PMPC Lesson 11

Project Management, Planning and
Control
Lesson 11
Project Organisation and
Communications
PowerPoint Slides
by Dr. Chow Li Sze
Last Updated:June 3, 2017 LMS SEGi education group 1

Read (Burkes book):
Chapter 19 - Project communications
Chapter 20 Project organization structure:
Chapter 21 - Project teams
Chapter 22 - Project leadership

Introduction
Project management involves many activities such as

planning, implementing and controlling projects.
All these activities are carried out through people.
Project is successful when it has good leader, who can
get full support from his project teams with proper
organization structure from all communication links.

Successful Project
Develop an organization structure in which it is possible

for people to work and communicate with one another in
such a way that project tasks can be completed
effectively and efficiently.
Gain the support and commitment of the project team and
other stakeholders. Burke (2003) argues that many
projects fail to reach their optimum level of performance,
not because of any lack of equipment or project systems,
but purely because the human factors were not
addressed.

Learning Outcome
Describe, compare and contrast functional, matrix and

pure project organisational structures.
Outline and describe the importance and features of
teams in project work.
Understand and discuss key elements of the project
leadership task, e.g. leadership style, motivation,
delegation, communication and conflict resolution.

Project Organisation Structure

Human Resource Management
PMBOK defines project human resource management

as: the process required to make the most of the
people involved with the project.
APM bok says: Issues typically important in the
structuring of a project include the degree of
project/functional orientation, the extent of the project
management (office) authority.

Intersecting Needs
Projects are performed by

people and managed
through people, so it is
essential to develop an
organization structure
which reflects the needs of
the project (task), project
team and individual.

Organisation Structures
The project organisation structure identifies the

relationship between the project participants, with their
duties, responsibilities and authority.
Because of the dynamic nature of the projects it is
possible to have a number of organisation structures
running concurrently. Consider:
Project team
Project Interfaces
Matrix organisation structure
Responsibility matrix

Project Team
Project team outlines the relation between the project

manager and other team members.

Project Interfaces
Project interfaces diagram outlines the contact

(communication) between the project manager with the
internal and external stakeholders.

Matrix Organisation Structure
Matrix structure presents the temporary project lines of

responsibility overlaying the functional lines of responsibility.
It outlines the
relationship between
the project manager,
functional managers
and their subordinates.

Responsibility Matrix
It is a development of the schedule barchart which clearly

links the work (WBS and/or activities) to the responsible
person (OBS).

WBS / OBS Matrix
WBS/OBS matrix is another format outlining the

integration of the scope of work (work package) with the
responsible person or department.
This matrix ensures that the full scope of work is
assigned and the responsible person for each work
package is identified.
The earned value bubble indicates the planning and
control function at the work package level.

WBS / OBS Matrix

Continuum
Organisation structures are

often quantified by their
lines of responsibility and
lines of authority.
This relationship can be
presented as a continuum
of organisation structures a
range of matrix
organisation structures.

Three main types of project organisational structure are:

Functional Organisation Structure
Pure Project Organisation Structure

This traditional organisation structure is based on the

subdivision of product lines or disciplines into separate
departments, together with a vertical hierarchy.

-Advantages
Advantages of functional organisation structure are:
Efficient use of resources, economies of scale.
In-depth skill specialization and development
Career progress within functional departments
Top manager direction and control
Excellent coordination within functions
High-quality technical problem solving

-Disadvantages
Disadvantages of functional organisation structure are:
Poor communication across functional departments
Slow response to external changes, lagging innovation
Decisions concentrated at top of hierarchy, creating delay
Responsibility for problems is difficult to pinpoint
Limited view of organizational goals by employees
Limited general management training for employees.

The vertical lines represent

the functional departments
responsibility and authority,
while the horizontal lines
represent the projects
responsibility and authority.
Where the lines of

responsibility intersect, this
represents people to people
contact, thus providing
shorter formal lines of
communication.

Matrix Organisation Structure -
Advantages
Advantages of matrix organisation structure are:
More efficient use of resources than in a single hierarchy.
Flexibility, adaptability to changing environment
Development of both general and specialist management
skills.
Interdisciplinary cooperation, expertise available to all
projects
Enlarged tasks for employees.

