers is that their responsibilities have a specific start and end point,
according to the Association for Project Management. A project is a single event
with a goal, scope, deadline, budget and other constraints, rather than business as
usual.
Resources
o Project managers work with finite resources to meet their objectives. Their role is
to identify essential resources, manage issues and risks, and coordinate the
resources and budgets necessary to complete the project. Functional managers
also work with fixed resources, but they are able to reallocate resources over a
budget period to meet changing business conditions.
Programs
o Project managers may assume wider responsibilities, similar to those of a
functional manager. According to Project Management Knowledge, project
managers who take on multiple projects take on a more strategic role and become
program managers. A program manager will take responsibility for the ongoing
success of multiple projects in related areas. Product management is an example,
where a program manager may have responsibilities for projects to develop
different products, as well as overall responsibility for the products' ongoing
success.
Authority
o The functional manager, sometimes known as a line manager, is traditionally the
person who the project manager and other members of the team report to. The
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 4
functional manager has authority over which projects the team pursues and is
higher in the chain of command than the project manager. Functional managers
have the responsibility of reporting to executives in charge of the team that they
manage. When it comes to hiring (or firing), the project manager will consult with
the functional manager as to what is the best decision based on the project's needs,
but the ultimate decision lies with the functional manager.
Project Success
o While the effectiveness of the entire team falls under the responsibility of the
functional manager, the success of the project lies on the shoulders of the project
manager. The project manager is the team expert for delivering successful
projects. This involves knowing all of the project inputs necessary to achieve a
goal such as staff time, costs and equipment as well as having a keen focus on
how and when the project will meet its objectives. This involves managing the
project schedule, milestones and reporting.
Staff Management
o Ideally, the functional manager and project manager collaborate in staff
management, each person taking on a supportive role as the other leads her
segment of work. The functional manager is responsible for measuring the overall
effectiveness of the staff, performing evaluations, professional development and
resolving conflicts. Alternatively, the project manager is responsible for ensuring
that each staff member understands her role in the project and is adequately
meeting outlined goals. Project managers must view the staff as the resources
necessary to accomplish project tasks and lead the efforts in outlining, scheduling
and monitoring the work to be done.
Technology Management
o The functional manager manages people, while the project manager manages
resources and assets necessary for a successful project. To be effective in this
role, project managers ideally have skill and experience with the processes and
technology involved in producing their project's focus. For example, a project
manager at an air conditioning company would understand assembly line
production, all the facets involved with making air conditioners and be closer to
emerging techniques that improve on standard processes.
Functional Manager
1. He is in-charge of a firm’s functional depts. Such as marketing, engg., or finance.
2. They are more skilled at analysis. Such heads are specialists in certain areas only.
3. They are analytical in approach (breaking the system into smaller and smaller
elements) and they know something abt. the operation for which they are responsible.
4. In case of any difficulty, they know how to analyze and attack it.
5. They are administratively responsible for deciding how something will be done, who
is going to do it, and what resources will be devoted to accomplish a task.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 5
6. He is a direct, technical supervisor.
7. He should have knowledge in the technology of the process being managed.
8. The FM cannot allow the PM in taking control of the technical decisions in the
functional areas or to control the assignment of the functional area personnel.
Project Manager
1. A PM starts his career as a specialist in some field, later on being promoted to some
higher post.
2. He is required to be more skilled at synthesis.
3. The PM uses a system approach i.e. understanding the organizational problem, for which
the project is a part, the organization for which the program exists, as well as the
environment of the organization.
4. The PM is a facilitator and generalist.
5. He should be competent in the science of project along with having the technical
competence in some aspects.
6. He is responsible for organizing, planning, budgeting, directing, planning, and controlling
the project.
5.4 Qualities of a Project Manager
A project is generally defined as a “temporary endeavour with a defined beginning and end”. A
project manager has the responsibility of delivery projects. A successful project generally
involves completing the project to scope, time and budget. An effective project manager should
have:
1. Organisational Ability – for those that are described as “not being able to organise their
way out of a paper bag” project management may not be the right calling. Crisis
managers may be able to have good short term success on some projects. Discipline of
good documentation and records will support the consistent delivery of on-time and
successful projects.
