Unit

12

The practice of project management
The practice of project management has

evolved over half a century and permeates all industries, institutions and governments throughout the world.

Project management
It is

the discipline of planning, organi zing, securing and managing resources to bring about the successful completion of specific project goals and objectives. It is sometimes conflated with programme management, however, technically that is

usually to bring about beneficial change or added value. . but can be by funding or deliverables). A project is a temporary endeavour. undertaken to meet unique goals and objectives. permanent or semi-permanent functional work to produce products or services.  The temporary nature of projects stands in contrast to business as usual (or operations). which are repetitive. having a defined beginning and end (usually constrained by date.

. and events. complex undertakings that create new products. They are unique. Projects have starting and ending points in time and progress through a number of life cycle phases. services. facilities. bring about major organizational and other desired changes or recovery from natural or man-made disasters.Projects exist in every type of human enterprise. among other things.

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Mad Old Man Project Have you ever heard about the Mad Old Man’s lifelong determination to bring the water from the valley to the top of the mountain in order to use the terraces for growing rice more effectively? It is an ancient Chinese story. which had a periphery of seven hundred li  and were a hundred thousand feet high. It took place at the Taihang and Wangwu Mountains. originally lay south of Jizhou and north of .

Taihang and Wangwu Mountains .

His house faced south and beyond his doorway stood the two great peaks. and hoe in hand they began to dig up these mountains with great determination. known as the Wise Old Man. long ago and was known as the Foolish Old Man of North Mountain. Another graybeard.“ . Taihang and Wangwu. He called his sons. saw them and said derisively.It tells of an old man  Yu Gong who lived in northern China long. obstructing the way. "How silly of you to do this! It is quite impossible for you few to dig up those two huge mountains.

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and he sent down two angels. there will be my grandsons. unshaken in his conviction. God was moved by this. who carried the mountains away on their backs. "When I die. Why can't we clear them away?“  Having refuted the Wise Old Man's wrong view. and so on to infinity. he went on digging every day. when they die. and then their sons and grandsons. they will be that much lower.The Foolish Old Man replied. my sons will carry on. High as they are. the mountains cannot grow any higher and with every bit we dig. .

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‘The Foolish Old Man Who Removed the Mountains’. or ‘The Foolish Old Man Who Removed the Mountains’. This idiom describes an indomitable will. His project came into existance. And it really did. It has come to us through the writings of the philosopher Lie . The place has been called ever since Yu Gong Yi Shan.

 construction is a process that consists of the building or assembling of infrastructure. As a discipline. large scale construction is a feat of human multitasking. Far from being a single activity.Project management Project management has been practiced since early civilization. In the fields of architecture and civil engineering. engineering. and heavy defense activity. Project Management developed from several fields of application including civil construction. .

Magnificent edifices of the past Although one might take for granted these professions and the way they had gradually develped over the milennia long tradition. Who and how built these magnificent edifices? . one still wondered when confronted with the major architectural and building achievements of the ancient world.

The Great Wall of China .

Egyptian pyramids .

) He was the second Pharaoh of the period and he ruled for approximately 23 years. His most known and famous undertaking was the Great Pyramid of Egypt. or commonly known as Cheops. It was assumed that this was a highly structured society and he must have attained great wealth. .on time. ruled in the 4th Dynasty (2551-2528 B.Khufu The Pharaoh Khufu.C. or within budget’ . Not much is known about the Pharaoh’s personal life or his accomplishments.

including the reliable data . What we do not know despite many attempts to resolve the mystery is: 1.Where the material had been taken from. and 4.Had they been any plans or drawings. We know the answers: the rulers – the emperors of China or pharaohs of Egypt. 3. 2.Many unresolved questions Somebody had to commission these edificies to be built.Who and how organized the labour force to build them.Who had designed these constructions.

Difficulties arise in tracing the history of management. only harbingers (such as stewards). however. Some see it (by definition) as a late modern (in the sense of late modernity) conceptualization. Others. On those terms it cannot have a pre-modern history.Higher level construction It has already been mentioned that such huge construction undertkaings must be seen as a group of related and somehow interdependent engineering projects. detect management-like-thought back .

However. planning and control. given their small scale. innovations such as the spread of Arabic numerals (5th to 15th centuries) and the codification of double-entry bookkeeping (1494) provided tools for management assessment. did not feel compelled to face the issues of management systematically. .Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or hestant workforce. but many preindustrial enterprises.

Management In practice. the management of these two systems is often found to be quite different. Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. . and as such requires the development of distinct technical skills and the adoption of separate management.

leading or directing.It comprises: 1. or 1.effort for the purpose of accomplishing a goal.planning. 1. .controlling an organization (a group of one or more people or entities). and 1. 1.staffing.organizing. 1.

