Ethiopian Civil Service University

College of Urban Development & Engineering

Course Title: Project Management

Module Code: UIPM: 7091

By: Goitom Abraha(PhD)

Week1 One
Overview Project Management

2
 The Concept of Project Management
• The concept project as it is directed work that is aimed at achieving
specific goals within a defined budget and schedule.
• One has to define where he or she is going and how you will get there.
• Most importantly, you want to get consensus from parties who will be
involved in the project as well as those who will benefit from the
project.
• It is a specific activity, with a specific starting point and ending that
intended to accomplish the specific objectives.
• A project is a proposal prepared for you, for someone else, for a whole
community even for a country.
• Therefore, a project is any work that happens only once, has a clear
beginning and end, and is intended to create a unique product ,
knowledge or service.
•
 The Concept of Project Management…..Contn’d
• Project is the investment of capital in a time-bound intervention to
create productive assets. In this regard capital refers to physical,
financial, and human resources.
• Elements of the project include the following points:
• Purpose of the projects from diverse points of views;
• Scope of the projects: what will be included and excluded;
• Roles and responsibilities of departments and business units in the
projects;
• Availability of resources to support the projects;
• Budget and schedule for the projects;
• Likely benefits that will occur when the work is completed.

4
 Elements of the Project……Contn’d
• The Ethiopian government is constructing one of the most
expensive and huge hydroelectric dam project entitled “The
Grand Renaissance Dam”. The given example illustrates the
elements of a project :
• The project entails a clear task(purpose): constructing the dam to
generate to generate hydroelectric of more than 6000 MW ;
• A set of time: the time framework needed to accomplish the dam
(5 to 7 years);
• A budget: an estimated cost of constructing the dam (78 to 80
billion ETB);
• Beneficiaries: the people of Ethiopia as domestic users and other
neighboring countries;
• Stakeholders: the government of the country, the people of
Ethiopia, Engineers, diverse advisors, different NGOs working in
close collaboration with the country. 5
Elements of the Project…….Cont’d
• Elements of project are interdependent set, means a
change in one factor cause a change in another.

6
 Elements of the Project…….Cont’d
• Scope : Defines the boundaries of the project
• It tell what will be done and what will not be done
• Often referred as functional specification or statement of
work(SOW)
• Quality: Product quality –quality of deliverables
• Process quality-quality of the project management process
itself
• Cost: The money spent for doing the project
• Also called project budget
• Time : Deadline when the project must be completed

