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MB0049- Project Management Set-1

Q.1 Describe in detail the various phases of Project management life cycle. Ans. Projects too have to chore through their life-cycles adhering to a system. Every project irrespective of its size, scope has to adapt a system. A system in the project management refers to the existence of interrelationship of activities in a project. The absence of a system makes a project die. No matter what project it is that youre preparing for, the project management life cycle can assist you in narrowing your focus, keeping your objectives in order and finishing said project on time, on budget and with a minimum of headaches. Every project management life cycle contains five steps: Initiation, Planning, Execution, Monitoring/Control and Closure. No one step is more important than the other and each step plays a crucial role in getting your project off the ground, through the race, down the stretch and across the finish line. Phases of Project management life cycle 1) Initiation In this first step you provide an over-view of the project in addition to the strategy you plan on using in order to achieve the desired results. During the Initiation phase youll appoint a project manager who in turn will -- based on their experience and skills -- select his team members. And lest you think you need to be a Bill Gates or Donald Trump in order to see your project take on a life of its own, fear not: there are some great technological tools available to get you through the Initiation phase of the project management life cycle. 2) Planning The all-important second step of any successful project management life cycle is planning and should include a detailed breakdown and assignment of each task of your project from beginning to end. The Planning Phase will also include a risk assessment in addition to defining the criteria needed for the successful completion of each task. In short, the working process is defined, stake holders are identified and reporting frequency and channels explained. 3 & 4) Execution and Control Steps Three and Four take you into deeper water. When it comes to the project management cycle, execution and control just may be the most important of the five steps in that it ensures project activities are properly executed and controlled. During the Execution and Control phases, the planned solution is implemented to solve the problem specified in the project's requirements. In product and system development, a design resulting in a specific set of product requirements is created. This convergence is measured by prototypes, testing, and reviews. As the Execution and

Control phases progress, groups across the organization become more deeply involved in planning for the final testing, production, and support. 5) Closure By the time you reach Step Five -- Closure -- the project manager should be tweaking the little things to ensure that the project is brought to its proper conclusion. The Closure phase is typically highlighted by a written formal project review report which contains the following elements: a formal acceptance of the final product (by the client), Weighted Critical Measurements (a match between the initial requirements laid out by the client against the final delivered product), lessons learned, project resources, and a formal project closure notification to higher management. The Project Management Cycle saves time and keeps everyone on the team focused. Fortunately, modern technology provides a variety of templates that will take you from A-to-Z (or in this case from Start-to-Finish) making the Project Management Cycle user friendly no matter what your level of management experience! Q.2 List and explain the various aspects of programme management. Ans.

Project Management

Project management is the planning, organizing, directing, and controlling of company resources.

It is clear from this definition that project management is concerned with the dynamic allocation, utilization, and direction of resources (both human and technical), with time -- in relation to both individual efforts and product delivery schedule -- and with costs, relating to both the acquisition and consumption of funding. As a corollary, it is safe to say that without the direction project management provides, work would have to proceed via a series of negotiations, and/or it would not align with the goals, value proposition, or needs of the enterprise. Within a program, these same responsibilities (i.e., allocation, utilization, and direction) are assigned to people at three levels in the management hierarchy; the higher the level, the more general the responsibilities. For example, at the bottom of the management hierarchy, project managers are assigned to the various projects within the overall program. Each manager carries out the management responsibilities we described above. At the middle of the hierarchy is the program manager/director, whose major responsibility is to ensure that the work effort achieves the outcome specified in the business and IT strategies. This

