You are on page 1of 91

Project Management

This book is a part of the course by Jaipur National University, Jaipur.


This book contains the course content for Project Management.

JNU, Jaipur
First Edition 2013

The content in the book is copyright of JNU. All rights reserved.


No part of the content may in any form or by any electronic, mechanical, photocopying, recording, or any other
means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior permission of
the publisher.

JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the
content whenever the need arises, and to vary it at any time without prior notice.
Index

I. Content....................................................................... II

II. List of Figures...........................................................VI

III. List of Tables......................................................... VII

IV. Abbreviations.......................................................VIII

V. Case Study................................................................ 75

VI. Bibliography............................................................ 79

VII. Self Assessment Answers..................................... 80

Book at a Glance

I/JNU OLE
Contents
Chapter I........................................................................................................................................................ 1
Principles of Project Management.............................................................................................................. 1
Aim................................................................................................................................................................. 1
Objectives....................................................................................................................................................... 1
Learning outcome........................................................................................................................................... 1
1.1 Introduction............................................................................................................................................... 2
1.2 Defining Project and Project Management............................................................................................... 2
1.3 Need for Project Management.................................................................................................................. 2
1.4 Basic Characteristics of Projects............................................................................................................... 2
1.5 The Project Life Cycle.............................................................................................................................. 2
1.6 The Project Manager................................................................................................................................. 3
1.7 Knowledge Areas, Process and Connection.............................................................................................. 3
1.8 Phases of Project Management Life Cycle............................................................................................... 4
1.9 Project Management Processes................................................................................................................. 5
1.10 Project Failure......................................................................................................................................... 6
1.11 Essentials of Project Management.......................................................................................................... 7
1.11.1 What is a Project?................................................................................................................... 7
1.11.2 Project parameters for negotiation.......................................................................................... 7
1.11.3 How does project management “Add Value”?........................................................................ 7
1.12 Project Management Functions............................................................................................................... 8
Summary........................................................................................................................................................ 9
References...................................................................................................................................................... 9
Recommended Reading................................................................................................................................ 9
Self Assessment............................................................................................................................................ 10

Chapter II.................................................................................................................................................... 12
Project Planning and Processes................................................................................................................. 12
Aim............................................................................................................................................................... 12
Objectives..................................................................................................................................................... 12
Learning outcome......................................................................................................................................... 12
2.1 Introduction............................................................................................................................................. 13
2.2 Project Life Cycle and Process Flows.................................................................................................... 13
2.3 Characteristics......................................................................................................................................... 14
2.4 Project Planning and Scoping................................................................................................................. 14
2.5 The main project planning processes...................................................................................................... 15
2.5.1 The identification process - The main steps in the identification process of any
projects are as follows:........................................................................................................... 15
2.5.2 The Review Process................................................................................................................ 15
2.5.3 The Analysis Process.............................................................................................................. 15
2.6 Planning Tools and Estimation .............................................................................................................. 16
2.6.1 Planning Tools ....................................................................................................................... 16
2.6.2 Planning Estimation................................................................................................................ 18
2.7 Estimation Approaches and estimation tools ......................................................................................... 19
2.7.1 Estimation Approaches........................................................................................................... 19
2.7.2 Estimation Tools..................................................................................................................... 19
2.8 Risk Management................................................................................................................................... 20
2.8.1 Components............................................................................................................................ 20
Summary...................................................................................................................................................... 21
References.................................................................................................................................................... 21
Recommended Reading.............................................................................................................................. 21
Self Assessment............................................................................................................................................ 22

II/JNU OLE
Chapter III................................................................................................................................................... 24
Project Management Essentials................................................................................................................. 24
Aim............................................................................................................................................................... 24
Objectives..................................................................................................................................................... 24
Learning outcome......................................................................................................................................... 24
3.1 Introduction............................................................................................................................................. 25
3.2 Characteristics of Project Mindset.......................................................................................................... 25
3.3 Process Groups........................................................................................................................................ 25
3.3.1 Process Interactions................................................................................................................ 25
3.3.2 Processes Interaction Initiating processes............................................................................... 25
3.4 Customization......................................................................................................................................... 26
3.5 Project Monitoring and Control.............................................................................................................. 26
3.6 Project Progress Control......................................................................................................................... 27
3.6.1 Approvals................................................................................................................................ 28
3.6.2 Change Control....................................................................................................................... 28
3.6.3 Changing Project Management Process................................................................................. 28
3.6.4 Tools for changing a Process.................................................................................................. 29
3.6.5 Project Closure........................................................................................................................ 29
3.6.6 Completion of activities and benefits..................................................................................... 29
3.6.7 Post Implementation Review.................................................................................................. 29
3.6.8 Tools for Post Implementation Review................................................................................... 30
3.6.9 Final project reporting and documentation............................................................................. 30
Summary...................................................................................................................................................... 31
References.................................................................................................................................................... 31
Recommended Reading.............................................................................................................................. 31
Self Assessment............................................................................................................................................ 32

Chapter IV................................................................................................................................................... 34
Concepts of Managing Conflict, Quality and Information System........................................................ 34
Aim............................................................................................................................................................... 34
Objectives..................................................................................................................................................... 34
Learning outcome......................................................................................................................................... 34
4.1 Introduction............................................................................................................................................. 35
4.2 Concept of Managing Conflicts, Quality and the Information System.................................................. 35
4.2.1 Conflict Management............................................................................................................. 35
4.2.2 Communication Requirement and Capabilities...................................................................... 35
4.2.3 Quality Management............................................................................................................... 35
4.2.4 Project Management Information System.............................................................................. 35
4.3 Modern Trends I Project Management................................................................................................... 36
4.4 Perception............................................................................................................................................... 36
4.4.1 Project Development Process Cycle....................................................................................... 36
4.4.2 Macro Issues........................................................................................................................... 37
4.4.2.1 Evolving Key Successes Factors Upfront................................................................ 37
4.4.2.2 Empowerment Title.................................................................................................. 38
4.4.2.3 Partnering Decision Making.................................................................................... 38
4.4.2.4 Management by Exception....................................................................................... 38
4.4.3 Knowledge Factor (K)............................................................................................................ 38
4.5 The Modern Mantra of Project Management.......................................................................................... 39
4.6 New Horizon in Project management..................................................................................................... 39
Summary...................................................................................................................................................... 41
References.................................................................................................................................................... 41
Recommended Reading.............................................................................................................................. 41
Self Assessment . ......................................................................................................................................... 42

III/JNU OLE
Chapter V..................................................................................................................................................... 44
Project Performance through Project management Office and Human Resource.............................. 44
Aim............................................................................................................................................................... 44
Objectives..................................................................................................................................................... 44
Learning outcome......................................................................................................................................... 44
5.1 Introduction............................................................................................................................................. 45
5.1.1 Project Management Office.................................................................................................... 45
5.2 Improvement of Performance................................................................................................................. 45
5.2.1 Reviews and their purpose...................................................................................................... 45
5.3 Project Manager Teams........................................................................................................................... 46
5.4 Professional Responsibility..................................................................................................................... 46
5.5 Human Resource Management............................................................................................................... 46
5.6 Personnel Productivity............................................................................................................................ 47
5.6.1 Assessment of personnel Productivity.................................................................................... 47
5.7 Team Work and Interpersonal Behavior................................................................................................. 48
5.8 Traits of Successful teams....................................................................................................................... 48
Summary...................................................................................................................................................... 49
References.................................................................................................................................................... 49
Recommended Reading.............................................................................................................................. 49
Self Assessment............................................................................................................................................ 50

Chapter VI................................................................................................................................................... 52
Project Development and Modern Trends in Project Management Perception................................... 52
Aim............................................................................................................................................................... 52
Objectives..................................................................................................................................................... 52
Learning outcome......................................................................................................................................... 52
6.1 Introduction............................................................................................................................................. 53
6.2 Project Development Process Cycle....................................................................................................... 53
6.3 Modern Trends in Project Management Perception................................................................................ 54
6.4 Recent Revolutions in Project Management........................................................................................... 55
Summary...................................................................................................................................................... 56
References.................................................................................................................................................... 56
Recommended Reading.............................................................................................................................. 56
Self-Assessment........................................................................................................................................... 57

Chapter VII................................................................................................................................................. 59
Organizational Issues in Project Management........................................................................................ 59
Aim............................................................................................................................................................... 59
Objectives..................................................................................................................................................... 59
Learning outcome......................................................................................................................................... 59
7.1 Introduction............................................................................................................................................. 60
7.2 Organizational Change............................................................................................................................ 60
7.2.1 Evolutionary change............................................................................................................... 60
7.2.2 Revolutionary Change............................................................................................................ 60
7.3 Traits Of professional manager............................................................................................................... 61
7.4 Bringing about Organizational Change in the Project Management Scenario....................................... 64
Summary...................................................................................................................................................... 65
References.................................................................................................................................................... 65
Recommended Reading.............................................................................................................................. 65
Self Assessment............................................................................................................................................ 66

IV/JNU OLE
Chapter VIII................................................................................................................................................ 68
Project Risk Management ......................................................................................................................... 68
Aim .............................................................................................................................................................. 68
Objectives..................................................................................................................................................... 68
Learning outcome......................................................................................................................................... 68
8.1 Introduction............................................................................................................................................. 69
8.2 Planning for Project Surprises-coping with Risk.................................................................................... 69
8.2.1 When to Perform Risk management....................................................................................... 69
8.3 Risk Management Planning.................................................................................................................... 70
8.4 Risk Management Process...................................................................................................................... 70
8.5 Overview of Risk Management.............................................................................................................. 71
Summary...................................................................................................................................................... 72
References.................................................................................................................................................... 72
Recommended Reading.............................................................................................................................. 72
Self Assessment . ......................................................................................................................................... 73

V/JNU OLE
List of Figures
Fig. 1.1 Connection between process groups in a phase................................................................................. 3
Fig. 1.2 Knowledge area and processes.......................................................................................................... 4
Fig. 2.1 Development Plan, Project Tracking and Oversight....................................................................... 17

VI/JNU OLE
List of Tables
Table 2.1 Project characteristics................................................................................................................... 14
Table 2.2 Project Organization .................................................................................................................... 16
Table 3.1 Characteristics of project mindset................................................................................................. 25

VII/JNU OLE
Abbreviations
CM - Configuration Management
CMM - Capability Maturity Model
CMS - Changes Management System
ISO - International Organization for Standardization
SEI - Software Engineering Institute
TQM - Total Quality Management
WBS - Work breakdown Structure

VIII/JNU OLE
Chapter I
Principles of Project Management

Aim
The aim of this chapter is to:

• explain the concept of Project management

• highlight the objectives of project life cycle

• elucidate the need for project management

Objectives
The objectives of this chapter are to:

• explain the nature of project

• elucidate the concept of project and project management

• explain the process of project management

• highlight the importance of project management in business

Learning outcome
At the end of this chapter, the students will be able to:

• understand the basics of project management

• explain the phases of project management

• get an overview of project management function

1/JNU OLE
Project Management

1.1 Introduction
The economy of India has been growing over the last few years. Lots of industries have come up in various sectors
creating a market boom. Lots of money is getting invested in various projects. In this perspective, it becomes very
important for the managers to manage projects effectively in order to maximize returns. Gradually project management
has moved into computing industry with the development of hardware to software.

1.2 Defining Project and Project Management


• Project: A project is a set of activities arranged in an ordered network aiming at achieving the desired goals.
Upon completion of all these activities, the goals of the project are expected to be achieved.
• Management: Management is the technique of understanding the problems and needs and controlling the use
of resources (such as cost, time, man power, material and so on).
• Project Management: It is an art of controlling the cost, time, manpower, hardware and software resources
involved in a project.
• Project cycle: Basically a project cycle consists of the various activities of operations, resources and limitations
imposed on them.
• Process: A process is a part of the project consisting of simple and routine instruction to achieve a desired result.
A process is responsible to bring about changes in the input fed to the process and give out desired outputs.
• Resources: It refers to manpower, machinery, money and materials required in a project.

1.3 Need for Project Management


Project management is necessary because of the reasons mentioned below -
• a project requires huge investments which should not go waste
• a loss in any project will have direct and indirect impact on the society
• prevent failure in projects
• the scope of the project activity may change in future
• the technology used may change during project execution
• consequences of negativity in problems related to the project could be very serious
• change in economic conditions may affect a project

1.4 Basic Characteristics of Projects


The dividing line between project processes depends on whether the organization repeats an activity often enough
for it, to become a routine.
• Here are some of the characteristics of projects as per ISO 1006:20:
• unique, non-representative phases consisting of processes and activities
• have some degree of risk and uncertainty
• expected to deliver specified quality results within pre-determined parameters
• have planned start and finish dates within pre-specified cost and resources constraints
• may be of longer duration and subjected to change in internal and external influences over time

1.5 The Project Life Cycle


All projects have to go through some basic steps in the process of conceptualizing, designing, developing and putting
in operation the project’s deliverables or outputs. Different organizations and authors tend to develop their own way
of defining the different project life cycle. A life cycle of project consists of:
• understanding the scope of project
• framing the objectives of project
• formulation and planning various activities

2/JNU OLE
• project execution
• project monitoring and controlling project resources

1.6 The Project Manager


The Project manager is an important team member in an organization. The project manager is a person who manages
the projects. This individual predicts the difference between the project’s success and failure rates. The project
manager is responsible to carry all the tasks of a project. There are few other responsibilities the project managers
have to carry, such as:
• budgeting and cost control
• scheduling tasks
• allocating resources
• tracking project expenditures
• ensuring technical quality
• manage relations with customer and company

Life cycle of a project manager overlaps with the development life cycle within a project. Duties of a project manager
start before the development and continue till the delivery of the product.

1.7 Knowledge Areas, Process and Connection


The main knowledge areas and processes in project management, their relationships and relationships with the
process groups are shown in the figure below.

100 100
Resource Requirement
95 95
90 90 Probability
90
85
80 Design Changes
80
75 75 Funds
70
70
Risk
60
Approximate (%)

80
50
45
40
35
30 30
25 25
20 20 25
15 15 15 15
10 10
5
0
Start 1 2 3 4 Finish
Project Stage

Fig. 1.1 Connection between process groups in a phase

3/JNU OLE
Project Management

Filling
vacancies

The The
The job
Candidate Selection

Job Short The Post


The need attracting
specification listing interview selection

Advert
budget The job criteria venue terms
content

Advert Review
options timing interview induction
location CVs

approval person Short list tour relocation

decide

Fig. 1.2 Knowledge area and processes

1.8 Phases of Project Management Life Cycle


The various phases in project management life cycle are as follows:
• Analysis and Evaluation Phases
‚‚ it starts with receiving a request to analyze the problem from the customer
‚‚ the project manager conducts the analysis of the problem and submits a detailed report to the top
management
‚‚ the report should consist of what the problem is, ways of solving the problem, the objectives to be achieved,
and the success rate of achieving the goals
• Marketing Phases
‚‚ a project proposal is prepared by a group of people including the project manager
‚‚ this proposal has to contain the strategies adopted to make the product reach the costumers
• Design Phase

Input received
• Project’s feasibility study
• preliminary project evaluation
• project proposal
• customers interviews

Output produced
• system design specification
• program functional specification
• program design specification
• project plan

4/JNU OLE
• Inspecting, testing and delivery
‚‚ during this phase, the project teams work under the guidance of the project manager
‚‚ the project manager ensures the team implements the project designs accurately
‚‚ the project has to be tracked or mentioned through its cost, manpower and schedule
‚‚ managing the customer
‚‚ marketing the future work
‚‚ perform quality control work
• Post completion analysis phase
‚‚ staff performance is to be evaluated
‚‚ documentation of lessons from the project
‚‚ project’s feedback analysis
‚‚ project execution report
‚‚ analysis of problems encountered during the project

1.9 Project Management Processes


Project management consists of the following interacting processes organized in groups:

Project Processes
A project process is a series of activities performed to achieve the target. Project process is classified into two main
categories:
• Project’s management process: Project’s management process is defined by an organization. It describes and
organizes the work of the project.
• Product oriented process: This is defined by the life cycle. It specifies and creates products and its related
works.

