Preview Extract
Chapter 3 Organization: Structure and Culture Chapter Outline 1. Project Management Structures A. Organizing Projects within the Functional Organization B. Organizing Projects as Dedicated Teams C. Organizing Projects within a Matrix Arrangement D. Different Matrix Forms 2. What Is the Right Project Management Structure? A. Organization Considerations B. Project Considerations 3. Organizational Culture A. What Is Organizational Culture? B. Identifying Cultural Characteristics 4. Implication of Organizational Culture for Organizing Projects 5. Summary 6. Key Terms 7. Review Questions 8. Exercises 9. Case 3.1: Moss and McAdams Accounting Firm 10. Case 3.2: Horizon Consulting Chapter Learning Objectives After reading this chapter you should be able to: LO 3-1 Identify different project management structures and understand their strengths and weaknesses. LO 3-2 Distinguish three different types of matrix structures and understand their strengths and weaknesses. LO 3-3 Understand organizational and project considerations that should be considered in choosing an appropriate project management structures. LO 3-4 Appreciate the significance that organizational culture plays in managing projects. LO 3-5 Interpret the culture of an organization. LO 3-6 Understand the interaction between project management structure and the culture of an organization. Review Questions 1. What are the relative advantages and disadvantages of the functional, matrix, and dedicated team approaches to managing projects? The advantages of the functional approach include: No radical alteration in basic structure of the parent organization Maximum flexibility in use of staff within functional units In-depth expertise can be brought to bear on specific components of the project Normal career paths can be maintained. The advantages of the matrix approach include: Flexible utilization of resources across projects and functional duties Project focus is provided by having a designated project manager Specialists maintain ties with their functional group Balances project prerogatives with technical requirements. The advantages of the dedicated team approach include: Does not disrupt the basic structure of the parent organization Concentrated project focus Projects tend to get done quickly Strong cross-functional integration. The weaknesses of the functional approach include: Lack of project focus Poor cross-functional integration Slow Lack of project ownership. The weaknesses of the matrix approach include: Decision making can be bogged down as agreements have to be negotiated between project managers and functional managers Stress induced by multiple superiors. The weaknesses of the dedicated project team include: Dilemma of what to do with people once the project is over Technical expertise limited to the people on the team We/they attitude emerges between project team and rest of organization which inhibits integration of project with mainstream operations Expensive – creation of project management role and duplication of services across projects. Suggestion Begin the discussion by identifying the strengths and weaknesses of the functional organization. Record responses on the left side of a large whiteboard. Next identify the strengths and weaknesses of the dedicated team approach on the right side of the whiteboard. In the middle record the strengths and weaknesses of the matrix organization. Use this framework to discuss the relative merits of different kinds of matrix organizations. 2. What distinguishes a weak matrix from a strong matrix? The most distinguishing characteristic between a weak and strong matrix is the relative influence the project manager has over project participants and functional managers. In a weak matrix the project manager role is limited to coordinating project activities. The functional managers are responsible for managing their segment of the project. The project manager has little formal authority over the project. In a strong matrix, the project manager controls most aspects of the project including design trade-offs and assignment of project personnel. The functional managers are responsible for supporting project completion. A project manager in the weak matrix is not likely to be involved in performance appraisals and compensation decisions while project managers in a strong matrix would. 3. Under what conditions would it be advisable to use a strong matrix instead of a dedicated project team? Both structures can be quite effective. The strong matrix would be recommended when the organization cannot afford to have people work full-time on the project and when the culture of the organization supports the dual authority structure. Dedicated project teams are recommended when speed is essential to success and there is not enough project work to warrant a formal matrix structure. Dedicated project teams are also recommended when the prevalent culture within the organization does not support collaboration and innovation. 4. How can project management offices (POs) support effective project management? POs support effective project management by: tracking project progress promulgating best practices providing project management training and consulting services integrating latest advances in field of project management being an organizational advocate. It should be noted that the extent to which a PO performs the above functions will vary from one organization to the next. 5. Why is it important to assess the culture of an organization before deciding what project management structure should be used to complete a project? The culture of the organization can impact the effectiveness of different project management structures. Organizational cultures that do not encourage teamwork, collaboration, and cross-functional integration need a stronger project management structure (i.e., project team, project matrix) to be successful. Conversely, a functional matrix can be effective in an organization in which the culture of the organization is conducive to project management. 