Project Management

This book is a part of the course by Jaipur National University, Jaipur.This book contains the course content for Project Management.

JNU, JaipurFirst Edition 2013

The content in the book is copyright of JNU. All rights reserved.No part of the content may in any form or by any electronic, mechanical, photocopying, recording, or any other means be reproduced, stored in a retrieval system or be broadcast or transmitted without the prior permission of the publisher.

JNU makes reasonable endeavours to ensure content is current and accurate. JNU reserves the right to alter the content whenever the need arises, and to vary it at any time without prior notice.

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Index

ContentI. ...................................................................... II

List of FiguresII. ..........................................................VI

List of TablesIII. ......................................................... VII

AbbreviationsIV. ......................................................VIII

Case StudyV. ................................................................ 75

BibliographyVI. ........................................................... 79

Self Assessment AnswersVII. ..................................... 80

Book at a Glance

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Contents

Chapter I ....................................................................................................................................................... 1Principles of Project Management ............................................................................................................. 1Aim ................................................................................................................................................................ 1Objectives ...................................................................................................................................................... 1Learning outcome .......................................................................................................................................... 11.1 Introduction .............................................................................................................................................. 21.2 Defining Project and Project Management .............................................................................................. 21.3 Need for Project Management ................................................................................................................. 21.4 Basic Characteristics of Projects .............................................................................................................. 21.5 The Project Life Cycle ............................................................................................................................. 21.6 The Project Manager ................................................................................................................................ 31.7 Knowledge Areas, Process and Connection ............................................................................................. 31.8 Phases of Project Management Life Cycle .............................................................................................. 41.9 Project Management Processes ................................................................................................................ 51.10 Project Failure ........................................................................................................................................ 61.11 Essentials of Project Management ......................................................................................................... 7 1.11.1 What is a Project? .................................................................................................................. 7 1.11.2 Project parameters for negotiation ......................................................................................... 7 1.11.3 How does project management “Add Value”? ....................................................................... 71.12 Project Management Functions .............................................................................................................. 8Summary ....................................................................................................................................................... 9References ..................................................................................................................................................... 9Recommended Reading ............................................................................................................................... 9Self Assessment ........................................................................................................................................... 10

Chapter II ................................................................................................................................................... 12Project Planning and Processes ................................................................................................................ 12Aim .............................................................................................................................................................. 12Objectives .................................................................................................................................................... 12Learning outcome ........................................................................................................................................ 122.1 Introduction ............................................................................................................................................ 132.2 Project Life Cycle and Process Flows ................................................................................................... 132.3 Characteristics ........................................................................................................................................ 142.4 Project Planning and Scoping ................................................................................................................ 142.5 The main project planning processes ..................................................................................................... 15 2.5.1 The identification process - The main steps in the identification process of any

projects are as follows:........................................................................................................... 15 2.5.2 The Review Process ............................................................................................................... 15 2.5.3 The Analysis Process ............................................................................................................. 152.6 Planning Tools and Estimation ............................................................................................................. 16 2.6.1 Planning Tools ...................................................................................................................... 16 2.6.2 Planning Estimation ............................................................................................................... 182.7 Estimation Approaches and estimation tools ........................................................................................ 19 2.7.1 Estimation Approaches .......................................................................................................... 19 2.7.2 Estimation Tools .................................................................................................................... 192.8 Risk Management .................................................................................................................................. 20 2.8.1 Components ........................................................................................................................... 20Summary ..................................................................................................................................................... 21References ................................................................................................................................................... 21Recommended Reading ............................................................................................................................. 21Self Assessment ........................................................................................................................................... 22

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Chapter III .................................................................................................................................................. 24Project Management Essentials ................................................................................................................ 24Aim .............................................................................................................................................................. 24Objectives .................................................................................................................................................... 24Learning outcome ........................................................................................................................................ 243.1 Introduction ............................................................................................................................................ 253.2 Characteristics of Project Mindset ......................................................................................................... 253.3 Process Groups ....................................................................................................................................... 25 3.3.1 Process Interactions ............................................................................................................... 25 3.3.2 Processes Interaction Initiating processes .............................................................................. 253.4 Customization ........................................................................................................................................ 263.5 Project Monitoring and Control ............................................................................................................. 263.6 Project Progress Control ........................................................................................................................ 27 3.6.1 Approvals ............................................................................................................................... 28 3.6.2 Change Control ...................................................................................................................... 28 3.6.3 Changing Project Management Process ................................................................................ 28 3.6.4 Tools for changing a Process ................................................................................................. 29 3.6.5 Project Closure ....................................................................................................................... 29 3.6.6 Completion of activities and benefits .................................................................................... 29 3.6.7 Post Implementation Review ................................................................................................. 29 3.6.8 Tools for Post Implementation Review .................................................................................. 30 3.6.9 Final project reporting and documentation ............................................................................ 30Summary ..................................................................................................................................................... 31References ................................................................................................................................................... 31Recommended Reading ............................................................................................................................. 31Self Assessment ........................................................................................................................................... 32

Chapter IV .................................................................................................................................................. 34Concepts of Managing Conflict, Quality and Information System ....................................................... 34Aim .............................................................................................................................................................. 34Objectives .................................................................................................................................................... 34Learning outcome ........................................................................................................................................ 344.1 Introduction ............................................................................................................................................ 354.2 Concept of Managing Conflicts, Quality and the Information System ................................................. 35 4.2.1 Conflict Management ............................................................................................................ 35 4.2.2 Communication Requirement and Capabilities ..................................................................... 35 4.2.3 Quality Management .............................................................................................................. 35 4.2.4 Project Management Information System ............................................................................. 354.3 Modern Trends I Project Management .................................................................................................. 364.4 Perception .............................................................................................................................................. 36 4.4.1 Project Development Process Cycle ...................................................................................... 36 4.4.2 Macro Issues .......................................................................................................................... 37 4.4.2.1 Evolving Key Successes Factors Upfront ............................................................... 37 4.4.2.2 Empowerment Title ................................................................................................. 38 4.4.2.3 Partnering Decision Making ................................................................................... 38 4.4.2.4 Management by Exception ...................................................................................... 38 4.4.3 Knowledge Factor (K) ........................................................................................................... 384.5 The Modern Mantra of Project Management ......................................................................................... 394.6 New Horizon in Project management .................................................................................................... 39Summary ..................................................................................................................................................... 41References ................................................................................................................................................... 41Recommended Reading ............................................................................................................................. 41Self Assessment .......................................................................................................................................... 42

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Chapter V .................................................................................................................................................... 44Project Performance through Project management Office and Human Resource ............................. 44Aim .............................................................................................................................................................. 44Objectives .................................................................................................................................................... 44Learning outcome ........................................................................................................................................ 445.1 Introduction ............................................................................................................................................ 45 5.1.1 Project Management Office ................................................................................................... 455.2 Improvement of Performance ................................................................................................................ 45 5.2.1 Reviews and their purpose ..................................................................................................... 455.3 Project Manager Teams .......................................................................................................................... 465.4 Professional Responsibility .................................................................................................................... 465.5 Human Resource Management .............................................................................................................. 465.6 Personnel Productivity ........................................................................................................................... 47 5.6.1 Assessment of personnel Productivity ................................................................................... 475.7 Team Work and Interpersonal Behavior................................................................................................. 485.8 Traits of Successful teams ...................................................................................................................... 48Summary ..................................................................................................................................................... 49References ................................................................................................................................................... 49Recommended Reading ............................................................................................................................. 49Self Assessment ........................................................................................................................................... 50

Chapter VI .................................................................................................................................................. 52Project Development and Modern Trends in Project Management Perception .................................. 52Aim .............................................................................................................................................................. 52Objectives .................................................................................................................................................... 52Learning outcome ........................................................................................................................................ 526.1 Introduction ............................................................................................................................................ 536.2 Project Development Process Cycle ...................................................................................................... 536.3 Modern Trends in Project Management Perception ............................................................................... 546.4 Recent Revolutions in Project Management .......................................................................................... 55Summary ..................................................................................................................................................... 56References ................................................................................................................................................... 56Recommended Reading ............................................................................................................................. 56Self-Assessment .......................................................................................................................................... 57

Chapter VII ................................................................................................................................................ 59Organizational Issues in Project Management ....................................................................................... 59Aim .............................................................................................................................................................. 59Objectives .................................................................................................................................................... 59Learning outcome ........................................................................................................................................ 597.1 Introduction ............................................................................................................................................ 607.2 Organizational Change ........................................................................................................................... 60 7.2.1 Evolutionary change .............................................................................................................. 60 7.2.2 Revolutionary Change ........................................................................................................... 607.3 Traits Of professional manager .............................................................................................................. 617.4 Bringing about Organizational Change in the Project Management Scenario ...................................... 64Summary ..................................................................................................................................................... 65References ................................................................................................................................................... 65Recommended Reading ............................................................................................................................. 65Self Assessment ........................................................................................................................................... 66

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Chapter VIII ............................................................................................................................................... 68Project Risk Management ........................................................................................................................ 68Aim ............................................................................................................................................................. 68Objectives .................................................................................................................................................... 68Learning outcome ........................................................................................................................................ 688.1 Introduction ............................................................................................................................................ 698.2 Planning for Project Surprises-coping with Risk ................................................................................... 69 8.2.1 When to Perform Risk management ...................................................................................... 698.3 Risk Management Planning ................................................................................................................... 708.4 Risk Management Process ..................................................................................................................... 708.5 Overview of Risk Management ............................................................................................................. 71Summary ..................................................................................................................................................... 72References ................................................................................................................................................... 72Recommended Reading ............................................................................................................................. 72Self Assessment .......................................................................................................................................... 73

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List of Figures

Fig. 1.1 Connection between process groups in a phase ................................................................................ 3Fig. 1.2 Knowledge area and processes ......................................................................................................... 4Fig. 2.1 Development Plan, Project Tracking and Oversight ...................................................................... 17

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List of Tables

Table 2.1 Project characteristics................................................................................................................... 14Table 2.2 Project Organization .................................................................................................................... 16Table 3.1 Characteristics of project mindset ................................................................................................ 25

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Abbreviations

CM - ConfigurationManagementCMM - Capability Maturity ModelCMS - Changes Management System ISO - International Organization for StandardizationSEI - Software Engineering InstituteTQM - Total Quality ManagementWBS - Work breakdown Structure

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Chapter I

Principles of Project Management

Aim

The aim of this chapter is to:

explain the concept of Project management•

highlight the objectives of project life cycle•

elucidate the need for project management•

Objectives

The objectives of this chapter are to:

explain the nature of project•

elucidate the concept of project and project management•

explain the process of project management•

highlight the importance of project management in business•

Learning outcome

At the end of this chapter, the students will be able to:

understand the basics of project management•

explain the phases of project management•

get an overview of project management function•

Project Management

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1.1 IntroductionThe economy of India has been growing over the last few years. Lots of industries have come up in various sectors creating a market boom. Lots of money is getting invested in various projects. In this perspective, it becomes very important for the managers to manage projects effectively in order to maximize returns. Gradually project management has moved into computing industry with the development of hardware to software.

