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- MBA -
PM0010 - Introduction to Project Management
Semester: 3 - Assignment Set: 1 Question 1: Describe the three strategy levels in detail. Answer: Strategies can be formulated on three different levels. Johnson and Scholes define strategy as “Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations”. While strategy may be about competing and surviving as a firm, one can argue that products, not corporations compete, and products are developed by business units. The role of the corporation then is to manage its business units and products so that each is competitive and so that each contributes to corporate purposes. In other words, strategy is about: Market; scope are which markets should the business compete in and what kind of activities are involved in such markets. Advantage is how the business can perform better in such markets. Resources are the skills, assets, finance, relationships, technical competence, facilities required to enable the business to compete. Environment is the external, environmental factors that affect the business‟ ability to compete. Stakeholders‟ expectations are the values and expectations of those who have power in and around the business.
Strategy at Different Levels of a Business: Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it Strategy Levels: Strategy exists at three hierarchical levels in an organization – ranging from the overall business (or group of businesses) through to individuals working in it. Corporate Strategy: It is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". It consists of the kinds of initiatives the company uses to establish business positions in different industries, the approaches corporate executives pursue to boost the combined performance of the set of businesses the company has diversified into, and the means of capturing cross-business synergies and turning them into competitive advantage. Senior corporate executives normally have lead responsibility for devising corporate strategy and for choosing among whatever recommended actions bubble up from the organization below. Business Unit Strategy:
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Sikkim Manipal University . No. Operational Strategy: It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. The key focus here is crafting responses to changing market circumstances and initiating actions to strengthen market position.Assignment Set: 1 This strategy is concerned more with how a business competes successfully in a particular market. and Website sales and operations). It concerns strategic decisions about choice of products. Below are few important roles & responsibilities of a Project Manager: The Project Manager is the person responsible for managing the project. Answer: a) Various roles undertaken by a Project Manager: The role of the Project Manager is to plan. Question 2: a) Describe the various roles undertaken by a Project Manager. processes. controlling and monitoring. people etc.MBA - PM0010 . Orchestrating the development of business-level strategy is the responsibility of the manager in charge of the business. Operational strategy therefore focuses on issues of resources. He is responsible for the outcome (success or failure) of the project. execute and finalize projects according to strict deadlines and within budget. build competitive advantage. Bhupinder Singh Reg. exploiting or creating new opportunities etc. The Project Manager is involved with the planning. meeting needs of customers. 521063004 Page 2 of 13 . Business strategy concerns the actions and the approaches crafted to produce successful performance in one specific line of business. subject to review and approval by higher-ranking managers. Lead responsibility for operating strategies is usually delegated to frontline managers. gaining advantage over competitors. supply chain-related activities.Operating strategies add further detail and completeness to functional-area strategies and to the overall business strategy. This includes acquiring and coordinating the efforts of team members and third-party contractors or consultants in order to deliver projects according to plan. and also managing and directing the assigned project resources to best meet project objectives. distribution centres. geographic units) and for specific operating activities with strategic significance (advertising campaigns. the management of specific brands. The Project Manager is the person responsible for accomplishing the project objectives within the constraints of the project. b) List and explain in brief the qualities of a Project Manager. Operating strategies concerns the relatively narrow strategic initiatives and approaches for managing key operating units(plants. and develop strong competitive capabilities. The role & responsibilities of a Project Manager is little complex and needs to be explained elaborately in clear terms for each project.Introduction to Project Management Semester: 3 .