involves setting and reviewing objectives, coordinating activities across projects, and overseeing the integration and reuse of interim work products and results. This person spends more time and effort on integration activities, negotiating changes in plans, and communicating than on the other project management activities we described (e.g., allocating resources, ensuring adherence to schedule, budget, etc.). At the top of the program management hierarchy are the program sponsor(s) and the program steering committee. Their major responsibility is to own and oversee the implementation of the program's underlying business and IT strategies, and to define the program's connection to the enterprise's overall business plan(s) and direction. Their management activities include providing and interpreting policy, creating an environment that fosters sustainable momentum for the program (i.e., removing barriers both inside and outside the enterprise), and periodically reviewing program progress and interim results to ensure alignment with the overall strategic vision. These individuals receive periodic summary reports and briefings on funding consumption, resources and their utilization, and delivery of interim work products and results. Typically, they will focus on these reports only if there is significant deviation from the plan. So, let's return to the questions we posed at the start of this section: What is program management? Is it really management at all? If you think of management activities strictly as those we defined for project management, then the answer to the second question is "No," or maybe "Partly." At the project level, managers do still perform these activities, but the program manager/director addresses a different set of program goals or needs, which requires a different "bag of tricks" as well as a different view of what is happening and what needs to get done. And at the top of the hierarchy, the executive leaders who set goals and oversee the program certainly do not perform the same detailed activities as project managers

Q.3 Write a short note on the following: a. Project progress control tools and mechanisms b. Process in bringing about a change in project management.

Ans. Project progress control tools and mechanism Project monitoring and control also provides information to support status reporting, progress measurement, forecasting and updating current cost and schedule information. During this process,

it is also important to ensure that implementation of approved changes are monitored when and as they occur. As for tools and techniques used in facilitating project monitoring and control, automated project management information systems and Earned Value are among the most commonly used. Both are also used to update information. Earned Value also provides a means for forecasting future performance based upon past performance. Status reports are used for communicating project progress and status. Variance Analysis reports are typically used to identify variances and the information often used as a basis for determining corrective actions. The ideal suite of project management tools would provide fully integrated functionality such that:

tools share the same communication medium to the team (eg Web, Intranet, Exchange server, EMail, Client/Server) information can be automatically transferred to other tools, or, better still, be held only once (eg team names, task lists, EMail addresses, distribution lists) efficiency and effectiveness is supported by automatic messaging and workflow control the applications will always prompt those responsible for action.

The tools that are used in project planning are 1. Project organization

Process Initiation

Skills and activities Prepare an outline project justification, plan and project budget Selection and briefing of the project team, assigning roles and organization Feasibility study- risk and key success factors Project definition and project plan Communicate to the team Allocating and monitoring the work and cost Ensuring work and team cohesion Reporting progress Monitoring progress and managing changes Helping the team to solve project problems Satisfactory delivery Compiling lessons from project experience

Planning

Execution

Control

Close

2.

Project structure Development plan, project tracking and oversight.

3. Project Key personnel Identify those business areas that are within the scope or directly interface with the scope boundary and list them in the Business area column of the project assignment worksheet Identify the key personnel for each area and list them in the Person column of the project assignment worksheet. 4. Project management team

It is a senior management team, which will be accountable for the project.


Identify project sponsor, client representative and technical representative. Stage managers- who will plan and manage the project on a day-to-day basis for this stage Project coordinators- client coordinator and technical coordinator Clearly define these coordination, control activities and identify the brief suitable personnel to carry them out Key stakeholders

5.

Identify management level personnel who are critical to the success of the project. Document the responsibilities of stakeholders 6. Stage teams Identify appropriate personnel required for the stage, define the team structure and appoint team leaders Document the time commitment and responsibilities to be performed by the team members. 7. Key resources Individuals assigned to a key resource role may work towards gathering Business key resources and Technical key resources. They are project coordinators and team invitees.

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

A typical example of a work breakdown structure of a recruitment process is indicated below :

This is the technique to analyze the content of work and cost by breaking it down into its component parts. Project key stages form the highest level of the WBS, which is then used to show the details at the lower levels of the project. Each key stage comprises many tasks identified at the start of planning and later this list will have to be validated. WBS is produced by Identifying the key elements, breaking each element down into component parts and continuing to breakdown until manageable work packages have been identified. These can then be allocated to the appropriate person.The WBS does not show dependencies other than a grouping under the key stages. It is not time based- there is no timescale o the drawing. 9. Task duration

Identifying lead and lag times helps in working out task duration. Lead time: An amount of time, which a successor task can overlap with its predecessor task, i.e. the time before the completion of the predecessor at which the successor can start. Lag time: An amount of time, between a predecessor and a successor task, i.e. the time after the completion of the predecessor that the start of the successor is delayed

Q.4 Describe in brief the various phases of the quality control process. Ans. The definition of the ISO 8204 for quality: Totality of characteristics of an entity that bears on its ability to satisfy stated and implied needs. This means that the Software product conforms to requirements defined.