2. Strong communication skills – are critical to liaise with stakeholders, clients and your
project team. Clear communication to project leadership teams, steering committees or
your own boss on the outcomes and progress of the project and in particular on
anticipated changes ensures that they are well aware of the success of your project, and
informed on any required changes.
3. Ability to facilitate discussions – A project manager should be able to organise
collaboration between the project team and clients, and other technical resources to
improve the project outputs. There is a key difference between a “chat fest” and a well
directed discussion.
4. Financial understanding – you don’t have to be an accountant to be a project manager.
However it is critical to have an understanding of the budget build up and financial status
of the project.
5. Contractual skills – if your project is big enough you may have your own contractual
manager with specific skills in contracts. However even in this case understanding the
contracts with your client and external organisations is important. Your project may, for
example, need contractual arrangements for intellectual property (IP) created during the
project.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 6
6. Multi tasking – typically you will need to be able to manage multiple project tasks or
even multiple projects. A good system will be the best support tool to do this. This
system may be a simple excel table or more sophisticated specialised software tool
depending on the size of your project.
7. Good timing – Being timely as a project manager not only sets an example for your
team, but will also assist in making your project come in on time.
8. Thinking on your feet – Sometimes despite all your preparation a good project manager
will have to come up with solutions with a project on the spot. This can be minimised by
well thought out discussions on risks and potential challenges held at the start of the
project at key milestones.
9. Strong focus on safety – Keeping people safe is the number one priority for any project.
For some project managers this will be relatively easy as your project may be largely
office based, focused on IT development or report creation. Conducting a basic risk
assessment at the start of a project will help to substantially reduce the risks for your
project team.
10. Inspiration – Building on strong communication and effective facilitation of meetings is
the requirement for a project manager to inspire teams to complete tasks. Sometimes you
just need some self inspiration to get the job done.
5.5 Project Team
A Project Team is an organized group of people who are involved in performing
shared/individual tasks of the project as well as achieving shared/individual goals and
objectives for the purpose of accomplishing the project and producing its results. The
team consists of the full-time and part-time human resources supposed to collaboratively
work on producing the deliverables and moving the project towards successful
completion.
5.6 Three Conventional Roles
Every team, regardless of the project type, size and nature, has three roles (defined as
“conventional”). These roles are:
Leader. A project team leader is a person who provides leadership and guidance to the team and
takes responsibility for the results of teamwork. The team leader role involves the development
and encouragement of the team through training, leading, motivation, recognition, rewarding and
other activities that stimulate or force team members to do the required tasks.
Member. A project team member is a person who is actually involved in doing assigned tasks.
Team members directly access the project and actively evolve its processes. They’re
subordinated to the team leader.
Contributor. A project team contributor is a person or an organization that participates in
teamwork but is not actually involved in performing tasks and carrying out project team
responsibilities. Contributors help improve the project through giving valued suggestions, expert
judgment and consultation. They aren’t responsible for the project results. Often project team
contributors have an interest or concern in the project, so they facilitate successful completion.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 7
When organization of the project team is appropriate, all the roles are allocated adequately.
Successful teams often work under the direction and supervision of project managers who
oversee the work of the team leader and provide expert advice to team members. In this situation,
contributors work in collaboration with the managers.
