A Matrix Organization in Change : The Challenges of Resource Allocation in a Growing Multi-Project Environment

Sammanfattning: It is not uncommon for organizations going through a change connected to growth to be faced by new challenges. To grow, they need to explore new markets and engage in development of new products which they have little or no previous experience in developing. Uncertainty highly influences these settings which creates problems not always connected to technical development. Dealing with a situation where more and more projects are undertaken is complex, and it puts pressure on resource allocation methods. The portfolio of projects sets demand for human resources, which is supplied through a human resource management system by the line organization, to projects. If problems occur, the project portfolio demands re-allocation of resources and prioritizing to cope with new prerequisites. At the studied site, TECHX has gone from a small company focusing on a narrow market segment, to become a manufacturer of several product solutions expanding their presence in the market. By exploring new market segments and employing more personnel, TECHX are in a completely new position compared to 20 years ago. The company has experienced difficulties in dealing with resource allocation in projects, and a lot of resource re-allocation is done to put out fires in projects. This creates a situation where resources are moved around, which affects smooth-going projects negatively. This study has found a lack of project portfolio management, and that not enough focus is directed towards long-term resource allocation. This master’s thesis has studied the interaction between project portfolio management, human resource management and day-to-day planning, and how they affect resource allocation. It was obvious that TECHX do not have a management system in place for their project portfolio which was determined to be a major factor for having problems connected to resource allocation. Adding the informal and insufficient communication between departments and managers, and the unsuitable project work set-up, and the situation has become too hard to handle. This thesis recommends TECHX to engage in the project portfolio through a defined project portfolio manager. This role will formalize how projects are prioritized and how resources will be re-allocated to projects in need. To get the most out of the projects, project teams would benefit from co-location with each other to improve knowledge and experience sharing, reducing the barriers between them. To make sure a sustainable work environment is achieved, HR need to be more active in the daily work to support managers in need of guidance.