1.2 Defining Project and Project ManagementProject: A project is a set of activities arranged in an ordered network aiming at achieving the desired goals. •Upon completion of all these activities, the goals of the project are expected to be achieved.Management: Management is the technique of understanding the problems and needs and controlling the use •of resources (such as cost, time, man power, material and so on).Project Management: It is an art of controlling the cost, time, manpower, hardware and software resources •involved in a project.Project cycle: Basically a project cycle consists of the various activities of operations, resources and limitations •imposed on them.Process: A process is a part of the project consisting of simple and routine instruction to achieve a desired result. •A process is responsible to bring about changes in the input fed to the process and give out desired outputs.Resources: It refers to manpower, machinery, money and materials required in a project. •

1.3 Need for Project ManagementProject management is necessary because of the reasons mentioned below -

a project requires huge investments which should not go waste•a loss in any project will have direct and indirect impact on the society•prevent failure in projects•the scope of the project activity may change in future•the technology used may change during project execution•consequences of negativity in problems related to the project could be very serious•change in economic conditions may affect a project•

1.4 Basic Characteristics of ProjectsThe dividing line between project processes depends on whether the organization repeats an activity often enough for it, to become a routine.

Here are some of the characteristics of projects as per ISO 1006:20:•unique, non-representative phases consisting of processes and activities•have some degree of risk and uncertainty•expectedtodeliverspecifiedqualityresultswithinpre-determinedparameters•haveplannedstartandfinishdateswithinpre-specifiedcostandresourcesconstraints•maybeoflongerdurationandsubjectedtochangeininternalandexternalinfluencesovertime•

1.5 The Project Life CycleAll projects have to go through some basic steps in the process of conceptualizing, designing, developing and putting in operation the project’s deliverables or outputs. Different organizations and authors tend to develop their own way ofdefiningthedifferentprojectlifecycle.Alifecycleofprojectconsistsof:

understanding the scope of project•framing the objectives of project•formulation and planning various activities•

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project execution•project monitoring and controlling project resources•

1.6 The Project ManagerThe Project manager is an important team member in an organization. The project manager is a person who manages the projects. This individual predicts the difference between the project’s success and failure rates. The project manager is responsible to carry all the tasks of a project. There are few other responsibilities the project managers have to carry, such as:

budgeting and cost control•scheduling tasks•allocating resources•tracking project expenditures•ensuring technical quality•manage relations with customer and company•

Life cycle of a project manager overlaps with the development life cycle within a project. Duties of a project manager start before the development and continue till the delivery of the product.

1.7 Knowledge Areas, Process and ConnectionThe main knowledge areas and processes in project management, their relationships and relationships with the processgroupsareshowninthefigurebelow.

Fig. 1.1 Connection between process groups in a phase

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Resource Requirement

Probability

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Fig. 1.2 Knowledge area and processes

1.8 Phases of Project Management Life CycleThe various phases in project management life cycle are as follows:

Analysis and Evaluation Phases•it starts with receiving a request to analyze the problem from the customer �the project manager conducts the analysis of the problem and submits a detailed report to the top �managementthe report should consist of what the problem is, ways of solving the problem, the objectives to be achieved, �and the success rate of achieving the goals

Marketing Phases•a project proposal is prepared by a group of people including the project manager �this proposal has to contain the strategies adopted to make the product reach the costumers �

Design Phase•

Input receivedProject’s feasibility study•preliminary project evaluation•project proposal•customers interviews•

Output producedsystemdesignspecification•programfunctionalspecification•programdesignspecification•project plan•

Filling vacancies

The job The Candidate

The Selection

The need Job specification

budget The job Advert content criteria venue terms

options timing Advert location

Review CVs interview induction

approval person

decide

Short list tour relocation

attracting Short listing

The interview

Post selection

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Inspecting, testing and delivery•during this phase, the project teams work under the guidance of the project manager �the project manager ensures the team implements the project designs accurately �the project has to be tracked or mentioned through its cost, manpower and schedule �managing the customer �marketing the future work �perform quality control work �

Post completion analysis phase•staff performance is to be evaluated �documentation of lessons from the project �project’s feedback analysis �project execution report �analysis of problems encountered during the project �

1.9 Project Management ProcessesProject management consists of the following interacting processes organized in groups:

Project ProcessesAprojectprocessisaseriesofactivitiesperformedtoachievethetarget.Projectprocessisclassifiedintotwomaincategories:

Project’smanagementprocess:Project’smanagementprocessisdefinedbyanorganization.Itdescribesand•organizes the work of the project.Productorientedprocess:This isdefinedby the lifecycle. It specifiesandcreatesproductsand its related•works.

Process GroupsIt consists of the following:

initiating processes – recognizing the start and establishing commitment•planning processes - devising and maintaining a workable scheme to accomplish the business need•executive processes - coordinating with people to carry out plan•controlling processes - monitoring and measuring progress and taking remedial action•closing processes - formalizing acceptance and bringing project to a systematic end•

Process InteractionsThe individual processes are linked by inputs and outputs.•Inputs: It refers to the client documents which are converted to action plans need to be acted upon.•Tools and techniques: It refers to the mechanisms applied on to the inputs to create desired outputs.•Outputs: It refers to the documents that are results out of the process.•

Every process is initiated by management group decisions which result in the next phases of the project. These are the sub-categories which as follows:

Planning processes•planning has the major importance �planningismuchmoresignificantcomparedtoplans.Plansarenothing,whatmattersistheplanning �planning processes are highly interdependent �ifthecostisunacceptable,scopeandtimemayberedefined �

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Executive Processes•interaction depends on nature of the work �they are dynamic and dependent on team innovation �

Controlling Processes•measuring project performance �identifying variances from the plan �updating project plans �taking corrective actions �

Closing processes•review of the project �findings �analysis of the project performance with respect to various processes �

CustomizationLarge projects may need details – A detailed project management plan might be necessary to indicate every •detail in the initial stages.Smaller projects may need relatively less details – A detailed plan may not be required in the initial stages.•Process detailsmight change for other reasons–Resource identificationsmight be required for the scope•definition.

1.10 Project FailureA project mainly fails because of one or more of the following reasons:

Incidence of project failure:•project being initiated at random at all levels �project’s objective not in line with business objectives �project’s management is not observed �project manager with no prior experience in the related project �undedicated team �lack of complete support from client �

Factors contributing to project’s success that are not emphasized:•project objectives aligns with business objectives �working within the framework of the project management methodologies �effective scoping, planning, estimation, execution, controls and reviews closely intertwined with quality �proactive approach towards project’s bottlenecks �communication and managing expectations effectively with clients, team members and stake holders �prior experience of project manager in a similar project �

Overview of information and communication technologies in projects includes:•involvementofinformationandcommunicationtechnologiessuchastheWorldWideWeb,e-mails,fiber- �optics and satellitesenable societies to produce, access, adapt and apply information in greater amounts, more rapidly and at �reduced costsoffer enormous opportunities for enchaining business and economic viability �

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Common problems encountered within projects:•no prioritization of project activities from an organization position �mishandling of one or more stages of the project �lessqualified/undedicatedmanpower �absenceofsmoothflowofcommunicationbetweentheinvolvedparties �

1.11 Essentials of Project Management1.11.1 What is a Project?A project may be stated as:

aprogrammerofnon-routineworkbringingaboutabeneficialchange•guide by at least one well-engaged sponsor who has adequate authorities and resources to charter the project •efforthaving a start and an end date•a multi-disciplinary team brought together for the completion of the project•welldefinedscopeofwork•constrained by cost, time and quality•

1.11.2 Project parameters for negotiationDuring the course of a project, a team negotiates for one or more of these:

scope, cost and scheduled objectives•changes in scope, cost or schedules•contracts terms and conditions•resources•

1.11.3 How does project management “Add Value”?Project may be completed with one or more of the following:

stretched deadline•over stressed team•wasted resources•unmet customer functional requirements•overshot budget•

A good project management methodology provides a frame work for the processes. It provides guidelines for the execution of project that increases the chance success of the project to a great extent, and therefore, provides value to the projects. Some of the steps in a good project management are:definetheproject

reduce it to a set of manageable tasks•obtain appropriate and necessary resources•build a team to perform the project work•plan the work and allocate tasks to the resources to monitor and control the work•report progress to senior management and/or the project sponsor•close down the project when completed•review it to ensure the lessons are learnt and widely understood•

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1.12 Project Management FunctionsProjectmanagement can be classified according to the projectmanagement functions.There are six projectmanagement functions, which as follows:

Risk Management: It is intended to eliminate or reduce risks inherent in project work. This can be achieved by •systematic thinking about possible risks, their impacts and ways to limit their likelihood and impact. Project management must control and contain risks if a project is to stand a chance of being successful.Scope Management: It ensures if the changes to the scope of project are decided and authorized with due •consideration of all the relevant aspects. It also deals with ensuring that all the changes in scope are documented and communicated to all those concerned in order to avoid mistakes and confusion.Monitoring and Control: It enables project managers to understand the true status of the project as it progresses •along the course of its lifecycle.Planning: Considering a core task of project management, it deals with sequencing and timing of project activities •to achieve a balance between the objectives of project completion and cost.Everyday Basic and Administration: This includes day to day tasks of project management which are intended •toimprovetheefficiencyandeffectivenessof teammembersbyminimizingwastageof their timeinotherproject activities.Organization and Team: It deals with all the soft people issues such as setting up the project team, interface •within teams and other people etc.