• Resources:
• Assets such as people, equipment, physical facilities,
inventories 7
 Elements of the Project…….Cont’d
• Generally speaking, projects are different from standard business
operation activity as they:
• Have defined timescale. Projects have a clearly specified start and
end date within which the deliverables must be produced to meet
a specified customer requirement.
• Have an approved budget. Projects are allocated a level of
financial expenditure within which the deliverables must be
produced to meet a specified customer requirement.
• Have limited resources. At the start of a project an agreed amount
of labor, equipment and materials is allocated to the project.
• Involve an element of risk. Projects entail a level of uncertainty
and therefore carry business risk.
• Achieve objective. The purpose of a project, typically, is to
improve an organization through the implementation of business
change. 8
 Project vs Program
• A project is a singular effort of defined duration,
whereas a program is comprised of a collection of
projects.
• Projects have starting and ending time. On the other
hand, programs do not have starting and ending time
and are definitely longer. As they set out to deliver more
stuff, they take longer time.
• The program team are supervising and coordinating the
work on a number of projects.
• Programs are comprised of subprograms, projects, or
other work that are managed in a coordinated fashion in
support of the portfolio.
• A program implies a set of projects which are linked to one
another, in a sequential manner to attain the combined benefits.
 Project vs Program
Projects
Project is well-defined set of specific
activities. Usually represents a single
objective
The components of projects are smaller
tasks/activities
Strictness in duration of start and end of
the project and has definite time frame
Objectives are crystal clear and are well-
defined at all levels
Based on certain goals and objectives
Less complex and lower uncertainty
Less vulnerable to market changes and
country policies
Highly organized in all aspects
Programs
Program is a collective set of multiple
projects
The components of programs are
projects
Comparatively less strict in context to
time
Objectives may not be crystal clear and
some of the objectives may vary in due
course of time
It is based on broad vision and mission
Involves high level of complexity and
uncertainty
It is vulnerable to major changes in the
market and country policies
It is less organized compared to projects
 Project Management
• Successful projects require effective management.
• Project Management is the use of knowledge, skills,
tools, and techniques to plan and implement activities to
meet or exceed stakeholder needs and expectations from
a project.
• Project managers must have skills like: leadership,
motivation, communication, organization, prioritization,
and problem-solving.
• A wide variety of project management tools and
techniques together with your creativity and hard work -
will provide the foundation for a successful learning
initiative. 11
 Project Manager
• The project manager, sometimes referred to as the project
coordinator or leader, manages the details of the project on a
day-to-day basis.
• A project manager is the person responsible for leading a project
from its inception to execution.
• This includes planning, execution and managing the people,
resources and scope of the project.
• Project managers must have the discipline to create clear and
attainable objectives and to see them through to successful
completion.
• The project manager has full responsibility and authority to
complete the assigned project.
• A project manager is therefore responsible for ensuring a project
delivers on its intended output in line with a defined time frame
and budget. 12
 Project Manager…..Cont’d
• Project managers play the lead role in planning, executing,
monitoring, controlling and closing projects.
• Project Managers need to focus on the deliverables of their
project which must be achieved within certain cost and time
constraints.
• This is an ongoing challenge that requires an understanding of the
broader contextual environment of the project and the ability to
balance conflicting demands between:
• Available resources and expectations;
• Differing stakeholder priorities;
• Identified needs and project scope;
• Quality and quantity.
 Project Managers are accountable for the entire project scope,
project team, resources, and the success or failure of the project.
 Project Manager…..Cont’d
Role of Project Manager
• Lead the team who are responsible for achieving the project
objectives.
• Have the responsibility to satisfy the needs of all stakeholders
• Focuses on the specified project objectives
• Controls the assigned project resources
• Manages the elements(scope, schedule, cost, quality, etc.) of
the individual projects
Competencies of project manager
• Knowledge - what the project manager knows about project
management.
• Performance - what the project manager is able to do or
accomplish while applying his or her project management
knowledge.
• Personal - how the project manager behaves when performing 14
the project or related activity.
 Project Manager…Cont’d
•A project manager, with the help of their team, is charged with
multiple responsibilities that span the five project phases of a
project life cycle (initiating, planning, executing, monitoring and
closing).
• Highly effective project managers are strategic business partners
fully vested in organizational success.
Generally, highly effective project managers:
• Become a strategic business partner
• Encourage and recognize the valuable contributions of others
• Respect and motivate stakeholders
• Stress integrity and accountability and
• Are fully vested in the success of the project.

15
Project Manager…Cont’d

Interpersonal skill of project manager

 Leadership
 Negotiation
 Team Building
 Trust building
 Motivation
 Conflict management
 Communication
 Coaching
 Influencing
 Decision making
 Political and cultural
awareness

