A-1 ORGANIZATIONAL CONTEXT

DEFINITION • The “background” or “environment” in which the organization

operates;
• All organizational factors that are not a direct part of the
initiative such as governance structures, leadership approach,
and organizational culture

ISO 9001:2015 5th Edition chapter 4 Context of the Organization

PMBOK Guide 6th Edition part 1 chapter 2 The Environment in
which Projects Operate

Organization Environment
Organization Stakeholder
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1.1 ISO 9001:2015 5TH EDITION CHAPTER 4

Representation of the ISO structure in the PDCA cycle

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1.2 SWOT ANALYSIS & SOAR ANALYSIS

STRENGTHS WEAKNESSES STRENGTHS OPPORTUNITIES

• Internal • Internal • Internal • External
• Helpful • Harmful • Present • Present

• Competitive mindset
• Collaborative mindset
• Strategic improvement on
• Strategic improvement on strength
weaknesses
and vision
• Management focus on areas to
OPPORTUNITIES THREATS • Leadership
ASPIRATIONSfocus on what we do best
RESULTS
improve
• External • Visionary
• Internal based action plan
• Tactical action plan • External • External
• Helpful • Focus on possibilities• Future
• Future
• Focus on limitation • Harmful
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1.3 PMBOK GUIDE 6TH EDITION PART 1 CHAPTER 2

Project Influences
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1.4 ORGANIZATIONAL PROJECT INFLUENCES
Organizational Process Assets (OPAs)
• Plans, processes, policies, procedures, knowledge that
influencing project
• Practice or knowledge from project team that can be
used to execute the project
• Organization’s lessons learned from previous projects
• Completed schedules, risk data, and earned value data
• Inputs to project management processes
• Internal to the organization

Enterprise Environmental Factors (EEFs)

• Not under the control of the project team
• Can be internal and/or external to the organization
• Inputs for most on planning processes
• May enhance or constrain project management options
• May have a positive or negative influence on the
outcome
DETAIL
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1.5 ORGANIZATIONAL PROJECT MANAGEMENT

• to ensure that the organization

undertakes the right projects and
allocates critical resources
appropriately
• to ensure that all levels in the
organization understand the
strategic vision, the initiatives that
support the vision, the objectives,
and the deliverables
PMBOK Guide 6th Edition part 1 chapter 1.2. Organizational Project Management
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1.6 STAKEHOLDER
• Anyone with an interest in a business
DEFINITION • Are individuals, groups or organizations that are effected by the
activity of the business
Internal External Stakeholder PROJECT STAKEHOLDER
Stakeholder
Suppliers
Society
Employees
Government
COMPANY
Managers
Creditors

Owners Shareholders

Customers
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1.7 PROJECT STAKEHOLDER MANAGEMENT
Processes to identify the stakeholders and to analyze their
DEFINITION expectations and impact on the project, and to develop effective
engagement in project decisions and execution
Engagement Process
Engagement Plan
• to develop approaches of stakeholders based on their needs,
expectation, interests, and potential impact on the project
Manage Engagement
• to work with stakeholders to meet their needs and
expectations

Monitor Engagement
• to monitor relationships and tailoring strategies as required
Identifying process
• Analyzing and documenting information
with regards to interests, involvement,
influence, and potential impact on project
success DETAIL CASE
A-2 ORGANIZATIONAL MOST IMPORTANT CONTEXTUAL ISSUES

1 STRATEGY

ORGANIZATIONAL 2 STRUCTURE
CONTEXT

3 CULTURE
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2.1 STRATEGIC MANAGEMENT
• The science of formulating, implementing and evaluating cross-functional decisions
that enable an organization to achieve its objectives
VISION
Business Aspiration

MISSION To provide overall direction to an enterprise and

Company’s founders envisioned involves specifying the organization's objectives
✓ developing policies and plans to achieve
OBJECTIVE
Result that company aims to achieve
those objectives, and
✓ then allocating resources to implement
STRATEGY the plans
Long term plan designed to achieve objectives #Michael Porter

