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Masarykova univerzi ta
Ekonomicko-sprvn fakultaStudijn obor: Podnikov ekonomika a management
INTERNATIONAL PROJECT MANAGEMENT-
ORGANIZATIONAL STRUCTURE
Bakalsk prce
Vedouc bakalsk prce: Autor:
Sylva kov TALPOV Katarna VILLNOV
Brno, 2013
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Masarykova univerzita
Ekonomicko-sprvn fakulta
Katedra podnikovho hospodstv
Akademick rok 2012/2013
ZADN BAKALSK PRCE
Pro: VILLNOV Katarna
Obor: Podnikov ekonomika a management
Nzev tmatu: INTERNATIONAL PROJECT MANAGEMENT-ORGANIZATIONAL STRUCTURE
Z s a d y p r o v y p r a c o v n :
Aim:
The aim of this thesis is an organizational structure analysis of a selected international projectand a formal framework elaboration based on the state of the organizational structure,eventually finding its weaknesses and a proposal of improvements, all with regard to theinternational aspect of the project. Work procedure and methods used: relevant literatureresearch, organizational structure analysis, SWOT analysis, proposal of improvementsincluding economic point of view. An international project is selected by the student after theconsultation with the supervisor.
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Rozsah grafickch prac: dle pokyn vedoucho prce
Rozsah prce bez ploh: 3545 stran
Seznam odborn literatury:
BLAEK, Ladislav.Management.vydn prvn. Praha: Grada, 2011. 191 s.ISBN 978-80-247-3275-6.
DERESKY, Helen.International management :managing across borders and cultures: text and cases. 7th ed. Boston: Prentice Hall, 2010. xii, 468 s. ISBN 9780136098676.
DOLEAL, Jan a Pavel MCHAL a Branislav LACKO.Projektov managementpodle IPMA. 1. vyd. Praha: Grada, 2009. 507 s. ISBN 978-80-247-2848.
GOODERHAM, Paul N. a Odd NORDHAUG.International management :cross-boundary challenges. 1st ed. Malden: Blackwell, 2003. xiii, 473. ISBN 0-631-23341-5.
PHATAK, Arvind V. a Rabi S. BHAGAT a Roger J. KASHLAK.Internationalmanagement :managing in a diverse and dynamic global environment. 2nd ed.Boston: McGraw-Hill/Irwin, 2009. xvii, 540. ISBN 9780073210575.
Vedouc bakalsk prce: Ing. Bc. Sylva kov Talpov
Datum zadn bakalsk prce: 28. 11. 2012
Termn odevzdn bakalsk prce a vloen do IS je uveden v platnm harmonogramuakademickho roku.
vedouc katedry dkan
V Brn dne 28. 11. 2012
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Jmno a pjmen autora: Katarna Villnov
Nzev bakalsk prce: Management mezinrodnho projektu- Organizan struktura
Nzev prce v anglitin: International Project Management- Organizational Structure
Katedra: Podnikov ekonomika a management
Vedouc bakalsk prce: Ing. Bc. Sylva kov Talpov, Ph.D
Rok obhajoby: 2013
Anotace
Cieom bakalrskej prce Management mezinrodnho projektu- Organizan struktura je,ako u nzov napoved, analyzova organizan truktru vybranho medzinrodnho
projektu. Prv as poskytuje teoretick vchodisko ktomuto problmu, ako aj kritria, ktor
s pouit kposdeniu efektivity organizanej truktry. Praktick as sa sstred na projekt
HELPS, ktor je medzinrodnm projektom s partnermi zo strednej Eurpy. Na zskanie
potrebnch dt na vskum bol pouit dotaznk. Odpovede s porovnan skritriami. Na
zklade SWOT analzy je odporuen vhodn stratgia.
Annotation
The aim of the thesis International Project Management- Organizational Structure is, as
the name already indicates, to analyse the organizational structure of a selected international
project. The first part provides the theoretical background to this issue as well as criteria that
are used to assess the organizational structure effectiveness. The practical part focuses on
the HELPS project, which is an international project involving partners from Central Europe.
The questionnaire was used in order to gather the data necessary for the research. The answers
are compared with the criteria. The appropriate strategy is recommended on the basis of
the SWOT analysis.
Klov slova
Manament, projekt, medzinrodn, organizan truktra, efektivita
Keywords
Management, project, international, organizational structure, effectiveness
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Declaration
I hereby declare that I wrote this thesis, International Project Management-
Organizational Structure, myself using the referenced sources only. I also agree with lending
and publishing of this thesis.
In Brno, May 17, 2013
t he s igna tu re o f the au thor
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I would like to thank my supervisor, Ing. Bc . Sylva kov Talpov, Ph.D., for her
numerous advices and support while writing this thesis.
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Table of Contents1 Introduction .............................................................................................................................. 9
2 Project Management .............................................................................................................. 11
2.1 Project Based Management ............................................................................................ 11
2.2 Project ............................................................................................................................. 12
2.3 Project Objective ............................................................................................................. 14
2.4 Project Team ................................................................................................................... 15
2.4.1 Organizational Workflow ........................................................................................ 16
2.4.2 Project Manager ....................................................................................................... 16
2.5 Project Restrictions ......................................................................................................... 16
3 International Management ..................................................................................................... 19
3.1 Culture ............................................................................................................................ 19
3.2 Communication ............................................................................................................... 20
4 Organizational Structure of a Project ..................................................................................... 23
4.1 Organizational Structures ............................................................................................... 23
4.1.1 Project Manager as Staff .......................................................................................... 23
4.1.2 Project Manager as Consultant ................................................................................ 24
4.1.3 Project Management as Stuff Function .................................................................... 24
4.1.4 Matrix Organizational Structure .............................................................................. 25
4.1.5 Task Force ................................................................................................................ 26
4.1.6 Totally Projectized Organization ............................................................................. 27
4.2 Comparison of Organizational Structures ....................................................................... 28
4.3 Criteria for the Selection of the Most Appropriate Organizational Structure ................. 29
4.4 Measures of Organizational Structure Effectiveness ...................................................... 31
5 SWOT Analysis ..................................................................................................................... 33
6 The HELPS Project ................................................................................................................ 35
6.1 Basic Characteristics of the HELPS Project ................................................................... 35
6.2 Project Funding ............................................................................................................... 37
6.3 Project Participants ......................................................................................................... 37
6.4 Working Packets ............................................................................................................. 39
7 Organizational Structure Analysis ......................................................................................... 41
7.1 Research .......................................................................................................................... 42
7.2 Evaluation ....................................................................................................................... 47
7.3 SWOT Analysis .............................................................................................................. 50
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8 Results and Recommendations .............................................................................................. 53
8.1 Results ............................................................................................................................. 53
8.2 Recommended SWOT Strategy ...................................................................................... 53
8.3 WO Strategy ................................................................................................................... 53
9 Conclusion ............................................................................................................................. 57
Works Cited .............................................................................................................................. 59
Literary Sources .................................................................................................................... 59
Internet Sources .................................................................................................................... 60
List of Figures and Tables ........................................................................................................ 63
Figures .................................................................................................................................. 63
Tables .................................................................................................................................... 63
List of Enclosures ..................................................................................................................... 65
Enclosure 1- Questionnaire ................................................................................................... 65
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1 IntroductionThe thesis deals with the organizational structure analysis of an international project.
