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HRM 517
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milestones within the required time, leading to increased costs. Also, some conflicts encompass a
significant cost to resolve. Thus, it requires managers that can identify sources of conflicts early
and resolve them before they become precarious. Some of the skills necessary for conflict
resolution include assertiveness, problem-solving, mediation, communication, and facilitation
(Layton et a., 2020). They understand different strategies that can be used to reduce conflicts
depending on the context. Conflict resolution helps to implement a project effectively.
Leadership skills are important in handling projects. A leader requires effective resource
management skills that affect efficiency. For instance, some managers exhibit better strategic
planning knowledge that can help manage the available resources to achieve the project's goals.
They have a set of leadership skills necessary to visualize and plan all the resources. Thus,
effective leadership skills are important in project resourcing as they determine the efficiency
and effectiveness of the project.
Budgeting
There are five different of determining project budgeting. They include cost aggregation,
reverse analysis, expert judgment, historical relationships, and funding limit reconciliation. Cost
aggregation involves summing the cost of each individual work package in the work breakdown
structure and rolling the estimates up to high levels of the project. The budgeting processes use
the work breakdown structure consisting of main project deliverables, control accounts, project
sub-deliverables, and work packages (Kloppenborg et al., 2019). The summation begins from the
work package level to the sub-deliverable level and finally at the deliverable level. The bottom-
up estimates are used as the entire project cost. The individual cost estimates of a task in the
work package can be estimated using the three main methods of cost estimation such as
parametric, bottom-up, and analogous.
Cash flow estimates provide solid grounds for establishing the economic viability of the
projects. There are discounted and non-discounted cash flow estimation methods. The net present
method is very effective in cash flow estimation. It involves the differences between the present
value of cash inflows and the present cash outflows (Kengatharan, 2018). Notably, it considers
the time value of money to ensure the project pays off in the long term.
Identifying Project Risks
Foremost, a project manager utilizes interviews on different stakeholders. For instance,
interviews with the employees can help determine risks that can sabotage the project's progress.
The manager has to set a list of questions to present concerning the project (Kloppenborg et al.,
2019). It can identify risks associated with unethical behaviors of the workers, work unrests, and
others that have potential harm of the project. It is an effective way of identifying potential
problems as the stakeholders are effectively involved in the project.
Assumption analysis is very effective method of highlighting substantial risks. The
project is usually based on assumptions, which are defined as factors considered to be true or
certain without any underlying empirical proof or demonstration. The have inherent risks, and
the managers can conduct further research and analysis on the analysis to establish any risk. For
instance, the risk can emanate from time allocated for a specific work package can turn out to be
false leading to further expensed and prolonged time of execution.
A cause and effect diagram is a simple and accurate method of identifying risks for the
project. They visual tool logically organizes the possible causes to a specific problem and
suggest the cause relationship. As a result, it is possible to pinpoint areas contributing to a
problem.
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References
Kengatharan, L. (2018). Capital Budgeting Theory and Practice: A review and agenda for future
research. American Journal of economics and business management, 1(1), 20-53.
Kloppenborg, T., Anantatmula, V. & Wells, K. (2019). Contemporary Project Management.
Cengage Learning.
Layton, M. C., Ostermiller, S. J., & Kynaston, D. J. (2020). Agile project management for
dummies. John Wiley & Sons.
Pellerin, R., & Perrier, N. (2019). A review of methods, techniques and tools for project planning
and control. International Journal of Production Research, 57(7), 2160-2178.
A project running out of time and budget can be solved by using the following steps. Foremost, I
will identify the source of the problem as the beginning point. Second, I will determine the status
of the project. On the budget, it is imperative to consider the actual cost up the current state of
the project and the estimate-to complete. It will provide the focal point to control the budget. On
time issue, is rational to identify time management on each deliverable. Third, I would adjust the
key areas that require changes. Finally, implementing the changes to control the project overrun.
One of the risk I can encounter when implementing the changes is resistance from different
stakeholders (Kloppenborg et al., 2019). Another risk would be limited resources to implement
the recommended changes.
References
Kloppenborg, T., Anantatmula, V. & Wells, K. (2019). Contemporary Project Management.
Cengage Learning.