6. Other than culture, what other organizational factors should be used to determine which project management structure should be used? The two major considerations are the percentage of core work that involves projects and resource availability. Organizations, whose main business evolves around projects, should consider a projectized form of structure. Organizations that have mainstream operations and projects should use a matrix structure. When resource availability is limited then a matrix structure should be used that allows sharing personnel across projects and operations. 7. What do you believe is more important for successfully completing a project–the formal project management structure or the culture of the parent organization? Both are important and an argument can be made for either structure or culture. The bias of the authors is that culture is more important than structure since it more directly impacts behavior. A positive organizational culture can compensate for the inherent weaknesses of the formal structure. For example, a functional matrix can be effective if the norms and customs of the organization value teamwork and effective problem-solving. Conversely, a functional matrix is likely to be disastrous in a negative culture that encourages competition and looking out only for yourself. Alternatively, one could argue that an organization can circumvent a negative culture by creating an independent project team or a strong project matrix. In either case, the strategy is to insulate the project team from the dominant organizational culture and create a unique project subculture. Exercises 1. Going to college is analogous to working in a matrix environment in that most students take more than one class and must distribute their time across multiple classes. What problems does this situation create for you? How does it affect your performance? How could the system be better managed to make your life less difficult and more productive? Managing multiple classes in college, akin to working in a matrix environment, presents several challenges: 1. Time Management : Balancing the demands of multiple classes can be overwhelming. With different deadlines, assignments, and exams across various subjects, it's challenging to allocate time effectively and prioritize tasks. This can lead to stress, procrastination, and even burnout. 2. Coordination and Communication : Like in a matrix organization where individuals report to multiple managers, students may need to interact with multiple professors, teaching assistants, and classmates for different courses. Coordination and communication between these stakeholders can be challenging, leading to misunderstandings or conflicts. 3. Context Switching : Constantly switching between different subjects requires mental effort to transition between topics and contexts. This can hinder deep learning and concentration, affecting academic performance and retention of knowledge. 4. Resource Allocation : Limited resources such as time, energy, and attention need to be distributed among multiple classes. If not managed efficiently, students may neglect certain subjects or struggle to meet the expectations of all courses. To address these challenges and improve productivity: 1. Integrated Curriculum : Colleges can design curricula that integrate related topics across different courses, reducing redundancy and cognitive load for students. This approach fosters interdisciplinary learning and helps students see connections between different subjects. 2. Unified Scheduling : Implementing a unified scheduling system where classes for related subjects are grouped together can facilitate better time management and reduce context switching. This allows students to focus on similar topics during the same time frame, improving concentration and efficiency. 3. Clear Communication Channels : Establish clear communication channels between students and instructors for each course. Provide centralized platforms for sharing course materials, submitting assignments, and asking questions. This enhances transparency, reduces confusion, and streamlines interactions. 4. Support Services : Offer support services such as academic advising, tutoring, and time management workshops to help students navigate the challenges of managing multiple classes. Providing resources and guidance empowers students to develop effective study habits and organizational skills. By implementing these strategies, colleges can create a more conducive learning environment for students, enabling them to manage multiple classes more effectively, reduce stress, and achieve better academic performance. 2. You work for LL Company, which manufactures high-end optical scopes for hunting rifles. LL Company has been the market leader for the past 20 years and has decided to diversify by applying its technology to develop a top-quality binocular. What kind of project management structure would you recommend they use for this project? What information would you like to have to make this recommendation, and why? For LL Company's venture into developing top-quality binoculars, a robust project management structure is essential to ensure success. Here's a recommendation for the project management structure along with the necessary information to make an informed decision: 1. Project Management Structure: I would recommend adopting a matrix organizational structure for this project. In a matrix structure, there would be a dedicated project manager overseeing the binocular development project, while functional managers would provide expertise and resources from their respective departments (such as engineering, manufacturing, marketing, etc.). Additionally, forming cross-functional teams comprising members from different departments would facilitate collaboration and ensure that all aspects of the project are adequately addressed. This structure allows for efficient resource allocation, clear communication channels, and flexibility in adapting to changing project requirements. 