IT Project Management Unit -II

CHAPTER 4
THE HUMAN SIDE OF PROJECT MANAGEMENT
Organizational Structure
The three most common organizational structures-the functional organization, matrix organization, and
project-based organization.
1. The Functional Organization - The functional organizational structure may be thought of as the more
traditional organizational form. This particular structure is based upon organizing resources to perform
specialized tasks or activities in order to attain the goals of the organization. Projects in a functional
organization are typically coordinated through customary channels and housed within a particular
function.
Advantages of functional structures:
1. Increased flexibility – Subject matter experts and other resources can be assigned to the project as
needed. In addition, an individual can be part of the project team on a full-time or part-time basis.
Once the project is completed, the project team members can return to their respective functional
units.
2. Breadth and depth of knowledge and experience-Individuals from a particular subunit can bring a
wealth of knowledge, expertise, and experience to the project. This knowledge can be expanded even
further as a result of their experiences with the project.
3. Less duplication-Coordination of resources and activities can lead to less duplication of resources
across projects since specialization of skills and resources are housed within a functional area.
Disadvantages of functional structures:
1. Determining authority and responsibility-As was mentioned previously, determining who has
authority and responsibility for a project must be resolved at the outset, especially when the
project involves more than one functional area.
2. Poor response time-The normal lines of authority and communication delineated by the functional
structure determine who makes specific decisions. Projects may take longer if important decisions
have to pass through several layers of management and across several functional areas.
3. Poor integration-The culture of the organization may encourage functional areas to insulate
themselves from the rest of the organization.

2. The Project Organization- This organizational structure supports projects as the dominant form of
business. Typically, a project organization will support multiple projects at one time and integrate
project management tools and techniques throughout the organization. Each project is treated as a
separate and relatively independent unit within the organization. The project manager has sole authority
over and responsibility for the project and its resources, while the parent or supporting organization
provides financial and administrative controls. Both the project manager and the project team are
typically assigned to a particular project on a full-time basis.

Dr. J. Hannah Monisha, Department of Computer Science Page 1

 IT Project Management Unit -II

Advantages of Project Organization

 Clear authority and responsibility- Unlike the projects in a functional
organization, the project manager here is fully in charge. The project team
reports directly to the project manager, thus providing clear unity of
command. This structure may allow the project team to better concentrate
on the project.
 Improved communication-A clear line of authority results in more effective
and efficient communication. In addition, lines of communication are
shortened because the project manager is able to bypass the normal
channels of distribution associated with the functional organizational
structure.
 High level of integration-Since communication across the organization is
increased, the potential for a higher level of cross integration across the
organization exists. For example, the project team may include experts
with technical skills or knowledge of the business. Fewer conflicts over
resources arise since each project has resources dedicated solely to it.
Disadvantages of Project Organization
 Project isolation-Since each project may be thought of as a self-contained unit, there is a potential
for each project to become isolated from other projects in the organization. Unless a project
management office or program manager oversees each project, inconsistencies in policies and
project management approaches may occur across projects.
 Duplication of effort-While the potential for conflicts over resources is reduced, various projects
may require resources that are duplicated on other projects. Project managers may try to stockpile
the best people and other resources that could be shared with other projects.
 Projectitis -Projectitis sometimes occurs when the project manager and project team develop a
strong attachment to the project and to each other. As a result, these individuals may have a
difficult time letting go, and the project begins to take on a life of its own with no real end in sight
The Matrix Organization - The third type of organizational form is the matrix structure. The matrix
organization is a combination of the vertical functional structure and the horizontal project structure. As a
result, the matrix organization provides many of the opportunities and challenges associated with the
functional and project organizations. The main feature of the matrix organization is the ability to integrate
areas and resources throughout an organization. Moreover, people with specialized skills can be assigned
to the project either on a part-time or on a more permanent basis.
The matrix organization can take on various forms that can create hybrid organizations. The most
common forms include:
Balanced matrix-In the balanced matrix form, the project manager focuses on defining all of the activities
of the project, while the functional managers determine how those activities will be carried out.
Functional matrix-The functional matrix organization tends to take on more of the qualities of a
functional organization. Here the project manager focuses on coordinating the project activities, while the
functional managers are responsible for completing those activities that are related to their particular area.
Project matrix-It follows, then, that a project matrix structure would take on more of the qualities of a
project organization. In this case, the project manager has most of the authority and responsibility for
defining and completing the project activities, while the functional managers provide guidance and
resources, as needed.
Advantages of Matrix Organization
 High level of integration-The cross-functional nature of the matrix structure allows for the access
and sharing of skilled people and resources from across the organization, and people within the
organization can be assigned to more than one project. This ability to share can result in less
duplication of resources and activities.

