Project ion & Structure

8/3/2019 Project ion & Structure

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PROJECT ORGANISATION & STRUCTURE

byOlawale, T A


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CONTENT

Organizational Structure 3 -17

Project Human Resource

Management 18

- 47

Stakeholders and their

Strategic Importance 48


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Learning Objective

To have proper understanding of thestructures that could be adopted inrunning a project in order to createProject Organizational Chart & defineRoles & Responsibilities.


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Two main types of organizationalstructure exist:

Traditional (2)Simple Structure

Functional Structure

Contemporary (2)

Project StructureMatrix Structure


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Simple Structure:

Strengths: Decisions can be made very fast.There is flexibility, no rigid structure to impedethinking and creativity. It is not expensive to maintain.There is clear accountabilityas the system has

only one person in control.

Weaknesses: Not appropriate as organisation grows; reliance

on one person is risky. Employees are torn between direction and the

use of

initiatives ( Crisis of Autonomy).Solution:This can be resolved through the use of the

instrument called delegation that exists in otherstructures, particularly where project is

reasonably and relatively big.


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Functional Structure:

Characteristics: It used to be the traditional organization for

dealing with projects. It is structured along operational disciple. Projects are either assigned to functional

managers or executed in bits going from one

functional manager to another depending ontheir area of expertise.

Strengths: Minimum duplication of people & equipment.

Weaknesses: Pursuit of functional goals can cause Managers

to lose sight of what is best for overallorganisation;

Functional specialists usually have microscopic

view of project.


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Microscopic view of project has beenobserved to be a major problem for peoplewith technical know-how on projects andusually these group of people fail when

they are given the responsibility ofmanaging projects, hence the need forproject management knowledge.

Hence, it is a poor model for executingprojects because focus is usually onfunctional objectives rather than projectobjectives. Usually, nobody takesresponsibility for project accountability.


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Example of a Functional Structure

General Manager

Finance Human Resource Appointment & Promotions

Junior Positions Technical Positions Administrative Positions

Training & Development Manufacturing Sales Engineering

Mechanical

Electronics Drafting Design Engineering


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Project Structure:

The project organisation is aspecialized one for executingprojects.

Employees work continuously onprojects.

The organisations lifespan is equalto the lifespan of the project.

Many specialized projectorganizations are established prior tosubmitting a bid for the project. If the

project is not awarded to the firm,


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Merits Very fluid & flexible i.e. no rigid

departmentalization or organizational

hierarchy.There is focus on project delivery.

Demerit Project structure makes less efficient use of

resources as employees are underutilizedduring slack time/period.

A typical example is the establishment of

Campaign Organisations towards electiontime. A temporary structure is formed andregistered as an organisation just for thepurpose of election and thereafterdisbanded.


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Matrix Structure:

Assigns specialists from different functionaldepartments to work on projects led by ProjectManagers.

It is a mix of both functional & projectorganisations.

It is best for managing projects in organizationsthat engage in multiple projects all the time.

Usually confusion, conflict & ambiguity occuramong project managers, functional managers& the staff who are positioned between the twoleaders.

A dual chain of command is created, whichviolates unit of command (one of the 14


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Solutions:

Therefore, there is need for proper

communication.understanding of roles & responsibilities

among all team members.Reporting lines must also be made very

clear to all.Project managers expected to exercise

authority over project goals while

functional managers take responsibility forromotion and disci le of staff.


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Design

Engineering

Manufacturing Purchasing &

Contract

Administration

Accounting Human

Resource

Project A Design GroupManufacturing

Group

Purchasing &

Contract

Administration

Group

Accounting

Group

Human

Resource

Group

Project B Design GroupManufacturing

Group

Purchasing &

ContractAdministration

Group

Accounting

Group

Human

ResourceGroup

Project C Design GroupManufacturing

Group

Purchasing &

Contract

Administration

Group

Accounting

Group

Human

Resource

Group

Project D Design Group Manufacturing

Group

Purchasing &

Contract

Administration

Group

Accounting

Group

Human

Resource

Group


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Internal PM Structure: Project structure can take any of the four forms

discussed earlier.

Project manager is responsible to the Senior Executiveor management of the organisation.

Project manger has to negotiate with individual functionmanager to share resources if Functional Structure is inplace.

Two lines of authority exist for team members: projectmanager and functional manager if Matrix Structure isin use.

Project can originate from any level of organization.

Pro ect mana er is held accountable for ro ect success


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External PM Structure:

External project manager acts as anagent of the contractor.

Project Manager owes no allegiance to

client organization but to theorganisation that employed him/her.Rather the organization given the projectis held responsible.