2. Required Information: To make a well-informed recommendation, I would need the following information: a. Project Scope and Objectives: Detailed understanding of the scope of the binocular development project, including its objectives, target market, and key performance indicators (KPIs) for success. b. Resource Availability: Information on the availability of human resources, expertise, and budget allocated for the project. This includes identifying potential team members and their skill sets. c. Technological Requirements: Insight into the specific optical technologies, materials, and manufacturing processes required for developing top-quality binoculars. Understanding any existing intellectual property (IP) or patents related to LL Company's optical scopes that could be leveraged for binocular development would also be crucial. d. Market Analysis: Comprehensive market research to assess the demand for high-end binoculars, identify competitors, understand consumer preferences, and pinpoint potential growth opportunities and challenges in the market. e. Risk Assessment: Identification and analysis of potential risks and uncertainties associated with the project, such as technical challenges, regulatory compliance, supply chain disruptions, or market fluctuations. f. Timeline and Milestones: Establishing a realistic timeline with key milestones and deadlines for different stages of the project, considering factors like product development, testing, regulatory approvals, manufacturing setup, and market launch. g. Communication Plan: Developing a communication plan outlining how information will be shared, meetings conducted, and feedback collected among project stakeholders, including senior management, team members, suppliers, and external partners. By gathering and analyzing this information, LL Company can tailor its project management approach to suit the specific requirements and challenges of developing top-quality binoculars, thereby maximizing the chances of a successful diversification effort. 3. You work for Barbata Electronics. Your R&D people believe they have come up with an affordable technology that will double the capacity of existing MP3 players and uses audio format that is superior to MP3. The project is code named KYSO (Knock Your Socks Off). What kind of project management structure would you recommend they use for the KYSO project? What information would you like to have to make this recommendation and why? For Barbata Electronics' ambitious KYSO (Knock Your Socks Off) project, aiming to introduce a revolutionary technology to enhance the capacity and audio format of MP3 players, a dynamic and agile project management structure would be highly beneficial. Here's a recommendation for the project management structure along with the necessary information to make an informed decision: 1. Project Management Structure: I would recommend adopting an agile project management approach, specifically the Scrum framework, for the KYSO project. Scrum emphasizes flexibility, iterative development, and close collaboration among cross-functional teams, making it well-suited for innovative projects with evolving requirements like KYSO. Within the Scrum framework, the project would be organized into small, self-organizing teams known as Scrum teams, each comprising members with diverse expertise such as R&D specialists, software engineers, hardware engineers, designers, and quality assurance testers. These teams would work in short iterations called sprints, typically lasting 1-4 weeks, to deliver incremental improvements and functionalities. Additionally, a Product Owner would be responsible for prioritizing features and functionalities based on customer feedback and market trends, while a Scrum Master would facilitate the Scrum process, remove impediments, and ensure the team's adherence to Scrum principles and practices. 2. Required Information: To make a well-informed recommendation, I would need the following information: a. Technology Details: Detailed information about the new technology developed by Barbata Electronics, including how it doubles the capacity of existing MP3 players and the specifics of the superior audio format. Understanding the technical aspects and limitations of the technology is crucial for planning and executing the project. b. Market Analysis: Comprehensive market research to assess the demand for enhanced MP3 players, identify competitors, understand consumer preferences, and analyze market trends. This would help in defining the target audience, positioning the product, and developing a competitive edge in the market. c. Resource Availability: Information on the availability of human resources, expertise, and budget allocated for the project. Identifying potential team members with the required skills and experience in audio technology, digital signal processing, software development, and hardware design is essential for forming effective Scrum teams. d. Risk Assessment: Identification and analysis of potential risks and uncertainties associated with the project, such as technological challenges, intellectual property issues, regulatory compliance, and market acceptance. Developing mitigation strategies and contingency plans to address these risks is essential for ensuring project success. e. Stakeholder Engagement: Understanding the expectations and requirements of key stakeholders, including senior management, investors, customers, and end-users. Establishing clear communication channels and mechanisms for gathering feedback and incorporating stakeholder inputs throughout the project lifecycle is critical for alignment and buy-in. By gathering and analyzing this information, Barbata Electronics can tailor its project management approach within the Scrum framework to effectively drive the KYSO project forward, capitalize on the innovative technology, and deliver a groundbreaking product that exceeds customer expectations. 