5.7 Responsibilities And Duties
A team can be responsible for a variety of duties and responsibilities, depending on the project
they’re involved in. Good project team organization entails proper setting of team
responsibilities and duties, while considering specific goals and objectives of the project. Here’re
several common responsibilities and duties of a project team:
• Gaining the right understanding of the amount and scope of assigned work
• Following the planned assignments
• Increasing the details level per task and activities, if needed
• Completing the assigned tasks within the constraints of scope, quality, time and cost
• Inform the leader of any issues arisen
• Proactively communicate and collaborate with other team members
5.8 Recruiting Project Members
The process of selecting and recruiting project members will vary across organizations. Two
important factors affecting recruitment are the importance of the project and the management
structure being used to complete the project. Often for high-priority projects that are critical to
the future of the organization, the project manager will be given virtual carte blanche to select
whomever he or she deems necessary. For less significant projects, the project manager will have
to persuade personnel from other areas within the organization to join the team. In many matrix
structures, the functional manager controls who is assigned to the project; the project manager
will have to work with the functional manager to obtain necessary personnel. Even in a project
team where members are selected and assigned full time to the project, the project manager has
to be sensitive to the needs of others. There is no better way to create enemies within an
organization than to be perceived as unnecessarily robbing other departments of essential
personnel. Experienced project managers stress the importance of asking for volunteers.
However, this desirable step oftentimes is outside the manager’s control. Still, the value of
having team members volunteer for the project as opposed to being assigned cannot be
overlooked. Agreeing to work on the project is the first step toward building personal
commitment to the project. Such commitment will be essential to maintain motivation when the
project hits hard times and extra effort is required. When selecting and recruiting team members,
project managers naturally look for individuals with the necessary experience and
knowledge/technical skills critical for project completion. At the same time, there are less
obvious considerations that need to be factored into the recruitment process:
• Problem-solving ability. If the project is complex and fuzzy, then a manager wants
people who are good at working under uncertainty and have strong problem identification
and solving skills. These same people are likely to be bored and less productive working
on straightforward projects that go by the book.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 8
• Availability. Sometimes the people who are most available are not the ones wanted for
the team. Conversely, if members recruited are already overcommitted, they may not be
able to offer much.
• Technological expertise. Managers should be wary of people who know too much about
a specific technology. They may be technology buffs who like to study but have a hard
time settling down and doing the work.
• Credibility. The credibility of the project is enhanced by the reputation of the people
involved in the project. Recruiting a sufficient number of “winners” lends confidence to
the project.
• Political connections. Managers are wise to recruit individuals who already have a good
working relationship with key stakeholders. This is particularly true for projects operating
in a matrix environment in which a significant portion of the work will be under the
domain of a specific functional department and not the core project team.
• Ambition, initiative, and energy. These qualities can make up for a lot of shortcomings
in other areas and should not be underestimated.
5.9 Four (Five) Stages of Team Development – Bruce Tuckman
Tuckman theorizes that these phases are all necessary and inevitable in order for the team to
grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver
results. This model has become the basis for subsequent models. The five stages are as follows:
Forming
In the first stages of team building, the forming of the team occurs. The individual's behavior is
driven by a desire to be accepted by the others, and avoid controversy or conflict. Serious issues
and feelings are avoided, and people focus on being busy with routines such as team
organization, who does what, when to meet, etc. Individuals are also gathering information and
impressions – about each other, and about the scope of the task and how to approach it. This is a
comfortable stage, but the avoidance of conflict and threat means that not much actually gets
done.
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 9
The team meets and learns about the opportunities and challenges, and then agrees on goals and
begins to tackle the tasks. Team members tend to behave quite independently. They may be
motivated but are usually relatively uninformed of the issues and objectives of the team. Team
members are usually on their best behavior but very focused on themselves. Mature team
members begin to model appropriate behavior even at this early phase. Sharing the knowledge of
the concept of "Teams - Forming, Storming, Norming, Performing" is extremely helpful to the
team. Supervisors of the team tend to need to be directive during this phase.
The forming stage of any team is important because in this stage, the members of the team get to
know one another, exchange some personal information, and make new friends. This is also a
good opportunity to see how each member of the team works as an individual and how they
respond to pressure.