Functional structure of the organizationhas no direct relevance to or impact onproject as the project is being managed

by persons outside the contracting


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Instructions and communication between

external .

Contractor and the project owner cross theorganizational boundary. This boundaryrepresents a barrier to effective

communication. However, greater risk exists as there is no

in-built knowledge of the firm. This can bedisadvantageous to attaining projectsuccess if not properly researched.

e.g. Computerization of businessrocesses in a harmaceutical firm


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HUMAN RESOURCE PLANNING

PROJECT TEAM ACQUISITION

PROJECT TEAM MANAGEMENT &

DEVELOPMENT


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Learning Objective: Identifying & documenting project roles,

responsibilities & reporting relationships

as well as creating staff management planthrough:- The recruitment of sufficient & suitable

project staff.

- The retention & optimum utilization of projectstaff.

- Project staff performance improvement plan.

- Disengagement of project staff after

completion of project.


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Estimating Personnel Requirement

This can be achieved through the following means:

1. Exercise of Managerial Judgement

2.

Use of Statistical Tools- Trend Analysis:- Ratio Analysis:- Scatter Plot:

Use of Computer PackagesComputer programs can be written and developed inprojecting personnel requirements of any particularprojects provided the parameters are well defined


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What is Job Description?

It is a list of job duties, responsibilities, reportingrelationships, working conditions, & supervisoryresponsibilities.

Information contained in most job descriptions include:Job Identification : Job Title, Job Code, DepartmentReporting RelationshipJob SummaryResponsibilities & DutiesWorking Conditions

Job Description is based on objective informationobtained through job analysis.


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What is Person(Job) Specification?

It is an important tool in the selection process asit keeps the attention of the selector on thenecessary qualifications required for performingproductively on the job.

Job analysis brings out the necessary KSA-Knowledge, Skills & Abilities required to performon the job, which are indicated in the Person(Job)

Specification.


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It occurs in 3 different ways:

1. - Pre-assignment

2. - Negotiation

3. - Acquisition

Pre-Assignment

Team members are already known in advance within thesystem due to the contribution of the person or hisexpertise or the peculiar duties of such person isalready defined in the Project Charter.


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NegotiationPM negotiates with functional managers toensure the release & cooperation of neededstaff in that functional department on theproject.

PM negotiates with other existing projectteams where there different competencies arerequired on the project.

Acquisition

Where needed skills are lacking in-house or notsufficient, it is either:the service is subcontracted to otherorganization

individual consultants are hired


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Steps to appointing new employee onprojects

1.Define the role Carry out job analysis that leads to Job

Description & Person(Job) Specification.

2.Find Top Candidates 3.Test Candidates Perform personality, competency and

numerical tests. Seek 3 references from past

employers/institutions. Carry out background check and verify

credentials to check for integrity.


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4. Interview Candidates

Prepare a list of questions before starting. Make itstructured interview for uniform scoring.

Cover all areas of job description during the interview. Address any strengths & weaknesses from their CV. Consider the quality of the questions they have posed to

you. Be specific, direct & to the point at all times.

5. Select Candidates Select the right person for the job based on 1 4 If you have difficulty choosing between two persons: Hire neither and start again, or Hire both & deliver the project earlier, though at a higher cost


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Learning Objective

To understand the dynamics ofmanaging people to get result due tothe complexity of human beings.


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This topic covers:

Personality management

Stages in team formation

Elements contributing to team bonding

Motivation

Delegation

What to avoid in team management

Conflict resolution


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Personality Management

A mix of different personality arerequired in successfully executing aproject. There exist a role for everypersonality type in virtually allprojects.

There are several models describingpersonality: Myers Briggs; Carl Jung,etc.

We will however focus on discussing


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Ezekiel 590BC(Ezekiel 1:10)

Lion Bold(Brave/Courageous)

Ox Sturdy(Strong/Powerful)

Man Humane (Kind/Gentle)

Eagle Far-sighted

(visionary/predictive)

Hippocrates 370BC

Blood Cheerful(Happy/Jovial)

Black-bile Sombre(Serious/Sober)

Yellow-bile Enthusiastic(Keen/Excited)

Phlegm Calm(Peaceful/Cool)

Galen 190AD Isabel MyersBriggs 1950s

David Keirsey1998

Cheerful Sanguine Sensing-Perceiving Artisan

Sombre Melancholic Sensing-Judging Guardian

Enthusiastic Choleric Intuitive-Feeling Idealist

Calm Phlegmatic Intuitive-Thinking Rationalist


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Sanguine An optimistic fellow;happy and playful.

