describe the main project organisation structures and give their advantages and

disadvantages. 

Functional organizational structure. 

Functional organizational structure is to be managed in the current organization hierarchical structure,
once the project begins operation, the various components of the project are taken by the functional
units, each unit is responsible for its charged component. If the the project established, a functional
area play a dominant role, functional areas on completion of the project, senior managers will be
responsible for project coordination.

Advantages of this structure: First, the use of personnel with greater flexibility, as long as the choice of
a suitable functional departments as the project supervisor, the department will be able to provide
professional and technical personnel required by the project, and technology experts can also be
used by different projects and after completion of the work can go back to his original work; Second,
when the project team members leave or leave the company, the functions can be used as the basis
for maintaining the continuity of the project; third, functional department can provide a normal career
path for professionals.

The disadvantage of this structure is: First, projects often lack of focus, each unit has its own core
functions of general business, sometimes in order to meet their basic needs, responsibility for the
project will be ignored, especially when the interest taken in the project brought to the unit not the
same interest; Second, such organization has certain difficulties in the inter-departmental cooperation
and exchanges; Third motivation is not strong enough for project participants, they think the project is
an additional burden, and not directly related to their career development and upgrading; Fourth, in
such organizational structure, sometimes no one should assume full responsibility for the project,
often the project manager is only responsible for part of the project, others are responsible for the
other parts of the project, which leads to difficulties in coordination situation.

2. Project-based organizational structure. 

Project organizational structure refers to the creation of an independent project team, the team’s
management is separated from the parent organization’s other units, have their own technical staff
and management, enterprise assigns certain resources to project team, and grant project manager of
the largest free implementation of the project .

The advantages of this structure: First, focus on this project team, project manager is solely
responsible for the project, the only task for project members is to complete the project, and they only
report to the project manager, avoiding the multiple leadership; Second, the project team’s decision is
developed within the project, the reaction time is short; Third, in this project, members work with
strong power, high cohesion, participants shared the common goal of the project, and individual has
clear responsibilities.

The disadvantage of this organizational structure: First, when a company has several projects, each
project has its own separate team, which will lead to duplication of efforts and the loss of scalable
economies; Second, the project team itself is an independent entity, prone to a condition known as
“Project inflammatory” disease, that is, there is a clear dividing line between the project team and the
parent organization, weakening the effective integration between project team and the parent
organization; Third, the project team members lack of a business continuity and security, once the
project ended, return to their original functions may be more difficult.

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3. Matrix organizational structure. 

Matrix organizational structure is a hybrid form, it loads a level of project management structure on the
functional hierarchical structure. According to the relative power of project managers and functional
managers, in practice there are different types of matrix systems, respectively, Functional Matrix: in
this matrix, functional managers have greater powers than project managers); Project Matrix: in this
matrix, project managers have greater powers than functional managers); Balance Matrix: in this
matrix, functional managers and project managers have the equal powers.

The advantages of this organizational structure: First, it is the same as functional structure that
resources can be shared in multiple projects, which can significantly reduces the problem of
redundant staff; Second, project is the focus of work, with a formal designated project manager will
make him give more attention to the project, and responsible for the coordination and integration work
between different units; Third, when there are multiple projects simultaneously, the company can
balance the resources to ensure that all the projects can progress to complete their respective costs
and quality requirements; Fourth, the anxiety of project members is reduced greatly after the end of
the project, while they are strongly associated with the project, on the other hand, they have a “home”
feeling about their functions.

The disadvantage is that this organizational structure: First, the matrix structure has exacerbated the
tensions between functional manager and project manager; Second, under any circumstances,
sharing equipment, resources and personnel among different projects will lead to conflict and
competition for scarce resources; Third, in the process of project implementation, the project manager
must negotiate and consult with the department managers on various issues, which leads to the delay
in decision making; Fourth, matrix management is not according to the principles of unified
management, project members have two bosses, the project manager and functional managers,
when their commands are divided, it will make members at a loss.