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SummaryProjects need to be managed differently from the day-to-day routine operations because of the temporary nature •of project.The fundamentals of project managements are clearly understood.•Definitionsofproject,projectmanagement,managementprojectlifecycle,resources,scope,projectcostand•process are stated.The primary reasons for using a project management methodology are to increase the likelihood of the project’s •success rate.Projectmanagementisaprocessbywhichprojectsaredefinedandimplementedefficientlyandeffectivelyso•that the desired outcome of the projects is realized speedily, within the constrained resources.Difference between project and operations is the degree of uncertainty and risk involved in them.•Each project has a unique purpose to achieve or a desired output to produce.•Management of any project is directed towards achieving an optimum balance between three interlinked •objectives – quality, cost and time.There are some basic steps of the project management that has to be followed, and is called project life cycle.•Thereareprojectmanagementfunctionsthatareclassifiedaccordingtotheprojectmanagement(suchasrisk•management, scope management, monitoring and controlling, planning, everyday basic and administration and organization and team.There are various other roles of the project manger that are to be followed.•

ReferencesMeredith, J.R. and Mantel, S. J., 2008. • Project Management – A managerial approach, 7th ed., Wiley.Gopalakrishnan, P. and Ramamoorthy, V. E., 2007. • Textbook of Project Management, 1st ed., Macmillan Publishers India.

Recommended ReadingWilliams, M., March 13, 2008,• The Principles Of Project Management, Site Point Publication.Nicholas, J. M. and Steyn, H., February 20, 2008, • Project Management for business, engineering and technology, Butterworth-Heinemann Publication, 3rd ed.Portny, S. E., May 3, 2010,• Project management for dummies, Kindle Publication, 3rd ed.

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Self AssessmentWhich of these is NOT the role of a project manger?1.

Budgeting and cost controla. Allocating resourcesb. Making a teamc. Manage relation with the customer and companyd.

Which of the following does NOT form the phases of project management life cycle?2. Systemdesignspecificationa. Marketingb. Inspecting, testing and deliveryc. Post completion analysisd.

Which of these are NOT project management processes?3. Project processesa. Perform quality control workb. Customizationc. Process interactiond.

Which of the following statements is NOT false?4. The analysis and evaluation phase starts with receiving a request to analyze the problem from the a. manager.Evaluation phase starts with receiving a request to analyze the problem from the team member.b. Evaluation phase starts with receiving a request to analyze the problem from the board of directors.c. Evaluation phase starts with receiving a request to analyze the problem from the accountant.d.

Which of the following statement is NOT false?5. Project feedback analysis and project execution report sis done in pre completions analysis phase of the a. projects.Project feedback analysis and project execution report sis done in post completions analysis phase of the b. organization.Project execution report sis done in post completions analysis phase of the projects.c. Project feedback analysis and project execution report sis done in post completions analysis phase of the d. projects.

A detailed project management plan might be necessary to indicate every detail in __________.6. second stagea. finalstageb. initial stagec. all stagesd.

Communication and managing expectations effectively with ___________ 7. clients, team members and stake holdersa. board of directorsb. stake holdersc. team membersd.

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____________ is achieved by systematically thinking about possible risk, their impact and ways of limiting 8. their likelihood and impact.

Featuresa. Scheduleb. Risk managementc. Qualityd.

_____________ deals with ensuring that the changes to the scope of project are decided and authorized with 9. due consideration of all the relevant aspects.

Resourcesa. Processes controlb. Planningc. Scope managementd.

____________ has the major importance in project management.10. Planninga. Project functionsb. Monitoring and controlc. Risk managementd.

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Chapter II

Project Planning and Processes

Aim

The aim of this chapter is to:

enable the concept of project planning•

enlighten the objectives of project processes•

understands the need of planning in project management•

Objectives

The objectives of this chapter are to:

understandtheprojectlifecycleanditsprocessflows•

highlight the fundamentals of managing the risk involved in the projects•

analyse the tools necessary to plan the resources•

understand the planning estimation•

Learning outcome

At the end of this chapter, the students will be able to:

understand the process of planning•

enlist the components of risk management•

discuss the purpose of estimation•

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2.1 IntroductionIt is well known that all the organizations continue to grow year by year. As there is a need to grow, it becomes •necessary for growing organization to resort proper growth plans. The plan needs to be properly prepared.Itispossibletoprepareproperplansonlyifthemanagerhassufficientknowledgeofvariousprocessofthe•project envisage for growth. The manager has to work on various life cycle stages and apply necessary planning tools to come out with a proper growth plan for the organization.

2.2 Project Life Cycle and Process FlowsThe life cycle means the important phases that are required by any project from start to end of the project. There are various stages in project life cycle such as:

The preparation stage•The project manger along with the associates and team members drafts the outline of the project.•They identify various factors to be taken care of in the project. And based on this, they formulate the plans and •model the activities for execution.Once the budget is prepared, this model is approved and recommended for implementation.•The role and responsibilities stage•During this stage, role and responsibilities of various members are listed out who are involved in the particular •project.The team works on the feasibility reports to assess the project feasibility with respects to time, economic and •technicalities.The factors are based on the risk analysis and uncertainties.•There are various monitoring tools that are set to monitor the project’s progress.•The implementation stage•This stage involves the execution of project as agreed, while carefully monitoring progress and managing •changes.The completion stage involves satisfactory delivery to the customer, products or services.•This is followed by project review to look into various issues which affected the project during the courses of •its execution.

There are some of the key issues at the planning stage of a project that are documented such as:Key stages of project•Project logic diagram•Key stages responsibility chart•Estimates for all key stages•Optimized project Gantt chart•Updated and reviewed project risk log•Risk management forms for new high risks•Projects operating budget•

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2.3 Characteristics

Any project may be considered to have the following characteristics:Characteristics Description

Resource Requirement

During the courses of executing the project, it is seen that the resource requirements increase •from start to an intermediate stage of the project.It further increases at a rapid rate and becomes constant when the project is at its 80% to •95% progress stage.

Funds

Thereafter the project requirement decreases to zero that is when the project comes to an •end.The requirements of funds for the complete execution of the project also follow the same •trend as that of the resources.The two are more or less than the proportional•

Probability of Completion

The probability of completing the project can be estimated based upon the normal •distribution curve.In the initial stage of the project the probability of completing the project is low though •not zero. It gradually increases as the project approaches to an end and the probability of completing the project tends to become 100%.

Risk The risk involved in the project affecting its completion time is high at the initial stage •and low at the later stage of the project.

Design Changes

The project during the course of its progress may be subjected to changes because of some •external factors.Theinfluenceofsuchexternalfactorsontheprojectmayresultinchangesinthedesign•of the project though not very often.It is observed that such changes if any are normally high during the initial stages of the •projectanddecreasesastheprojectapproachesitsfinalstage.

Table 2.1 Project characteristics

2.4 Project Planning and ScopingThepurposeofprojectplanningandscopingistofirstidentifytheprojectworkareasandforcesaffectingtheprojectandthentodefineboundariesoftheproject.

Also, the scoping has to be explicitly stated on the line of the project.

The Planning and scoping should be such that the project manager is able to assess every stage of the project and also enabling the assessment of the quality of the deliverable of the project at every stage.

There are various steps of project scoping. The various characteristics of project scoping include the following:identify the various parametric forces relevant to the project and its stages•enable the team members to work on tools to keep track of the stages and thereby proceed in the planned •manneravoiding areas of problems which may affect the progress of the project•eliminating the factors responsible for including the problem•analyzingthefinancialimplicationsandcostfactoratvariousstagesoftheproject•understanding and developing various designs required at various stage of the project•thescopemayincludeidentificationofkeyareasfromclientsthroughmeetings,discussionsandinterview•providing a base and track to enable alignment of project with the organization and its business objectives•

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findingoutthedimensionsapplicableandnotapplicabletotheproject•list out all limitation, boundary values and constraints in the project•understandtheassumptionsmadeindefiningthescope•

2.5 The main project planning processes2.5.1 The identification process - The main steps in the identification process of any projects are as follows:

identify initial requirements•validate them against the project objectives•identify the criteria for assessing the success of both the end products and products used to create it•identify framework of the solution•prepare a template for the frame work of the solution to illustrate the project feasibility•prepare relevant charts to demonstrate the techniques of executing the project and its different stages•prepareaproperprojectschemaforachievingthedefinedbusinessrequirementsfortheproject•identify training requirement•make a list of training programs necessary for the personnel working on the project•identify the training needs of the individual working in various functions responsible in the project•prepare a training plan and a training calendar•assessthecapabilitiesandskillsofallthoseidentifiedaspartoftheprojectorganization•

2.5.2 The Review Process

Based upon this assessment, establish a training plan to acquaint the project team members with the methodologies, •technologies and business area under studyupdate the project schedule to incorporate scheduled training activities and identify the need to review the •project scopereviewing the project with respect to its stages and progress is necessary, for which the project manager has •toprepareaplanforthereviewandfixanagendatoreviewtheprojectprogressandkeepthereportsreadytodiscuss about the performancereview project scope, the objective statement, non conformances in the project stages and identify the need to •use the project planprepare a proper project plan; the plan should indicate the entire requirement from beginning to end and also •at every stage of the projectprepare a checklist of the items to be monitored and controlled during the course of the execution of the •project

2.5.3 The Analysis Process

compare the actual details with that in the plan with respect to project stages•measure various components of the project and its stages frequently•control the project from deviating and also monitor the performance•the effort and the defects are to be tracked for certain points on how the task; what tools to be used, what reporting •structure and frequency may be decided at various stagesuponidentificationofanyvariance,whateverthestepsaretobetakenshouldbeidentical•root cause analysis for all such problems encountered has to be done•

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2.6 Planning Tools and Estimation

2.6.1 Planning Tools The tools which may be necessary for coordinating a project successfully are the following:

Project OrganizationProcess Skills and Activities

Initiation Prepare an outline project justification, plan andproject•budget Selectionandbriefingoftheprojectteam,assigningroles•and organization Feasibility study-risk and key success factors •

Planning Projectdefinitionandprojectplan•Communicate to the team•

Execution Allocating and monitoring the work and cost•Ensuring work and team cohesion•Reporting progress•

Control Monitoring progress and managing changes •Helping the team to solve project problems•

Close Satisfactory delivery •Compiling lessons from project experiences•

Table 2.2 Project Organization

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Project StructureDevelopment plan, project tracking and oversight

Fig. 2.1 Development Plan, Project Tracking and Oversight

Project Key Personnelidentify those business areas that are within the scope or directly interface with the scope boundary and list •them in “Business Areas” column of the project assignment worksheetidentify the key personnel for each area and list them in the “Person” column of the project assignment •worksheet

Project management teamThe senior management team will be accountable for the project.

identify project sponsor, client representative and technical representative•stage managers – these are the one who plan and manage the project on a day-to day basic for this stage•project coordinator – client coordinator and technical coordinator•clearlydefinethiscoordination,controlactivitiesandidentifythebriefsuitablepersonneltocarrythemout•

Key stakeholdersidentify management level personnel who are critical to the success of the project•the stakeholders are responsible for the documents•

Stage Teamsidentifyappropriatepersonnelrequiredforthestage,definetheteamstructureandappointteamleaders•document the time commitment and responsibilities to be performed by the team members•

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Key resourcesindividuals assigned to a key resource role may work towards gathering “Business key resources” and “Technical •key resources”they are projected coordinators and team invitees•

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

This is the technique to analyze the content of work and cost by breaking it down into its components 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.Eachkey stage comprisesmany tasks identified at the start of planning and later this listwill have to be•validated.WBS is produced by identifying the key elements, breaking each element down into component part and •continuingtobreakdownunitmanageableworkpackageshavebeenidentified.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 for this.•

Task DurationIdentifying lead and lag times helps in working out task duration.