Description of Phases:

Software Quality Management (SQM) describes the processes that ensure that the Software Project would reach its goals i.e. meet the clients expectations. Any phase of SDLC has its own independent stages of planning, execution, monitoring, control & reporting. Likewise Software Quality Management has the following three categories or key phases: 1. 2. 3. Quality Planning Quality Assurance Quality Control

Quality Planning: Quality Planning is one of the most important parts of Software Quality Management. It is the start activity of SQM. Through proper planning we can ensure that the processes that make a product are audited correctly to meet the overall project objective. The staring of Quality Planning process is followed differently by different Organization. It has been described in different Quality Policy and Documentation across various Organizations. Other industry standards related to the Software Project can be referred to Planning phases when needed. These act as Standard inputs for some specific projects. The Planning stage is having following inputs:1. 2. 3. 4. 5. 6. Quality Policy of a Company Organization Standards Referencing Industry Standards Regulatory compliances Statement Of Work Project specific Requirements

Quality planning process can ensure that standards are as per clients expectations. The outcomes of Quality Planning process are as follows:-

1. 2.

Standards defined for the project Quality Plan

Various tools and techniques are used to create the quality plan. Few of these tools and techniques are briefly described in this article. Here are some over views:Benchmark: Deciding on the present product standards by comparing with the performances of similar products which is already exist in the market. Cost of Quality: The total cost of quality is a summation of prevention, appraisal and failure costs. Design of Experiments: Statistical data can be used to determine the factors influencing the Quality of the product. Other tools: There are various tools used in the Planning process such as Cost Benefit Analysis, Cause and Effect Diagrams, System Flow Charectistics. All of the above key points aids in the formation of a Quality Management Plan for a particular project.

Quality Assurance: Quality Plan which is created during planning is the input to Quality Assurance Process. The Assurance stage is having the following inputs: 1. 2. Quality Audits Various Techniques used to evaluate performance of project

Quality Assurance Process helps us to ensure that the Project is following the Quality Management Plan. The tools and techniques which are used in Planning Process such as System Flow Charectistics, Design of Experiments, Cause and Effect Diagrams can be implemented here too, as per requirements. Quality Control: The next step to Quality Assurance Process is Quality Control. The Control stage is having following inputs:

1. Quality Management Plan. 2. Quality Standards for the Project. 3. Actual Observations and Measurements of the work done or work in Progress. The Quality Control Processes use various tools to Observe and Measure if the work done or not. If the Work done and it is found that the deliverable is not satisfactory then it can be sent back to the development team for fixes. If the work done meets the requirements as defined then it is accepted and released to the clients.

Q.5 Write short note on the following Project Management tools: a. Quality Certification b. Strategic inflection point c. Force field analysis d. Information risk management Ans. Quality Certification Quality certification has become extremely important in competitive markets and especially in gaining foothold in exports. To avail the certification of ISO-9000, a unit has to undertake significant costs; the small scale industries have been found wanting mainly on account of resource crunch to implement quality systems to obtain this certification. However, as a paradigm shift, SSI must make 'Quality' a way of life. It has been decided to push the quality upgradation programme in the SSI Sector in a big way. A scheme has been launched to give financial incentive to those SSI units who acquire ISO-9000 certification, by reimbursing 75% of their costs of obtaining certification, subject to a maximum of Rs. 0.75 lacs per unit. In order to promote modernisation and technology upgradation in SSI, the units are assisted in improving the quality of their products. A new scheme has been launched to assist SSI units in obtaining ISO-9000 or an equivalent international quality standard. Subject to an upper ceiling of Rs. 075 lacs, each unit is given financial assistance equal to 75% of the costs incurred in acquiring the quality standard.

The SSI units are also encouraged to participate in quality awareness and learning programmes organised specially for their benefit.