APPROACH
Methodology for executing the long term plan

TACTIC
Focused action plans
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2.2 BUSINESS STRATEGY MODEL
Business in essence are creating value & making profit
• If you make profit, but don’t create value, you are thief
• If you create value but don’t make profit, you are a charity
• The challenge of business is to do both
# Geoffrey Lewis
FORMULATION IMPLEMENTATION
• Top management ‘s • Everyone else‘s
• Difficult • Easy

ENVIRONMENT INDUSTRY
STRUCTURE
STRATEGY RESOURCES

ENVIRONMENT INDUSTRY RESOURCES

A. Economic A. Concentration SUSTAINABLE A.
B.
Capital
People
B. Technology B. Entry Barriers
C. Politic/Legal C. Product Differentiation C. Technology
D. Social D. Cost Structure D. Organization
E. Vertical Integration
Strategic Management : concepts, context and cases – Geoffrey Lewis – Section 1 Chapter 1
DETAIL
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2.3 PORTER’S GENERIC STRATEGIES
COMPETITIVE ADVANTAGE

Uniqueness perceived
Low-cost position
by the customer

DETAIL
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2.4 PROJECTS & STRATEGY
Project reflect strategy Project drive change in organization
The firm’s strategic development is a From a business perspective, a project
driving force behind project is aimed at moving an organization
development, hence projects are from one state to another state in
stepping stones of corporate strategy order to achieve a specific objective

PMBOK Guide 6th Edition part 1 chapter 1.2. Project Initiation PMBOK Guide 6th Edition part 1 chapter 1 Organizational
Context State Transition via Project
SAMPLE CASE
A-3 ORGANIZATIONAL STRUCTURE
Stephen P. Robbins
DEFINITION • How job tasks are divided, grouped and coordinated
• To help management to achieve its objectives
6 Key Question In Designing
Organizational Structure
1. To what degree are tasks subsided 1. Work specialization : the degree to which tasks in the organization are
into separate jobs? subsided into separate jobs
2. On what basis will jobs be grouped 2. Departmentalization : the basis by which jobs are grouped
together? 3. Chain of command : the unbroken line of authority that extends from the top
3. To whom do individuals and groups of organization to the lowest echelon and clarities who reports to whom
report? 4. Span of control : the number of subordinates a manager can efficiently and
4. How many individuals can manager effectively direct
efficiently and effectively direct? 5. Centralization & Decentralization
5. Where does decision making Centralization : decision making is concentrated at a single point in organization
authority lie? Decentralization : decision discretion is pushed down to lower level employees
6. To what degree will there be rules 6. Formalization : the degree to which jobs within the organization is
and regulations to direct employees standardized
and managers?
Organizational Behavior – Stephen P. Robbins – Chapter 13 Foundation of Organizational Structure
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3.1 EXTREME MODEL ORGANIZATION DESIGN
Characteristics Advantages Disadvantages
• High specialization • Simple to work • Over reliance
• Rigid departmentalization • Economical and effective • Lack of specialization
• Clear chain of command • Unity in command • Inadequate
• Narrow spans of control • Better responsibility communication
• Centralization • Fixed discipline • Lack of coordination
• High formalization • Prompt decision • Authority leadership

Organic Model
A structure characterized are
flat, uses cross hierarchical and
cross functional teams, has low
formalization, possesses a
comprehensive information
network, relies on participative
decision making