It is divided into two parts. The first one is theoretical. It provides the basis for the practical
part. First of all, it focuses on specific features of a project management and provides the
definition of the term project. This chapter is followed by the characteristics of international
aspects. The main attention is paid to the organizational structures, their types and
specifications, as well as the criteria for selection of an appropriate structure. The theoretical
part ends by choosing the criteria that are used to assess the organizational structure
effectiveness in a concrete international project together with setting the theoretical basis to
the SWOT analysis.
The practical part provides the description of the HELPS project, which is an
international project involving 8 countries of Central Europe. The organizational structure of
this project is analysed on the basis of a questionnaire that has been filled in by the project
partners. The real situation is compared with the criteria. The organizational structure analysis
is followed by the SWOT analysis and a recommended strategy. This is done in order to
verify the main hypothesis: The organizational structure of the project is not effective with
regard to the project objectives.
The methods that are used in the thesis are:
Descriptive method- it is used to set theoretical basis as well as to depict the current
situation in the concrete project. The theory is based on the literature research. The
situation in the HELPS project is described according to the questionnaire that was
sent to 12 project partners.
Analytic method- it is used for the further analysis of the real situation in the project.
The organizational structure analysis is accompanied by the SWOT analysis that
identifies not just internal factors, which influence the effectiveness of the
organizational structure, but also external factors- opportunities and threats.
Comparative method- it is used to compare the real situation with the selected criteria
in order to assess the organizational structure effectiveness.
Deductive method- it is used to draw conclusions. On the basis of previous methods
the recommendations are provided.
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2 Project Management
2.1 Project Based Management
Since there are persistently many changes in the world, every company does its best to
cope with this fact. One of the best possibilities how to react promptly and effectively to
changing conditions, is by implementing project management. Kerzner says that nowadays,
every company uses project management. The only difference is whether they are just good at
project management or whether they do it excellently.1
There are many definitions of the project management. One of the worlds most
respected associations uniting professional project managers, Project Management Institute
(PMI), defines project management as the application of knowledge, skills and techniques toexecute projects effectively and efficiently. Its a strategic competency for organizations,
enabling them to tie project results to business goals and thus, better compete in their
markets.2
Another useful definition provided by Lester adds some more features of the project
management: The planning, monitoring and control of all aspects of a project and
the motivation of all those involved in it, in order to achieve the project objectives within
agreed criteria of time, cost and performance.3
What the both these definitions have in common, is the fact that the project
management involves all the necessary activities using someones mental and physical
abilities, as well as appropriate technologies and methods in order to reach an aim, which is
the desirable state or change. The identification of a final goal is the very first step in
preparation of a project and it is discussed more deeply in the chapter 2.3 Project Objective.
In addition to this, Svozilov identifies five elements of project management, whoseinteraction represents all the effort, knowledge, skills and methods applied during the project
management process. These elements are: project communication, team-work, project
1 KERZNER, H. BELACK, C.Managing complex projects. Hoboken, N.J: Wiley, 2010. ISBN 978-047-0927-991.p. XV.2Project Management Institute [online]. 2013 [cit. 2013-03-04]. Available from WWW:3LESTER, A.Project management, planning and control managing engineering, construction andmanufacturing projects to PMI, APM and BSI standards. 5th ed. Amsterdam: Elsevier/Butterworth-Heinemann, 2007. ISBN 978-008-0465-883.p.5.
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lifecycle, project management parts (ten techniques and tools of project management applied
within a project life cycle) and organizational accountability.4
Project based management brings several advantages, but it is not always
implementable. The comparison of traditional management methods and project management
shows the following table:
Table n.1- Traditional management and project management comparison
Traditional management Project management
Financial resources provision Limited funding with respect to project needs
Predictability Uncertainty
Uniformity, repeatability Uniqueness
Asset management Cost controlling
Result controllingControlling of procedures with respect to a
plan
Quality management according to results
inspection
Quality management provided by a plan and
preventive measures
Fixed number of workers Variable number of workers
Success measured by absolute performance in
selected indicators
Success measured by the degree of objectives
fulfilment
According to: SMUTN, P. HLEK, I.Zklady zen projekt. 1. vyd. Brno: Masarykovauniverzita, 2008, 87 s. Svt environmentlnch souvislost. ISBN 978-802-1045-866.p. 20.
It is obvious that project management is not suitable in predictable situations, which
involve repeatable, routine activities (e.g. regular control and maintenance of machines or
repeated production), activities under stable conditions, those without considerable risks and
activities that last for a very long time.
2.2 Project
The term project is a key word for further discussion and the practical part of this
thesis also deals with an international project and that is why it is necessary to define this
4SVOZILOV, A.Projektov management. 2., aktualiz. a dopl. vyd. Praha: Grada, 2011, 380 s.Expert (Grada). ISBN 978-80-247-3611-2.p. 19-20.
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term. Every project is a unique sequence of events provided in order to achieve an objective
within a certain period of time. Kerzner states several project characteristics. These are5:
a specific objective of a project
exact start and end dates
financial resources (limited funding)
human and nonhuman resources
quality limits
and finally multifunctional nature of a project
Project objectives are various. Projects may be aimed to build a new company, to
introduce new products or technologies, to make a business plan, to build a housing estate or
a sport centre or just to organize some great social events. There are many possibilities and
each of them requires an individual approach and that is why every project is unique.
However all possible project objectives have one common feature- they have to be known in
advance.
As far as the time is concerned, every project must have stated its beginning and end.
The time is set also in advance during the planning and preparation of a project. It is not
an easy task and there are several methods used for performing the time analysis of a given
project. One of them is Critical Path Method (CPM). According to Richman, it is the most
often used method to plan a project. Its basic principle is to identify all the activities that are
needed for project fulfilment, as well as their duration. Using the network of all these
activities, the critical path is the path that requires the longest time, which is in fact
the minimal time that is necessary to complete the project.6
It is also very important to secure financial resources. Project funding is different than
enterprise economy. Projects have to very often apply for a grant or find some investors,
because they are not able to raise initial capital themselves. In case of the HELPS project that
is to be examined, 80% of total project budget is provided by European Regional
Development Fund.7 Another aspect of project funding is time. Not only financial resources,
5KERZNER, H. BELACK, C.Managing complex projects. Hoboken, N.J: Wiley, 2010. ISBN 978-047-0927-991. p. 36RICHMAN, L. Successful project management. 3rd ed. Saranac Lake, N.Y.: American ManagementAssociation, c2011, xx, 206 p. ISBN 9780761215189. p.87-88.7ZDRUENIE MIEST A OBC SLOVENSKA: Projekt HELPS [online]. Actualization 5.3. 2013 [cit.2013-03-05] Available from WWW: < http://www.zmos.sk/projekt-helps.phtml?id3=73582 >
http://www.zmos.sk/projekt-helps.phtml?id3=73582http://www.zmos.sk/projekt-helps.phtml?id3=73582 -
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but also time during which it is possible to draw the money from funds is limited and must be
taken into account.
The term, human resources, means the usage of human labour, knowledge, skills and
abilities. Nonhuman resources include all the other ways and means such as finance,
techniques, methods and tools.