Matrix Organisation Structure -
Disadvantages
Disadvantages of matrix organisation structure are:
Frustration and confusion from dual chain of command
High conflict between two sides of matrix
Many meetings, more discussion than action
Human relations training needed
Power dominance by one side of matrix

Pure Project Organisation Structure
It is similar in shape to the functional organisational

structure except now all the departments are dedicated
to the project.

Co-ordinating Matrix
As refer to the matrix organisation structure (previous

slide), it gives little formal authority to the project
coordinator to manage the project, control resources, or
make decisions.
In this situation, the best approach may be offer a co-
ordinating service, identify problem areas, and facilitate
the project management process through
communication skills and interpersonal skills. Hence, use
the co-ordinating matrix.

Overlay Matrix
Also called the balanced matrix.

The project manager negotiate with the functional
departments for resources to implement the project.
The project manager would be on the same level of
seniority as the functional managers which puts the
project manager in an intersecting position because
the project manager may have sufficient seniority to be
held responsible for the project, but does not have formal
authority over the functional managers who own the
resources.

Secondment Matrix
The project manager has a wide range of powers over

the whole project.
Although the project manager would usually be senior to
the functional managers, they would still need to
negotiate with them for the use of their resources.
During the secondment the functional personnel would
formally report to the project manager.

Responsibility Authority Gap
Project manager needs to cooordinate across the organisation

and integrate specific resources located in the functional
departments.
To achieve this, the project manager must have both a fully
integrated information and control system and the means of
addressing the responsibility authority gap.
Responsibility may be defined as feeling obliged to perform
assigned work, while authority is the power to carry out the work.
Authority gap is when you are given responsibility, but do not have
sufficient authority to issue instruction to make the work happen.

Responsibility Authority Gap
Ideally project managers should be competent in all

areas of authority for continuing success.
The project managers leadership ability is usually
expressed in terms of influencing the behaviour and
attitudes of the project team members, the effectiveness
of a leader is therefore dependent to some extent on
their power.

Summary Project Organisation Structure
The matrix structure is considered by many practitioners

to be the natural project organisation structure.
Clients prefer to deal with one manager the project
manager as the single point of responsibility.
Acquiring power outside formal authority is the key to
successful project management.

Project Teams

Project Team Definition
PMBOK defines team development as: both

enhancing the ability of stakeholders to contribute as
individuals as well as enhancing the ability of the team to
function as a team,.
APM bok defines teamwork as: effective teamwork is
generally at the heart of effective project management.

Project Team Structure
Project team is defined as a number of people who

work closely together to achieve shared common goals.
Through interaction,
they strive to enhance
their creativity,
innovation, problem-
solving, decision-
making, morale and
job performance.

Purpose of Project Teams
Project teams are an efficient and effective way of

managing projects, where efficiency implies performing
the work well, and effectiveness implies performing the
right work.
To achieve the schedule the volume of work must be
distributed amongst a number of people.
The scope of the project may require a range of skills
which any one person is unlikely to have.
Brainstorming and discussions are a good example of
interactive team work to generate creative ideas and
solve problems.

Purpose of Project Teams
Once project team has made a collective decision, the

team will be committed to support their course of action.
Project teams generally take riskier decisions than an
individual would on their own.
Project teams enhance motivation.
Project teams support other team members when they
need help both technically and emotionally.

Individuals Purpose of Team
Membership
An individual joining a team would benefit the following:
Satisfying an individuals social or affiliation needs.
Sharing risk with other team members.
Establishing self-esteem.
Gaining support to carry out their particular goals.
The team provides a psychological home for the individual.

Manager
The qualities of a good manager would demonstrate

abilities that are almost certainly mutually exclusive to
any individual that they must be:
Highly intelligent but not too clever.
Forceful but also sensitive to peoples feelings
Dynamic but also patient.
A fluent communicator but also a good listener
Decisive but also reflective
An expert on a wide range of different fields.

Benefit of Teams
But, if no individual can combine all the qualities of a good

manager described earlier, a team of individuals certainly
could, because:
It is not the individual but the team that is instrumental in
sustaining and enduring management success.
A team can renew and regenerate itself through new recruitment
A team can also build up a store of shared and collectively owned
experiences, information and judgment
Many people are more successful working within a team or
partnership than working alone.
Team synergy generates more output than sum of the individual
inputs.
The team can offer a wide range of technical support.