Storming
Every group will next enter the storming stage in which different ideas compete for
consideration. The team addresses issues such as what problems they are really supposed to
solve, how they will function independently and together and what leadership model they will
accept. Team members open up to each other and confront each other's ideas and perspectives. In
some cases, storming can be resolved quickly. In others, the team never leaves this stage. The
maturity of some team members usually determines whether the team will ever move out of this
stage. Some team members will focus on minutiae to evade real issues.
The storming stage is necessary to the growth of the team. It can be contentious, unpleasant and
even painful to members of the team who are averse to conflict. Tolerance of each team member
and their differences should be emphasized. Without tolerance and patience, the team will fail.
This phase can become destructive to the team and will lower motivation if allowed to get out of
control. Some teams will never develop past this stage.
Supervisors of the team during this phase may be more accessible, but tend to remain directive in
their guidance of decision-making and professional behavior. The team members will therefore
resolve their differences and members will be able to participate with one another more
comfortably. The ideal is that they will not feel that they are being judged, and will therefore
share their opinions and views.
Norming
The team manages to have one goal and come to a mutual plan for the team at this stage. Some
may have to give up their own ideas and agree with others in order to make the team function. In
this stage, all team members take the responsibility and have the ambition to work for the
success of the team's goals.
Performing
It is possible for some teams to reach the performing stage. These high-performing teams are
able to function as a unit as they find ways to get the job done smoothly and effectively without
inappropriate conflict or the need for external supervision. By this time, they are motivated and
knowledgeable. The team members are now competent, autonomous and able to handle the
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 10
decision-making process without supervision. Dissent is expected and allowed as long as it is
channeled through means acceptable to the team.
Supervisors of the team during this phase are almost always participative. The team will make
most of the necessary decisions. However, even the most high-performing teams will revert to
earlier stages in some circumstances. Many long-standing teams go through these cycles many
times as they react to changing circumstances. For example, a change in leadership may cause
the team to revert to storming as new people challenge the existing norms and dynamics of the
team.
Adjourning (and Transforming)
In 1977, Tuckman, jointly with Mary Ann Jensen, added a fifth stage to the 4 stages: adjourning,
that involves the process of "unforming" the group, letting go of the group structure and moving
on. Some authors describe this stage as “Deforming and Mourning”, recognizing the sense of
loss sometimes felt by team members. Adjourning involves dissolution. It entails the termination
of roles, the completion of tasks and reduction of dependency. The process can be stressful,
particularly when the dissolution is unplanned.
5.10 Project Organization
Organisation (organization) is a team or group of people who work together for a particular
purpose, such as a government department, business or project. The Organisation Structure is a
framework to define the roles and responsibilities, work flow, reporting system, and decision
making. There is two type of an organisation: a permanent and task force organization.
The Project Organisation (organization) defines the human infrastructure, and identifies roles and
responsibilities of each positions that facilitates the coordination and implementation of project
activities. One of the important decisions of project management is the form of organizational
structure that the team members with a minimum missing, overlaps and conflict. The success of
project depends on its organizational structure, key personnel capability, and management work
process in which where decision is made.
5.11 Types of project organization
I. Functional type of the project management organization
This type, as one of the possible forms of realizing a project in the organization, represents the
possibility of its realizing in one, existing, functional part of the enterprise.
Advantage
Advantages of this model of realization can be, generally speaking, found in the fact that, in this
case, functional dimensions of the existing organization are used. The major advantages of this
model can be grouped in the following way:
• There is a maximal flexibility in using the staff. In case that the correct functional
department of the organization is selected for realizing the project, the department will
have the primary and administrative base for individuals with technical knowledge in the
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 11
fields relevant for the project. They can be temporary engaged in cases when their
contribution is necessary and then they can be returned to perform their regular activities;
• Some experts can be engaged in many different projects. With the broad basis of the
technical staff available to the functional department, if it is the case, the people can be
easily moved from one project to the other one.
• Experts in the department can be grouped to exchange knowledge and experiences they
possess. Thus, the project team has the access to any technical knowledge existing in that
functional group. Further, it can be the big resource of synergic solution for solving some
technical problems;
• Functional departments also serve as a basis of technological continuity when some
experts decide to quit the project team, and the enterprise, too. It is equally important,
both in technological continuity and in the continuity of procedural, administrative and
other policies which will result when the project continues in that department of the home
enterprise.