The term multifunctional is explained by Kerzner as a specific characteristic of
complex and international projects. There are always several areas that a project has to go
through as well as more companies or institutions that are participating in a project. So
the principal task of a project manager is to incorporate and manage all these subjects and
performance.8
2.3 Project Objective
As it has already been mentioned, setting of project goals or objectives is the first and
the most important step. General characteristics of an appropriate objective should accomplish
the following requirements known under the acronym SMART9:
S- specific, significant, stretching
M- measurable, meaningful, motivational
A - agreed upon, attainable, achievable, acceptable, action-oriented
R - realistic, relevant, reasonable, rewarding, results-oriented
T- time-based, timely, tangible, trackable
One project does not necessarily have to have only one goal. It is possible to reach
more goals within one project. Sometimes fulfilment of partial objectives leads to
accomplishment of an objective of a higher level. Blaek says that such objectives are in
hierarchical relations and the reason of completion of hierarchically lower objectives is to
achieve the higher one. He also mentions three types of relations when objectives are
equivalent10:
8KERZNER, H. BELACK, C.Managing complex projects. Hoboken, N.J: Wiley, 2010. ISBN 978-047-0927-991. p. 39Project Smart[online]. 2013 [cit. 2013-03-06]. Available from WWW:10BLAEK, L.Management: organizovn, rozhodovn, ovlivovn. 1. vyd. Praha: Grada, 2011,191 p. Expert (Grada). ISBN 978-80-247-3275-6.p. 97-98.
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complementary (completion of one objective contributes to completion of another
one)
competitive (objectives are in a contradiction and it is not possible to achieve all of
them at the same time)
neutral (completion of objectives does not affect each other)
2.4 Project Team
Human factor is a key element of a successful project. A project team consists of
people whose task is to do all the necessary activities within a project. Members of a project
team are usually selected on a temporary basis and after the project execution the team is
dissolved. The workers belonging to a project team are let know in advance what they are
supposed to do, as well as what the deadlines of performing their duties are. In respect to their
obligations, they are assigned certain rights and responsibilities. Even though they do many
things individually, they should not lose the sense of belonging to a team and they must be
ready to cooperate. What is the most important thing is their ability to work towards
a common objective.
There are many ideas what the general features of successful project teams are, but the
following list is extensive enough11
:
common objective- members of a project team should not follow own goals but they
are supposed to identify themselves with the goals of the project
mutual accountability- people do not respond just to their leader but also to the other
members within the team
mutual responsiveness- people should be able to react to managers instructions or to
the norms and nobody should fall behind the others
constructive conflicts- it is neither possible nor desirable to avoid conflicts, because
when a team is able to deal with them constructively, something new and useful may
arise
mutual trust- it is an essential condition to trust each other in a team
mutual openness and information providing- every member of a team must have all
the necessary information to create own professional judgement in matters concerning
the whole team
11DOLEAL, J. MCHAL P. LACKO, B.Projektov management podle IPMA. 1. vyd. Praha:Grada, 2009, 507 p. Expert (Grada). ISBN 978-80-247-2848-3.p. 120-121
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self-awareness- every team has its own identity and the members are aware of this fact
2.4.1 Organizational Workflow
In project management, as well as in any other kind of management, there is
a relationship between someone who directs and manages and someone who is directed or
managed. When considering leadership, three terms must be defined12:
Authority- it refers to the power that somebody is given in order to make important
decisions
Responsibility- it refers to duties of an individual to complete all the tasks in the most
effective way
Accountability- it refers to the ability of an individual to accomplish the assignments
Accountability= Authority + Responsibility.
2.4.2 Project Manager
Project manager is the most important person and has the greatest responsibility in
a project as a whole. The main tasks of a project manager are to choose a good team, to
organise and coordinate the work and to provide the control. The Project Management
Institute defines good project managers as those who are able to identify themselves with
project goals, to motivate and inspire the project team, to work under pressure and who are
very flexible.13 They should also be some kind of mediators among all the members of the
project, as well as all the interest groups.
2.5 Project Restrictions
In managing a project, there are three main restrictions or challenges: time, costs and
quality. This concept is also known as Triple Constraint of the project management, where
these three primary limits of a project are called schedule, budget and scope.
14
12KERZNER, H.Project management: a systems approach to planning, scheduling, and controlling.9th ed. Hoboken: John Wiley, c2006, 1014 s. ISBN 04-717-4187-6.p.94-95.13Project Management Institute [online]. 2013 [cit. 2013-03-04]. Available from WWW:14Project Management Knowhow [online]. [cit. 2013-03-09]. Available from WWW:
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Figure n.1- Triple Constraint
scope
schedule budget
Own creation
These three factors are mutually dependent. It means that a change of one of them
results in changes of the others. If we want to enlarge the scope, for example, there will
definitely be a change in the schedule, because it will require more time, but also costs will be
higher. Or if we want the project to be finished earlier there will be a negative impact on
the quality and scope or the additional costs will be needed.
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3 International Management
This chapter deals with an international aspect of management because the HELPS
project is an international project. The international management does not differ considerably
from the standard management, but there are some features that must be taken into
consideration. In case of international management, there may appear cultural differences due
to different economic, legal and political systems. Another drawback can be a language
barrier and the international aspect also influences the organizational structure.
3.1 Culture
There are many different definitions of culture. However for the purposes of this
thesis, it is useful to think about culture as societal culture involving shared values,
assumptions and objectives of a particular society and having a considerable effect on
management, especially at the personal level. The behaviour at the organizational level is not
so influenced by the culture due to the process of convergence (it means that management
styles became more similar to one another).15
On the other hand, there are still many countries in the world that refuse to accept
foreign values and this is called divergence.16 However these are the countries manly in
the Middle East, Africa and Latin America. The HELPS project described in the practical partincludes only members of Central Europe, where the process of convergence prevail.
There are several value dimensions that explain differences in behaviour and may
cause misunderstandings, problems or conflicts:
Individualism vs. collectivism- in countries with individualistic tendencies, people
usually do not think so much about the others, beside their own families and interests
and they are not interested in the needs of the society as a whole. On the other hand,
collectivists have a strong feeling of belonging somewhere and that is why social and
common interests are in the middle of their attention. They also prefer team work to
individual work.
15DERESKY, H.International management: managing across borders and cultures : text and cases.7th ed., International ed. Upper Saddle River, N.J: Pearson Education, 2010. ISBN 01-325-4555-1.p.106.16 PHATAK, A. V. BHAGAT, R. S. KASHLAK, R. J. International management: managing in adiverse and dynamic global environment. 2nd ed. Boston, Mass.: McGraw-Hill Irwin, c2009, xviii,540 p. ISBN 00-732-1057-9.p.115.
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Time orientation- managers in some countries (Asian Tigers) are oriented on
the future and they are also prepared to undergo some loses at present to ensure gains
in the future. In America or in Europe managers want to get profit as soon as possible.
Time can be also considered in terms of punctuality. The Germans and Swiss are
supposed to be punctual and precise that can be hardly said about the Slavs and people
from eastern countries in Europe.
Universalism vs. particularism- the problems may also arise between universalists,
who tend to strictly obey and follow rules and particularists, who are more subjective
and focus on emotions and relationships.
Political stability- is an important factor because politically stable and also
economically stable countries are considered to be trustworthy for cooperation or
investment and likely to be chosen as project partners.
Power distance- according to Deresky, this term refers to the level of recognition of
power inequality. He says that if superiors and subordinates tend to consider each
other as equal, it may lead to harmony and cooperation.17
Further values could have been added but this is enough for the purposes of this thesis.