Three different forms of the matrix organizational structure does not necessarily have the advantages
and disadvantages described above: Project Matrix can increase the project’s integration, reduce
internal power struggle, its weakness is poor control of their functional areas and prone to “project
inflammation”; Functional Matrix can provide a better system for managing the conflict between
different projects, but maintaining the control of functions is at the cost of inefficient integration of
projects; Balanced Matrix can achieve the balance between technology and project requirements
better, but its establishment and management is very subtle, is likely to encounter many problems
related to matrix organization.

describe the main project organisation structures and give their advantages and
disadvantages. 

Functional Organizational Structure 

In a functional organization structure, the project manager and all the

resources work in the same company division, such as the sales and
marketing department. Generally, the functional manager has more authority
than the project manager.

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Advantages

The functional structure gives you the least power as a project manager, but
offers plenty of other advantages:

 It works well for small teams and small projects because the function
has full control over the team members and other resources required.
 You can easily access the experts you need because they are in the
same functional area.
 It’s quick to get everyone together to resolve problems related to the
project.
 You can limit the project communications tools you need to use
because the team is relatively small and simple.
 You often get enthusiastic team members who are keen to work on the
project because it provides them with career opportunities. Project work
can be a great way to motivate your team.

 If you are handing the project over to a functional team, it’s going to be
the functional team you work in, which can make closing a
project easier.

Disadvantages

Although this structure has plenty of advantages, also consider some

downsides: 

 Work takes place in a silo, which might mean that you don’t have
access to people outside your functional division.

 People on the project team might be more loyal to their department or

team manager than to their work on the project, which can create
conflicts.
 A large project can end up with a functional project manager for each
function. It can result in work falling through the cracks if all project
managers don’t work harmoniously together.
 Functional work can be isolating in that you don’t have an opportunity to
network widely with the company. Maintaining a strategic focus can be
harder.

Project Organizational Structure

Dedicated teams are put together to work on projects in a project

organizational structure. The project manager probably has line management
responsibility for the project team members. Examples of this would include
large construction builds, but also corporate initiatives that require a dedicated
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team. The project manager has ultimate authority, reporting to the project
sponsor and the project board. The individuals on the teamwork directly for
the project manager.

Advantages

The obvious advantage of a project structure is that you have more control
over the team, but other advantages are in place, too.

 Teams can have a strong sense of identity. It is the easiest structure

within which to create a strong team culture.

 The whole team is focused on the team’s goals, so conflict of loyalty

exists with the day job for the people working on the project. Their day
job is the project.
 Resources are dedicated to the project, so it’s much easier to schedule
work. You’ll know when the team members are available and there’s no
risk that they'll be pulled off at short notice to business-as-usual work for
another manager.
 Projects run in this structure are great environments for improving your
project management skills as well as more technical leadership skills.

Disadvantages

The project structure is the easiest to work with but still has some drawbacks.

 Having a team dedicated to one project is an expensive commitment. It

tends to be an option only on big projects.
 If you remove people from their functional jobs, they might find it difficult
to go back, especially if the project is long. Project work is stretching,
and returning to what you did before after a period working in a
multidisciplinary environment on a new, challenging project isn't an
appealing prospect for many people. Managing the transition of the
team when you close a project becomes even more important.

 Sometimes closing a project can mean losing your job if the business
has moved on and another role isn't available for you.
 By their nature, dedicated teams suck up resources to work on just one
thing. They can limit the number of projects the company can do at any
one time, especially when different projects require the same skills.
 Project managers in this type of structure do line management for their
teams, too, which means spending time and effort on human resource
tasks that you wouldn't have to do in other structures. If you enjoy this
element of working with people, this factor could be an advantage. 

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Matrix Organizational Structure 

The third option is a matrix structure. Resources are shared across both
business-as-usual work and project work. It might mean having two managers
or "dotted-line" responsibility to a project manager as well as to the team
manager. The functional management line structure is normally in place first,
and the project manager takes the dotted line.

This structure splits power and authority between the functional or division
team manager and the project manager. You’ll need to use your negotiating
skills to their full power!

Advantages

Matrix structures are very common because they allow managers to make
flexible choices with how people spend their time. You’ll likely work in a matrix
environment at some point in your career. The advantages of this structure
are as follows:

 Resources are used efficiently and can move around between projects
as needed.
 You can work on lots of different things, sometimes in parallel—
although this point can be argued as a disadvantage as well. 
 Teams and individuals can be very responsive. If a new project comes
along that has to take priority, it’s easy enough to pivot and suddenly
focus on something else. You can’t do that easily in a project structure,
which takes longer to disband and regroup.
 The structure requires that everyone use the same project management
life cycleand methodology, so moving between projects is easy. People
can join a project team with relatively little onboarding required when
the terminology and processes are common. 

