8/22/2024

Chapter 2
Project
Management
Organization
Structures &
Project Manager

KẾT CẤU
I. PROJECT
01 MANAGEMENT
ORGANIZATION
STRUCTURES

02 II. PROJECT MANAGER

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I. PROJECT MANAGEMENT
ORGANIZATION STRUCTURES

PROJECT MANAGEMENT
ORGANIZATION STRUCTURES
Three main types organization structures used in
projects:
1. Functional project organization
2. Pure project organization
3. Matrix project organization

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1. FUNCTIONAL PROJECT ORGANIZATION

Definition: In a functional organization participants are grouped
into so-called departments, each of which addresses a function.
 Examples of departments:
 Traditional businesses: Research, development, production,
sales, finance.
 Key properties:
 Projects are usually pipelined through the departments of a
functional organization. The project starts in research, then it
moves to development, then it moves to production, ….
 Only a few participants are involved in the complete project.
 Separate departments often address the same cross-functional
needs 5

Functional Project Organization

General Manager
Project
Coordination
Functional Functional Functional
Manager Manager Manager
Worker Worker Worker
Worker Worker Worker
Worker Worker Worker
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FUNCTIONAL PROJECT ORGANIZATION

Key Characteristics
▪ Project teams formed within the functional units.
▪ Nobody responsible for the entire project.
▪ Leadership occurs within functional units
(expertise centers).

• Leadership belongs to technical experts.

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FUNCTIONAL PROJECT ORGANIZATION

Characteristics of projects suitable for this organization
structure:
▪ Solution of technical problems is important.
▪ Integration of different functional units’ work is not
necessary.
▪ Stable environment.
▪ Success depends on application of narrow technical
know-how.
▪ Usually one functional unit is dominant (due to
technical reasons).
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ADVANTAGES OF FUNCTIONAL
ORGANIZATIONAL FORM

• Maximum flexibility in the use of staff. experts can be

temporarily assigned to the project, make their required
contributions & immediately be reassigned to their normal
duties.
• Individual experts can be utilized by many different projects.
• Specialists can be grouped to share knowledge & experience.
• Functional division also serves as a base of technological
continuity.

DISADVANTAGES
• Client is not the focus of the activity & concern.
• Functional Division tends to be oriented toward the activities
particular to its function.
• In this form no individual is given full authority.
• Lack of coordinated efforts.
• Motivation of people assigned to the project is tend to be weak.
• This organizational arrangement does not facilitate holistic
approach to the project.
M. Adeel Anjum 10

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2. PURE PROJECT ORGANIZATION

Project Coordination General Manager

Project Project Human

Manager Manager Resources

Worker Worker Marketing

Worker Worker Finance
Worker Worker Legal
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PURE PROJECT ORGANIZATION

Characteristics
❖Project requiring major changes.
❖Hence, a small, self-sufficient and full-time team is
set up.
❖The team leader is like an entrepreneur.
❖Leader has full responsibility over the project.

❖Functional units are stable, provide support to project

teams.
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ADVANTAGES
• Project Manager has full authority over the project.
• All members of project’s work force are directly responsible
to PM.
• Shortened line of communication.
• Motivation of workforce is high.
• Centralized authority & swift decision making.
• Pure Project structure is simple & flexible.
• It supports holistic approach. 13

DISADVANTAGES
1. When the parent organization takes on several projects, it is
common for each on to be fully staffed.
2. In fact, the needs to ensure access to technical knowledge and
skills result in an attempt by the Pm to stockpile equipment and
technical assistance in order to certain that it will be available
when needed.
3. Though individuals Engaged with project develop considerable
depth in the technology of the project, they tend to fall behind
in other areas of their technical expertise
4. Pure project group seems to foster inconsistency in the way in
which policies and procedures are carried out.
5. In pure project organizations, the project takes on a life of its
own.

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3.THE MATRIX ORGANIZATION

• Matrix organizational structure is the combination

of “Functional & Pure Project” organizational
forms.