.technological resources.human resources. 2.Resourcing Resourcing encompasses the deployment and manipulation of: 1.financial resources.natural resources. 3. and 4.

The verb manage  comes from the Italian wo rd maneggiare (to handle — especially tools). which in turn derives from the Latin man The French word mesnage ment (later ménagement) influenced the development in meaning of the English word managem ent in the 17th and 18th centuries .

and which has as a profitable objective. or any other field where the work may be considered physically arduous. road building.Manual labour Manual labour is physical work done with the hands. especially in an unskilled job suc h as fruit and vegetable picking. usually the production .

the split between owners (individuals. it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations. industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became .The industrial revolution Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution.

for example of a corporation. •Historically this use of the term was often contrasted with the term "Labour" referring to those being managed. .•English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization.

costs – Press for stress Being a manager today means a lot of work.schedules. a lot of peple. many responsibiliti es under constant pressure of many .

over the next 5 years.Basic Functions Management operates through various functions. organizing.) and generating plans for action. often classified as planning. etc. and controlling/monitoring. Staffing: Job Analyzing. leading/directing. next year. staffing. next month. and . next week. Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans. recruitment. Planning: Deciding what needs to happen in the future (today.

Motivation : Motivation is also a kind of basic function of management. then employees may not contribute to the other functions (which are usually set by .Some other functions Leading/Directing: Determining what needs to be done in a situation and getting people to do it. If motivation doesn't take place in an organization. employees cannot work effectively. Controlling/Monitoring: Checking progress against plans. because without motivation.

Some definitions of management According to the management guru Peter Drucker (1909–2005). the basic task of a management is twofold: 1. Organization and coordination of the activities of an enterprise muste be done in accordance with certain policies and in achievement of clearly defined objectives.marketing and  2. Management is often included as a factor of production along with .innovation.

2005) was a writer. 1909 – November 11.” The Man Who Invented Management . and selfdescribed “social ecologist. management consultant.Peter Ferdinand Drucker (November 19.

the rise of Japan to economic world power. His writings have predicted many of the major developments of the late twentieth century.  In 1959. government and the nonprofit sectors of society. Drucker coined the term “knowledge worker" and later in his life considered knowledge work productivity to . and the emergence of the information society with its necessity of lifelong learning. the decisive importance of marketing.Influence & accomplshments His 39 books and many scholarly and popular articles explored how humans are organized across the business. including privatization and decentralization.

controlling. . Directors and managers have the power and responsibility to make decisions to manage an enterprise when given the authority by the shareholders. planning. and directing the firm's resources to achieve the policy's objectives.  As a discipline. management comprises the interlocking functions of formulating corporate policy and organizing.

 In large firms the board of directors formulates the policy which is implemented by the chief executive officer. .The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies.

planning.organizing. management consists of six functions: 1.controlling. 2. 3. 5.coordinating. . 4. According to him.Henri Fayol (1841– 1925) He was one of the most influential contributors to modern concepts of management. and 6.forecasting.commanding.

She described .Mary Parker Follett  (1868–1933) She wrote on the topic in the early twentieth century. and defined management as "the art of getting things done through people".

More realistically. processes. management as equivalent to "business administration" and thus excludes management in places outside commerce. every organization must manage its work.Some regard Nonetheless. as in charities and in the public sector. people. however." Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more . many people refer to university departments which teach management as "business schools.

1. Marketing management 5. Human resource management 2. Information technology management responsible for management information systems  . Financial management 6. Strategic management 4. Operations management or production management 3.

  The secondary and more ambitious challenge is to optimize the allocation and .Goals and challenges The primary challenge of project management is to achieve all of the project goals and objectives while honouring the preconceived project constraints. time.  Typical constraints are scope. and budget.

called the father of planning and control techniques.Forefathers of project management As a discipline. and Henri Fayol for his creation of the 6 management functions.   Two forefathers of project management are Henry Gantt. which form the foundation of the body of knowledge . and heavy defense activity. who is famous for his use of the Gantt chart as a project management tool. Project Management developed from several fields of application including civil construction. engineering.

Henry Gantt (18611919)
Often called the father of planning and control technique s

A Gantt chart is a type of bar chart that illustrates a project schedule. 

Gantt charts
Gantt charts illustrate the start and

finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts also show the dependency (i.e., precedence network) relationships between activities. Gantt charts can be used to show current schedule status using percentcomplete shadings and a vertical

(3) since Saturday and Sunday are not work days and are thus excluded from the schedule. . Note (1) the critical path is in red.A Gantt chart created using Microsoft Project (MSP). some bars on the Gantt chart are longer if they cut through a weekend. (2) the slack is the black lines connected to non-critical activities.

