Project Management/Organization

< Project Management

Organization is an entity made up of a body of people. Organizations include institutions, businesses or any association with a collective goal and is linked to an external environment.^[1] This lesson covers the organization element of project management.

Objectives and Skills

Objectives and skills for the organization portion of Project+ certification include:^[2]

Explain the different types of organizational structures
- Functional
- Weak matrix
- Matrix
- Strong matrix
- Projectized
Recognize the purpose and influence of organizational governance on a project’s execution
- Standards compliance
  - Local, state, federal, ISO
- Internal process compliance
  - Audit trails, retention, version control
- Decision oversight
  - Change Control Board, committee consulting
- Phase gate approval
  - Tollgate approval, project phase transition

Readings

Read Wikipedia: Organization.
Read Wikipedia: Organizational culture.
Read Wikipedia: Organizational structure.
Read Wikipedia: Organizational chart.
Read Wikipedia: Corporate governance.
Read Wikipedia: International Organization for Standardization.
Read Wikipedia: Phase-gate model.

Multimedia

Activities

For an organizational chart, use a tool such as: Creately: Tools, Templates and Resource to Draw Org Charts/Hierarchy Charts and create a hierarchical chart for your organization or school. In addition, review Wikipedia: Diagramming software.
Review three organizational structures CPD: How Do Organizational Structures Affect Projects and Project Management. Consider which kind of organizational structure you are associated with.
- How does it affect your environment? How would the other structures affect where you work?
- Write a summary of the affects and your opinion on the best suited structure for your organization.
Review Tutorialspoint: Decision Making Process. With the steps given about decision making process, compare it to the way your organization makes decisions.
You have been assigned the task of implementing the internal process standards for the organization in which you work. Research standardization methods using tools such as:
- ISO: New ISO standard on project management.
- PRINCE2.com.
- iSixSigma: What Is Six Sigma.
- Write a summary justifying why you would or would not choose any of these methods to use for your organization.
Review TechNet Magazine: Business of IT Understanding Regulatory Compliance. Choose a best practices compliance method to make your organization compliant and research it.

Lesson Summary

An organization consist of multiple people that has a collective goal and is linked to an external environment.^[3]
There are a variety of legal types of organizations, such as, corporations, governments, armed forces, charities, and educational institutions.^[4]
According to management science, most human organizations fall roughly into four types, including, committees, ecologies, matrix, and hierarchies.^[5]
Organizational culture can cause a change in which the way people and groups interact with each other, clients, and stakeholders.^[6]
Organizational structure provides the foundation on which standard operating procedures and routines rest as well and determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.^[7]
A functional organizational structure is fitting as a producer of standardized goods and services at large volume and low cost. In addition, at coordination and specific tasks, which makes producing a limited amount of products or services efficient and predictable.^[8]
In a matrix organization the functional manager assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field and the executive manager tries to get projects completed using the experts.^[9]
Matrix organizational structure can be weak, balanced, or strong.^[10]
Organizational chart shows the relations between people within an organization and there can be various types such as hierarchical, matrix, or flat.^[11]
Governance can pertain to the processes of interaction and decision-making among the actors involved in a collective problem that lead to the creation, reinforcement, or reproduction of social norms and institutions.^[12]
Governance structures and principles recognizes the rights and responsibilities among different participants in the corporation (managers, shareholders, and other stakeholders) and includes the rules and procedures for making decisions in corporate affairs.^[13]
Even if the organization is a geopolitical entity (nation-state), a corporation (organization incorporated as legal entity), a socio-political entity, or an informal one, its governance is the way the rules, norms, and actions are produced, sustained, regulated and held accountable.^[14]
In regards to governance mechanisms, this would include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders.^[15]
ISO, the International Organization for Standardization, is an independent, nongovernmental organization which uses of the standards aids in the creation of products and services that are safe, reliable and good quality.^[16]
Using the phase-gate model for product development identifies problems and assesses progress before the project's conclusion. Using this model on a large project, reduces complexity of what could be a large and limiting innovation process and creates a straightforward rule-based approach. When a phase-gate model incorporates cost and fiscal analysis tools such as net present value, the organization can potentially be provided with quantitative information regarding the feasibility of developing potential product ideas. Finally, the model is an opportunity to validate the updated business case by a project's executive sponsors.^[17]

