CHE620

PROJECT MANAGEMENT
Chapter 2: MANAGER, ORGANIZATION & TEAM

By: Cik Siti Khatijah Jamaludin

Faculty of Chemical Engineering
 Definitions of Project Manager
• The person with authority to manage a project. This
includes leading the planning and the development
of all project deliverables. The project manager is
responsible for managing the budget and work plan
and all Project Management procedures such as
scope management, issues management, risk
management, etc.
 Project Manager (PM)
• Prime job of a PM:

To make sure that project is

properly planned, implemented
and completed!!!
 Functional vs. Project Managers

Functional Manager Project Manager

• Expert in functional area • May not be expert in any area
• Full authority over employees • May have limited authority
over employees
• Competes for resources with • Competes for resources with
other functional dept. other projects
• Knows subordinates very well • May not have known
subordinates very long
• Functional environment is • Project environment is
fairly stable & people are temporary & people expect
comfortable in their jobs changes
• Applies Analytical Approach to • Applies System Approach to
understanding and solving understanding and solving
problems problems
What does a PM do?
 What does a PM do? (cont.)

Project Project
Integration Procurement

Risk
Scope
Management
Management

People
Schedule
Management
Management
Cost Quality
Management Management
Project Integration

• At the beginning of a project, it’s important to develop a solid understanding of

the project’s goals, and how the various elements will fit together for a successful
outcome.

• Project manager has to perform project analysis and develop a comprehensive

Project Initiation Document, critical and high-level document, which covers the
basic project needs and outcomes, so that everyone can understand the project’s
goals.

Scope Management

• Projects have a nasty habit of expanding as they go along, making it impossible to

hit deadlines. To control this “expansion”, it’s essential to define the scope at
the very start of your project based, and then manage it closely against this
signed-off definition.
• For example, in case that a client wants to change the scope during project
development because of some new functionality, project manager has to
re-negotiate terms and conditions, and prepare new documentation for signing.
Schedule Management

• A project’s scope can easily grow, and so can the time needed to complete it.
• For a project to be completed successfully, despite all of the unknowns, it’s important
to clearly define the sequence of activities, estimate the time needed for each one,
and build in sufficient contingency time to allow for the unexpected.
• Project can be very complex, particularly when different people do different things and
their work output becomes the input for another piece of work. That’s why it’s
necessary to monitor every activity, just as much as the whole project.

Cost Management

• To determine what a project will cost, project manager must be systematic with the
estimation, budgeting, and controlling.
• Many project decisions will have an impact on cost. Therefore, it’s important to
understand what’s driving the costs and develop a system for monitoring the
project’s financial performance.
• Managing project finances requires many tools and strategies, and it’s very important
to set up a reliable control system to keep track of the costs and required changes.
Quality Management

• Projects must be delivered not only on time and on budget, but also in according to
specification (this is what “quality” means in project management).
• It’s a project manager’s responsibility to ensure that project outcomes, at every stage
of the project, are consistent with client’s needs. Never waste precious time and
resources trying to achieve an inappropriate level of quality.

People Management
• The people on the project team can make or break the final outcome. Getting the right
mix of interpersonal and political skills is just as important as the right technical skills.
• PM must keep the project team on track and working productively, also be prepared to
help people through the Forming, Storming, Norming and Performing stages that so
many teams go through.
Risk Management

• Project managers must understand which of the risks could significantly impact their
plans.
• An Impact / Probability Chart is a good way to deal with this. Always be prepared, so
develop a plan for monitoring and controlling the major risks involved in the project.
• Using Risk Analysis, develop options to reduce risks, prepare Contingency Plans, and
decide who is responsible for which parts of risk response.

Project Procurement

• Generally, cooperation with external suppliers has a large influence on project costs.
• Suppliers also affect whether the project will deliver on time and according to
specification.
• Never rushes with the decision, and makes sure to select the best supplier.
PM’s Essential Soft Skills
 PM is also a good….
• Manager
– oversees and manages the work and the employees
• Facilitator
– ensures that all resources and work are available when
needed and that any problems are resolved
• Communicator
– must effectively communicate with senior management,
client, project team, and other participants (vendors, dept.
managers, etc.) as needed (which is frequently)
Communication Path of a PM

Mantel et al. (2011)

 PM is also a good….(cont)
• Politician
– knows how to “get things done”, how to “work the
system”, how to get people to cooperate, how to influence
others

• Negotiator
– skilled at getting what is needed for the project to
succeed: negotiate with senior mgmt. for more resources,
negotiate with functional manager to get a particular
project team member or to use a functional resource,
negotiate with vendor for shorter lead time, negotiate
with client about project goal changes
 PM’s Responsibilities
• Acquiring resources
– Funds, personnel, other resources
• Fighting fires and obstacles
• Providing leadership
• Making tradeoffs between project goals
• Negotiating and persuading
• Resolving conflicts
Top 10 Qualities of an Effective Project
Manager
1. Inspires a Shared Vision
2. Good Communicator
3. Possess High Integrity
4. Possess High Enthusiasm
5. Empathy
6. Competent
7. Ability to Delegate Tasks
8. Cool Under Pressure
9. Possess Team-building Skills
10. Possess Problem Solving Skills
 Background & Qualifications
– At least 4-5 years of Work Experience
– Management Degrees / Related Training or Coursework
– Leadership / Team handling Experience
Certifications :
 PMP certification offered by Project Management Institute
 Certification Programs offered by International Institute of
Learning
 Job Outlook
• Faster than average growth through 2014

• Money, money, money

– Figures are intended as a guideline only. Salaries depend
on experience, the industry, the country and the size and
type of project.

• Earnings are usually between £25,000 and £50,000 a year Top

salaries can reach £80,000 or more
• Freelance project managers may be paid around £300 to £400 a
day
• There may be extra bonuses for meeting deadlines
 Challenges
• Management of team dynamics

• Management of client relationships

• Long working hours

• High stress work environment

• Ethical dilemmas

• Impact on personal life

Example : Job Posting
 Conclusion
• High level of responsibility
• Key position within the organization
• Job outlook – positive
• Time, resource, people, and client
management skills necessary
• Technology skills necessary
• Better salary for meeting bigger challenges
 Project Team Members
• Characteristics of effective team members:
– High quality technical skills
– Political sensitivity
– Strong problem orientation
– Strong goal orientation
– High self-esteem
 Human Factors and the Project Team
• Inspiring Project Team Members:
– The project manager often has little control over the economic
rewards and promotions of project team members, but this
does not mean he/she cannot facilitate motivation of team
– How are technical employees motivated?
• Recognition
• Achievement
• The work itself
• Responsibility
• Advancement
• Learning new skills
© 2006 John Wiley and Sons, Inc.
 Interpersonal Conflict
• Conflict and the Project Manager
– Most of the conflict on project teams is the result of
individuals focusing on the project through the eyes of their
individual discipline or department
– Conflict avoiders do not make successful project managers
– On occasion, compromise appears to be helpful, but most
often, gently confronting and resolving the conflict is the
method of choice, for a win-win situation

© 2006 John Wiley and Sons, Inc.

 Interpersonal Conflict
• The focus of conflict can often be related to the stage in
the project’s life cycle
– When the project is first organized, priorities, procedures and
schedules all have roughly equal potential to cause conflict
– During the buildup phase, priorities become significantly more
important than any other conflict factor
– In the main program phase schedules are the most important
cause of conflict followed by technical disagreements
– At the project finish, meeting the schedule is the critical issue

© 2006 John Wiley and Sons, Inc.

That’s all…Thanx! ;-)