Lead Time:•An amount of time with which a successor task can overlap with its predecessor task. �It is 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. �It is the time after the completion of the predecessor when the start of the successor is delayed. �

2.6.2 Planning EstimationPurpose of Estimation

definetheprojectfunctionalrequirements•not to have surprise on various front-efforts, schedule, cost and ultimately successes of the Endeavour•reasonableestimatestendtobecomeaself-fulfillingprophecy•

Estimating tipsbase estimates made on some analytical, quantitative process than with a number pulled out of thin air•Explain your estimating method to the stakeholders and compare it with what they want. They may not really •have an estimate; it may be a guess or goalif you can’t provide an accurate estimate because there are no written requirements, offer to provide a more •precise estimate after some initial exploration of the project scope and general user requirementspresent a range of estimate; best case, most likely cases and worst cases with the approximate probability of •meeting each onenegotiate for a large team, fewer features, and phased delivery or reduced quality are the ways to achieve an •aggressively accelerated scheduleredo your estimate with some different assumptions of the project size, resources or other factors to see how •you can come to the manager’s shorter goalmake a counter offer in case your estimate does not meet your stakeholder expectation, showing them what •fraction of the system’s functionality could realistically be delivered in the expected time period

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2.7 Estimation Approaches and estimation tools

2.7.1 Estimation ApproachesThere are two types of estimation approaches:Bottom up approach

The bottom up approach consists of the following:Projectmanagerfirstdividestheproductunderdevelopmentintomajormodules•Each module is subdivided into smaller units•Projectmanagerdefinesastandardformanufacturingandself-testingas:•

identify modules in the system and classify them as simple, medium or complex �asmuchaspossible,useeithertheprovidedstandarddefinitionsordefiningfrompastprojects �ifaprojectspecificbaselineexists,gettheaveragebuildeffortforalltypeofprogramsfromthebaseline �ifaprojectspecificbaselinedoesnotexist,useprojecttype,technology,languageandotherattributesto �look for similar projects in process databaseifnosimilarprojectexistsintheprocessdatabaseandnoprojectspecificbaselineexists,refinetheestimates �basedonprojectspecificfactors

Top Down ApproachThe top down approach consist of the following:•get the estimate of the total size of the products in function points.•usingtheproductivitydatafromtheprojectspecificcapabilitybaselinefromthegeneralprocesscapability•baseline,orfromsimilarproject,fixtheproductivitylevelfrotheprojectobtain the overall effort estimate from the productivity and size estimates•use effort distribution data from the process capability baseline or similar project to estimate the effort for the •various phasesrefinetheestimatestakingprojectspecificationfactorsintoconsideration•

2.7.2 Estimation Tools

The various estimation tools that may be used in managing a project are:•Algorithmic model-It consists of one or more algorithms that produce an effort estimate as a function of a •number of variable or cost drivers.Expert judgment- It relies on one or more people who are considered experts in some endeavor related to the •problem at hand.Analogy-Comparison of the proposed project to completed projects of a similar nature whose costs are known. •The organizations process database is a source for historical cost data.Top down-An overall cost estimate for the project is derived from global properties of the product. This •estimate will usually be based on the previous projects and will include the costs of all functions in a project likeintegration,documentation,qualityassuranceandconfigurationmanagement.Bottom up-Each component of the software product is separately estimated and the results are aggregated to •produce an estimate for the overall job.Automated estimation models-A number of computerized models are available which estimate cost and schedule •from user inputs of size and environment cost factors. Most of these are algorithmic models that use components as the measure of size.

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2.8 Risk ManagementRisks are those events or conditions that may occur and whose occurrence has a harmful or negative impact on a project. Risk management aims to identify the risk and then take actions to minimize their effects on the project. Risk management entails additional cost. Hence risk management can be considered cost-effective only if the cost of the risk management is considerably less than the cost incurred of the risk materializes.

2.8.1 ComponentsImportant components in risk management are:

Risk AssessmentIdentify the possible risks and assess the consequences by means of checklists of possible risks, surveys meetings •and brainstorming and review of plans, processes and products.The project manager can also use the process database to get information about risks and risk management on •similar projects.

Risk ControlIdentify the actions needed to minimize the risk consequences. This is also known as risk mitigation.•Develop a risk management plan.•Focus on the highest prioritized risks. Prioritization requires analyzing the possible effects of the risk events in •case it actually occurs.This approach requires a quantitative assessment of the risk probability and the risk consequences.•

Risk RankingRank the risk based on the probability and effects on the project. Example, a high probability, high impact item •will have higher rank than a risk item with a medium probability and high impact.Risk Mitigation-•Select the top few risk items for mitigation and tracking.•Refer to a list of commonly used risk mitigation steps for various risks from the previous risk logs maintained •by the project manager and select suitable risk mitigation steps.The risk mitigation step must be properly executed by incorporating them into the project schedule.•

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SummaryThe life cycle means the important phases that are required by any project from start to end.•There are altogether 3 stages such as the preparation stage, role and responsibilities stage and implementation •stage. There are some important key issues at the planning stage of a project such as key stage of the project, project •logic diagram, key stages responsibility chart, estimates for all key stages and so on.In any project there are some characteristics such as resource requirements, funds, probability of completion •and risk and design changes.The main purpose of project planning and scope is to identify the areas of the project work and identifying the •forcesaffectingtheprojectandthentodefinetheboundariesoftheproject.Themainprojectplanningprocessesconsistsoftheidentificationprocess,thereviewprocessandtheanalysis•process.The tools for planning such as project organization, project structure, project key personnel, project management •team, key stakeholders, stage team, key resources, work breakdown structure and task duration.In task duration, there are two more sub categories such as lead time and lag time.•For planning estimation there are two types such as purpose of estimation and estimating tips.•In project management estimation, approaches and estimation tools are also available such as estimation •approaches and estimation tools.In estimation approaches, there are two types of estimation approaches such as bottom up approach and top •down approach.There are various estimation tools that are used in managing a project. These are algorithmic model, expert •judgment, analogy, top down, bottom up and automated estimation models.Risk management aims to identify the risks and then take action to minimize their effects on the project.•Components of risk management are as follows: risk assessment, risk control, risk ranking and risk •mitigation.

ReferencesChandra, P., 2006. • Projects Planning, Analysis, Selection, Implementation and Review, 6th ed., Tata McGraw Hill.Harold, K., 2003. • Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 8th ed., Wiley.

Recommended ReadingCleland, D.I. July 29, 2004, • Field Guide to project management, Wiley Publication, 2nd ed. Meredith, J.R. and Samuel J. M., December 10, 2008, • Project management: A Managerial approach, Wiley publication, 7th ed. Kuehn, U., March 1, 2006, • Integrated cost and schedule control project management, Management concept publication.

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Self AssessmentWhich of the following sentences is NOT false?1.

All project is undertaken to deliver only services a. Any project is undertaken to deliver either a service or a productb. Any project is undertaken to deliver only products c. Any project is undertaken to deliver only service and not productsd.

Which of the following statements are NOT false?2. Thefivecharacteristicsofaprojectareplanning,resources,objectives,riskandfunds.a. Thefivecharacteristicsofaprojectaredesign,risks,objectives,probabilityandplanningb. Thefivecharacteristicsofaprojectareresourcesrequirement,funds,probabilityofcompletion,riskandc. design changesThefivecharacteristicsofaprojectareobjectives,processflow,projectlifecycle,planningandstagesd.

Which of the following statements are NOT true?3. Avoiding areas of problems which may affect the progress of the project is the only factor to be considered a. for scoping a project.Thepurposeofprojectplanningandscopingistofirstidentifytheareasoftheprojectworkandidentifyingb. theforcesaffectingtheprojectandthentodefinetheboundariesoftheprojectAvoiding areas of problems which may not the progress of the project is the only factor to be considered c. for scoping a projectA problem which may affect the progress of the project is the only factors to be considered for scoping a d. project are avoided

Which of the following statements is NOT false?4. The analysis process is necessary to control the project from deviating and also monitor the performancea. The project management is necessary to control the project from deviating and also monitor the b. performanceThe analysis process is necessary to control the project from risks and also process of the performancec. The analysis process is necessary to control the project from risks and also monitor the performanced.

Which of the following statements is NOT false?5. The estimation approaches are the logarithmic and sequential approachesa. The risk approaches are the logarithmic and sequential approachesb. Theestimationapproachesarethelogarithmicandscientificapproachesc. The estimation approaches are only the logarithmic approachesd.

In the control process the progress is _____________ and the _________ are managed.6. check, exchange a. stopped, started b. monitored, changed c. changed , monitored d.

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The entire process of a project may be considered to be made up on number of sub process placed in different 7. stage called the __________.

planning estimations a. project planning b. work breakdown structure c. task duration d.

___________ is the amount of time, which a successor task can overlap with its predecessor’s task. 8. Lag tile a. Lead time b. Task duration c. Top down approachd.

The project manager can also use the process ___________ to get information about risks and risk management 9. on similar project.

monitoring a. controlling b. changes c. database d.

__________ requires analyzing the possible effects of the risk event in case it actually occurs. 10. Prioritization a. Risk b. Control c. Risk assessment d.