4. This chapter discussed the role of values and beliefs in forming an organization’s culture. The topic of organization culture is big business on the Internet. Many companies use their Web pages to describe their mission, vision, and corporate values and beliefs. There also are many consulting firms that advertise how they help organizations to change their culture. The purpose of this exercise is for you to obtain information pertaining to the organizational culture for two different companies. You can go about this task by very simply searching on the key words “organizational culture” or “corporate vision and values.” This search will identify numerous companies for you to use to answer the following questions. You may want to select companies that you would like to work for in the future. a. What are the espoused values and beliefs of the companies? To find the espoused values and beliefs of two different companies, I'll search for information about their organizational culture, corporate vision, and values. Let's take a look at the information for two companies: Company 1: Google Espoused Values and Beliefs: • Mission Statement: "To organize the world's information and make it universally accessible and useful." • Corporate Values: Google's corporate values include: • Focus on the user and all else will follow. • It's best to do one thing really, really well. • Fast is better than slow. • Democracy on the web works. • You can make money without doing evil. • There's always more information out there. • The need for information crosses all borders. • You can be serious without a suit. • Great just isn't good enough. Company 2: Apple Espoused Values and Beliefs: • Mission Statement: "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad." • Corporate Values: Apple's corporate values include: • Innovation: Apple is committed to innovation in everything they do. • Quality: Apple aims to deliver products of the highest quality that enrich lives. • Design: Apple products are designed to be intuitive and easy to use, while delivering a seamless user experience. • Sustainability: Apple is dedicated to reducing their impact on the environment and addressing climate change. These are the espoused values and beliefs of Google and Apple, two companies known for their strong organizational cultures and commitment to innovation and excellence. b. Use the worksheet in Figure 3.6 to assess the Web page. What does the web page reveal about the culture of this organization? Would this culture be conducive to effective project management? It simulate how you might assess a company's website for its organizational culture. Company: Google Assessment of the Website: • Mission/Vision Statement: • Mission: "To organize the world's information and make it universally accessible and useful." • Vision: Not explicitly stated on the homepage, but implied by the mission. • Corporate Values: 1. Focus on the user and all else will follow. 2. It's best to do one thing really, really well. 3. Fast is better than slow. 4. Democracy on the web works. 5. You can make money without doing evil. 6. There's always more information out there. 7. The need for information crosses all borders. 8. You can be serious without a suit. 9. Great just isn't good enough. Analysis: • Culture Assessment: • Google's culture appears to be innovative, user• focused, fast• paced, and inclusive. • The company promotes a sense of collaboration, openness, and creativity. • Conducive to Effective Project Management: • Yes, Google's culture seems conducive to effective project management. • The emphasis on innovation, user• focus, and collaboration aligns well with effective project management practices. • The fast• paced and dynamic environment may require project managers to be adaptable and responsive to change. Conclusion: Google's organizational culture, as reflected on its website, appears to be conducive to effective project management. The company's values of innovation, user• focus, and collaboration align well with the principles of effective project management. The dynamic and fast• paced environment may present challenges, but it also provides opportunities for project managers to excel and deliver successful outcomes. 5. Use the cultural dimensions listed in Figure 3.5 to assess the culture of your school. Instead of employees, consider students, and instead of management, use faculty. For example, member identity refers to the degree to which students identify with the school as a whole rather than their major or option. Either as individuals or in small groups rate the culture of your school on the 10 dimensions. Responses will vary depending upon the experiences and perspectives of the students. Below is a summary of a most recent discussion at our College. 1. Member identity Job ______________________X__________________________________Organization Students tend to identify with both the University and their major (i.e., I am an OSU management student.) 2. Team emphasis Individual ______X__________________________________________________Group While the initial tendency is to focus on the number of group assignments – when students look at the total educational experience they tend to agree they spend much more time working as individuals than in groups. 3. Management focus Task __________________________X__________________________________People This may reflect our students’ focus on culture. 4. Unit integration Independent ______X__________________________________________ Interdependent Students and majors operate virtually independent of each other. 5. Control Loose ________________________________X____________________________Tight Control is seen as fairly tight with assignments and exams the primary mechanisms for control. 6. Risk tolerance Low ______X________________________________________________________High The grading system appears to cultivate risk avoidance. 7. Reward criteria Performance __________X_____________________________________________ Other Grades are considered the primary award and while most students agree that they are tied to performance they do see favoritism and grade inflation playing a role in allocation. 8. Conflict tolerance Low ______X________________________________________________________High Most students agree that the culture does not encourage conflict especially with professors. 