• The last, but not the least important is that the functional department possesses the
organized way of advancing individuals as experts in their functional fields. The project
can be an opportunity for promotion all those who took part in its successful work, but
the functional department is their home base and the focus of their professional
advancement.
Disadvantages
It is normal that so described way of project carrying out, besides all cited advantages, has also
its disadvantages which can be grouped as follows:
• The essential shortage of this way for project carrying out is that the client in not in the
center of activities and attention. The functional department, namely, has its own major
work which, the most often, has an advantage over the wok within the framework of the
project, therefore, the client’s interests are pushed into the background;
• Functional departments have the tendency of orientation to specific activities associated
with their activities. This not an unimportant problem in order to realize the project
successfully;
• Sometimes, in projects carried out by this form, neither individual is completely
responsible for the project. The lack of this precision usually means that the project
manager is authorized and responsible for some part of the project, but some other person
is authorized for other parts. This is obvious lack of coordination which is very important
in realization;
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 12
• The same reasons bring to the lacks of coordinated efforts which can have tendencies to
reduce the responsibilities for the client’s needs because there are several management
levels between the project and the client;
• There is also a tendency of suboptimal execution of the project that some people working
in the department where the project is realized very carefully and efficiently, are
interested in realizing some segments of the project and so neglecting and even ignoring,
more or less, the other ones;
• Motivation of the people working in the project has a tendency to grow weaker because
the project is not paying appropriate attention and some team members can understand
assigning their activities in the project as going astray from their basic activities;
• This organized approach does not enable the holistic approach to the project. Complex
projects, technically considered (development of complex and sophisticated products, and
similar) cannot be qualitatively designed by this method. Mutual inter departmental
communication and necessary knowledge exchange is insufficient.
Mechanical engineering
Materials engineering Inventory mgt. Market research
Quality control
Plant managers
Product manager
Electrical engineering
Sales
Promotion
Marketing manager
General manager
Engineering manager
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 13
II. Pure project management organization
The pure project organization is at the other end of the spectrum of organizational possibilities
for project management. The essential characteristic of this approach is that the project is
separated from the home organization. It becomes an independent segment with its special
technical staff, its own administration, connected with the home organization by wakened links
which are manifested in the periodical reports on the project advancement and some exceeding.
When we talk about the way of work performance, there are different solutions in business
practice. Some home organizations issue rules of administrative, financial, staff and control
procedures in detail. Contrary to this, some home organizations give the project an absolute
freedom. The previously cited points to the fact that there is a wide spectrum of possible
organizational varieties between these two extreme modalities; the choice depends on many
factors. Figure 29 is a graphical illustration of the model of a pure project organization for
project management. The pure project organization has its advantages and disadvantages,
identically as the functional model of project management organization.
Advantages
The advantages of this approach to project management can be classified as follows:
• The project manager is fully responsible and authorized for the project. Although he has
to report senior management of the home organization about the advancement of project
realization, the complete labor is allocated to the project.
• The complete labor, engaged in the project is directly responsible to the project manager.
