Operations and Supply Chain Management The Core

130 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
∙ A critical mass of specialized functional-area experts creates synergistic solutions to
a project’s technical problems.
Disadvantages
∙ Aspects of the project that are not directly related to the functional area get shortchanged.
∙ The motivation of team members is often weak.
∙ The needs of the client are secondary and are responded to slowly.
Matrix project
A structure that
blends the functional
and pure project
structures. Each
project uses people
from different
functional areas. A
dedicated project
manager decides
what tasks need
to be performed
and when, but the
functional managers
control which people
to use.
Matrix Project The classic specialized organizational form, the “matrix project,” attempts
to blend properties of functional and pure project structures. Each project utilizes people
from different functional areas. The project manager (PM) decides what tasks and when they
will be performed, but the functional managers control which people and technologies are
used. If the matrix form is chosen, different projects (rows of the matrix) borrow resources
from functional areas (columns). Senior management must then decide whether a weak,
balanced, or strong form of a matrix is to be used. This establishes whether project managers
have little, equal, or more authority than the functional managers with whom they negotiate
for resources.
Research
and
Development
President
Engineering Manufacturing Marketing
Manager
Project A
Manager
Project B
Manager
Project C
Advantages
∙ Communication between functional divisions is enhanced.
∙ A project manager is held responsible for successful completion of the project.
∙ The duplication of resources is minimized.
∙ Team members have a functional “home” after project completion, so they have
fewer life-after-project concerns than if they were a pure project organization.
∙ Policies of the parent organization are followed. This increases support for the project.
Disadvantages
∙ There are two bosses. Often, the functional manager will be listened to before the
project manager. After all, who can promote you or give you a raise?
∙ It is doomed to failure unless the PM has strong negotiating skills.
∙ Suboptimization is a danger, as PMs hoard resources for their own project, thus
harming other projects.
Note that regardless of which of the three major organizational forms is used, the
project manager is the primary contact point with the customer. Communication and