Process Groups
It consists of the following:
• initiating processes – recognizing the start and establishing commitment
• planning processes - devising and maintaining a workable scheme to accomplish the business need
• executive processes - coordinating with people to carry out plan
• controlling processes - monitoring and measuring progress and taking remedial action
• closing processes - formalizing acceptance and bringing project to a systematic end

Process Interactions
• The individual processes are linked by inputs and outputs.
• Inputs: It refers to the client documents which are converted to action plans need to be acted upon.
• Tools and techniques: It refers to the mechanisms applied on to the inputs to create desired outputs.
• Outputs: It refers to the documents that are results out of the process.

Every process is initiated by management group decisions which result in the next phases of the project. These are
the sub-categories which as follows:
• Planning processes
‚‚ planning has the major importance
‚‚ planning is much more significant compared to plans. Plans are nothing, what matters is the planning
‚‚ planning processes are highly interdependent
‚‚ if the cost is unacceptable, scope and time may be redefined

5/JNU OLE
Project Management

• Executive Processes
‚‚ interaction depends on nature of the work
‚‚ they are dynamic and dependent on team innovation
• Controlling Processes
‚‚ measuring project performance
‚‚ identifying variances from the plan
‚‚ updating project plans
‚‚ taking corrective actions
• Closing processes
‚‚ review of the project
‚‚ findings
‚‚ analysis of the project performance with respect to various processes

Customization
• Large projects may need details – A detailed project management plan might be necessary to indicate every
detail in the initial stages.
• Smaller projects may need relatively less details – A detailed plan may not be required in the initial stages.
• Process details might change for other reasons – Resource identifications might be required for the scope
definition.

1.10 Project Failure


A project mainly fails because of one or more of the following reasons:
• Incidence of project failure:
‚‚ project being initiated at random at all levels
‚‚ project’s objective not in line with business objectives
‚‚ project’s management is not observed
‚‚ project manager with no prior experience in the related project
‚‚ undedicated team
‚‚ lack of complete support from client

• Factors contributing to project’s success that are not emphasized:


‚‚ project objectives aligns with business objectives
‚‚ working within the framework of the project management methodologies
‚‚ effective scoping, planning, estimation, execution, controls and reviews closely intertwined with quality
‚‚ proactive approach towards project’s bottlenecks
‚‚ communication and managing expectations effectively with clients, team members and stake holders
‚‚ prior experience of project manager in a similar project

• Overview of information and communication technologies in projects includes:


‚‚ involvement of information and communication technologies such as the World Wide Web, e-mails, fiber-
optics and satellites
‚‚ enable societies to produce, access, adapt and apply information in greater amounts, more rapidly and at
reduced costs
‚‚ offer enormous opportunities for enchaining business and economic viability

6/JNU OLE
• Common problems encountered within projects:
‚‚ no prioritization of project activities from an organization position
‚‚ mishandling of one or more stages of the project
‚‚ less qualified /undedicated manpower
‚‚ absence of smooth flow of communication between the involved parties

1.11 Essentials of Project Management


1.11.1 What is a Project?
A project may be stated as:
• a programmer of non-routine work bringing about a beneficial change
• guide by at least one well-engaged sponsor who has adequate authorities and resources to charter the project
effort
• having a start and an end date
• a multi-disciplinary team brought together for the completion of the project
• well defined scope of work
• constrained by cost, time and quality

1.11.2 Project parameters for negotiation


During the course of a project, a team negotiates for one or more of these:
• scope, cost and scheduled objectives
• changes in scope, cost or schedules
• contracts terms and conditions
• resources

1.11.3 How does project management “Add Value”?


Project may be completed with one or more of the following:
• stretched deadline
• over stressed team
• wasted resources
• unmet customer functional requirements
• overshot budget

A good project management methodology provides a frame work for the processes. It provides guidelines for the
execution of project that increases the chance success of the project to a great extent, and therefore, provides value
to the projects. Some of the steps in a good project management are:
define the project
• reduce it to a set of manageable tasks
• obtain appropriate and necessary resources
• build a team to perform the project work
• plan the work and allocate tasks to the resources to monitor and control the work
• report progress to senior management and/or the project sponsor
• close down the project when completed
• review it to ensure the lessons are learnt and widely understood

7/JNU OLE
Project Management

1.12 Project Management Functions


Project management can be classified according to the project management functions. There are six project
management functions, which as follows:
• Risk Management: It is intended to eliminate or reduce risks inherent in project work. This can be achieved by
systematic thinking about possible risks, their impacts and ways to limit their likelihood and impact. Project
management must control and contain risks if a project is to stand a chance of being successful.
• Scope Management: It ensures if the changes to the scope of project are decided and authorized with due
consideration of all the relevant aspects. It also deals with ensuring that all the changes in scope are documented
and communicated to all those concerned in order to avoid mistakes and confusion.
• Monitoring and Control: It enables project managers to understand the true status of the project as it progresses
along the course of its lifecycle.
• Planning: Considering a core task of project management, it deals with sequencing and timing of project activities
to achieve a balance between the objectives of project completion and cost.
• Everyday Basic and Administration: This includes day to day tasks of project management which are intended
to improve the efficiency and effectiveness of team members by minimizing wastage of their time in other
project activities.
• Organization and Team: It deals with all the soft people issues such as setting up the project team, interface
within teams and other people etc.

8/JNU OLE
Summary
• Projects need to be managed differently from the day-to-day routine operations because of the temporary nature
of project.
• The fundamentals of project managements are clearly understood.
• Definitions of project, project management, management project life cycle, resources, scope, project cost and
process are stated.
• The primary reasons for using a project management methodology are to increase the likelihood of the project’s
success rate.
• Project management is a process by which projects are defined and implemented efficiently and effectively so
that the desired outcome of the projects is realized speedily, within the constrained resources.
• Difference between project and operations is the degree of uncertainty and risk involved in them.
• Each project has a unique purpose to achieve or a desired output to produce.
• Management of any project is directed towards achieving an optimum balance between three interlinked
objectives – quality, cost and time.
• There are some basic steps of the project management that has to be followed, and is called project life cycle.
• There are project management functions that are classified according to the project management (such as risk
management, scope management, monitoring and controlling, planning, everyday basic and administration and
organization and team.
• There are various other roles of the project manger that are to be followed.

References
• Meredith, J.R. and Mantel, S. J., 2008. Project Management – A managerial approach, 7th ed., Wiley.
• Gopalakrishnan, P. and Ramamoorthy, V. E., 2007. Textbook of Project Management, 1st ed., Macmillan
Publishers India.

Recommended Reading
• Williams, M., March 13, 2008, The Principles Of Project Management, Site Point Publication.
• Nicholas, J. M. and Steyn, H., February 20, 2008, Project Management for business, engineering and technology,
Butterworth-Heinemann Publication, 3rd ed.
• Portny, S. E., May 3, 2010, Project management for dummies, Kindle Publication, 3rd ed.

9/JNU OLE
Project Management

Self Assessment
1. Which of these is NOT the role of a project manger?
a. Budgeting and cost control
b. Allocating resources
c. Making a team
d. Manage relation with the customer and company

2. Which of the following does NOT form the phases of project management life cycle?
a. System design specification
b. Marketing
c. Inspecting, testing and delivery
d. Post completion analysis

3. Which of these are NOT project management processes?


a. Project processes
b. Perform quality control work
c. Customization
d. Process interaction

4. Which of the following statements is NOT false?


a. The analysis and evaluation phase starts with receiving a request to analyze the problem from the
manager.
b. Evaluation phase starts with receiving a request to analyze the problem from the team member.
c. Evaluation phase starts with receiving a request to analyze the problem from the board of directors.
d. Evaluation phase starts with receiving a request to analyze the problem from the accountant.

5. Which of the following statement is NOT false?


a. Project feedback analysis and project execution report sis done in pre completions analysis phase of the
projects.
b. Project feedback analysis and project execution report sis done in post completions analysis phase of the
organization.
c. Project execution report sis done in post completions analysis phase of the projects.
d. Project feedback analysis and project execution report sis done in post completions analysis phase of the
projects.

6. A detailed project management plan might be necessary to indicate every detail in __________.
a. second stage
b. final stage
c. initial stage
d. all stages

7. Communication and managing expectations effectively with ___________


a. clients, team members and stake holders
b. board of directors
c. stake holders
d. team members

10/JNU OLE
8. ____________ is achieved by systematically thinking about possible risk, their impact and ways of limiting
their likelihood and impact.
a. Features
b. Schedule
c. Risk management
d. Quality

9. _____________ deals with ensuring that the changes to the scope of project are decided and authorized with
due consideration of all the relevant aspects.
a. Resources
b. Processes control
c. Planning
d. Scope management

10. ____________ has the major importance in project management.


a. Planning
b. Project functions
c. Monitoring and control
d. Risk management

11/JNU OLE
Project Management

Chapter II
Project Planning and Processes

Aim
The aim of this chapter is to:

• enable the concept of project planning

• enlighten the objectives of project processes

• understands the need of planning in project management

Objectives
The objectives of this chapter are to:

• understand the project life cycle and its process flows

• highlight the fundamentals of managing the risk involved in the projects

• analyse the tools necessary to plan the resources

• understand the planning estimation

Learning outcome
At the end of this chapter, the students will be able to:

• understand the process of planning

• enlist the components of risk management

• discuss the purpose of estimation

12/JNU OLE
2.1 Introduction
• It is well known that all the organizations continue to grow year by year. As there is a need to grow, it becomes
necessary for growing organization to resort proper growth plans. The plan needs to be properly prepared.
• It is possible to prepare proper plans only if the manager has sufficient knowledge of various process of the
project envisage for growth. The manager has to work on various life cycle stages and apply necessary planning
tools to come out with a proper growth plan for the organization.

2.2 Project Life Cycle and Process Flows


The life cycle means the important phases that are required by any project from start to end of the project. There
are various stages in project life cycle such as:
• The preparation stage
• The project manger along with the associates and team members drafts the outline of the project.
• They identify various factors to be taken care of in the project. And based on this, they formulate the plans and
model the activities for execution.
• Once the budget is prepared, this model is approved and recommended for implementation.
• The role and responsibilities stage
• During this stage, role and responsibilities of various members are listed out who are involved in the particular
project.
• The team works on the feasibility reports to assess the project feasibility with respects to time, economic and
technicalities.
• The factors are based on the risk analysis and uncertainties.
• There are various monitoring tools that are set to monitor the project’s progress.
• The implementation stage
• This stage involves the execution of project as agreed, while carefully monitoring progress and managing
changes.
• The completion stage involves satisfactory delivery to the customer, products or services.
• This is followed by project review to look into various issues which affected the project during the courses of
its execution.

There are some of the key issues at the planning stage of a project that are documented such as:
• Key stages of project
• Project logic diagram
• Key stages responsibility chart
• Estimates for all key stages
• Optimized project Gantt chart
• Updated and reviewed project risk log
• Risk management forms for new high risks
• Projects operating budget

13/JNU OLE
Project Management

2.3 Characteristics

Any project may be considered to have the following characteristics:


Characteristics Description
• During the courses of executing the project, it is seen that the resource requirements increase
Resource from start to an intermediate stage of the project.
Requirement • It further increases at a rapid rate and becomes constant when the project is at its 80% to
95% progress stage.
• Thereafter the project requirement decreases to zero that is when the project comes to an
end.
Funds • The requirements of funds for the complete execution of the project also follow the same
trend as that of the resources.
• The two are more or less than the proportional
• The probability of completing the project can be estimated based upon the normal
distribution curve.
Probability of
Completion • In the initial stage of the project the probability of completing the project is low though
not zero. It gradually increases as the project approaches to an end and the probability of
completing the project tends to become 100%.
• The risk involved in the project affecting its completion time is high at the initial stage
Risk
and low at the later stage of the project.
• The project during the course of its progress may be subjected to changes because of some
external factors.
• The influence of such external factors on the project may result in changes in the design
Design Changes
of the project though not very often.
• It is observed that such changes if any are normally high during the initial stages of the
project and decreases as the project approaches its final stage.

Table 2.1 Project characteristics

2.4 Project Planning and Scoping


The purpose of project planning and scoping is to first identify the project work areas and forces affecting the project
and then to define boundaries of the project.

Also, the scoping has to be explicitly stated on the line of the project.

The Planning and scoping should be such that the project manager is able to assess every stage of the project and
also enabling the assessment of the quality of the deliverable of the project at every stage.

There are various steps of project scoping. The various characteristics of project scoping include the following:
• identify the various parametric forces relevant to the project and its stages
• enable the team members to work on tools to keep track of the stages and thereby proceed in the planned
manner
• avoiding areas of problems which may affect the progress of the project
• eliminating the factors responsible for including the problem
• analyzing the financial implications and cost factor at various stages of the project
• understanding and developing various designs required at various stage of the project
• the scope may include identification of key areas from clients through meetings, discussions and interview
• providing a base and track to enable alignment of project with the organization and its business objectives

14/JNU OLE
• finding out the dimensions applicable and not applicable to the project
• list out all limitation, boundary values and constraints in the project
• understand the assumptions made in defining the scope

2.5 The main project planning processes


2.5.1 The identification process - The main steps in the identification process of any projects are as follows:
• identify initial requirements
• validate them against the project objectives
• identify the criteria for assessing the success of both the end products and products used to create it
• identify framework of the solution
• prepare a template for the frame work of the solution to illustrate the project feasibility
• prepare relevant charts to demonstrate the techniques of executing the project and its different stages
• prepare a proper project schema for achieving the defined business requirements for the project
• identify training requirement
• make a list of training programs necessary for the personnel working on the project
• identify the training needs of the individual working in various functions responsible in the project
• prepare a training plan and a training calendar
• assess the capabilities and skills of all those identified as part of the project organization

2.5.2 The Review Process


• Based upon this assessment, establish a training plan to acquaint the project team members with the methodologies,
technologies and business area under study
• update the project schedule to incorporate scheduled training activities and identify the need to review the
project scope
• reviewing the project with respect to its stages and progress is necessary, for which the project manager has
to prepare a plan for the review and fix an agenda to review the project progress and keep the reports ready to
discuss about the performance
• review project scope, the objective statement, non conformances in the project stages and identify the need to
use the project plan
• prepare a proper project plan; the plan should indicate the entire requirement from beginning to end and also
at every stage of the project
• prepare a checklist of the items to be monitored and controlled during the course of the execution of the
project

2.5.3 The Analysis Process


• compare the actual details with that in the plan with respect to project stages
• measure various components of the project and its stages frequently
• control the project from deviating and also monitor the performance
• the effort and the defects are to be tracked for certain points on how the task; what tools to be used, what reporting
structure and frequency may be decided at various stages
• upon identification of any variance, whatever the steps are to be taken should be identical
• root cause analysis for all such problems encountered has to be done

15/JNU OLE
Project Management

2.6 Planning Tools and Estimation

2.6.1 Planning Tools


The tools which may be necessary for coordinating a project successfully are the following:
Project Organization
Process Skills and Activities
Initiation • Prepare an outline project justification, plan and project
budget
• Selection and briefing of the project team, assigning roles
and organization
• Feasibility study-risk and key success factors
Planning • Project definition and project plan
• Communicate to the team
Execution • Allocating and monitoring the work and cost
• Ensuring work and team cohesion
• Reporting progress
Control • Monitoring progress and managing changes
• Helping the team to solve project problems
Close • Satisfactory delivery
• Compiling lessons from project experiences

Table 2.2 Project Organization

16/JNU OLE
Project Structure
Development plan, project tracking and oversight

Fig. 2.1 Development Plan, Project Tracking and Oversight

Project Key Personnel


• identify those business areas that are within the scope or directly interface with the scope boundary and list
them in “Business Areas” column of the project assignment worksheet
• identify the key personnel for each area and list them in the “Person” column of the project assignment
worksheet

Project management team


The senior management team will be accountable for the project.
• identify project sponsor, client representative and technical representative
• stage managers – these are the one who plan and manage the project on a day-to day basic for this stage
• project coordinator – client coordinator and technical coordinator
• clearly define this coordination, control activities and identify the brief suitable personnel to carry them out

Key stakeholders
• identify management level personnel who are critical to the success of the project
• the stakeholders are responsible for the documents

Stage Teams
• identify appropriate personnel required for the stage, define the team structure and appoint team leaders
• document the time commitment and responsibilities to be performed by the team members

17/JNU OLE
Project Management

Key resources
• individuals assigned to a key resource role may work towards gathering “Business key resources” and “Technical
key resources”
• they are projected coordinators and team invitees

Work breakdown Structure (WBS)


The entire process of a project may be considered to be made of the number of sub process placed in different stage,
called the Work Breakdown Structure (WBS)

• This is the technique to analyze the content of work and cost by breaking it down into its components parts.
• Project key stages form the highest level of the WBS, which is then used to show the details at the lower levels
of the project.
• Each key stage comprises many tasks identified at the start of planning and later this list will have to be
validated.
• WBS is produced by identifying the key elements, breaking each element down into component part and
continuing to breakdown unit manageable work packages have been identified.
• These can then be allocated to the appropriate person.
• The WBS does not show dependencies other than a grouping under the key stages.
• It is not time based; there is no timescale for this.