16
 Project Management Structure
• As we know, an organization could be defined as a group of
persons who come together to accomplish set goals; in order to
successfully achieve those set goals, a project manager would
need to familiarize himself with the project management office
structure.
• An organizational structure could be described as the official line
of authority and control within an organization.
• Project management structures tell us how reporting relationships
work in a particular organization.
• Misaligned project management teams or organizations create a
negative impact on the outcome of a project.
• This is simply because the organizational structure has an
influence on the authority of the project manager, thereby
affecting how projects are run.
17
 Types of Project Management Structures
• Project management structure is very vital to the success of any
project team; an organization or project team that is structured
gives support to the work that’s being done.
• The way your organization is structured influences how you
manage and run projects.
• The project management organizational structure analyzed from
two angles; in terms of who the project leader is and who is
responsible for decision making where the project is concerned.
• There are three common organizational structures, and project
managers work in all of them.
Functional Organizational Structure.
Projectized Organization Structure.
Matrix Organizational Structure – This can be further broken down
into – Balanced matrix, Strong Matrix, and Weak Matrix 18
 Functional Organizational Structure
• Functional organizations are structured around the organization's
primary functions. Examples of functions within a company are:
Advertising, Engineering, Human Resources and Manufacturing.
• A functional organizational structure is a structure used to organize
workers. They are grouped based on their specific skills and
knowledge.
• In a functional organization, every employee is positioned within only
one function and has one manager they report to, the Functional
Manager. the functional manager has more authority than the project
manager.
• The Functional Manager assigns and manages the employees work
and handles administrative tasks such as employee compensation.
• In a functional organizational structure, you would find the
components of a hierarchy system where authority-driven decisions
on budget, schedule, and equipment rest on the shoulders of the 19
functional manager.
 Functional Organizational Structure…..Cont’d
• It vertically structures each department with roles from the president
to finance and sales departments, to customer service, to employees
assigned to one product or service. Functional organizations contain
specialized units that report to a single authority, usually called top
management.
• What would you find, however, is that the work is broken down into
departments such as the human resource department, sales
department, finance, public relations, administration.
• This type of organizational structure is that employees appear to be
more skilled in their respective departments, thereby leading to
greater work efficiency.
• Workers within each functional department communicate with each
other exclusively, and then department heads communicate with
each other.
• On the downside, the cross-departmental communication becomes
poor and the high level of bureaucracy could affect decision-making
negatively.
Functional Organizational Structure……Cont’d

Fig 1.Functional organization

21
 Disadvantage of Functional
Advantage of
Organization
Functional
•Project managers have little to no
Organization formal authority.
•Enduring •Projects are rarely given high priority
organizational •Teamwork is not emphasized.
structure. •The hierarchical structure causes
•Clear career path with communication, problem resolution, and
separation of functions decision making to be slow.
•skills specialty to •There is a lack of customer focus.
flourish. •Project team members are loyal to the
•One supervisor with a functional manager rather than to the
clear chain of project or the customer.
command.
 Projectized(Project-based ) Organizational
Structure
• A projectized organization structure is designed or set up in a
way that the project manager is on the top of the hierarchy and
has the full power in any decision that is involved in the project.
• The team members directly report to him or her and all the tasks
are concentrated towards the project.
• Project-based organizations are structured around projects and not
functions.
• This type of structure is also called a projectized organizational
structure.
• In a project-based organization most of the organization's
resources are involved in project work.
• Project Managers have high levels of independence and authority
for the project and control the project resources.
23
Projectized Organization

Fig.2 Projectized organization

24
 Projectized Organization…Cont’d
• Advantages
• Project manager has full line of authority
• All members of the project team are responsible to the project
• The project manager ability to make swift decision is high.
• Structurally simple and flexible
• Support holistic approach to the project
• Effective and efficient for larger projects
• Resource available as needed
• Disadvantages
• Duplication efforts.
• Expensive for small projects.
• Specialists may have limited technological depth. 25
 Matrix Organizational Structure
• Matrix organizations blend features of project-based and functional
organizational structures.
• In a dynamic environment of organization , then this might be the
right structure to run with it and it promotes greater efficiency,
helping the organization respond to customer demands or changes
in the marketplace, faster.
• This is easily achieved because while the project manager exhibits
project authority in a horizontal manner, the functional manager
does so in a vertical, flowing downwards.
• The project manager could be responsible for handling project
schedule or budget while the functional manager would be
responsible for outlining and distributing responsibilities, and
overseeing the performance of the equipment.
• The key challenge with a matrix organization is that every employee
has two (or more) managers they report to, their Functional
Manager and the Project Manager.
Matrix Organizational Structure…Cont’d