Team Size
The ideal team size depends very much on its

application.
Teams tend to grow in size until some magic number is
reached then they subdivide.
The experts suggest this is between 5 to 10 people.

Why Teams Win
A successful team would have the following

characteristics:
The team leader had an appropriate management style for
the project, and was not challenged by other team members.
There was a chairman type person who encouraged all the
team members to contribute.
At least one member of the team generated innovative ideas
as a means to solve problems and identify new products and
new markets.
There was a spread of mental abilities.
There was a spread of personalities which gave the team a
balanced appearance.

Why Teams Fail
A single factor evident in all unsuccessful teams was low

mental ability.
The low mental ability teams were not able to:
Take advantage of opportunities
Were poor at problem-solving
Unable to change with the times.

Team Development Phases
Project teams pass through a number of distinctive

development phases or stages:
Forming
Storming
Norming
Performing
Maturing
Declining

Team Development Phases

Role of the Project Manager
Companies prefer their managers to be technical experts

in the field of the project, as it enables the managers to
confirm technical decisions themselves.
If the project manager knows and understands the
technical issues of the project they will be in a better
position to apply judgement and forecast problems.
Team selection can be based on both human
compatibility and technical ability.
Project manager will be able to gain respect from the
team by demonstrating not only good management but
also technical expertise.

Summary Project Team
Project teams are characterised by positive interaction.

The ability to generate innovative ideas is essential for
problem-solving and the success of the project.
Employers prefer the project manager to have technical
ability in the field of the project.

Project Leadership

Leadership
A leader is one who knows the way, goes the way, and
shows the way.
If your actions inspire others to dream more, learn
more, do more and become more, you are a leader.
A great leader fulfill his vision from his passion, not
position.
A good leader inspires people to have confidence in the
leader. A great leader inspires people to have confidence
in themselves.

Leadership
The APM bok says, leadership is about setting goals

and objectives and generating enthusiasm and
motivation amongst the project team, and stakeholders,
to work towards those objectives.
The leadership style used can profoundly effect
employee morale and productivity, so that the success of
a project may be directly dependent on good leadership.

Leadership Styles
Leadership styles may be considered as a continuum

from autocratic to democratic.
The continuum of
leadership styles
relating to decision-
making may be
subdivided into a
number of
categories as
shown here:

Decision-making Continuum
The 6 stages of decision-making continuum are:

Autocratic (isolated decision): The project manager solves the
problem or makes the decision on his own, using information
available to him at the time. There is no communication with the
team members.
Autocratic (informed decision): The project manager obtains the
necessary information from the team members then decides on
the solution to the problem on his own.
Consultative Autocratic (discuss with individuals): The project
manager shares the problem with the team members individually,
gathering their ideas and suggestions. Then the project manager
makes the decision on his own.

Decision-making Continuum
Consultative Autocratic (discuss with team): The project

manager shares the problem with the team members as a
group. Then the project manager makes the decision on his
own.
Democratic: The project manager shares the problem with the
team members. Then together they make the decision as a
group majority vote.
Laissez-Faire: The project manager gives the problem to the
team and lets them make decision themselves. This is a policy
of non-interference.

Action-Centred Leadership
Action-Centred leadership focuses on the 3 basic project needs:

Individuals needs
Teams needs
Tasks needs
These needs are presented as intersecting circles to indicate the
separate needs and mutually overlapping needs.
It combines the motivation theories for

the individuals needs with the team
building theories for the teams needs
and the project planning and control
techniques for the tasks needs.

Motivation
Motivation is an inner force that causes or induces

someone to be inspired to do something.
The managers task is to influence the work situation in
such a way as to encourage the individuals to inspire
and motivate themselves to achieve the projects goals.
When we assess a persons ability to complete a job
successfully it can be subdivided into ability and
commitment:
Performance = Ability x Commitment

Maslows Hierarchy of Needs
Maslow made the assumption that people work in order

to satisfy various needs.
He stated that motivation is an unconscious attempt on
behalf of the individual to satisfy certain inner needs. He
expressed this in the form of a hierarchy.
The hierarchy illustrates a priority of needs.
Maslow indicated that one is always striving to achieve
the higher order needs, but this can only be achieved
once the lower order needs have been satisfied.