9. Means-ends orientation Means ____________________________X________________________________Ends Despite educational goals most students consider teachers and themselves focusing on results (grades). 10. Open-system focus Internal ________X_________________________________________________External While the university has external focus, most students admit that they find life at a residential college in a small town as rather insular. a. What dimensions were easy to evaluate and which ones were not? Students found control most difficult while conflict tolerance was the easiest. b. How strong is the culture of your school? When the university is considered the school, most students argued that it was not very strong and that there were fairly independent subcultures by college (i.e., Engineering versus Liberal Arts). When they considered the school to be the College of Business, they felt it was fairly strong and uniform. c. What functions does the culture serve for your school? Functions the Culture Serves for the School: 1. Identity and Belonging: • The culture fosters a sense of identity and belonging for students within both the University and their respective majors. 2. Individual Focus: • The culture emphasizes individual work and achievement, with students spending more time working independently rather than in groups. 3. Control and Stability: • The tight control and emphasis on grades serve to maintain stability and ensure academic standards. 4. Risk Avoidance: • The culture cultivates risk avoidance, particularly in the context of the grading system. 5. Conflict Avoidance: • The culture discourages conflict, especially between students and professors. 6. Results Orientation: • There is a strong focus on achieving results, primarily measured by grades. 7. Insular Environment: • The culture contributes to an insular environment, particularly due to the university's location in a small town. d. Do you think the culture of your school is best suited to maximizing your learning? Why or why not? The culture of my school may not be best suited to maximizing learning for several reasons: 1. Individual Focus over Team Emphasis: • The emphasis on individual work over group collaboration may limit opportunities for peer learning and collective problem• solving, which are often beneficial for deeper understanding of course materials. 2. Tight Control and Risk Avoidance: • The tight control and risk• averse nature of the culture may discourage experimentation and exploration, which are essential for innovative thinking and creative problem• solving. 3. Conflict Avoidance: • The culture's discouragement of conflict, especially with professors, may inhibit open discussion and constructive feedback, which are important for intellectual growth and development. 4. Insular Environment: • The insular environment, coupled with the focus on individual achievement, may limit exposure to diverse perspectives and experiences, hindering the development of critical thinking and communication skills. While the culture of my school may provide stability and structure, it may not fully support the dynamic and collaborative learning environment needed to maximize student learning and growth. e. What kind of projects would be easy to implement in your school and what kind of projects would be difficult given the structure and culture of your school? Explain your answer. Easy-to-Implement Projects: 1. Individual Research Projects: • Given the school's emphasis on individual work and tight control, implementing individual research projects would be relatively easy. Students could choose topics aligned with their interests and work independently to conduct research, analyze data, and present their findings. 2. Graded Assignments and Exams: • The school's culture of tight control and focus on grades makes implementing graded assignments and exams straightforward. Assignments and exams could be used to assess students' understanding of course materials and ensure academic standards are maintained. 3. Internship Programs: • Structuring internship programs with external organizations could be relatively easy, as it aligns with the school's open-system focus. These programs would provide students with valuable real-world experience while also meeting academic requirements. Difficult-to-Implement Projects: 1. Group Collaborative Projects: • Implementing group collaborative projects may be challenging due to the school's emphasis on individual work and the independent nature of student majors. The culture may not fully support the collaborative skills and teamwork necessary for successful group projects. 2. Innovative and Experimental Projects: • Implementing innovative and experimental projects may be difficult due to the school's risk-averse culture. The emphasis on tight control and risk avoidance may discourage students and faculty from exploring new ideas and approaches. 3. Conflict Resolution and Negotiation Projects: • Implementing projects focused on conflict resolution and negotiation may be challenging due to the school's culture of conflict avoidance. The discouragement of conflict, especially with professors, may hinder open discussion and constructive feedback necessary for these types of projects. Overall, while the school's culture may support certain types of projects such as individual research and graded assignments, it may present challenges for implementing projects that require collaboration, innovation, and conflict resolution. 