Evolvement of project management The discipline of project management has evolved because the more traditional. or project portfolios. well-established industrial age principles and methods for managing our classical functional organizations (involving ongoing. repetitive operations of various kinds) do not work well for planning. and hence cut across the traditional functional . controlling. programs. and managing projects. Projects are comprised of diverse tasks that require diverse specialist skills.

.The challenge They are temporary endeavours with a finite lifetime and so do not provide stable organizational homes for the people involved. The challenge is to accomplish the right projects at the right time while providing stable homes that develop the diverse skills needed for all the specialists who contribute to the projects.

as well as the roles and responsibilities of all . Regardless of the methodology employed.incremental.agile. timeline. 2. 3.interactive. and 4. and cost.Approaches There are a number of approaches to managing project activities including: 1.phased approaches. careful consideration must be given to the overall project objectives.

Endomarketing is a part of the management and is very important to motivate the work force. .A training meeting with factory workers in a stainless steel ecodesign company from Rio de Janeiro. Brazil.

5.Project initiation stage. we can distinguish 5 components of a project (4 stages plus control) in the development of a project: 1.The traditional approach A traditional phased approach identifies a sequence of steps to be completed. 3.Project completion.Project execution and construction stage.Project planning and design stage. .Project monitoring and controlling systems. In the "traditional approach". 2. 4.

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.Projects vs. Projects within a programme are usually closely related in some way. programmes Programmes are defined as long-term undertakings that include two or more projects that require close coordination . or supporting common strategic objectives. having dependency relationships (in which tasks within one project cannot proceed until the results of tasks within a second project have been completed). such as using common resources.

Projects and SWAT Analysis .

operating division. A UK definition of the term programme (in the project management arena) is "a set of related projects with a common strategic goal or aim " (Harpham . or geographic area. Projects having a common customer may also be grouped within a programme.Programmes may be related to a particular product line. as another example. for example.

Harpham (2002) Programme management as practiced in the UK and its sphere of influence in Europe and elsewhere is essentially the same as project portfolio management in North America and elsewhere. "Programme management exists to bridge the gap between Corporate Strategy and Projects. It enables that fundamental question to be asked before starting the project – 'where does it fit into the corporate strategy?' .

.A portfolio is a handleless case for carrying in the hand or under the arm.

 stocks. By owning several assets. Holding a portfolio is a part of an investment and risk-limiting strategy called diversification. bonds.Portfolio In finance. options. gold certificates. production . futures contracts. certain types of risk (in particular specific risk) can be reduced. warr ants. a portfolio is a collection of investments held by an institution or an individual. real estate.  The assets in the portfolio could include bank accounts.

Programme management is a step in the right direction. a common understanding and use of the terms program. must be managed on a portfolio basis in most large organizations. However. like other investments.Project portfolio management A major development in the state of the art of project management has been the recognition that projects. but more formalized project portfolio management goes beyond what is usually termed program management. programme and project .

 A project portfolio consists of the programmes and projects supporting a given higher-level strategy. There could be only one overall corporate project portfolio.  Combe and Githens (1999) . geographic or technological divisions of the organization. industry or market. but it generally makes more sense to define more than one portfolio on a strategic basis in large organizations to reflect product line.

2. . 3.Three types of project portfolios: 1.Value creating: Strategic or enterprise projects.Compliance: "Must-do " projects required to maintain regulatory compliance.Operational: Projects that make the organization more efficient and satisfy some fundamental functional work.

between portfolio and multiple project management Project  Portfolio Management Purpose Project selection and prioritization resource allocation Strategic Multiple  Project Management Focus Tactical Planning Emphasis Long & medium-term Short-Term (Day-to(annual/quarterly) day) Executive/senior management Responsibility Project/resource managers .

Identify and group all current and proposed projects within appropriate categories and programs. Prioritize projects within programs and portfolios. 4. 5. Develop the project portfolio master schedule. 2. . Define the project categories within 3.Project Portfolio Management Process: 12 steps 1. each portfolio based on uniform criteria. Validate all projects with the organization's strategic objectives. 6. Define the project portfolios required.

7. 8. Allocate available resources to programs and projects within portfolios. Compare financial needs (primarily cash flow) with availability.” 12. 10. 11. reallocate resources to. Decide how to respond to shortfalls in money or other key resources and approve list of funded projects and their priorities. This step comprises the entire practice of what has traditionally been thought of as "project management. and reschedule all programs and . authorize. 9. Plan. and manage each program and project using the organization's project management process and supporting systems and tools for each project category. Periodically reprioritize. Establish and maintain a key resources data bank.

and managing the triple constraint for projects. . and quality (also known as scope). building the project requirements. which are cost. Key project management responsibilities include creating clear and attainable project objectives. time.Project manager A project manager is the person responsible for accomplishing the stated project objectives.

