MARKETING AND STRATEGY

REFERENCES/SOURCES OF THE CONTENT:

Singh, S. (2008, December 1). Strategic Management [PowerPoint Slides]. SlideShare
Functional Strategies (slideshare.net)
Preveros, P. (2018, August 31). Marketing for Engineers. Engineering Customer Satisfaction.
Lucid Manager
Marketing for Engineers: Engineering Customer Satisfaction (lucidmanager.org)
What is Business Level Strategy? Types, Factors, Examples – AVADA Commerce
Corporate Strategy - CIO Wiki (cio-wiki.org)
When asking people to mention a word that they associate with marketing, they will most
certainly mention advertising or selling. The scope of the marketing team in an engineering
project is often limited to promoting and selling the product or service that the engineers create.
The reach of marketing is, however, broader than communicating with potential and existing
customers.
Just like any other social concept, marketing can mean different things. Blogger Heidi Cohen
has collected 72 marketing definitions from professional and academic sources. The more
often a word is used in these definitions, the larger the text. This diagram thus shows that
marketing is about products and services and customers. The cloud shows that advertising is
only a small part of marketing.

Word
cloud of 72
definitions
of
marketing.

These definitions position marketing as a process to sell products and services to customers.
Engineering is, however, often about more than selling stuff. Many disciplines of engineering
seek to improve society overall.

➢ Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large. American Marketing Association (2013).

➢ This definition consists of three major parts:

1. A process
2. that has value
3. for beneficiaries.
1. THE MARKETING PROCESS

➢ What Is Marketing Mix?

• A set of actions that businesses and marketers use to help promote

their brand, or to sell a product or service they offer.

• A tool to structure marketing activities that helps managers considers all

relevant aspects of their project.

4P’s OF MARKETING MIX

Product

• Product
(creating)
• Promotion
4P's of
(communicating)
Promotion Marketing Place
Mix • Place
(distribution)
• Price (exchange)

Price

• PRODUCT
The product is the most obvious aspect of marketing for engineers. Designing and
creating new products and services is the core job of an engineer. Although technology is
important, marketing helps engineers to create better products.
Marketing helps engineers to create products that meet the needs of customers.
Engineering focuses on the technical aspects of a product such as a car or a computer.
Marketing tries to understand how customers extract value from these objects.
The first law of consumer behaviour is that customers buy stuff for what it means
to them, not what it does. Consequently, this law implies that creating new products not
only requires knowledge of engineering; it also requires engineers to understand
psychology.
• PLACE
The place component of the marketing mix can cover a range of things, such as a
retail place such as a shop or a place of service, such as a barber shop. The place component
also relates to the distribution of products from manufacturing to the customer. Supply
chain logistics is a common problem for engineers who design facilities to ship products
and services around the world or create infrastructure to manage e-commerce. The place
component is therefore a common problem for engineers to solve.

• PROMOTION
Advertising is the most visible aspects of marketing, which is the reason the two
are often seen as synonymous. The need to promote a product in a competitive market is
fairly obvious. Almost certainly, without advertising and other forms of promotion, any
product will languish in obscurity.

The promotion dimension of the marketing mix includes all communication with
the beneficiaries of the project, whether they are customers or the community overall. In
public engineering projects, the promotion dimension includes engaging the community
that will benefit from the engineering works.

Building infrastructure is a highly specialized task, and engineers can become so

focused on the inherent complexity of their job that they forget to consider the people that
are impacted by the project. Community engagement is a crucial aspect of any public
engineering works that will require marketing skills.

• PRICE
Determining the price of a project is a common task for engineers. Many engineers
spend a lot of time estimating the cost of a future project or controlling the costs of works
in progress. Engineering price estimates use technical considerations, such as the cost of
materials and labour and external services.
When a marketer determines the price of a product or service, they don't only look
at internal aspects, but also how much the customer is willing to pay. Setting the price
of a market offering requires knowledge of psychology.
In technical, commercial projects, the technical craft of the cost estimator and
the psychological knowledge of the marketer to determine the best possible price.
 2. DEFINING VALUE

From an economic perspective, value is the difference between costs and benefits.
Traditional models of economics limit this equation to monetary value. In contrast, the
marketing perspective includes aspects beyond financial costs and benefits.

The benefits of a product are first that which the product does for the customer. A car
has the obvious benefit of moving people and things from A to B. The service benefit is about
the ease of using the product, after-sales support and so on. Lastly, the personal benefit relates
to how the product makes people feel about owning or using it.

The cost equation of a product or service is not only the monetary cost of purchase and
operation, but also time and psychological energy. The time cost that a consumer incurs relates
to the level of convenience they get. The energy cost relates to possible frustrations because of
badly designed products.

From this model it follows that engineers can maximize customer value of a product
they create by minimizing the cost the consumer and by increasing the benefits.

The Balance of Customer Value

Total Customer Total Customer

Benefit Cost

Product Monetary
Customer
Value Time
Service

Personal Energy

The benefits of a product are first The cost equation of a product or

that which the product does for the
customer. A car has the obvious benefit of
moving people and things from A to B.
The service benefit is about the ease of
using the product, after-sales support and
so on. Lastly, the personal benefit relates
to how the product makes people feel
about owning or using it.
service is not only the monetary cost of
purchase and operation, but also time and
psychological energy. The time cost that a
consumer incurs relates to the level of
convenience they get. The energy cost
relates to possible frustrations because of
badly designed products.
 3. BENEFICIARIES

Marketing is traditionally only about customers and commercial relationships between

buyers and sellers. Contemporary views of marketing are more inclusive and relate to every
relationship where one party provides benefits to another. These new theories are certainly
more useful to describe the contemporary complexities of commercial relationships.

The addition of society overall as beneficiary of marketing makes a lot of sense for
engineers. Engineering is a method to improve the world in which we live; either through
commercial products or public engineering. Whichever way, the purpose of good engineering
is to add value to society overall.

Finally, marketing and engineering are perfect partners. Engineers that understand the
principles of marketing are therefore able to maximize the value they provide to their
customers, clients, partners, and society at large.

- A plan or course of action or set of decision rules making a pattern or creating a

common thread.
- The pattern or common thread related to the organization’s activities which are
derived from the policies, objectives and goals.
- Related to pursuing those activities which move an organization from its current
position to the desired future state.
- Concerned with the resources necessary for implementing a plan or following a course
of action.
- Connected to the strategic positioning of a firm, making trade-offs between its
different activities and creating a fit among these activities.
- The planned or actual coordination of the firm’s major goals and actions, in time and
space that continuously co-align the firm with its environment.

• LEVELS OF STRATEGY

CORPORATE LEVEL
CORPORATE
OFFICE

STRATEGIC BUSINESS LEVEL

SBU BUSINESS SBU
UNIT

FUNCTIONAL LEVEL
FINANCE MARKETING OPERATIONS HRM INFORMATION
 ➢ FUNCTIONAL STRATEGY
❖ Function: the intended role or purpose of a person or thing
- Is the approach a functional area takes to achieve corporate and business unit
objectives and strategies by maximizing resource productivity.
- It is concerned with developing and nurturing a distinctive competence to
provide a company or business unit with a competitive advantage.
For example:
A multi-dimensional corporation has several business units

Each unit has its own business strategy

Each unit has its own set of Departments

And each department has its own Functional Strategy

The orientation of the functional strategy is dictated by its Parent Business Unit’s Strategy:
▪ A Manufacturing Functional Strategy that emphasizes EXPENSIVE, QUALITY
ASSURANCE process over CHEAPER, HIGH-VOLUME PRODUCTION.
▪ A Human Resource Strategy that emphasizes the hiring and training of a highly
skilled, but costly, WORK FORCE.
▪ A Marketing Functional Strategy that emphasizes the DISTRIBUTON CHANNEL
“PULL” using advertising to increase consumer demand over “PUSH” using
promotional allowances to retailers.

FUNCTIONAL STRATEGY OBJECTIVES

 Profitability – producing at a net profit in business.

 Market Share – gaining and holding a specific share of a product market.
 Human Talent – recruiting and maintaining a high-quality workforce.
 Financial Health – acquiring financial capital and earning positive returns.
 Cost Efficiency – using resources well to operate at low cost.
 Product Quality – producing high-quality goods or services.
 Innovation – developing new products and/or processes.
 Social Responsibility – making a positive contribution to society.
➢ BUSINESS STRATEGY

A business level strategy definition can be summarized as a detailed outline

which incorporates a company’s policies, goals, and actions with the focus on being
how to deliver value to customers while maintaining a competitive advantage. But first,
in order to determine how you will implement these strategies, you have to figure out a
few things:

✓ What is it that your target customers value the most? (I.e., cost savings, brand
prestige, product quality, etc.)
✓ Are you targeting a broad-range or niche market?
✓ What are your resources?
✓ What differentiates you from the competition?
✓ Does your business have the capability to lead and sustain itself in the
marketplace in terms of product quality and competitive pricing?

One way to gain perspective is to put yourself in your customer’s position. For
example, when shopping for clothing, which types of brands do you purchase from?
How do you rank the importance of the pricing, material and manufacturing quality,
environmental impacts, brand identity, etc.? Compare this perspective to that of your
target customers’ and see how it aligns with your marketing initiative and business
resources.

KEY FACTORS FOR BUSINESS LEVEL STRATEGY

✓ Core Competencies – it is important to realize that a business might be particularly
good at a certain activity. It is the key abilities or strengths that a company has
developed and contribute to its long-term process.

✓ Customers – nature of the customers (both current and potential) in business level
strategy that interacts with the business.
- Who are your customers? (Determine the demographic descriptors and the
consumption patterns to draw a picture of who your customers are.)

- What products/services do your customer needs? (Complete the needs and

create value for customers. The ability to precisely predict the changes in
customer needs over time and predict the fluctuations in demand, enabling
businesses to react in strategic terms.)

- How can customers’ needs be satisfied by your business? (This is for

asking what your organizations need to do to figure out how to leverage
core competencies and resources in a manner that pleases customers -
creating value.)
 FIVE TYPES OF BUSINESS LEVEL STRATEGY

1. Cost Leadership Strategy – it is about competing with a wide variety of businesses

based on price. It is used by businesses to push efficiency, cut down production costs to make
it under the industry average, or the competition in the area.

In order to apply cost leadership to businesses, a single business can cut down the final
cost of their product or service by lowering costs elsewhere in the business. For instance, you
can buy on a large scale to have small production costs, have few middlemen, fewer employees,
and so on.
There are some common mechanisms to drive down costs, which are:
▪ Forming the rigid cost controls.
▪ Constructing state-of-the-art facilities to manufacture at large scale and a low
cost at the same time.
▪ This strategy requires your product or service to be standardized, or at the same
level of quality products or services compared to their competition.

2. Differentiation Strategy – is about utilizing a product or service with completely

unique features when comparing against the competition. Your brand will try to turn your
product or service really outstanding from the crowd, which can solve the problem that no one
else has. In order to apply this differentiation strategy to businesses, you can simply take a
product or business and choose to improve it or make it different from the competition. There
are some common mechanisms to differentiate including:

▪ Superior quality
▪ Customer service
▪ Design
▪ Uniqueness

Example: Apple is a firm that is successfully operating a differentiation strategy to sell

its laptops to a broad market when they have special design and engineering that enables them
to stand out in the marketplace, and also charge a premium price but still can combat their
competitors. (This strategy does not always work. If a product is too different or complicated
to the consumer, they may refuse to use it. So, consider that!)

3. Focused Differentiation Strategy – it is competing through differentiation by

choosing a small-scale portion of the market to concentrate on. Basically, there must be some
unique features in your product or service that meet a niche market’s demands. This type of
strategy would be great for businesses that have already got a niche that they would like to
produce more specialized products or services.
▪ Highly focused on serving small groups of customers
▪ Cut down some costs to serve the market’s needs

Example: You can focus on a particular sales channel, like selling online only.
 4. Focused Low-Cost Strategy – will compete via price and choosing a small portion
of the market to concentrate on. this strategy is very similar to the differentiation strategy except
that it is focused on a very narrow segment of the market as unique features were focused on
aiming at the small market segment.
▪ Paying attention to areas where competition is the weakest
▪ Focusing on segment where goods substitution is difficult
Example: Rolls Royce cars is using a focused differentiation strategy for their brand.
Their cars are identical to prestige, standard, and engineering excellence as they are premium
priced and concentrate on a tiny subset of the global car market.

5. Integrated Low-Cost Differentiation Strategy – where a business has unique

products provided at a lower cost producing low-cost products with unique features. Their
competitive advantage is about cost and differentiation. It is also called a hybrid strategy. This
strategy can be great for gaining customer loyalty when there’s a huge value for clients both in
the product and price.
Example: Air Arabia is a great hybrid business strategy example when the clever flight
company provides quality services when it comes to consolation but provide an economic fare
by simply cutting down on premium in-flight services.

