Chapter-5 Project Manager, Team and Project Organization · addition, project managers are responsible for recruiting and building project teams, and making projections about the

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.



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



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



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.



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.



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.



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.



• 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.



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



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



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;



• 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



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



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



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



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



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;



• 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.

Documents

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