• It combines the advantages & disadvantages of

both.
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3. MATRIX PROJECT ORGANIZATION

Characteristics of projects suitable for this organization structure :
• Two Bosses: In a matrix organizational structure, the subordinates have to report
to two superiors, one is the functional manager, and the other is the PM.
• Resource Allocation: The aim of opting for a matrix structure is to ensure the
highest possible utilization of human resource.
• Multi-project Suitability: When a company has limited personnel and various
projects to handle at once, it can go for a matrix organizational structure to
simplify the task.
• Task Specialization: When the managers concentrate more on their part of
operations, they tend to specialize in particular areas. When the project manager
takes care of the administrative functions, the functional manager looks after the
technical elements.
• Hybrid Structure: It is the amalgamation of the two organizational structures,
i.e., the functional and the project. 16

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Matrix Organization

M. Adeel Anjum 17

ADVANTAGES OF MATRIX
• The project is the point of emphasis the PM, takes responsibility for
managing the project.
• Because the project organization is overlaid on the functional divisions,
temporarily drawing labor and talent from them, the project has
reasonable access to the entire reservoir of technology in all functional
divisions.
• There is less anxiety about what happens when the project is completed
than is typical of the pure project organization.
• Response to clients needs is as rapid as in the pure project case, and the
matrix organization is just flexible.

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DISADVANTAGES OF MATRIX
• In the case of functionally organized projects, there is no doubt
that the functional division is the focus of decision- making power
in the pure project case, it is clear that the PM is the power center
of the project. With matrix organizations, the power is more
balanced. Often, the balance is fairly delicate.
• For strong matrices, problems associated with shutting down a
project are almost as severe as those in pure project organizations.
• In matrix-organized projects, the PM controls administrative
decisions and the functional heads control technological decisions.
• Matrix management violates the management principle of unity of
command.

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MATRIX PROJECT ORGANIZATION

Matrix structures differ according to the “weight”

of the project manager (relative to functional
managers) :
1) “Lightweight”
(2) “Middleweight” - the traditional one
(3) “Heavyweight”

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LİGHTWEİGHT MATRİX PROJECT

ORGANİZATİON
General Manager

Functional Functional Functional

Manager Manager Manager
Worker Worker Worker
Worker Worker Worker
Worker Worker Worker
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LİGHTWEİGHT MATRİX PROJECT ORGANİZATİON

In lightweight structures ...
A weak matrix organizational structure maintains many of the features of
the functional organizational structure. The role of the Project Manager is
more that of a Project Coordinator. Their ability to make or enforce
decisions is low and most of the authority remains with the Functional
Manager.
– Representatives from each functional unit, perform coordination and
support.
– Functional managers have real power. They provide functional input.
– Project coordinator
• Is responsible for the coordination/intergration of inputs from
different functional units.
• Does not have direct authority over the workers.
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MA TRẬN CÂN BẰNG

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BALANCED MATRIX PROJECT STRUCTURE

• In this type of structure, proper coordination exists between the

functional manager and the project manager.

• A balanced matrix organizational structure recognizes the need

for a Project Manager. However, the Project Manager does not
have full authority over the project, project staff or project budget.

• The authority and power are evenly allocated to both of them.

Both of them equally participates in the decisions associated with
the allocation of the budget and additional resources
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MA TRẬN MẠNH

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HEAVYWEIGHT MATRIX PROJECT

STRUCTURE
In heavyweight structures ...
– Integration is very important and is the key responsibility of the
project leader.
– Objective is to provide a perfect system solution, not technical
excellence within a narrow functional area.
– Project leader works with a core team of functional leaders. They
have power to get things done within their units.
• In a strong matrix organization, the project manager holds the
supreme authority of decision-making in terms of the budget and
other resources of the particular project. However, the functional
manager does not much control over the project-related decisions.27

ADVANTAGES OF MATRIX ORGANIZATIONAL

STRUCTURE Enhances FormalLateral Communication: The
matrix structure promotes progressive interaction among
the individuals at the same corporate level.
Exchange of Information: A vertical and horizontal
interaction provides for a streamlined flow of the
constructive ideas in the organization.
Higher Motivation: It also boosts the morale of the
employees as they are free to share their ideas and
knowledge.
Resource Sharing: It ensures efficient human resource
management by adequately allocating managerial
responsibilities.
Builds Cooperation: The interpersonal relations
improve when there is a matrix form of communication
in the organization. Thus, employees also learn to
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cooperate.