In this case, permits and advices of department bosses are not necessary. The only
director in this model is the project manager;
• In case of realizing complex projects, when some phases are moved from one to another
functional department, communication lines are shortened because the whole functional
Human
resources Finance Research &
Development
Production Marketing Project “B” manager
R&D
manager
Marketing
manager Product
manager
Program
manager
General manager
Human
resources
Finance Research &
Development Production Marketing Project “A” Manager
Finance
manager
HR
manager
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 14
structure is bypassed, and the project manager communicates directly with the top
management structure;
• If several, similar projects are realized unsuccessfully, the pure project organization can
enable permanent, more or less expert staff which can develop necessary skills for some
technologies. This can be very important because, in case these groups exist, it can be a
good reference for the organization and it will attract consumers;
• The project team, having a strong and its own identity, has a tendency of developing the
high level of communications and the exchange of knowledge and experience among its
members;
• As the authority is centralized, the possibility of fast decision-making is increased. In this
way, the organization is enabled to react fast on the demands of clients or top
management;
• The rule of the united management is respected. The value of particular organizational
principles cannot be exaggerated, and the quality of subordination is doubtlessly bigger
when this subordination is done by one person;
• The pure project organization is structurally simple and flexible; it enables its relatively
simple application and understanding
• This type of the organizational structure has a tendency to support the holistic approach
to the project. The tendency of focusing an optimization of project segments, relating to
the whole project, can often result in technical errors in the project.
Disadvantages
As any model used for carrying jobs, generally speaking, so this form of project management
has its advantages and disadvantages. We have previously pointed to the very important
advantages of the project organization. Similarly, this form has very serious weaknesses. In
addition, we shall point to the disadvantages of this organizational form of project management:
• If the home organization has taken several projects at the same time, it is logic to expect
that every of them (if the same organization model) be completely equipped and supplied
by all resources. This may double or tripled, as a consequence, the efforts in every fields,
from the office staff to the most sophisticated (and most expensive) units for
technological support;
• In essence, the need to ensure the accessibility to technological knowledge results in the
attempt of exaggerated accumulation of equipments and technological supports with a
view of ensuring that they will be available in every moment when it is needed.
Therefore, the people with critical technical skills can be engaged in the project longer
than it is necessary. Similarly, there may be a tendency that the project manager wishes to
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 15
keep them in the project longer than they should be in order to protect them from possible
bad events;
• Keeping the project out of the technical control of the functional department may have its
advantages, but also serious disadvantages, especially in cases when it belongs to the
fields of “high technologies”. The functional departments are still the base of
technological knowledge and it is not so simple to determine that only some of them can
be part of the pure project team;
• In the pure project organization, we have already cited, during defining one of the
characteristics f the project, the project has its own independent life span or cycle, with
the beginning and the end. The team members are strongly associated with the project
and among themselves. The increase of division “we – they” deforms the relationships
between the team members and the other team members and the relations in the home
organization. Rivalry among friends can become keen or hostile competition;
• At the end, but is not the least important. At the beginning, we have pointed that the
project has the life span with the beginning and the end. Within this context, there is a
question: what to do after the project? It is necessary to emphasize great uncertainty of
the team members’ future after finishing the project, their further engagement,
equipments, and so on.
III. The matrix form of project management organization
From the above-cited, it is obvious that considered forms have their serious advantages, each of
them separately, which qualify them as acceptable, but there are also serious disadvantages.
Trying to collect advantages of the pure project organization with determined and desired
characteristics, as well to avoid disadvantages of any of them, a matrix organization for project
management has been developed. In essence, careful consideration of all the cited, as well as all
that is appearing in practice, draws a conclusion that the previous two forms, functional and
matrix, represent the extremes on the spectrum of varieties of possible forms for organizing
project management. Thus, the matrix organization can be considered as the combination of
these two forms so we can find in the professional literature that it is about covering the pure
matrix organization over the functional departments in the home organization. The fact that it
represents the combination of two extreme forms generates the existence of different modalities
and which will be differentiated if it is more similar to functional or pure matrix ones. If the form
of project management organization is more similar to the pure project organization of project
management, then we talk about the “strong matrix organization”. If contrary to this case, then
we talk about the “coordinating”, “functional”, or weak matrix organization more similar to the
functional one. As there is the middle in every dilemma, there is the so-called “balanced” matrix
organization being between these two. In the project practice of case studies in this field, there is
unlimited number of varieties of organizational forms, between these extremes, and the primary
difference between these forms is determined by the level at which the power of decision-making
is, i.e. it is concentrated in the project or functional manager. Methodologically considered, it is
easier to explain the “strong matrix organization”. Instead of standing aside in relation to the
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 16
home organization, as in case of the pure matrix one, it is not separated. This form of the
organization is illustrated in Figure 3.