➢ CORPORATE STRATEGY

Corporate Strategy seeks to determine what businesses a company should be in or wants

to be in. It also determines the direction that the organization is going and the roles that each
business unit in the organization will plan pursuing that direction.
A corporate strategy entails a clearly defined, long-term vision that organizations set,
seeking to create corporate value and motivate the workforce to implement the proper actions
to achieve customer satisfaction. In addition, corporate strategy is a continuous process that
requires a constant effort to engage investors in trusting the company with their money, thereby
increasing the company’s equity.
Developing a winning corporate strategy requires a relentless focus on value creation
and thoughtful attention in three important areas.

• First set a clear, shared, long-term vision that motivates the team and engages
investors. Where do we want to be in five or ten years?
• Then define a portfolio strategy to realize the vision. Which businesses should
we be in? Where should we expand and where is it best to divest?
• And finally, establish the corporate policies and processes that reflect the
corporation's parenting approach. How do we link strategy to value creation?
 FOUR TYPES OF CORPORATE STRATEGIES
1) Expansion Strategy: Increasing the scope of business definition of single or more than
one business.
Example: ADAG Communications, Infrastructure, Financial services,
Entertainment, Power, Natural resource, Petrochemical, Health care, BPO

2) Stability Strategy: Marginal change in business definition to improve its performance.

Example: A hospital brings new heart surgical technology (change in
technology) New Horlicks with new supplements. (Change in product or customer
function), A bank provides special treatment to its industrial account holders (new
approach to customer group)

3) Retrenchment Strategy: Total or partial withdrawal from one or more businesses.

Example: Only specialty treatment by a hospital instead of general treatment
earlier.

4) Combination Strategy: Adapting strategy based on market conditions

BENEFITS OF STRATEGIC MANAGEMENT

1. Universal Strategy: complex web of thoughts, ideas, insights, experiences, goals,
expertise, memories, perceptions, and expectations that provides general guidance for
specific actions in pursuit of particular ends.
2. Keeping pace with changing environment: Because of uncertainties, threats and
constraints, the business corporation are under great pressure and are trying to find out
the ways and means for their healthy survival. Under such circumstances, the only last
resort is to make the best use of strategic management which can help the corporate
management to explore the possible opportunities and at the same time to achieve an
optimum level of efficiency by minimizing the expected threats.
3. Minimizes competitive disadvantage: It minimizes competitive disadvantage and adds
up to competitive advantage.
4. Clear sense of strategic vision and sharper focus on goals and objectives: Strategy is a
basic requirement for a firm to survive and to sustain itself in today’s changing
environment by providing vision and encouraging to define mission.
5. Motivating employees: One should note that the labor efficiency and loyalty towards
management can be expected only in an organization that operates under strategic
management.
6. Strengthening decision-making: Under strategic management, the first step to be taken
is to identify the objectives of the business concern. Hence a corporation organized
under the basic principles of strategic management will find a smooth sailing due to
effective decision-making.
 7. Efficient and effective way of implementing actions for results: Strategy provides a
clear understanding of purpose, objectives and standards of performance to employees
at all levels and in all functional areas.
8. Improved understanding the internal and external environments of business: Strategy
formulation requires continuous observation and understanding of environmental
variables and classifying them as opportunities and threats. It also involves knowing
whether the threats are serious or casual and opportunities are worthy or marginal.

GROUP 1: REPORTING IN ENGINEERING MANAGEMENT

1. Antolin, Heydelle G.
2. Aribon, Roy A.
3. Arsad, Bai Alaishia W.
4. Avila, Anton Russell L.
5. Bejarin, Jameson O.
6. Bilbao, John Lenard P.
7. Blane, Jez G.
8. Castillon, Aprilene V.
9. Contratista, Kenth Lloyd H.
10. Dekolano, Rohaida M.
 ORGANIZATIONAL MODEL

■ Organization
• Any collection of persons, materials, procedures, ideas or facts so managed &
ordered that in each case the combination of parts makes a meaningful whole
that at achieving organization objectives.
• In other words the process of organization implies the arrangement of human &
nonhuman resources to make a meaningful whole that accomplishes
organizational objectives.
• Every employee must be informed of what is expected of him (responsibility) &
what is within his power (authorities), This is usually found in the "job
description".
• Managers decide how to
✓ Divide the overall task into successively smaller jobs
✓ Decide the bases by which to group the jobs
✓ The appropriate size of the group reporting to each superior Distribute
authority among the jobs
• After deciding on the major operating units & departments the required resources
must be acquired & fitted in the right place.

■ Organizational Charts
• Formal relationship between people in various positions in the organization.
• They shown who supervises whom & how various jobs & departments are linked
together to make achieve coordinated system.
• Main channels of communication (downward, upward, horizontal, and diagonal).

Example:

■ Organization Structure
• It designates formal reporting relationships, including the number of levels in the
hierarchy and the span of control of managers and supervisors.
• It identifies the grouping together of individuals into departments and of
departments into the total organization.
• It includes the design of systems to ensure effective communication,
coordination, and integration of effort across departments.
■ Elements Organization Structure
◘ Division of Labor
◘ Departmentalization
◘ Span of Control
◘ Delegation of Authority

◘ Division of Labor
• It is the process of dividing work into relatively specialized jobs to achieve
advantages of specialization.
• Subdivision of work into separate jobs assigned to different people
• Division of Labor Occurs in Three Different Ways:
1. Personal Specialties
2. Natural sequence of work
3. Vertical Plane
• Coordination means assembling & synchronizing work efforts so that they
function harmoniously to attain organizational objectives.

◘ Departmentalization
• It is the (horizontal) differentiation of the organization in departments.
Departments are organizational units that share a common supervisor and
common resources, are jointly responsible for performance, and tend to identify
and collaborate with one another.
• The process of grouping activities into units for purposes of administration.
• It can be grouping by services, location, or by geographic area.
Example:

◘ Span of Control
• Number of individuals who report to a specific manager.
• Number of people directly reporting to the next level.

Example:
◘ Delegation of Authority
• Process of distributing authority downward in an organization.
• Managers decide how much authority should be delegated to each job and to
each jobholder.
• Three Forms of Authority:
o Line Authority
o Staff Authority
o Committee and Team Authority

■ Centralization and Decentralization

• Refers to the level at which most or the operating decisions will be made.
• The greater the number of decisions made lower down the management
hierarchy the greater the degree of decentralization.
• Generally speaking, it is advisable that decisions concerning day- today matters
should be pushed down the organization structure and not be handled by top
management.

○ Advantages of Decentralization
• Quick action regarding specific problems.
• Facilitates adaptation of decisions according to local needs.
• Relieves top management from involvement in routine decisions thus saving
time and energy.
• Increases flexibility of action as junior staff are allowed to make prompt
decisions without having to wait for approval from to management.
• Effective in developing the junior staff to hold top management positions.

○ Advantages of Centralization
• Uniformity of policy and action.
• Enables maximum use of the skills and knowledge of centralized staff.
• Fosters better control of the organizations activities.
 • Enables the use of not highly skilled subordinates since every little detail is set by
the top management.
• Unity of Command – The classical principle of command suggested that each
individual in the Organization should be directly responsible to, and receive
orders from, only ONE supervisor.

■ Dimensions of Structure
• Formalization – the extent to which expectations regarding the means and ends
of work are specified, written, and enforced.
• Centralization – the location of decision-making authority in the hierarchy.
• Complexity – the direct outgrowth of dividing work and creating departments.

■ Mechanistic vs. Organic Structures

Mechanistic Organic

o high formalization narrow span of o low formalization

control high centralization
o work efforts centrally coordinated
o standard interactions in well-
defined jobs
o limited information-processing
capability
o best at simple and repetitive tasks
o good for production efficiency
o wide span of control low
centralization
o work efforts highly interdependent
o intense interactions in self-defined
jobs
o expanded information-processing
capability
o more effective at complex and
unique tasks
o good for innovation and creativity

■ Functional Organization Structure

• Organizes employees around skills or other resources (marketing, production).
• Creates subordinate goals.
○ Benefits
▪ Supports professional identity and career paths
▪ Permits greater specialization
▪ Easier supervision - similar issues
▪ Creates an economy of scale
 ○ Limitations
▪ More emphasis on subunit than organizational goals; failure to develop broad
understanding of the business
▪ Higher dysfunctional conflict because emphasized differences across subunits
▪ Poorer coordination

Example:
Functional Organization Structure

■ Divisional Organization Structure

• Organizes employees around outputs, clients, or geographic areas.
○ Benefits
▪ Building block structure
▪ Better coordination in diverse markets

○ Limitations
▪ Duplication and inefficient use of resources
▪ Specializations are dispersed, creating silos of knowledge

Example:
■ Matrix Organization Structure

• Employees are temporarily assigned to a specific project team and have a

permanent functional unit.
• Attempts to maximize the strengths and minimize the weaknesses of both the
functional and product bases.
• Superimpose a horizontal structure of authority, influence, and communication on
the vertical structure.
• Facilitates the utilization of highly specialized staff and equipment.

Example:

■ Hybrid Organization Structure

• Parts are combined to maintain balance of power and effectiveness across
functional, product, geographic and client focused units.
Example:

■ Organizational Culture
• A system of shared values, assumptions, beliefs, and norms that unite the
members of an organization.
• Reflects employees’ views about “the way things are done”.
• The culture specific to each firm affects how employees feel and act and the type
of employee hired and retained by the company.
○ Characteristics of Organization Culture
o It is distinctive
o It is based on certain Norms
o It promotes Stable values
o It leads to common behavioral aspects
o It shapes philosophy and rules • Its strength varies
 HUMAN RESOURCE MANAGEMENT

■ Human Resource
• The science and the practice that deals with the nature of the employment
relationship and all of the decisions, actions and issues that relate to this
relationship.
• The process of attracting, developing and maintaining a talented and energetic
workforce to support organizational mission, objectives and strategies.
• It involves an organization’s acquisition, development and utilization of
employees, well as the employee relationship to an organization and its
performance.

■ HRM Includes:
• Equal Employment Opportunity
• Health and Safety
• Industrial Relations
• Recruitment / Selection
• Induction / Orientation
• Training and Professional Development
• Performance Appraisal and Management
• Quality of Work Life

■ Principles of HRM
o Strategic integration
✓ Treat all labour management processes in a strategic fashion by
integrating them with the broader business.
o Organisational flexibility
✓ Highly skilled knowledge workers with full time jobs.
o Commitment
✓ Through changing the organisation’s culture.
o Quality
✓ Quality work, quality workers, quality products and services.

■ HRM Activities
o Job analysis defines a job in terms of specific tasks and responsibilities and
identifies the abilities, skills and qualifications needed to perform it successfully.
o Human resource planning or employment planning is the process by which
an organisation attempts to ensure that it has the right number of qualified people
in the right jobs at the right time.
o Employee recruitment is the process of seeking and attracting a pool of
applicants from which qualified candidates for job vacancies within an
organisation can be selected.
o Employee selection involves choosing from the available candidates the
individual predicted to be most likely to perform successfully in the job.
o Performance appraisal is concerned with determining how well employees are
doing their jobs, communicating that information to the employees and
establishing a plan for performance improvement.
 o Training and development activities help employees learn how to perform their
jobs, improve their performance and prepare themselves for more senior
positions.
o Career planning and development activities benefit both employees (by
identifying employee career goals, possible future job opportunities and personal
improvement requirements) and the organisation (by ensuring that qualified
employees are available when needed).
o Employee motivation is vital to the success of any organisation. Highly
motivated employees tend to be more productive and have lower rates of
absenteeism and turnover.

■ Human Resource Development

• A set of systematic and planned activities designed by an organization to provide
its members with the necessary skills to meet current and future job demands.

■ Training and Development

• Training
➢ Improving the knowledge, skills and attitudes of employees for the short-
term, particular to a specific job or task.
• Development
➢ Preparing for future responsibilities, while increasing the capacity to
perform at a current job.

■ The Tangible vs. Intangible Assets

• The tangible assets of the firm are visible and quantified, can be easily
duplicated, depreciate with use.
Ex: manufacturing plant, equipment, buildings and other physical
infrastructure
• The intangible assets are invisible, difficult to quantify, must be developed over
time, appreciate with purposeful use.
Ex: technological know-how, customer loyalty, branding, business
processes

■ Firm Capital
o Human Capital
✓ Knowledge, skills, abilities of individuals
o Social Capital
✓ Relationships in social networks
✓ Structural, cognitive, relational dimensions
o Intellectual capital
✓ Knowledge and knowing capability of social collectivities
✓ Procedural/declarative; tacit/explicit; individual/social

■ Human Capital
• It is an organization consists of the people who work for it and on whom the
success of the business depends.
• It represents the human factor in the organization: the combined intelligence,
skills and expertise that give the organization the distinctive character.
 • The human elements are those that are capable of learning, changing,
innovating.

■ Knowledge Economy
• It encompasses all jobs, companies and industries in which the knowledge and
capabilities of people, rather than the capabilities of machines or technologies,
determine competitive advantage.

