Defining the project role and organizational types
Functional and executives role
Organizational types
Pavel Adámek
Project management

Outline of the lecture
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•Defining the employee´s role (manager, employee, executive) and planning agent (project champions)
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•Organizational structure types
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•Project management office
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Defining the Functional manger´s role
Assuming that the project and functional managers are not the same person, we can identify a
specific role for the functional manager.
There are three elements to this role:
•The functional manager has the responsibility to define how the task will be done and where the
task will be done (i.e., the technical criteria).
•The functional manager has the responsibility to provide sufficient resources to accomplish the
objective within the project’s constraints (i.e., who will get the job done).
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•The functional manager has the responsibility for the deliverable.

Defining the Functional manger´s role
The project manager has the right to request specific staff, but the final appointments rest with
line managers. It helps if project managers understand the line manager’s problems:
•Unlimited work requests (especially during competitive bidding)
•Predetermined deadlines
•All requests having a high priority
•Limited number of resources
•Limited availability of resources
•Unscheduled changes in the project plan
•Unpredicted lack of progress
•Unplanned absence of resources
•Unplanned breakdown of resources
•Unplanned loss of resources
•Unplanned turnover of personnel

Defining the Functional manger´s role
•Project management is designed to have shared authority and responsibility between the project and
line managers.
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•Project managers plan, monitor, and control the project, whereas functional managers perform the
work.
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•For organization – synergy from connection to vertical and horizontal work realationship. Usefull
project structure to fullfill companies goals.
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•Have to be clear with responsibility of project manager and line managers.
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Defining the Functional manger´s role
Shared responsibility
•The project and line managers are the same person.
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•This situation, which happens more often than not, creates a conflict of interest.
Source: Kerzner, H. 2017.  Project Management

Defining the Functional manger´s role
Shared responsibility
•The relationship between project and line managers is not always in balance and thus, of course,
has a bearing on who exerts more influence over the assigned Functional employees.
Source: Kerzner, H. 2017.  Project Management

Defining the employee´s role
We need to describe the Functional and executiveemployee´s role
•Once the line managers commit to the deliverables, it is the responsibility of the assigned
functional employees to achieve the functional deliverables.
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•In most organizations, the assigned employees report on a “solid” line to their Functional
manager, even though they may be working on several projects simultaneously.
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•The employees are usually a “dotted” line to the project but solid to their function. This places
the employees in the often awkward position of reporting to multiple individuals.

Defining the employee´s role
The functional employee is expected to accomplish the following activities when assigned to
projects:
• Accept responsibility for accomplishing the assigned deliverables within the project’s
constraints
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•Complete the work at the earliest possible time
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•Periodically inform both the project and line manager of the project’s status
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•Bring problems to the surface quickly for resolution
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•Share information with the rest of the project team

Defining the employee´s role
In a project environment there are new expectations of and for the executives, as well as a
new interfacing role. Executives are expected to interface a project as follows:
•In project planning and objective-setting
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•In conflict resolution
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•In priority-setting
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•As project sponsor

Defining the employee´s role
Working with executives
•Executives are expected to interface with projects very closely at project initiation and
planning, but to remain at a distance during execution unless needed for priority-setting and
conflict resolution.
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•One reason why executives “meddle” during project execution is that they are not getting accurate
information from the project manager as to project status.
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Source: Kerzner, H. 2017.  Project Management

Defining the employee´s role
•The critical node in project management is the project manager–line manager interface.
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•At this interface, the project and line managers must view each other as equals and be willing to
share authority, responsibility, and accountability.
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•In excellently managed companies, project managers do not negotiate for resources but simply ask
for the line manager’s commitment to executing his portion of the work within time, cost, and
performance.
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•Therefore, in excellent companies, it should not matter who the line manager assigns as long as
the line manager lives up to his commitments.

The project manager as the planning agent
•The major responsibility of the project manager is planning.
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•If project planning is performed correctly, then it is conceivable that the project manager will
work himself out of a job because the project can run itself. This rarely happens, however.
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•Few projects are ever completed without some conflict or trade-offs for the project manager to
resolve.
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As the architect of the project plan, the project manager must provide:
–Complete task definitions
–Resource requirement definitions (possibly skill levels)
–Major timetable milestones
–Definition of end-item quality and reliability requirements
–The basis for performance measurement

The project manager as the planning agent
These factors, if properly established, result in:
•Assurance that functional units will understand their total responsibilities toward achieving
project needs.
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•Assurance that problems resulting from scheduling and allocation of critical Resources are known
beforehand.
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•Early identification of problems that may jeopardize successful project completion so that
effective corrective action and replanning can be taken to prevent or resolve the problems.
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•Project managers are responsible for project administration and, therefore, must have the right to
establish their own policies, procedures, rules, guidelines, and directives— provided these
policies, guidelines, and so on, conform to overall company policy.