6. You work as an analyst in the marketing department for Springfield International (SI). SI uses a weak matrix to develop new services. Management has created an extremely competitive organizational culture that places an emphasis upon achieving results above everything else. One of the project managers that you have been assigned to help has been pressuring you to make his project your number one priority. He also wants you to expand the scope of your work on his project beyond what your marketing manager believes is necessary or appropriate. The project manager is widely perceived as a rising star within SI. Up to now you have been resisting the project manager’s pressure and complying with your marketing manager’s directives. However, your most recent interchange with the project manager ended by his saying, “I’m not happy with the level of help I am getting from you and I will remember this when I become VP of Marketing.” How would you respond and why? This mini-case focuses on corporate politics and internal competition. While students will want to talk about bigger issues, we force them to discuss how they respond at that moment in time. Responses range from “I’m sorry that you are not happy. I will try to do better in the future,” “Can you tell me in specific terms what you are unhappy about?” to “That’s a threat and I do not respond well to threats.” Once we have explored the merits of specific responses we engage in a deeper analysis by identifying key questions you should ask yourself: If the PM does become VP of Marketing, do you want to be working for this company when this happens? In response to the project manager's statement, I would calmly and professionally address the situation by reiterating my commitment to supporting all projects as directed by my marketing manager. I would express my willingness to assist the project manager within the bounds of my current responsibilities and workload. Additionally, I would communicate my understanding of his project's importance but also stress the importance of following the directives of my marketing manager to ensure that all projects receive fair and balanced support. As for his comment about remembering my level of help when he becomes VP of Marketing, I would respond by saying something like: "I understand your concerns, and I want to assure you that I am fully committed to supporting all projects within my capacity and as directed by my marketing manager. While I appreciate your feedback, I must adhere to the directives of my immediate supervisor. However, I'm open to discussing how we can best collaborate within those parameters to ensure the success of your project." As for whether I would want to continue working for the company if the project manager were to become VP of Marketing, it would depend on how the situation is handled. If the project manager demonstrates an ability to lead with integrity, respect for others, and a collaborative approach, I would be more than willing to continue working for the company. However, if the behavior exhibited during our interactions persists and is reflective of his management style, it may influence my decision to stay with the company in the long term. Ultimately, a healthy and respectful work environment is crucial for my professional satisfaction and growth. Will your marketing manager be unable to protect you? In response to the project manager's statement, I would remain professional and assertive, ensuring that my response reflects my commitment to my role and the directives given by my marketing manager. "I understand your concerns, and I assure you that I am fully committed to supporting all projects within the scope of my responsibilities and as directed by my marketing manager. I appreciate your feedback and am open to discussing how we can best collaborate within those parameters to ensure the success of your project. Regarding your statement about remembering my level of help when you become VP of Marketing, I believe in working collaboratively and professionally with all team members. I trust that any future leader within SI would value teamwork and professionalism. However, my priority remains fulfilling my responsibilities as directed by my marketing manager. As for your question about whether my marketing manager will be unable to protect me, I trust in the leadership of my marketing manager and the company's commitment to a fair and supportive work environment. I am confident that my marketing manager will continue to support me in fulfilling my role effectively." This response reaffirms my commitment to my role, acknowledges the project manager's concerns, and emphasizes the importance of following directives while maintaining a professional and collaborative approach. Additionally, it reiterates my trust in the leadership of my marketing manager and the company's commitment to a fair work environment. What would it take to accommodate your antagonist’s requests? In response to the project manager's statement, I would maintain a professional and diplomatic approach, while also being clear about my boundaries and responsibilities. "I understand your concerns, and I want to assure you that I am fully committed to supporting all projects within my capacity and as directed by my marketing manager. I appreciate your feedback and am open to discussing how we can best collaborate within those parameters to ensure the success of your project. Regarding the level of help you mentioned, I'm more than willing to explore how we can adjust my contributions to better align with your expectations. However, any changes would need to be discussed with and approved by my marketing manager to ensure that they align with our overall departmental goals and priorities. If you believe that certain aspects of the project require more attention or a broader scope of work, I would suggest that we schedule a meeting with my marketing manager to discuss these requirements in detail. This way, we can ensure that we're all on the same page and that any adjustments to my workload are in line with our department's objectives. As for your comment about remembering my level of help when you become VP of Marketing, I believe in working collaboratively and professionally with all team members. I trust that any future leader within SI would value teamwork and professionalism. However, my priority remains fulfilling my responsibilities as directed by my marketing manager." To accommodate the project manager's requests, it would require clear communication with my marketing manager about the additional workload and scope of work. Any