■ Knowledge Workers
• Knowledge workers have high degrees of expertise, educations or experience
and the primary purpose of their jobs involves the creation, distribution of
application of knowledge.

■ Challenges for HR
o Competing in the Global Economy
✓ New technologies
✓ Need for more skilled and educated workers
✓ Cultural sensitivity required
✓ Team involvement
✓ Problem solving
✓ Better communications skills
o Need for Learning
✓ Organizations change
✓ Technologies change
✓ Products change
✓ Processes change
✓ PEOPLE must change

■ Reward and Recognition System Management

• By valuating and recognizing people, you harness the power of motivation, which
is the single most powerful strategy used to promote performance and positive
behaviors.
• A reward is given by an “organization” to value something it already has or it
ascribes a value to a particular job/event. REWARD → MONETORY
• A recognition is just an expression of feeling. It happens when a person is
impacted by another person and he / she expresses it openly.
RECOGNITION → FEELINGS

■ Human Resource Analysis

• To identify the size, skills and structure surrounding current employees
• To identify future human resource needs of the organization
• Obtain some basic information on the people
• Explore in detail the role and contribution of the human resources management
function in the development of strategy.
■ Coaching and Mentoring
• Coaching
➢ Used to support the process of reviewing established or emerging
practices. It is focused on innovation, change or specific skills.
➢ Conceived as a more structured learning process aimed at explicit
professional development in an agreed area of performance.
• Mentoring
➢ Concerned with supporting practitioners whilst they make a significant
career transition
➢ Mentoring in intended to be supportive of the individual and occurs ‘at
need’.

■ Competencies
• A collection of characteristics (i.e. skills, knowledge and self-concept, traits,
behavior, motivation, etc.), that enables someone to successfully complete a
given task.

Skills Knowledge

Self-concept
 GROUP 2

10 QUESTIONS (5 for Organizational Model & 5 for Human Resource Management)

Instruction: Write the right and complete answer for each item.

1. In organization, it refers to Formal relationship among people in various positions.

Ans. Organizational Charts

2. It assigns formal reporting relationships, including the number of levels in the hierarchy and the
span of control of managers and supervisors.

Ans. Organization Structure

3. The parts are combined to maintain balance of power and effectiveness across functional,
product, geographic and __________________.

Ans. client focused units

4. It is defined as the direct outgrowth of dividing work and creating departments.

Ans. Complexity

5. Give one (1) advantage for Decentralization and Centralization. Please refer your answer to the
ppt/pdf provided.

Ans. *(see in the ppt/pdf)

6. It involves an organization’s acquisition, development and utilization of employees, well as the

employee relationship to an organization and its performance.

Ans. Human Resource

7. Human Resource Management includes? Supply one (1) example.

Ans. *(see in the ppt/pdf)

8. One of the challenges for HR is Competing in the Global Economy, it includes new technologies,
need for more skilled and educated workers, team involvement, problem solving, better
communication skills, and ___________________.

Ans. cultural sensitivity required.

9. Strategic integration, organizational flexibility, commitment, and quality are principles of HRM.
Give one (1) example of Quality.

Ans. Any of the following: quality work, quality workers, quality products and services

10. These are activities benefit both employees (by identifying employee career goals) and the
organization (by ensuring that qualified employees are available when needed.

Ans. Career planning and development

 1.AmongthePsofmarketi
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hisper
tai
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oumakey
ourt
arget
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oductsandser
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Ans:
Promot
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2.Iti
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Ans:
Str
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3. Tr
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Ans:
True

4.Thi
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Ans:
Ener
gyCost

5.I
tseekst
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Ans:
Busi
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6.TrueorFal
se:
FocusedDi
ff
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Ans:
Fal
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Ans:
Cor
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Ans:
Fal
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9.Thi
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.

Ans:
Per
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Benef
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10.Iti
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,setofi
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del
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andexchangingoff
eri
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cli
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part
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s,and
societyatlarge

Ans:
Mar
ket
ing
MARKETING AND STRATEGY
WHAT IS MARKETING?
 • Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large marketing Association.

This definition consists of three major parts:

• Aprocess
• that hasvalue
• forbeneficiaries .
 THE MARKETING PROCESS

Marketing mix

• A set of actions that businesses and marketers

use to help promote their brand, or to sell a
product or service they offer.

• A tool to structure marketing activities that helps

managers considers all relevant aspects of their
project.
 4P’s OF MARKETING MIX

1. Product (creating) Product

2. Promotion(communicating)
3. Place (distribution)
4. Price (exchange) 4P'S of
Promotion Marketing Price
Mix

Place
 PRODUCT
• is the most obvious aspect of marketing
for engineers. Designing and creating new
products and services is the core job of an
engineer.

• Engineering focuses on the technical

aspects of a product such as a car or a
computer.
• Although technology is important,
marketing helps engineers to create better
productsthat meet the needs of
customers.

• The first law of consumer behaviour is

that customers buy stuff for what it
means to them, not what it does.
 PLACE
• The place component of the marketing
mix can cover a range of things, such as a
retail place such as a shop or a place of
service, such as a barber shop.

• The place component also relates to the

distribution of products from
manufacturing to the customer.
• Supply chain logistics is a common
problem for engineers who design
facilities to ship products and services
around the world or create infrastructure
to manage e-commerce.
PROMOTION

• Advertising is the most visible aspects of

marketing, which is the reason the two are
often seen as synonymous.

• The promotion dimension of the

marketing mix includes all communication
with the beneficiaries of the project,
whether they are customers or the
community overall.
• In public engineering projects, the
promotion dimension includes engaging
the community that will benefit from the
engineering works.
 PRICE

• Determining the price of a project is a

common task for engineers.

• When a marketer determines the price of a

product or service, they don't only look at
internal aspects, but also how much the
customer is willing to pay.
 DEFINING VALUE

• From an economic perspective, value is

the difference between costs and benefits.

• In contrast, the marketing perspective

includes aspects beyond financial costs
and benefits
 The Balance of Customer Value
The benefits of a product are first that which
the product does for the customer. A car has
the obvious benefit of moving people and
things from A to B. The service benefit is
about the ease of using the product, after-
sales support and so on. Lastly, the personal
benefit relates to how the product makes
people feel about owning or using it.
The cost equation of a product or service is
not only the monetary cost of purchase and
operation, but also time and psychological
energy. The time cost that a consumer
incurs relates to the level of convenience
they get. The energy cost relates to possible
frustrations because of badly designed
products.
 BENIFICIARIES

• Marketing is traditionally only about

customers and commercial relationships
between buyers and sellers.
Contemporary views of marketing are
more inclusive and relate to every
relationship where one party provides
benefits to another.
• Engineering is a method to improve the
world in which we live; either through
commercial products or public
engineering. Whichever way, the purpose
of good engineering is to add value to
society overall.

• Finally, marketing and engineering are

perfect partners.
WHAT IS STRATEGY?
• Comes from the Greek word ‘strategos’ which
means generalship.
• A plan or course of action or set of decision
rules making a pattern or creating a common
thread.
• Concerned with the resources necessary for
implementing a plan or following a course of
action
• Related to pursuing those activities which move
an organization from its current position to the
desired future state.
 Levels of Strategy

CORPORA CORPORATE LEVEL

TE OFFICE
STRATEGI
C BUSINESS LEVEL
SBU SBU
BUSINESS
UNIT
MARKETI OPERATIO INFORMA
FINANCE HRM FUNCTIONAL LEVEL
NG NS TION
 FUNCTIONAL LEVEL

Function: the intended role or purpose of a

person or thing

• Is the approach a functional area takes to

achieve corporate and business unit
objectives and strategies by maximizing
resource productivity.
• To develop and nurture a distinctive
competence to provide a company (BU)
competitive advantage

• Involve setting up short-term functional

objectives
Functional Strategy Objectives
• Profitability
• Market Share
• Human Talent
• Innovation
• Financial Health
• Cost Efficiency
• Product Quality
• Social Responsibility
 BUSINESS STRATEGY

• Seeks to determine how an organization

should compete in each of its businesses.
Key Factors for Business Level Strategy

Core Competencies–it is important to realize

that a business might be particularly good at a
certain activity. It is the key abilities or strengths
that a company has developed and contribute to
its long-term process.
Customers – nature of the customers (both
current and potential) in business level strategy
that interacts with the business.

▫Who are your customers?

▫What products/services do your customer needs?

▫How can customers’ needs be satisfied by your

business?
5 Types of Business Level Strategy
1. Cost Leadership Strategy – it is about
competing with a wide variety of businesses
based on price.
2. Differentiation Strategy – is about utilizing a
product or service with completely unique
features when comparing against the
competition. Common mechanisms to
differentiate: Superior quality, Customer
Service, Design, and Uniqueness.
3. Focused Differentiation Strategy – it is
competing through differentiation by choosing
a small-scale portion of the market to
concentrate on.
 Highly focused on serving small groups of customers
 Cut down some costs to serve the market’s needs

4. Focused Low-cost Strategy – will compete via

price and choosing a small portion of the
market to concentrate on.
 Paying attention to areas where competition is the
weakest
 Focusing on segment where goods substitution is
difficult
5. Integrated Low-cost Differentiation Strategy –
where a business has unique products provided
at a lower cost producing low-cost products with
unique features. It is also called a hybrid strategy.
CORPORATE STRATEGY

• Seeks to determine what businesses a

company should be in or wants to be in.

• Determines the direction that the

organization is going and the roles that
each business unit in the organization will
plan pursuing that direction.
• Entails a clearly defined, long-term vision that
organizations set, seeking to create corporate
value and motivate the workforce to implement
the proper achive to achive customer satifaction.

• It is also a continuous process that requires a

constant effort to engage investors in trusting
the company with their money, increasing the
copany’s equity.
Developing a wnning corporate strategy requires a
relentless focus on value creation and thoughtful
attention in three important areas.

• First : Set a clear, shared, long-term vision that

motivates the team and engages investors.

• Second : Define a portfolio strategy to realize

the vision.

• Third : Establish the corporate policies and

processes that reflect the corporation’s
parenting approach.
3 Types of Corporate Strategies

1. Expansion Strategy – increasing the scope of

business definition of single or more than one
business.

2. Stability Strategy – marginal change in

business definition to improve its performance.

3. Retrenchment Strategy – total or partial

withdrawal from one or more businesses.
BENEFITS OF STRATEGIC
MANAGEMENT
1. Universal Strategy: complex web of thoughts,
ideas, insights, experiences, goals, expertise,
memories, perceptions, and expectations that
provides general guidance for specific actions
in pursuit of particular ends.

2. Keeping pace with changing environment

3. Minimizes competitive disadvantage

4. Clear sense of strategic vision and sharper

focus on goals and objectives

5. Motivating employees

6. Strengthening decision-making

7. Efficient and effective way of implementing

actions for results.

8. Improved understanding the internal and

external environments of business
That’s All, Thank You for Listening
 ORGANIZATIONAL MODEL

■ Organization
• Any collection of persons, materials, procedures, ideas or facts so managed &
ordered that in each case the combination of parts makes a meaningful whole
that at achieving organization objectives.
• In other words the process of organization implies the arrangement of human &
nonhuman resources to make a meaningful whole that accomplishes
organizational objectives.
• Every employee must be informed of what is expected of him (responsibility) &
what is within his power (authorities), This is usually found in the "job
description".
• Managers decide how to
✓ Divide the overall task into successively smaller jobs
✓ Decide the bases by which to group the jobs
✓ The appropriate size of the group reporting to each superior Distribute
authority among the jobs
• After deciding on the major operating units & departments the required resources
must be acquired & fitted in the right place.

■ Organizational Charts
• Formal relationship between people in various positions in the organization.
• They shown who supervises whom & how various jobs & departments are linked
together to make achieve coordinated system.
• Main channels of communication (downward, upward, horizontal, and diagonal).

Example:

■ Organization Structure
• It designates formal reporting relationships, including the number of levels in the
hierarchy and the span of control of managers and supervisors.
• It identifies the grouping together of individuals into departments and of
departments into the total organization.
• It includes the design of systems to ensure effective communication,
coordination, and integration of effort across departments.
■ Elements Organization Structure
◘ Division of Labor
◘ Departmentalization
◘ Span of Control
◘ Delegation of Authority

◘ Division of Labor
• It is the process of dividing work into relatively specialized jobs to achieve
advantages of specialization.
• Subdivision of work into separate jobs assigned to different people
• Division of Labor Occurs in Three Different Ways:
1. Personal Specialties
2. Natural sequence of work
3. Vertical Plane
• Coordination means assembling & synchronizing work efforts so that they
function harmoniously to attain organizational objectives.

◘ Departmentalization
• It is the (horizontal) differentiation of the organization in departments.
Departments are organizational units that share a common supervisor and
common resources, are jointly responsible for performance, and tend to identify
and collaborate with one another.
• The process of grouping activities into units for purposes of administration.
• It can be grouping by services, location, or by geographic area.
Example:

◘ Span of Control
• Number of individuals who report to a specific manager.
• Number of people directly reporting to the next level.