Dr. J. Hannah Monisha, Department of Computer Science Page 2

 IT Project Management Unit -II

 Improved communication-Due to the high level of integration,

communication channels are more efficient and effective. As a
result, problems and issues can be addressed by the project
manager and functional managers, and decisions can be made
more quickly than in a functional organization.
 Increased project focus-Because a project under the matrix
organization has improved communication channels and access to
a repository of resources and skilled expertise, the project team
can focus on the activities of the project. This ability to focus
should increase the likelihood of projects being completed on time
and meeting the needs of the organization better.
Disadvantages of Project Organization
 Higher potential for conflict-Since power is distributed, project
team members may wonder who really is their boss. They may
receive conflicting orders, especially if the project and functional
area managers have different goals or are fighting over scarce
resources.
 Poorer response time-Because the concept of unity of command is
violated in a matrix structure, there can be confusion, mixed loyalties, and various distributions of
power. Communication can become bogged down, and decisions may require agreement from
individuals who are in conflict with each other.

THE INFORMAL ORGANIZATION

The formal organization is the published structure that defines the official lines of authority,
responsibilities, and reporting relationships. In many cases the informal organization bypasses the formal
lines of communication and authority because of the inevitable positive and negative relationships that
occur over time in any organization.
Stakeholder Stakeholders are individuals, groups, or even organizations that have a stake, or claim, in the
project's outcome. Often we think of stakeholders as only those individuals or groups having an interest in
the successful outcome of a project, but the sad truth is that there are many who can gain from a project's
failure. While the formal organization tells us a little about the stakeholders and what their interests may
be, the informal organization paints a much more interesting picture.
Stakeholder Analysis The informal organization may be more difficult to understand or explain, even for
those well-connected individuals. To help the project manager and project team understand the informal
organization better, one can develop a stakeholder analysis.
The following steps provide a guide for developing a stakeholder analysis:
 Develop a list of stakeholders.
 Identify the stakeholder's interest in the project.
 Next, it may be useful to gauge the amount of influence each stakeholder has over the project.
One can use a scale from 0 to 5, with zero meaning no influence and five meaning extremely high
influence-that is, this person or group could terminate the project.
 The fourth step involves defining a role for each of the stakeholders. For example, every project
should have a champion or someone prominent within the organization who will be a public
supporter of the project.
 Identify objective for each stakeholder. This may include such things as providing specific
resources, expertise, or guidance navigating through the political waters of the organization.
 Lastly, it is important to identify various strategies for each stakeholder. These strategies may
require building, maintaining, improving, or re-establishing relationships. In short, this list should
include a short description of how the objective could be attained.

Dr. J. Hannah Monisha, Department of Computer Science Page 3

 IT Project Management Unit -II

The Roles of the Project Manager

The project manager is a key position that should be filled at the earliest stages of the project. The project
manager plays many important roles that include not only the traditional roles of a manager, but also roles
specific to the nature of projects. Therefore, the project manager must be a skillful communicator,
negotiator, organizer, and relationship builder. In addition, the project manager must perform several
critical tasks, including selecting and acquiring members of the project team and creating the project
environment.
Team Performance The project team has a direct influence on the outcome of the project. Therefore, it is
important the team's performance be of the utmost concern to the project manager. Two Types of teams:
Workgroup and real teams
Work Groups - The work group is based on the traditional approach where a single leader is in control,
makes most of the decisions, delegates to subordinates, and monitors the progress of the assigned tasks.
Therefore, the performance of a work group depends greatly on the leader. A work group can also include
members who interact to share information, best practices, or ideas.
Real Teams In cases where several individuals must produce a joint work product, teams are a better idea.
A real team is defined as a small number of people with complimentary skills who are committed to a
common purpose, performance goals, and approach for which they hold themselves mutually accountable.
 Complemental skills
 Problem-solving or decision-making skills
 Interpersonal skills-that is, people skills
 Commitment to a common purpose and performance goals
 Commitment to a common approach
 Mutual accountability
LEARNING CYCLES AND LESSONS LEARNED

Project team members must learn from each other and from other
project team experiences if they are to provide a solution that gets to
the root of the problem and not just a symptom. It is important that a
team not accept the problem or challenge as it is originally presented
to them. Following a learning cycle, the team follows four phases:
1. Understand and frame the problem
2. Plan
3. Pct
4. Reflect and learn.
The conclusion of a learning cycle and the beginning of the next is
marked by the documentation of lessons learned. Instead of developing a solution prematurely, the project
team is to encourage open humility by acknowledging that it does not have all the answers, especially at
the beginning of a project. Therefore, the project team is encouraged to discuss and separate facts from
assumptions or opinions. The team then creates an action plan to research questions and test assumptions.
When the team meets, the members reflect on and learn from the information collected and are then
documented as lessons learned. A team's learning can be assessed using three dimensions: (1) speed or the
number of learning cycles, (2) depth or the degree to which the team deepened its understanding of the
project, and (3) breadth or the impact of the team's proposed solution on the organization. Although the
project manager is responsible for overseeing many project activities, it is his or her responsibility to
ensure that the project team has an adequate work environment. A suitable workspace and the technology
to support the team are necessary. In addition, each project should define its own culture. It is helpful to
have the team develop a team charter that outlines the roles, values, expectations, and methods for
resolving conflict in order to set proper expectations.