Disadvantages

As with all setups, this one has its pitfalls, too. Despite it being a common
structure, not many modern workplaces have cracked the problems of
overload. Giving individuals too much to do can be easy if you don’t have
systems in place to manage and monitor the entirety of their workload. Other
disadvantages are as follows: 

 The conflict between projects is common because you might be fighting

for the same resources as another project.
 The other project might have ring-fenced the best resources—the most
appropriate people with the right skills—or their line manager might not
make them available for project work.

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 There can be some conflict between business-as-usual tasks and
project work for individuals, especially when both managers are giving
them different priorities.
 Resources might have a conflict about what development path they take
for their future careers. Although you might know that you want to stay
in project management, you may have the option of progressing into a
more senior functional role or a more project-orientated role. But having
lots of career options is a good thing, even if it does make for difficult
decisions.

 Explain 5 distinct aspects which the project manager should consider

when preparing a communications plan 
 Who
 What
 How
 When
 Feedback
 A stakeholder identification and
analysis would take place to identify the relative power and interest of the
stakeholders and who they are. Stakeholders may be internal to the project such
as the sponsor and users but they may also be external such as the Government.
This will enable the project manager to begin to define the what, who and when
of the communications plan since all communications have a cost which is
attributed to the project.
 Depending on the level of the
stakeholder (relative power and interest) over the project will define what we
intend to communicate. Those within the project such as the project sponsor and
the sponsoring group would receive confidential information which may not be
appropriate to share with the wider stakeholder community. For example the
Sponsor would be receiving accurate and detailed information relating to
progress and the viability of the business case where as the end user would
receive information about progress at a less detailed level reinforcing the
positive benefits of the project, what it means to them,  and when it is being delivered.
 The mechanism for communication
will need to be considered by the project manager. For example it is highly
likely that the project manager will invest more time with face to face
meetings with those of higher power (either to keep them satisfied or increase
their level of interest). Those with lower power and interest or to larger
groups of stakeholders will require less costly (in terms of time and cost)
forms of communication such as email, websites, newsletters. If the information
is confidential or sensitive in nature then secure mechanisms will be required.
 The timings of communications is
all important. It is important to identify when to engage with each stakeholder
group. For example in development of a new IT system, users would be engaged at
the start of the project to gain interest and sell the benefits and the timings
would increase as development progresses to prepare the users for key
activities such as User acceptance testing and training.
 With communications the project
manager needs a mechanism to establish how effective the communications are at
getting the message across so that the communications process can be
continually improved. For example an organisation may have recently carried out
an initiative to raise awareness in data protection as part of a project to
improve overall data security. A short survey could be sent out via email to
assess the stakeholders understanding and see how it could be improved.

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 List and describe a
source of conflict arising within each of the following parts of the project
lifecycle.
1. Concept
2. Definition
3. Implementation
4. Handover
5. Close out
6. Concept – Conflicts relating to business case and the solution which is chosen
7. Definition – Conflicts relating to the delivery schedule and timescales
8. Implementation – Conflicts relating to the products being developed and their fitness for purpose
9. Handover – Conflicts relating to training on how to use the products
Close
out. – Conflicts relating to how to transistion the project from Project
environment to BAU.
Conflicts relating to
business case and the solution which is chosen
During the business
case development a number of different options are considered in order to derive
a solution. Stakeholders will all form their own opinions as to whether to make
or buy and which solution is best.  At
the end of the business case following careful scrutiny taking into account
costs, risks, timescales and benefits a single solution is put forward. In this
example the sponsor will play a key role in ensuring all stakeholders are
aligned to the recommended solution.
Definition
During the definition
stage scope is defined and refined through scope management techniques such as
Work breakdown structures and product breakdown structures. This is then put
into a schedule which will form the cornerstone of delivery and is baselined
and included within the PMP.  In our
organisation we often struggle to get agreement over delivery timescales given
resource constraints and so further debate needs to take place over costs to
bring in additional resource to reduce timescales for delivery.
Implementation
During implementation
products are developed against a set of success criteria and undergo unit
testing, system testing and overall user acceptance testing. At this stage when
the products are actually demonstrable to the user they will often wish to
change the requirement, or request additional changes not originally
considered. This could be managed by change control and towards the end of
development by introducing a change freeze.
Handover
When the products are
handed over to the users conflicts may arise surrounding training. Different
users with differing experience may require additional training not originally
considered. For example users may require additional Basic IT training to bring
them up to a basic level of IT Literacy before Specific IT system training
takes place, This can be avoided by completion of training needs analysis
during the definition stage.
Closure
Conflict can arise
when the product is handed over from the project environment into Support and
operations. If documentation is missing or incomplete support issues may not be
effectively be resolved which limits the effective use of the product and
confidence of the customer is diminished  as an effective support arrangement is not
established.