Maslows Hierarchy of Needs
Self-fulfilment and self-realisation.

Creativity, achievement, competence,
productivity.
Ego needs. Recognition, respect,
prestige, status, attention,
importance, appreciation.
Love needs with family and close
friends. Approval & acceptance of
collegues.
Economic security, protection
from accident, safe
environment.
Needs of the body to survive
and self-preservation, i.e. air,
good.

Self-actualised
Maslow described self-actualised people as having the

following characteristics:
A more efficient perception of reality.
Increased acceptance of self, of others and of nature.
Spontaneity, simplicity and naturalness.
Problem-centred rather than ego-centred.
Increased detachment and desire for privacy.
Ability to be independent of their physical and social
environment
Freshness of appreciation and richness of emotional
reaction.

Self-actualised
Higher frequency of peak mystic, or transcendent

experiences.
Increased identification with the feeling of mankind.
Deeper, more profound interpersonal relationship.
A more democratic character structure.
Strongly ethical able to distinguish clearly between
means and ends
A natural, spontaneous creativity.

Motivation Cycle
The motivation cycle outlines the dynamic and changeable

nature of motivation.

Herzbergs Motivation & Hygiene Factors
Frederick Herzberg is a consultant for AT&T. He

preached Job enrichment and individual development.
His theory was designed to improve the understanding of
working people, what factors determine job satisfaction
and what determines job dissatisfaction.
The term motivation indicates factors that increase your
commitment to the job, while hygiene factors will cause a
sense of grievance leading to your job dissatisfaction.

Herzbergs Motivation & Hygiene Factors
x axis indicates the

frequency with which the
factor was reported as
causing high morale or
causing a sense of
grievance.
The factors are listed

vertically, sorted by high
morale, while the depth of
each box indicates how
long the feeling lasted.

Conflict
All subjects are subjected to some degree of conflict, so

it is important for the project manager to recognise the
symptoms of conflict:
Poor communication laterally and vertically. Decisions taken on
incomplete information.
Inter-group hostility and jealousy expressed as They never tell
us anything or They expect us to know by Intuition.
Interpersonal friction affects the relationships between
individuals.
Escalation of arbitration by senior management.
Proliferation of rules and regulations.
Low morale expressed as frustration and inefficiency.

Control of Conflict
When symptoms have been identified that cannot be

addressed by rearranging the ecology to create an
amenable working environment, then consider:
Arbitration: Conduct arbitration at a low level. This solution is
useful when the conflict is apparent and specific.
Co-ordination Device: A position is created in the company
between the conflicting parties.
Negotiation: The conflicting parties negotiate and trade items of
behaviour, eg. I will stop doing X if you stop doing Y. This
method may leave the underlying problem untouched.
Separation: Use this solution if the true cause of the conflict is two
incompatible individuals, incompatible in personality.

Control of Conflict
Withdrawal & Neglect: Retreating from actual or potential

conflict situation. This is not a solution, but provide a cooling
off period while a better solution could be found.
Smoothing: Smoothing emphasizes the use of agreement
rather than focusing on the differences of opinion.
Rules & Regulations: Compile rules, regulations and
procedures by negotiation and agreement.
Compromising: Bring some degree of satisfaction.
Confrontation: Greatly increase understanding of peoples
view.
Forcing
Problem-solving

Delegation
Skilful delegation is the key to effective project

management.
Through delegation the project manager can improve
project team efficiency, develop employee ability and
contribute to the growth of the company.
Delegation has three basic elements:
Assign a function, duty or task to an employee.
Allocate sufficient authority so that the employee can command
the resources necessary to accomplish the assignment.
Gain commitment from the employee for the satisfactory
completion of the task.

Delegation
Method of delegation:
Develop a detailed plan for delegation.
Obtain the supervisors approval for your delegation plan.
Establish a climate of mutual confidence and trust.
Select the function, duties and tasks to be delegated and
assigned.
Establish clear lines of authority and responsibility and ensure
that they understand.
Adopt a constructive attitude, demonstrate patience when a
subordinate makes a mistake.
Monitor performance and provide frequent feedback.
Reward effective delegation.

Practice
1. List the main symptoms of conflict.
2. What are the three basic elements of effective

delegation?