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Chapter III

Project Management Essentials

Aim

The aim of this chapter is to:

explain the concept of project management•

elucidate the process groups•

introduce the concept of customisation•

Objectives

The objectives of this chapter are to:

introduce the concept of project monitoring and control•

elucidate the idea of process control•

enlist project management characteristics•

explain various process groups•

Learning outcome

At the end of this chapter, the students will be able to:

understand the characteristic of project management•

control project process•

understand various process groups•

understand post closure activities along with the way of reporting and documentation•

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3.1 IntroductionProjects are of great importance to all types of organizations. They are the means by which organizations are able to make major improvement in their performance. Projects are also the means by which new products are conceived, developed and brought to market.

Any organizations working on a project have to adhere to some factors that are related to projects.

3.2 Characteristics of Project MindsetSome of the characteristics of project mindset are as following:

Characteristics Description

Time It is possible to improve the pace of the project by reducing the time frame of the process. The mindset is normally to work a comfort mode by stretching the time limits.

ResponsivenessIt refers to quickness of response of an individual. The vibrancy and liveliness of an individual or an organization are proportional to its capability of evolving processes and structure for superior responsiveness time constant.

Information Sharing Information is a power. It is the master key to today’s business. Information sharing is the characteristic of today’s project mindset.

ProcessesProjectmindsetlaysemphasisonflexibleprocesses.Themajordifferenceinaprocessandasystemisinitscapabilitiesofprovidingflexibilitytodifferentsituationalencounters.Flexible processes possess greater capabilities of adaptability.

Structure PlanningStructured planning based on project management life cycle enables one to easily and convenientlyworkaccordingtotheplan.Italsoinvolvesefficientuseofprojectresourcesand prioritization of the activities based on resources planning.

Table 3.1 Characteristics of project mindset

3.3 Process GroupsProcess group consists of the following

Initiating processes: recognition to start and establishing commitment•Planning processes: devising and maintaining a workable scheme to accomplish the business need•Executing processes: coordinating people to carry out plan•Controlling processes: monitoring and measuring progress and taking remedial action•Closing processes: formalizing acceptance and bringing project to an orderly end•

3.3.1 Process InteractionsThe individual processes are linked by inputs and outputsInputs: It refers to the client documents converted to action plans to be acted uponTools and Techniques: It refers to the mechanisms applied on to the inputs to create desired outputsOutputs: It refers to the documents that are results of the process

3.3.2 Processes Interaction Initiating processesEvery process is initiated by management group decision which results in the next phase of the project.

Planning processes•Planning has the major importance•Planning processes are highly interdependent•Ifthecostisunacceptable,scopeandtimeneedtoberedefined•

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Executing ProcessesInteraction depends on the nature of the work•They are dynamic and dependent on team innovations•

Controlling ProcessesMeasuring project performance•Identifying variances from the plan•Updating project plans•Taking corrective action•

Closing ProcessesReview of the project•Findings•Analysis variances fro plan is a part of closing processes•

3.4 CustomizationLarge project may need details: A detailed project management plan might be necessary to indicate every detail •in the initial stages.Smaller project may need relatively less details: A detailed play may not be required in the initial stages.•Process details might change for other reasons: Resources identification might be required for scope •definition.

3.5 Project Monitoring and ControlAny project aimed at delivering a product or a service has to go through phases in a planned manner in order to meet the requirements. It is possible to work according to the project plan by careful monitoring of the project progress. The various steps involved in monitoring and controlling a project from start to end are as follows:

Preliminary WorkThe team members understand the project plans, project stage schedule, progress control, tracking schedule, •summary of the stage cost and related worksheets.All the members have to understand the tolerances in any change and maintain a change control log.•They must realize the need and importance of quality for which they have to follow strictly a quality review •schedule and frequently discuss on the quality agendas.They must understand the stage statue reports, stage and reports, stage end approval reports.•

Project ProgressThe member must keep a track of the project progress and communicate the same to other related member of •the project.They must monitor and control project progress, through the use of regular check points, quality charts, and •statistical tables and control the quality factors which are likely to deviate from expected values as any deviation may result in changes to the stage schedule.The project manger ensures that theses changes are made smooth and organizes review meeting with the project •management group.

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Stage ControlThe manger must establish a project check point cycle.•For this suitable stage version control procedure mat be followed.•The details are to be document stage wise.•Projectfileshavetobefrequentlyupdatedwithsuitableversioncontrolnumberandrevisionstatusshouldbe•

Maintained for each change.Teammembersareidentifiedwhowillexercisecontrolsatvariouspointsoftheproject.•

ResourcesPlan the resources required for various stage of the project.•Brief both the project team and the key resources about the objectives of every stage, planned activities, products, •organization, metrics and project controls.

Quality controlThis is very important in any project. �Quality control is possible if the project members follow the quality charts and norms very strictly. �

Schedule Quality Review•It is recommended that the quality schedule at the beginning of the stage and also ending of every stage. �

Agenda for Quality Review•Create and distribute a quality review agenda specifying the objective, products, logistics, role, responsibilities •and time frame.

Conduct Quality reviewThe quality review is to be conducted in a structured and formal manner. �Quality review should focus on product development and its quality factors. �Focus on whether it meets the prescribed quality standard. �

Follow UPQuality review complete products status revised from ‘In progresses to ‘QR Complete’. �Follow up the actions planned in the strict manner which ensure conformity to the standards. �

Review Quality Control Procedures•Verifythatthequalityobjectivesforeachproductsreappropriatesandthatallparticipantsaresatisfiedboth•the process and its outcome.

3.6 Project Progress ControlMonitorPerformance:Theteammemberslogindetailsofactualstartdate,actualfinishdate,actualhoursworked•per task, estimated hours to complete the task, elapsed time in hours to complete the task, any miscellaneous cost incurred during a stage. These inputs become the base to monitor the performance of the project and its stages.UpdatedSchedule:Updatethescheduleforactualstartdatefortasksstarted,actualfinishdatefortasksfinished,•actual hours worked per task and latest estimated work in hours to complete the task.

Update cost- Update the stage cost summary worksheet with actual costs incurred this period, estimate �remaining cost. Miscellaneous costs will be automatically updated from the schedule, since they are calculated from actual work.Re-Plan Stage Schedule- Review the tracking Gantt and cost workbook and identify any deviation from �baseline. Establish why the deviation has occurred. Determine if the stage has exceeded the progress, cost and quality tolerance levels agreed with the project management team.

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Conduct team status review- Conduct a status meeting with the project team. Items for discussion are �achievement this period planned activities that are incomplete or overdue, activities for the next period, newissuesidentifiedthisperiod,issueclosedthisperiod,summaryofresultsofqualityreview,summaryof schedule and cost status, suggested revisions to the plan.Create Status Report- The status report provides a record of current achievement and immediate expectation �of the project. The status has to be effectively communicated to all interested parties.Create Flash Report- Summarizes the accomplishment for the month, schedule status, upcoming tasks for �the moth and any major issues. Distribute to the project team and project management team.Project Status Report- As discussed earlier, the status report provides a record of current achievement and �immediate expectations of the project.

A weekly status report includes:•accomplishments during the period �items not completed during the period �proposed activities for next period �any predicate slippage to the stage schedule, along with cause and corrective action �any predicted cost overrun along with cause and corrective action �

3.6.1 Approvals

Project stage reviews and the decisions taken and actions planned need to be approved by the top •management.Thegoalsofsuchreviewaretoimprovequalitybyfindingdefectsandtoimproveproductivitybyfinding•defects in a cost effective manner.The group review process includes several stages like planning, preparation and overview a group review •meeting and rework recommendation and follow-up.

3.6.2 Change ControlControlling the changes in the project is possible through a proper change management process and using necessary tools for controlling the change.Change control is necessary to control the increase of work at various stages of project and to mange effectively the disruptions in the stages, if any.These factors may affect the progress of the project, resulting in deviation from the stage schedule, project and stage cost and project scope.

3.6.3 Changing Project Management Process

The processes involved in brining about a change are the following:•Request for a change- Identify need for a change based on which a formal request for either a member of a •project team or a client or a coordinator or key stakeholder to make change is to be made.Identify Alternate Solution- Evaluate the change request and identify several solutions. Assess the alternatives •with respects to the functional scope, schedule, efforts and cost.Decide on the Actions for the change- Present the change request, alternative solutions and recommendation to •the project management team. The project management team is required to accept recommendation, choose an alternative solution, or request further investigation.Implement Change- Make appropriate schedule and other project plan adjustment to accommodate the change, •communicate these to be team member, monitor progress and execute quality control on the changes.

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3.6.4 Tools for changing a ProcessTherearevarioustoolswhichcanbeusedtobringaboutachangeinaprocess.Allsuchtoolscanbemainlyclassifiedinto the following two types:

Changes Management System (CMS) – it is methodology which requires collection of all formal documented •procedure,defininghowprojectsperformancewillbemonitoredandevaluated,howprojectplanscouldbeupdated, how various measures can be implemented to control the change process. There procedures may be unique to an organization based on their project needs. It also includes procedures to handle the changes that may be approved without prior review, so that the evolution of the baseline can be documented.Configurationmanagement(CM)-Identifytheconfigurationitemsanddefinethenamingandnumberingscheme,•structurethechanges,defineabackupprocedure,andfollowthememberfortrackingthestatusofconfigurationitems.IdentifyanddefinetheresponsibilityandauthorityoftheConfigurationmanagementsystem.

3.6.5 Project ClosureAny project that is planned properly and executed as per the plan will also close successfully. For successful completion of a project every aspects of the project should be monitored and controlled.