Project manager as a client representative A project manager is often a client representative and has to determine and implement the exact needs of the client. quality and above all. client . time. and to form close links with the nominated representatives. is essential in ensuring that the key issues of cost. based on knowledge of the firm they are representing. The ability to adapt to the various internal procedures of the contracting party.

Manager. Owner and Stakeholders .

start and . if ever.Programme & project manager The responsibilities of a programme manager are similar to but broader than those of a project manager. The programme manager role is of longer duration than that of any of his project managers. since the programme manager gives direction to and integrates the efforts of two or more project managers. since the overlapping projects within a programme rarely.

by introducing new projects. programmes had no distinctive start or end. 3) "Unlike projects. p.Harpham (2002. or slowing up projects. or stopping existing or . rather the strategy could be accelerated or slowed down. speeding up old existing ones.

Team  Team comprise s a group of people or anima ls linked in a common purpose. Teams are especially appropriate for conducting tasks that are high in complexity a nd have many interdependent subtasks. .

A group in itself does not necessarily constitute a team. Teams normally have members with complementary skills and generate synergy through a coordinated effort which allows each member to maximise his or her strengths and minimise his or her weaknesses. Team members need to learn how to help one another. and create an environment that allows everyone to go beyond their limitations . help other team members realize their true potential.

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Team building .

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often becomes known as a project team. thereby allowing outsiders to view them as a single unit. . concretely definable purpose. but receive assignment to activities for the same project.A team used only for a defined period of Project teams time and for a separate.  Managers commonly label groups of people as a "team" based on having a common function. Members of these teams might belong to different groups.

tracking and assignment of a group of people based on the project in hand. The use of the "team" label in this instance often has no relationship to whether the employees are working as a team.Setting up a team In this way. setting up a team allegedly facilitates the creation. .

•My style was simply to chat with the job candidate and rely completely .I didn't rely on personality assessments.From Both Sides Now The Job Interview •In the days when I was responsible for hiring folks. structured interviews or a list of prewritten questions.

Be sensitive to international cultural and business differences .

Improving levels of cultural awareness can help companies build international competencies and .Functions and culture When working in the global commercial environment. knowledge of the impact of cultural differences is one of the keys to international business success.

Any debate would be held in private. presents a sometimes confusing mix of solidly traditional Asian values and ultra modern business techniques. . Business structures tend towards the hierarchical with decisions made at the top by senior management before being cascaded down the chain. It is unusual for people to display open disagreement with a decision made.Culture Singapore is probably the most heavily Western-influenced of all the major Asian economies and. as such.

Do not show disrespect by expecting them to deal with younger. more junior colleagues. Relationships are the key in Singapore and relationships become difficult if people have lost face. What is true of the ethnic Chinese approach may be very different in an Indian-oriented company or the regional headquarters of a major MNC. . In return for that respect they take a holistic interest in the all-round well being of subordinates. Ensure that people of a similar status deal with senior people. Indians and global expatriates and is therefore difficult to categorise.      Singapore is an eclectic mix of ethnic Chinese. Malays. Performance determines promotion within an organisation except within family firms where family bonds are strongly felt. Remember the importance of safeguarding 'face'. Harmony is sought in meeting situations and everything should be done to promote and maintain that harmony. Managers expect and receive respect.

Always try to explore beneath the surface level as to what may . If in doubt return to the issue later. Patience is definitely a virtue in these situations.Some useful tips and hints Teams work on a consensus decision- making basis. Remember that diplomatic and coded language is the norm and that what is said is not what is necessarily meant. which can be lengthy and frustrating. Try to look for the meaning beneath the actual words. No' does not always mean 'no' and 'yes' may merely be an indication of comprehension.

Singaporean Teams Basically group oriented. Decisions are team ones and therefore success or failure is also team oriented. . Singaporeans make highly effective team players if the team environment engendered promotes the harmonious interaction of individuals rather than a competitive approach.  A good team leader will strive hard to develop an atmosphere of consensusstyle decision making within the team in which individual members are shielded from the possibility of 'losing face'.

leading to even slower movement. . It is difficult to speed along this process from the outside and any seeming interference could be resented. external agents can sometimes feel frustration at the lack of progress.Due to the consensual nature of team decisions.

they strongly place diplomacy before directness in communication.Britain The British are almost Asian in their use of diplomatic language. Almost alone in Europe. This can often lead the British to seem evasive in meeting situations when they are really searching for a way of saying something negative in a positive . Being very non-confrontational in business situations. the British equate directness with open confrontation and fear that bluntness will offend the other party. (with the possible exception of the Belgians).