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Higher Ambiguity or Confusion: The team members may not be

apparent on whom to report, whose orders to follow, and who will
provide them guidance.
Increases Workload and Accountability: When the managers are
overburdened with responsibilities, the employees have to bear with a
higher amount of accountability, i.e., being answerable to both the
managers.
Coordination Issue: The conflicts and misunderstanding between the
functional manager and the project manager can result in their poor
coordination.
Overlooks Functional Responsibilities: In most of the matrix
organizations, the project manager overtakes the charge of handling the
team, thus underestimating the functional roles or responsibilities of the
employees.
Provokes Workplace Politics and Conflicts: In a matrix structure, as
we know that there are two bosses. If anyone of them turns out to be
dominant, there will be a negative work environment full of conflicts.
Delay in Decision-making: When there are two managers involved in
decision-making, it is undeniable that they may not agree on each others
opinion, delaying the decision-making process.
Bureaucracy and Complexity: It is a complicated network where each
employee needs to report and follow the orders of two bosses.
Expensive: The organization has to employ more managers than
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required, ultimately increasing the managerial salary overheads.

MÔ HINH TO CHUC QLDA VN

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MO HINH TO CHUC
DU AN XAY DUNG

DETERMINING THE BEST PROJECT ORGANIZATION

FORM
▪ The project‘s size
▪ The project‘s strategic importance
▪ The project‘s innovation requirement
▪ The project‘s level of required integration across functional delineations
▪ The project environment‘s complexity
▪ The project budget and time constraints
▪ The project resource requirement level of stability
In general – the higher the level of these factors, the greater is the requirement of
autonomy and authority for the project manager and his/her team in order to ensure
the success of the project (i.e. a strong project matrix or dedicated project team is
desirable).

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Empirical Findings: Effectiveness of Project Organization Forms

Empirical research suggests that the „Project Matrix“ and „Project-Based Organization“ modes are
the most effective means of undertaking projects

Very
Effective

Effective

Ineffective
Construction
Very New Product
Ineffective

Functional Functional Balanced Project Project

Organization Matrix Matrix Matrix Organizaton
Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., 2003, p. 71

EVALUATING MATRIX ORGANIZATION

Strengths Weaknesses
•Single point accountability •Manager skill level
•Customer interface clear high
•Rapid reaction •Competition for
•Duplication reduced resources
•Technology development •Employee recognition
•Career development •Management
•Disbanded easily cooperation required
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PROJECT

II. PROJECT MANAGER

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1. ROLE, RESPONSIBILITIES, DUTIES AND

ATTRIBUTES OF A PROJECT MANAGER

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WHAT IS A PROJECT MANAGER?

Project managers play the lead role in planning,

executing, monitoring, controlling and closing projects.
They are accountable for the entire project scope, project
team, resources, and the success or failure of the project.

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KEY ROLES IN ORGANIZATIONS

• Project Manager: The person ultimately responsible for the
successful completion of the project
• Project Team Member: Participants who are responsible for
performing individual activities and tasks (in a project or matrix
organization)
• Functional Manager: The team member‘s supervisor in the
department (in a functional organization)
• Upper management: People in charge of the departments or
projects
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ROLE OF A PROJECT MANAGER

• The role of a project manager is affected by the one-
shot nature of the project
• The role of a project manager is difficult when team
members are still linked to their permanent work
areas
– Members may be assigned to several projects
simultaneously
• Managers must rely on their communication skills
and powers of persuasion
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RESPONSIBILITIES OF THE PROJECT MANAGER