The project manager as the planning agent
Project managers cannot make any promises to a functional employee concerning:
•Promotion
•Grade
•Salary
•Bonus
•Overtime
•Responsibility
•Future work assignments
´Improper project administrative planning can create a situation that requires:
•A continuous revision and/or establishment of company and/or project policies, procedures, and
directives
•A continuous shifting in organizational responsibility and possible unnecessary restructuring
•A need for staff to acquire new knowledge and skills

Project champions
•Corporations encourage employees to think up new ideas that, if approved by the corporation, will
generate monetary and nonmonetary rewards for the idea generator.
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•The project champions may become so attached to the technical side of the project that they become
derelict in their administrative responsibilities.
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•Perhaps the project champion might function best as a project engineer rather than the project
manager.
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•The selection of the “proper” project manager should be based on all facets of the project.

Project champions
Project managers versus project chapions
•Corporations encourage employees to think up new ideas that, if approved by the corporation, will
generate monetary and nonmonetary rewards for the idea generator.
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•One such reward is naming the individual the “project champion.”
Source: Kerzner, H. 2017.  Project Management

Organizational structure types
Determination of the appropriate organizational structure type is a result of the study of
tradeoffs between two key variables.
•The variables are the organizational structure types available for use and how to optimize them
for a given organization.
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•There is not a one-size-fits-all structure for any given organization.
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•The final structure for a given organization is unique due to the numerous variables to be
considered

Organizational structure types
Each organization considers numerous factors for inclusion in its organizational structure.
Factors to consider in selecting an organizational structure include but are not limited to:
•Degree of alignment with organizational objectives,
•Specialization capabilities,
•Span of control, efficiency, and effectiveness,
•Clear path for escalation of decisions,
•Clear line and scope of authority,
•Delegation capabilities,
•Accountability assignment,
•Responsibility assignment,
•Adaptability of design,
•Simplicity of design,
•Efficiency of performance,
•Cost considerations,
•Physical locations (e.g., colocated, regional, and virtual), and
•Clear communication (e.g., policies, status of work, and organization’s vision).

Organizational structure types
Influence of Organizational Structures on projects
•Each factor may carry a different level of importance in the final analysis.
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•The combination of the factor, its value, and relative importance provides the organization’s
decision makers with the right information for inclusion in the analysis.
Source. PMBOK Guide

Project management office
•Project management office (PMO) is an organizational structure that standardizes the
project-related governance processes and facilitates the sharing of resources, methodologies,
tools, and techniques.
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•The responsibilities of a PMO can range from providing project management support functions to the
direct management of one or more projects.
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•Each type varies in the degree of control and influence it has on projects within the
organization, such as:
–Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best
practices, training, access to information, and lessons learned from other projects. This type of
PMO serves as a project repository. The degree of control provided by the PMO is low.
–Controlling. Controlling PMOs provide support and require compliance through various means. The
degree of control provided by the PMO is moderate
–Directive. Directive PMOs take control of the projects by directly managing the projects. Project
managers are assigned by and report to the PMO. The degree of control provided by the PMO is high.

Project management office
A PMO may have the authority to act as an integral stakeholder and a key decision maker throughout
the life of each project in order to keep it aligned with the business objectives. The PMO may:
•Make recommendations,
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•Lead knowledge transfer,
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•Terminate projects, and
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•Take other actions, as required.

Project management office
A primary function of a PMO is to support project managers in a variety of ways, which may include
but are not limited to:
•Managing shared resources across all projects administered by the PMO;
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•Identifying and developing project management methodology, best practices, and standards;
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•Coaching, mentoring, training, and oversight;
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•Monitoring compliance with project management standards, policies, procedures, and templates by
means of project audits;
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•Developing and managing project policies, procedures, templates, and other shared documentation
(Organizational process assets); and
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•Coordinating communication across projects.