Example:
◘ Delegation of Authority
• Process of distributing authority downward in an organization.
• Managers decide how much authority should be delegated to each job and to
each jobholder.
• Three Forms of Authority:
o Line Authority
o Staff Authority
o Committee and Team Authority

■ Centralization and Decentralization

• Refers to the level at which most or the operating decisions will be made.
• The greater the number of decisions made lower down the management
hierarchy the greater the degree of decentralization.
• Generally speaking, it is advisable that decisions concerning day- today matters
should be pushed down the organization structure and not be handled by top
management.

○ Advantages of Decentralization
• Quick action regarding specific problems.
• Facilitates adaptation of decisions according to local needs.
• Relieves top management from involvement in routine decisions thus saving
time and energy.
• Increases flexibility of action as junior staff are allowed to make prompt
decisions without having to wait for approval from to management.
• Effective in developing the junior staff to hold top management positions.

○ Advantages of Centralization
• Uniformity of policy and action.
• Enables maximum use of the skills and knowledge of centralized staff.
• Fosters better control of the organizations activities.
 • Enables the use of not highly skilled subordinates since every little detail is set by
the top management.
• Unity of Command – The classical principle of command suggested that each
individual in the Organization should be directly responsible to, and receive
orders from, only ONE supervisor.

■ Dimensions of Structure
• Formalization – the extent to which expectations regarding the means and ends
of work are specified, written, and enforced.
• Centralization – the location of decision-making authority in the hierarchy.
• Complexity – the direct outgrowth of dividing work and creating departments.

■ Mechanistic vs. Organic Structures

Mechanistic Organic

o high formalization narrow span of o low formalization

control high centralization
o work efforts centrally coordinated
o standard interactions in well-
defined jobs
o limited information-processing
capability
o best at simple and repetitive tasks
o good for production efficiency
o wide span of control low
centralization
o work efforts highly interdependent
o intense interactions in self-defined
jobs
o expanded information-processing
capability
o more effective at complex and
unique tasks
o good for innovation and creativity

■ Functional Organization Structure

• Organizes employees around skills or other resources (marketing, production).
• Creates subordinate goals.
○ Benefits
▪ Supports professional identity and career paths
▪ Permits greater specialization
▪ Easier supervision - similar issues
▪ Creates an economy of scale
 ○ Limitations
▪ More emphasis on subunit than organizational goals; failure to develop broad
understanding of the business
▪ Higher dysfunctional conflict because emphasized differences across subunits
▪ Poorer coordination

Example:
Functional Organization Structure

■ Divisional Organization Structure

• Organizes employees around outputs, clients, or geographic areas.
○ Benefits
▪ Building block structure
▪ Better coordination in diverse markets

○ Limitations
▪ Duplication and inefficient use of resources
▪ Specializations are dispersed, creating silos of knowledge

Example:
■ Matrix Organization Structure

• Employees are temporarily assigned to a specific project team and have a

permanent functional unit.
• Attempts to maximize the strengths and minimize the weaknesses of both the
functional and product bases.
• Superimpose a horizontal structure of authority, influence, and communication on
the vertical structure.
• Facilitates the utilization of highly specialized staff and equipment.

Example:

■ Hybrid Organization Structure

• Parts are combined to maintain balance of power and effectiveness across
functional, product, geographic and client focused units.
Example:

■ Organizational Culture
• A system of shared values, assumptions, beliefs, and norms that unite the
members of an organization.
• Reflects employees’ views about “the way things are done”.
• The culture specific to each firm affects how employees feel and act and the type
of employee hired and retained by the company.
○ Characteristics of Organization Culture
o It is distinctive
o It is based on certain Norms
o It promotes Stable values
o It leads to common behavioral aspects
o It shapes philosophy and rules • Its strength varies
 HUMAN RESOURCE MANAGEMENT

■ Human Resource
• The science and the practice that deals with the nature of the employment
relationship and all of the decisions, actions and issues that relate to this
relationship.
• The process of attracting, developing and maintaining a talented and energetic
workforce to support organizational mission, objectives and strategies.
• It involves an organization’s acquisition, development and utilization of
employees, well as the employee relationship to an organization and its
performance.

■ HRM Includes:
• Equal Employment Opportunity
• Health and Safety
• Industrial Relations
• Recruitment / Selection
• Induction / Orientation
• Training and Professional Development
• Performance Appraisal and Management
• Quality of Work Life

■ Principles of HRM
o Strategic integration
✓ Treat all labour management processes in a strategic fashion by
integrating them with the broader business.
o Organisational flexibility
✓ Highly skilled knowledge workers with full time jobs.
o Commitment
✓ Through changing the organisation’s culture.
o Quality
✓ Quality work, quality workers, quality products and services.

■ HRM Activities
o Job analysis defines a job in terms of specific tasks and responsibilities and
identifies the abilities, skills and qualifications needed to perform it successfully.
o Human resource planning or employment planning is the process by which
an organisation attempts to ensure that it has the right number of qualified people
in the right jobs at the right time.
o Employee recruitment is the process of seeking and attracting a pool of
applicants from which qualified candidates for job vacancies within an
organisation can be selected.
o Employee selection involves choosing from the available candidates the
individual predicted to be most likely to perform successfully in the job.
o Performance appraisal is concerned with determining how well employees are
doing their jobs, communicating that information to the employees and
establishing a plan for performance improvement.
 o Training and development activities help employees learn how to perform their
jobs, improve their performance and prepare themselves for more senior
positions.
o Career planning and development activities benefit both employees (by
identifying employee career goals, possible future job opportunities and personal
improvement requirements) and the organisation (by ensuring that qualified
employees are available when needed).
o Employee motivation is vital to the success of any organisation. Highly
motivated employees tend to be more productive and have lower rates of
absenteeism and turnover.

■ Human Resource Development

• A set of systematic and planned activities designed by an organization to provide
its members with the necessary skills to meet current and future job demands.

■ Training and Development

• Training
➢ Improving the knowledge, skills and attitudes of employees for the short-
term, particular to a specific job or task.
• Development
➢ Preparing for future responsibilities, while increasing the capacity to
perform at a current job.

■ The Tangible vs. Intangible Assets

• The tangible assets of the firm are visible and quantified, can be easily
duplicated, depreciate with use.
Ex: manufacturing plant, equipment, buildings and other physical
infrastructure
• The intangible assets are invisible, difficult to quantify, must be developed over
time, appreciate with purposeful use.
Ex: technological know-how, customer loyalty, branding, business
processes

■ Firm Capital
o Human Capital
✓ Knowledge, skills, abilities of individuals
o Social Capital
✓ Relationships in social networks
✓ Structural, cognitive, relational dimensions
o Intellectual capital
✓ Knowledge and knowing capability of social collectivities
✓ Procedural/declarative; tacit/explicit; individual/social

■ Human Capital
• It is an organization consists of the people who work for it and on whom the
success of the business depends.
• It represents the human factor in the organization: the combined intelligence,
skills and expertise that give the organization the distinctive character.
 • The human elements are those that are capable of learning, changing,
innovating.

■ Knowledge Economy
• It encompasses all jobs, companies and industries in which the knowledge and
capabilities of people, rather than the capabilities of machines or technologies,
determine competitive advantage.

■ Knowledge Workers
• Knowledge workers have high degrees of expertise, educations or experience
and the primary purpose of their jobs involves the creation, distribution of
application of knowledge.

■ Challenges for HR
o Competing in the Global Economy
✓ New technologies
✓ Need for more skilled and educated workers
✓ Cultural sensitivity required
✓ Team involvement
✓ Problem solving
✓ Better communications skills
o Need for Learning
✓ Organizations change
✓ Technologies change
✓ Products change
✓ Processes change
✓ PEOPLE must change

■ Reward and Recognition System Management

• By valuating and recognizing people, you harness the power of motivation, which
is the single most powerful strategy used to promote performance and positive
behaviors.
• A reward is given by an “organization” to value something it already has or it
ascribes a value to a particular job/event. REWARD → MONETORY
• A recognition is just an expression of feeling. It happens when a person is
impacted by another person and he / she expresses it openly.
RECOGNITION → FEELINGS

■ Human Resource Analysis

• To identify the size, skills and structure surrounding current employees
• To identify future human resource needs of the organization
• Obtain some basic information on the people
• Explore in detail the role and contribution of the human resources management
function in the development of strategy.
■ Coaching and Mentoring
• Coaching
➢ Used to support the process of reviewing established or emerging
practices. It is focused on innovation, change or specific skills.
➢ Conceived as a more structured learning process aimed at explicit
professional development in an agreed area of performance.
• Mentoring
➢ Concerned with supporting practitioners whilst they make a significant
career transition
➢ Mentoring in intended to be supportive of the individual and occurs ‘at
need’.

■ Competencies
• A collection of characteristics (i.e. skills, knowledge and self-concept, traits,
behavior, motivation, etc.), that enables someone to successfully complete a
given task.

Skills Knowledge

Self-concept
 COSTMANAGEMENTANDPRODUCTI
VITY

I
. COSTMANAGEMENT

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ue.

3.Engi
neer
ingCont
ract
or
(
a)Topr
ovi
deef
fect
iveover
all
costmanagementoft
hescopeunderhi
scont
rol
.
- Thi
s wil
lincl
ude keepi
ng the cl
ient appr
aised and i
nvol
vi
ng cl
i
ent i
n
managementdeci
si
onswhereappropri
ate.

(
b)Toprovi
decostdat
atot
hecl
i
entandot
her
swhoar
emanagi
ngover
all
proj
ect
cost
s.
- Thi
sshoul
dincl
udebot
hcur
rentcost
sandpr
oject
ionsoff
inal
cost
s.
(
c)Par
ti
cipat
easappr
opr
iat
einmeasur
esai
medatcont
rol
l
ingcost
s
 4.Mat
eri
alSuppl
i
ers
Toadvisecostofmat
eri
alst
obesuppl
i
edandanyf
oreseenchangesi
nthose
cost
s.

5.Ext
ernal
FinancePr
ovi
der
Toensur
et hatthefundsheprovi
dedareusedproper
lyfort
hepurposet
hewere
pr
ovi
ded,includinganyspeci
fi
crest
ri
cti
ons(
par
ti
cular
lyf
orgover
nmentgrant
s).

4St
epsi
nCostManagement

St
ep1:Resour
cepl
anni
ng
- i
st he process of ascert
aining futur
e r esour ce requir
ementsfor an
organizat
ionorascopeofwor k.Thi
sinvolvest heevaluati
onandplanni
ngof
the use oft he physi
cal
,human,f inancial,and i nf
ormationalr
esources
requir
edtocompl eteworkacti
viti
esandt heirtasks.
- begi
nsinthescopeandexecut i
onplandevelopmentprocessduri
ngwhi
ch
theworkbreakdownst r
uctur
e,organi
zat
ionalbreakdownstr
uctur
e(OBS),
workpackages,andexecut
ionst
rat
egyaredeveloped.
- Resource est i
mat i
ng (usual
ly a partofcostest imati
ng)det ermines t
he
acti
vit
y’sr esource quanti
ti
es needed ( hours,tools,materi
als,etc.)while
schedule planning and devel opmentdet ermines the wor k act
ivi
ti
es be
performed.Resour ceplanningt hentakestheestimatedresourcequant i
ti
es,
evaluates r esource avai l
abil
ity and l imit
ati
ons consi deri
ng pr oject
cir
cumst ances,andt henopt imizeshow theavai l
ableresources(whichar e
oft
enl i
mited)wi l
lbeusedi ntheacti
viti
esovertime.

St
ep2:CostEst
imat
ing
- Ist he predicti
ve processused t o quant
ify,cost,and pr i
cet he r
esources
requir
edbyt hescopeofani nvest
mentopt ion,act
ivit
y,orproject
.Itinvol
ves
the appl i
cation of t echniques that conver t quantif
ied technical and
programmat icinformati
onaboutanassetorpr oj
ectintofi
nanceandr es
ource
i
nformat i
on.The out puts ofest i
mating are used pr i
maril
y as inputsfor
business planning,costanal ysi
s,and deci si
ons orf orpr oj
ectcos tand
schedulecont rolpr
ocesses .
- Thecostest
imat
ingpr
ocessi
sgener
all
yappl
i
eddur
ingeachphaseoft
he
 assetorproj
ectl
if
ecycleastheassetorpr ojectscopeisdefi
ned,modif
ied,
and ref
ined.As the l
evelofscope def i
nit
ion i
ncreases,t
he esti
mati
ng
methods used become mor e definit
ive and pr oduce esti
mates with
i
ncreasi
nglynar
rowprobabil
i
sti
ccostdist
r i
buti
ons.
- The est i
mation of the t i
me dur at
ion of acti
viti
es mustbe consi dered
concurrentl
ywi t
hcost sbecausecost sareof t
endependentont i
medur at
ion
and resource requirement sidenti
fi
ed in costest i
mat i
ng may af f
ectt he
schedule.I t
erat
ive appr oaches are used because out comes ofa cost
esti
mate of t
en l
ead t o changesin scope orpl ans.Inf act,the esti
mating
processcan be vi ewed aspar toft he scope defi
nit
ion processbecause
i
terat
ivetradingoffbetweencostandscopei nter
twinethepr ocesses.

