Unit I Project Planning

BBA 4126, Project Planning 1 Cou rse Learning Outcomes for Unit I Upon completion of this unit, students should be able to: 2. Discuss the strengths an d weaknesses of different organizational structures, such as functional, matrix, and projectized. Reading Assignment Chapter 1: Modern Project Management Chapter 2: Organization Strategy and Pr oject Selection Chapter 3: Organization : Structure and Culture Unit Lesson Welcome to Project Planning. In our work together , you will acquire the tools to understand, design, and apply systemic project management or ganization and administration. We will deal with issues such as satisfying customer needs, applying bud geting concepts, manag ing production time, invest ing resources, and creat ing performance specifications designed with defined require ments. This is an important course in your understanding of how to work through the project planning process. We will begin with some fundamental and core concepts. Organizations can be structured in one of three ways: functional, projectized, and matrix. Those with a functional structure have a hierarchal chain of command, delineate departments based on specific job duties, and are much less flexible with change. Projectized organizations have a more fluid chain of command : Job duties and departments are based on individual expertise and are much more flexible to change. W here a functional organization would require meetings, committees, and extensive negotiation with various levels of management to get the right people working on a project, a projectized organization can have a few meetings and the right people are assigned to a project or multiple projects as their expertise is needed. As its name implies, organizations with a matrix structure are a combination of functional and projectized. Would that cause tension between the different types of managers and ways of doing business? Yes, it would. This tension is recognized b y identifying organizations as a strong matrix or a weak matrix. Strong matrix organizations are those where the project manager has more power, whereas in weak matrix organizations , the functional manager has more power. Power in an organization is impor tant because it can determine the speed at which projects are initiated and completed. Projectized and strong matrix organizations enable project managers to identify, acquire, and utilize resources (including staff ) for projects with limited interference. Functional and weak matrix organizations restrict the ability of project managers in these same actions because resources (especially staff ) must be approved at various levels by functional managers throughout the hierarchal chain of command , including cr oss departmentally. Some resources can be approved at the first functional manager , but others must be approved by top -level management or a governing body , such as the Board of Directors or city council. For example, in a weak matrix organization, a proje ct has been approved by senior leaders and the project manager has been chosen. The project manager determines that they will need additional staff with expertise the company does not currently have. Since the functional manager has more power than the pro ject manager, the functional manager will have to evaluate if the project manager is correct in his or her assessment of need, determine how to fill the position (contract, temporary hire, direct hire , part -time , or full - UNIT I STUDY GUIDE Introduction and Strategy BBA 4126, Project Planning 2 UNIT x STUDY GUIDE Title time), review budgets in the projec t and the human resources department, obtain higher manager approval, and determine the timeline for hiring and employment for the new stuff . In a weak matrix, this process can be completed quickly if the project is high profile or strongly supported by se nior leaders ; however, it can also take an indefinite amount of time , during which the project manager can only wait. One way a project manager can increase his or her power in a functional or weak -matrix organization is through leadership skills. Working with functional managers to build trusting and respectful teams, sharing decision -making responsibilities, and communicating with them as part of the project tea — as opposed to obstacles to overcome —can go a long way toward creating a more even balance of power. Leading by an example of collaborative partnerships with functional managers is one of the best leadership skills a project manager can have in any type of organizational structure. A Closer Look You are recently hired as project manager of an avi ation project. During the meeting, you are informed that you will report to a manager who works in the Operations Department. There are two issues that concern you about this situation: (1) You do not know the manager, which means that you do not have any idea regarding his expectations . (2) You prefer a situation in which you can make decisions on your own. Because the project manager will report to the operations m anager, the organizational structure is functional. The fact is that many companies operate in this manner. Functions include Accounting, Finance, Information Technology, Marketing, Operations, and so on. For effective project management, it is essential that teams are cross functional . In other words, the different departments are represented. By taking this approach, silos are avoided. In this scenario, the project manager must contact the functional manager to gain a clear understanding of how work is done. The focus must be on the project objectives and how they can work together to meet the requirements. A sticking point is access to resources, which includes people, capital, equipment, and technology. Of course, making sure that people are available to handle project work is the most significant item. Project managers must have the ability to negotiate. For example, the functional manager might want to restrict the number of hours that a key person can contribute to the project. In this case, the project manager can negotiate for additional time or for another person to participate on the p roject. Given that the functional manager has the power in this structure, the project manager must have a back -up or contingency plan. Learning Activities (Non -Graded) Com plete the Chapter 1 , 2 , and 3 Quiz zes from the McGr aw -Hill Online Learning Center . http://highered.mheducation.com/sites/0078096596/student_view0/index.html First, select the chapter from the dropdown menu on the left side of the screen. Next, click on the “Multiple Choice Quiz” link below. Non -graded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information.