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The University of Monash
Selecting a Appropriate Project Appraisal Methodology
Selecting any project appraisal method assumes that the decision-making procedure takes placein a reasonably rational organizational environment. Such is not always the case. In someorganizations, project selection seems to be the result of a political process, and sometimesinvolves questionable ethics, complete with winners and losers. In others, the organization is sorigid in its approach to decision making that it attempts to reduce all decisions to an algorithmicproceeding in which predetermined programs make choices so that humans have minimalinvolvement and responsibility.
The Sacred Cow2.
The Operating Necessity3.
The Competitive Necessity4.
The Product Line Extension5.
There are two major types of methodologies can be identified as scoring and financial methods.
Scoring methodsNo Range and Un-weighted Scoring
A set of relevant factors is selected by management and then usually listed in a preprinted form.One or more raters score the project on each factor, depending on whether or not it qualifies for
an individual criterion. Only binary scorings are used as „1‟ for YES and „0‟ for NO or qualified/
not etc; any project which meets maximum number of criteria may be chosen.