Melancholic - A gloomy individual;

always moody.

Choleric - An ill-tempered person;easily made angry.

Phlegmatic - Somebody who is noteasily excited; apathetic;unconcerned and indifferent


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Artisan Says what is;does what works.

Guardian Says what is;

does what is right.

Idealist Says what is possible;does what is right.

Rationalist Says what is possible;does what works.


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Stages in Team Formation

Forming - Members are testing the waters tosee what type of behaviour would be acceptableby the group.

Storming - Roles are assigned; personalitiesbegin to show; differences in behaviour of othersand their abilities can lead to conflict, which cansmoulder and escalate unless tackled promptly.

Norming - There exists now a strong

demonstration of the teams identity. Confidencestarts to improve; relationships strengthen;differences of opinion are respected; solutionsbegin to develop


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Performing-The structure at this point is fullyfunctional; delegation occurs andassigned work packages aredelivered with ease, goals and

targets are reached regularly andeffectively.

Adjourning-At this stage, the team prepares forits disbandment. Attention is shiftedtoward rapping up activities. Some ofthe team members feel excited overcompletion while others feeldepressed due to the loss of


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Elements Contributing to Team

Bonding

Vector = magnitude x direction

Force = mass x acceleration

There are forces that pulls apart(centrifugal) andothers that bring together (centripetal). These forcesare called vectors.

This occur in organisations generally due to ourdifferent beliefs, thoughts desires and diversities(personality types).

How can we now pull centrifugal forces exhibited in

human behaviour together towards helping the

1 A f fl f i f ti L t


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1. A free flow of information Let necessaryinformation that is required for individualsto function be made available.

2. Open communication dont do selectivedissemination of information.

3. Frequent feedback let people know how

they are performing: acknowledgeexcellence and point out deficiencies aswell (in very polite manner).

4. Regular one-to-one interaction5. A listening culture make yourself

approachable in order for you to hear mostunpopular views about your actions.


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Motivation

They are instruments that make people workeffectively and harmoniously.

These instruments can be grouped in two:

Motivators (Satisfiers) and De-motivators(Hygiene).

De-motivators are factors that are requiredonly in sufficient quantity as there presencenever motivates but absence definitely de-motivate.

Satisfiers, on the other hand, are always

required. Provision of more of these can onlylead to better ob satisfaction and in turn


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MOTIVATORS(satisfiers) Score DE-MOTIVATORS(hygiene) Score

Recognition 1 Relations with project

manager

1

Achievement 2 Team peer relations 2

Responsibility 3 Salary 3

Team peer relations 4 Project manager's leadership 4

Salary 5 Security 5

Relations with project manager 6 Work conditions 6

Project manager's leadership 7 Organization's policy 7

Work itself 8 Team subordinate relations 8

Advancement 9 Personal time 9

Personal growth 10 Title/status 10

R.J. Yourzak, Motivation in Project Environment (1985)

EXTREME SATISFACTION Score EXTREME DISSATISFACTION Score


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EXTREME SATISFACTION Score EXTREME DISSATISFACTION Score

Achievement 1 Organization's policy 1

Recognition 2 Supervision 2

Work itself 3 Relationship with supervisor 3

Responsibility 4 Work conditions 4

Advancement 5 Salary 5

Growth 6 Relationship with peers 6

Personal life 7

Relationship with subordinates 8

Status 9

Security 10

Frederick Herzberg, How do you motivate employees Harvard

Business Review (January, 2003)


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Delegation

How relevant is delegation?

It helps getting result faster.

It reduces stress on the accountingofficer (project manager/team leader).

It also helps bonding, recognition &achievement (i.e. good delegationmotivate workers).

It is a good tool for managing a team.


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Basic Rules in Delegating

1. Select the right person for the task.

2. Give clear directives withoutambiguity.

3. Break down tasks for easycomprehension using WBS (WorkBreakdown Structure).

4. Create milestones to check onprogress.

5. Give appropriate timelines for

completion.

f


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LEVEL OF EXPERIENCE DEGREE OF SUPERVISION REQUIRED

1. New or inexperiencedperson, low confidence Tell the person what to do; show them how to do it;put a plan together, showing each checkpoint when

they have to report back to you; review the task and

give feedback.

2. Slightly more

experience/confidence

Tell the person what your desired outcome is, and

plan the steps together. Less frequent checkpointsthan (1).

3. More experienced,

though needs some

guidance and help

Tell the person what your desired outcome is and

allow them to plan it, and establish when checkpoints

are necessary.