adjustments would need to be approved by my marketing manager to ensure that they align with our department's objectives and priorities. This approach ensures that I remain accountable to my direct supervisor while also addressing the project manager's concerns and needs. Can you be helpful and not undermine your other work? In response to the project manager's statement, I would address his concerns while reiterating my commitment to balancing my workload and supporting all projects effectively. "I understand your concerns, and I want to assure you that I am fully committed to supporting all projects within my capacity and as directed by my marketing manager. I appreciate your feedback and am open to discussing how we can best collaborate to ensure the success of your project while maintaining a balance with my other responsibilities. To ensure that I can provide the level of support you need without undermining my other work, I suggest we schedule a meeting to review the current scope of work and discuss any additional tasks you believe are necessary. By doing so, we can prioritize tasks together and ensure that I can accommodate your project effectively while fulfilling my other responsibilities. I believe it's essential to maintain clear communication and collaboration to achieve our goals without sacrificing the quality of my work on other projects. I'm confident that by working together, we can find a solution that benefits both your project and the overall objectives of our marketing department." This response acknowledges the project manager's concerns while emphasizing the importance of maintaining a balanced workload and ensuring that all projects receive the necessary support. It also opens the door for a collaborative discussion on how to effectively manage the workload without compromising the quality of work on any project. Case 3.1 Moss and McAdams Accounting Firm Bruce Palmer had worked for Moss and McAdams (M&M) for six years and was just promoted to account manager. His first assignment was to lead an audit of Johnsonville Trucks. He was quite pleased with the five accountants who had been assigned to his team, especially Zeke Olds. Olds was an Army vet who returned to school to get a double major in accounting and computer sciences. He was on top of the latest developments in financial information systems and had a reputation for coming up with innovative solutions to problems. (Rest of case not shown due to length.) This case is intended to illustrate the problems that can arise in a competitive work environment in which a matrix structure is used to complete projects. 1. If you were Palmer at the end of the case, how would you respond? At the end of the case, if I were Palmer, I would respond by acknowledging Zeke Olds' exceptional skills and contributions to the audit team. I would express my appreciation for his innovative problem-solving abilities and his dedication to staying updated on the latest developments in financial information systems. My response might be something like this: "I want to take a moment to recognize the outstanding work of Zeke Olds during our audit of Johnsonville Trucks. Zeke's expertise in both accounting and computer sciences has been invaluable to our team. His innovative solutions and dedication to staying informed about the latest developments in financial information systems have significantly contributed to the success of this audit. I am truly grateful to have Zeke as a member of our team, and I look forward to continuing to work together on future projects. His hard work and commitment to excellence are truly commendable." This response not only acknowledges Zeke's contributions but also reinforces his value to the team and expresses gratitude for his efforts. It fosters a positive team environment and encourages continued excellence. 2. What, if anything, could Palmer have done to avoid losing Olds? To avoid losing Zeke Olds, Palmer could have taken several proactive steps: 1. Recognize and Reward: Palmer could have recognized Zeke's exceptional skills and contributions to the team formally. This could include public recognition during team meetings or through the company's recognition program. 2. Career Development Opportunities: Palmer could have discussed Zeke's career aspirations and provided him with opportunities for career development within the firm. This could involve offering him challenging assignments, training opportunities, or the chance to work on high-profile projects. 3. Clear Communication: Palmer could have had open and transparent communication with Zeke about his value to the team and his future within the firm. This could involve discussing Zeke's career goals, offering feedback on his performance, and providing guidance on how he can progress within the organization. 4. Compensation and Benefits: Palmer could have ensured that Zeke's compensation and benefits package was competitive and reflected his skills and contributions to the team. This could involve offering him a raise or bonus, additional vacation time, or other perks. By taking these proactive steps, Palmer could have shown Zeke that he was valued and appreciated within the firm, reducing the likelihood of him leaving for another job opportunity. 3. What advantages and disadvantages of a matrix type organization are apparent from this case? Advantages of a matrix-type organization apparent from this case: 1. Flexibility: A matrix organization allows for flexibility in team formation, allowing individuals with diverse skills and backgrounds, like Zeke Olds, to be assigned to specific projects based on their expertise. 2. Specialization: The matrix structure allows for specialization in both functional areas (accounting) and technical areas (computer sciences), enabling the team to leverage Zeke's specialized skills in financial information systems. 