Q1 Functional organization has been divided to put the specialists in the top position throughout the enterprise.

This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels. Functional authority remains confined to functional guidance to different departments. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise. The concept of Functional organization was suggested by F.W. Taylor who recommended the appointment of specialists at important positions. For example, the functional head and Marketing Director directs the subordinates throughout the organization in his particular area. This means that subordinates receives orders from several specialists, managers working above them.
Features of Functional Organization

1. The entire organizational activities are divided into specific functions such as operations, finance, marketing and personal relations. 2. Complex form of administrative organization compared to the other two. 3. Three authorities exist- Line, staff and function. 4. Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise. 5. Principle of unity of command does not apply to such organization as it is present in line organization.
Merits of Functional Organization

1. Specialization- Better division of labour takes place which results in specialization of function and it¶s consequent benefit. 2. Effective Control- Management control is simplified as the mental functions are separated from manual functions. Checks and balances keep the authority within certain limits. Specialists may be asked to judge the performance of various sections. 3. Efficiency- Greater efficiency is achieved because of every function performing a limited number of functions. 4. Economy- Specialization compiled with standardization facilitates maximum production and economical costs. 5. Expansion- Expert knowledge of functional manager facilitates better control and supervision.
Demerits of Functional Organization

1. Confusion- The functional system is quite complicated to put into operation, especially when it is carried out at low levels. Therefore, co- ordination becomes difficult. 2. Lack of Co- ordination- Disciplinary control becomes weak as a worker is commanded not by one person but a large number of people. Thus, there is no unity of command. 3. Difficulty in fixing responsibility- Because of multiple authority, it is difficult to fix responsibility.

although he is also held fully responsible for all problems and positive or negative results. Table 2.2 summarizes the types of organizations. ‡ Projected org. The project manager is generally provided referent power to accomplish the goals and objectives of the project without interference from other sources. and personnel scheduling. They may not agree on certain issues. This allows the project manager the authority and resources to accomplish the project more effectively without conflict from the functional manager. their project management attributes. Matrix Organization ‡This is a mixture of functional and projectized organizations and proceeds from a weak to a strong matrix based on the allocation of resources and the level of authority the project manager exerts over project. He is also allowed to escalate problems and issues to the highest levels of the organization in order to complete the project. Conflicts.Maintainance of specialist¶s staff of the highest order is expensive for a concern. This type of organization tends to be more satisfying to a project manager because it migrates from a weak matrix organization toward a strong matrix organization. This is generally a more rewarding type of environment for a project because most of the resources are specifically allocated to the project and the project manager has full discretion over the company's time and agenda.4. Costly.There may be conflicts among the supervisory staff of equal ranks. time. 5. and some . This is the most idealistic working environment for a project manager.

to name a few.Q1. Project Management deals with tracking the process being executed. from a schedule and cost perspective. producing a financial model of the project. project is repeatability vs. Process Management deals with defining and managing what is done on a project. Business Manager y PMO at all levels in the organization Q3. scheduling and tracking of effort against plan. 6 Steps y Identify the activity according to the objectives y Determine the activities which are needed to execute the plan y Classify the activities based on function & products o Group the activities & define jobs o Group jobs & define sections o Group Section & define departments o Group Departments & define admin units y Define responsibilities for each job & expectations y Delegate authority resources & facility y Establish structural relationship between sections Q4. Project is a unique endeavour with a beginning and an end undertaken to achieve a goal. Process Management and Project Management go hand-in-hand to deliver a successful project. Soft copy check Saket mail Combination of Functional structure & product structure Projectised organization y Lowest level of resources are with Project Manager y Highest level of control is with Sr. Properties y Division of labour y Centralization of similar resources Weakness y When involved in multiple projects conflicts arise over relative priorities of these projects in competition of resources y Longer time in decision making y Emphasis placed on its own specialities rather that goal of project Q2. The defining characteristic of process vs. It includes functions for developing the optimal project schedule. including tasks completed. roles performed. deliverables produced. and tools used. . It deals with the scientific method used to deliver an IT solution. Process is a repetitive collection of interrelated tasks aimed at achieving a certain goal. and reporting of status. managing costs against budget. uniqueness.