Introduction to Project Management Semester: 3 . The Project Manager is responsible for identifying. Project Manager is the ‘God’ of his project and he is the one who decides the success of the project. How apt these words by Dwight D Eisenhower are. The Project Manager examines the organizational culture and determines whether project management is recognized as a valid role with accountability and authority for managing the project. People should want to be lead by the project manager. and responding to The Project Manager is responsible to the project stakeholders for delivering a project’s objectives within scope. Vision: Every project manager should have a vision. leadership is not about bullying people. cost.Assignment Set: 1 The Project Manager Controls and monitors “triple constraints”—project scope. He may reports to a Functional Manager or to a Program Manager. monitoring. Even as I make this statement. schedule. Persuasion and negotiation are all a part of communication and the project manager’s qualities.MBA - PM0010 .Sikkim Manipal University . not leadership. and work completed) & reports on project progress and other project specific information to stakeholders. a vision of what he wants the project to be like. schedule. So what are the leadership qualities that a project manager should have? Should he be skilled or compassionate? Or maybe he needs to be a good communicator or a visionary? There is not right answer and there is no wrong answer. The reporting structure of a Project Manager will change depending on organizational structure. risk. a vision of how to get things done and a vision of the near future of the project. here is a list of some leadership qualities for a project manager. Only when there is vision is there going to be real involvement on the part of the project manager and thus involvement on part of the team members. b) Qualities of a Project Manager: You do not lead by hitting people over the head – that’s assault. Bhupinder Singh Reg. and quality. Communication skill: Most would say communication is the most important skill of a project manager and some would beg to differ. This is when the team members and project manager start feeling like a part of the organization and not just the project. In a bit exaggerating terms. But communication is an integral part of the leadership qualities. it is about getting people to respect you with your leadership skills and qualities. actual values for costs. And he needs to be able to convey this vision to his team members. Communication not only allows for great leadership but also for openness and relativity. No. time and cost (quality also)—in managing competing project requirements. Without communication the project manager cannot lead. 521063004 Page 3 of 13 . work in progress. The Project Manager collects metrics data (such as baseline.
Only then will people follow him and respect his decisions. Delegation: The project manager should be able to handle delegation with ease. integrity or loyalty. Also this shows that the project manager trusts the team in doing tasks. either with the team or the project itself.MBA - PM0010 . Team building: The project manager should also be a team builder. Problem solver: An efficient project manager should be capable of solving any and all problems.Introduction to Project Management Semester: 3 . Skill and knowledge: There needs to be some skill and knowledge that the project manager needs to have. He should be able to recognize skills and expertise of his team members and assign or delegate tasks according to those. lacking dedication. A good project manager needs to understand or empathize with the fact that there is a life outside the work place and that people are not machines without emotions. the project manager needs to have it all. There are times when things do not go as expected in such a case the project needs to maintain his cool and be composed irrespective of the amount pressure he is under. The project manager is ultimately responsible for setting standards. he should have enthusiasm and the right attitude. 521063004 Page 4 of 13 . No. Composed: We do not live in a perfect world. There needs to be commitment and optimism involved. Passion: A project manager without passion is one that is simple put. the project manager should know what he is doing and should be able to guide the rest of the team. To put it simply. He should be able to hold and pull the team together to work under different conditions. The project manager has to be passionate about the project. The actions of the project manager set an example for the rest of the team members.Sikkim Manipal University . because they need to feel he is doing it for the project. ethically and otherwise for the rest of the team. Trust inspires confidence. The project manager needs to practice before preaching and to lead by example. The team starts as a group of strangers and needs to be made into a core group of people.Assignment Set: 1 Honesty: Call it honesty. Bhupinder Singh Reg. Empathy means to understand. These two words are independent of each other. This shows good leadership and strength in character. Compassion: Do not mistake empathy or compassion for sympathy.
MBA - PM0010 . Customer: Bhupinder Singh Reg. The major stakeholders of a project are: Project Manager Customer Performing Organization Project Team Members Sponsor Society Below figure depicts a diagrammatic representation of the major stakeholders of a project. Project Manager: Project manager is the interface between the customer and other internal stakeholders. b) Describe the major type of Organizational structure in Detail. 521063004 Page 5 of 13 .Sikkim Manipal University .Assignment Set: 1 Question 3: a) Describe the major types of stakeholders in a project. project stakeholders are “individuals and organizations actively involved in the project. According to Stanford Research Institute5 stakeholders are “those groups without whose support the organization would cease to exist”. Answer: a) Major types of stakeholders in a project: According to PMI’s guide to PMBoK. No. or whose interests may be positively or negatively affected as a result of project execution or project completion”. The project manager holds the responsibility for the successful implementation of the project and is an important stakeholder.Introduction to Project Management Semester: 3 .