• Figure 3: Matrix Organizational Structure

27
 Matrix Organizational Structure…Cont’d
• There are three types of matrix organizational structure namely: weak
matrix structure, balanced matrix organization and strong matrix
organizational structure .
• Weak matrix structure: this is very similar to a functional organization,
with the role of project manager as a coordinator or facilitator; in
other words, this person both helps and coordinates, meaning they
are unable to take personal decisions but can interact with all the
functional areas involved in the project.
• Balanced matrix structure: project managers have with greater
autonomy than in a weak matrix structure but who is not given full
authority over the project, especially its funding.
• Strong matrix structure: This shares many characteristics with
projectized organization because it has a full-time project manager
and administrative team without that necessarily changing the
functional structure. Project managers have full authority over their
projects. 28
 Matrix Organizational Structure…Cont’d
• For instance, the strong matrix organizational structure
has some similarities with that of a projectized
organizational structure in the sense that the project
manager is responsible for a project.
• If the organization is running a weak matrix structure,
then the project authority would fall to the hands of a
functional manager as it is in a functional organization.
• Interestingly enough, in a balanced matrix organization,
both the project manager and the functional manager
shares equal authority for the project.

29
 Weak Matrix Organizational Structure
• A weak matrix organizational structure maintains many of
the features of the functional organizational structure.
• The role of the Project Manager is more that of a Project
Coordinator.
• In weak matrix organizations, the project managers have
limited authority. Their role is part-time and no
administrative staff report to them.
• Their ability to make or enforce decisions is low and most of
the authority remains with the Functional Manager.

30
Weak Matrix Organization…Cont’d

Fig.4 .Weak Matrix Organization

31
 Balanced Matrix Organizational Structure
• In balanced matrix organizations, project and
functional managers share the authority.
• A balanced matrix organizational structure recognizes
the need for a Project Manager.
• However, the Project Manager does not have full
authority over the project, project staff or project
budget.

32
Balanced Matrix Organization…Cont’d

Fig.5 .Balanced Matrix Organization

33
 Strong Matrix Organizational Structure
• A strong matrix organizational structure has many of
the features of the projectized organizational structure.
• They have full-time Project Managers and project
administrative staff.
• Project Managers have considerable authority over the
project in this organzational structure.

34
Strong Matrix Organization …Cont’d

Fig.6. Strong Matrix Organization

35
Matrix Organizational Structure…Cont’d
Advantages Disadvantages

• It allows efficient utilization of resources • Dual reporting

(no idle time). relationship (have two
• Allows for fast response upon problem bosses),which can cause
identification anxiety and conflict over
• It provides a core of functional expertise work priorities.
that is available to all projects. • Conflicts will arise
• Knowledge stays with the company, between project
ready to be used on future projects. managers and functional
• People experience greater learning and managers regarding
growth, and their knowledge and skills priorities.
are transferred from project to project.

36
Comparing Organizational Structures

37
How Organizational Structure Influences Project
Management
• Two of the key project aspects affected by organizational
structure types are Project Manager Authority and Resource
Availability.

Organizational Structure Spectrum

• As you move across the spectrum from Functional to Matrix to
Project-Based organizational structure types, the organization
will move from favoring ongoing operations to favoring projects.
38
 How Organizational Structure Influences Project
Management….Cont’d
• On the left side of the spectrum are Functional Organizational
Structures. As a Project Manager, you will have limited positional
authority in these type of organizations.
• You will need to rely on expert authority and referent authority to
get project tasks completed.
• Because of this, you will need to develop your influencing and
negotiating skills if you want to be successful.
• From a Resource Availability perspective, you will be dependent
on the Functional Managers in your organization to provide you
with resources.

39
 How Organizational Structure Influences Project
Management….Cont’d
• On the right side of the spectrum are Project-Based
Organizations.
• As a Project Manager, you will have more positional authority the
further right your project sits on the spectrum.
• This doesn't mean you can just command others, but you will
have more formal authority for getting project tasks completed.
• From a Resource Availability perspective, you will also have
greater control over your project resources since they will be
more likely to directly report to you and not to a functional
manager.
• Understanding what type of organizational structure used by your
company will help you determine how you should manage your
project. 40
How Organizational Structure Influences Project
Management….Cont’d
• In spite of the fact that matrix structures are highly
correlated with more mature organizations, it’s
important to be unbiased about which organizational
structures might be a better fit for each situation.
• In certain organizations with a lean approach to
management a purely project-based structure may
work perfectly.
• In the end, the nature of the activity, objectives,
corporate culture and the demands of new customers
will have a strong say over which structure should be
chosen.
41
Thank you

42