Task Duration
Identifying lead and lag times helps in working out task duration.
• Lead Time:
‚‚ An amount of time with which a successor task can overlap with its predecessor task.
‚‚ It is the time before the completion of the predecessor at which the successor can start.
• Lag Time:
‚‚ An amount of time, between a predecessor and a successor task.
‚‚ It is the time after the completion of the predecessor when the start of the successor is delayed.

2.6.2 Planning Estimation


Purpose of Estimation
• define the project functional requirements
• not to have surprise on various front-efforts, schedule, cost and ultimately successes of the Endeavour
• reasonable estimates tend to become a self-fulfilling prophecy

Estimating tips
• base estimates made on some analytical, quantitative process than with a number pulled out of thin air
• Explain your estimating method to the stakeholders and compare it with what they want. They may not really
have an estimate; it may be a guess or goal
• if you can’t provide an accurate estimate because there are no written requirements, offer to provide a more
precise estimate after some initial exploration of the project scope and general user requirements
• present a range of estimate; best case, most likely cases and worst cases with the approximate probability of
meeting each one
• negotiate for a large team, fewer features, and phased delivery or reduced quality are the ways to achieve an
aggressively accelerated schedule
• redo your estimate with some different assumptions of the project size, resources or other factors to see how
you can come to the manager’s shorter goal
• make a counter offer in case your estimate does not meet your stakeholder expectation, showing them what
fraction of the system’s functionality could realistically be delivered in the expected time period

18/JNU OLE
2.7 Estimation Approaches and estimation tools

2.7.1 Estimation Approaches


There are two types of estimation approaches:
Bottom up approach

The bottom up approach consists of the following:


• Project manager first divides the product under development into major modules
• Each module is subdivided into smaller units
• Project manager defines a standard for manufacturing and self-testing as:
‚‚ identify modules in the system and classify them as simple, medium or complex
‚‚ as much as possible, use either the provided standard definitions or defining from past projects
‚‚ if a project specific baseline exists, get the average build effort for all type of programs from the baseline
‚‚ if a project specific baseline does not exist, use project type, technology, language and other attributes to
look for similar projects in process database
‚‚ if no similar project exists in the process database and no project specific baseline exists, refine the estimates
based on project specific factors

Top Down Approach


• The top down approach consist of the following:
• get the estimate of the total size of the products in function points.
• using the productivity data from the project specific capability baseline from the general process capability
baseline, or from similar project, fix the productivity level fro the project
• obtain the overall effort estimate from the productivity and size estimates
• use effort distribution data from the process capability baseline or similar project to estimate the effort for the
various phases
• refine the estimates taking project specification factors into consideration

2.7.2 Estimation Tools


• The various estimation tools that may be used in managing a project are:
• Algorithmic model-It consists of one or more algorithms that produce an effort estimate as a function of a
number of variable or cost drivers.
• Expert judgment- It relies on one or more people who are considered experts in some endeavor related to the
problem at hand.
• Analogy-Comparison of the proposed project to completed projects of a similar nature whose costs are known.
The organizations process database is a source for historical cost data.
• Top down-An overall cost estimate for the project is derived from global properties of the product. This
estimate will usually be based on the previous projects and will include the costs of all functions in a project
like integration, documentation, quality assurance and configuration management.
• Bottom up-Each component of the software product is separately estimated and the results are aggregated to
produce an estimate for the overall job.
• Automated estimation models-A number of computerized models are available which estimate cost and schedule
from user inputs of size and environment cost factors. Most of these are algorithmic models that use components
as the measure of size.

19/JNU OLE
Project Management

2.8 Risk Management


Risks are those events or conditions that may occur and whose occurrence has a harmful or negative impact on a
project. Risk management aims to identify the risk and then take actions to minimize their effects on the project.
Risk management entails additional cost. Hence risk management can be considered cost-effective only if the cost
of the risk management is considerably less than the cost incurred of the risk materializes.

2.8.1 Components
Important components in risk management are:

Risk Assessment
• Identify the possible risks and assess the consequences by means of checklists of possible risks, surveys meetings
and brainstorming and review of plans, processes and products.
• The project manager can also use the process database to get information about risks and risk management on
similar projects.

Risk Control
• Identify the actions needed to minimize the risk consequences. This is also known as risk mitigation.
• Develop a risk management plan.
• Focus on the highest prioritized risks. Prioritization requires analyzing the possible effects of the risk events in
case it actually occurs.
• This approach requires a quantitative assessment of the risk probability and the risk consequences.

Risk Ranking
• Rank the risk based on the probability and effects on the project. Example, a high probability, high impact item
will have higher rank than a risk item with a medium probability and high impact.
• Risk Mitigation-
• Select the top few risk items for mitigation and tracking.
• Refer to a list of commonly used risk mitigation steps for various risks from the previous risk logs maintained
by the project manager and select suitable risk mitigation steps.
• The risk mitigation step must be properly executed by incorporating them into the project schedule.

20/JNU OLE
Summary
• The life cycle means the important phases that are required by any project from start to end.
• There are altogether 3 stages such as the preparation stage, role and responsibilities stage and implementation
stage.
• There are some important key issues at the planning stage of a project such as key stage of the project, project
logic diagram, key stages responsibility chart, estimates for all key stages and so on.
• In any project there are some characteristics such as resource requirements, funds, probability of completion
and risk and design changes.
• The main purpose of project planning and scope is to identify the areas of the project work and identifying the
forces affecting the project and then to define the boundaries of the project.
• The main project planning processes consists of the identification process, the review process and the analysis
process.
• The tools for planning such as project organization, project structure, project key personnel, project management
team, key stakeholders, stage team, key resources, work breakdown structure and task duration.
• In task duration, there are two more sub categories such as lead time and lag time.
• For planning estimation there are two types such as purpose of estimation and estimating tips.
• In project management estimation, approaches and estimation tools are also available such as estimation
approaches and estimation tools.
• In estimation approaches, there are two types of estimation approaches such as bottom up approach and top
down approach.
• There are various estimation tools that are used in managing a project. These are algorithmic model, expert
judgment, analogy, top down, bottom up and automated estimation models.
• Risk management aims to identify the risks and then take action to minimize their effects on the project.
• Components of risk management are as follows: risk assessment, risk control, risk ranking and risk
mitigation.

References
• Chandra, P., 2006. Projects Planning, Analysis, Selection, Implementation and Review, 6th ed., Tata McGraw
Hill.
• Harold, K., 2003. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 8th ed.,
Wiley.

Recommended Reading
• Cleland, D.I. July 29, 2004, Field Guide to project management, Wiley Publication, 2nd ed.
• Meredith, J.R. and Samuel J. M., December 10, 2008, Project management: A Managerial approach, Wiley
publication, 7th ed.
• Kuehn, U., March 1, 2006, Integrated cost and schedule control project management, Management concept
publication.

21/JNU OLE
Project Management

Self Assessment
1. Which of the following sentences is NOT false?
a. All project is undertaken to deliver only services
b. Any project is undertaken to deliver either a service or a product
c. Any project is undertaken to deliver only products
d. Any project is undertaken to deliver only service and not products

2. Which of the following statements are NOT false?


a. The five characteristics of a project are planning, resources, objectives, risk and funds.
b. The five characteristics of a project are design, risks, objectives, probability and planning
c. The five characteristics of a project are resources requirement, funds, probability of completion, risk and
design changes
d. The five characteristics of a project are objectives, process flow, project life cycle, planning and stages

3. Which of the following statements are NOT true?


a. Avoiding areas of problems which may affect the progress of the project is the only factor to be considered
for scoping a project.
b. The purpose of project planning and scoping is to first identify the areas of the project work and identifying
the forces affecting the project and then to define the boundaries of the project
c. Avoiding areas of problems which may not the progress of the project is the only factor to be considered
for scoping a project
d. A problem which may affect the progress of the project is the only factors to be considered for scoping a
project are avoided

4. Which of the following statements is NOT false?


a. The analysis process is necessary to control the project from deviating and also monitor the performance
b. The project management is necessary to control the project from deviating and also monitor the
performance
c. The analysis process is necessary to control the project from risks and also process of the performance
d. The analysis process is necessary to control the project from risks and also monitor the performance

5. Which of the following statements is NOT false?


a. The estimation approaches are the logarithmic and sequential approaches
b. The risk approaches are the logarithmic and sequential approaches
c. The estimation approaches are the logarithmic and scientific approaches
d. The estimation approaches are only the logarithmic approaches

6. In the control process the progress is _____________ and the _________ are managed.
a. check, exchange
b. stopped, started
c. monitored, changed
d. changed , monitored

22/JNU OLE
7. The entire process of a project may be considered to be made up on number of sub process placed in different
stage called the __________.
a. planning estimations
b. project planning
c. work breakdown structure
d. task duration

8. ___________ is the amount of time, which a successor task can overlap with its predecessor’s task.
a. Lag tile
b. Lead time
c. Task duration
d. Top down approach

9. The project manager can also use the process ___________ to get information about risks and risk management
on similar project.
a. monitoring
b. controlling
c. changes
d. database

10. __________ requires analyzing the possible effects of the risk event in case it actually occurs.
a. Prioritization
b. Risk
c. Control
d. Risk assessment

23/JNU OLE
Project Management

Chapter III
Project Management Essentials

Aim
The aim of this chapter is to:

• explain the concept of project management

• elucidate the process groups

• introduce the concept of customisation

Objectives
The objectives of this chapter are to:

• introduce the concept of project monitoring and control

• elucidate the idea of process control

• enlist project management characteristics

• explain various process groups

Learning outcome
At the end of this chapter, the students will be able to:

• understand the characteristic of project management

• control project process

• understand various process groups

• understand post closure activities along with the way of reporting and documentation

24/JNU OLE
3.1 Introduction
Projects are of great importance to all types of organizations. They are the means by which organizations are able to
make major improvement in their performance. Projects are also the means by which new products are conceived,
developed and brought to market.

Any organizations working on a project have to adhere to some factors that are related to projects.

3.2 Characteristics of Project Mindset


Some of the characteristics of project mindset are as following:

Characteristics Description
It is possible to improve the pace of the project by reducing the time frame of the process.
Time
The mindset is normally to work a comfort mode by stretching the time limits.
It refers to quickness of response of an individual. The vibrancy and liveliness of an
Responsiveness individual or an organization are proportional to its capability of evolving processes and
structure for superior responsiveness time constant.
Information is a power. It is the master key to today’s business. Information sharing is
Information Sharing
the characteristic of today’s project mindset.
Project mindset lays emphasis on flexible processes. The major difference in a process and
Processes a system is in its capabilities of providing flexibility to different situational encounters.
Flexible processes possess greater capabilities of adaptability.
Structured planning based on project management life cycle enables one to easily and
Structure Planning conveniently work according to the plan. It also involves efficient use of project resources
and prioritization of the activities based on resources planning.

Table 3.1 Characteristics of project mindset

3.3 Process Groups


Process group consists of the following
• Initiating processes: recognition to start and establishing commitment
• Planning processes: devising and maintaining a workable scheme to accomplish the business need
• Executing processes: coordinating people to carry out plan
• Controlling processes: monitoring and measuring progress and taking remedial action
• Closing processes: formalizing acceptance and bringing project to an orderly end

3.3.1 Process Interactions


The individual processes are linked by inputs and outputs
Inputs: It refers to the client documents converted to action plans to be acted upon
Tools and Techniques: It refers to the mechanisms applied on to the inputs to create desired outputs
Outputs: It refers to the documents that are results of the process

3.3.2 Processes Interaction Initiating processes


Every process is initiated by management group decision which results in the next phase of the project.
• Planning processes
• Planning has the major importance
• Planning processes are highly interdependent
• If the cost is unacceptable, scope and time need to be redefined

25/JNU OLE
Project Management

Executing Processes
• Interaction depends on the nature of the work
• They are dynamic and dependent on team innovations

Controlling Processes
• Measuring project performance
• Identifying variances from the plan
• Updating project plans
• Taking corrective action

Closing Processes
• Review of the project
• Findings
• Analysis variances fro plan is a part of closing processes

3.4 Customization
• Large project may need details: A detailed project management plan might be necessary to indicate every detail
in the initial stages.
• Smaller project may need relatively less details: A detailed play may not be required in the initial stages.
• Process details might change for other reasons: Resources identification might be required for scope
definition.

3.5 Project Monitoring and Control


Any project aimed at delivering a product or a service has to go through phases in a planned manner in order to meet
the requirements. It is possible to work according to the project plan by careful monitoring of the project progress.
The various steps involved in monitoring and controlling a project from start to end are as follows:

Preliminary Work
• The team members understand the project plans, project stage schedule, progress control, tracking schedule,
summary of the stage cost and related worksheets.
• All the members have to understand the tolerances in any change and maintain a change control log.
• They must realize the need and importance of quality for which they have to follow strictly a quality review
schedule and frequently discuss on the quality agendas.
• They must understand the stage statue reports, stage and reports, stage end approval reports.

Project Progress
• The member must keep a track of the project progress and communicate the same to other related member of
the project.
• They must monitor and control project progress, through the use of regular check points, quality charts, and
statistical tables and control the quality factors which are likely to deviate from expected values as any deviation
may result in changes to the stage schedule.
• The project manger ensures that theses changes are made smooth and organizes review meeting with the project
management group.

26/JNU OLE
Stage Control
• The manger must establish a project check point cycle.
• For this suitable stage version control procedure mat be followed.
• The details are to be document stage wise.
• Project files have to be frequently updated with suitable version control number and revision status should be

Maintained for each change.


• Team members are identified who will exercise controls at various points of the project.

Resources
• Plan the resources required for various stage of the project.
• Brief both the project team and the key resources about the objectives of every stage, planned activities, products,
organization, metrics and project controls.

Quality control
‚‚ This is very important in any project.
‚‚ Quality control is possible if the project members follow the quality charts and norms very strictly.
• Schedule Quality Review
‚‚ It is recommended that the quality schedule at the beginning of the stage and also ending of every stage.
• Agenda for Quality Review
• Create and distribute a quality review agenda specifying the objective, products, logistics, role, responsibilities
and time frame.

Conduct Quality review


‚‚ The quality review is to be conducted in a structured and formal manner.
‚‚ Quality review should focus on product development and its quality factors.
‚‚ Focus on whether it meets the prescribed quality standard.
Follow UP
‚‚ Quality review complete products status revised from ‘In progresses to ‘QR Complete’.
‚‚ Follow up the actions planned in the strict manner which ensure conformity to the standards.
• Review Quality Control Procedures
• Verify that the quality objectives for each products re appropriates and that all participants are satisfied both
the process and its outcome.

3.6 Project Progress Control


• Monitor Performance: The team members log in details of actual start date, actual finish date, actual hours worked
per task, estimated hours to complete the task, elapsed time in hours to complete the task, any miscellaneous
cost incurred during a stage. These inputs become the base to monitor the performance of the project and its
stages.
• Updated Schedule: Update the schedule for actual start date for tasks started, actual finish date for tasks finished,
actual hours worked per task and latest estimated work in hours to complete the task.
‚‚ Update cost- Update the stage cost summary worksheet with actual costs incurred this period, estimate
remaining cost. Miscellaneous costs will be automatically updated from the schedule, since they are
calculated from actual work.
‚‚ Re-Plan Stage Schedule- Review the tracking Gantt and cost workbook and identify any deviation from
baseline. Establish why the deviation has occurred. Determine if the stage has exceeded the progress, cost
and quality tolerance levels agreed with the project management team.