Dr. J. Hannah Monisha, Department of Computer Science Page 4

 IT Project Management Unit -II

CHAPTER 5
DEFINING AND MANAGING PROJECT SCOPE
Define Project Scope
A project's scope can be defined as the boundary and deliverables that the project
team will provide to the project sponsor.
What is a scope boundary?
A scope boundary acts as a fence to ensure that what needs to get done, gets
done-and only what needs to get done, gets done. Performing work that does not
help the project achieve its MOV needlessly consumes valuable time and
resources. Therefore, the project's boundary helps the project team define the
limits of the project and how it will interact with its environment.
SCOPE MANAGEMENT PROCESS (10 MARKS)
The Project Management Body of Knowledge identifies five processes that make up the scope
management process group. These processes include: (1) Scope Initiation, (2) Scope Planning, (3) Scope
Definition, (4) Scope Verification, and (5) Scope Change Control.
1. SCOPE INITIATION
Scope initiation provides a beginning process that formally authorizes the project manager and team to
develop the scope management plan. In terms of the IT project methodology, this authorization is given
after the project is formally accepted and funds are committed to developing the project charter and plan
by the project sponsor or client.
2. SCOPE PLANNING
Scope planning is a process for defining and documenting the project work. More specifically, a project's
scope defines all the work, activities, and deliverables that the project team must provide in order for the
project to achieve its MOV. It is an important step in developing the project plan since one must know
what work must be done before an estimate can be made on how long it will take and how much it will
cost. Scope boundary is defined in this stage. A project's scope, however, should also be defined in terms
of the deliverables that the team must provide.
3. SCOPE DEFINITION
The deliverables can be divided into project-oriented deliverables and product-oriented deliverables.
Project-Oriented Deliverables
1.Delivery Definition Table (DDT) - One way to communicate the project's deliverables is to create a
deliverable definition table. The purpose of the DDT is to define all of the project-oriented deliverables to
be provided by the project team. Each deliverable should have a clear purpose. For example, a deliverable
could be a document (paper or electronic), prototype, presentation, or the application system itself. Eg:

2.Deliverable structure chart (DSC) can be developed as an interim step to define detailed work packages
that will be used to estimate the project schedule and budget. Deliverable at each stage are given

Dr. J. Hannah Monisha, Department of Computer Science Page 5

 IT Project Management Unit -II

Work Breakdown Structure - WBS is a tool used to help create the project plplan
an based on DDT and DSC.
Product-Oriented Deliverables
Product scope therefore focuses on identifying the features and functionality of the information system to
be implemented.
1.Data Flow Diagram(DFD) - A DFD is a process
model that has been available for quite some time and
is often taught in systems analysis and design courses.
A context level DFD, however, presents a high high-level
representation of the system that has one process (i.e.,
a circle or rounded rectangle that represents the system
as a whole)) and depicts all the inflows and outflows of
data and information between the system and its
external entities. The external entities are usually
represented by a square and can be people, departments, or other systems that provide or receive flows of
data.
a. Arrows represent the directional flow of data between external entities and the system. Each arrow
and entity should be labeled appropriately. Lower level DFDs can be developed later to model the
processes and flows of data in greater detail.
2. The usee case diagram is a relatively simple diagram in terms of symbols
and syntax, but it is a powerful tool for identifying the main functions or
features of the system and the different users or external systems that
interact with the system. At this early ststage of the project, the use case can
provide a high level diagram that can be further refined and detailed during
requirements analysis later in the project.
4. SCOPE VERIFICATION
Project scope verification is the scope management process that provides a
mechanism for ensuring that the project deliverables are completed
according to the standards described in the DDT. They include 1. MOV 2.
Deliverables 3.Quality standards 4.Milestones 5.Review and acceptance
5. SCOPE CHANGE CONTROL S Scope change control is concerned
ncerned with ensuring that any changes to
the project scope will be beneficial, with determining that an actual scope change has occurred, and
with managing the actual changes when and as they occur. Scope control is also concerned with:
 Scope grope- It is a common occurrence in the early stages of the project. ct. Often the project team
struggles to define what the project is all about and what work must be done.
 Scope creep, on the other hand, is a common occurrence in many projects. It entails adding
additional features or functions to the scope once the scope has been set and approved. This
phenomenon can increase
ncrease the schedule and budget causing the project to miss its deadline and
budget targets.
 Scope creep can be managed by (1) verifying that the scope cope is accurate and complete by using a
scope verification checklist, and (2) ensuring that appropriate scope changes are approved and
reflected in the baseline plan by having scope change procedures.
 Scope
cope leap entails a major and fundamental change to the project scope. It may be the result of a
changing business environment or the competitive makeup of the industry. stry. Such a radical
departure from the original business case may require the project stakeholders to rethink the
viability of the current project.
ect.

Dr. J. Hannah Monisha, Department of Computer Science Page 6