3.6.6 Completion of activities and benefits

It implies that on the successful completion of a project, it has not drifted from its intended course and plans. •Otherwise it would have resulted in a change and may also kick start another project affecting the main project.The project members are acknowledged for the completion of the project, motivating them to take up more •projectswhereinthememberswouldbeabletoconfidentlyhandleandtakecareofalltheproblemsbasedupontheir learning form earlier project.Itresultsinsettingupofprocessesforcontinueddevelopmentandimprovementofthefinalproductofany•project forthcoming.It results in setting up of improved standard process and estimating models for this type of future projects.•It enables resources redeployment.•

The deliverable at the end of each stage could beAsetofspecifiedoutputsforeachstageoftheproject•Newproductsormodifiedexistingproducts•Items that may be less easy to distinguish like parameter setup data transfer, staff training and so on•

3.6.7 Post Implementation ReviewAftereverystageofaprojectisimplemented,itmaysohappenthattherecouldbeaminorchangeormodificationwhich has to be reviewed. A review may be in the following form-

Final product review: the product obtained after every stage must meet the requirements of that stage. If it •completely meets the staged objectives then focus on the issues of maintenance of the processes and products performance.Ifthefinalproductdoesnotcompletelymeettheobjectivesthenidentifythevariationsintheproducts and analyze the variation.Outstanding project work review: Many times it is found that there may be some item of the project which is •stillnotinitsstagesfinishedform.Itmaybeinsignificantasitmaybebyproductsofthatstagenotrequiredimmediately for the next stage. Then the items that are open should be resolved and necessary steps be taken to close such open items.Project Review: Every aspect of a project from start to an end has to be reviewed. The objectives, performance •criteria,financialcriteria,resourceutilization,slipsandgainsoftime,adheretotheprojectdefinitionandplanshave to be reviewed. All such review details and reports have to be well documented for future use.Process review: Every process is important is any project. One may review the process to see if the any changes •can be made to improve its performance.

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3.6.8 Tools for Post Implementation ReviewThere are various tools for post project implementation review that may ne considered for improving and developing processes of the project. Reports are prepared on the same which becomes the basis for all future discussion. Some of the tools that may be considered for post project implementation review are:

Final product evaluation: This may be done through regularly organized meeting and quality reviews.•Outstanding project work evaluation: All outstanding works of a project cab be reviewed to check its output •quality, its performance compared to planned and evaluate the same.Project review questionnaire may become important if the reviews are to be structured and group discussion •may be initiated depending upon the points to be discussed. Project Evaluation: Evaluation of any process is one of the key issues of project.•

3.6.9 Final project reporting and documentationAfter completion of a project stage and the project as a whole, it is documented. Reports are prepared to indicate the details. The objective of the stage and the project and the corresponding plans should be reviewed and items that are still open should then be closed or resolved. Some of the outcomes that need to be well documented are:

Key stages o the project•Project logic diagram•Key stage responsibility chart•Estimates for all key stages•Optimized project Gantt chart•Update and reviewed project risk log•Risk management forms for new high risks•Project operating budget•

This serves as a baseline for future project reference.

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SummaryProjectsareundertakenatalllevelsoforganization.Theytheirdurationrangesfromweektomorethanfive•years.Characteristics of project management are as follows time, responsiveness, information sharing, process and •structured planning.There are also processes groups that are available here such as initiating processes, planning processes, executing •processes, controlling processes and closing processes.In customization of the project there are three needs such as large project needs, smaller project needs and •changed processes needs.The entire project is to be monitored and controlled by the team members.•There are various steps in monitoring and controlling projects such as preliminary work, project progress, stage •control, resources, quality control, schedule quality review, agenda quality review, conduct quality review, follow up and review quality control procedures.In project process control there are two types such as monitor performance and update schedule.•In project processes control there are following steps to be followed approvals, change control, changing project •managementprocess,toolsforchangingaprocess,projectclosure,completionoftheactivitiesandbenefits,postimplementationreview,toolsforpostimplementationreviewandfinalprojectreportinganddocumentation.

ReferencesLock, D., 2007. • Project Management Handbook, 9th ed., Ashgate.Choudhry, S., 1989. • Project Management, 1st ed., Tata McGraw Hill.

Recommended ReadingHaugan, G. T., October 1, 2001, • Project Planning and Scheduling, Management Concept.Hobbs, P., February 2, 2009, • Project Management, D K adult publication.Callahan, K. R. and Brooks, L. M., August 5, 2004, • Essential of Strategic Project Management, Wiley Publication.

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Self AssessmentWhich of the following statement is NOT false?1.

Responsiveness refers to response of an individual a. Responsiveness refers to quickness of response of an individual b. Responsiveness refers to late response of a group c. Responsiveness refers to quickness of response of a groupd.

Which of the following statements is NOT false?2. It not possible to improve the pace of the project by reducing the time frame of the process a. It not possible to improve the pace of the project by increasing the time frame of the processb. It is possible to improve the pace of the project by reducing the time frame of the processc. It not possible to improve the pace of the project by reducing the cost frame of the processd.

Which of the following statements are NOT false?3. The individual process is linked only to the inputa. The individual process is linked only with output b. The group process are linked by inputs and outputs c. The individual process are linked by inputs and outputsd.

Which of the following statements are NOT true?4. Output refers to the documented that are results of the processa. Tools and techniques refer to mechanism applied on to the inputs to create desired outputs.b. Input refers to the documented that are results of the process c. Input refers to client documents converted to action plans to be acted upond.

Which of the following statements are NOT true?5. Identifying variances from the plan is a part of closing processesa. Tools and techniques refer to mechanism applied on to the inputs to create desired outputs.b. Input refers to client documents converted to action plans to be acted uponc. Output refers to the documented that are results of the processd.

It is possible to work according to the project plan only by careful __________ of the project progress 6. controlling a. monitoring b. quality analysis c. checkingd.

During the _______ the members must keep a track of the project progress and communicate the same to other 7. related members of the project.

quality process a. controlling b. project progress c. planningd.

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_________ is possible if the project members follow the quality charts and norms very strictly. 8. Objectivea. Quality controlb. Requirement c. Project planningd.

The product obtained after every stage must meet the ________ of that stage. 9. requirement a. objectives b. specificc. sensitivityd.

Project stage reviews and the decision taken and actions planned need to be approved by the top 10. ____________.

Team leadera. Project manager b. Management c. Director d.

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Chapter IV

Concepts of Managing Conflict, Quality and Information System

Aim

The aim of this chapter is to:

explaintheconceptofmanagingconflicts,qualityandtheInformationSystem•

elucidate the concept of quality management•

analyse the project development process cycle•

Objectives

The objectives of this chapter are to:

elucidate the modern trends in projects managements•

explain project management information system•

elucidate communication requirement and capabilities•

Learning outcome

At the end of this chapter, the students will be able to:

discuss the project development process cycle•

understand the modern mantra of project management•

undesrstandtheconceptofconflictmanagement•

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4.1 IntroductionItiswellknownthatinanymanagementsystemthereisalwayssomeconflict.Itmayberesultoutofindividualorgroupshavingdifferentopinions.Theprojectgetsaffectedbythisconflict.

4.2 Concept of Managing Conflicts, Quality and the Information System4.2.1 Conflict ManagementItispossibletomanagetheconflictsinoneofthefollowingways:

avoid the issue•approach the problem in such a way as to obtain the solution quickly•discuss and share the problem•any misunderstanding should be resolved by means of a discussion among project members•work on a common solution technique that will lead to a win –win situation•emphasize on collaboration•

4.2.2 Communication Requirement and CapabilitiesThe communication requirement and capabilities are as follows:

Communication Frequency- Project manager in development projects prefer to communicate on a weekly basis •using all three media. Their sponsor prefers bi-weekly verbal updates and written reports complemented by personal meeting only at milestone achievement.ResponseProfiles-therespondentsshowinterestmainlyontheinformationavailableandthepreferenceon•mode of communication at various levels.Barriers to communication- The barriers may be plenty. Suitable plan to avoid the barriers may be prepared.•Behavior Pattern exhibited- executive often communicate decision with little or no knowledge of the implication •of their decisions for the company or the people who have to implement decision. They may sometime fail to communicate effectively leading to communicating a different message.

4.2.3 Quality ManagementQualityofanyproductorservicesisdefinedasitsconformancetothestandardsorthestatsrequirements.Totalquality management represents the entities and their prerequisites for achieving world class quality.

Quality may be realized by-adopting a philosophy in line with objectives of the organization �achieving effectiveness in the organizational performance and fulfilling or exceeding the community �expectations

ManyothersusedthesixSigmaconceptstoincreasetheprofitsbyeliminatingvariability,defectsandwastethatundermine customer loyalty.

4.2.4 Project Management Information SystemAn information system is mainly aimed at providing the management at different levels with information related to the system of the organization. It helps in decision making in arriving at optimum allocation of resources. The information system is based on the database of the organization.

The four major aspects of a Project management Information System are –provide information to the major stakeholder that is the right information at the right time•assist team members, stakeholders, managers with necessary information and summary of the information •shared to the higher level managersassistthemanagersinprojectstaffing,proposedstaffingchangesandtotalallocationofresourcesanalyses•help organization learning by helping the numbers of the organization learns about project management•

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A good Project Management Information System is possible to be developed from the team members and not from the system administrators of the company. Organizations tend to allocate such responsibility by among members with a well designed and structured data entry and analytical format.

4.3 Modern Trends I Project Management

There are number of ways a manager can implement a project successfully.As it is important to monitor and control the project activities throughout various stages, it becomes that much more important to resort to effective and powerful tools to coordinate the activities.A number of ways are possible to be considered to achieve good results in any projects.Irrespective of which every way one wants to coordinate for effective outputs, essential processes are the meticulous planning of all the activities, referring to checklist which could have been creatively designed, adopting quality control measures, standards and so on.

4.4 Perception

The perception of a manger in current trends in project management is to obtain result. There are some tools that are being used currently are as follows:

Continuous Business Process Improvement It is a process through which a project team passes on the details of any system as recommendation for standardization. It acts as a business process element for the company as a whole. Continuous Business Process Improvement is a process through which a project on the details of any system as recommendation for standardization of future project processes.

Forces field Analysis Adopt suitable methods to identify external factors which may affect the project progress. The external factors are hurdles in a project. Use of appropriate process would minimize and eliminate the hurdle resulting in a smooth flowofactivitiesandprojectprocess.Theexternalforcescouldberelatedtocustomers,technologychange,andshift in trends and so on.

Information Risk managementThere are several methods that can be adopted to reduce the risk in any project. A proper methodology is the one which is based on the quality control aspects which may even be automated and integrated into the project process. Theriskarisingoutofcorruptionage,fieldsizevariation,formatmismatchhavetobecontrolled.

Management Assurance MeasureIt is task performed by the projects leader to balance efforts to convince management against wavering with efforts to prepare team members to counter any unexpected storms in the project. This is the greatest opportunity for a leader to mature and go up the ladder as well as an equal opportunity for the member to emerge a leader through accepting a challenge.