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Conflict Management is the process of identifying and addressing differences, which if left unmanaged could
impact on project objectives. Effectively, this prevents differences becoming destructive elements. Conflict can
exist throughout the phases of the project with some of the following sources :
1. Concept phase – Conflict can come in this phase with regards to why the project is actually required.
Stakeholders may view the project as un-needed and potentially hostile and disruptive to the project team. The
definition of the scope of the project may cause conflict as some stakeholders will want the project to achieve
more than the what’s possible with the allocated funds. An example of this could be the residents near a planned
train line extension being hostile with regards for why the line is taking the route proposed.
2. Definition – during this phase, conflict may come in the requirements gathering process. Users and
Stakeholders will need to prioritise which of the requirements are most beneficial and with a project under fiscal
constraints, some may be classified as “nice to have” and left out of the project. Conflict can be good at this
stage, as it can often drive better decisions, provided it is controlled and managed. An example could be the local
MP on the train line extension being consulted by the angry residents, and to overcome the negative sentiment,
the project includes larger safety barriers.
3. Implementation – Conflict in this stage could come from the change control & risk management areas. Change
requests are likely and risks will materialise which may cause conflict with existing requirements or impact the
progress which has already been made. Justification of the change may be required for everyone to see the
benefits of the change and to overcome the conflict, but this may lead to rework or other requirements being
dropped, leading to further conflict. The requirement to continue delivering to budget and time, will be impacted
and will have conflicting implications in this scenario. An example of this could be a request to change to
overhead power cables on the train line extension, causing lots of rework.
4. Handover and closeout – in this phase, conflict could come from the subjective acceptance of the completed
project. If quality criteria has not been fully defined, there will be scope for differing interpretations of quality,
leading to conflict. The transition to BAU, could also be a source of conflict with the functional dept. unwilling to
take ownership, leading to conflict between the PM and the functional managers. An example of this could be the
finished train line extension having too many defects for the train operators to run to a defined schedule.

Concept – over the projects priorities, benefits and requirements

This is where views may differ been the projects participants, such as the project sponsor, over such topics as
the user requirements and the benefits to be delivered by the project. These are fundamental contents of the
Business case which is prepared during the concept phase. The approval of the business case is the process by
which these conflicts are resolved in this phase.
Definition – over budgets, plans and administrative procedures
These may develop regarding the management of the project. For example, the definition of the project
manager’s reporting relationships, responsibilities, operational requirements, plan of execution and procedures
for administrative support. In addition it is expected that during the development of detailed plans conflict may
arise over the costs and times sclease for the overall project and associated work packages. It needs to be
resolved because it affects the project management plan.
Implementation – over technical opinions, performance trade-offs and delivery costs and milestones
These may be technical or personality based within the team environment when members are too closed minded
to compromise, someone wants their own way or has a preference for a way of doing something. We may also
see conflict over delivery to the agreed milestones and budgets, especially if the project begins to run late and
over cost. If properly managed conflict can lead to a positive outcome particularly in a problem solving
environment.
Handover – over acceptance
May develop over the redeployment and redistribution of manpower towards the end of the project when key
resources can be lost from one project and allocated to another.In addition the users may not be happy to accept
the final output of the project, because it may not meet their exectations or may have minor faults that need to be
resolved.
Closeout – Over capturing lessons learned
During close out the project manager may face conflict associated with lessons learned. These can arise from
either a willingness on behalf of team members and other stakeholders to face the lessons learned from the
project, or a sense of weariness about the project and the desire of everyone to move on to something fresh.
This may lead to conflict with the project managers desire to close out the project in a controlled way and also
capture the lessons learned.