Key Terms

balanced matrix: A project manager is assigned to oversee the project and it brings the best aspects of functional and projectized organizations.^[18]
change control board: A committee (project stakeholders or their representatives) that makes decisions regarding whether or not proposed changes to a software project should be implemented.^[19]
decision-making: The cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.^[20]
functional organization: A structure that consists of activities such as coordination, supervision and task allocation. Organize people by functions within an organization such as production, marketing, human resources, and accounting.^[21]
governance: Referring to all processes of governing, whether undertaken by a government, market or network, whether over a family, tribe, formal or informal organization or territory and whether through laws, norms, power or language.^[22]
human resources frame: Organisations exists to serve society, they are places for growth and development; and problems come from when people are not motivated or trained sufficiently.^[23]
International Standards Organization (ISO): An international standard-setting body composed of representatives from various national standards organizations.^[24]
matrix organization: Each worker is assigned to a functional and an executive hierarchy.^[25]
organization: An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.^[26]
organizational chart: A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.^[27]
organizational culture: The organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits.^[28]
organizational structure: Defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.^[29]
phase-gate model: A project management technique in which an initiative or project is divided into stages or phases, separated by gates.^[30]
political frame: Organisations where only the strongest survive and problems come from poor power coalitions or overly centralized power.^[31]
projectized organization: An organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project.^[32]
PRojects IN Controlled Environments (PRINCE2): A project management methodology that encompasses quality management, control and organization of a project with consistency and review to align with the objectives.^[33]
strong matrix: A project manager is primarily responsible for the project and the functional managers provide technical expertise and assign resources as needed.^[34]
structural frame: Organisations are to be understood by role definitions and clear hierarchy; and problems come from overlapping responsibilities and unclear instructions.^[35]
symbolic frame: Organisations are deeply symbolic and successful business is about the representation genuine meaning.^[36]
weak matrix: A project manager with only limit authority is assigned to oversee the cross-functional aspects of the project and the functional managers maintain control over their resources and project areas.^[37]

Review Questions

An _____ consist of multiple people that has a collective goal and is linked to an external environment.

An organization consist of multiple people that has a collective goal and is linked to an external environment.
There are a variety of legal types of organizations, such as, _____, _____, _____, _____, and _____.

There are a variety of legal types of organizations, such as, corporations, governments, armed forces, charities, and educational institutions.
According to management science, most _____ fall roughly into four types, including, _____, _____, _____, and _____.

According to management science, most human organizations fall roughly into four types, including, committees, ecologies, matrix, and hierarchies.
Organizational _____ can cause a change in which the way people and groups interact with each other, clients, and stakeholders.

Organizational culture can cause a change in which the way people and groups interact with each other, clients, and stakeholders.
Organizational _____ provides the foundation on which standard operating procedures and routines rest as well and determines which individuals get to participate in which _____, and thus to what extent their views shape the organization’s actions.

Organizational structure provides the foundation on which standard operating procedures and routines rest as well and determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
A _____ organizational structure is fitting as a producer of standardized goods and services at large volume and low cost. In addition, at coordination and specific tasks, which makes producing a limited amount of products or services efficient and predictable.

A functional organizational structure is fitting as a producer of standardized goods and services at large volume and low cost. In addition, at coordination and specific tasks, which makes producing a limited amount of products or services efficient and predictable.
In a _____ organization the functional manager assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field and the executive manager tries to get projects completed using the experts.

In a matrix organization the functional manager assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field and the executive manager tries to get projects completed using the experts.
Matrix organizational structure can be _____, _____, or _____.

Matrix organizational structure can be weak, balanced, or strong.
Organizational _____ shows the relations between people within an organization and there can be various types such as _____, _____, or _____.

Organizational chart shows the relations between people within an organization and there can be various types such as hierarchical, matrix, or flat.
_____ can pertain to "the processes of interaction and decision-making among the actors involved in a collective problem that lead to the creation, reinforcement, or reproduction of social norms and institutions."

Governance can pertain to "the processes of interaction and decision-making among the actors involved in a collective problem that lead to the creation, reinforcement, or reproduction of social norms and institutions."
Governance _____ and _____ recognizes the rights and responsibilities among different participants in the corporation (managers, shareholders, and other stakeholders) and includes the rules and procedures for making decisions in corporate affairs.

Governance structures and principles recognizes the rights and responsibilities among different participants in the corporation (managers, shareholders, and other stakeholders) and includes the rules and procedures for making decisions in corporate affairs.
Even if the _____ is a geopolitical entity (nation-state), a corporation (organization incorporated as legal entity), a socio-political entity, or an informal one, its _____ is the way the rules, norms, and actions are produced, sustained, regulated and held accountable.

Even if the organization is a geopolitical entity (nation-state), a corporation (organization incorporated as legal entity), a socio-political entity, or an informal one, its governance is the way the rules, norms, and actions are produced, sustained, regulated and held accountable.
In regards to _____, this would include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders.

In regards to governance mechanisms, this would include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders.
ISO, the _____, is an independent, nongovernmental organization which uses of the standards aids in the creation of products and services that are safe, reliable and good quality.

ISO, the International Organization for Standardization, is an independent, nongovernmental organization which uses of the standards aids in the creation of products and services that are safe, reliable and good quality.
At each _____, the continuation of the process is decided by (typically) a manager or a steering committee.

At each gate, the continuation of the process is decided by (typically) a manager or a steering committee.
The second phase of the product development process is _____.

The second phase of the product development process is scoping.

Assessments

Flashcards: Quizlet: Organization
Quiz: Quizlet: Organization

References

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