St
ep3:CostBudget
ing
- Budgeting i
s a sub-process withi
n estimating used for al
l
ocati
ng the
esti
mated cost of resources into cost accounts against whi
ch cost
perfor
mancewi l
lbemeasur edandassessed.Thi sformst hebaseli
nef or
costcontrol
.Costaccount sused f r
om t he char
tofaccount smustal so
supportthe costaccounti
ng process.Budget sar e of
ten t
ime-phased in
accordance withthe schedule or t o address budgetand cash f low
constr
aint
s.

St
ep4:CostCont
rol
- i
sconcer nedwi thmeasur i
ngvar i
ancesf rom t
hecostbasel ineandt aking
effecti
ve correcti
ve act i
on to achieve mi ni
mum cost s.Pr ocedures are
appliedtomoni torexpendi t
uresandper formanceagai nsttheprogressofa
project.Allchangest ot he costbaseline need to be recorded and the
expected finaltotalcostsar e conti
nuouslyforecast
ed.When act ualcost
i
nfor mati
onbecomesavai l
ableani mportantpartofcostcontroli
stoexplain
whati scausingt hevariancef r
om thecostbasel i
ne.Basedont hi
sanalysis
correcti
veact i
onmi ghtber equi
redt oavoidcostoverr
uns.
 I
I. PRODUCTI
VITY
Production and producti
vit
yar etwo mostcommon and popul art
ermsus ed i
n
manuf actur
ingsector.Thisisbecausethatwellbei
ngofanat i
onandstandardof
common peopl e are associat
ed wi
ththe ef
fecti
ve ut
il
i
zat
ion ofpr
oducti
on and
i
mpr ovementi nproducti
vit
y
Pr
oduct
ion
- I
saconver si
onpr
ocesst hatconvertsinput(
raw mater
ial
,man,equi
pment,
tool
s,ener
gy,money,etc.)int
of i
nishedproductthathaveavaluefort
he
cust
omerandconsumers.
Pr
oduct
ivi
ty
- I
tist
hemeasur
eofhowwel
lresour
cesar
eut
il
i
zedt
opr
oduceout
put
.
- Thi
ster
m symbol
i
zest
hef
oll
owi
ng:
•itrel
atesoutputt
oinputin any conversi
on syst
em wher
e some val
ue
addi
ti
on.i
sper
formedonthei
nputresources.
•i
ti
sthequant
it
ati
vemeasur
eofper
for
mance
•i
ti
ntegr
atesper
for
manceaspect
sofqual
i
ty,ef
fi
ciencyandef
fect
iveness
- I
st heopti
mizedut i
l
izat
ionofal
lavai
l
abl
er esources,i
nvest
igat
ioni
ntothebest
knownr esourcesandgener at
ingnew resources,thr
oughcr eat
ivethi
nki
ng,
resear
ch and devel opment and the use of al lpossibl
ei mprovement
techni
quesmet hodsandappr oachesfort heproducti
onanddi str
ibut
ionof
goodsandr esources.
Pr
oduct
ivi
tymeasur
ement
- I
splannedandsystemati
cacti
vi
tyt
hati
susedt
oassessandquant
if
ythrst
atus
ofproduct
ivi
tyataspeci
fi
cperi
odoft
ime.
- Thi
smeasur
ementwi
l
lhel
p:
(
a)Toknowt
hepr
esentst
ateofpr
oduct
ivi
ty
(
b)Toi
nit
iat
etheact
ionpl
anneededt
oimpr
ovepr
oduct
ivi
ty,and
(
c)Tocheckt
heef fect
ivenessofact
ionpl
anbymeasur
ingt
hechangedst
ate
ofpr
oduct
ivi
ty.
Pr
oduct
ivi
tymanagement
- Product
ivi
tymanagementatt
heor
gani
zat
ionl
evel
isast
rat
egi
cwi
thl
ongt
erm
i
mpl i
cat
ions.
 - A wel
lknown organi
zat
ion f
ramewor
kfor pr
oduct
ivi
ty consi
sts oft
he
f
oll
owi
ngel
ements:
•Goal
sandObj
ect
ives
•I
nfor
mat
ion
•Empl
oyeesI
nvol
vement
•Asset
s
•Leader
shi
p

Di
ff
erencebet
weenpr
oduct
ivi
tyandpr
oduct
ion
Exampl
e
Comput
ethepr
oduct
ivi
typermachi
nehourwi
tht
hef
oll
owi
ngdat
a.Al
sodr
aw
youri
nter
pret
ati
on.

Mont
h No.of Worki
ng Machi
ne Pr
oducti
on
Machines Hour
s Hour
s Unit
Employed
March 400 225 90,
000 99,000
April 500 200 1
00,000 1
00,000
May 600 250 1
50,000 135,
000

Sol
uti
on:

Weknow P=Pr
oduct
ivi
typermachi
nehour
,
=Pr
oduct
ionuni
ts
Machi
nehour
s
Ef
fectofPr
oduct
ivi
tyi
ntheSoci
ety
•Empl
oyer
'sGai
ns
•Labor
’sGai
ns
•Communi
tyGai
ns
•Gover
nmentGai
ns

Fact
orsAf
fect
ingPr
oduct
ivi
ty
school files

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Cost management
and productivity
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PRESENTERS

Kharim Jharil Mary Joy Karl Mark Lawrence

Roger Porras
Mohamad Manayaga Recopuerto Reniedo

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I. Cost
management
 Concerned with the processing of finding the right project and
carrying out the project the right way
 Includes activities such as planning, estimating, budgeting, financing,
funding, managing, controlling, and benchmarking
 Covers the full life cycle of a project

Objectives:
• To control cost and maximize value for the business and must
therefore not be confined to controlling the main project (capital)
budget, but should address all budgets related to the project and also
the projected impacts upon overall business performance

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Purpose of cost
management
To provide the parties concerned with a most favorable financial outcome to the project. This will be measured
in terms of:

a) Identifying “best value” project option selection and developing realistic budgets
b) Ensuring that project budget(s) are, so far as possible, met
c) Providing early warning of any potential any significant deviations from budget and implementation of
corrective actions
d) Managing cost risks
e) Financial management of contracts
f) Generating the optimal business return for the client and contractors

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cost management party

1. Client
During the implementation phase the client’s primary aim will be:
a) To minimize project cost whilst ensuring fulfilment of the project objectives and deliverables
b) To ensure he has a current and realistic projection of cash flow and final costs

2. Engineering Consultant
The person who supports the client in development phase, specifically;
a) To manage own costs versus budget.
b) To act on behalf of the client in estimating, cost reporting and management of work he is carrying out.
c) To manage the cost of any specialist contractors utilized in this phase
d) Supporting the client assessing options

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cost management party

3. Engineering Contractor
a) To provide effective overall cost management of the scope under his control.
b) To provide cost data to the client and others who are managing overall project costs.
c) Participate as appropriate in measures aimed at controlling costs

4. Material Supplier
To advise cost of materials to be supplied and any foreseen changes in those costs

5. External Finance Provider

To ensure that the fund she provided are used properly for the purpose the were provided, including any
specific restrictions (particularly for government grants).

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4 steps in cost
management
Insert picture that is related to
your topic
Step 1: Resource Planning
Step 2: Cost Estimating
Step 3: Cost Budgeting
Step 4: Cost Control

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4 steps in cost
management
Step 1: Resource Planning
 is the process of ascertaining future resource requirements for an organization or as cope of work.
 Begins in the scope and execution plan development process
 Resource estimating determines the activity’s resource quantities needed while schedule planning and
development determines the work activities be performed.
 Resource planning then takes the estimated resource quantities, evaluates resource availability and
limitations considering project circumstances, and then optimizes how the available resources will be
used in the activities over time.

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4 steps in cost
Step 2: Cost Estimating management
 Is the predictive process used to quantify, cost, and price there sources required by the scope of an
investment option, activity, or project.
 The cost estimating process is generally applied during each phase of the asset or project life cycle as
the asset or project scope is defined, modified, and refined.
 The estimation of the time duration of activities must be considered concurrently with costs because
costs are often dependent on time duration and resource requirements identified in cost estimating
may affect the schedule.

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4 steps in cost
management
Step 3: Cost Budgeting
 Budgeting is a sub-process within estimating used for allocating the estimated cost of resources into
cost accounts against which cost performance will be measured and assessed. This forms the baseline
for cost control.
 Cost accounts used from the chart of accounts must also support the cost accounting process.
 Budgets are often time-phased in accordance with the schedule or to address budget and cash flow
constraints.

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4 steps in cost
management
Step 4: Cost Control
 Concerned with measuring variances from the cost baseline and taking effective corrective action to
achieve minimum costs.
 Procedures are applied to monitor expenditures and performance against the progress of a project.
 All changes to the cost baseline need to be recorded and the expected final total costs are continuously
forecasted.

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II. PRODUCTIVITY

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PRODUCTIVITY
Production and productivity are two most common and
popular terms used in manufacturing sector. This is
because that well being of a nation and standard of
common people are associated with the effective
utilization of production and improvement in productivity.

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PRODUCTIVITY
Production
 Is a conversion process that converts input into finished product that have a value for the customer and
consumers.

Productivity

 It is the measure of how well resources are utilized to produce output.

 It relates output to input in any conversion system where some value addition is performed on the input
resources.
 It is the quantitative measure of performance
 It integrates performance aspects of quality, efficiency and effectiveness
 Is the optimized utilization of all available resources, investigation into the best known resources and
generating new resources, through creative thinking, research and development and the use of all
possible improvement techniques methods and approaches for the production and distribution of goods
and resources.

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PRODUCTIVITY
Productivity Measurement

 Is planned and systematic activity that is used to assess and quantify the status of
productivity at a specific period of time.

 This measurement will help:

a) To know the present state of productivity
b) To initiate the action plan needed to improve productivity, and
c) To check the effectiveness of action plan by measuring the changed state of
productivity.

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PRODUCTIVITY
Productivity Management

 Productivity management at the organization level is a strategic with long term implications.

 A well known organization framework for productivity consists of the following elements:
• Goals and Objectives
• Information
• Employees Involvement
• Assets
• Leadership

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PRODUCTIVITY
Difference between productivity and production

Example:
Compute the productivity per machine hour with the following data. Also draw your
interpretation.
Month No. of Working Machine Hours Production
Machines Hours Unit
Employed

March 400 225 90,000 99,000

April 500 200 100,000 100,000
May 600 250 150,000 135,000

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PRODUCTIVITY

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PRODUCTIVITY
Effect of Productivity in the Society

• Employer's Gains
• Labor’s Gains
• Community Gains
• Government Gains

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Factors affecting
Productivity

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questions
1. _________ provides cost data to the client and others who are managing overall project costs.
2. _________ involves the application of techniques that convert quantified technical and
programmatic information about an asset or project into finance and resource information.
3. _________ covers the full life cycle of a project from the initial planning phase towards
measuring the actual cost performance and project completion.
4. Cost accounts used from the chart of accounts must also ________ the cost accounting process.
5. _________ to the cost baseline need to be recorded and the expected final costs are
continuously forecasted.

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questions
6. It integrates performance aspects of quality, efficiency and effectiveness
7. Effects of productivity in the society includes employer’s gains, labor’s gains, community gains,
and ________.
8. It is the conversion process that converts input into finished product that have a value for the
customer and consumers.
9. This are the two most common and popular term used in manufacturing sector.
10. It is a planned and systematic activity that is used to assess and quantify the status of
productivity at a specific period of time.

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school files

google meet

random

Log off Turn Off Computer

Start 11:57 PM
THANK YOU FOR LIST
 1.__
_________
_ _
_pr
ovi
descostdat
atot
hecl
i
entandot
her
swhoar
emanagi
ngov
eral
l
pr
ojectcosts.

Ans:Engi
neer
ingCont
ract
or

2.___
_______
___
_invol
vestheappl
i
cati
onoftechni
questhatconv
ertquant
if
iedtechni
cal
andprogr
ammat i
cinf
ormati
onaboutanassetorproj
ecti
ntofi
nanceandresource
i
nformati
on.

Ans:CostEst
imat
ing

3.¬___
______
_____cov
erstheful
lli
fecy
cleofaproj
ectf
rom thei
nit
ialpl
anni
ngphase
towardsmeasuri
ngtheactual
costperf
ormanceandproj
ectcompleti
on.

Ans:CostManagement

4.Costaccount
susedf
rom t
hechar
tofaccount
smustal
so_
___
___
_thecostaccount
ing
pr
ocess.