acting as a link between the project and the performing organization. there are several other stakeholders like project owner. it is important that the resources required for project implementation flow freely from the organization to the project. In addition. For example. No.g. The customer can be any one of the following: Internal customer: They are individuals within the parent organisation. For example.MBA - PM0010 . Hence. suppliers or contractors. They work directly with or under the project manager depending on the organization structure adopted for the project. Performing Organization: The performing organization is the enterprise whose employees are most directly involved in performing the work of the project. The accounts department is the internal customer. the role of the engineering firm changes from performing organization to sponsor for the projects undertaken by the designing or construction company. therefore. uses team building skills to ensure that the team members work as a team.Sikkim Manipal University . Sponsor: The sponsor is an individual or a group within or external to the parent organization who arranges the financial resources in cash or in kind for the project. Stakeholder roles and responsibilities may overlap. the IT department is assigned to provide a software package for the accounts department. External customer: They are individuals or organisations that pay for and use the final product. There are three types of organizational structures: Bhupinder Singh Reg. when an engineering firm finances a plant it is in the designing or construction field. government agencies and media outlets and the society. Intermediate customer: They are external to the company but not the final user of the product e. the project team must consider all requirements of the customer while creating the deliverable. Major type of Organizational structure in Detail: Organizational structure has a significant impact on the functioning of a project manager. the project contributes towards achieving the corporate goals of the performing organization. To enable successful completion of a project. distributors and wholesalers. fund providers. The naming or grouping of stakeholders is primarily an aid to identify individuals or organizations who view themselves as stakeholders.Assignment Set: 1 Customers are the internal or external group of individuals who directly affect the project. service or facility based on customer requirements and to deliver it to the customer. 521063004 Page 6 of 13 b) .Introduction to Project Management Semester: 3 . Therefore. The sponsor may be a senior executive of an organization or a junior manager with formal authority who is responsible for the project thus. The aim of the project is to create a product. The project manager. Project Team Members: Team members working in their individual areas of expertise play a crucial role in the success of the project.
the different departments are production. but the groups working in these departments report directly to the project manager in the execution of various projects. defined as the Project Management Process Groups.Introduction to Project Management Semester: 3 .. finance. If a new product is to be developed. The project manager directs work and sets priorities to employees assigned to the project manager for the project. project management includes a number of elements: four to five process groups. project managers and functional managers have equal authority. Traditionally. administration. quality control. and a control system.Assignment Set: 1 1) Functional organization: It is a hierarchical structure. 3) Matrix-based organizations: It is the combination of the features of functional and project-based organizational structures. Question 4: List and describe in brief the various qualities of the project management process. Functional departments exist in this organization. the line of control is clear. 2) Project-based organizations: These are designed to provide near total authority to the project manager. personnel ands so on. This constitutes a dual reporting system for each functional staff member. It defines a clear Superior-Subordinate relationship. 521063004 Page 7 of 13 . In a manufacturing organization.Sikkim Manipal University . the same basic project management processes will be used. Answer: Overview of Project Management Processes: PMBoK organizes Project management processes into five groups. Regardless of the methodology or terminology used. i. Project management of a single project essentially comprises a number of interlinked processes. marketing or quality control are found. engineering. In this type of organizational structure. The underlying concept for the interaction among the processes is the Plan-Do-Check-Act (PDCA) cycle is referred in the American Society for Quality (ASQ) handbook.MBA - PM0010 . the query is passed on to the respective department through formal communication channels. each group comprising one or more processes. Each department carries out work in its area of specialization and employees in each department work with its respective expertise within the department's line of control. If answers to questions concerning manufacturing. the engineering department handles only the design development phase of the product. which implies that the functional staff member reports to both project manager and their functional manager. Major process groups generally include: Bhupinder Singh Reg. marketing. No.e.
Executing: Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project's requirements. Answer: a) SWOT Analysis as a Strategic Planning tool: Bhupinder Singh Reg. 521063004 Page 8 of 13 .Assignment Set: 1 Initiation Planning or development Production or execution Monitoring and controlling Closing Initiation: The initiation processes determine the nature and scope of the project. Execution process involves coordinating people and resources.Introduction to Project Management Semester: 3 . If this stage is not performed well. Closing: Closing includes the formal acceptance of the project and the ending thereof. a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into the project. as well as integrating and performing the activities of the project in accordance with the project management plan.MBA - PM0010 . b) Net Present Value (NPV) as a Project selection criterion. to control the execution of the project. cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. Planning and design: After the initiation stage. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. No. The main purpose is to plan time.Sikkim Manipal University . when necessary. Administrative activities include the archiving of the files and documenting lessons learned. Any deficiencies should be reported and a recommendation should be made to fix them. the project is planned to an appropriate level of detail. The deliverables are produced as outputs from the processes performed as defined in the project management plan. it is unlikely that the project will be successful in meeting the business’ needs. Monitoring and controlling: Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken. Question 5: Write a short note on the following: a) SWOT Analysis as a Strategic Planning tool. As with the Initiation process group.