27/JNU OLE
Project Management

‚‚ Conduct team status review- Conduct a status meeting with the project team. Items for discussion are
achievement this period planned activities that are incomplete or overdue, activities for the next period,
new issues identified this period, issue closed this period , summary of results of quality review, summary
of schedule and cost status, suggested revisions to the plan.
‚‚ Create Status Report- The status report provides a record of current achievement and immediate expectation
of the project. The status has to be effectively communicated to all interested parties.
‚‚ Create Flash Report- Summarizes the accomplishment for the month, schedule status, upcoming tasks for
the moth and any major issues. Distribute to the project team and project management team.
‚‚ Project Status Report- As discussed earlier, the status report provides a record of current achievement and
immediate expectations of the project.
• A weekly status report includes:
‚‚ accomplishments during the period
‚‚ items not completed during the period
‚‚ proposed activities for next period
‚‚ any predicate slippage to the stage schedule, along with cause and corrective action
‚‚ any predicted cost overrun along with cause and corrective action

3.6.1 Approvals
• Project stage reviews and the decisions taken and actions planned need to be approved by the top
management.
• The goals of such review are to improve quality by finding defects and to improve productivity by finding
defects in a cost effective manner.
• The group review process includes several stages like planning, preparation and overview a group review
meeting and rework recommendation and follow-up.

3.6.2 Change Control


Controlling the changes in the project is possible through a proper change management process and using necessary
tools for controlling the change.
Change control is necessary to control the increase of work at various stages of project and to mange effectively
the disruptions in the stages, if any.
These factors may affect the progress of the project, resulting in deviation from the stage schedule, project and
stage cost and project scope.

3.6.3 Changing Project Management Process


• The processes involved in brining about a change are the following:
• Request for a change- Identify need for a change based on which a formal request for either a member of a
project team or a client or a coordinator or key stakeholder to make change is to be made.
• Identify Alternate Solution- Evaluate the change request and identify several solutions. Assess the alternatives
with respects to the functional scope, schedule, efforts and cost.
• Decide on the Actions for the change- Present the change request, alternative solutions and recommendation to
the project management team. The project management team is required to accept recommendation, choose an
alternative solution, or request further investigation.
• Implement Change- Make appropriate schedule and other project plan adjustment to accommodate the change,
communicate these to be team member, monitor progress and execute quality control on the changes.

28/JNU OLE
3.6.4 Tools for changing a Process
There are various tools which can be used to bring about a change in a process. All such tools can be mainly classified
into the following two types:
• Changes Management System (CMS) – it is methodology which requires collection of all formal documented
procedure, defining how projects performance will be monitored and evaluated, how project plans could be
updated, how various measures can be implemented to control the change process. There procedures may be
unique to an organization based on their project needs. It also includes procedures to handle the changes that
may be approved without prior review, so that the evolution of the baseline can be documented.
• Configuration management(CM)- Identify the configuration items and define the naming and numbering scheme,
structure the changes, define a backup procedure, and follow the member for tracking the status of configuration
items. Identify and define the responsibility and authority of the Configuration management system.

3.6.5 Project Closure


Any project that is planned properly and executed as per the plan will also close successfully. For successful
completion of a project every aspects of the project should be monitored and controlled.

3.6.6 Completion of activities and benefits


• It implies that on the successful completion of a project, it has not drifted from its intended course and plans.
Otherwise it would have resulted in a change and may also kick start another project affecting the main
project.
• The project members are acknowledged for the completion of the project, motivating them to take up more
projects wherein the members would be able to confidently handle and take care of all the problems based upon
their learning form earlier project.
• It results in setting up of processes for continued development and improvement of the final product of any
project forthcoming.
• It results in setting up of improved standard process and estimating models for this type of future projects.
• It enables resources redeployment.

The deliverable at the end of each stage could be


• A s et of specified outputs for each stage of the project
• New products or modified existing products
• Items that may be less easy to distinguish like parameter setup data transfer, staff training and so on

3.6.7 Post Implementation Review


After every stage of a project is implemented, it may so happen that there could be a minor change or modification
which has to be reviewed. A review may be in the following form-
• Final product review: the product obtained after every stage must meet the requirements of that stage. If it
completely meets the staged objectives then focus on the issues of maintenance of the processes and products
performance. If the final product does not completely meet the objectives then identify the variations in the
products and analyze the variation.
• Outstanding project work review: Many times it is found that there may be some item of the project which is
still not in its stages finished form. It may be insignificant as it may be byproducts of that stage not required
immediately for the next stage. Then the items that are open should be resolved and necessary steps be taken
to close such open items.
• Project Review: Every aspect of a project from start to an end has to be reviewed. The objectives, performance
criteria, financial criteria, resource utilization, slips and gains of time, adhere to the project definition and plans
have to be reviewed. All such review details and reports have to be well documented for future use.
• Process review: Every process is important is any project. One may review the process to see if the any changes
can be made to improve its performance.

29/JNU OLE
Project Management

3.6.8 Tools for Post Implementation Review


There are various tools for post project implementation review that may ne considered for improving and developing
processes of the project. Reports are prepared on the same which becomes the basis for all future discussion. Some
of the tools that may be considered for post project implementation review are:
• Final product evaluation: This may be done through regularly organized meeting and quality reviews.
• Outstanding project work evaluation: All outstanding works of a project cab be reviewed to check its output
quality, its performance compared to planned and evaluate the same.
• Project review questionnaire may become important if the reviews are to be structured and group discussion
may be initiated depending upon the points to be discussed.
• Project Evaluation: Evaluation of any process is one of the key issues of project.

3.6.9 Final project reporting and documentation


After completion of a project stage and the project as a whole, it is documented. Reports are prepared to indicate
the details. The objective of the stage and the project and the corresponding plans should be reviewed and items that
are still open should then be closed or resolved. Some of the outcomes that need to be well documented are:
• Key stages o the project
• Project logic diagram
• Key stage responsibility chart
• Estimates for all key stages
• Optimized project Gantt chart
• Update and reviewed project risk log
• Risk management forms for new high risks
• Project operating budget

This serves as a baseline for future project reference.

30/JNU OLE
Summary
• Projects are undertaken at all levels of organization. They their duration ranges from week to more than five
years.
• Characteristics of project management are as follows time, responsiveness, information sharing, process and
structured planning.
• There are also processes groups that are available here such as initiating processes, planning processes, executing
processes, controlling processes and closing processes.
• In customization of the project there are three needs such as large project needs, smaller project needs and
changed processes needs.
• The entire project is to be monitored and controlled by the team members.
• There are various steps in monitoring and controlling projects such as preliminary work, project progress, stage
control, resources, quality control, schedule quality review, agenda quality review, conduct quality review, follow
up and review quality control procedures.
• In project process control there are two types such as monitor performance and update schedule.
• In project processes control there are following steps to be followed approvals, change control, changing project
management process, tools for changing a process, project closure, completion of the activities and benefits, post
implementation review, tools for post implementation review and final project reporting and documentation.

References
• Lock, D., 2007. Project Management Handbook, 9th ed., Ashgate.
• Choudhry, S., 1989. Project Management, 1st ed., Tata McGraw Hill.

Recommended Reading
• Haugan, G. T., October 1, 2001, Project Planning and Scheduling, Management Concept.
• Hobbs, P., February 2, 2009, Project Management, D K adult publication.
• Callahan, K. R. and Brooks, L. M., August 5, 2004, Essential of Strategic Project Management, Wiley
Publication.

31/JNU OLE
Project Management

Self Assessment
1. Which of the following statement is NOT false?
a. Responsiveness refers to response of an individual
b. Responsiveness refers to quickness of response of an individual
c. Responsiveness refers to late response of a group
d. Responsiveness refers to quickness of response of a group

2. Which of the following statements is NOT false?


a. It not possible to improve the pace of the project by reducing the time frame of the process
b. It not possible to improve the pace of the project by increasing the time frame of the process
c. It is possible to improve the pace of the project by reducing the time frame of the process
d. It not possible to improve the pace of the project by reducing the cost frame of the process

3. Which of the following statements are NOT false?


a. The individual process is linked only to the input
b. The individual process is linked only with output
c. The group process are linked by inputs and outputs
d. The individual process are linked by inputs and outputs

4. Which of the following statements are NOT true?


a. Output refers to the documented that are results of the process
b. Tools and techniques refer to mechanism applied on to the inputs to create desired outputs.
c. Input refers to the documented that are results of the process
d. Input refers to client documents converted to action plans to be acted upon

5. Which of the following statements are NOT true?


a. Identifying variances from the plan is a part of closing processes
b. Tools and techniques refer to mechanism applied on to the inputs to create desired outputs.
c. Input refers to client documents converted to action plans to be acted upon
d. Output refers to the documented that are results of the process

6. It is possible to work according to the project plan only by careful __________ of the project progress
a. controlling
b. monitoring
c. quality analysis
d. checking

7. During the _______ the members must keep a track of the project progress and communicate the same to other
related members of the project.
a. quality process
b. controlling
c. project progress
d. planning

32/JNU OLE
8. _________ is possible if the project members follow the quality charts and norms very strictly.
a. Objective
b. Quality control
c. Requirement
d. Project planning

9. The product obtained after every stage must meet the ________ of that stage.
a. requirement
b. objectives
c. specific
d. sensitivity

10. Project stage reviews and the decision taken and actions planned need to be approved by the top
____________.
a. Team leader
b. Project manager
c. Management
d. Director

33/JNU OLE
Project Management

Chapter IV
Concepts of Managing Conflict, Quality and Information System

Aim
The aim of this chapter is to:

• explain the concept of managing conflicts, quality and the Information System

• elucidate the concept of quality management

• analyse the project development process cycle

Objectives
The objectives of this chapter are to:

• elucidate the modern trends in projects managements

• explain project management information system

• elucidate communication requirement and capabilities

Learning outcome
At the end of this chapter, the students will be able to:

• discuss the project development process cycle

• understand the modern mantra of project management

• undesrstand the concept of conflict management

34/JNU OLE
4.1 Introduction
It is well known that in any management system there is always some conflict. It may be result out of individual or
groups having different opinions. The project gets affected by this conflict.

4.2 Concept of Managing Conflicts, Quality and the Information System


4.2.1 Conflict Management
It is possible to manage the conflicts in one of the following ways:
• avoid the issue
• approach the problem in such a way as to obtain the solution quickly
• discuss and share the problem
• any misunderstanding should be resolved by means of a discussion among project members
• work on a common solution technique that will lead to a win –win situation
• emphasize on collaboration

4.2.2 Communication Requirement and Capabilities


The communication requirement and capabilities are as follows:
• Communication Frequency- Project manager in development projects prefer to communicate on a weekly basis
using all three media. Their sponsor prefers bi-weekly verbal updates and written reports complemented by
personal meeting only at milestone achievement.
• Response Profiles- the respondents show interest mainly on the information available and the preference on
mode of communication at various levels.
• Barriers to communication- The barriers may be plenty. Suitable plan to avoid the barriers may be prepared.
• Behavior Pattern exhibited- executive often communicate decision with little or no knowledge of the implication
of their decisions for the company or the people who have to implement decision. They may sometime fail to
communicate effectively leading to communicating a different message.

4.2.3 Quality Management


Quality of any product or services is defined as its conformance to the standards or the stats requirements. Total
quality management represents the entities and their prerequisites for achieving world class quality.

Quality may be realized by-


‚‚ adopting a philosophy in line with objectives of the organization
‚‚ achieving effectiveness in the organizational performance and fulfilling or exceeding the community
expectations

Many others used the six Sigma concepts to increase the profits by eliminating variability, defects and waste that
undermine customer loyalty.

4.2.4 Project Management Information System


An information system is mainly aimed at providing the management at different levels with information related
to the system of the organization. It helps in decision making in arriving at optimum allocation of resources. The
information system is based on the database of the organization.

The four major aspects of a Project management Information System are –


• provide information to the major stakeholder that is the right information at the right time
• assist team members, stakeholders, managers with necessary information and summary of the information
shared to the higher level managers
• assist the managers in project staffing, proposed staffing changes and total allocation of resources analyses
• help organization learning by helping the numbers of the organization learns about project management

35/JNU OLE
Project Management

A good Project Management Information System is possible to be developed from the team members and not from
the system administrators of the company. Organizations tend to allocate such responsibility by among members
with a well designed and structured data entry and analytical format.

4.3 Modern Trends I Project Management

There are number of ways a manager can implement a project successfully.


As it is important to monitor and control the project activities throughout various stages, it becomes that much more
important to resort to effective and powerful tools to coordinate the activities.
A number of ways are possible to be considered to achieve good results in any projects.
Irrespective of which every way one wants to coordinate for effective outputs, essential processes are the meticulous
planning of all the activities, referring to checklist which could have been creatively designed, adopting quality
control measures, standards and so on.

4.4 Perception

The perception of a manger in current trends in project management is to obtain result. There are some tools that
are being used currently are as follows:

Continuous Business Process Improvement


It is a process through which a project team passes on the details of any system as recommendation for standardization.
It acts as a business process element for the company as a whole. Continuous Business Process Improvement is
a process through which a project on the details of any system as recommendation for standardization of future
project processes.

Forces field Analysis


Adopt suitable methods to identify external factors which may affect the project progress. The external factors are
hurdles in a project. Use of appropriate process would minimize and eliminate the hurdle resulting in a smooth
flow of activities and project process. The external forces could be related to customers, technology change, and
shift in trends and so on.

Information Risk management


There are several methods that can be adopted to reduce the risk in any project. A proper methodology is the one
which is based on the quality control aspects which may even be automated and integrated into the project process.
The risk arising out of corruption age, field size variation, format mismatch have to be controlled.

Management Assurance Measure


It is task performed by the projects leader to balance efforts to convince management against wavering with efforts
to prepare team members to counter any unexpected storms in the project. This is the greatest opportunity for a
leader to mature and go up the ladder as well as an equal opportunity for the member to emerge a leader through
accepting a challenge.

Quality Certification
Quality certification from a leading organization may be obtained. Certification will enable the management team
to realize importance of a process and how effectively project could be managed smoothly.
Strategic Inflection Point - A real test for the project leader and the management team is to accurately predict the
exact point of the development process where the team might face a massive problem.

4.4.1 Project Development Process Cycle


Every company would be interested to improve their performance over their previous performance in project. In
order to improve project performance, the company must assure quality and quality control at every stage of the
project throughout the project life cycle. The various steps which may be considered in the development of the
process cycle in nay project are listed below:

36/JNU OLE
Planning For Review
In this step the main focus is on collection of data. Data I the main input requirement of any successful project. Once
the data has been gathered prepare a suitable plan for its analysis. Obtain necessary commitment from management
and team members to participate actively and take actions on finding. It is necessary that every project member
gives his or her commitment to participate and deliver the service/products in the project. Review is necessary for
every stage of project.

Conducting the Review


Agenda has to come before review. The agenda should be well structured in terms of time and content. Make
necessary arrangements to gather inputs to the review. The review leader is the project manager. Incorporate points,
which are external to the projects. These external points have to be well structured to be reviewed. A reporter must
be designated to document key points of the meeting. An automated checklist must be formulated for the session.

Take Action on findings


During meeting, determine the points which are critical to the project and its performance. The member may have
brain storming session to discuss critical point. Make a list of all such items discussed and items suggested and
group the data into categories and then prioritize, either by group discussion or voting. Identify action items and
assign a project member or a team the task pertaining to the action planned.

Do Continuous improvement
Every organization wants to improve continuously. It is not possible to achieve improvement unless sufficient
measures are adapted to measure improvement. The quality managers should highlight trends and de-escalate chronic
problem. Reviews are a check process in the “Plan-Do-Check-Act” cycle of a quality cycle.

Critical Success factors


It is necessary that a company identifies critical factors in a project. These factors may slacken the project if not
focused. Routine task may be assigned to lower level team members as this may relieve the project team from
wasting their skill set on routine matters. Regarding project management skills the project office can help the project
manager in the project scope definition, project kick-off preparation and planning tasks, through mentoring and
coaching services.