Designing a new feature is a project: The feature is unique. We have to constantly select from an increasing number of possible tasks that come up in the light of newly discovered facts and pick these that will take us closer to the goal. We're not as much concerned with that the design is achieved though the most efficient sequence of steps. Tasks are known on the outset. Project management has emphasis on getting the thing done. Q5. increasing quality (including consistency in quality). efficiency (descreasing time needed. At some point we need to stop designing the feature (even when its far from perfect) and it is best if we stipulate in advance how do we know that we've reached that point. re-evaluating criterias. fast and consistently meet quality standards. once we've designed it we won't be designing it again. but its going to be a different endeavour. Higher efficiency is harder to achieve since it might require custom tools and methods that can only be developed if the project was turned into a repetitive process. The sequence is repetitive. Maybe version two. When managing daily builds we want them to be cheap. since the process is repetitive. Applied to software development making a daily build is a process: It's a sequence of tasks aimed at end result. y y y Specific activity on which money is spent in expectation of return It has a specific start & end It has 3 attributes o Input characteristics o Output characteristics o Social Cost Benefit Analysis Special Features o Has a mission or set of objectives o Its responsibilities are assigned to individual agency y .Process management has emphasis on increasing "repeatability" of the tasks. in most cases this is best achieved through increased automation. reducing cost). adjusting for newly discovered facts and generally moving the entire thing towards completion. as with actually coming up with a sufficiently good design at the end. achieving the end result. Hence the sequence of tasks that goes into design will be hard to automate and we need to concentrate on keeping the bounds.

and if they had been budgeted to cost $20K. If. Roughly. (The variable BCWP. Decay. It is computed by taking (1) the sum of the budgeted costs of all work packages thus far completed. social profitability. is the identical concept. PDF Attached NPV vs IRR NPV > 0 project is accepted IRR > Cost of capital project is acceptable Q15. respectively. Financial analysis y Starting point: Establishment of objectives to be achieved y Pre Selection stage: in-depth study: o market analysis o technical analysis o social profitability o Financial analysis Q13. discussed later. $10K. technical analysis. Project fesability report y It includes market analysis. earned value represents an estimate of the percentage of work completed thus far. as of June 30 work packages A. plus (2) the sum of the earned value (costs or subjective estimates) of all open (started but not yet completed) work packages. for example. Once the project begins.) Example 1: Earned Value The earned value of work completed in a project is determined by the combined status of all work packages at a given time. and $12K. Maturity) It is a team work It is customer specific Exposed to risk & uncertainity Subcontract Q7.o o o o o It has a life cycle (Growth. and C had been completed. work progress and actual costs are tracked every period and compared to these budgeted costs. and if. B. Managers measure and track work progress using the concept of earned value. . y Various Stages of Project Life Cycle y Stages are closely linked & follow logical progression which provides basicsfor the success y Pricipal stages of the cycle are o Identification of project o Its Design o Preperation & appraizel o Its implementation o Evaluation ones the investment phase has been completed Q17. Earned Value Concept Costs are budgeted period-by-period for each work package or cost account (timephased budgeting).

it is also called Earned Value (like the method it is used by). it equals BCWS at the planned finish. Work Package D had been budgeted to cost $20K and was only 75 percent completed. then the earned value for the project on June 30 would be: $20K + $10K + $12K + 10. BCWP ± Budgeted Cost of Work Performed ± a measure of physical progress of works expressed by cumulated planned cost of works actually done related to time. ACWP ± Actual Cost of Work Performed ± cumulated ammount payable for works done related to time. Q18. BAC ± Budget at Completion ± total planned cost of the whole project. cumulated planned costs related to time of their incurrence. y y y y BCWS ± Budgeted Cost of Works Scheduled ± the baseline for the analysis.752 $20K = $57K Like expense data. the earned value for the project. individual work packages.additionally. . or levels in between can be summarized and reported through the PCAS. The application of earned value to project performance analysis will be discussed later.

Budgeting & funding. Dedlines. o Track Record o Resources available o Skill Level o Process & Systems o Reputation of the firm y Weakness o Factors that hinder the achievement o Gaps in knowledge & skill. From the diagram CV = BCWP ± ACWP SV = BCWP ± BCWS Time Now varience = BCWP (in terms of time axces) ± BCWS ( in terms of time axces) Varience at completion = ACWP ± BCWP (both in terms of cost) Forecast time varience = BCWP Completion time ± BCWS Completion time Q22. Enviournmental. That help achieve the objectives of a project. Seasonal effects . process & systems. completing project.y y T ± planned duration of the project. Sir PPT (PESTLE) SWOT y Performed before initialization of project in order to analyse various elements & formulate the foundation of Business plan y Project managers are usually in charge to communicate the objectives of SWOT analysis to the entire team before commencement of project y Strengths o Benefits and strengths of an org. process & systems are some of the barriers in completion of project y Opp o External conditions that determine the project success o Tecn & Infra Deve o Changing consumner behaviour o New innovations o Emerging & developing markets y Threats o External conditions that could hinder the project success o Political . Competitor activity.