• Determine objectives, schedule and resource budgets
• Design a software project management plan (SPMP)
• Create and sustain focused and motivated teams
• Determine the team‘s work procedures, reporting systems and
communication infrastructure.
• Accomplish project objective within time and budget
• Monitor performance against the plan
• Resolve technical conflicts and interpersonal conflicts
• Control changes in the project
• Report on project activities to upper management
• Keep the client informed and committed
• Contribute to the team members performance approval
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PROJECT MANAGER DUTIES

• Reports to senior management
• Communicates with users
• Plans and schedules
• Obtains and allocates resources
• Controls risks
• Manages people
• Coordinates
• Implements quality assurance
• Controls the budget
• Delivers results
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PROJECT MANAGER ATTRIBUTES

• Leader & manager • Knowledgeable about the
• Facilitator, coordinator organization
• Communicator • Political sensitivity
• Credibility: Technical/ • Conflict: sense, confront,
Administrative resolve
• Work under pressure • Can deal with stress, chaos,
• Goal-oriented ambiguity
• Innovator • Planning and follow-through
• Versatilist
• Ethical dilemmas
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SUGGESTED SKILLS FOR PROJECT

MANAGERS
•Project managers need a wide variety of skills.
•They should:

–Be comfortable with change.

–Understand the organizations they work in and
with.
–Lead teams to accomplish project goals.

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SUGGESTED SKILLS FOR PROJECT

MANAGERS
Project managers need both “hard” and “soft”
skills.
– Hard skills include product knowledge and
knowing how to use various project
management tools and techniques.
– Soft skills include being able to work with
various types of people.
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SUGGESTED SKILLS FOR PROJECT

MANAGERS
• Communication skills: Listens, persuades.
• Organizational skills: Plans, sets goals, analyzes.
• Team-building skills: Shows empathy, motivates, promotes
esprit de corps.
• Leadership skills: Sets examples, provides vision (big picture),
delegates, positive, energetic.
• Coping skills: Flexible, creative, patient, persistent.
• Technology skills: Experience, project knowledge.

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GOOD PROJECT MANAGEMENT SKILLS FROM

THE APPRENTICE

• Leadership and • Be a team player.

professionalism are crucial. • Stay organized and don’t be
• Know what your sponsor overly emotional.
expects from the project, and • Work on projects and for
learn from your mistakes. people you believe in.
• Trust your team and delegate • Think outside the box.
decisions.
• There is some luck involved in
• Know the business. project management, and you
• Stand up for yourself. should always aim high.
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CAC KY NANG QLDA

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CÁC CHỨC NĂNG CỦA CÁC NHÀ QUẢN LÝ DỰ

ÁN
• Chức năng hoạch định

• Chức năng tổ chức

• Chức năng lãnh đạo

• Chức năng kiểm soát

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CHỨC NĂNG CỦA NHÀ QUẢN LÝ DỰ ÁN

quyết định cái gì cần
làm, mục tiêu và công
Lập kế cụ thực hiện trong phạm
hoạch dự
linh hoạt án vi giới hạn về nguồn lực
thích ứng Tổ chức
quyết định công
Thích thực
với môi ứng Chứcnăng hiện dự việc được thực
trường cơ bản cần
có của nhà
án hiện như thế nào
QLDA
chỉ đạo và hướng dẫn,
Kiểm Chỉ
đạo uỷ quyền, khuyến
kiểm tra giám sát tra
giám hướng khích động viên, phối
sản phẩm dự án, sát dẫn hợp mọi thành viên
chất lượng, kỹ trong nhóm
thuật, ngân sách và
tiến độ thời gian

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CHỨC NĂNG HOẠCH ĐỊNH

> Xác định cái gì cần phải làm ?

- Xác định mục tiêu

- Định phương hướng chiến lược
- Hình thành công cụ để đạt đến mục tiêu trong giới hạn
về nguồn lực và phải phù hợp với môi trường hoạt
động.