4. Experienced,

committed person

Explain the required outcome, timescales, and

checkpoints (if any), and leave them to get on with it.

But don't abdicate all responsibility for the task; you

are the project leader, and are ultimately responsible

for everything!

Experience and Level of Delegation


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What to Avoid in Team

Management Not involving your team early enough in

decision making.

Never impose your own plan on your teammembers. Get them to contribute to the making of the plan

thereby getting their buy-in, which is crucial forsuccessful completion of project.

Micro-managing team members. Getting involved in the details can only lead to de-

motivation of team members. Allow your team to use initiative and take

responsibility within the scope of work packages

assigned to them.


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Conflict Resolution

Conflicts can be very destructive if notnoticed and curtailed early.

WHY?

There are two types of conflicts Covert andOvert.

Overt is open confrontation/ expression ofdissatisfaction, while Covert in hidden

expression of anger and rebellion.These two types of conflicts can as well be

strongly linked with the different personalitiesin existence.

Conflicts lar el occur durin the formin and


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How can we tackle conflicts?

1. Recognize conflict - Know that conflictsometimes do not appear in its raw form. It maybe disguised.

2. Monitor the climate - know what goes on inyour environment by being close to the peopleusing both formal and informal reportingtechniques.

3. Research the situation - Conduct yourinvestigation and find the root cause of theproblem.

4. Call for a conference -This approach mustinclude getting the warring parties to speak up on


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5.Tackle the issue

a. Give everyone involved opportunity toexpress their view point.

b. Avoid fight or flight.c. Be assertive but not aggressive.

d. Acknowledge the views and rights of allparties.

e. Encourage them to solve their ownproblems.

f. Have input(s), and suggest the way

forward


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Learning Objective

The success of any project though rests more

on the astuteness of the Project Manager, itcan not be wished away that knowing andcarrying the stakeholders along is also verycritical.

It is therefore necessary to know who thesestakeholders are, and also

Know the steps in analysing stakeholders.


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Primary Stakeholders

Project Sponsor/Senior Executive

Project Manager

Project Team

Project Customers/Users

Project Opponents


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Project Sponsors/Senior ExecutivesRole

Initiates/conceptualize project ideas.

Outline the scope of the project in general

terms.

Appoints an experienced project manager.

Assigns a limited number of staff to theproject team/ granting approval to teamselected by the Project Manager.

Maintaining a balance of power betweenthe functional heads and the roject


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Approves the initiation of project/ project planand indeed every phase of the project.

Funds the project through the release of money

appropriately at every stage based onsatisfactory report of previous stage executed.

Resolves issues and risks that are beyond the

Project Managers agreed tolerance.

Approves termination/conclusion of project andclose out plan.


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Examples of project sponsors:

Richard Bradson of Virgin GroupDonald Trump from USAAlan Sugar of the United Kingdom

Aliko Dangote of Dangote GroupMike Adenuga of Globacom, Conoil, etc


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Project Managers Role

The roles expected of the project manager followsfrom the Project Management Processes:

Project Initiation

Project Planning - Project Execution Project Monitoring & Controlling Project Close-out

Project Initiation Carry out visibility study and do project selection. Signs a project charter with the Project Sponsor. Prepares initiation papers and get approval from sponsor

to commence project.


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Project Planning Identifies project deliverables, tasks and milestones. Develops Project Schedules.

Identifies resources needed such as human, material,money.

Project Execution

Assigns tasks and resources, giving clear instructions toproject teams on timelines, cost benchmark andmilestones.

Saves a Baseline Plan. Monitors at intervals and at the scheduled milestones.


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Project Monitoring & Control

Identify risk and issues.Tracks changes with Project Plan. Calls review meetings as planned or required. Approves changes within tolerance limits. Communicates clearly project development with

stakeholders and get the right approvals to continue.

Project Close-out Upon completion of project, compile lessons learned

documented as the project went on. Create a template to guide future similar projects.

Dispose of used equipment with scrap value next to nothingand clean up the project site.

Hand over project to the project sponsor(if external to theproject organisation) and to the Senior Executive, if internal .


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Project Teams Role

Teams are to be guided by the following - K.Schwalbe (2006): Code of Conduct be proactive, then active,

participate. Be focused on what is best for theentire project.

Participation be honest & open, encouragediversity in team work, be receptive to newthinking.

Communication work together to create projectschedule, ensure project manager facilitate

meetings with the Project Manager keepingdiscussions on track.

Problem Solving encourage people to participatein problem solving

Follow guidelines for holding meetings, keepingminutes and appropriate records.


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Thank you for your

attention.

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Project ion & Structure

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