The matrix organization is balanced between these extremes which is nothing else but the
balance of the cited approaches where there are many different mixtures of project and functional
responsibilities. So, for example, in cases when projects require the group work, before all, it is
usual to prefer the group work to their transfer in projects. As for the previous models, the matrix
approach also identifies some advantages and disadvantages.
Advantages
Advantages can be classified as follows:
• The project is paid the central attention, as with the pure matrix organization. The
individual, i.e. the project manager, takes over the full responsibility for project
management, its realization as planned, within the framework of in advance defined
budget, specifications and quality;
• The fact that the project organization includes functional departments, temporary taking
over workers and their skills from these departments, draws the logical conclusion that
this enables the use of all resources from all functional departments. This is especially
General Manager
Engineering Operations Marketing Financial Others
PM 1 1.5 1.5 1.5 4
Functional Responsibility
PM3 0.5 3 0.5 1
Project
Responsibility
PM2 4 1.5 0.5 2
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 17
important when many projects are carried out at the same time and experts for all
departments are available to all projects; it drastically reduces the multiple resource use,
as with the pure project organization;
• Here, the team members are not so much afraid for their destiny after finishing the
project, even in case of their strong association with the project because they are the
personnel of the home department;
• The answer to the client’s needs is equally fast as with the project approach, but the
matrix is more flexible because it is included into the organization which already
functions and it has to adapt to these needs;
• With this type of organization, management will have the possibility to use the existing
administrative staff. The result of this is the consistency with policies, procedures and
practice of the existing enterprise which will be saved.
• In case of simultaneous realization of several projects, the matrix organization enables
better resource use, from the aspect of the company on the whole. This, holistic, approach
of considering the enterprise, as an entirety, enables the supply of needed resources for
the period which enable the optimization of using resources of the whole company.
• Contrary to the pure project organization representing the extreme in the spectrum of
possible varieties, the matrix organization tries to include the wide field of these extreme
approaches.
Disadvantages
These cited advantages of the matrix approach sound very strongly, but disadvantages, which
will list, are also very serious and they are mostly manifested in the conflict of two diametrically
supposed principles.
• In the functional approach of organizing the project, all the power for decision-making is
doubtlessly concentrated in the functional department while in the project approach, it is
with the manager. This power, which can be very important in relation to the project
destiny, is very balanced in the matrix approach. If there is any doubt about the
responsibility, the project suffers. If there is uncertainty about the positive result of the
project, the struggle for the prestige according to the question “who is responsible for
praise and glory” can increase;
• We have already cited that one of the advantages of this approach is manifested in the
possibility to carry out several projects simultaneously and control time, costs and
performance quality. This possibility, however, has its shortages. The set of projects must
be considered on the whole although it is very difficult. In addition, transferring resources
from project to project with the need to satisfy different term plans of every project can
specially increase conflicts between project managers. The consequence of this cannot be
optimal performance of objectives of the organization;
Md. Amzad Hossain∗
∗ Lecturer in Finance; DBA; IIUC; Web: www.mahiiuc.weebly.com 18
• Similar to the existing problems relating to the end of the projecting, they are present in
the project organization and they cannot be simply evaded because it is the work with the
beginning and the end.
• The project management controls administrative decisions in matrix organized project
realization; technical decisions are controlled by the responsible manager in the
functional department. This distinction explained in the handbook in this way sounds
logical and understandable, but it can be very delicate in the concrete project
management of job distribution and authority in decision-making and division of
responsibilities. The capability of the project manager to negotiate about all resources for
technical support and their delivery on time can be of the key importance for the whole
work;
• This management model directly violates one of the principles of the management unity
command. The staff involved in the project has at least two managers, their functional, as
well as permanent, and the project manager, whose function stops when the project ends,
but its realization is in progress and he is the key manager. This represents a very serious
problem.
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