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CÁC CHỨC NĂNG CHỦ YẾU CỦA QUẢN TRỊ DỰ

ÁN
• Điều phối (coordinate): phối hợp hoạt động giữa các
cá nhân và đơn vị để đảm bảo hiệu quả hoạt động
theo mục tiêu đã định.
• Kiểm soát (control): đánh giá và điều chỉnh các hoạt
động đẻ đảm bảo các hoạt động được tiến hành theo
đúng kế hoạch.
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CHỨC NĂNG TỔ CHỨC

--> Quyết định công việc được tiến hành như
thế nào ?
---> Là cách thức huy động và sắp xếp các
nguồn lực một cách hợp lý để thực hiện kế
hoạch
- Làm việc gì ?
- Ai làm ?
- Phối hợp công việc ra sao ?
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CHỨC NĂNG LÃNH ĐẠO

• -Động viên, hướng dẫn phối hợp nhân viên.

- Chọn lựa một kênh thông tin hiệu quả.

Xử lý các mâu thuẫn trong tổ chức.
---> Nhằm đạt được các mục tiêu đã đề ra của tổ
chức.

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CHỨC NĂNG KIỂM SOÁT

• Nhằm đảm bảo các hoạt động được thực hiện

theo kế hoạch và hướng đến mục tiêu.

• Kiểm soát = Giám sát + So sánh + Sửa sai.

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2. PROJECT TEAMS

FORMING A (DEDICATED) PROJECT TEAM

Corporation X

Human Finance &

Resources Administration Other
Areas
Marketing Engineering Manufacturing Procurement

Project Manager
MA1 MA2 MA3 EN1 EN2 EN3 MF1 MF2 MF3 PR1 PR2

Staff are assigned away from various departments to work full-time on the
project. Project Team

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PROJECT TEAMS

•Diversity of knowledge needed

•Cross-functional
•Self-directed
•Often temporary
•Often distributed (geographically)
•Start and end dates
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PROJECT PERSONNEL SKILLS

•Technical
•Political
•Problem-oriented
–(vs. discipline-oriented)
•Goal-oriented
•Flexibility, adaptability
•High self-esteem
–can handle failure, risk, uncertainty, unexpected
–can share blame and credit
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GENERAL RESPONSIBILITIES OF TEAM MEMBERS

•Technical responsibilities:
–Perform assigned tasks within time and budget
–Acquire technical skills and knowledge needed to
perform the work

People responsibilities
 Identify situations and problems that might affect your
team members‘s tasks
 Keep your team members informed of your progress and
problems you encounter
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OTHER TEAM MEMBER ROLES

•Project Management •Development
–Coach –Analyst
–Team leader –Designer (Software Architect)
–Planner –Programmer
•Meeting Management –Tester
–Minute Taker –Maintainer
–Scribe –Trainer
–Primary facilitator –Document Editor
–Web Master
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RESPONSIBILITIES OF THE COACH

• Listen to gripes from individual team members

• Attend weekly project meetings
• Review weekly team status reports
• Schedule and prepare meetings with project manager
• Insist that project guidelines are followed
• review, client acceptance test)
• Resolve team member conflicts if they cannot be
resolved otherwise
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RESPONSIBILITIES OF THE TEAM LEADER

– Run the weekly project meeting
– Post the agenda before the meeting
– Define and keep track of action items assigned
to team members (who, what, when)
– Measure progress (Enforce milestones)
– Deliver work packages for the tasks to the
project manager
– Present team status to project manager

• Heuristics: The team leader should to be rotated

among members of the team.
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Team Leader: Create an Agenda

• Purpose of Meeting
• Desired Outcome
• Information Sharing
• Information Processing
• Meeting Critique
Action Items
(Check Previous
Meeting)

Issues
(Check Previous
Meeting & BBoards)
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RESPONSIBILITIES OF THE PLANNER