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Question 1 part 2
One important aspect of managing the project environment is understanding the directions
of influencein which the project manager and team must operate to successfully realise the
project. These directions of influence—forwards, backwards, upwards, downwards, inwards,
outwards, and sidewards—are incorporated into the Stakeholder Circle  methodology to
support.
Managing the forwards component involves anticipating and planning while
the backwards component involves developing and maintaining appropriate control
systems, historical records and the explicit and implicit knowledge of others.
Managing upwards involves developing and maintaining robust relationships with those
senior managers whose support is vital to maintain organisational commitment to the
project; not all senior managers are important to project success.
Managing downwards involves managing the team; managing inwards involves seeking
feedback from stakeholders about project and project management matters as well as
practitioner reflection and learning. Managing sidewards involves managing the project
manager’s peers to ensure collaboration, rather than competition.
Managing outwards involves addressing the needs and impacts of a large group of
stakeholders external to the project, and often external to the performing organisation. This
group can include clients or customers of the performing organisation, users of the solution
and their managers, the public, taxpayers, voters, lobby or action groups, government or
regulatory bodies, shareholders, and suppliers as well as less obvious groups such as the
families of team members. Each of these outwards stakeholder groups will have different
requirements of the project. They are grouped in one ‘direction of influence’, but it is
important to clarify their requirements of the project and their impacts on the project as
separate groups.

Project managers usually have very little formal power over stakeholders outside the project
organisation. To be effective, they must develop ongoing relationships with project
stakeholders, and in some cases, with potential project stakeholders. They must focus on
using appropriate aspects of personal power to influence others.
Effective communication is a vital component in the process of building and maintaining
relationships, and is essential for maintaining the support and commitment of all
stakeholders. Project success is linked to the strength of the relationships created by
effective, regular, planned and adhoc communication with all members of the project’s
stakeholder community. Appropriate vehicles of communication include project meetings,
project plans and reports, informal discussions, and formal presentations. Maintaining
ongoing relationships in the form of active communication systems will also provide project
managers with the necessary early warning systems they need to recognise the danger
signals indicating that trouble possibly exists among senior stakeholders. These danger
signals can take many forms, such as interfering in the business of the project without
consultation, not providing support when needed, poor communication links caused by too
many reporting levels between the project manager and the senior stakeholder, and
unfounded promises or commitments. These potentially risky situations need to be closely

9
managed through targeted communication strategies, as defined in the project Stakeholder
Management Plan.
Principle 1: Project managers should consider project stakeholder concerns during decision-
making.

“Managers should acknowledge and actively monitor the concerns of all legitimate stakeholders,
and should take their interests appropriately into account in decision-making and operations”
(Clarkson et al.). It is important in business to be aware of stakeholder diversity. Projects, like
businesses, have multiple stakeholder interests. The project manager must take the time to
identify the different stakeholder types and understand their unique interests. This can be a
challenge for the project manager, especially during large projects with many stakeholders.
However, like in business, this does not mean project managers must address every need of every
stakeholder. At a minimum, the project manager should evaluate stakeholder interests to
determine how they impact the project. Ultimately the project manager should prioritize
stakeholder interests by stakeholder type and give primary attention to core stakeholders.

Principle 2: Project managers should communicate effectively and openly with stakeholders.

“Managers should listen to and openly communicate with stakeholders about their respective
concerns and contributions, and about the risks that they assume because of their involvement with
the corporation” (Clarkson et al.). For a project manager, open communication with project
stakeholders is critical to the success of the project. It is important for the project manager to
realize communication must be two ways. For a project manager to communicate effectively with
project stakeholders the project manager must carefully listen to the needs of the stakeholders;
they must collectively engage in dialog that allows both parties, the project manager or team and
the stakeholders, to openly ask questions and communicate project concerns or issues. However,
the authors warns open communication should not imply a “commitment to collective decision-
making” (Clarkson et al.). Instead, the project manager should use the information gathered during
dialog sessions to gain a better understanding of stakeholder needs and to use that information to
drive better project decisions.