Results and Benefits of the Project quality Reviews


The main benefits of the project quality review are the project status is formally visible to the whole organization.
The project quality review helps the project manager and his/her manager to enable the necessary adjustments and
taking the action needed to achieve the project goals finishing the project on time, scope and budget.

4.4.2 Macro Issues


4.4.2.1 Evolving Key Successes Factors Upfront
• In order to provide complete stability to fulfillment of goals, one needs to constantly evaluate form time to time,
the consideration of what will constitute the success of completing a project and assessing its success before
completion.
• The Key success Factor should be evolved based on a basic consensus documents.
• Key success Factor will also provide an input to effective exit strategy.
• Exit here does not mean exit from a project but from any of the drilled down elemental activities which may
prove to be hurdle rather than contributors.
• Broad level Key success Factor should be available at the conceptual stage and should be firmed up and detailed
out during the planning stage.
• The easiest way would be for the team to evaluate each step for chances of success on a scale of ten.
• Key success Factor should be available that is approved by the management such as project manager, before
execution and control stages.

37/JNU OLE
Project Management

• Key success Factor rides above normal consideration of time and cost- at the levels encompassing client
expectation and management perception, time and cost come onto play as subservient to these major goals.

4.4.2.2 Empowerment Title


Empowerment Title reflects the relative importance of members of the organization at three levels:
• Team members empowered to work within limits of their respective allocated responsibilities- the major change
from routine system is an expectation from these members to innovate and contribute to time and cost.
• Group leaders are empowered additionally to act independently towards client expectation and are also vested
with some limited financial powers.
• Managers are empowered further to act independently but to maintain a scientific balance among time, cost,
expectation and perception, apart from being a virtual advisor to the top management.

4.4.2.3 Partnering Decision Making


Partnering Decision Making is an alternate to monitor and control the project.
‚‚ It will be better if a senior person with a better decision making process will work closely with the project
managers as well as with the members to plan what best can be done to manage the project.
‚‚ The key resources here are the active participation of all the team members in decision making process.

The ownership is distributed among all irrespective of levels- the term equally should be avoided here since ownership
is not quantifiable.
‚‚ The right feeling of ownership is important.
‚‚ This step is most difficult since junior members have to respond and resist to being pushed through sheer
innovation and performance.

The Partnering Decision Making process is made scientific through:


‚‚ Earned vale management system
‚‚ Budgeted cost of work scheduled
‚‚ Budgeted cost of work performed
‚‚ Actual cost of work performance

4.4.2.4 Management by Exception


• In any organization “No news is Good news”. If a member wants help to locate a source and proposed to the
manager, only if such help is not accessible for free.
• Similarly, a member should believe that a team leaders silence is a sign of approval and should not provoke
comments through excessive seeking of opinions.
• The bend limit of Management by Exception can be evolved depending on the sensitivity of the nature and size
of the project.
• Management by Exception provides and facilitates better implementation of effectiveness of empowerment
titles.
• Management by Exception is more important since organizations are moving towards multi-skilled functioning
even at junior most level.

4.4.3 Knowledge Factor (K)


• Knowledge is considered to be the most powerful wheels of any progress.
• Knowledge Factor is an index of the extent to which one can manage today with yesterday knowledge content
and also the extent to which today’s knowledge will be used.
• This would be rendered the development process more productive.

38/JNU OLE
• The Knowledge Factor of course undergoes correction through obsolescence- since changes are now phenomenal-
but so are the opportunities for junior to access information from new knowledge bases seniority is no more
an automated scale for knowledge.
• It is important for leaders to recognize the knowledge potential of younger members.
• It is equally important for younger members not to suppress their knowledge potential from its application.
• Further as age and experience advance further wisdom gains but knowledge is lost until it is updated and
utilized.
• It is the task of every team members to maximize the Knowledge Factor to maximize the Knowledge Factor
in all direction.

4.5 The Modern Mantra of Project Management


The modern mantra of project management many are considered for five aspects;
• define
• measure
• analyze
• improve
• standardize

4.6 New Horizon in Project management


• There nine steps that are to be followed in New Horizon in Project Management such as:
• believing in discontinuity and not continuity with incremental improvement
• continuity or status quo is a function of quantum of changes. Here are incremental improvements are valid only
when the rate of change is not excessive
• modern domains and development process are highly dynamic
• project management today demands discontinuity and greater flexibility, with no hurdles to move into the future.
An open mind for unknown is the key
• members are not expected to be rattled by sweeping changes demanded by the dynamically changing
objectives

Owning the problem and sharing the solution


• Experience is gained through an open mine to own problems.
• Experience is not judged by the number of years of services but by the number and complexity of problem
owned and solved.
• The fixed mould mentality of passing the buck and expecting credit for discoveries is not appreciated any
more.

Breaking the status quo mentality


• This implies believing that future is not an extension of the present and therefore the need to tame the future.
• Excessive only focusing on the future may not be appreciated.
• A proper balance is a must.
• In most cases, a conflict between a present centric manager and future centric project leader can only be solved
by innovation predicative approach of a member. it is more often than not, the member who is more aware of
future bugs and client centric problems.

39/JNU OLE
Project Management

Stepping out of comfortable zone


• Momentarily, a member might feel more comfortable to stay in the comfort zone and refrain from risks.
• However, team member should remember that team leader has emerged by stepping out of the comfort zone.
• If the member decides to feel comfortable to step out of the comfort zone and be innovative and contribute then
this world amount to emergence of a future leader. Here promotions are not time bound.

Human capital by passing financial


• Human capital has left financial capital far behind.
• A member should therefore appreciates and maintain self realizations of his importance in the

Organization
• However, to sustain credibility, the member should remember that his or her value is not related to the level or
the salary but on the quantum of output, again not on the volume of coding but on the value of the work done
to product.
• Combining these two concepts of human capital and value the concept of return on the time invested has replaced
return on investment when it comes to valuation.

Transform work culture from % to & dimensions


• Conventionally we live among the five dimensions such as –X, YZ times and mind.
• Any organization should add passion and joy if they aim any substantial progress.
• It is important for a member to decide to do what the team member wants to do.
• The gap between wish and reality is narrowed and results improve. A project could well become a work of art.

Real number of encounter replacing number of years of experience


• The experience level is now judged by the number of encounters of major problem solved rather the number of
years, particularly in a typical situation of comparison between look alike.
• Experience is them counted as wisdom.
• The secret formula for a member is to build an inventory of encounters meaningful to their own dreams or
passion profile.

Seeking meaning out of change


• Change could be threat or an opportunity. If a change is resisted, it is essential for the entire team through extra
ordinary team effort and brain storming to weight consequences before drafting of a plan to match proposals
for changes.
• The key lies in extra ordinary inter personal skills and communication.

Detachment from the fruits of results


• Here to act within ones control and to get reaction or a reward is not within their purview. If an organization
pays too much attention on these factors, this would result in drop in production and future hinder personal
progress.
• The entire team members must first analyze and discuss among themselves and later the results must speak for
themselves.
• After all it’s their responsibility to build a second line and move up the ladder by themselves.
• Most organizations now encourage “presentation” by members as well as self assessment report.
• Management now tends to constantly watch between retention and attrition.

40/JNU OLE
Summary
• In an organization it is well known that in a particular management system there are some or the other conflicts
that are created with an organization.
• These conflict can be created either by a group of people or by an individual, and these conflicts can affect the
progress of project.
• Concept of managing conflicts, quality and the information system are follows: conflict management,
communication requirement and capabilities, quality management and project management information
system.
• The best way to manage a project and implement a project successfully is by controlling and monitoring the
project activities.
• There are some tools that are being used in perception such as continuous business process improvement, force
field analysis, information risk management, management assurance measure, quality certification and strategic
inflection point.
• There are various steps to be followed in project development process cycle such as planning for review,
conducting the review, take actions on findings, do continuous improvement, critical success factors and results
and benefits of project quality review.
• There are some factors that are considered is macro issues such evolving key success factors upfront, employment
title, partnering decision making, management by exception and knowledge factor.
• The modern mantra of project management consists of five aspects such as define, measure, analyze, improve
and standardize.
• There are nine steps in new horizon of project management such as believing is discontinuity and not continuity
with incremental improvement, owing the problem and sharing the solutions, breaking the status quo mentality,
stepping out of comfortable zone, human capital by passing financial, transform work culture from 5 to 7
dimensions, real number of encounters replacing number of years of experience, Seeking meaning out of change
and detachment from the fruits of results.

References
• Gray, C.F. and Larson, E.W., 2005. Project Management-The Managerial Process, 2nd ed., Tata Mcgraw-Hill
Publishing Co Ltd.
• Nicholas, J.M., 2004. Project Management For Business And Engineering, 2nd ed., Butterworth-Heinemann.

Recommended Reading
• Kerzner, H., March 23, 2009, Project Management: A system Approach to Planning, scheduling and controlling,
Wiley Publication, 10th ed.
• McDowell, J., October 12, 2000, Resolving conflicts, Thomas Nelson.
• Nicki S, Adams and John R. Kirchof, 1982, Conflict management for project managers, project management
institute; 1st ed.

41/JNU OLE
Project Management

Self Assessment
1. Which of the following sentences is NOT false?
a. It is not possible to manage the conflicts by discussing and sharing the problems
b. It is possible to manage the conflicts by discussing and sharing the problems
c. It is possible to manage the conflicts only by discussing
d. It is possible to manage the conflicts by sharing the problems

2. Which of the following statements are NOT true?


a. There are numbers of ways a manager can implement a project successfully
b. A good project management information system is possible to be developed from the team members and
not from the system administrators of the company
c. Build employees trust in the communications process so that hones feedback becomes a part of the natural
way of working is the only essential characteristic of a communication network
d. Providing information to the major stakeholder is the right information at the right time

3. Which of the following statement is NOT false?


a. Quality of any product or service is define as its conformance to the standards for the stated requirement
b. Quality of all product or service is define as its conformance to the standards for the stated requirement
c. Quality of all product is define as its conformance to the standards for the stated requirement
d. Quality of any product or service is defined as its conformance to the standards for the stated requirement

4. Which of the following statements are NOT false?


a. Continuity or status quo is a function of knowledge factor
b. Continuity or status quo is a function of planning
c. Continuity or status quo is a function of quantum of changes
d. Continuity or status quo is a function of project management

5. Which of the following statements are NOT false?


a. Modern domains and development process are highly Dynamic
b. Modern domains and development process are highly static
c. Modern domains and development process are highly essential
d. Modern domains and development process are not Dynamic

6. The perception of a manager in current trends in project management is to obtain ________.


a. planning
b. objectives
c. results
d. improvement

7. ______ is a process through which a project team passes on the details of any system as recommendation for
standardization.
a. Planning
b. Continuous business process improvement
c. Project management
d. Modern mantra

42/JNU OLE
8. Reviews are a check process in the ______ cycle of a quality cycle.
a. management assurance measure
b. process
c. development
d. quality

9. The team can find benefits for the project manager because it helps in terms of ___________ and
__________.
a. knowledge and control
b. monitoring and control
c. discipline and control
d. measure and analyze

10. ________ is the most powerful mover of the wheels of progress.


a. Control
b. Discipline
c. Measure
d. Knowledge

43/JNU OLE
Project Management

Chapter V
Project Performance through Project management Office and Human Resource

Aim
The aim of this chapter is to:

• explain the concept of project management office

• elucidate the concept of professional responsibility

• assess personnel productivity

Objectives
The objectives of this chapter are to:

• explain the concept of human resources management

• enlist the traits of successful teams

• explain the concept of performance improvement

Learning outcome
At the end of this chapter, the students will be able to:

• understand the basics of Project management office and HR

• understand the importance of team work and interpersonal behaviour

• discuss the guidelines for performance improvement

44/JNU OLE
5.1 Introduction
The concept of Project Management Office is gaining ground in Project Management because enterprises need to
optimize resources such as knowledge and people. Due to this economies are achieved and customer satisfaction is
gained, this result in more profits and repeat contracts.

5.1.1 Project Management Office


• A Project Management Office is a group or department within a business, agency or enterprise that defines and
maintains standards for project management within the organization.
• The primary goal of Project Management Office is to achieve benefits from standardizing and following project
management policies, process and methods.
• Most importantly, it is manager who direst, control and is responsible for the working of the office and its
members.
• The Project Management Office has two roles to carry such as it renders traditional project management considered
to be twofold and it functions as a governing committee for all projects throughout the organization.
• If there are many project running at the same time, it is advisable to appoint a project manager for each
project.
• In that case the Project Management Office will act as a coordinating body giving support to all of them in terms
of human resources, budgets, procurement of material, taking care of statutory and legal requirement.

5.2 Improvement of Performance


• It is very easy for project to go off course, because most of the activities are not repeated. As a governing
committee it has to make continuous review of performance of the project.
• The Project Management Office must create and maintain the ability of the project manager to keep focused on
the client’s requirements to meet them.
• There are tools for the performance of Project Management Office such as the following:

5.2.1 Reviews and their purpose


The reviews are generally divided into four types which are conducted at different stages of the project.
• Initiation Review
• Planning and proposal Reviews
• Procurement Reviews
• Quality Assurance Reviews

A project review is a process where we capture information from the team experience and see the variances and
deviations from plan. These reviews help in increasing productivity and improve organization success. The purpose
of the reviews can be stated in the following way:
• Finding out feasibility of the project and helping management teams to take a decision based on this initial
Review.
• Checking if all the necessary activities were done before presenting a customer the proposal or solution.
• Checking if all the formal agreements and procedure were formally accepted and reviewed between the customer
and the project delivery organization.
• Finding out the deviation and allowing elbow room for changes in the action plan for improvement.

45/JNU OLE
Project Management

5.3 Project Manager Teams


Just as higher teams act together and ask for what is best for the company, project manger Teams are formed for
various projects. They act as a group to ensure that all projects are completed. The qualities that should be considered
in a leader are as follows:
• Enthusiasm - Desire to so the job and willingness to put in that extra work.
• Higher tolerance for ambiguity - Under the conditions of chaos and disparate team members, clear cut authority
lines do not exit in a project environment situation exist where doubts about correctness of decisions will have
to be faced. Leader should take decisions, with a little uncertainty- because others also may not know. They
will be taking a risk, but that is why leader are there.
• High Coalition and team Building Skills - This concerns both the external and internal team members. Customers,
their representative, suppliers, inspectors and so on are from the outside who are interested in the progress of
the project. Building up relationships and balancing competing requirements is a necessary characteristic of a
project manager.
• Client/Customer Orientation - Customer expectation and problems are continually changing and the better
the project manager understands the problems of the customers, better he will be able to solve them. The final
measure of success of the project is satisfaction of the customers.
• Business Orientation - The Project Manager should understand the business of the organization they work for.
They should known the way things are looked at by the top management and align his thoughts and conduct, so
as not to be in confusion or conflict with them. They should have their sense tuned to grasp business opportunities
that crop up during the implementation.

5.4 Professional Responsibility


With increasing competition organizations have to finds new ways of customer retention and adopt innovative
measures to improve their customer base. Installing Development Methodologies and Quality system is the
responsibility of managers. Another area of professional Responsibility for managers is Reduction in Process Cycle
Time. A few examples of high cycle time activities are:
• Procurement time for outsourced software and hardware: the time to identify the requirements, the details
regarding them , verification and authorization- inputs from our company the start of the activities by the
vendors- lack of follow with the vendors – these should be avoided.
• Overall processing time- linked to sale commitment, financial cycle and progress imbalances;
• Order confirmation time – loose ends not being connected and important not being considered at the early
stages of process.