Ans:suppor
t

5.__
___
______
____
_tothecostbasel
i
neneedt
ober
ecor
dedandt
heexpect
edf
inal
cost
s
ar
econti
nuousl
yfor
ecast
ed.

Ans:Al
lchanges

6.I
tint
egr
atesper
for
manceaspect
sofqual
i
ty,
eff
ici
encyandef
fect
iveness

Ans:Pr
oduct
ivi
ty

7.Eff
ect
sofproducti
vi
tyint
hesoci
etyi
ncl
udesempl
oyer
’sgai
ns,
labor
’sgai
ns,
communi
ty
gai
ns,and_
______
____.

Ans:Gov
ernmentgai
n

8.I
tistheconver
sionpr
ocessthatconv
ert
sinputi
ntof
ini
shedpr
oductt
hathav
eav
alue
f
orthecustomerandconsumers.

Ans.Pr
oduct
ion

9.Thi
sar
ethet
womostcommonandpopul
art
erm usedi
nmanuf
act
uri
ngsect
or.

Ans.Pr
oduct
ionandpr
oduct
ivi
ty/Pr
oduct
ivi
tyandpr
oduct
ion

10.
Iti
saplannedandsy st
ematicact
ivi
tyt
hati
susedt
oassessandquant
if
ythest
atusof
product
ivi
tyataspecif
icper
iodofti
me.

Ans.Pr
oduct
ivi
tymanagement
ORGANIZATIONAL
MODEL
2BSCE-C - GROUP 2
 Table of Contents

Organization/ Organizational
Organizational Charts Structures
- Functional
- Divisional
- Matrix
- Hybrid
Elements of Organizational
Structures
Organization
- Division of Labor Culture
- Departmentalization Characteristics of
- Span of Control Organization Culture
- Delegation of Authority
 Organization

● Any collection of persons, materials, procedures, ideas or facts

managed and ordered that in each case the combination of parts
makes a meaningful whole that at achieving organization
objectives.
● In others words the process of organization implies the
arrangement of human and nonhuman resources to make a
meaningful whole that accomplishes organizational objectives
● Every employee must be informed of what is expected of him
(responsibility) and what is within his power (authorities).
 Organization
Managers decide how to
● Divide the overall task into successively smaller jobs
● Decide the bases by which to groups the jobs
● The appropriate size of the group reporting to each superior
● Distribute authority among the jobs

After deciding on the major opening units and departments, the

required resources must be
acquired and fitted in the right place.
Organizational
Charts
Formal relationship between
people in various positions in
the organization

Shown how various jobs and

departments are
linked together to make achieve
coordinated system

Main channels of
communication
ORGANIZATION

STRUCTURE
 Organization
Structure

• It designates formal reporting relationships, including the

number of levels in the hierarchy and the span of control of
managers and supervisors.
• It identifies the grouping together of individuals into
departments and departments into the total organization.
• It also includes the design of systems to ensure effective
communication, coordination, and integration of effort
across departments.
Elements of
Organization Structure

Division of Labor Span of Control

occurs in three (3) number of individual
different ways directly reporting to next
level

Departmentalizatio Delegation of Authority

n
process of grouping has three (3) forms of
activities into units authority
Division of Labor

• It is the process of dividing works into relatively specialized jobs to

achieve advantages of specialization
• Subdivision of works into separate jobs assigned to different people

• Division of Labor occurs inThree Different Ways

 Personal Specialities
 Natural sequence of work
 Vertical Plane

• Coordination means assembling and synchronizing work efforts so

that they can function harmoniously to attain organizational
objectives
 Departmentalization
• It is the (horizontal) differentiation of the organization in
department. Departments are organizational units that share a
common supervisor and common resources that are jointly
responsible for performance, and tend to identify and
collaborate with one another.

• The process of grouping activities into units for purposes of

administration.

• It can be grouping by services, location, or by geographic area.

Departmentalization
Span of Control
● Numbers of individuals who reports to a specific manager

● Number of people directly reporting to the next level

Span of Control
Delegation of Authority

• Process of distributing authority downward in an organization

• Managers decide how much authority should be delegated to

each job and to each jobholder

• Three Forms of Authority

 Line Authority
 Staff Authority
 Committee and Team Authority
Centralization and Decentralization
● Refers to the level at which most of the operating decisions
will be made.

● The greater the number of decisions made by the lower down

management hierarchy, the greater the degree of
decentralization.

● Generally speaking, it is advisable that the decisions

concerning day-to-day matters should be pushed down the
organization structure and not be handled by top management.
 Advantages of
Decentralization
• Quick action regarding specific problems.
• Facilitates adaptation of decisions according to local needs
• relieves top management from involvement in routine
decisions thus, saving time and energy.
• Increases flexibilty of action as junior staff are allowed to
make prompt decisions without having to wait for approval
from the management
• Effective in developing the junior staff to hold top
management positions
 Advantages of
Centralization
• Uniformity of policy and actions
• Enables maximum use of the skills and knowledge of centralized
staff
• Fosters better control of the organizations activities
• Enables the use of not highly skilled subordinates since every
little detail is set by the top management
• Unity of Command - the classical principle of command
suggested that each individual in the organization should be
directly responsible to, and recieve orders from, only ONE
supervisor.
 Dimensions of Structure

• Formalization - the extent to which expectations regarding the

means and ends of work are specified, written, and enforced

• Centralization - the location of decision-making authority in the

hierarchy

• Complexity - the direct outgrowth of dividing work and creating

departments
 Mechanistic vs. Organic Structures

Mechanistic Organic
- high formalization - low formalization
- narrow span of control - wide span of control
- high centralization - low centralization
 Mechanistic vs. Organic Structures Designs
Mechanistic
- work efforts centrally
coordinated
- standard interactions in
well-defined jobs
- limited information-
processing capability
- best at simple and
repititive tasks
- good for production
efficiency
Organic
- work efforts highly
interdependent
- intense interactions in self-
defined jobs
- expanded information-
processing capability
- more effective at complex
and unique tasks
- good for innovation and
creativity
Mechanistic vs. Organic Structures Model
 Functional
Organization
Structures

Organizes employee
around skills or other
resources (marketing,
production)

Create subordinate goals

Functional Organization Structures
• Benefits
 Supports professional identity and career paths
 Permits greater specialization
 Easier supervision- similar issues
 Creates an economy of scale

• Limitations
 More emphasis on subunit that organizational goals; failure
to develop broad understanding of the business
 Higher dysfunctional confllict
 Poorer coordination
 Divisional
Organization
Structures

Organizes employee
around outputs, clients,
or geographic areas
 Divisional
Organization
Structures
• Benefits
 Building block structure
 Better coordination in diverse markets

• Limitations
 Duplication and inefficient use of resources
 Specializations are dispersed, creating silos of
knowledge
 Matrix
Organization
Structures

Employees are
temporarily assigned to a
specific project team and
have a permanent
functional unit
 Matrix Organization
Structures
● Attempts to maximize the strengths and minimize the
weaknesses of both the functional and product bases

● Superimpose a horizontal structure of authority,

influence, and communication on the vertical
structure

● Facilitates the utilization of highly specialized staff

and equipment
 Hybrid
Organization
Structures

Parts are combined to

maintain balance of
power and effectiveness
across functional,
product, geographic, and
client focused units
 Organizational Culture

• A system of shared values, assumptions, beliefs, and

norms that unite the members of an organization

• Reflects employees’ views about “the way things are

done”

• The culture specific to each firm affects how

employees feel and act, and the type of employee
hired and retained by the company
 Characterisitcs of
Organization Culture

it is distinctive it promotes stable

it is based on values
certain norms

it shapes philosophy
and rules
it leads to common
behavioral aspects
it strength varies
HUMAN RESOURCE
MANAGEMENT
Huthaifa Khalil
Human Resource Management
●
Human Resource
• The science and the practice that deals with the nature of
the employment relationship and all of the decisions,
actions and issues that relate to this relationship.
• The process of attracting, developing and maintaining a
talented and energetic workforce to support
organizational mission, objectives and strategies.
• It involves an organization’s acquisition, development and
utilization of employees, well as the employee relationship
to an organization and its performance.
Human Resource Management

●
HRM Includes:
• Equal Employment Opportunity
• Health and Safety
• Industrial Relations
• Recruitment / Selection
• Induction / Orientation
• Training and Professional Development
• Performance Appraisal and Management
• Quality of Work Life
Human Resource Management
●
Principle of HRM
• Strategic Integration
 Treat all labour management processes in a strategic fashion by
integrating them with the broader business.

• Oraganisational Flexibility
 Highly skilled knowledge workers with full time jobs.

• Commitment
 Through changing the organisation’s culture.

• Quality
 Quality work, quality workers, quality products and services.
Human Resource Management
●
HRM Activities
 Job analysis defines a job in terms of specific tasks abd
respomsibilities and identities, skills and qualifications needed to
perform it successfully.
 Human resource or employment planning is the process by
which an organisation attempts to ensure that it has the right
number of qualified people in the right jobs at the right time.
 Employee recruitment is the process of seeking and attracting
a pool of applicants from which qualified candidate for the job
vacancies within an organisation can be selected.
Human Resource Management
●
HRM Activities
 Employee selection involves chosing from the available
candidates the individual predicted to be the most likely to
perform successfully in the job.
 Performance appraisal is concerned with determining how
well employees are doing their jobs, communicating that
information to the employees and establishing a plan for
performance improvement.
 Training and development activities help employees learn
how to perform their jobs, improve their performance and prepare
for more senior positions.
Human Resource Management
●
HRM Activities

 Career planning and development activities benefit both

employees (by identifying employee career goals, possible future
job opportunities and personal improvement requirement) and
ton (by ensuring that qualified employees are available when
needed).
 Employee motivation is vital to the success of any organisation.
Highly motivated employees tend to be more productive and
have lower rates of absenteeism and turnover.
Human Resource Management
●
Human Resource Development
• A set of systematic and planned activities designed by an
organization to provide its members with the necessary
skills to meet current and future job demands
Human Resource Management
●
Training and Development
•
Training
 Improving the knowledge, skills and attitudes of
employees for the short-term, particularly to a specific
job or task.
•
Development
 Preparing for future responsibilities, while increasing
the capacity to perform at a current job.
Human Resource Management
●
The Tangible vs Intangible Assets
• The tangible assets of the firm are visible and quantified,
can be easily duplicated, depreciate with use
 Ex: manufacturing plant, equipment, building and
other physical infrastructure.
• The Intangible assests are invisible, difficult to quantify,
miust be develop over time, appreciate with purposely use.
 Ex: Technological know-how, customer loyalty,
branding, business processes.
Human Resource Management
●
Firm Capital
• Human Capital
 Knowledge, skills, abilities of individuals
• Social Capital
 Relationships in social networks
 Structural, cognitive, relational dimensions
• Intellectual capacity
 Knowledge and knowing capability of social collectivities
 Procedural/declarative; tacit/explicit; individual/social
Human Resource Management
●
Human Capital
• The human capital of an organization consists of the
people who work for it and on whom the success of the
business depends.
• Human capital represents the human factor in the
organization: the combined ontelligence, skills and
expertise that give the organization the distinctive
character.
• The human elements are those that are capable of
learning, changing, innovatin
Human Resource Management
●
Knowledge Economy
• Encompasses all jobs, companies and industries in which
the knowledge and capabilities of people, rather than the
capabilities of machines or technologies, determine
competitive advantage.
● Knowledge Workers
• Knowledge workers have hig degrees of expertise,
educationns or experience and the primary purpose of their
jobs involves the creation, distribution of application of
knowledge.
Human Resource Management

●
Challenges for HR
•
Competing in the Global Economy
 New technologies
 Need for more skilled and educated workers
 Cultural sensitivity required
 Team involvement
 Better communications skills
Human Resource Management

●
Challenges for HR
•
Need for Learning
 Organizations change
 Technologies change
 Products change
 Processes change
 PEOPLE must change
Human Resource Management
● Reward and Recognition System Management
• By valuating and recognizing people, you harnes the power
of motivation, which is the single most powerful strategy
used to promote performance and positive behaviors
Human Resource Management
● Reward and Recognition System Management

• A reward is given by an “organization” to value something

it already has or it ascribes a value to a particular job/
event.
Reward Monetory
• A recognition is just an expression of feeling. It happens
when a person is impacted by another person and he/she
expresses it openly.
Recognition Fellings
Human Resource Management
●
Human Resource Analysis
• To identify the size, skills and structure surrounding
current employees
• To identify future human resource needs of the
organization
• Obtain some basic information on the people
• Explore in detail the role and contribution of the human
resources management function in the development of
strategy.
Human Resource Management
●
Coaching and Mentoring
• Mentoring
 Concerned with supporting practitioners whilst they make a
significant career transition.
 Mentoring in intended to be supportive of the individual and occurs
‘at need’.