Strategic inflection point


Point at which a corporation facing a new situation must alter the path it is on and adapt, or fall into decline. The term was coined by Hungarian-born US computer entrepreneur Andy Grove, chairman of microprocessor company Intel. Grove believes strategic inflection points occur when a company's competitive position goes through a transition. The idea concerns how companies recognize and adapt to paradigm changes. At a strategic inflection point the way a business operates, and the concept of it as a business, undergoes a change.

Force field analysis Force field analysis is an influential development in the field of social science. It provides a framework for looking at the factors (forces) that influence a situation, originally social situations. It looks at forces that are either driving movement toward a goal (helping forces) or blocking movement toward a goal (hindering forces). The principle, developed by Kurt Lewin, is a significant contribution to the fields of social science, psychology, social psychology, organizational development, process management, and change management. Lewin, a social psychologist, believed the "field" to be a Gestalt psychological environment existing in an individual's (or in the collective group) mind at a certain point in time that can be mathematically described in a topological constellation of constructs. The "field" is very dynamic, changing with time and experience. When fully constructed, an individual's "field" (Lewin used the term "life space") describes that person's motives, values, needs, moods, goals, anxieties, and ideals. Lewin believed that changes of an individual's "life space" depend upon that individual's internalization of external stimuli (from the physical and social world) into the "life space." Although Lewin did not use the word "experiential," (see experiential learning) he nonetheless believed that interaction (experience) of the "life space" with "external stimuli" (at what he calls the "boundary zone") were important for development (or regression). For Lewin, development (or regression) of an individual occurs when their "life space" has a "boundary zone" experience with external stimuli. Note, it is not merely the experience that causes change in the "life space," but the acceptance (internalization) of external stimuli. Lewin took these same principles and applied them to the analysis of group conflict, learning, adolescence, hatred, morale, German society, etc. This approach allowed him to break down common misconceptions of these social phenomena, and to determine their basic elemental constructs. He used theory, mathematics, and common sense to define a force field, and hence to determine the causes of human and group behavior.

Information risk management Information Risk Management follows information as it is created, distributed, stored, copied, transformed and interacted with throughout its lifecycle. Three Pillars to an Information Risk Strategy 1) Information-centric approach: Begin by understanding what information is critical to key business initiatives, such as growth through acquisitions or expanding partnerships. Then diligently follow the data to gain a more holistic view of all the places where it exists across the organization, where the points of vulnerability are, and what events could put your business at risk. 2) Risk/Reward analysis: Security investments should be prioritized, based on the amount of risk a given activity entails relative to the potential business reward, and in keeping with the organizations appetite for risk. 3) Ensuring repeatability: Once enterprise information has been located and a risk assessment performed, the next step is to implement controls including policies, technologies, and tools to mitigate that risk. Here, organizations often turn to frameworks like ISO 27002 and the PCI Data Security Standard. Q.6 List and describe in brief the various types of review used for improving performance of a project.

Ans.

Performance Measurement

Most of us have heard some version of the standard performance measurement cliches: what gets measured gets done, if you dont measure results, you cant tell success from failure and thus you cant claim or reward success or avoid unintentionally rewarding failure, if you cant recognize success, you cant learn from it; if you cant recognize failure, you cant correct it, if you cant measure it, you can neither manage it nor improve it," but what eludes many of us is the easy path to identifying truly strategic measurements without falling back on things that are easier to measure such as input, project or operational process measurements. Performance Measurement is addressed in detail in Step Five of the Nine Steps to Success methodology. In this step, Performance Measures are developed for each of the Strategic Objectives. Leading and lagging measures are identified, expected targets and thresholds are established, and baseline and benchmarking data is developed. The focus on Strategic Objectives, which should articulate exactly what the organization is trying to accomplish, is the key to identifying truly strategic measurements. Strategic performance measures monitor the implementation and effectiveness of an organization's strategies, determine the gap between actual and targeted performance and determine organization effectiveness and operational efficiency.