3.2 Communication
One of the problems in international co-operation may be language barrier as well. It
is very useful when project managers can speak foreign languages needed in communications
with their project partners, because communication with the help of translators prolongs and
worsens the whole process, especially when they are not professionals in a particular area.
One of the possibilities how to avoid bringing the services of translators into play, is to use
an international language (English, French, Spanish) that the both parties understand.
We distinguish high-context cultures (Middle East, Asia, Africa), which convey partof the meaning explicitly and low-context cultures (the USA, Germany, Switzerland), where
the context is not so important.18
17DERESKY, H.International management: managing across borders and cultures : text and cases.7th ed., International ed. Upper Saddle River, N.J: Pearson Education, 2010. ISBN 01-325-4555-1.p.112.18PHATAK, A. V. BHAGAT, R. S. KASHLAK, R. J. International management: managing in adiverse and dynamic global environment. 2nd ed. Boston, Mass.: McGraw-Hill Irwin, c2009, xviii,540 p. ISBN 00-732-1057-9.p. 338.
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Phatak and col. also identify some barriers of communication especially due to
different cultures19:
Beliefs about what is correct to communicate
The status of the sender and receiver
Attitude toward the content of the message
Stereotypes of the other culture
Cultural preferences regarding the medium used
Education level and professional competence of the sender and receiver
19PHATAK, A. V. BHAGAT, R. S. KASHLAK, R. J. International management: managing in adiverse and dynamic global environment. 2nd ed. Boston, Mass.: McGraw-Hill Irwin, c2009, xviii,540 p. ISBN 00-732-1057-9.p. 116.
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4 Organizational Structure of a Project
4.1 Organizational Structures
A proper organizational structure is an indispensable condition of a successful
project. Since every project is unique, it requires an individual approach and that is why it is
not possible to say that one particular organizational structure is the most effective and
efficient in general for all projects. It is important to choose and adjust the organizational
structure to the project needs. There are several possibilities of organizational structures that
differ in a size of a project manager authority, responsibility and accountability. Very
important factor is also an international aspect of the project that is reflected in
the organizational structure as well.
There are several authors who deal with the issue of the organizational structures of
projects. Blaek identifies three structures20: project coordination, projectized structure and
matrix structure. Mishra and Soota identify these six options that will be described more
deeply in the following chapters21: project manager as a member of organization staff, project
manager can be a consultant, one of the staff functions is project management, matrix
organizational structure, task force and finally totally projectized organization. These
structures can also be modified for the purposes of the international or global management inorder to get further specialization and economies of scales22.
4.1.1 Project Manager as Staff
This type may be compared with Blaeks project coordination. When dealing with
small occasional projects, it is very useful to create a staff position of a project manager or co-
ordinator. His task is to coordinate the work in functional departments for the purposes of
the project. However he has in fact no formal authority over the workers and that is why he
cannot make decisions. He serves as focal point for receiving project related information
20BLAEK, L.Management: organizovn, rozhodovn, ovlivovn. 1. vyd. Praha: Grada, 2011,191 s. Expert (Grada). ISBN 978-80-247-3275-6.p. 76-77.21MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505.p. 74-80. Available from WWW:22 Compare: DERESKY, H.International management: managing across borders and cultures : textand cases. 7th ed., International ed. Upper Saddle River, N.J: Pearson Education, 2010. ISBN 01-325-4555-1
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and seeks to promote the cause of project by rendering advice, sharing information and
providing assistance.23 However he is the specialist who may be very helpful.
Figure n.2- Project Manager as Staff
According to: MISHRA, R. SOOTA, T. Modern project management [online]. New Delhi: New
Age International (P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505. Available from
WWW:
4.1.2 Project Manager as Consultant
In some cases it is not even necessary to create a position of a project manager.
The chief executive just hires an external consultant who analyses and provides
the information for him. However both these structures are definitely not suitable in complex
or international projects such as the project HELPS.
4.1.3 Project Management as Stuff Function
This type of organizational structure is similar to the project manager as staff. In this
case, the project manager is a specialist whose task is to give advices to individual functional
departments in an organization. This implies that he has some kind of authority and power to
23MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505. Available from WWW:
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make decisions in terms of schedule, for example, but even though he still cannot direct stuff.
The final decisions make functional groups and the project management is responsible only
for its advices.24
4.1.4 Matrix Organizational Structure
Matrix organizational structure is a combination of a project structure and line-and-
staff structure. There are several functional areas (for example, production, marketing and
innovation) that are set up along the horizontal axis. Along the vertical axis, there are several
projects or project groups. These project groups use the resources (especially human
resources) from functional areas in order to complete project objectives. The main problem
arises from the shared authority of a project and functional managers. So the workers are
subordinate to both of them, which may lead to conflicts. That is why the senior manager candecide whose authority will be dominant or whether the authorities of project and functional
managers will be equivalent.25
Matrix organizational structure can be found in organizations that deal with projects
quite often. This structure also serves the purpose in highly innovative organizations, where
the results of projects are completely new products or technologies for manufacturing
enterprises.26 It is also widely used in international cooperation, where the project groups can
use the resources from various international organizations. So instead of functional areas of
one organization there would be more organizations with their functional areas along
the horizontal axis.
To sum up the advantages of the matrix this can be said:
it is not so demanding in terms of human resources
it is flexible under unstable conditions
it enables better coordination and control
it enhances team work and enables specialization due to division of labour
However we can find there also some disadvantages:
24MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505. Available from WWW:25BLAEK, L.Management: organizovn, rozhodovn, ovlivovn. 1. vyd. Praha: Grada, 2011,191 s. Expert (Grada). ISBN 978-80-247-3275-6.p. 77-78.26BLAEK, L.Management: organizovn, rozhodovn, ovlivovn. 1. vyd. Praha: Grada, 2011,191 s. Expert (Grada). ISBN 978-80-247-3275-6.p. 78.
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the main drawback can be seen in shared authority, which may cause confusion
the personnel must be very flexible with good interpersonal relationships
Figure n.3- Matrix Organizational Structure
According to: DAFT, R. L. Organization theory and design. 3rd ed. St. Paul: West Pub.
Co.,c1989, xxi, 602 p. ISBN 03-144-6341-0.p.221
4.1.5 Task Force
Task force organizational structure is something like an intermediate between matrix
organizational structure and totally projectized organization. The authority of the project
manager is clearly defined. So the project manager can decide what should be done, when and
how it should be done, as well as at what price. He has the authority over the personnel from
functional departments of the organization. They work under his commands even though they
continue to be under organization administration. They are assigned so called task force and
they work full time for the project or this work is given a higher priority.27
27 MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505.p.78. Available from WWW:
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4.1.6 Totally Projectized Organization
In large and complex projects, the task force becomes independent from the parent
functional organization. It can be said that it is like a small organization within a larger one,
where the project manager acts as the chief executive with more specialists who have
important functions, as well as responsibilities. The project manager has high power and
authority but also the full responsibility for the performance of the project.28 This structure
can be also used in case of an international management so that specialists responsible for
individual divisions are from various countries.