product development and others. Opportunities and Threats: STRENGTHS: Attributes of the organization those are HELPFUL to achieving the objective. weak management. long product development cycle. skills. The situation may be strategic related or capabilities related. operations. market position.MBA - PM0010 . serious competitive barriers. and can give you valuable guidance in making decisions about what to do next.O. and others. resources.Assignment Set: 1 S. and others. changes in purchasing. This TQM article aimed to share how SWOT Bhupinder Singh Reg. If you have a large team. and include proprietary technology. developed at Stanford University in the late 1960's. poor product or market image. No. It also provides a highly productive way to get your key personnel involved in the management decision-making process.Sikkim Manipal University . There are many ways how a SWOT analysis is used. and might include population shifts. SWOT analysis provides an efficient way to evaluate the range of factors that influence your operation. is an abbreviation for Strengths-Weaknesses-Opportunities-Threats. heavy debt burden.W. This simple tool. the SWOT matrix involves a frank evaluation of a business' Strengths. and can include obsolete equipment. SWOT Analysis is one of the effective analytical tools to evaluate a situation.Introduction to Project Management Semester: 3 . and could include a specialty niche skill or technology that suddenly realizes a growth in broad market interest.T. Opportunities are outside conditions or circumstances that the company could turn to its advantage. Threats are current or future conditions in the outside environment that may harm the company. Make sure to include not only your market planners. is an extremely powerful ingredient in the recipe for business success. Used by most Fortune 500 companies in strategic planning. SWOT Analysis is often used along with Strategic planning and it forms one of the key critical success factors in a Strategic Planning Process. One of the most fundamental tools for strategic market planning is the use of SWOT analysis template to evaluate potential business success. OPPORTUNITIES: External conditions those are HELPFUL to achieving the objective. patents. WEAKNESSES: Attributes of the organization those are HARMFUL to achieving the objective. changes in governmental or environmental regulations. no clear strategy. Weaknesses are conditions within the company that can lead to poor performance. THREATS: External conditions those are HARMFUL to achieving the objective. 521063004 Page 9 of 13 . The exercise of going through the SWOT analysis matrix can be a great opportunity to do management team building. These are the company's core competencies. Weaknesses. break into 4 teams for each of the quadrants and each team can prepare and report its findings. and others. but also finance.
S.T. The result of this formula if multiplied with the Annual Net cash in-flows and reduced by Initial Cash outlay will be the present value but in case where the cash flows are not equal in amount then the previous formula will be used to determine the present value of each cash flow separately. the converse process in DCF analysis . In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price. once financing charges are met. both incoming and outgoing.) Rt .Assignment Set: 1 analysis can be used as an essential tool to Strategic Planning Process as I practiced in my workshop conducted over the years. Economic. it also examines internal factors such as operational capabilities as compared to the competitors. NPV is a central tool in discounted cash flow (DCF) analysis. inflow minus outflow) at time t. and is more widely used in bond trading. and accounting.The time of the cash flow i . is defined as the sum of the present values (PVs) of the individual cash flows. Any cash flow within 12 months will not be discounted for NPV purpose.MBA - PM0010 . Net Present Value (NPV) as Project Selection Criterion: Bhupinder Singh Reg.The discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk. in present value terms.Sikkim Manipal University . Then they are summed. No. For educational purposes. and is a standard method for using the time value of money to appraise long-term projects. the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV).the net cash flow (the amount of cash. and widely throughout economics. Used for capital budgeting. 521063004 Page 10 of 13 . Besides. the net present value (NPV) or net present worth (NPW) of a time series of cash flows.Introduction to Project Management Semester: 3 . The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or discount curve and outputs a price. Therefore NPV is the sum of all terms.is called the yield. Where t . R0 is commonly placed to the left of the sum to emphasize its role as (minus) the investment. finance.taking a sequence of cash flows and a price as input and inferring as output a discount rate (the discount rate which would yield the given price as NPV) . Each cash inflow/outflow is discounted back to its present value (PV). b) Net Present Value (NPV) as a Project selection criterion: In finance. it can become a complex process because it entails several data analysis involves external factors such as Political. While detail Analysis is performed.E. Societal and Technological in short called P. it measures the excess or shortfall of cash flows.