• Plans the activities of an individual team
• Define project plan for team:
– Work Breakdown Structure
– Dependency graph and schedule showing work packages
• Make project plan available to management
• Report team project status to team leader
No explicit planner in many teams. Responsibility usually
assumed by team leaders or project manager

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RESPONSIBILITIES OF THE DOCUMENT

EDITOR

• Collect, proofread and distribute team

documentation
• Submit team documentation to
documentation team
• Collect agendas
• Take minutes at meetings
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RESPONSIBILITIES OF THE WEB MASTER

• Maintain team home page

• Keep track of meeting history

• Keep track of design rationale

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WEB MASTER
•Publish Meeting Information on Team Homepage
–Should contain agenda, minutes, action items and issues
–Possibilities:
•One HTML document per meeting, with anchors (maintained by one role)
•Separate HTML documents for Agenda, Minutes, etc (maintained by several
roles)

Date Agenda Minutes Action Items Issues

9/9/96 Agenda Minutes Action Items Issues

9/16/96 Agenda Minutes Action Items Issues

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ASSIGNING RESPONSIBILITIES TO PEOPLE

Project To Do List
(from your project template)
Role 1
Item 1 Person A
• Item 1
• Item 2 Item 2
Item 9 Role 1
• Item 3
Role 2
• Item 4 Role 2
Item 4
• Item 5
Item 5
• Item 6 Item 7
• Item 7 Person B
• Item 8 Role 3
• Item 9
Item 3 Role 3
Item 6
Item 8

Bindings made During Bindings made during

Project-Initiation Phase Hiring, Initial Planning phase
(First team meeting, etc …) 71

PROMOTER ROLES
• Promoter are self appointed individuals who identify themselves
with the outcome of the project.
– They are member of the corporate organization and may not
necessarily be directly involved with the project.
– Instead, they are the interface to the rest of the corporate
organization.
• Because of their power, knowledge of technology, or familiarity
with the project’s processes, they are able to promote and push
specific changes through an existing organization which are
needed to make the project a success.
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RELATIONSHIPS BETWEEN ROLES

• Organizations can have many different types of

associations between roles
• The three most important associations for project
organizations are: Reporting, decision making and
communicating
• Reporting association:
– Used for reporting status information
• Decision association
– Used for propagating decisions
• Communication association
– Used for exchanging information needed for
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decisions (e.g., requirements, design models, issues).
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THE PROJECT TEAM - ADVANTAGES

Project completion time is comparatively smaller due to

project personell devoting their efforts to the project in
question full-time and also because the flow of
information and decision-making is generally not
hindered by hierachies as it is in the functional form of
organizing projects.

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THE PROJECT TEAM - ADVANTAGES

Motivation, feeling of iden-tification and

cohesiveness are strong in the project.

Project personell share a common goal and

they also share a collective responsibility
for ensuring the realization of this goal.

THE PROJECT TEAM - ADVANTAGES

Cross-functional cooperation is
strongly encouraged and promoted as a
means of achieving the project goal.

Cross-functional teams create a

synergy effect which can handle tasks
characterised by a high degree of
complexity.

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THE PROJECT TEAM - DISADVANTAGES

A major criticism of the (dedicated) project team relates

to the cost factor.
Normally, a larger expense is involved because
resources and facilities are assigned to the project on a
full-time basis. Across projects, this may result in a
duplication of infrastructure and work.

THE PROJECT TEAM - DISADVANTAGES

Projectitis – project personell evolve a collective

identity encapsulating themselves from the enterprise,
giving rise to a non-constructive „us“and
„them“outlook. Sometimes this not only undermines
the integration of the project effort back into
mainstream operations but also the subsequent
assimilation of project personell back into their
respective functional areas.

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THE PROJECT TEAM - DISADVANTAGES

The project may become over-dependent on the

gamut of skills, expertise and experience held by the
project personell and may not seek to incorporate
fresh skills, expertise and experience which is held by
individuals and organiza-tional entities which are
outside the project.