Good Performance Measurement


Focus employees' attention on what matters most to success Allow measurement of accomplishments, not just of the work that is performed Provide a common language for communication Are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value(targets), and thresholds Are valid, to ensure measurement of the right things Are verifiable, to ensure data collection accuracy

Problems in Performance Appraisals:


discourages teamwork evaluators are inconsistent or use different criteria and standards only valuable for very good or poor employees encourages employees to achieve short term goals managers has complete power over the employees too subjective produces emotional anguish

Solutions

Make collaboration a criterion on which employees will be evaluated Provide training for managers; have the HR department look for patterns on appraisals that suggest bias or over or under evaluation Rate selectively(introduce different or various criteria and disclose better performance and coach for worst performer without disclosing the weakness of the candidate) or increase in frequency of performance evaluation. Include long term and short term goals in appraisal process Introduce M.B.O.(Management By Objectives) Make criteria specific and test selectively{Evaluate specific behaviors or results} Focus on behaviors; do not criticize employees; conduct appraisal on time.

MB0049 Project Management Set-2


Q.1 Explain the nine steps which take project management to a New Horizon Ans. The following nine steps are suggestive measures to provide new dimensions to the management of projects. Step 1: Believing in discontinuity and not continuity with incremental improvements Continuity or the status quo is a function of quantum of changes. Incremental improvements are valid only when the rate of change is not excessive. Both the continuity and incremental improvements are linked with the rate of change and quantum. Beyond a threshold of rate of change, one cannot go with the continuity and incremental improvements. The modern day Internet and technological based world has witnessed the unprecedented rate of change and explosion in the quantum of changes. It is this process which has resulted in making continuity theory as baseless. Continuity in principle is to preserve the past where as discontinuity breaks the linkage with the past to the extent it can have fewer constraints to move into the future. There is no choice except to believe in discontinuity as only then mind and body is prepared to accept the unknowns and be ready to face it and control thereafter. Step2: Owning the problems and sharing the solutions More one owns problem, more he becomes experienced. It is not the number of years of service one has performed for a company but how much number of problems was faced and owned is now becoming the benchmark to define an experienced person from inexperienced. The true spirit of entrepreneurial outlook is to own the problems and solve the same and in this process make Money. The fixed mould mentality is to empower the problems to be faced outside than oneself and get the credit for solutions. Step 3: Breaking the status quo mentality No change means perpetuation of the Present into the Future. This is in contradiction to the nature as Future is not the extension of Present. Breaking the status quo mentality implies in taming the future as it is the future which becomes Present at some point of time. Focusing into Future and affecting the Present is antiestablishment and require concerted efforts to move out from the

comfortable zones. Project managers can hardly afford to have status quo mentality as day in and day out they are involved in acting in present to affect Future. At times, when we do not get away from the status quo mentality, contradictions fall apart everywhere in the project between the two types of group- the champions of future and those who believe in extending Present. Step 4: Stepping out of comfortable zone As apart of the step 3 and in a way extension of it, the comfortable zone is to dear to break and cross. Fear of uncertainties makes the comfortable zone more comfortable than if the fear did not exist. The project managers of tomorrow are those who have so called comfortable zone carve out from that area which conventionally is uncomfortable and that is the zone of uncertainties. If we seek comforts in conquering the uncertainties with planning and indomitable spirit of winning, then we are able to provide project leadership and inspire the team members to plunge into risk taking. Step 5: Human Capital by passing Financial Capital While the agriculture society witnessed the Nature as the foremost, the 20th century saw the menmachine interaction as the key factor for the capital formation. 21st century in this Internet age is beginning to see the human capital surpassing the financial capital. Venture capitalists were all over the place to fund any idea, which they thought would create a brave new world. Its consequent failure in the last couple of years could not be attributed to the over faith in Human capital but absence of effective filtering mechanism from good to bad idea. While Return On Investment (ROI) could be seen as financial driven phenomena, Return On Time Invested (ROTI) is basically based human efforts and its deployment. ROTI will be more meaningful to ROI in the context of new processes on their way to unfold in the beginning of 21st century. Step 6: Transform work culture from 5 to 7 dimensions Conventionally we all live in the conventional 5 dimensions of space i.e. X, Y and Z, Time and Mind. We need to supplement on these 5 dimensions the additional 2 dimensions of Passion and Joy If we do what we want do then the gap between Wish and Reality is so little that one is in position to provide its very best. It is his/her added 2 dimensions, which make the total difference. The new miracles in project management will take place when we bring the work of joy like in the art domain of music and paintings in our project work. Step 7: Real number of encounters replacing number of years of experience

