1. Executive Summary
The Randburg Syndicate Group (RSG) evaluated the case study of Multi Projects Inc. (Gido, page 452 – 454) and came to the following consensus:
Multi Projects Inc. has moved away from the traditional hierarchy structure of organisations that have leaders and various sub departments reporting upward and opted on a new-economy approach by adopting a matrix organisational structure. Even though this is a very forwarding thinking approach, it does come with its own challenges that have been highlighted in detail under the section “Problems and their causes”.
The main challenge facing Multi Project Inc. matrix structure is how the organisation communicates between the various departments. Understanding how various department heads and project managers share resources and what the shared resource roles are under the department head and within the project.
The lack of having a Project Management Office (PMO) within Multi Projects Inc. that can assist with policy
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Problems and their causes
The company runs multiple projects simultaneously however the case study centres around two major projects, that being the Goodold Company project, which is in the implementation phase of the project lifecycle, as well as a newly landed project, the Growin Corporation project, which is in the initiation phase.
Following an analysis of the case, the company is currently experiencing internal communication problems and a lack of understanding of how a business that has a matrix structure should operate. By applying a few changes within the organisation will result in the company becoming even more successful.
Randburg Syndicate Group (RSG) has broken down the problem areas into four key business components:
3.1. Understanding of matrix organisational structure
Jeff’s immediate reaction and desire of reassigning Tyler to his new project indicates that not all employees have bought in to or have a functional understanding of the organisation’s matrix
With the introduction of the Matrix organizational structure, there would also be an improvement with flexibility within CanGo that would allow resources to flow from one functional project to another. Once this matrix environment is balanced, there would be one project manager who would oversee the group of functional managers (each of whom would be leading a project group). Apart from the benefits mentioned above, the matrix management structure, will also empower the department directors to communicate and collaborate with one another. This ability to communicate will equip the directors to provide the staff members with the necessary information to successfully complete
The paper is divided into three sections, the first of which will establish a timeline of events. This project background will serve as a case study for the analysis in the following section that will be structured such that each of the previously mentioned facets will be independently analyzed and contrasted with project management principles. Finally the paper will conclude with a summary of the analysis and recommendations based on
Matrix – is a permanently designed to reach detailed results using employees from other areas within the company (Chand, n.d.). This structure uses a horizontal reporting within the hierarchical function structure. Some of the advantages are distributing decision making, strong project co-ordination, and there is a fast and flexible response to change. There is, however, the cost of administration is high, authority and responsibility can be confusing, and group decision making can be exaggerated. Within this structure, there are functional and product managers. The functional managers oversee the daily task of functions to keep the business going whereas the product manager oversees getting the products
The Case Study for PROJ587 will place the student in the role of a senior manager in charge of one of your company’s Strategic Business Units (SBU). Your first task in this new position is to develop a project portfolio management process and then use this process to select projects for your SBUs portfolio. The Case Study will involve the application of the tools and techniques of multi-project/program management and will deal with the analysis and establishment of project management systems based
“A matrix organizational structure represents the middle ground between functional and project structures. Personnel often report both to a functional manager and one or more project managers” (Schwalbe, 2014). In the CDB project Corporate Banking, Corporate Trust, and Consumer banking involve to this project. Project Management Office is a good way to coordinate the contradiction between those divisions.
Chapter 3 3-1: There is no ideal structure for all kinds of organizations or appropriate to single organization at different stages. It changes from situation to situation. Though Matrix organization structure is appropriate it has disadvantages like Conflict between line managers and project managers over resource allocation, project maintenance is difficult if teams have lot of independence and cost increases if because of lot of managers. 3-2: Organizational changing occurs at rapid rate because shorter life cycle of projects and rapidly changing environment. Traditional management is old process it does not work in many projects. Systematic planning with strong functional input will produce team work. During the transition from one
The organizational structure can weaken or strengthen a project manager’s authority. In an organization with a functional or matrix structure the project manager has very little authority. Most of the authority is with the functional manager. This happens because the functional manager the resources are shared between the project and the existing business of the company. An
The second structure in project organization is the matrix structure. According to "What Is A Matrix Structure" (2010), “The matrix structure is an organizational plan that groups employees by both function and product. The organizational structure is very flat, and the structure of the matrix is differentiated into whatever functions are needed to accomplish certain goals. Each functional worker usually reports to the functional heads, but do not normally work directly under their supervision. Instead, the worker is controlled by the membership of a
A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason is to create an environment that fosters interactions among the team members with a minimum amount of disruptions, overlaps and conflict (pm4dev, 2007).Selecting the organization structure is one of the most important points to start any project. On the basis of unique characteristics of the project, each project structure various forms its own advantages and disadvantages. One of the main objectives of the structure is to reduce uncertainty and confusion that typically occurs at the project initiation phase .The Structure defines the relationships among
Regardless of a business size and type, or its product line and/or services, organizational structure and effective communication across all levels are key components of project management best practices and are essential for organizational success. One approach organizations can take to enhance its business practices is to adopt and implement a comprehensive project management system, capable of addressing organizational project requirements at various levels; small, medium and large scale projects. According to Diab (2012), project management systems are commonplace in large organizations and are rarely implemented in small and medium size companies. One could equally contend that even though the
After working as a project engineer for 14 years at Scientific Engineering Corporation (SEC) with great success, Gary Allison accepted a position as Project Manager on the Orion Shield Project. This was one decision that would change Gary’s career at SEC dramatically, as from being the best engineer in the plant ten months ago, we would be fired from the company. Let’s take a close look at the identify and discuss the technical, ethical, legal, contractual and other project management issues that Gary faced during the Orion Shield project.
A matrix organization is an organization where employees report their job activities to more than one superior or manager simultaneously. In other words, employees have a dual reporting obligation to both a departmental manager and a product manager. In describing a matrix organization, Bauer and Erdogan (2009) explains that “employees reporting to department managers are also pooled together to form project or product teams” (p. 326) and in that case, individual employee report to the project manager and the departmental manager. For instance, the Dutch electronics giant, Phillips uses matrix management system with its managers reporting to both a geographical manager and a product division manager simultaneously.
Matrix Management Structure. senior manager in a large corporation that is touting the benefits of developing software using multiple teams in order to reduce the elapsed calendar time for new software delivery:
Whereas an integrated matrix model is when other departments join the team with multiple bosses, with various corporate functions on one side and different product groups on the other. This model works best with projects without significant time constraints, where innovation is not an issue and cost constraints are not extreme. “Technical teams must now work collaboratively with the business and marketing teams. Team managers who used to have full control of the human and financial resources necessary to carry out projects must now plan and work across the board with peers. In some instances, a team manager must request personnel from another area or negotiate budgets with their internal customers” (NCU, 2016).
Matrix is a strong form of horizontal linkage. The unique characteristics of this organisation is that both product divisions and functional structures are implemented simultaneously.The product managers and functional managers have equal authority within the organisation and employees report to both of them.