special tax benefits and exemptions for an industry or a location. Developing the project team. Product differentiation: This is achieved by innovative product features. Acquiring a Project Team: The members who belong to different groups and functions and are allocated to the activities of the same project. steel production. Sometimes.MBA - PM0010 . A team can be divided into sub-teams if required. For example. the project management team has control over the selection process. However. Bhupinder Singh Reg. due to the nature of the specific formation and disbandment. project teams are usually agile in organisations. customised service and so on. Question 6: Describe in brief the Human resource management process in a project. Answer: Project Human Resource Management: Project Human Resource Management is a subset of Project Management that includes various processes that are essential and are required for making the most effective use of the people involved with the project. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project.Assignment Set: 1 NPV is the present value of the future revenues after deducting future costs. Selection of team mates involves certain concerns which need to be evaluated. high quality products.Introduction to Project Management Semester: 3 . Generally. they are disbanded when the project is complete. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. unit cost is substantially reduced by adopting high production volume. 521063004 Page 11 of 13 . Some factors that companies use to enhance NPV are: Government policy. This is a very popular and valid method for selecting a project from the financial viewpoint. The main process involved with the HR Management process includes: Acquiring the project team. form a project team. petroleum refining.Sikkim Manipal University . Managing the project team. the project teams are only used for a defined period of time. However. and mining. Technology superiority: DRL outperformed its competitors in the drugmanufacturing industry because of their technology based on research and development. No. Human Resource Management includes various processes that are vital to make the most effective use of the people involved with a project. Economies of scale: In manufacturing. For example.
The five stages of team development are: Forming: Forming involves knowing every team member individually. Project managers should administer the development of the project team. The project manager should create the relevant environment for teamwork. thus reducing conflicts. The team members are inclined to work independently. To allow sharing knowledge among team members. which finally leads to a quality project. Storming: Storming involves the actual Project Management process. These factors include a series of environmental factors (such as work experience. The project stakeholders should provide the required support to the development of the project team. and formulation of a thorough staffing management plan.Assignment Set: 1 A number of factors are considered while deciding the team members. Failure to obtain the essential Human Resources for the project will affect project agenda. Open communication between the project manager and team reduces conflicts. To develop cohesiveness in the project. and updating the staffing management plan. consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation. No. The goals for developing a project team are: To develop technical knowledge about the project. To achieve project success. The process refers to increasing competencies of individuals and building up team spirit.MBA - PM0010 . 521063004 Page 12 of 13 . without losing their individuality. Project managers should encourage feedback from the team. determining availability of resources. To enhance trust among team members. Important factors that are considered during the process of acquiring the team are: The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project. The project manager should provide effective review and good support to the team staff. the next steps (or outputs) of the process involve staffing out assignments to the team.Introduction to Project Management Semester: 3 . industry and culture while at work. The project team may experience variance in language. budgets. The management should also support the project managers. The project team should be dedicated to the project and the team members should work together. Once the team is properly staffed. Projects are done in diversified environments. This stage promises action. They find out about each other and know who’s who. and cost). this leads to quality output and meeting delivery schedules with reduced cost. There is a struggle for project team control.Sikkim Manipal University . availability. Developing a Project Team: Developing a project team is a process of enhancing interaction among the team members and also the project manager. there should be good communication among the team members. derivation of clear and concise project organisation charts. provide new goals for the team to compete and achieve. and momentum builds as members have to Bhupinder Singh Reg.
the team members figure out the hierarchy of the team and the informal roles of team members. 521063004 Page 13 of 13 . and coordinating changes to enhance overall project performance.MBA - PM0010 .Sikkim Manipal University . socialising. The project manager should encourage building competencies among the team members and reward them accordingly. Managing the team is one of the most critical aspects of project management. Providing effective performance review and appraisal to inspire the project team. monitoring team performance.Assignment Set: 1 lead the project team. Building co-operative working relationship and ensuring effective communication among all members of the project team. Adjourning: Adjourning implies completion of the project so that the team is ready for a new one. The team develops a strong commitment to the team’s goal and work to achieve it. During this phase. Key aspects of managing a project team are: Assigning work and observing the commitment level in each team member. Performing: Performing means smooth movement of project development by a well-organised project team. Bhupinder Singh Reg. and providing constructive criticism. solving issues. Managing a Project Team: Managing a project team is the process of delegating responsibilities and tasks. No. The team members blend into their roles and focus on completing the project work as a team. providing feedback.Introduction to Project Management Semester: 3 . Norming: Norming is working together. Monitoring team spirit.
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