In addition to these a few more areas whereby managerial productivity is taken into reckoning are:
• creativity
• lateral thinking
• quality circles
• new product introduction lead time
• managing change
• implementing TQM
• empower of junior level executives

5.5 Human Resource Management


In the context of Project management, Human Resource Management has some special aspects to be considered. It is
considered for two different perspective of the project itself- operations Projects and Information system projects.
Some of the main features of the Operations Projects are:
• The inputs are physical
• Suppliers are many

46/JNU OLE
• Quality, testing, quality –measured at supplier/contractor’s place
• Different projects are spread far and wide
• Monitoring, control and audit have to be done continuously
• Materials are subject to damage, loss, pilferage – warehousing is a must
• Logistics is critical for the project
• We have more levels of employees
• We have more number of employees par unit value in the conventional project than in Information System
Projects
• Absenteeism, in most cases will have cascading effects on performance

5.6 Personnel Productivity


• Productivity at the junior level can be assumed and controlled only if all other supportive elements of business
are well balanced. Higher productivity cannot be expected if they are not motivated through:
• sufficient content of development activities – the work should be interesting and bring a sense of satisfaction
and achievement
• favorable working conditions – environmental conditions should make a person fell comfortable to stay at the
workplace
• planned activities – clear line of authority and recognition of performance
• adequate availability of resources - otherwise frustration sets in and commitment is lost
• properly planned system of quality through process control - if the process is not good, even the best efforts
will not be enough to get tolerable quality and the person doing it is made responsible
• adequate maintenance support for hardware and software - these ensure that no work gets held up on this
account – efficiencies bring in productivity
• As far as productivity as well as quality is concerned, especially, where projects are concerned, it is good to
follow Deming’s philosophy, which states – "create conditions for performance, do not use rhetoric, pay them
well and give the pride of working."

5.6.1 Assessment of personnel Productivity


• Unlike productivity on shop floor, personnel productivity can be considered on a collective basis. The following
can be used as guide lines to make assessments;
• time for development of a new product
• index of financial cycles
• time for finding and proving a solution to serious customer complaints
• time for development of a bigger market for an exiting products

It is better to avoid the following for assessment:


• Individual achievements or failures
• Individual outputs
• Reflection on Financial health
• Reflection on inventory

It is very important to remember that the first person to know if something has gone wrong is the person who
caused.

47/JNU OLE
Project Management

5.7 Team Work and Interpersonal Behavior


In a team the maxim that all members will do well to remember is “Learn to appreciate the problem of others, and
some others would appreciate yours”. It is therefore important that in a business environment, particularly in project
management, efforts to evolve solution jointly have great benefits, both for the teams as well as the organization.
• The top management has the responsibility of a encouraging such a culture to develop healthy inter-personal
behaviours. Inert-personal behaviour calls for: Projections of a pleasant, but firm personality

Inter-personal behaviour calls for:


• Clarity of expression and communication
• Patience in listening and reacting with empathy
• Documentation and correct recording
• Offer to help
• Call for help whenever necessary
• Seeking information before attempting decisions
• Not waiting for things to go wrong
• Motivation of others through efficiency and meticulousness, rather than urging and exhibiting dependency
• Putting team goals ahead of individual target

The project manager must make it a habit of expressing appreciation openly for any good work by his/her team
member.

5.8 Traits of Successful teams


Working in a team in an organization empowers employees to take maximum responsibility to make decisions,
which were once thought to be the right of managers. Decisions of the team represent the collective wisdom of its
members and as they are all bound by them, they try to make it better. The secret of team work advantage lies in
the following:
• clear understanding of the organizational goals, objectives and norms
• open communication among team members
• creation of balance among team members by having a high sense of ownership
• recognition of strengths and weaknesses of the members
• close-knit relationship for performance enhancement
• accepting the leadership qualities of one or two members and offering unconditional support for them
• encouragement of constructive evaluation of each member’s contribution with resolve problems
• willingness to accept difference of opinion, but capacity to make concessions with the team in mind
• taking initiative and giving it all to complete challenging jobs

Teams are not built in a day. Owing to circumstances and opportunities, management puts together a group of people,
whom they select and who can take up job or project and complete it.

48/JNU OLE
Summary
• Project management office is gaining its grounds in Project management because enterprises need to optimize
resources especially in knowledge and people.
• The project manager can be dependent on Project Management Office to provide them with information about
sub-contractors, equipments customers schedule or inspection.
• Tools that are necessary for improvement of performance are review and their purpose and environment and
strategy.
• There are certain qualities that should be consider for a good team leaders such as enthusiasm, high tolerance
for ambiguity, high coalition and team building skills, Client/customer orientation and business orientation.
• Areas where professional responsibilities for the managers are reduced are procurement time for outsourced
software and hardware, overall processing time and order confirmation time.
• Human resources management has some special place in the context of project management.
• The two areas where it is considered are in Operations Projects and Information System projects.

References
• Lewis, J.P., 2004. Project Planning, Scheduling And Control, 3rd ed., Tata Mcgraw-Hill Publishing Co Ltd
• Chandra, P., 2009. Project: Preparation, Appraisal, Budgeting and Implementation, 7th ed., Tata McGraw Hill
Education Private Limited.

Recommended Reading
• Hill, G. M., August 22, 2007, The Complete Project management office handbook, Auerbach Publications; 2nd
ed.
• Letavec, C. J., October 4, 2006, The project Management Office: Establishing, managing and growing the value
of a PMO, J. Ross Publishing.
• Lia Tjahjana, Paul Dwyer PMP and Habib, M. (September 28, 2009), The Project Management Office Advantage,
AMACOM publication.

49/JNU OLE
Project Management

Self Assessment
1. In case where there are many projects running, the Project management office will act as a ___________ giving
support to all of them in terms of Human resources, budgets, procurement of material.
a. team
b. coordinating body
c. board of directors
d. group of employees

2. _________ ____________ should be closely watched for the success of project.


a. Process and tool
b. Control and monitoring
c. Documentation and authorizations
d. Customers and clients

3. A _________ is a process where we capture information from the team experience and see the variance and
deviations from the plan.
a. review
b. system and office
c. team and leader
d. documentation and controlling

4. The final measure of success of the project is _____ of the _____________.


a. business, organization
b. documentation, authority
c. process, tool
d. satisfaction,customer

5. The project manager should understand the _________ of the _____ he works for.
a. diversity, complexity
b. business, organization
c. documentation, files
d. customers, clients

6. Unlike productivity on shop floor, personnel productivity can be considered on a ___________


a. complexity
b. review
c. collective basis
d. business

7. Which of the following statements is NOT false?


a. By their very artificial project are very orderly
b. By their very nature project tend to create chaos
c. By their very artificial planning are very orderly
d. By their very nature planning are very orderly

50/JNU OLE
8. Which of the following statements is NOT false?
a. During implementation there will be doubts about the correctness of planning
b. During implementation there will be no doubts about the correctness of planning
c. During implementation there will be doubts about the correctness of decision
d. During implementation there will be doubts about the correctness of project management

9. Which of the following statement is NOT false?


a. We have more number of employees per unit value in the conventional project than in IT projects
b. We have less number of employees per unit value in the conventional project than in IT projects
c. We have more number of employees per unit value in the conventional project than in analytic projects
d. We have less number of employees per unit value in the activist than in projects

10. Which of the following sentence is NOT false?


a. Team leader in organizations empowers employees to take maximum responsibility to make decision.
b. Work team in organizations empowers employees to take maximum responsibility to make decision
c. Work team in organizations empowers employees to take maximum responsibility to make planning
d. Work team in organizations empowers leaders to take minimum responsibility to make decision.

51/JNU OLE
Project Management

Chapter VI
Project Development and Modern Trends in Project Management Perception

Aim
The aim of this chapter is to:

• explain the concept of project development

• elucidate the modern trends in project management

• explain the basic project development process cycle

Objectives
The objectives of this chapter are to:

• enlist the steps in a project development

• discuss the recent revolutions in the project management

• explain the evolution of project management concept

Learning outcome
At the end of this chapter, the students will be able to:

• explain the basics of project development process cycle

• understand the steps involved in a project development

• discuss the trends in the IT project management process

52/JNU OLE
6.1 Introduction
Projects are basically conceived as a one time performance of a set of activities which results in their completion.
The project satisfies the need for something which will be useful for long time. Development of a project is the stage
at which original concept of the need takes a concrete shape as to what can be expected at the end of the project.

6.2 Project Development Process Cycle


The basic characteristics of a project are that it is set of non-repetitive activities which create a unique products or
service. The activities utilize a variety of sources. Systematic acquisition and deployment in a relatively short span
of time is the essential process of a project. The following are the stages in the development process:

Obtaining the specifications


This is culmination of the efforts of the marketing department in securing the contract. This one of the important
phase as the needs of the customers would be converted to proposals which should meet their requirement. Time
require for the project may undergo a change. Based on the final document, the specifications of all components of
the project will be made. When specifications are available, the project manager can precede future.

Creating a work breakdown structure


Once the specifications are completely ready, the project manger has the responsibility of showing the work elements
in a structure which show the sequence in which they are to be performed. So all the person responsible for activities
will have been identified and the sequence of operations will be settled.

Preparing a comprehensive PERT chart


The basis for this chart is the Critical Path. Because of technological necessities some activities can be performed
only after some others have completed their work. It is observed that different activities require different duration
for their completion. Some projects are big and a number of clearly distinguishable stages, called milestone are
identified. That means there are more paths form the beginning to the end and one of them takes more time than the
others. This is called as critical path.

Forming groups and teams


The next stage in the development of the project is to identify persons to undertake the various tasks which include
procurement of materials, maintaining equipments, stocking of spares and so on. Forming and developing teams
which contribute their best to the project, is a challenging task. Opportunities should be created for them to spend
time together outside working hours. The latest trends in Human resources are to find new ways to make employees
feels comfortable and important so that they stay and work better.

Forming a core group consisting of members chosen from as many teams as possible
They will be generally senior members in their teams. They will be sharing information about the progress and see
what activities can be hastened or retarded, what facilities cab be loaned, which person from a team can help another
in solving a problem. Coordination and cooperation result in solving problems- sooner.

Fixing the responsibility areas


This is a crucial stage in the development of project. Every person in the project team member and the members of
the core group will know what is expected of him. The core member of this team will be in communication with
the other teams as well as the project manager regarding the progress or any other additional resources the team
would need to keep to the schedule.

Preparing budgets, supplier contracts


At this stage the project manager knows what his teams can contribute to the project. They will prepare the budget
for what is going to buy for being utilized by the various team’s members for completing their jobs. Clauses about
inspection, transport, insurance and payment will have to be worked out in detail and accepted. Project overruns
are common and costly.

53/JNU OLE
Project Management

Setting up communication channels, feedback routes and monitoring mechanisms


The last step in the development process of a project is to establish a system of reporting and initiating of action
taken upon them. Monitoring and control become meaningful when timely actions are taken. With the availability
of intranet and internet, transfer of information has become very easy and authentic.
Many of these activities can be done at the same time and try to save lot of time. This information flows is of utmost
importance.

6.3 Modern Trends in Project Management Perception


Owing to competition and projects being undertaken on a global scale, projects are no longer constrained by volumes,
funds or even by materials. Principles of TQ, kaizen, and Lean Manufacturing are being applied by most companies
to derive leverage by eliminating waste. Some of the practices are given below:
• Continuous Business Process Improvement
‚‚ It is a process through which a project team passes on the details of any system or method improvement as
a recommendation is an efforts for continuous improvement.
‚‚ The improvement when practiced by many teams get verified and authenticated and become standard.
Continuous Business Process Improvement is entrusted to a smaller team within a team for initiating,
implementing, analyzing and distributing the process.
• Force Field Analysis
‚‚ All improvement programmers have compulsions-like competition, customer’s demands, technology changes,
economics, and government regulation.
‚‚ However, resistance also is seen because the organizational members fell threatened or unwilling to learn
and expose their weaknesses. Force Field theory enunciated by Kurt Lewin, states that the two sets of forces
are in opposite. So, to effect changes, managers must find ways of increase the forces of changes and reduce
the forces of resistance.
‚‚ They need to be done simultaneously. So there will be a movement towards change.
• Information Risk Management
• The information is constantly subjected to Scientific and analytic Processing. Many times automated systems
of quality control of key input data connected with the project help in reducing the risk of over-runs beyond
the control of the team.
‚‚ One of the major problem of with data undergoing a lot of processing is the corruption that may occur and
the consequent effect on the decision making process.
‚‚ The project manager should take the assistance of a system administrators and rum checks as frequently
as possible.
• SEI-CMM and ISO Certification
• The former is mostly for the software projects. The certification helps customer to have confidence to get a
project executed by a firm.
‚‚ The ability to handle complex software projects is certified at five levels- One two and three correspond to
companies which have started doing business, standardized their processes with repeatable performances
with high quality.
‚‚ The latter levels certify the company’s capability of high standard of maturity and optimization.
‚‚ This is necessary for software projects because there is not many ‘material’ or ‘completed products’ that can
be inspected and supervised or corrected during the course of development, manufacture or delivery.
‚‚ The latter of the two is concerned with integration. ISO9000 and ISO9000:2000 are certified standards
mostly for firms where the products have drawings, materials which are purchased processes which can
be seen, inspected, corrected and products which can be measures.

54/JNU OLE
6.4 Recent Revolutions in Project Management
The filed of project Management has undergone a sea change in recent years owing to, mainly the following
reasons:
• Information Technology
‚‚ Every project will have huge information inflows which have sorted classified, distributed, analyzed for
purpose of decision making and actions taken.
‚‚ Information Technology helps in the process at speeds which humans cannot hope to reach. This facilitates
the availability of information across the organization and even in the field because of intranet and internet
facilities which have become very common.
‚‚ Transactions are no line making reporting, feed-back and decisions become faster.
• Automation of Physical work
• Automation means elimination of human intervention in performing tasks. Sophisticated machines and special
Purpose machines have reduced human effort in workplaces.
‚‚ Movement of material is conducted by programmed material handling equipments like the automated
Guidance Vehicle system.
‚‚ It is possible to identify material because of the bar coding system.
• Workplace Flexibility
‚‚ With advance in transport and easier movements across countries, the whole world has become one huge
workplace.
‚‚ With globalization many firms have offices in many countries and projects are accepted worldwide.
‚‚ This flexibility has enable project managers to outsource material and people, for achieving better profits.
• Elimination of traditional jobs and work structure
‚‚ Organizations are getting flatter. Teams have become very important. They perform most of the functions
of management – like purchase, recruitment, training, accounts, and transport and so on.
‚‚ No doubt the corporate office keeps track of all activities.
‚‚ But the autonomy extended to them has resulted in faster decision making and many times cost effective.
‚‚ The knowledge and skill factors of various jobs have changed greatly.
‚‚ This has been practice of well-run and progressive organizations to have a great amount of autonomy to
their employees.
‚‚ Globalization of market, supplies and workforce
‚‚ Domination of knowledge Holders

55/JNU OLE
Project Management

Summary
• Project development is a process of finding out as to what are inputs required, who will do it, how much it cost
as how long it will take.
• In project development process cycle is a non-repetitive activity which creates a unique product.
• The following are the stages involved in development process obtaining the specification, creating a work
breakdown structure, preparing a comprehensive PERT chart, forming group and terms, forming a core group
consisting of members chosen from as many teams as possible, fixing the responsibility area, preparing budget,
supplier contracts and setting up communication channels, feed back routes and monitoring.
• Modern trends in project management perception states that as competitions and project are undertaken by
global scale, projects are no longer constrained by volumes, funds or even by materials.
• There are programmers that are written for various situations as project flows.
• There are practices that are followed in Modern Trends in project management perceptions are continuous
business process improvement, force filed analysis, information risk management and SEI-CMM and ISO
certification.
• There are some recent revolution in project management such as information technology, automation of physical
work, elimination of traditional jobs and work structures, globalization of market, supplies and workforce, and
domination of knowledge.

References
• Meredith, J. and Mantel, S.J.Jr., 2008. Project Management- A Managerial Approach, 7th ed., John Wiley and
Sons.
• Marglin, S., Dasgupta, P. and Sen, P., 1992. Guidelines for Project Evaluation, 2nd ed., UNIDO.

Recommended Reading
• Wysocki, R. K., December 18, 2006, Effective Project Management, Wiley; 4 ed.
• Williams, M., March 13, 2008, The Principles of Project Management, Site Point Publication
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for Business, Engineering and
Technology, Butterworth-Heinemann Publication, 3rd edition
• Portny, S. E., May 3, 2010, Project Management for Dummies, Kindle Publication, 3rd ed.