Answers:
1. The main symptom of conflict:

Poor communication laterally and vertically. Decisions
taken on incomplete information.
Inter-group hostility and jealousy
Interpersonal friction affects the relationships between
individuals.
Escalation of arbitration by senior management.
Proliferation of rules and regulations.
Low morale expressed as frustration and inefficiency.

Answers:
2. The three basic elements of effective delegation are:

Assign a function, duty or task to an employee.
Allocate sufficient authority so that the employee can
command the resources necessary to accomplish the
assignment.
Gain commitment from the employee for the satisfactory
completion of the task.

Project Communications

Communication
Communication is what we do every day.

For a project to succeed there is a continuous need for
communication to issue instructions, solve problems,
make decisions, resolve conflicts, and keep everyone
supplied with information they need.

Project Communication
PMBOK defines Project Communication Management

as: the process required to ensure timely and
appropriate generation, collection, dissemination,
storage and ultimately disposition of project information.
It provides the critical links among people, ideas and
information that are necessary for success.

Communication
Project manager is in the key position to develop and

maintain all the communication links, both inside the
company and project team, and outside the company
with client, contractors, suppliers and other stakeholders.
Through communication team members share
information and exchange ideas and influence attitudes,
behaviors and understanding.

Communication
Information costs money, but lack of information could

be even more expensive.
The cost of communication failure may be quantified as:
poor problem-solving, poor decision-making based on
incomplete information, rework, downtime.
A trade-off needs to be established between the cost of
mistakes and the cost of supplying good information.

Communication media
Email
Web site
B2B procurement
Real time progress reports
Video conferences
Mobile email and internet connections
Mobile communication nationally and internationally.

Communication Components
Communication is essentially the interpersonal process of

sending and receiving messages. The key components are
shown below:
Communication Process

Communication Theory
Communication components include:

Sender
Encoding: process of converting thoughts, feelings and ideas into
code or cipher, which are the words and phrases to express
ourselves.
Medium: vehicle or channel to convey the message.
Non-verbal communication: a picture is worth a thousand words
and actions speak louder than words. It could be:
body posture
hand movements
facial expression
eye contact
use of interpersonal space

Communication Theory
Receiver
Decoding: process of converting the message back into an
readable format.
Noise, Filters & Perceptions: Noise refer to the physical
distractions that interfere with the communication. Filters and
Perceptions come from our backgrounds and personalities.
Feedback: It is a good manners to not only acknowledge receipt
of the communication, but also give the sender a time frame for
a reply to any questions.

Communication plan
Communication planning pulls the project together.

Project manager and project office are at the heart of the
projects information and control system.
Project manager develops the projects communication
plan and lines of communication, which outlines:
Who (sender & receiver responsibility & authority)
What (scope & format)
How (email, document, telephone, meeting, presentation)
When (schedule)
Feedback
Filing

Lines of Communication
Lines of communication may be defined as a formal or

informal link between two or more people, departments,
companies, suppliers, contractors or stakeholders.
It tend to follow the

organisation chart,
which outlines the
project managers
position, and also
implies
responsibility,
authority and who
reports to whom.

Information & Control System
The projects information and control system is the life blood

of the communication plan, and the projects planning and
control cycle.
For the information flow

to be effective, all parties
must be aware that they
are part of a linked
system.
Effective communication
in the project context
would use structured
reporting format.

Project Reporting
Project data can be collected, processed & reported in many ways:

Status report: quantify the position of the project. It may be
specific and focus on the key areas like time, cost and quality.
Variance report: quantify the difference between actual and

planned.

Project Reporting
Trend report: tells the manager where the project is, but not
where the project is going.
Earned value: Integrates the variable parameter of cost with
time.
Exception report: flag an occurrence or event which is outside
predetermined control limits.
Monthly report

Document Control
The purpose of document control is to make sure that key

documents are sent timeously to the key people & is proof of
the delivery.
Transmittal note or
delivery note is sent
with every controlled
document.
The addressee must

sign and return a copy
to confirm the document
has been received.

Project Meetings
The challenge is to manage the project meetings

efficiently and effectively.
5 basic reasons for holding a meeting:
Information sharing; exchange of data.
Problem-solving; brainstorming, generating ideas, options and
alternatives.
Decision-making; select a course of action, gain commitment
from the team.
Planning; what, who, when , how, where and why.
Evaluation; monitoring, measuring, reviewing & forecasting.