The experience profile should be redefined by the number of encounters and problems faced instead of number of years. The wisdom evolved based on encounters is far richer than accumulated simply by repeating the same encounters n number of times in ones employee ship. The secret is to increase the encounters meaningful to ones own dream or passion profile. Step 8: Seeking meaning out of change Change is first degree. It is a must. Change can be threat or an opportunity. It depends how one looks at it. If change is resisted, it becomes all the more difficult to see the real outcome of the change as it is partly distorted. Project implies change and that too a temporary one. It is essential to make people to have a real communication about the change. One of the major strategies to bring about a change is to communicate, communicate and communicate. Step 9: Detachment from the fruits of the results To act is within ones control. To get the reward as a reaction to the action is not within ones purview. Too much emphasis on that part, which is not within our control, is a wasteful exercise instead concentrates on actions to the best of ones ability. The results so arrived at must be analyzed from the cause and effect relationship and constant learning must be made out of all such actions or group of actions. Attachment with the results of the actions often dilute ones own energy and may shift ones focus from the main road to its detour. Detachment from the results does not imply one should not demand or expect materialistic benefits, no, it only means that in case you do not get what you deserve, leave it and move forward rather than brooding over that part which is not within ones control. The journey comes to a standstill if we get attached to the surroundings and to the results of the present beyond a small time frame. Project managers and team members are never stationary. They must move on. In summary, the new discovery or dimensions in project management heavily depends on the human factor of breaking ceilings, getting motivated all the time, working with passion, detachment with the results rather than with the actions, human capital surpassing that of financial capital, breaking the status quo mentality, owning the problems and solutions and creating discontinuity. The journey has just begun and it must continue as in the human race, there is no finishing line.

Q.2 Discuss the traits of a successful project manager.

Ans. Ten Traits of a Successful Project Manager


This short article highlights some of the best traits of a successful project manager. He or she has many of these abilities:

1. In Touch Regularly checks the pulse of the project. The balance is in checking often

enough for scope and length of the project, without over-checking.


2. Good Vibrations Has inner and outer warmth. The manager understands people, and can

use humor as a relief.


3. Rock-solid Has a solid character. Everyone respects and trusts the manager and his

actions.
4. Does the Job Has a preference for action doesnt wait for issues to resolve themselves. 5. Good Reactions Anticipates problems and plans as he can to handle or avoid them. 6. Not Scattered Can handle mulitple tasks with proper focus. His management style is

balanced between multi-tasking and focusing on the important details and tasks. This trait is connected to good time management. 7. Focused Picture When buried in details, she can also look at the big picture, and understands how the teams efforts are integrated in the whole of the project. 8. Quality Workmanship - Through leading by example, quality outcomes and products are achieved. 9. Bends, but Unbreakable Has flexibility, but can make firm decisions. It is a key trait to be able to understand when decisions have to be made by the manager (as opposed to letting others intercede or make decisions for the manager by default.) 10. Leverages Tools Learns and uses tools to help manage projects. A good PM doesnt get buried learning complex project management tools especially if she does not yet know the theories or uses behind techniques (such as earned-value management or PERT charts). Q.3 Define the change management model. Ans.

1) Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous term, change management has at least three different aspects, including: adapting to change, controlling change, and effecting change. A proactive approach to dealing with change is at the core of all three aspects. For an organization, change management means defining and implementing procedures and/or technologies to deal with changes in the business environment and to profit from changing opportunities Successful adaptation to change is as crucial within an organization as it is in the natural world. Just like plants and animals, organizations and the individuals in them inevitably encounter changing conditions that they are powerless to control. The more effectively you deal with change, the more likely you are to thrive. Adaptation might involve establishing a structured methodology for responding to changes in the business environment (such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for responding to changes in the workplace (such as new policies, or technologies).

Terry Paulson, the author of Paulson on Change, quotes an uncles advice: Its easiest to ride a horse in the direction it is going. In other words, dont struggle against change; learn to use it to your advantage. 2) In a computer system environment, change management refers to a systematic approach to keeping track of the details of the system (for example, what operating system release is running on each computer and which fixes have been applied).