56/JNU OLE
Self Assessment
1. __________ enunciated by Kurt Lewin, states that the two sets of forces are in opposition.
a. Force Filed Theory
b. Force theory
c. Modern trends in project management perception
d. Project development

2. Which of the following sentence is NOT false?


a. The project satisfies the need for something which will be useful for short time
b. The project satisfies the need for something which will be useful for long time
c. The project satisfies the need for something which will be useful on permanent bases
d. The project satisfies the need for something which will be useful on temporary bases

3. There are many good projects which have been floundered on accounts of _________.
a. project development
b. project overrun
c. project under run
d. project development process cycle

4. The project manager should take the assistance of a _____________ and run checks as frequently as possible.
a. project manager
b. team leader
c. system administrator
d. director

5. Principles _________, _____________ and ___________ are being applied by most companies to derive
leverage by eliminating waste.
a. progress, development and information
b. information technology, automation of physical work and work place flexibility.
c. Kaizen, lean Manufacturing and TQM
d. project overrun, project under run and project development process.

6. Which of the following statements are NOT true?


a. Having given autonomy to teams the management need not keep track of their activities.
b. Having given autonomy to teams the management need’s to keep track of their activities.
c. Having given autonomy to teams the management need not keep track of their funds.
d. Having given autonomy to teams the management need not keep track of their progress.

7. The information is constantly subjected to __________ and ____________.


a. force field theory and information technology
b. information technology and automation on physical work
c. scientific and analytic processing
d. workplace flexibility and information technology

57/JNU OLE
Project Management

8. With advance in transport and easier movement across countries, the whole world has become
_____________.
a. huge workplace
b. project management
c. huge organization
d. small workplace

9. Transactions are on line making ________,___________ and ________ become faster.


a. force, filed, fund theory
b. system administration and project development
c. reporting, feed back and decisions
d. progress, development and information

10. The basic characteristic of a project is that it is set of ___________ activities which create a unique product.
a. technology
b. project development
c. organization
d. workplace

58/JNU OLE
Chapter VII
Organizational Issues in Project Management

Aim
The aim of this chapter is to:

• explain the concept of organizational change

• highlight the objectives of project management

• elucidate the concept of traits of the professional manager

Objectives
The objectives of this chapter are to:

• explain the meaning of organizational changes

• bring out an organizational change in the project management scenario

• explain the concept of project management

Learning outcome
At the end of this chapter, the students will be able to:

• understand the basic of organizational changes

• learn how a professional manager can implement change

• analyse the latest development in the process of organizational change relevant to project management

59/JNU OLE
Project Management

7.1 Introduction
Project by their nature are not amenable to any streamlined operations. Various activities across all functions are
undertaken by a number of people. The project manager and his team committed to any one project will have to
depend upon the various functionaries in the administrative functions like Human Resources, Finance, Purchase
and legal at various points of time to coordinate their activities.

7.2 Organizational Change


• Organizational will have structure, hierarchies, functions, communication patterns, decision centre and most
important cultures, which define them and make them unique.
• There are mainly two changes to contend with first the evolutionary change which is gradual, incremental and
with a narrow focus on one or few processes.
• These changes take place as the organization evolves and in an effort to ward off some impending problems,
they are implemented.
• The second occurs as a result of drastic structural change, a new technology, a new thrust for a huge increase
in capacity, a new business acquisition, and implementation of a new strategy.

7.2.1 Evolutionary change


The following are a few cases of evolutionary change:
• Socio-Technical changes
Socio-technical changes take place as the organization evolves over time.
‚‚ The managers need to optimize both the technical and social systems for promoting effectiveness.
‚‚ They adjust both the systems gradually so that group norms and cohesiveness are not disrupted.
‚‚ This also helps in avoiding group-level resistance to change.
‚‚ However, changes in the way tasks are performed do change perception among workers about their own
groups which might have been disrupted owing to technical requirements.
• Total quality management
• Total management is an ongoing effort among members across functions to find new ways to improve quality
in products and services.
• This change process, through incremental requirement both workmen and managers to adopt new ways to
viewing their roles in the organization.
• Flexible workers and flexible work teams
‚‚ Flexible workers and flexible work teams – each worker can substitute another worker and can change his
team depending upon the exigency.
‚‚ This means all workers are trained for multiple tasking.
‚‚ This change has been found to promote quality because of the absence of boredom, which may cause loss
of quality.
‚‚ Thus, a flexible work team becomes a group of workers who assume responsibility for performing all the
operations necessary for a particular portion of the project.

7.2.2 Revolutionary Change


The following are a few cases of Revolutionary Change
• Reengineering
‚‚ This is a process by which managers redesign a bundle to task into roles and functions so that organizational
effectiveness is achieved.
‚‚ By doing so, dramatic improvements in critical measures of performance like cost, quality and service are
expected.
‚‚ There will be radical rethinking about the business processes adopted.

60/JNU OLE
‚‚ The following rules for reengineering are effective:
‚‚ Make changes with the outcome in mind – not tasks that results in them
‚‚ Make the users of the results of process effective to the change
‚‚ Let the people on the spot decide on the solution - decentralize
• E-Engineering
‚‚ The term E-Engineering refers to the attempts of companies to make use of all kinds of information system,
to increase the efficiency of the functions.
‚‚ New information systems are installed for conducting all business processes in the organization.
‚‚ The use of electronic communication within the organization enables frequent interactions between employees
and results in better communication.
‚‚ The increase in efficiency makes the organization to meet customers’ requirements faster.
‚‚ It helps in creating and making available high quality of information. The information system using intranet
and internet solutions to carry on their regular activities on line.
• Restructuring
‚‚ This is attempted with change in authority and task relationships of managers.
‚‚ The move from the functional form or a standard division structure, to combine or divide areas of control
and authority to facilitate better coordination and/or workflow can be restructuring.
‚‚ In the process, a few jobs may not be there. A few people may have multi-functional activities.
‚‚ This is because a change in strategy is considered. Downsizing is a way of restructuring.
• Innovation:
‚‚ It is the successful use of skills and resources in such a way that their response to customer’s needs to be
effective.
‚‚ Changes in technology have made computers cheaper, faster and more users friendly.
‚‚ Every company needs to adopt new methods, find them, to make them relevant in the changing world.
‚‚ The thrust in every department/function should be to do things better with new methods.

The project manager may have to initiate the change process to increase the effectiveness of their team. Being a key
person in the organization, his actions are always under scrutiny.

7.3 Traits Of professional manager


The following traits enable a manager to be effective in his functioning. Capable with these it will be easy to be
effective. The top management will look for these in a person who they want to employ for project management.
Leadership
• These managers lead by exhibiting the characteristics of leadership.
• They know what they should do, known why they are doing it, known how to do it and have the courage and
will to do it.
• They have the power of taking along with them others.

People Relationships
• Any leader without followers cannot be successful.
• They have excellent human relationship skills.
• The manager builds up his teams based on the core values of sincerity objectivity and dedication.
• They ensure that his subordinates get opportunities for growth based on performance.
• He makes them a part of the decision making process, thus ensuring cooperation and commitment during
implementation.
• Integrity

61/JNU OLE
Project Management

• Highest levels of trust, fairness and honesty are expected while dealing with people both within an outside the
organization.
• This includes the customers, shareholder, dealers, employee, the government and society at large.
• They ensure that functioning is clean.

Quality
• The quality philosophy should not cover only the product quality, but every process that has gone into
making it.
• Economy of words when instructions are given, acknowledging complaisance, arriving on time, remembering the
promises and above all a keen eye for details and patience to make others know what they want are components
of quality.

Customer orientation
It is now recognized that every organization has two sets of customers. Internal customers are people in the
organization –employee’s directors, team members – any person who needs your services, whose needs of demand’s
you satisfy.
• External customers –clients and all members of society we come in contact in connection with our business.
• They need our solutions for their problems.

Innovation and creativity


• Professional managers think beyond the obvious.
• They exhibit a keenness to go behind a problem and attempt to find the root cause of the problem.
• They will draw from their experience from diverse fields, seek further information and consider all possible
alternatives and come out with some new and unique solution.
• This happens when they have open minds.

Performance management
• The professional managers not only ensure that his performance is at peal all times, but motivates their entire
to do it.
• This comes by appreciation and encouragement.
• If there is any shortfall they arrange for training them so that their performance improves.
• Thus the team member known that they are expected to perform, that they get help to do so and their effort is
recognized.
• This is the simple path of performance management.

The following seven step model will be useful:


• Objectives/performance standards are set-
• To mange any criterion, it is necessary to measure the factors that were responsible for ‘what is.
• The quality of the input, their quantity and their intended usage
• Then measure of the utilization, the processes used, their suitability and the difficulties faced in utilization and
how they were resolved then the outcomes are as they were expected.
• These are communicated to the employees-
‚‚ This procedure ensures that they known what is expected of them and help them to adjust their activities
in such a way as to meet them.
‚‚ This enables them to seek help, consult their colleagues or bosses, learn-so that they will meet the
expectations.
‚‚ It is possible that some objectives cannot be met at all.

62/JNU OLE
• Review/monitor the above
• Review help in resetting goals when they cannot be achieved for various reasons such as shortage of resources,
time and so on.
‚‚ By monitoring the shortfalls can be made up with the allocation of extra resources, or even diverting the
operation.
• Check actual performance verses standards set-
‚‚ This is known as the evaluation phase. Comparison on every detail is made.
‚‚ Differences are recorded. Particular areas are chosen for improvement.
• Identify gaps
‚‚ Gaps mean the shortfall in performance standards. The immediate supervisor is also involved.
‚‚ The extent to which they affected the functions of the job itself are identified.
• Jointly decide on corrective actions, if needed
‚‚ There is a possibility that the performance has exceeded the set standards.
‚‚ But if performance is not good and the reasons and extent having been identified, the course of action for
effecting corrections are decided. Giving extra responsibilities, training, relocation is considered.
• Reset objectives for next period
‚‚ The targets are revised either upward or downward depending on the conclusion of the appraisal process.

Identification with the organization


A sense of pride and belonging goes with the “ownership” of the job, the project, the team members and
organization.
• This is brought about by the culture and communication system in an organization.
• If we focus on the increasing competition and ever changing strategies to develop business orientation.
• Here the managers should be aware of the company’s plan, products and policies.
• An obvious corollary to this is that the organization’s communication policy too should be conducive to such
information sharing.

Empowering employees
• The professional manager should possess the ability to empower his employees down the line.
• They are many mangers who are not ready to delegate their authority to subordinates and end up only delegating
responsibility.
• Empowerment is a process by which employees are encouraged to take decisions pertaining to their area of
work.
• The professional manager practices empowerment and encourages employees to grow and develop in their
positions.

Coping with changes


• It is often said- ‘the only constant in this world is change’.
• A professional manager has the ability and capability to cope with change.
• To implement change successfully, it is essential that employees are involved in the implementation of
change.
• Further the positive and negative consequences of change need to be discussed and understood before
implementation.
• Thus professional manager has the attitude to accept changes as a way of life and takes it in his stride.

63/JNU OLE
Project Management

7.4 Bringing about Organizational Change in the Project Management Scenario


• A project is managed by the project manager being completely in charge of all matters connected with it.
• Incase of organizations, where multiple projects are handled, restructuring is almost a continuous.
• The reason is that resource availability in terms of people and their skills will be changing.
• With smoothing, any persons will have to be shifted for short period.
• Every project is unique. Resources vary, customer demands are different.

64/JNU OLE
Summary
• The project manager and his core team have the responsibility for the project and support services will have to
cater to a number of them.
• The project manager has complete project and administrative authority over their team.
• There are two organizational changes that are evolutionary change and revolutionary change
• In evolutionary change are changes that take place as organization evolves and in an effort to ward off some
impending problems that are implemented.
• In revolutionary change occur as a result o f drastic structural changes, a new technology, a new thrust for huge
increase in capacity and new business acquisition.
• There are four important instruments such as reengineering, E-engineering, restructuring and innovation.
• There are few traits for professional managers such as leadership, people relationship, integrity, quality, customer
orientation, innovation and creativity and performance management.
• There are some steps to be performed by the manager such as objective performance standards are set, these
are communicated to the employees, review/monitor the above, check actual performance verses standards set,
identify gaps, jointly decide on corrective action, if needed and reset objectives.

References
• Boar, B.H., 1985. Application Prototyping: A Project Management Perspective, Amacom Books.
• Matto, P.K., 1978. Project Formulation in Developing Countries, South Asian Books.

Recommended Reading
• Hiatt, J. and Creasey, T., September 2003, Change Management, Prosci Research publisher.
• Baca, C., 2005, Project Manager’s Spotlight on Change Management, Jossey Baso.
• Obenq, E., August 1996, All Change: Project Manager’s Secret Handbook, Financial Times Management.

65/JNU OLE
Project Management

Self Assessment
1. Organizations will have __________, _____________, _____________ and most importantly culture- which
defines them and make them unique.
a. structure, hierarchies, functions
b. objectives, structure , communication
c. outcome communication, inputs
d. problems, objectives, communication

2. Make changes with the _______ in mind and not the ________ that results in them.
a. objectives and functions
b. outcome, tasks
c. organization and problem solving
d. objectives, outcome

3. A work culture is very conductive for _______ which is the aim of all creativity.
a. outcome
b. objective
c. organizations
d. problem solving

4. To implement changes successfully, it is __________ that employees are involved in the implementation of
changes.
a. objectives
b. outcome
c. risk
d. essential

5. The professional manager should possess the ability to _________ his employees down the line.
a. solve problems
b. risks
c. empower
d. identification

6. Which of the following statement is NOT true?


a. Project manager do not delegate authority to their subordinates
b. They end up by delegating responsibility
c. Project manager do not delegate authority, they delegate responsibility
d. Project manager do delegate authority, they delegate responsibility

7. Which of the following sentence are NOT false?


a. Opportunities for creativity are many in projects
b. There are no creativity in projects
c. There no opportunities in projects
d. There are no creativity and opportunities in project

66/JNU OLE
8. Which of the following statements is NOT true?
a. When multiple projects are handled restructuring is quite often
b. When multiple projects are handled restructuring is done frequently.
c. When multiple project are handle restructuring is rare
d. When single project is handle restructuring is rare

9. Which of the following statement is NOT false?


a. A professional manager has the ability and capacity to cope with changes
b. A professional manager does not has the ability and capacity to cope with changes
c. A manager has the ability and capacity to cope with changes
d. A professional manager has the ability and capacity to cope with changes

10. Empowerment is the process by which _________ are encouraged to take decisions pertaining to their area
work.
a. team leader
b. project manager
c. director
d. employees

67/JNU OLE
Project Management

Chapter VIII
Project Risk Management

Aim
The aim of this chapter is to:

• explain the concept of project risk management

• elucidate the student about the objectives of risk management

• explain risk analysis

Objectives
The objectives of this chapter are to:

• learn how to mitigate risk

• analyze the risk and steps necessary to manage the risks

• understand risk management planning

Learning outcome
At the end of this chapter, the students will be able to:

• understand the concept of risk analysis

• discuss review risks

• understand risk management process

68/JNU OLE
8.1 Introduction
In any project, it is difficult to assess the quantum of risk involved. Therefore careful planning will results in
minimizing the risk in a project. The formulation of a project is based on the estimate of the past data available with
the project management team. There will b a lots of uncertainties and surprises in a project during its execution. It
is necessary to analyze and estimate the project in all respects in order to enable the manager take proper decision
on the project.

8.2 Planning for Project Surprises-coping with Risk


Risk management is similar to performing preventive health care and buying insurance for your project. It involves
identifying potential problems, analyzing those risks planning to manage them, and reviewing them.

Risk management is insurance for project, and can help reduce your costs and efforts when troubles strikes.

There are different types of risks involved in a project; these are:


• Project risks: It is the risk arising out of a change in the scope of the project, changes in the work quantities, and
changes in the resources requirements, estimation error or unexpected developments in a project.
• Market Risks: It is the risk arising out of a change in any of the following marketing parameters – price change,
change in market regulation, economic changes, competition and competitors products and so on.
• Industry risk: It is the arising out of a change in scientific instruments used in business activity, changes in
companies’ policies because of changes in the industry.
• Social and political risk: It arises out of changes in labor situation, labor laws and environment law.

8.2.1 When to Perform Risk management


The risk process, describe below, should be performed at the beginning of a project, at the beginning of the major
phases in a project and when there are significant changes.