Figure n.4- Totally Projectized Organization
According to: MISHRA, R. SOOTA, T. Modern project management [online]. New Delhi: New
Age International (P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505. Available from
WWW:
This project organizational structure has many advantages:
a project manager has complete authority, high flexibility and freedom in making
decisions
no problems with conflicting interests of a project manager and functional areas
28MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505.p.78. Available from WWW:
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there is a special project personnel with no other functions or obligations to
the organization as a whole, which also increases their loyalty to the project
good communication and information flow
However there are also some disadvantages29:
high costs because of doubling some equipments and personnel in case of multi-
product companies
preserving the personnel longer than needed
no improvements of technology
little chance of career growth
little cooperation and technical advice sharing with other projects
highly demanding management of functional specialists
4.2 Comparison of Organizational Structures
Mishra and Soota claim that functional organization is suitable only if operations are
continuous and routine.30 In such cases the coordination is not so important and the specialists
are grouped to perform just one function. However they lose the big picture of the project and
their view is too narrow. The problems may also arise due to lack of addressed authority and
accountability, which slows down the decision making process.
On the other hand in a project structure that is primarily oriented on products, there are
several specialists in various disciplines answerable to a manager. Such structure is more staff
demanding and that is why it can be recommended for big projects. Multidisciplinary
structure brings a broader perspective and clear accountability and authority speed up
the whole process.
The matrix organizational structure is something like a compromise between
functional and project organization. It is not so staff demanding as the totally projectized
organization and project managers have also some authority.
29Docstoc. [online]. [cit. 2013-03-11]. Available from WWW:
30MISHRA, R. SOOTA, T.Modern project management[online]. New Delhi: New Age International(P) Ltd., Publishers, c2005 [cit. 2013-03-10]. ISBN 9788122425505.p.79. Available from WWW:
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All these characteristics of the already mentioned project organizational structures
must be kept in mind while deciding, which of them is the most suitable and appropriate for
a particular project. However there are many other features and criteria for selection of
an organizational form to be discussed in the following chapter
4.3 Criteria for the Selection of the Most Appropriate Organizational
Structure
Once the organization has decided that management by project is the best option,
the second important step is to choose the most appropriate organizational structure. There are
several approaches to this problem. According to Kerzner, the most important factors that
have an influence on the selection of an organizational form are following31:
size of the project
project duration
earlier experience with project management organizational forms
position and attitudes of upper-level management
project setting
obtainable resources
unique features of a particular project
Another author, Shikra, identifies five principles of an appropriate organizational
design. These are the characteristics of that should be considered in order to attain an effective
organizational structure32:
Division of Labour labour should be divided among departments to ensure
specialization
Unity of Command- it should be clear who the superior is with a well established lineof commands
Authority and Responsibility- authority and power should correspond with
responsibility
Spans of Control- adequate centralization and decentralization and levels of control
31 KERZNER, H.Project management: a systems approach to planning, scheduling, and controlling.9th ed. Hoboken: John Wiley, c2006, 1014 s. ISBN 04-717-4187-6.p.115.32 SHIKHA, S.Principles of Organizational Design. choo.fis.utoronto.ca. [online].[ cit. 2013-04-06]Available from WWW:
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Contingency Factors- these factors include environment and technology, as well as
task variability and problem analyzability
Very interesting and helpful approach has also Blaek. He claims that
the organizational structure is always unique and a particular organizational structure that is
highly effective in one organization might be completely useless in another organization. He
also identifies five factors that must be taken into consideration while drafting
the organizational structure33:
strategy- to determine the sector or the segment, in which the organization operates
and to specify the portfolio of products or services
technology- the process used to transform inputs into outputs
territory- its influence is important with respect to the product features
size- an organizational structure in a small organization tends to be rather informal
while big organizations have complex and formal structures
culture of an organization- it refers to the loyalty of workers and their commitment to
the organization and its aims
The last approach to be mentioned considers these five components to be essential for
an effective organizational form34:
leadership- it is important to have a vision and priorities and also a cohesive team
decision making and structure- every member of a team must know what his
obligations are and there must be clear accountabilities for decisions, as well as
the organizational structure must support objectives
people- good selection of personnel with adequate skills and talent; performance
leading to objectives accomplishment
work processes and system- programmatic work processes must be implemented with
a priority; processes and systems should be effective and efficient as well
culture- values and actions of a high performance and ability to change
33BLAEK, L.Management: organizovn, rozhodovn, ovlivovn. 1. vyd. Praha: Grada, 2011,191 s. Expert (Grada). ISBN 978-80-247-3275-6.p. 79-83.34
Bain & Company organizational toolkit and Bridgespan analysis; Designing an EffectiveOrganizationstructure. [online]. [cit. 2013-04-06] Available from WWW:
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Following these hints, in chapter 4.4, the criteria of the organizational structure
effectiveness are established. These criteria are compared with the real situation in the
practical part of this thesis, in the HELPS project.
4.4 Measures of Organizational Structure Effectiveness
To measure an effectiveness of an organizational structure, it is necessary to set
certain criteria in order to compare the reality in the given project with the ideal desirable
situation. In this thesis the following criteria are used:
1. Number of organizational levels- nowadays there is a tendency to reduce the numberof organizational structure levels because having too many levels increases costs and
complicates the management. On the other hand, lack of organizational levels may
slow down the processes, because the managers would have too much to do.
2. Information flow- the information channels should be short enough to save time andresources. Organizational structure should be clear and definite in order to avoid
misunderstandings and enable prompt information flow. Everybody must know who
his superiors and subordinates are and who he receives information from and who he
should send information to.
3. Formalization- degree of formalization is also important criterion, because too manyrules slow down the process and do not provide enough opportunities for creative
work. In case of highly educated and skilled professional managers who know what to
do and who are often prepared for improvisation, the rules are not so needed. On
the other hand, lack of rules may cause problems and lead to tendency to follow own
interests rather than common objectives.
4. Flexibility- organizational structure should be flexible and dynamic in order to adaptto changing conditions and development of the external environment.
5. Personnel- the methods of hiring the staff should be clear and consistent. It is not justskills and abilities of personnel that are very important, but also their mutual
relationships, organization culture and their will to cooperate in order to reach
the common objectives. Reliability and mutual trust enhance the cooperation.
6. Accountability- power should be adequate for completion of an individual'sobligations. Everybody should be responsible only for things and events he can
influence.
7. Specialization- the amount of work should be divided effectively and each member ofa project team should know what his duties are. The work should be performed by
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the most competent employees with adequate education, skills and experience.
The amount of work must also motivate. The number of workers should be adequate
so that they do not have too much to do but also the amount of work should not be too
small.
8. Time- the time period needed to accomplish particular processes should be the shortestpossible.
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5 SWOT Analysis
SWOT analysis is a strategic analysis used to identify strengths and weaknesses that
are the internal factors and opportunities and threats that are the external factors of an
organization (SWOT analysis can be used in various fields, not just in organizations). The
main aim of the SWOT analysis is to create a strategy for further development in
a consistence with the organization objectives35.
Figure n.5- SWOT strategies
Own creation
When strengths, weaknesses, opportunities and threats are arranged in a matrix
(Figure n.6), we get four combinations or better said four strategies that can be derived from
the SWOT analysis:
SO strategy combines and maximizes strengths and opportunities
WO strategy is aimed to use opportunities in order to overcome weaknesses
ST strategy uses strengths to eliminate threats
WT strategy minimizes weaknesses and threats
35GRASSEOV, M.Analza podniku v rukou manaera: 33 nejpouvanjch metod strategickhozen. 2. vyd. Brno: Computer Press, 2012, 325 s. ISBN 978-80-265-0032-2.p.297.