3. Innovation: With a matrix structure, individuals like Zeke Olds, who have a reputation for coming up with innovative solutions, can be easily integrated into project teams, fostering creativity and innovation within the organization. Disadvantages of a matrix-type organization apparent from this case: 1. Role Ambiguity: In a matrix organization, employees like Zeke Olds may report to both a functional manager (Bruce Palmer) and a project manager (for the Johnsonville Trucks audit). This dual reporting structure can sometimes lead to role ambiguity and confusion about priorities and responsibilities. 2. Power Struggles: In a matrix organization, power struggles can arise between functional managers and project managers, especially if they have conflicting priorities or if project managers try to exert undue influence over team members. 3. Communication Challenges: With team members reporting to multiple managers, communication can become complex and challenging to manage effectively. This can lead to misunderstandings, delays, and a lack of clarity about project objectives and expectations. Overall, while a matrix organization offers advantages such as flexibility, specialization, and innovation, it also presents challenges such as role ambiguity, power struggles, and communication issues that must be managed effectively to ensure the success of projects and the satisfaction of employees. 4. What could the management at M&M do to more effectively manage situations like this? First, Sands should be criticized for coming up with a solution without consulting with Palmer. Second, Sands should have been aware that such problems might occur and made it a point to check with Palmer as to how things were working out. Here the importance of MBWA should be highlighted. The culture and reward system at M&M appears to encourage the aggressive behavior exhibited by Crosby. Students should be asked if this is necessarily a bad thing. If top management at M&M wants to discourage this kind of behavior, then they could recruit less aggressive team players. They could incorporate as part of the formal review of performance input from other account managers who share resources with that person. Cooperation with other account managers could be stressed in the formal evaluation of individual managers. Here the use of 360-degree feedback in which peers evaluate each other’s performance could be mentioned. Case 3.2 Horizon Consulting Patti Smith looked up at the bright blue Carolina sky before she entered the offices of Horizon Consulting. Today was Friday, which meant she needed to prepare for the weekly status report meeting. Horizon Consulting is a custom software development company that offers fully integrated mobile application services for iPhone™, Android™, Windows Mobile® and BlackBerry® platforms. Horizon was founded by James Thrasher, a former marketing executive, who quickly saw the potential for digital marketing via smartphones. Horizon enjoyed initial success in sports marketing, but quickly expanded to other industries. A key to their success was the decline in cost for developing smartphone applications, which expanded the client base. The decline in cost was primarily due to learning curve and ability to build customized solutions on established platforms. (Rest of case not shown due to length.) The objective of this case is to provide a positive example of a matrix organization. While it can be used at a specific case, it is particularly useful when used with the Moss and McAdams Accounting Firm case which is a negative example of a matrix organization in action. How successful was the post meeting? The meeting was very successful. Participants helped each other make the best decisions available. What factors contributed to the success or failure of this meeting? The project priority system established an agreed upon “pecking order” and the cooperative culture contributed to the participant collaboration. What kind of project management structure does Horizon use? Is it the right structure? Explain. Horizon relies on a strong matrix structure to complete projects. Account Managers manage multiple projects and engage in direct sales activities. App engineers work full-time on a specific project while the other engineers and designers work across multiple projects. Account managers are responsible for the work on each project and contribute to the performance reviews of participants. The heads of Software Development and Graphics manage schedules. A strong matrix structure appears to be ideally suited for Horizon’s business environment. The business is project driven and projects do not require full-time involvement by all participants. Project authority resides with the Account Managers who have direct contact with customers. The authority is appropriate given the importance of meeting customer needs and iterative fashion in which products evolve. Horizon has a project priority system that guides decision making. The organizational culture at Horizon appears to be collaborative which supports a matrix structure. Potentially contentious decisions are resolved amicably. When utilizing Horizon Consulting in conjunction with Moss and McAdams Accounting we find it useful to compare the organizational cultures and mechanisms that contribute to their distinct cultures. Mechanisms M&M Accounting Firm Horizon Consulting Reward System Competitive—partners are selected from cohort group Shared – Rewards distributed based on individual performance and performance of the firm Project Priority System No formal system- priorities are implied by management actions Formal Priority System in place and is used to make decisions Work Environment Formal – emphasis on position within the organization Informal – deemphasizes position rank and encourages egalitarian behavior Employee Selection/Retention Appear to recruit competitive, performance driven individuals who produce results Letting go of Stephen Stills suggest that organization seeks team players Culture Competitive culture, individuals look out for their interests first. Collaborative culture, individuals encourage to help each other and do what is best for the firm Solution Manual for Project Management: The Managerial Process Erik Larson, Clifford F. Gray 9781259666094, 9780078096594