• Coaching
 Used to support the process of reviewing established or emerging
practices. It is focused on innovation, change or specific skills.
 Conceived as a more structured learning process aimed at explicit
professional development in an agreed area of performance.
Human Resource Management
●
Competencies
• A collective of characteristics (i.e. skills, knowledge and
self-concept, traits, behavior, motivation, etc.), that
enables someone to successfully complete a given task.

Skills Knowledge

Self-concept
 Thanks!
2BSCE-C
GROUP 2

CREDITS: This presentation template was created by

Slidesgo, including icons by Flaticon, and infographics &
images by Freepik.
PROJECT MANAGEMENT

"At its most fundamental,

project management
is about people getting things done."

- Dr Martin Barnes, APM President 2003-2012

 What is a Project?

A project is a temporary endeavor undertaken to create a unique product, service,

or result. The temporary nature of projects indicates that a project has a definite beginning

and end. A project is made to achieve planned objectives, which could be defined in terms

of outputs, outcomes or benefits. A project is usually deemed to be a success if it achieves

the objectives according to their acceptance criteria, within an agreed timescale and

budget. It is a one-shot, time-limited, goal-oriented undertaking, requiring the commitment

of different skills and resources.

Project Performance Dimensions

Three major dimensions that define the project performance are scope, time, and

cost. These parameters are interrelated and interactive. The relationship generally

represented as an equilateral triangle. The relationship is shown in figure 1.

Figure 1. Project performance dimensions

 It is evident that any change in any one of dimensions would affect the other. For

example, if the scope is enlarged, project would require more time for completion and the

cost would also go up. If time is reduced the scope and cost would also be required to be

reduced. Similarly any change in cost would be reflected in scope and time. Successful

completion of the project would require accomplishment of specified goals within

scheduled time and budget. The performance of a project is measured by the degree

to which these three parameters (scope, time and cost) are achieved.

Example of a project:

 Building an apartment complex

There are hundred of thousands in the world, but they were built by different people, at

different times, with different resources and with different designs.

A project can create:

 A product that can be either a component of another item, an enhancement of an

item, or an end item in itself;

 A service or a capability to perform a service;

 An improvement in the existing product or service lines; or

 A result, such as an outcome or document

Projects include, but are not limited to:

 Developing a new product, service, or result;

 Effecting a change in the structure, processes, staffing, or style of an organization;

 Constructing a building, industrial plant, or infrastructure; or

 Implementing, improving, or enhancing existing business processes, procedures,

and products.

Every project creates a unique product, service, or result. The outcome of the

project may be tangible or intangible. Although repetitive elements may be present in

some project deliverables and activities, this repetition does not change the fundamental,

unique characteristics of the project work. Most projects are undertaken to create a lasting

outcome. For example, a project to build a national monument will create a result

expected to last for centuries. Projects can also have social, economic, and

environmental impacts that far outlive the projects themselves.

Project Life Cycle

 Defining

Is the first phase of the a project life cycle and its where the project requested &

approved and Feasibility Analysis. It involves:

o Set main goals, the specification in general

o Define tasks, and responsibilities

o Assigning project manager

In the defining stage we have to make an initial estimation for time and cost.

Defining stage means that the project has been formally started.

 Planning

The primary purpose of planning is to establish a set of direction (in enough detail)

to tell the project team exactly what must be done, It tells everyone involved where you

are going and how you are going to get there. It consists of:

o Scheduling: identify the start, and schedule for each phase for the whole

project.

o Budgeting: estimate the cost of each phase/task for the whole project.

o Resources: define resources and allocate them.

o Plan for risk: Identify source of risk, Set each risk probability and impact,

and minimize, avoid or accept each risk.

o Staffing
  Executing

We’ll put all the plans into action. Most of the project resources are utilized and

most of the budget is spent. Executing activities:

o Status reports, Quality assurance, Forecasts

 Delivering

Closing down: delivering before normal end. Delivering activities:

o Train customers, Transfer documents, Release resources, Release staff,

Lessons learned

o Evaluation of the project and team performance

o Closing phase of the project life cycle

 Project Management

Project management is the application of processes, methods, skills, knowledge

and experience to achieve specific project objectives according to the project acceptance

criteria within agreed parameters. Project management has final deliverables that are

constrained to a finite timescale and budget.

A key factor that distinguishes project management from just 'management' is that

it has this final deliverable and a finite timespan, unlike management which is an ongoing

process. Because of this a project professional needs a wide range of skills; often

technical skills, and certainly people management skills and good business awareness.

Project management is accomplished through the appropriate application and

integration of the project management processes, which are categorized into five Process

Groups.

Define project Project scope Budget Project Goals Retrospective

goals and budget management Quality of meeting
Create project Deadlines Resource deliverables Project
brief Team Roles planning Team closure
Communication Status reports performance report
plan
Milestones
 Why do we use project management?

Project management is aimed at producing an end product that will effect some

change for the benefit of the organisation that instigated the project. It is the initiation,

planning and control of a range of tasks required to deliver this end product. Projects that

require formal management are those that:

 produce something new or altered, tangible or intangible;

 have a finite timespan: a definite start and end;

 are likely to be complex in terms of work or groups involved;

 require the management of change;

 require the management of risks.

Investment in effective project management will have a number of benefits, such as:

 providing a greater likelihood of achieving the desired result;

 ensuring efficient and best value use of resources;

 satisfying the differing needs of the project’s stakeholders.

When do we use project management?

Projects require a team of people to come together temporarily to focus on specific

project objectives. As a result, effective teamwork is central to successful projects. Project

management is concerned with managing discrete packages of work to achieve specific

objectives. The way the work is managed depends upon a wide variety of factors.
Objectives of a project may be expressed in terms of:

 outputs (such as a new HQ building);

 outcomes (such as staff being relocated from multiple locations to the new HQ);

 benefits (such as reduced travel and facilities management costs);

 strategic objectives (such as doubling the organisation’s share price in three

years).

Who uses project management?

Anyone and everyone manages projects, even if they aren’t formally called a

‘project manager’. Ever organised an event? That’s a project you managed with a team

of people, and project management is life skill for all. More formally, projects crop up in

all industries and business:

 Transport and Infrastructure

 IT

 Product manufacture

 Building and Construction

 Finance and Law

Organizational Project Management

Projects have defined objectives. Scope is progressively

Scope
elaborated throughout the project life cycle.

Project managers expect change and implement processes to

Change
keep change managed and controlled.

Project managers progressively elaborate high-level information

Planning
into detailed plans throughout the project life cycle.

Project managers manage the project team to meet the project

Management
objectives.

Success is measured by product and project quality, timeliness,

Success
budget compliance, and degree of customer satisfaction.

Project managers monitor and control the work of producing

Monitoring the products, services, or results that the project was undertaken

to produce.
Project Management Roles:

 Project Sponsor

The person or group providing resourses for the project.

 Project Management Team

Those on the team directly responsible for the project management

activities.

 Project Team

The group performing the tasks to meet the end goal.

 Project Influencer

All those outside the above roles that can affect the project in some way.

What makes a Great Project Manager?

 Clearly knows the goals of each phase of the project and how transition smoothly

between them, with general phases being:

Initiating

Planning

Executing

Monitoring and controlling

Closing

 Has a great knowledge and experience in managing:

Project integration

Project scope

Project time
 Project cost

Project quality

Project human resources

Project communication

Project risk

Project procurement

Project stakeholders

Managing a project typically includes, but is not limited to:

 Identifying requirements;

 Addressing the various needs, concerns, and expectations of the stakeholders

in planning and executing the project;

 Setting up, maintaining, and carrying out communications among stakeholders

that are active, effective, and collaborative in nature;

 Managing stakeholders towards meeting project requirements and creating

project deliverables;

 Balancing the competing project constraints, which include, but are not limited

to: Scope, Quality, Schedule, Budget, Resources, and Risks.

The specific project characteristics and circumstances can influence the

constraints on which the project management team needs to focus. The relationship

among these factors is such that if any one factor changes, at least one other factor is

likely to be affected.
 For example, if the schedule is shortened, often the budget needs to be increased

to add additional resources to complete the same amount of work in less time. If a budget

increase is not possible, the scope or targeted quality may be reduced to deliver the

project’s end result in less time within the same budget amount. The project team needs

to be able to assess the situation, balance the demands, and maintain proactive

communication with stakeholders in order to deliver a successful project. Due to the

potential for change, the development of the project management plan is an iterative

activity (having repitition of processes to generate the target outcome) and is

progressively elaborated throughout the project’s life cycle.

Project Constraints:

Project constraints are limiting factors for your project that can impact quality,

delivery, and overall project success. These constraints are interrelated, so a strain on

one of the constraints will affect one or more of the other constraints. The image below

shows six constraints of a project.

1. Quality – Shows how close the outcome matches the expectations.

Project’s quality constraint example:

 If you are unable to meet a sudden rise in cost, the project scope may shrink and

the quality may decline. What is scope creep?

 If the project scope extends due to scope
creep, you may not have the time or
resources to deliver the promised quality.
Scope creep is how a project’s features,
requests, and requirements increase
from its initial scope over the course of
the project life cycle.

 If delivery time is cut or rushed, project costs may rise and quality will very likely

decline.

For example, when building a house, the quality requirements of the project

can refer to the building materials that will be used, such as brick versus vinyl

siding or carpet versus hand-scraped hardwood flooring.

2. Time/Schedule – Shows when should the output be delivered or done. This is the

approximate time needed to bring the project to completion. It includes specific

deadlines for each phase, as well as a final date for completion. As a project

manager, your task is to estimate project time as accurately as possible, which

requires a blend of research and experience.

3. Cost/Budget – Shows how much money is available to achieve the outcome. Cost

(or budget) is simply the amount of money that can be invested in a particular

activity to achieve the desired outcome. As with time constraints, budget estimates

also need to be presented in a range. The final cost of a project includes money

for materials, labor, quality control, contractors, and extra funds for unexpected

costs that may arise along the way.

4. Scope – Shows what exactly is the expected outcome. Since a project scope is

not an estimate but a guaranteed set of deliverables, it’s difficult to imagine

creating a range for this project constraint. However, you can consider that

stakeholders may be invested in scope risk and scope tolerance ranges.

For example, when building a house, you might determine the scope of the

project includes building a three-bedroom, two-bathroom home of approximately

2,500 heated square feet. It should also be indicated what the scope of work does

not include, such as an indoor pool or landscaping.

5. Resources – Shows who and what is required to do the work. This includes both

physical and team resources. This constraint is typically associated with cost, as

the amount of funding for a project usually determines the experience level and

the number of resources available. Additional resource constraints also deal with

availability and accessibility.

6. Risks – Shows what can go wrong and what can be done about it. Risks are

associated with every project, and they may benefit the project or even derail it off

the course. As a project manager, you must foresee them at every step of the

project and plan to combat the same. It can involve simulating various scenarios

to find the best possible outcome within existing constraints or formulating

contingency plans.

Risks are generally of two types, namely positive and negative. For

example, let’s assume a new technology can speed up your project and enable

you to finish the project on time. Seizing such a unique opportunity will naturally

involve risk, but at the same time, it will have a positive effect on your project. On
 the other hand, the sudden attrition of critical resources due to stress is a negative

risk and will hamper the project delivery. You must have a backup plan in place for

a situation like this.

Some examples of how constraints are related:

 If necessary resources are not available, time to deliver will increase. This may

also increase project cost, because alternate resources if available, may be more

expensive than planned.

 If your team finds that quality of deliverable is going bad, more resources may be

required. This increases the cost (additional resources) and effort to fix the faulty

deliverable. This will also increase the time to deliver.

 If scope creep happens on the project, it will result in increased time, cost,

resources and potentially reduced quality. And thus increased risk on delivery.

How to effectively deal with project constraints?

Managing 6 constraints is as much of an art as science. They will test the mettle

of project manager.

It is important to understand that project constraints can never be eliminated and

each project will have a different set of constraints. The only way to properly manage

project constraints is by transparency, implementation of project management best

practices, effective task management software, and maintaining control over your project.

 Transparency is often considered a key factor for successfully managing project

constraints. With transparency, everyone involved in the process knows about the

priorities and objectives of the project.

 In addition to helping in managing project constraints, project transparency can

help project managers by enhancing the productivity of their team.

 Implementing project management best practices and dynamic management

strategies in your projects is another way of dealing with constraints and

completing the project successfully.

 Creating a detailed work breakdown structure, measuring performance throughout

the project life cycle, keeping the team members engaged, and having an effective

control strategy are some of the ways that can improve your performance despite

multiple constraints.
Project Management Tools:

 Precedence Diagramming Method (PDM)

PDM is a method of constructing a project schedule network diagram that

uses boxes or rectangles, referred to as nodes, to represent activities and

connects them with arrows that show the dependencies

Using labeled shapes and arrows to identify and document the relationship

and flow among scheduled activities

Helps identify the minimum amount of time that the project can be

completed in (Critical Path)

PDM includes four types of dependencies or precedence relationships:

Finish-to-Start. The initiation of the successor activity depends upon the

completion of the predecessor activity.