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6 The HELPS Project
In the practical part of this thesis, the main attention will be paid to the HELPS
project. Following the description of the project, there will be provided its analysis, especially
the analysis of its organizational structure. Finally, the data gained by the research will be
compared with the measures defined in the theoretical part in order to assess the effectiveness
of the organizational structure.
6.1 Basic Characteristics of the HELPS Project
The name HELPS is a short form of Housing and Home-care for the Elderly and
vulnerable people and Local Partnership Strategies in Central European cities. This project
started in October 2011 and its duration is 36 months until September 2014.36
The project runs under the umbrella of the Managing Authority (MA). The MA is City
of Vienna, represented by Department for EU Strategy and Economic Development and it
provided the funding from ERDF (see the chapter 6.2 Project Funding). Following
the agreement about funding, the leading partner, Friuli Venezia Giulia Region (Italy), is fully
responsible for the whole project.37
As the name already indicates, the project is aimed to help the elderly and vulnerable
people in Central Europe, especially in urban areas. Europe undergoes serious demographic
changes and the population becomes older. According to estimates published by the HELPS,
By 2060, EU population over 65 is expected to double, while the number of over 80 is
estimated to increase even more, almost tripling.38 Such numbers should definitely not be
ignored and population aging nowadays becomes a real problem that must be dealt with. This
issue also brings several other unfavourable elements, such as vulnerability and social
exclusion. That is the reason why the project was initiated.
The HELPS project tries to deal with the above mentioned aspects and comes with six
challenges39:
36ZDRUENIE MIEST A OBC SLOVENSKA: Projekt HELPS [online]. Actualization 5.3. 2013[cit. 2013-04-06] Available from WWW: < http://www.zmos.sk/projekt-helps.phtml?id3=73582 >37According to the information provided by Association of Towns and Communities of Slovakia38 HELPS:HELPS[online]. Actualization 6.4. 2013 [cit. 2013-04-06]. Available from WWW:39 The same
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Access to information- the aim is to provide information about services that help
the elderly and disable to remain active and on available services supporting active
and self-sufficient .
Accessibility of daily life spaces and urban areas through innovative planning
encouraging autonomy and facilitating social integration.
Professional healthcare- there are still new needs in terms of healthcare and it is
necessary to support this area and provide human resources.
Social linkages- this is to prevent social exclusion, while the elderly and vulnerable
need some social contact in their neighbourhood, based on solidarity and providing
assistance when needed.
Adoption of ICT solutions- these solutions should strengthen self-sufficiency.
Care services- to support care systems, their maintenance and efficiency.
Figure n.6- the HELS Project Challenges
According to: HELPS: HELPS [online]. Actualization 6.4. 2013 [cit. 2013-04-06]. Available
from WWW:
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6.2 Project Funding
The project is funded by the Central Europe programme. It is the programme of
the European Union that encourages cooperation among the countries of Central Europe to
improve innovation, accessibility and the environment and to enhance the competitivenessand attractiveness of their cities and regions.40Central Europe invests money to projects of
public and private organizations in Austria, the Czech Republic, Germany, Hungary, Italy,
Poland, the Slovak Republic, Slovenia and the Ukraine. The programme gets finance from
the European Regional Development Fund running in years 2007-2013. The total budget of
the HELPS project is 2 670 229 EUR.41
6.3 Project Participants
The project partners are public, as well as private organizations that are property
independent. There are 12 project partners (PPs) and 3 associated partners (APs) participating
in the HELPS project from 8 European countries42:
Friuli Venezia Giulia Region (Italy)- this is a leading partner (LP) whose task is to
create social politics, to manage social and health system and to redistribute financial
resources. Its aim is to improve services and home care.
Samaritan Burgenland (Austria)- PP2- it provides emergency rescue services and
expects international exchange of know-how, experience and results, as well as
housing solutions in target groups.
Institute of Sociology, Academy of Sciences of the Czech Republic- PP3- it deals with
sociological theories and methodologies, does research and provides education. Its aim
is to get knowledge from international research and apply innovative approach to
housing policy.
German Association for Housing, Urban and Spatial Development- PP4- it is a neutral
multidisciplinary platform oriented on professional exchange of information about
urban and regional development. It tries to improve living conditions for elderly and
expects the creation of database with experience and good practices.
40Central Europe: Central Europe [online]. [cit. 2013-04-06]. Available from WWW:41ZDRUENIE MIEST A OBC SLOVENSKA: Projekt HELPS [online]. Actualization 5.3. 2013[cit. 2013-04-05] Available from: < http://www.zmos.sk/projekt-helps.phtml?id3=73582 >42ZDRUENIE MIEST A OBC SLOVENSKA: Projekt HELPS [online]. Actualization 5.3. 2013[cit. 2013-04-05] Available from WWW: < http://www.zmos.sk/partneri-
projektu.phtml?id3=73582&module_action__193400__id_art=19047#m_193400>
http://www.zmos.sk/projekt-helps.phtml?id3=73582http://www.zmos.sk/partneri-projektu.phtml?id3=73582&module_action__193400__id_art=19047#m_193400http://www.zmos.sk/partneri-projektu.phtml?id3=73582&module_action__193400__id_art=19047#m_193400http://www.zmos.sk/partneri-projektu.phtml?id3=73582&module_action__193400__id_art=19047#m_193400http://www.zmos.sk/partneri-projektu.phtml?id3=73582&module_action__193400__id_art=19047#m_193400http://www.zmos.sk/projekt-helps.phtml?id3=73582 -
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Municipality of Leipzig (Germany)- PP5- it wants to maintain and create new working
places and creates conditions for investing. It expects from the project the data about
living conditions of elderly.
Municipality of Debrecen (Hungary)- PP6- it creates conditions for strong and
autonomous public services. It wants to increase the quality of services for elderly.
Hungarian Maltese Charity Service- PP7- one of the biggest organizations in Hungary
providing social services and healthcare. They want to test web-care and improve
services.
Veneto Region (Italy)- PP8- it provides wide range of social services such as home
care and financial support (mainly for elderly). It seeks for an opportunity to test
innovative activities and tools and to create local action plans.
Poznan Supercomputing and Networking Centre (Poland)- PP9- it manages national
network of information technologies and wants to use it for providing information
about social care.
Slovenian Federation of Pensioners Organizations- PP10- it is a federation of local
associations of pensioners that supports an active life of elderly and its aim is to
establish an Info Point to facilitate access to information and services.
Association of Towns and Communities of Slovakia- PP11- it gathers more than 2,800
towns and communities in Slovakia. It cooperates with many stakeholders and
financial and educational institutions. It is also responsible for social and housing
policies.
Institute for Sociology, Slovak Academy of Sciences- PP12- is a research organization
of the Slovak Academy of Sciences that provides analyses of settlement structures
changes at the national level. It aims to perform workshops and publish research
reports and results of pilot projects.
Municipality of Brno (The Czech Republic)- AS1- the second largest city in the Czech
Republic wants to support the elderly people to stay in the living environment of their
choice. It expects to get some knowledge and experience as well as know-how in
terms of policy for elderly people from other cities.
Institute for Social Research (Italy)- AS2- it is an independent private research
institute for evaluation and monitoring support and technical assistance to public
administrations and to private and public institutions. Its aim is to understand the issue
of housing of the elderly and vulnerable people and to create tools for dealing with
the situation.
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Ministry of Labour, Family and Social Affairs (Slovenia)- AS3- it is an association of
professionals in social and family politics with a special department for the elderly
people. It expects international exchange of knowledge and realization of the best
projects.