The Change Management Model The model follows a 3-phase, 8-step process which is represented graphically below. Click on the graphic below to view the phase and step descriptions.

A change management model Dealing With The Truths of Change Leaders of change take note: Emotional reactions are at least as important as any other aspect of implementing change. The higher the involvement in change, the less negative the inevitable reactions. The intensity of emotional reaction is proportionate to the speed of change. The unresolved effects of change are cumulative. The longer a group / individual / situation has remained static, the greater the investment in the status quo. Therefore, the greater the resistance and reaction. Rewards and incentives can cause people to change, but they will not neutralise their feelings of loss. Dealing With Change Misconceptions Change happens quickly Survivors are glad they have a job Time takes care of everything Everyone who is not on board has something wrong with them The weak people are the ones who leave During change, those who appear OK really are People hear what senior management communicates

People take senior management communication at face value If the communication is done right the first time, it is enough By changing the formal relationship, how we do business will change The transition behaviour of the senior management is invisible to the rest of the organisation Pressures that caused the change will be seen in a rational manner We suggest these misconceptions require a thoughful approach from those leading change. What Happens when your Organisation Undergoes Change? People frequently feel overwhelmed when there are major changes within their organisation. They are often uncertain of their future, and the future of their colleagues in the organisation. Consequently the following fear of change reactions may occur. People generally feel smaller, ie. Self-conscious - the only one feeling the effects Missing - opportunities, job, status, security taken away Alone - nobody understands, the unlucky one Lethargic- commitment goes, energy levels drop Limits - each person has limits to the amount of change theyre comfortable with Enough - when those limits are reached they cry enough and resist further change Revert - people easily revert back to known behaviours Because we are all individuals we react differently. Some of the common reactions to change result in the following behaviours at work: Drop in morale Drop in work outputs and Drop in productivity Drop in Managers credibility Drop in Commitment to the organisation and work Drop in levels of service Staff resisting change or conflict and making life difficult. This especially happens when people have been in the organisation for a long time. Staff bad mouthing the organisation/management or behaving in negative ways because they feel angry and/or threatened and want to hit back at the organisation.

Effective leaders of change are aware of these not uncommon individual reactions to change. They plan how to deal with change by acccepting that employee anticipation and fear of change is a significant organisational risk unless people can be encouraged to learn and engage with the change and reflect upon the choices and options available to them. The dogmas of the quiet past are inadequate to the stormy present.The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew Abraham Lincoln Q.4 Describe the three major classification and categories of Risk management. Ans. Risk management is a structured approach to managing uncertainty related to a threat, a sequence of human activities including: risk assessment, strategies development to manage it, and mitigation of risk using managerial resources. About Types of Risk Management Commercial enterprises apply various forms of risk management procedures to handle different risks because they face a variety of risks while carrying out their business operations. Effective handling of risk ensures the successful growth of an organization. Various types of risk management can be categorized into the following:

Operational risk management:

Operational risk management deals with technical failures and human errors

Financial risk management:

Financial risk management handles non-payment of clients and increased rate of interest

Market risk management:

Deals with different types of market risk, such as interest rate risk, equity risk, commodity risk, and currency risk

Types of Risk Management Techniques


Risk management is a business process in which a business analyzes risk in an effort to miminize the effects of such risk. Organizations must identify risks and assess how dangerous each risk could be to the organization. Taking steps to eliminate risks will reduce the possibility of a financial loss. Risk management should be continuous and revisited at intervals the organization deems appropriate. y

Q.5 List and explain the 10 rules which serve as the guidelines for development of high technology. Ans. Guidelines for development of high technology Some guidelines in the form of rules which help organization to be strong in this area. Rule1. Identify the critical technology and make a deliberate choice for indigenous development. Rule2. Always aim one step higher in performance. Rule3. Focus on multi use technologies. Rule4. Spot the competency of divisions and empower them for technology development. Rule5. Ensure redundancy for critical systems and technologies. Rule6. Focus efforts through Programme/Projects/Mission oriented approach. Rule7. Build concurrency into every activity. Rule8. Build long term partnership with all the stake holders. Rule9. Focus on Problem Forecasting and Prevention. Rule10. Ensure continuous and integrated Performance Measurement.