Finish-to-Finish. The completion of the successor activity depends upon the

completion of the predecessor activity.

Start-to-Start. The initiation of the successor activity depends upon the

initiation of the predecessor activity.

 Start-to-Finish. The completion of the successor activity depends upon the

initiation of the predecessor activity.

In PDM, finish-to-start is the most commonly used type of precedence relationship.

Start-to-finish relationships are rarely used.

 Critical Path Method

A mathematically based algorithm for scheduling a set of project activities.

It is an important tool for effective project management

The essential technique for using CPM is to construct, a model of the project

that includes the following:

 A list of all activities required to complete the project

 The time (duration) that each activity will take to completion

 The dependencies between the activities.

CPM calculates:

 The longest path of planned activities to the end of the project

 The earliest and latest that each activity can start and finish without

making the project longer

 Gantt Chart

A bar chart used to track the length in time of different activities, with the

start and end of each bar corresponding to a start date and end date on the

timeline.
Prepared by: Group 4 reporters
1. Tabieros, Franz Mathew

2. Taladro, Jonabel

3. Talusob, Diana

4. Tormis, Leah Mea

5. Tuburan, Anton Roland

6. Tungao, Mon Adrian

7. Valderama, Angel Mae

8. Villagonzalo, Ailyn

9. Yanson, Charles Stephen

References:
Association for Project Management. What is project management?. Retrieved from
https://www.apm.org.uk/resources/what-is-project-management/
Morton, M. (2017). 5 Project Management Steps: Process Group Project Management.
Retrieved from https://www.teamgantt.com/blog/5-crucial-project-management-
phases
Project Management Institute. (2013). A Guide to the Project Management Body of
Knowledge (PMBOK® Guide) – Fifth Edition. Retrieved from
https://repository.dinus.ac.id/docs/ajar/PMBOKGuide_5th_Ed.pdf
Shenoy, S. (2013). The 6 Project Constraints: What Every Project Manager Should Plan
For. Retrieved from https://www.pmexamsmartnotes.com/the-6-project-
constraints/
PROJECT MANAGEMENT
"At its most fundamental,
project management
is about people getting things done."
 CONTENTS

02 04
Project Project
01 Management
03 Management
tools
Project Project
Constraints
01

Project
 What is a Project

A project is a temporary endeavor undertaken to create

a unique product, service, or result.
It is a one-shot, time-limited, goal-oriented undertaking,
requiring the commitment of different skills and
resources.

A project is made to achieve planned objectives, which could be defined in terms of outputs,
outcomes or benefits. A project is usually deemed to be a success if it achieves the objectives
according to their acceptance criteria, within an agreed timescale and budget.
 Project Performance
Dimensions

Three major dimensions that define the project performance

are scope, time, and cost. These parameters are interrelated
and interactive.

It is evident that any change in any one of dimensions

would affect the other.

The performance of a project is measured by the

degree to which these three parameters (scope,
time and cost) are achieved.
 Example of a Project
Building an apartment complex

There are hundred of thousands in the world, but they were built by different people,
at different times, with different resources and with different designs.
 A Project can create :

A product that can A service or a An improvement in A result, such as an

be either a capability to perform the existing product outcome or
component of a service or service lines document
another item, an
enhancement of an
item, or an end item
in itself
 Projects include, but are not limited to:

Developing a new product,

service, or result
Effecting a change in the structure,
processes, staffing, or style of an

Constructing a building, organization

industrial plant, or
infrastructure Implementing, improving, or
enhancing existing business
processes, procedures, and
products
 Every project creates a unique product, service, or result.
The outcome of the project may be tangible or
intangible.

Most projects are undertaken to create a lasting outcome. For example, a project to build a
national monument will create a result expected to last for centuries. Projects can also have
social, economic, and environmental impacts that far outlive the projects themselves.
 Project Life Cycle

Defining
• Set main goals, the specification in general

Defining stage • Define tasks, and responsibilities

means that the • Assigning project manager
project has been
formally started.
 Project Life Cycle

Planning • Scheduling: identify the start, and schedule for each

phase for the whole project.
The primary • Budgeting: estimate the cost of each phase/task for the
purpose of whole project.
planning is to
• Resources: define resources and allocate them.
establish a set of
• Plan for risk: Identify source of risk, Set each risk
direction to tell the
probability and impact, and minimize, avoid or accept
project team
each risk.
exactly what must
• Staffing
be done
 Project Life Cycle

Executing
Executing Activities:
• Status reports
We’ll put all the
• Quality assurance
plans into action.
• Forecasts
 Project Life Cycle

Delivering
Closing down: delivering before normal end. Delivering
activities:
Closing phase of
• Evaluation of the project and team performance
the project life
cycle
Project Life Cycle
02

Project
Management
 What is Project Management

Project management is the application of processes,

methods, skills, knowledge and experience to achieve
specific project objectives according to the project
acceptance criteria within agreed parameters.

Project management has final deliverables that are constrained to a finite timescale and
budget.
 A key factor that distinguishes project management from just
'management'

Project Management
has this final deliverable and a finite
timespan

Management
an ongoing and continuous process
 Project management is accomplished through the appropriate application and
integration of the project management processes, which are categorized into five
Process Groups.

Define project Project scope and Budget Project Goals Retrospective

goals budget management Quality of meeting
Create project Deadlines Resource deliverables Project closure
brief Team Roles planning Team report
Communication Status reports performance
plan
Milestones
 Why do we use project management?

Project management is aimed at producing an end product that will effect some
change for the benefit of the organisation that instigated the project. Projects that
require formal management are those that:

• produce something new or altered, tangible or intangible;

• have a finite timespan: a definite start and end;
• are likely to be complex in terms of work or groups involved;
• require the management of change;
• require the management of risks.
Investment in effective project management will
have a number of benefits, such as:

 providing a greater likelihood of achieving the

desired result

 ensuring efficient and best value use of

resources;

 satisfying the differing needs of the project’s

stakeholders.
 When do we use project management?

Projects require a team of people to come together temporarily to focus on

specific project objectives. As a result, effective teamwork is central to
successful projects. Project management is concerned with managing
discrete packages of work to achieve specific objectives.
 Objectives of a project may be expressed in terms of:

Outcomes
Outputs such as staff being relocated
Like new HQ buildings from multiple locations to the
new HQ

strategic objectives
Benefits
such as doubling the
such as reduced travel
organisation’s share
and facilities
price in three years
management costs
 Who uses project management?

Anyone and everyone manages projects, even if they aren’t formally called a
‘project manager’. More formally, projects crop up in all industries and
business:

• Transport and Infrastructure

• IT
• Product manufacture
• Building and Construction
• Finance and Law
 Organizational project management?
Scope Projects have defined objectives. Scope is progressively elaborated throughout the project life cycle.

Change Project managers expect change and implement processes to keep change managed and controlled.

Project managers progressively elaborate high-level information into detailed plans throughout the
Planning
project life cycle.

Management Project managers manage the project team to meet the project objectives.

Success is measured by product and project quality, timeliness, budget compliance, and degree of
Success
customer satisfaction.

Project managers monitor and control the work of producing the products, services, or results that the
Monitoring
project was undertaken to produce.
 Project Management Roles:

Project Sponsor
The person or group providing resourses for the project.

Project Management Team

Those on the team directly responsible for the project management
activities.

Project Team
The group performing the tasks to meet the end goal.

Project Influencer
All those outside the above roles that can affect the project in some way.
What makes a Great Project Manager?

Clearly knows the goals of each phase of the project

and how transition smoothly between them.

• Initiating • Monitoring and controlling

• Planning • Closing
• Executing
A Project Manager has a great knowledge and experience in managing:

Project Integration Project Quality

Project risks Project Scope

Project Cost Project Time

Project procurement Project stakeholders

Project Human resources Project Communication

 Managing a project typically includes, but is not limited to:

• Identifying requirements;
• Addressing the various needs, concerns, and expectations of the stakeholders in
planning and executing the project;
• Setting up, maintaining, and carrying out communications among stakeholders that are
active, effective, and collaborative in nature;
• Managing stakeholders towards meeting project requirements and creating project
deliverables;
• Balancing the competing project constraints, which include, but are not limited to: Scope,
Quality, Schedule, Budget, Resources, and Risks.
 Managing a project typically includes, but is not limited to:

The specific project characteristics and circumstances can influence the constraints on
which the project management team needs to focus. The relationship among these factors
is such that if any one factor changes, at least one other factor is likely to be affected.
03

Project
Constraints
 What is Project Constraints?

Project constraints are limiting factors for your project that can impact
quality, delivery, and overall project success. These constraints are
interrelated, so a strain on one of the constraints will affect one or more of
the other constraints. The image below shows six constraints of a project.
 Quality
Project’s quality constraint example:

• If you are unable to meet a sudden rise in cost, the project

scope may shrink and the quality may decline

• If the project scope extends due to scope creep, you may

not have the time or resources to deliver the promised
quality
• If delivery time is cut or rushed, project costs may rise and
quality will very likely decline.
 Time/Schedule

This is the approximate time needed to bring the

project to completion. It includes specific
deadlines for each phase, as well as a final date
for completion. As a project manager, your task is
to estimate project time as accurately as
possible, which requires a blend of research and
experience.
 Cost/Budget

Cost (or budget) is simply the amount of money that can be invested in a particular
activity to achieve the desired outcome.As with time constraints, budget estimates
alsoneed to be presented in a range. The final cost of a

project includes money for materials,

labor, quality control, contractors, and
extra funds for unexpected costs that
may arise along the way.
 Scope

Since a project scope is not an estimate but a guaranteed set of deliverables, it’s
difficult to imagine creating a range for this project constraint. However, you can
consider that stakeholders may be invested in scope risk and scope tolerance ranges.

For example, when building a house, you might determine the scope of the project
includes building a three-bedroom, two-bathroom home of approximately 2,500 heated
square feet. It should also be indicated what the scope of work does not include, such as
an indoor pool or landscaping.
 Resources

This includes both physical and team resources. This constraint is typically associated
with cost, as the amount of funding for a project usually determines the experience level
and the number of resources available. Additional resource constraints also deal with
availability and accessibility.
 Risks
Risks are associated with every project, and they may benefit the project or even derail it
off the course. It generally have two types, namely positive and negative. For example,
let’s assume a new technology can speed up your project and enable you to finish the
project on time. Seizing such a unique opportunity will naturally involve risk, but at the
same time, it will have a positive effect on your project. On the other hand, the sudden
attrition of critical resources due to stress is a negative risk and will hamper the project
delivery.
Some examples of how constraints are related:

Necessary Time to deliver will

resources are not increase
available
Some examples of how constraints are related:

Quality of More resources

deliverable is may be required
going bad
 Some examples of how constraints are related:

If scope creep Increase time to Increase the More resources Potentially

happens deliver cost may be required reduced quality
 How to effectively deal with project constraints?

Project
Constraints Managing 6 constraints is as much of an art as science. They will
test the mettle of project manager. It is important to understand
that project constraints can never be eliminated and each project
will have a different set of constraints.

The only way to properly manage project constraints is by transparency, implementation of

project management best practices, effective task management software, and maintaining
control over your project.
 Dealing with Project Constraints

• Transparency is often considered a key factor for successfully managing project

constraints. Everyone involved in the process should know about the priorities and
objectives of the project.
• Project transparency can also helps project managers by enhancing the productivity
of their team.
 Dealing with Project Constraints

• Implementing project management best practices and dynamic management

strategies in your projects is another way of dealing with constraints and completing
the project successfully.
• Creating a detailed work breakdown structure, measuring performance throughout
the project life cycle, keeping the team members engaged, and having an effective
control strategy are some of the ways that can improve your performance despite
multiple constraints.
04

Project
Management
Tools
 Project Management Tools

Precedence Diagramming Method (PDM)

 Using labeled shapes and arrows to identify and document the relationship
and flow among scheduled activities
 Helps identify the minimum amount of time that the project can be
completed in (Critical Path)
 Project Management Tools
PDM includes four types of dependencies or precedence relationships
 Finish-to-Start. The initiation of the successor activity
depends upon the completion of the predecessor activity.
 Finish-to-Finish. The completion of the successor activity
depends upon the completion of the predecessor activity.
 Start-to-Start. The initiation of the successor activity
depends upon the initiation of the predecessor activity.
 Start-to-Finish. The completion of the successor activity
depends upon the initiation of the predecessor activity.
 Project Management Tools

Critical Path Method

 The essential technique for using CPM is to construct, a model of the project that
includes the following:
 A list of all activities required to complete the project
 The time (duration) that each activity will take to completion
 The dependencies between the activities.
 CPM calculates:
 The longest path of planned activities to the end of the project
 The earliest and latest that each activity can start and finish without making the
project longer
Project Management Tools

Critical Path Method

 Project Management Tools

Gantt Chart

 A bar chart used to track the length in time of different activities, with the
start and end of each bar corresponding to a start date and end date on the
timeline.
THANK YOU
for listening…