Characteristics Advantages Disadvantages

Mechanistic Model • Cross-functional teams • Flexible approach • Confusion and uncertainty
• Cross-hierarchical teams • Free flow of information • Incomplete tasks
A structure are extensive
• Free flow of information • Responsive and teamwork • Lack of coordination
departmentalization, high
• Wide spans of control • Decentralized authority • Vague decision
formalization, a limited
• Decentralization • Fluid workforce • Communication issues
information network, and
• Low formalization • Feeling of ownership • Conflict in units
centralized
• Enhances creativity • High administrative cost
Organizational Behavior – Stephen P. Robbins – Chapter 13 • Difficult to control
Mechanistic and Organic model • Unpredictable process
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3.2 COMMON ORGANIZATIONAL DESIGN
Independent
Simple Bureaucracy
research and Matrix
Advertising Virtual Organization
development agency
A structure characterized by : consulting
A structure with : firm A structure that : A small, core organization that
• a low departmentalization, • highly routine operating tasks • creates dual lines of authority, outsources major business
• wide spans of control, achieved through • combined functional function, characterized by :
• authority centralized in a single specialization, • and product • Minimize bureaucratic
person, • very formalized rule and Executive
departmentalization overhead since there is no
• and little formalization regulations, Group lasting organization to
• tasks are grouped into maintain
functional departments, • Lessen long term risk and cost
• centralized authority, because no long term, team
• narrow spans of control, Commisioned assembled for a finite period
Factories
• and decision making that in
follow and then disbanded
sales
South
the chain of command Korea
representative
Characteristics Advantages Disadvantages
• Borderless organization • Save time and travel • Lack of physical
located in cyberspace expenses interaction
• Geographical spread • Quick access to experts • Require more focus on
teams • Dynamic team communication
• Electronic communication membership • Security and compliance
• Compliment resources • Online communication issues
Organizational Behavior – Stephen P. Robbins – Chapter 13 work towards goal and reports for swift • Reputational risks
Foundation of Organizational Structure responses
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3.3 TRADITIONAL ORGANIZATIONAL CHART

Chief Executive
Officer

Vice President Vice President Vice President

of Finance of Operation of Marketing

Hierarchical structured organization shaped like pyramid and vertical lines of reporting

Succeeding in Project-Driven Organizations – Joan Knutson – Chapter 13 Project Driven Organization Structures
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3.4 FUNCTIONAL ORGANIZATIONAL CHART
Chief Executive
Officer

Functional Functional Functional

Manager Manager Manager

Project Project Project Project Project Project Project Project

A B C D E F G H

Characteristics Advantages Disadvantages

• Tasks divided into function • Specialization/Expert • Weakening common
• Function performed by • Departmental competence bonds
specialists • Operation speed and • Lack of cross function
• Functions overseen by clarity coordination
functional managers • Easy scope expansion • Territorial disputes
• Better control • Delay in decision making

Succeeding in Project-Driven Organizations – Joan Knutson – Chapter 13 Project Driven Organization Structures
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3.5 DIVISIONAL ORGANIZATIONAL CHART
Chief Executive
Officer

Product A Product B Product C

Function Function Function Function Function Function Function Function

1 2 3 1 2 1 2 3

Characteristics Advantages Disadvantages

• Function grouped into • Clear accountability • Not possible in small
division • Team culture organization
• Divisional resources to • Responsive to external • Difficulty on integration
support production line changes • Hard competition
• Multiple subsidiary • Better strategic decisions • Lack of communication
companies under parent • Dose not get the most out
company of economy scale
• Low impact of each
divisional failure
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3.6 PURE PROJECTIZED ORGANIZATION CHART
Chief Executive
Officer

Vice President of
Vice President Vice President
Information
of Finance of Manufacturing
Services

Representative of
Representative Representative
Information PROJECT A
of Finance of Manufacturing
Services
Characteristics Advantages Disadvantages
• Temporary setup for • Easy communication • No clear growth path
specific project • Strong sense of identity • Expensive
• Headed by project • Efficient and effective used • Specialists are dedicated
manager of resources • Limited technological
• Dismantled upon project • Fast processes expertise
completion • Cross functional
• Works well for project integration
with clearly defined
objectives
Succeeding in Project-Driven Organizations – Joan Knutson – Chapter 13 Project Driven Organization Structures
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3.7 MATRIXED ORGANIZATION CHART
Chief Executive
Characteristics
Officer
• Focus on specific project
• Personal from various
departments Staff Staff
• Functional managers
responsible for functional
integrity
Functional Functional Functional
Manager Manager Manager

Advantages A D F Project XYZ

• Efficient due people with
specialized skills
• Flexible in nature E G
• Balance time, cost and
Project IJK
performance
B D H
Project RST
Disadvantages
C
• Dual commands and
reports
• Complicated coordination
• Dysfunctional conflict
• Indiscipline and ambiguity
• Slow processes
Succeeding in Project-Driven Organizations – Joan Knutson – Chapter 13 Project Driven Organization Structures
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3.8 MATRIXED ORGANIZATION CHART WITH PROJECT OFFICE
Chief Executive
Officer