Thus. the British also use language in a coded manner preferring to say unpalatable things using more acceptable.. "I disagree" becomes "I think you have made several excellent points there but have you ever considered..In addition to being diplomatic.. positive phrases." And a lack of interest in an idea is often .

the more likely the British are to use humour. Indeed. the more tense and difficult a situation is.Humour Humour is virtually all- pervasive in business situations.it is merely that humour is used as a tension release mechanism in the UK and helps to keep situations . This does not imply that the British are not taking the situation seriously .

Humour is a very important and respected communication tool at all levels and in all contexts.Never underestimate a British businessperson because he or she uses humour in a seemingly inappropriate situation. .

something goes wrong. however. ('Blame culture' is something that seems to permeate working life and many organisations work hard to try to change . it is not uncommon for the team to look for an individual within the team to blame.British Teams The British like decisions to be made in a team environment and a good manager will work hard to ensure 'buy-in' from his or her team. The team environment aspires to being friendly and companionable with individuals within the team being seen to be supportive and helpful of each other.  If.

but are expected to take a generalist view of the project and their role within the project team. .Team members often bring with them into the team a certain level of specialisation. Being seen as a 'good all-rounder' is definitely positive.

particularly when participants must travel a great distance. meals). have increased at a rate frequently greater than that of . FTF meetings may be an inefficient and costly way to conduct business. airfare. However.Face-to-face (FTF) meetings Meetings are an important part of the business transactions. travel-related costs (lodging. Over the past few years. This is because face-to-face (FTF) interaction is the traditional standard on which we base our communication with clientele groups and advisory boards.

.An alternative meeting format An alternative meeting format called teleconferencing may be a solution.

Teleconferencing Teleconferencing is interactive group communication (three or more people in two or more locations) through an electronic medium. . teleconferencing can bring people together under one roof even though they're separated by hundreds of miles. In general terms.

Great development in 50 years
Teleconferencing was first introduced in

the 1960's with American Telephone and Telegraph's Picturephone. At that time, however, no demand existed for the new technology. Travel costs were reasonable and consumers were unwilling to pay the monthly service charge for using the picturephone, which was regarded as more of a novelty than as an actual means for everyday communication. But things have changed in the past 10

Basic Types
1. Video conferencing-television-like

communication augmented with sound. 2. Computer conferencing-printed communication through keyboard terminals. 3. Audio-conferencing - verbal communication via the telephone with optional capacity for telewriting or telecopying.

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In fact. teleconferencing can reduce national business travel-associated costs by about 30% annually-a $4.Advantages One of the major advantages of teleconferencing is its potential to reduce the cost of group meetings.5 billion savings. . Savings come primarily from reduced travel costs.

meetings are shorter and more oriented to the primary purpose of the meeting. . therefore. Some routine meetings are more effective since one can audioconference from any location equipped with a telephone. Communication between the home office and field staffs is maximized. Socializing is minimal compared to an FTF meeting. Follow-up to earlier meetings can be done with relative ease and little expense.Several other advantages: People (including outside guest speakers) who wouldn't normally attend a distant FTF meeting can participate.

•It's particularly satisfactory for simple problem solving. information exchange. •Group members participate more equally in wellmoderated teleconferences than in an FTF meeting.•Participants are generally better prepared than for FTF meetings. and procedural tasks. .

and meeting skills. the medium itself. Lack of participant familiarity with the equipment.Disadvantages Technical failures with equipment. less easy to create an atmosphere of group rapport. such as negotiation or bargaining. Impersonal. Unsatisfactory for complex interpersonal communication. . including connections that aren't made.

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one-to-one. social interaction not possible.•Acoustical problems within the teleconferencing rooms. . •Difficulty in determining participant speaking order. •Greater participant preparation and preparation time needed. frequently one person monopolizes the meeting. •Informal.

it may also be easier for us to miscommunicate. . Although it may be easier for us to communicate with teleconferencing.Pros & Cons Teleconferencing can only facilitate the linking of people-it does not alter the complexity of group communication.

more money to devote to other activities. teleconferencing for all it's worth can never totally replace FTF meetings. Yet. FTF interaction is an important part of human communication.The increased efficiency of human communication Teleconferencing has vast potential for increasing the efficiency of human communication. It means less time away from home. . and more time to spend on other projects.

Ready to do your share? .