6.4 Working Packets
There are five working packets within the project43:
WP1- Management and Control- responsible partner: Friuli Venezia Giulia Region
(Italy)- it provides financial and administrative management, monitoring and
evaluation of the project, communication with partners and financial reports.
WP2- Project Publicity and Dissemination- responsible partner: Friuli Venezia Giulia
Region (Italy)- it is responsible for propagation of outputs and results, creation of
communication plans, creation of the logo and other activities.
WP3- Research Activity- responsible partner: Institute of Sociology, Academy of
Sciences of the Czech republic- there are several research topics concerning housing
systems and housing policies in member countries.
WP4- Pilot Actions- responsible partner: Municipality of Debrecen (Hungary)- in each
participating country, one pilot project should be implemented by Local Support
Groups.
WP5- Strategies- responsible partner: Friuli Venezia Giulia Region (Italy)- on
the basis of results from the Pilot actions, Local Action Plans on housing and care
provision will be drown.
The WP1 and WP2 run throughout the whole project in parallel with other WPs. WP3,
WP4 and WP5 are implemented following each other. The partners that are responsible for
individual WPs are not subordinate to the leading partner of the project, which is in fact
the leader of three WPs.
43According to the information provided by Association of Towns and Communities of Slovakia
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7 Organizational Structure Analysis
The organizational structure of the project is very complex. It involves 15 partners
from 8 countries, so this definitely gives it the status of an international project.
The organizational structure of the HELPS project as whole can be identified as the matrix
structure, but there are some modifications that should serve the purposes of the project.
Along the horizontal axis, there are 5 working packets that are to be performed. Along
the vertical axis there are 12 project partners, 3 associated partners and external workers.
Their roles in implementing tasks within individual working packets are various. Some of
them contribute more, some of them less. Everything depends on the initial agreement signed
before the project launch. Each project partner is involved in each working packet, but this
does not imply for associated partners.
The project partners have also their own organizational structures corresponding with
the requirements imposed on them, as well as the abilities and capacities of their home
organizations. These substructures can be identified as project groups or projectized
structures.
The role of associated partners is not as significant as the role of project partners. They
are not included in all WPs. The project uses also the services of external experts who are not
directly the members of project partners or associated partners.
For successful management and completion of the project, the Managing Committee
was established. It consists of representatives of individual project partners, as well as one
representative of the leading partner. The committee meetings are regular and
the representatives of associated partners are also invited with their advisory capacities.
The Managing Committee is responsible for project monitoring and realization. It
decides about the budget changes and tries to solve conflicts among the project partners. It
can also manage working groups when dealing with concrete tasks associated with the
project.
For better imagination, the organizational structure of the HELPS project is described
in the following figure. The information provided by Association of Towns and Communities of
Slovakia were used.
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Figure n.7- Matrix Organizational Structure of the HELPS Project
Participation and cooperation
Associated partners do not contribute to each WP
Services of external workers and experts
Own creation
7.1 Research
Following the aim of the thesis the adequate methods must have been selected. There
are not many literary sources that deal with international project management so
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the knowledge from project management in general was used with respect to the international
aspects. In terms of methodology, Sychra's thesis was used as a source of inspiration44.
For the purposes of the practical part of the thesis, a research was done among
the project partners to find out whether the organizational structure of the project is effective
or not. The questionnaire was send to project partners and it was filled in by 9 of them. In
addition to this Mr Matteo Apuzzo, the contact person of Friuli Venezia Giulia Region (Italy)
and Roman Stank, the contact person of Association of Towns and Communities of Slovakia
were very helpful and willing to answer even more questions concerning the practical part.
The questions were created so as to get the information about the current situation in
the HELPS project. The obtained data were analysed and compared with the criteria discussed
in the chapter 4.4, in order to evaluate the organizational structure effectiveness and thus to
verify the initial hypothesis that the organizational structure of the project is not effective with
regard to the project objectives. The questions, their substantiations and answers are discussed
in the following part of the thesis.
1. Which partner of the HELPS project do you work for?The first question is aimed to identify the project partner, which the individual who
fills in the questionnaire works for, because the questionnaire was sent collectively. This
question is just informational and does not contribute to the research about the organizational
structure effectiveness.
2. How many levels does the organizational structure of the project have?The second question finds out what the number of organizational levels is. Most of
the respondents answered that there are two levels (managing committee and project partners
offices). Some answers were 3, but this not the result of poor organizational clarity.
The reason is that the organizational structure of individual partner organizations has two
levels as well. The ideal answers should have been 2 or 3.
3. How many levels should the organizational structure of the project have according toyou?
44SYCHRA, Pavel.Management of the Multilateral International Projects. Brno, 2012. Diplomovprce. Masarykova univerzita Ekonomicko-sprvn fakulta.
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The third question was asked to get information about the subjective opinion of
the partners, whether the number of organizational levels is adequate. All of them answered
the same number as in the previous question, which implies that they are satisfied with
the number of organizational levels.
4. Only for leading workers: How many subordinates do you have?5. Only for subordinate workers: How many fellow-workers do you have?
These two questions ask in fact the same thing. The only difference is whether
the person, who answers them, is a manager or a subordinate. The aim was to find out
the number of workers directly subordinate to one manager. According to the research there
are mostly two or three workers. It is not a big number. This may imply that the workers have
much to do, but on the other hand the managers are not so busy with their subordinates.
The question may also correspond with the questions n. 17 and 18 that ask how difficult and
time consuming the tasks to be done are.
6. Do you always know who your superior is?The sixth question was asked in order to find out whether the organizational structure
is clear and everyone knows who to respond to. It was also asked for the purposes of
assessment of the informational flow. There were more options (see the whole questionnaire
enclosed). Based on the responses, it may be said that there are no problems and the workers
always know who their superior is even though some of them have more than one superior.
7. How would you characterize information flow?This question directly asks what the quality of informational flow is. The respondents
could choose one option on the scale from one to seven (1 as very bad information flow and 7
as very good information flow). Most answers were 4 and 5, which implies that
the information flow is neither bad nor very good, but it is slightly above the average.
However this is not very satisfactory and it should be improved.
8. Have you ever experienced problems caused by cultural differences? (values,approaches, language barrier)
This question was asked to assess the international aspect of the project, because
problems with information flow can be caused not only by ineffective organizationalstructure, but also by a language barrier or different approaches and cultures. The respondents
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were given the possibility to write down their opinions. Some of them have never experienced
any problems (definitely not a language barrier because they all understand and use English as
the main language of project communication). However the partners from Germany and
Austria mentioned different working approaches and varying attitudes of project partners,
which may cause slight conflicts, misunderstandings or lack of information when they are
necessary and this fact may negatively influence the quality of information flow. This is quite
typical of these two nations because they are known to be punctual and they like everything to
be done on time.
9. How would you characterize the degree of formalization?This question was aimed to find out how the project partners are confined by rules
(there was again a scale from 1 to 7). Answers to this question were various ranging from 2
(few rules) to 7 (a lot of written rules). The problem is that each project partner has its own set
of rules in their home organizations.
10.How would you characterize organizational structure in terms of flexibility?One of the criteria for assessment of the organizational structure is also its flexibility.