Handover Meeting
The purpose of the handover meeting is to formally

commence the project, phase or subcontract.
A typical agenda may include:
Project Charter Document Control
Closeout Report Configuration Management
Project OBS Payments
Communication Contract
Commissioning
Build Method
Schedule
Reporting
Meetings
Instructions

Project Progress Meeting
Progress meeting provide an effective forum for the project

manager to co-ordinate, integrate and manage the projects
participants. A typical progress meeting would contain:
Agenda
Minutes
Actions
Progress
Configuration Management
Document Control
Claims
Quality
Payments

Summary
This lesson have acknowledge the importance of people

in the successful completion of projects. It has
considered:
Functional, Matrix and Pure Project approaches to organising
the projects.
The nature and value of project teams.
The need for flexibility in leading and motivating project team
members.
The importance of communications and the project managers
responsibility for establishing effective lines of communication.
Different types of project reports.

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Project Management, Planning and

Last Updated:June 3, 2017 LMS SEGi education group 1

Last Updated:June 3, 2017 LMS SEGi education group 2

Project management involves many activities such as

Last Updated:June 3, 2017 LMS SEGi education group 3

Develop an organization structure in which it is possible

Last Updated:June 3, 2017 LMS SEGi education group 4

Describe, compare and contrast functional, matrix and

Last Updated:June 3, 2017 LMS SEGi education group 5

Last Updated:June 3, 2017 LMS SEGi education group 6

PMBOK defines project human resource management

Last Updated:June 3, 2017 LMS SEGi education group 7

Projects are performed by

Last Updated:June 3, 2017 LMS SEGi education group 8

The project organisation structure identifies the

Last Updated:June 3, 2017 LMS SEGi education group 9

Project team outlines the relation between the project

Last Updated:June 3, 2017 LMS SEGi education group 10

Project interfaces diagram outlines the contact

Last Updated:June 3, 2017 LMS SEGi education group 11

Matrix structure presents the temporary project lines of

Last Updated:June 3, 2017 LMS SEGi education group 12

It is a development of the schedule barchart which clearly

Last Updated:June 3, 2017 LMS SEGi education group 13

WBS/OBS matrix is another format outlining the

Last Updated:June 3, 2017 LMS SEGi education group 14

Last Updated:June 3, 2017 LMS SEGi education group 15

Organisation structures are

Last Updated:June 3, 2017 LMS SEGi education group 16

Three main types of project organisational structure are:

Last Updated:June 3, 2017 LMS SEGi education group 17

This traditional organisation structure is based on the

Last Updated:June 3, 2017 LMS SEGi education group 18

Last Updated:June 3, 2017 LMS SEGi education group 19

Last Updated:June 3, 2017 LMS SEGi education group 20

The vertical lines represent

Where the lines of

Last Updated:June 3, 2017 LMS SEGi education group 21

Last Updated:June 3, 2017 LMS SEGi education group 22

Last Updated:June 3, 2017 LMS SEGi education group 23

It is similar in shape to the functional organisational

Last Updated:June 3, 2017 LMS SEGi education group 24

As refer to the matrix organisation structure (previous

Last Updated:June 3, 2017 LMS SEGi education group 25

Also called the balanced matrix.

Last Updated:June 3, 2017 LMS SEGi education group 26

The project manager has a wide range of powers over

Last Updated:June 3, 2017 LMS SEGi education group 27

Project manager needs to cooordinate across the organisation

Last Updated:June 3, 2017 LMS SEGi education group 28

Ideally project managers should be competent in all

Last Updated:June 3, 2017 LMS SEGi education group 29

The matrix structure is considered by many practitioners

Last Updated:June 3, 2017 LMS SEGi education group 30

Last Updated:June 3, 2017 LMS SEGi education group 31

PMBOK defines team development as: both

Last Updated:June 3, 2017 LMS SEGi education group 32

Project team is defined as a number of people who

Last Updated:June 3, 2017 LMS SEGi education group 33

Project teams are an efficient and effective way of

Last Updated:June 3, 2017 LMS SEGi education group 34

Once project team has made a collective decision, the

Last Updated:June 3, 2017 LMS SEGi education group 35