Quality Certification Qualitycertificationfromaleadingorganizationmaybeobtained.Certificationwillenablethemanagementteamto realize importance of a process and how effectively project could be managed smoothly.StrategicInflectionPoint-Arealtestfortheprojectleaderandthemanagementteamistoaccuratelypredicttheexact point of the development process where the team might face a massive problem.

4.4.1 Project Development Process CycleEvery company would be interested to improve their performance over their previous performance in project. In order to improve project performance, the company must assure quality and quality control at every stage of the project throughout the project life cycle. The various steps which may be considered in the development of the process cycle in nay project are listed below:

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Planning For ReviewIn this step the main focus is on collection of data. Data I the main input requirement of any successful project. Once the data has been gathered prepare a suitable plan for its analysis. Obtain necessary commitment from management andteammemberstoparticipateactivelyandtakeactionsonfinding.Itisnecessarythateveryprojectmembergives his or her commitment to participate and deliver the service/products in the project. Review is necessary for every stage of project.

Conducting the ReviewAgenda has to come before review. The agenda should be well structured in terms of time and content. Make necessary arrangements to gather inputs to the review. The review leader is the project manager. Incorporate points, which are external to the projects. These external points have to be well structured to be reviewed. A reporter must be designated to document key points of the meeting. An automated checklist must be formulated for the session.

Take Action on findingsDuring meeting, determine the points which are critical to the project and its performance. The member may have brain storming session to discuss critical point. Make a list of all such items discussed and items suggested and group the data into categories and then prioritize, either by group discussion or voting. Identify action items and assign a project member or a team the task pertaining to the action planned.

Do Continuous improvementEveryorganizationwants to improvecontinuously. It isnotpossible to achieve improvementunless sufficientmeasures are adapted to measure improvement. The quality managers should highlight trends and de-escalate chronic problem. Reviews are a check process in the “Plan-Do-Check-Act” cycle of a quality cycle.

Critical Success factorsItisnecessarythatacompanyidentifiescriticalfactorsinaproject.Thesefactorsmayslackentheprojectifnotfocused. Routine task may be assigned to lower level team members as this may relieve the project team from wastingtheirskillsetonroutinematters.Regardingprojectmanagementskillstheprojectofficecanhelptheprojectmanagerintheprojectscopedefinition,projectkick-offpreparationandplanningtasks,throughmentoringandcoaching services.

Results and Benefits of the Project quality ReviewsThemainbenefitsoftheprojectqualityreviewaretheprojectstatusisformallyvisibletothewholeorganization.The project quality review helps the project manager and his/her manager to enable the necessary adjustments and takingtheactionneededtoachievetheprojectgoalsfinishingtheprojectontime,scopeandbudget.

4.4.2 Macro Issues4.4.2.1 Evolving Key Successes Factors Upfront

Inordertoprovidecompletestabilitytofulfillmentofgoals,oneneedstoconstantlyevaluateformtimetotime,•the consideration of what will constitute the success of completing a project and assessing its success before completion.The Key success Factor should be evolved based on a basic consensus documents.•Key success Factor will also provide an input to effective exit strategy.•Exit here does not mean exit from a project but from any of the drilled down elemental activities which may •prove to be hurdle rather than contributors.BroadlevelKeysuccessFactorshouldbeavailableattheconceptualstageandshouldbefirmedupanddetailed•out during the planning stage.The easiest way would be for the team to evaluate each step for chances of success on a scale of ten.•Key success Factor should be available that is approved by the management such as project manager, before •execution and control stages.

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Key success Factor rides above normal consideration of time and cost- at the levels encompassing client •expectation and management perception, time and cost come onto play as subservient to these major goals.

4.4.2.2 Empowerment TitleEmpowermentTitlereflectstherelativeimportanceofmembersoftheorganizationatthreelevels:

Team members empowered to work within limits of their respective allocated responsibilities- the major change •from routine system is an expectation from these members to innovate and contribute to time and cost.Group leaders are empowered additionally to act independently towards client expectation and are also vested •withsomelimitedfinancialpowers.Managersareempoweredfurthertoactindependentlybuttomaintainascientificbalanceamongtime,cost,•expectation and perception, apart from being a virtual advisor to the top management.

4.4.2.3 Partnering Decision MakingPartnering Decision Making is an alternate to monitor and control the project.

It will be better if a senior person with a better decision making process will work closely with the project �managers as well as with the members to plan what best can be done to manage the project.The key resources here are the active participation of all the team members in decision making process. �

The ownership is distributed among all irrespective of levels- the term equally should be avoided here since ownership isnotquantifiable.

The right feeling of ownership is important. �Thisstepismostdifficultsincejuniormembershavetorespondandresisttobeingpushedthroughsheer �innovation and performance.

ThePartneringDecisionMakingprocessismadescientificthrough:Earned vale management system �Budgeted cost of work scheduled �Budgeted cost of work performed �Actual cost of work performance �

4.4.2.4 Management by Exception

In any organization “No news is Good news”. If a member wants help to locate a source and proposed to the •manager, only if such help is not accessible for free.Similarly, a member should believe that a team leaders silence is a sign of approval and should not provoke •comments through excessive seeking of opinions.The bend limit of Management by Exception can be evolved depending on the sensitivity of the nature and size •of the project.Management by Exception provides and facilitates better implementation of effectiveness of empowerment •titles.Management by Exception is more important since organizations are moving towards multi-skilled functioning •even at junior most level.

4.4.3 Knowledge Factor (K)

Knowledge is considered to be the most powerful wheels of any progress.•Knowledge Factor is an index of the extent to which one can manage today with yesterday knowledge content •and also the extent to which today’s knowledge will be used.This would be rendered the development process more productive.•

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The Knowledge Factor of course undergoes correction through obsolescence- since changes are now phenomenal- •but so are the opportunities for junior to access information from new knowledge bases seniority is no more an automated scale for knowledge.It is important for leaders to recognize the knowledge potential of younger members.•It is equally important for younger members not to suppress their knowledge potential from its application.•Further as age and experience advance further wisdom gains but knowledge is lost until it is updated and •utilized.It is the task of every team members to maximize the Knowledge Factor to maximize the Knowledge Factor •in all direction.

4.5 The Modern Mantra of Project ManagementThemodernmantraofprojectmanagementmanyareconsideredforfiveaspects;

define•measure•analyze•improve•standardize•

4.6 New Horizon in Project managementThere nine steps that are to be followed in New Horizon in Project Management such as:•believing in discontinuity and not continuity with incremental improvement•continuity or status quo is a function of quantum of changes. Here are incremental improvements are valid only •when the rate of change is not excessivemodern domains and development process are highly dynamic•projectmanagementtodaydemandsdiscontinuityandgreaterflexibility,withnohurdlestomoveintothefuture.•An open mind for unknown is the keymembers are not expected to be rattled by sweeping changes demanded by the dynamically changing •objectives

Owning the problem and sharing the solutionExperience is gained through an open mine to own problems.•Experience is not judged by the number of years of services but by the number and complexity of problem •owned and solved. Thefixedmouldmentalityofpassing thebuckandexpectingcredit fordiscoveries isnotappreciatedany•more.

Breaking the status quo mentalityThis implies believing that future is not an extension of the present and therefore the need to tame the future.•Excessive only focusing on the future may not be appreciated.•A proper balance is a must.•Inmostcases,aconflictbetweenapresentcentricmanagerandfuturecentricprojectleadercanonlybesolved•by innovation predicative approach of a member. it is more often than not, the member who is more aware of future bugs and client centric problems.

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Stepping out of comfortable zoneMomentarily, a member might feel more comfortable to stay in the comfort zone and refrain from risks.•However, team member should remember that team leader has emerged by stepping out of the comfort zone.•If the member decides to feel comfortable to step out of the comfort zone and be innovative and contribute then •this world amount to emergence of a future leader. Here promotions are not time bound.

Human capital by passing financialHumancapitalhasleftfinancialcapitalfarbehind.•A member should therefore appreciates and maintain self realizations of his importance in the •

OrganizationHowever, to sustain credibility, the member should remember that his or her value is not related to the level or •the salary but on the quantum of output, again not on the volume of coding but on the value of the work done to product.Combining these two concepts of human capital and value the concept of return on the time invested has replaced •return on investment when it comes to valuation.

Transform work culture from % to & dimensionsConventionallyweliveamongthefivedimensionssuchas–X,YZtimesandmind.•Any organization should add passion and joy if they aim any substantial progress.•It is important for a member to decide to do what the team member wants to do.•The gap between wish and reality is narrowed and results improve. A project could well become a work of art.•

Real number of encounter replacing number of years of experienceThe experience level is now judged by the number of encounters of major problem solved rather the number of •years, particularly in a typical situation of comparison between look alike.Experience is them counted as wisdom.•The secret formula for a member is to build an inventory of encounters meaningful to their own dreams or •passionprofile.

Seeking meaning out of changeChange could be threat or an opportunity. If a change is resisted, it is essential for the entire team through extra •ordinary team effort and brain storming to weight consequences before drafting of a plan to match proposals for changes.The key lies in extra ordinary inter personal skills and communication.•

Detachment from the fruits of resultsHere to act within ones control and to get reaction or a reward is not within their purview. If an organization •pays too much attention on these factors, this would result in drop in production and future hinder personal progress.Theentireteammembersmustfirstanalyzeanddiscussamongthemselvesandlatertheresultsmustspeakfor•themselves.After all it’s their responsibility to build a second line and move up the ladder by themselves.•Most organizations now encourage “presentation” by members as well as self assessment report.•Management now tends to constantly watch between retention and attrition.•

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SummaryInanorganizationitiswellknownthatinaparticularmanagementsystemtherearesomeortheotherconflicts•that are created with an organization.Theseconflictcanbecreatedeitherbyagroupofpeopleorbyanindividual,andtheseconflictscanaffectthe•progress of project.Concept ofmanaging conflicts, quality and the information system are follows: conflictmanagement,•communication requirement and capabilities, quality management and project management information system.The best way to manage a project and implement a project successfully is by controlling and monitoring the •project activities.There are some tools that are being used in perception such as continuous business process improvement, force •fieldanalysis,informationriskmanagement,managementassurancemeasure,qualitycertificationandstrategicinflectionpoint.There are various steps to be followed in project development process cycle such as planning for review, •conductingthereview,takeactionsonfindings,docontinuousimprovement,criticalsuccessfactorsandresultsandbenefitsofprojectqualityreview.There are some factors that are considered is macro issues such evolving key success factors upfront, employment •title, partnering decision making, management by exception and knowledge factor.Themodernmantraofprojectmanagementconsistsoffiveaspectssuchasdefine,measure,analyze,improve•and standardize.There are nine steps in new horizon of project management such as believing is discontinuity and not continuity •with incremental improvement, owing the problem and sharing the solutions, breaking the status quo mentality, steppingoutof comfortable zone,humancapitalbypassingfinancial, transformworkculture from5 to7dimensions, real number of encounters replacing number of years of experience, Seeking meaning out of change and detachment from the fruits of results.