The HELPS project is aimed to deal with demographical changes so it is set in a dynamic and
changing environment. That is why the effective organizational structure should cope with
these conditions. The respondents were asked to assign one option on a seven-tier scale (from
1 as very inflexible up to 7 as very flexible). The answers were mostly 4 and 5, one was 3. It
implies that the organizational structure is not very flexible but on the other hand, it is not
static and there is a possibility to adapt to changing conditions.
11.Can you describe the way how the project personnel is selected and hired?This question was oriented on project personnel and the ways how the workers had
been chosen. These ways are not uniform for all the project partners. Everything depends on
the national legislations and staff availability in the organizations. In addition to this, no new
workers are hired for the HELPS project at the moment.
12.Are your fellow-workers or subordinates reliable?This question also focuses on the project personnel. There were more options to
choose the answer. The aim was to get some information about personnel reliability andmutual relationships. Most of the respondents consider their subordinates or fellow-workers to
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be reliable but they also mention some occasional problems. However this is nothing unusual.
In general it can be said (based on the opinions of project partners) that the project
participants trust each other, they can rely on each other and good mutual relationships
significantly contribute to effectiveness of the project organizational structure.
13.Does authority correspond with responsibility?This question was asked in order to get information about accountability, which is one
of the criteria of organizational structure effectiveness. There were more possible options or
the respondents could write down their own opinion. Almost all of them stated that
the authority is always accompanied with an adequate amount of responsibility. Only two
project partners answered that they have occasionally experienced some slight discrepancies
between power and amount of responsibility. However they did not further comment on that
so it is probably an exceptional situation.
14.Who is responsible for decision making?The fourteenth question also brought some information about authority and
responsibility but it was oriented on the degree of centralization as well. The aim was to get
a deeper insight into the power relationships. This was an open question and the respondents
really used the possibility to express their opinions. The answers can be sum up by saying that
the LP representatives are responsible for the project in general, WP leaders are responsible
for individual WPs and each project partner has its own project leader. When considering
individual partners the situation can be various. Some have very flat hierarchy and
the decision making is the common task, or they have a project manager who is responsible
for project activities and a director who is responsible for internal procedures. Even though it
may seem confusing, the system works well because the members of the project always know
who is responsible for the decision making.
15.How would you characterize the degree of centralization?An answer to this question gives a framework to the previous answer. This is again
one of the questions with 7-tier scale of answers (1 being decentralised and 7 being
centralised). All but one of the answers were four. So it implies that the structure is neither
centralized nor decentralized. This corresponds with the previous question and its answers.
The project partners seem to be satisfied with this system because there is some kind ofhierarchy but it is not so strict.
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16.Is your work in the project time-consuming?The sixteenth question asked about the time necessary to spend on project activities.
The respondents could again choose one of the seven options (from 1 work is not very time-
consuming up to 7- work is very time-consuming). The aim was to get known how busy they
are. The answers were in this case various. The busiest are the workers of the LP, PP10 and
PP11 while the work is not so time-consuming for PP4 and PP5.
17.Are your tasks difficult to accomplish?This question (using 7-tier scale of answers from not very difficult- 1 up to very
difficult-7) was aimed to reveal how difficult the requirements imposed on the project
workers are. The answers were again various, but with similar distribution as in the previousquestion. This implies that if work is time- consuming for the workers it is also difficult.
However the problem is that it is unequally distributed and some partners contribute more
than the others.
18.Is the time period of accomplishment of individual processes appropriate?The last question concerns the time needed to perform the processes in the project.
Time is a very important criterion of effectiveness. Only two respondents were not satisfied
with the amount of time spent on individual activities. The others considered the time
appropriate with regard to the difficulty of the processes.
7.2 Evaluation
Based on the answers to the questionnaire, the following table was created. It depicts
the individual criteria, numbers of questions concerning that criteria and the ideal state
(considered to be effective for the organizational structure) compared with the real situation in
the organizational structure of the project.
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Table n.2- Comparison of the Reality with Criteria
Criterion Question Ideal state Reality
1.
Number of
organizational
levels
2, 3
The lowest possible (ideally 2-
3) There are only 2 levels
2. Information flow 6, 7, 8
The shortest possible
information channels and it
should be clear who to respond
to
The information channels are
short it is clear who to respond
to but there are some problems
3. Formalization 9
Adequate amount of written
rules so that everyone knows
what to but they should not be
too confining
Not uniform, it depends on
national legislations
4. Flexibility 10
The organizational structure
should be able to adapt to
changing conditions
The organizational structure is
flexible enough
5. Personnel 11, 12
Personnel should be hired
consistently with regard to the
project culture and cooperation
Process of hiring depends on
the national legislations but
the cooperation is adequate
6. Accountability13, 14,
15
Authority should correspond
with reliability and it should be
clear who is responsible for
decision making
Authority corresponds with
reliability and responsibility
for decision making is clear
7. Specialization4, 5, 16,
17
Appropriate division of labour
and motivating amount of work
The labour is not divided
effectively
8. Time 18 The shortest possible The time is appropriate
Own creation
1. Number of organizational levels- there are only two organizational levels inthe HELPS project. However this number is considered to be adequate. The project
partners were asked (questions n. 2 and 3) what the real situation about the number of
levels is and how much levels they would expect. Following their answers it can be
said that the reality fulfils their expectations so the organizational structure is effectivewith regard to this criterion.
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2. Information flow- in an effective organizational structure the information flow shouldbe without any problems. The information channels are not very long in case of
the HELPS project, but most of the respondents of the questionnaire do not consider
the information flow to be ideal (question n. 7). The problem may have been caused
by the fact that some workers have more superiors and there could have been troubles
with shared authority and confusion of workers who to respond to. However this
assumption was rejected by the answers in question n. 6, where all the respondents
answered that they always knew who their superior was even though there were more
superiors. The issue was brought to the light by the question n. 8, where some of
the respondents complained about different working approaches of partners from
different countries, as well as lack of information.
3. Formalization- the set of rules is not uniform for all project partners. This fact wasrevealed by the question n. 9 as well as further communication with the project
partners. The individual organizations vary significantly with respect to the degree of
formalization. Those with a lot of rules may be considered to be too strict and slow
partners that spend too much time with administration and bureaucracy. On the other
hand those with few rules can be considered to be too liberal and unsystematic and
maybe less trustworthy. However it is not so great drawback of the organizational
structure and the project partners do not consider any assimilation of sets of rules
among the individual organizations.
4. Flexibility- as it has already been mentioned, the HELPS project is set in a dynamicand constantly changing environment. In fact the main idea of the project is to react to
demographic changes and population aging. Even though the project is expected to
last only for 3 years, there can always emerge new problems, new tendencies or issues
to be concerned. That is why the organizational structure cannot be stable and there
must be the possibility of modification and adaptations with respect to the needs of the
external environment. On the other hand, too flexible structure would not be suitable,
because it would be rather chaotic. On the basis of the research (question n. 10), it can
be said that the organizational structure is not very flexible but it is definitely not
static. So the organizational structure flexibility meets the needs of the project and is
adequate.
5. Personnel- the methods of hiring the personnel are again various and dependent onnational legislations. However the mutual relationships, trust and cooperation towards
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common objectives is ensured (based on answers to questions n. 11 and 12). This is
seen as a great advantage and strength of the organizational structure.
6. Accountability- this criterion was judged according to the answers of questions 13, 14and 15. The organizational structure has adequate degree of centralization and
the power relationships are clear and consistent. It means that it is always known who