There are four steps to manage a risk:


Risk Identification
• It is necessary to identify risk, we must define risk.
• Risks are potential problems, ones that are not guaranteed to occur.
• During identifying risk, you might notice some known problems.
• This is carried out by a brainstorming session; it will take about 15 to 30 minutes.
• During this process do invite the whole project team, customer, people who have been on similar projects
and experts in the subject area of the project. There are certain items to be considered during the brainstorm
session:
‚‚ Selection of weak areas in a project, such as unknown technology being used or to be used.
‚‚ Things, that is critical or extremely important to the effort, such as the timely delivery of a vendor’s database
software, creation of translators, or a user interface that meets customer’s needs.
‚‚ Things that are caused problems in the past, such as loss of key staff, missed deadline, or error-prone
software.

Risk analysis
• The first step in risk analysis is to make each risk item more specific.
• The next step is to set priorities and determine where to focus risk mitigation efforts. Some of the identified
risks and unlikely to occurs, and other might not be serious enough to work about.
• During the analysis, discuss with the team members, each risk to understand how devastating it would be if it
did occur, and how likely it is occur.
• It is usual practice to analyze risk either by sensitivity analysis or by probabilistic analysis.

69/JNU OLE
Project Management

• In sensitivity analysis a study is done to analyze the changes in the variable values because of a change in one
or more of the decision criteria.
• In the probability analysis the frequency of a particular event occurring is determine, based on which it average
weighted average value is calculated.

8.3 Risk Management Planning


• There are two things one can do to manage risk.
• Firstly, take action to reduce the like hood of the risk occurring.
• Some project that work process improvement make their deadlines earlier and increases their efforts to minimize
the like hood of team members being pulled off the project due to changing organizational priorities.
• The second step, we can take action to reduce prior to the crisis, such as the creation of a simulator to use for
testing if the hardware is late.
• At other time, it is simple backup plan, such as running a night shift to share hardware.

8.4 Risk Management Process


• Determine scope of the risk session. Select the team and moderator. The moderator explains the risk process
to new team members.
• Things which are critical are extremely important to the effort.
• Current problem should be treated as problems and not as risks. Stakeholders may adopt various stratifies to
prevent the risk but risks are unavoidable.
• There is a contingency plan that has been to prepare to handle the risks. The main steps to handle risks are:

Identify risks - For each risk item;


• Does the team understand the risk item? If necessary, split into separate risk items
• What would the consequences be if risk item did happened
• Determine what the impact would be if the worst happened, using a scale of the one to ten
• Determine how likely it is that risk item will occur, using a scale of one to ten
• Determine the priority of the risk items and thus which to work on

Analyze the risks- Use any of the available methods to analyze the risk. Software may be used for the purpose of
analysis.

Plan to mitigate risks


• Selects the most important risks issues, such as the top 2 or 3, or up to 20%.
• Brainstorm on actions that could be taken to reduce the like hood of the risk item occurring.
• Brainstorm on actions that could be taken to reduce the impact if the risk item does occur.
• Decide which actions to purse. Select a person to be responsible for each action chosen. Documents the
information in the risks management plan.
• Review risk- Establish how often risks should be reviewed. Risk reviews can be incorporated into existing
project status and phase review. Update the list based on the risk review sessions.

Control the risk-


• If refers to controlling the deviations in a project which may be one of the reasons to induce a risk element in
the project.
• Controlling the risk ensures that the project is likely to be completed as per the plan and heading towards the
goals set for the project.
• It is preferable to work in a structured mode to handle risks in a project.

70/JNU OLE
8.5 Overview of Risk Management
• There is mutual benefit for corporate and major information systems projects teams and many of the programs
as a result of the information exchange generated by the project management reviews.
• Corporate and major information systems are reviewed from their inception to retirement, i.e. throughout Capital
Planning and investment control phases of identification, selection, control and Evaluate.
• Performance measurements are used in project management and quality processes to determine and communicate
status and accomplishments measured against specific objectives, schedules and milestone.
• There are two things one can do to manage risk. The first is to take action to reduce the like hood of the risk
occurring. Secondly, we can take action to reduce the impact if the risk does occur.

71/JNU OLE
Project Management

Summary
• It is observed that if a team plans everything carefully than there will be lees numbers of risks.
• The risk analysis of a project is used for the financial appraisal of the project.
• Risk management is similar to performing preventive health care and buying insurance for your project.
• When risk management techniques are used, you can prevent problems and anticipates other to make the project
run smoothly.
• There are different types of risks in a project such as project risks, market risks, industry risk and social and
political risks.
• There are altogether 4 steps to manage a risk such as risk identification, risk analysis, risk management planning
and risk review.
• Risk identification can be done using a brainstorm session.
• In risk analysis the first thing to do id to make each risk item more specific and the set is to set priorities and
determine where to focus risk mitigation efforts.

References
• Kendrick, P., 2009. Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your
Project, 2nd ed., AMACOM.
• Barkley, B., 2004. Project Risk Management, 1st ed., McGraw-Hill Professional.

Recommended Reading
• Cooper, D. F., Grey, S., Raymond, G. and Walker, P., Dec 20, 2004, Project Risk Management Guideline:
Managing Risk in Large Project and Complex Procurement, Wiley Publication, 1st ed.
• Royer, P. S. Oct 25, 2001, Project Risk Management: A Proactive Approach, management concept
publication.
• A Guide to The Project Management Body of Knowledge, November 2004, Project management institute; 3rd
ed.

72/JNU OLE
Self Assessment
1. There will be a lot of __________ ____________ in a project during its execution.
a. uncertainties and Surprises
b. risks and problems
c. planning and objectives
d. identification and overviews

2. The first step in risk analysis is to make each risk item more ________.
a. objectives
b. planning
c. specific
d. problems

3. In ___________ a study is done to analyze the change in the variable values because of a change in one or more
of the decision criteria.
a. risk analysis
b. sensitivity analysis
c. planning
d. specific

4. In the __________, the frequency of a particular event occurring is determined, based on which it average
weighted average value is calculated.
a. sensitivity analysis
b. risk management
c. probability analysis
d. planning

5. Risk identification can be done using a ___________ session.


a. risk management
b. planning
c. sensitivity analysis
d. brainstorming

6. Which of the following sentence is NOT false?


a. Risk Management is insurance for projects, and can help reduce your costs and efforts when trouble
strikes
b. Risk Management is insurance for problems, and can help reduce your costs and efforts when trouble
strikes
c. Risk Management is insurance for projects, and can help increase your costs and efforts when trouble
strikes
d. Risk Management is insurance for projects, and can help reduce your efforts and increase your cost

7. Which of these sentences is NOT true?


a. Industry risk arises out of changes in labor situation, labor laws and environment law.
b. Social and potential risk arises out of changes in labor situation, labor laws and environment law
c. Market risk- it arises out of change in price, market regulation and economic
d. Industry risk arises out of change the risk out of change in scientific instruments

73/JNU OLE
Project Management

8. Which of the following sentence is NOT false?


a. When risk management techniques are used, people can prevent problems and risks to make the project
run smoothly
b. When risk management techniques are used, people can prevent problems and anticipate other to make the
project run smoothly
c. When risk management techniques are used, people can prevent risks to make the project run smoothly
d. When risk management techniques are used, people can not prevent problems and risks to make the project
run smoothly

9. In ____________ the first step is to take action to reduce the likelihood of the risk occurring.
a. review risks
b. risk analysis
c. risk planning
d. risk management planning

10. ___________ involves identifying problems, analyzing those risks, planning to manage them, and reviewing
them.
a. Risk analysis
b. Risk planning
c. Risk management
d. Specific

74/JNU OLE
Case Study I
Project planning and process of Millau Viaduct

The purpose of project planning is to first identify the project work areas and forces affecting the project and then
to define boundaries of the project.

Introduction
On December 17, 2004, the Millau viaduct, constructed over the Tarn Valley in the southern region of France, was
inaugurated by the French President Jacques Chirac (Chirac).

Planning Process
The construction of the viaduct was to be handled by several Eiffage subsidiaries including Eiffage Construction
(in charge of the construction of the piers, the abutments and the toll facility), Eiffel Company (Eiffel) (to construct
the steel deck and pylons), Forclum (to handle all the electrical works, and Appia Research (Appia) (responsible
for the development and application of the coating for the deck).

Construction Process
Millau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The construction
of the bridge was planned in such a manner as to minimize the environmental impact. By using steel in place of
concrete for most of the construction, the project employed fewer machines and trucks. The production manager
had handed the construction process very well.

Evaluation and Completion of the Project


Eiffage engaged the services of two environment specialists who guided them through the planning as well as
execution stages of the project to ensure the environment friendliness of the project.

Questions
1. What is the purpose of planning of project?
Answer
‚‚ The purpose of project planning is to first identify the project work areas and forces affecting the project
and then to define boundaries of the project.

2. What are the stages in project planning of Millau viaduct?


Answer
‚‚ There are 4 stages involved in this project. They are as follows:
-- Planning stage
-- Construction stage
-- Evaluation
-- Completion

3. How was the construction stage carried out by the production manager?
Answer
‚‚ Millau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The
construction of the bridge was planned in a manner such that the environmental impact is minimal. By using
steel in place of concrete for most of the construction, the project employed fewer machines and trucks.
The production manager had handed the construction process very well.

75/JNU OLE
Project Management

4. What was the aim of the project? How was the aim of the project achieved after its completion?
Answer
‚‚ The aim of the project was to achieve environment friendliness.
‚‚ Eiffage engaged the services of two environment specialists who guided them through the planning as well
as execution stages of the project to ensure the environment friendliness of the project

76/JNU OLE
Case Study II
FORD PRODUCTION SYSTEM - RISK MANAGEMENT

Introduction
Ford has established several innovative automobile manufacturing techniques from its beginning. In the mid 1990s,
Ford modernized its manufacturing operations in its efforts to induce more flexibility and enhance the efficiency of
its automobile production systems. The restructuring effort was known as Ford Production System (FPS).Ford was
established by Henry Ford on June 16, 1903, with an initial investment of $100,000.

Ford Production System


In January 1995, Ford employed a company-wide re-engineering initiative called Ford 2000. One of the major
objectives of Ford 2000 program was to develop and implement a new manufacturing system called the Ford
Production System (FPS). According to Ford's website, “the vision of FPS is a lean, flexible and disciplined common
production system. It is defined by a set of principles and processes that employs groups of capable and empowered
people, learning and working safely together in the production and delivery of products that consistently exceeded
customers' expectations in quality, cost and time. Their main aim was to identify risk and implement risk management
program.”

Risk Occurrence
The Project manager was aware that it is difficult to assess the quantum of risk involved. It required careful planning
to minimize the risk in a project. Thus, he formulated the past data with the project management team and tried
to search if there are any risks involved in the project. He found that project risk will occur in terms of quantity
required and the output achieved.

Risk Management
The project manager formulated the following steps to reduce the risk.
• First step is to take action to reduce the like hood of the risk occurring.
• Second, to take action to reduce the impact if the risk does occur.

Questions
1. How was the risk identified by the project manager of Ford?
2. Which type of risk occurred in this case?
3. Was the risk managed appropriately by the manager?
4. If you are in place of manager, how will you identify the risk and how will you control the risk in a project?

77/JNU OLE
Project Management

Case Study III


Rajendra Kulkarni is a manager in V.P. manufacturing and operations of a medium sized pharmaceutical company.
Rajendra has a Ph. D in Chemistry but has not been directly involved in Research and New product development for
twenty years. Through experience and practice he runs the operations well. The company does not have a problem
of turnover, but it is obvious to Rajendra and other key management personnel that the temporary workers are not
working anywhere near their full potential. Rajendra is very upset with the situation because with rising costs the
only way that the company can continue to prosper is to increase the productivity of its workers.
Rajendra decides to implement performance management program to increase the productivity of the
organization.

Thus, he carries out the performance management in following ways:


• Objectives of the organization
• Theses objectives should be communicated to employees
• To achieve objective, production target should be set with the help of employees
• Review should be done to calculate performance
• Check achieved target with the standard target set
• Maintain records
• Change targets if required for the next project

With the implementation of this performance management plan, there was huge improvement in the overall
productivity of the organization.

Questions
1. What is Performance management?
2. How was the performance management planned by Rajendra?
3. If you are in place of Rajendra, how will you plan for performance management?

78/JNU OLE
Bibliography

• Meri Williams( March 13, 2008), The Principles of Project Management, Site Point Publication
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for business, engineering and
technology, Butterworth-Heinemann Publication, 3rd edition.
• Stanley E. Portny ( May 3, 2010), Project management for dummies, Kindle Publication, erd edition.
• David I. Cleland( July 29, 2004), Field Guide to project management, Wiley Publication, 2nd edition.
• Jack R. Meredith and Samuel J. Mantel( December 10, 2008), Project management: A Managerial approach,
Wiley publication, 7th edition.
• Ursula Kuehn( March 1, 2006), Integrated cost and schedule control project management, Management concept
publication.
• Gregory T. Haugan (October 1, 2001), Project Planning and Scheduling, Management Concept.
• Peter Hobbs(February 2, 2009), Project Management, D K adult publication.
• Kevin R. Callahan and Lynn M. Brooks( August 5, 2004), Essentials of Strategic Project management, Wiley
Publication.
• Harold Kerzner(March 23, 2009), Project Management: A system Approach to Planning, scheduling and
controlling, Wiley Publication, 10th edition.
• Josh McDowell( October 12, 2000), Resolving Conflicts, Thomas nelson.
• Nicki S, Adams and John R. Kirchof(1982), Conflict Management for Project Managers, Project Management
institute; 1st edition
• Gerard M. Hill (August 22, 2007), The Complete Project management office handbook, Auerbach Publications;
2 edition, page 3 to 132.
• Craig J. Letavec (October 4, 2006), The project Management Office: Establishing, managing and growing the
value of a PMO, J. Ross Publishing.
• Lia Tjahjana, Paul Dwyer PMP and Mohsin Habib(September 28, 2009), The Project Management Office
Advantage, AMACOM publication.
• Robert K. Wysocki(December 18, 2006), Effective Project Management, Wiley; 4 edition.
• Meri Williams( March 13, 2008), The Principles of Project Management, Site Point Publication.
• John M. Nicholas and Herman Steyn(February 20, 2008), Project Management for Business, Engineering and
Technology, Butterworth-Heinemann Publication, 3rd edition.
• Stanley E. Portny ( May 3, 2010), Project management for dummies, Kindle Publication, 3rd edition.
• Jeffrey Hiatt and Timothy Creasey( September 2003), Change Management, Prosci Research publisher.
• Claudia Baca(April 9, 2005), Project Manager’s Spotlight on Change Management, Jossey Baso.
• Eddie Obenq(August 1996), All Change: Project Manager’s Secret Handbook, Financial Times Management.
• Dale F. Cooper, Stephen Grey, Geoffrey Raymond, and Phil Walker (Dec 20, 2004), project Risk management
Guideline: Managing Risk in large Project and Complex Procurement, Wiley Publication, 1st Edition.
• Paul S. Royer (Oct 25, 2001), Project Risk Management: A Proactive Approach, management concept
publication.
• A Guide to the Project Management Body of Knowledge ( November 2004), Project management institute;3rd
edition, page 237-264.

79/JNU OLE
Project Management

Self Assessment Answers


Chapter I
1. c
2. a
3. b
4. a
5. d
6. c
7. a
8. c
9. d
10. a

Chapter II
1. b
2. c
3. c
4. a
5. a
6. c
7. c
8. b
9. d
10. a

Chapter III
1. b
2. c
3. d
4. c
5. a
6. b
7. c
8. b
9. a
10. c

Chapter IV
1. b
2. c
3. a
4. b
5. a
6. c
7. b
8. a
9. c
10. d

80/JNU OLE
Chapter V
1. b
2. c
3. a
4. d
5. b
6. c
7. b
8. c
9. a
10. b

Chapter VI
1. a
2. b
3. b
4. c
5. c
6. a
7. c
8. a
9. c
10. b

Chapter VII
1. a
2. b
3. d
4. d
5. c
6. c
7. a
8. c
9. b
10. d

Chapter VIII
1. a
2. c
3. b
4. c
5. b
6. a
7. a
8. b
9. d
10. c

81/JNU OLE

You might also like