Principle 3: Project managers should tailor communication to meet stakeholder needs.

“Managers should adopt processes and modes of behavior that are sensitive to the concerns and
capabilities of each stakeholder constituency” (Clarkson et al.). There are many different types of
stakeholders. Some stakeholder groups are large and have diverse needs, while others are small
with very specific needs. It is the project managers’ responsibility to identify the needs of each
stakeholder type and then tailor communication to the individual stakeholder type. However,
regardless of the stakeholder type, even through the communication method and audience may
change, the core message behind the communication must remain consistent. For example, the
project manager may change the level of detail when communicating the purpose or objectives of a
project, but the actual core message should remain consistent across communication channels.

Principle 4: Project managers should treat stakeholders fairly.

“Managers should recognize the interdependence of efforts and rewards among stakeholders, and
should attempt to achieve a fair distribution of the benefits and burdens of corporate activity
among them, taking into account their respective risks and vulnerabilities” (Clarkson et al.). The
authors identify two types of stakeholders in the article: voluntary and involuntary. Voluntary
stakeholders are those who participate in the business by choice. Involuntary stakeholders are
those who are impacted by the business regardless of choice. Both stakeholder types are impacted

10
by the changes made during the implementation of projects. In order to ensure that stakeholders
remain engaged in the project, project managers ensure stakeholders receive adequate benefit
from the project and that the risks are managed to a level that the stakeholders are willing to
bear. This may require addition effort on the part of the project manager for involuntary
stakeholders and they may tend to focus on the risks and minimize the potential for rewards.

Principle 5: Project managers should develop partnerships with stakeholders.

“Managers should work cooperatively with other entities, both public and private, to insure that
risks and harms arising from corporate activities are minimized and, where they cannot be avoided,
appropriately compensated” (Clarkson et al.). Change is difficult for most of us. Sometimes changes
produced by a project are wanted by the stakeholders; at other times, the consequences of a
project are undesirable. In order to reduce some of the undesirable results of project changes,
project managers may need help from key stakeholders. Therefore, instead of waiting for problems
to occur, it is important for the project manager to proactively develop relationships with
stakeholders who can help solve project challenges.

Principle 6: Project managers should clearly outline risks for stakeholders.

“Managers should avoid altogether activities that might jeopardize inalienable human rights (e.g.,
the right to life) or give rise to risks which, if clearly understood, would be patently unacceptable
to relevant stakeholders” (Clarkson et al.). When it comes to managing projects, we can not
anticipate everything in advance. Stakeholders do not like surprises, especially when they are
negatively impacted by them. The project manager should identify all stakeholders that are
potentially impacted by project risks and openly dialog with them about the risks. Stakeholders
should collaborate with the project manager to identify potential risk reduction strategies and
should continue to look for ways to identify and reduce risks. However, ultimately, the project
manager is responsible to strike a balance between stakeholder risks and stakeholder rewards. If
the project manager is unable to bring this to a balance that is an acceptable and agreeable by the
stakeholders, the project manager should consider delaying or canceling the project.

Principle 7: Project managers should balance their interests as a stakeholder.

“Managers should acknowledge the potential conflicts between (a) their own role as corporate
stakeholders, and (b) their legal and moral responsibilities for the interests of all stakeholders, and
should address such conflicts through open communication, appropriate reporting and incentive
systems and, where necessary, third party review” (Clarkson et al.). As indicated, project managers
are also a major stakeholder within a project. However, the project manager is in a unique position
as a stakeholder. As the author suggests, with direct access to sometimes privileged information
and with direct influenced over decision making, the project manager is in a position of power and
control (Clarkson et al.).  In addition, the project manager does not want the project to fail; a
project failure could impact the project managers’ job security, rewards, or their responsibilities
and influence within the organization. Therefore, the project manager must find a way to balance
the power and desire for perceived project success with the needs of the project stakeholder. The
project manager should encourage the implementation of a process that will generate this balance.
In doing so, the project manager will gain credibility with stakeholders and within the organization.

11
Question 1 part 1

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