Staff Staff
PROJECT
OFFICE
Functional Functional Functional
Manager Manager Manager

Project A D F Project XYZ

Manager
E G
Project Project IJK
Manager
B D H
Project RST

Succeeding in Project-Driven Organizations – Joan Knutson – Chapter 13 Project Driven Organization Structures DETAIL
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3.9 ORGANIZATION STRUCTURE : ITS DETERMINANTS AND OUTCOMES

CAUSES
DESIGN
• Strategy
determines • Mechanistic leads to Performance and
• Size
• Organic Satisfaction
• Technology
• Environment

Moderated by
individual
differences and
cultural norms

Organizational Behavior – Stephen P. Robbins – Chapter 13 Foundation of Organizational Structure

SAMPLE CASE
A-4 ORGANIZATIONAL CULTURE
Stephen P. Robbins
DEFINITION • Common perception held by the organization’s members that distinguishes from other
organization
• System of shared meaning is a set of characteristic that the organization values

1. The degree to which employees are encouraged to be innovative and take risks
7 Primary Characteristics
1. Innovation & risk taking 2. The degree to which employees are expected to exhibit precision, analysis, and attention to
detail
2. Attention to detail
3. Outcome orientation 3. The degree to which management focuses on result or outcomes rather than on techniques
and processes used to achieve these outcomes
4. People orientation
4. The degree to which management decision take into consideration the effect of outcomes on
5. Team orientation people within the organization
6. Aggressiveness
5. The degree to which work activities are organized around teams rather than individuals`
7. Stability
6. The degree to which people are aggressive and competitive rather than easy going
7. The degree to which organizational activities emphasis maintaining the status quo in contrast
to growth

Organizational Behavior – Stephen P. Robbins – chapter 16 Organizational Culture

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4.1 WHAT DOES CULTURE DO?
1. Create distinction between organization one to another
2. Conveys a sense of identity for organization members
3. Facilitates the generation commitment to something larger than individual self interest
4. Enhanced social system stability

Dominant & Strong Culture

• Dominant culture
✓ Expresses the core values that are shared by a majority of
the organization Organization Culture vs National
✓ Subculture : mini cultures within organization, typically Culture
defined by department designations and geographical
separation Implementation of organization culture is
• Strong culture to understand the behavior of people or
✓ Culture where the core values are intensely held and widely national culture
shared
✓ Can act as substitute for formalization
✓ The stronger the organization’s culture the less management
need be concerned with developing rules and regulations

Organizational Behavior – Stephen P. Robbins – chapter 16 Organizational Culture

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4.2 CULTURE AS LIABILITY
Culture is liability when the shared values are not in agreement within those who will further the
organization’s effectiveness
1. Usually occur when organization environment is dynamic
2. When business as usual no longer effective

Barrier to Diversity Barrier to Mergers & Acquisition

Organization hire divers individual because of M&A is for financial advantages or product
alternative strength bring to workplace synergy
➢ Culture is liability when they eliminate ➢ Culture is liability when they eliminate
individuals’ unique strength others’ culture strength

Organizational Behavior – Stephen P. Robbins – chapter 16 Organizational Culture

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4.3 HOW CULTURES FORM
Top
Philosophy Management
of Selection Organization
organization’s Criteria culture
founders
Socialization

Socialization Proses
Productivity

Prearrival Encounter Metamorphosis Commitment

Turnover

Organizational Behavior – Stephen P. Robbins – chapter 16 Organizational Culture

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4.4
HOW ORGANIZATIONAL CULTURE IMPACTS PERFORMANCE AND
SATISFACTION

Strength
Objective factors Hi Performance
• Innovation and risk taking
• Attention to detail Perceived
• Outcome orientation as Organizational
• People orientation culture
• Team orientation Satisfaction
• Aggressiveness Lo
• Stability

Organizational Behavior – Stephen P. Robbins – chapter 16 Organizational Culture