THE PROJECT TEAM - DISADVANTAGES

The assimilation of project personell back into

their respective functional units may prove
difficult due to their prolonged absence from their
units and the challenge of keeping up with the
developments which have taken place in the
functional units during the project period.

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HIERARCHICAL
ORGANIZATION

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HIERARCHICAL ORGANIZATION

• Often also called centralized organization. Examples:

Military, church, traditional businesses.
• Key property: The organization has a tree structure.
Decisions are made at the root and communicated to the
leaf nodes. The decision association is also used for
reporting and communication.
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HIERARCHICAL ORGANIZATION
Advantages:
– Centralized control over project selection
– One set of management and reporting procedures for
all project participants across all projects
– Established working relationships among people
– Clearly established lines of authority to set priorities
and resolved conflicts

– Authority to pressure people to honor their action

items
– Clearly defined career path
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HIERARCHICAL PROJECT ORGANIZATION

Information Flow
Control Flow
Chief Executive

First Level Manager

(“Front-Line Manager”)
A B Project Members
A wants to talk to B: Complicated Information Flow
B wants to make sure A does a certain change: Complicated Controlflow

Basis of organization:
Complicated information and control flow
across hierarchical boundaries 85

EXAMPLE OF A HIERARCHICAL ORGANIZATION:

Chief Programmer

Assistant
Chief Programmer

Senior Programmer Librarian Administration Tester

Junior Programmer

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Hierarchical team organization

Large projects often distinguish levels of management:

–Leaf nodes is where most development gets done; rest of tree is management
–Different levels do different kinds of work—a good programmer may not be a good manager
–Status and rewards depend on your level in the organization
–Works well when projects have high degree of certainty, stability and repetition
–But tends to produce overly positive reports on project progress, e.g.:
•Bottom level: “We are having severe trouble implementing module X.”
•Level 1: “There are some problems with module X.”
•Level 2: “Progress is steady; I do not foresee any real problems.”
•Top: “Everything is proceeding according to our plan.”

CHIEF PROGRAMMER TEAM

•What do the graphics imply about this team structure?

•Chief programmer makes all important decisions
–Must be an expert analyst and architect, and a strong leader
•Assistant Chief Programmer can stand in for chief, if needed
•Librarian takes care of administration and documentation
•Additional developers have specialized roles
•Pros and cons of this team structure? Will you use this organization?

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DISADVANTAGES OF HIERARCHICAL ORGANIZATIONS

•Slow response time
❖ The process of evaluating and approving change requests often takes too
long because of long reporting/decision lines.
•Difficult to manage the workload of the people:
❖ People are assigned fulltime to the organization, but projects don’t’ come in
a smooth stream.
❖ Project request might not require the people who are available or their
expertise
•Unfamiliarity with application
–People are usually hired for their technical proficiency in a specialty that the
organization normally performs.
–They often have only limited experience, if the problem to be solved is
outside of their field of expertise.
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NONHIERARCHICAL ORGANIZATIONS

Key property: The organization has a general graph

structure with different edges for the decision,
reporting and communication flows. Decisions can be
made at various nodes in the graph.

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NONHIERARCHICAL PROJECT ORGANIZATION

Project
Leader

Coaches

Subsystem Team Subsystem Team Subsystem Team

A B Team
Members

A wants to talk to B: Communication Flow

B wants to make sure A does a certain change: Decision Flow

Basis of organization:
Nonlinear information flow across dynamically formed units
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A NONHIERARCHICAL ORGANIZATION

Analyst

Tester Programmer

Designer Librarian

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Observations on Organizational Structures

•Hierarchical structure
–“Reports”, “Decides” and “Communicates-With” all mapped on
the same association
–Does not work well with iterative and incremental software
development process
–Manager is not necessarily always right
•Project-based structures
–“Reports”, “Decides” and “Communicates-With”are different
associations
–Cuts down on bureaucracy
–Reduces development time
–Decisions are expected to be made at each level
–Hard to manage 93

Thank you

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