Traditional organization
•The traditional management structure has survived for more than two centuries.
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• However, recent business developments, such as the rapid rate of change in technology and
increased stockholder demands, have created strains on existing organizational forms. Fifty years
ago companies could survive with only one or two product lines.
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•However, with the passing of time, companies found that survival depended on multiple product
lines (i.e., diversification) and vigorous integration of technology into the existing
organization.
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•As organizations grew and matured, managers found that company activities were not being
integrated effectively, and that new conflicts were arising in the well-established formal and
informal channels.
•Managers began searching for more innovative organizational forms that would alleviate these
problems.
Source: Kerzner, H. 2017.  Project Management

Developing work integration position
•As companies grew in size, more emphasis was placed on multiple ongoing programs with
high-technology requirements.
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•Organizational pitfalls soon appeared, especially in the integration of the flow of work.
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•As management discovered that the critical point in any program is the interface between
functional units, the new theories of “interface management” developed.
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•Because of the interfacing problems, management began searching for innovative methods to
coordinate the flow of work between functional units without modification to the existing
organizational structure. This coordination was achieved through several integrating mechanisms:
–Rules and procedures
–Planning processes
–Hierarchical referral
–Direct contact

Developing work integration position
•Another means of reducing conflicts and minimizing the need for communication was detailed
planning.
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•Functional representation would be present at all planning, scheduling, and budget meetings.
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•This method worked best for nonrepetitive tasks and projects.
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•The continuous conflicts and struggle for power between the functional units consistently required
that upper-level personnel resolve those problems resulting from situations that were either
nonroutine or unpredictable and for which no policies or procedures existed.

Developing work integration position
•When the activities required efforts that crossed more than one functional boundary, conflicts
arose.
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•The project leader in one department did not have the authority to coordinate activities in any
other department.
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•Furthermore, the creation of this new position caused internal conflicts within each department.
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•As a result, many employees refused to become dedicated to project management and were anxious to
return to their “secure” jobs. Quite often, especially when cross-functional integration was
required, the division manager was forced to act as the project manager.
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•For this probles – new departmental project management structure was developed. This
Organizational form works in this case because:
•The other department managers know that they may have to supply the project leader on the next
activity.
•There are only three functional boundaries or departments involved.
Source: Kerzner, H. 2017.  Project Management

Developing work integration position
•The next step in the evolution of project management was the task force concept. The rationale
behind the task force concept was that integration could be achieved if each Functional unit placed
a representative on the task force.
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•Development of the task force concept was a giant step toward conflict resolution:
•Work was being accomplished on time, schedules were being maintained, and costs were usually
within budget.
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•But integration and coordination were still problems because there were no specified authority
relationships or individuals to oversee the entire project through completion. Attempts were made
to overcome this by placing various people in charge of the task force: Functional managers,
division heads, and even upper-level management had opportunities to direct task forces.
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•However, without formal project authority relationships, task force members remained loyal to
their functional organizations, and when conflicts came about between the project and functional
organization, the project always suffered.
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Developing work integration position
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•The next step in the evolution of work integration was the establishment of liaison departments,
particularly in engineering divisions that perform multiple projects involving a high level of
technology.
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•The purpose of the liaison department was to handle transactions between functional units within
the (engineering) division.
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•The liaison personnel received their authority through the division head.
Source: Kerzner, H. 2017.  Project Management

Line-staff organization (project coordinator)
•It soon became obvious that control of a project must be given to personnel whose first loyalty is
directed toward the completion of the project. Thus the project management position must not be
controlled by the functional manage.
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•Although this second situation did occur during the early stages of matrix project management, it
did not last because:
–Upper-level management was not ready to cope with the problems arising from shared authority.
–Upper-level management was reluctant to relinquish any of its power and authority to project
managers.
–Line–staff project managers who reported to a division head did not have any authority or control
over those portions of a project in other divisions; that is, the project manager in the
engineering division could not direct activities in the manufacturing division.
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Source: Kerzner, H. 2017.  Project Management

Pure product (pojectized) organization
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•The pure product organization develops as a division within a division.
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•As long as there exists a continuous flow of projects, work is stable and conflicts are at a
minimum.
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•The major advantage of this organizational flow is that one individual, the program manager,
maintains complete line authority over the entire project.
Source: Kerzner, H. 2017.  Project Management

RECAP
•Project management has matured as an outgrowth of the need to develop and produce complex and/or
large projects in the shortest possible time, within anticipated cost, with required reliability
and performance, and (when applicable) to realize a profit.
•Granted that organization’s have become so complex that traditional organizational structures and
relationships no longer allow for effective management.
•Generally speaking, the project management approach can be effectively applied to a onetime
undertaking that is:
–Definable in terms of a specific goal
–Infrequent, unique, or unfamiliar to the present organization
–Complex with respect to interdependence of detailed tasks
–Critical to the company
•The basic factors that influence the selection of a project organizational form are:
•Project size, Project length, Experience with project management organization, Philosophy and
visibility of upper-level management, Project location, Available Resources, Unique aspects of the
project.