ReferencesGray, C.F. and Larson, E.W., 2005. • Project Management-The Managerial Process, 2nd ed., Tata Mcgraw-Hill Publishing Co Ltd.Nicholas, J.M., 2004. Project • Management For Business And Engineering, 2nd ed., Butterworth-Heinemann.

Recommended ReadingKerzner, H., March 23, 2009, • Project Management: A system Approach to Planning, scheduling and controlling, Wiley Publication, 10th ed.McDowell, J., October 12, 2000, • Resolving conflicts, Thomas Nelson.Nicki S, Adams and John R. Kirchof, 1982, • Conflict management for project managers, project management institute; 1st ed.

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Self Assessment Which of the following sentences is NOT false?1.

Itisnotpossibletomanagetheconflictsbydiscussingandsharingtheproblemsa. Itispossibletomanagetheconflictsbydiscussingandsharingtheproblemsb. Itispossibletomanagetheconflictsonlybydiscussingc. Itispossibletomanagetheconflictsbysharingtheproblemsd.

Which of the following statements are NOT true?2. There are numbers of ways a manager can implement a project successfullya. A good project management information system is possible to be developed from the team members and b. not from the system administrators of the companyBuild employees trust in the communications process so that hones feedback becomes a part of the natural c. way of working is the only essential characteristic of a communication networkProviding information to the major stakeholder is the right information at the right timed.

Which of the following statement is NOT false?3. Qualityofanyproductorserviceisdefineasitsconformancetothestandardsforthestatedrequirementa. Qualityofallproductorserviceisdefineasitsconformancetothestandardsforthestatedrequirementb. Qualityofallproductisdefineasitsconformancetothestandardsforthestatedrequirementc. Qualityofanyproductorserviceisdefinedasitsconformancetothestandardsforthestatedrequirementd.

Which of the following statements are NOT false?4. Continuity or status quo is a function of knowledge factora. Continuity or status quo is a function of planningb. Continuity or status quo is a function of quantum of changes c. Continuity or status quo is a function of project managementd.

Which of the following statements are NOT false?5. Modern domains and development process are highly Dynamic a. Modern domains and development process are highly static b. Modern domains and development process are highly essential c. Modern domains and development process are not Dynamicd.

The perception of a manager in current trends in project management is to obtain ________.6. planninga. objectives b. results c. improvementd.

______ is a process through which a project team passes on the details of any system as recommendation for 7. standardization.

Planning a. Continuous business process improvement b. Project management c. Modern mantrad.

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Reviews are a check process in the ______ cycle of a quality cycle.8. management assurance measure a. process b. development c. qualityd.

The team can find benefits for the project manager because it helps in terms of ___________ and 9. __________.

knowledge and controla. monitoring and controlb. discipline and controlc. measure and analyzed.

________ is the most powerful mover of the wheels of progress. 10. Control a. Discipline b. Measure c. Knowledge d.

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Chapter V

Project Performance through Project management Office and Human Resource

Aim

The aim of this chapter is to:

explaintheconceptofprojectmanagementoffice•

elucidate the concept of professional responsibility•

assess personnel productivity•

Objectives

The objectives of this chapter are to:

explain the concept of human resources management•

enlist the traits of successful teams•

explain the concept of performance improvement•

Learning outcome

At the end of this chapter, the students will be able to:

understandthebasicsofProjectmanagementofficeandHR•

understand the importance of team work and interpersonal behaviour•

discuss the guidelines for performance improvement•

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5.1 IntroductionTheconceptofProjectManagementOfficeisgaininggroundinProjectManagementbecauseenterprisesneedtooptimize resources such as knowledge and people. Due to this economies are achieved and customer satisfaction is gained,thisresultinmoreprofitsandrepeatcontracts.

5.1.1 Project Management Office

AProjectManagementOfficeisagroupordepartmentwithinabusiness,agencyorenterprisethatdefinesand•maintains standards for project management within the organization.TheprimarygoalofProjectManagementOfficeistoachievebenefitsfromstandardizingandfollowingproject•management policies, process and methods.Most importantly, it ismanagerwhodirest,controlandisresponsiblefor theworkingof theofficeandits•members.TheProjectManagementOfficehastworolestocarrysuchasitrenderstraditionalprojectmanagementconsidered•to be twofold and it functions as a governing committee for all projects throughout the organization.If there are many project running at the same time, it is advisable to appoint a project manager for each •project.InthatcasetheProjectManagementOfficewillactasacoordinatingbodygivingsupporttoalloftheminterms•of human resources, budgets, procurement of material, taking care of statutory and legal requirement.

5.2 Improvement of PerformanceIt is very easy for project to go off course, because most of the activities are not repeated. As a governing •committee it has to make continuous review of performance of the project. TheProjectManagementOfficemustcreateandmaintaintheabilityoftheprojectmanagertokeepfocusedon•the client’s requirements to meet them. TherearetoolsfortheperformanceofProjectManagementOfficesuchasthefollowing:•

5.2.1 Reviews and their purposeThe reviews are generally divided into four types which are conducted at different stages of the project.

Initiation Review•Planning and proposal Reviews•Procurement Reviews•Quality Assurance Reviews•

A project review is a process where we capture information from the team experience and see the variances and deviations from plan. These reviews help in increasing productivity and improve organization success. The purpose of the reviews can be stated in the following way:

Finding out feasibility of the project and helping management teams to take a decision based on this initial •Review.Checking if all the necessary activities were done before presenting a customer the proposal or solution.•Checking if all the formal agreements and procedure were formally accepted and reviewed between the customer •and the project delivery organization.Finding out the deviation and allowing elbow room for changes in the action plan for improvement.•

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5.3 Project Manager TeamsJust as higher teams act together and ask for what is best for the company, project manger Teams are formed for various projects. They act as a group to ensure that all projects are completed. The qualities that should be considered in a leader are as follows:

Enthusiasm - Desire to so the job and willingness to put in that extra work.•Higher tolerance for ambiguity - Under the conditions of chaos and disparate team members, clear cut authority •lines do not exit in a project environment situation exist where doubts about correctness of decisions will have to be faced. Leader should take decisions, with a little uncertainty- because others also may not know. They will be taking a risk, but that is why leader are there.High Coalition and team Building Skills - This concerns both the external and internal team members. Customers, •their representative, suppliers, inspectors and so on are from the outside who are interested in the progress of the project. Building up relationships and balancing competing requirements is a necessary characteristic of a project manager.Client/Customer Orientation - Customer expectation and problems are continually changing and the better •theprojectmanagerunderstandstheproblemsofthecustomers,betterhewillbeabletosolvethem.Thefinalmeasure of success of the project is satisfaction of the customers.Business Orientation - The Project Manager should understand the business of the organization they work for. •They should known the way things are looked at by the top management and align his thoughts and conduct, so asnottobeinconfusionorconflictwiththem.Theyshouldhavetheirsensetunedtograspbusinessopportunitiesthat crop up during the implementation.

5.4 Professional ResponsibilityWith increasingcompetitionorganizationshave tofindsnewwaysofcustomer retentionandadopt innovativemeasures to improve their customer base. Installing Development Methodologies and Quality system is the responsibility of managers. Another area of professional Responsibility for managers is Reduction in Process Cycle Time. A few examples of high cycle time activities are:

Procurement time for outsourced software and hardware: the time to identify the requirements, the details •regarding them , verification and authorization- inputs fromour company the start of the activities by thevendors- lack of follow with the vendors – these should be avoided.Overallprocessingtime-linkedtosalecommitment,financialcycleandprogressimbalances;•Orderconfirmation time– looseendsnotbeingconnectedand importantnotbeingconsideredat theearly•stages of process.

In addition to these a few more areas whereby managerial productivity is taken into reckoning are:creativity•lateral thinking•quality circles•new product introduction lead time•managing change•implementing TQM•empower of junior level executives•

5.5 Human Resource ManagementIn the context of Project management, Human Resource Management has some special aspects to be considered. It is considered for two different perspective of the project itself- operations Projects and Information system projects. Some of the main features of the Operations Projects are:

The inputs are physical•Suppliers are many•

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Quality, testing, quality –measured at supplier/contractor’s place•Different projects are spread far and wide•Monitoring, control and audit have to be done continuously•Materials are subject to damage, loss, pilferage – warehousing is a must•Logistics is critical for the project•We have more levels of employees•We have more number of employees par unit value in the conventional project than in Information System •ProjectsAbsenteeism, in most cases will have cascading effects on performance•

5.6 Personnel ProductivityProductivity at the junior level can be assumed and controlled only if all other supportive elements of business •are well balanced. Higher productivity cannot be expected if they are not motivated through:sufficientcontentofdevelopmentactivities–theworkshouldbeinterestingandbringasenseofsatisfaction•and achievementfavorable working conditions – environmental conditions should make a person fell comfortable to stay at the •workplaceplanned activities – clear line of authority and recognition of performance•adequate availability of resources - otherwise frustration sets in and commitment is lost•properly planned system of quality through process control - if the process is not good, even the best efforts •will not be enough to get tolerable quality and the person doing it is made responsibleadequate maintenance support for hardware and software - these ensure that no work gets held up on this •account–efficienciesbringinproductivityAs far as productivity as well as quality is concerned, especially, where projects are concerned, it is good to •follow Deming’s philosophy, which states – "create conditions for performance, do not use rhetoric, pay them well and give the pride of working."

5.6.1 Assessment of personnel Productivity

Unlikeproductivityonshopfloor,personnelproductivitycanbeconsideredonacollectivebasis.Thefollowing•can be used as guide lines to make assessments;time for development of a new product•indexoffinancialcycles•timeforfindingandprovingasolutiontoseriouscustomercomplaints•time for development of a bigger market for an exiting products•

It is better to avoid the following for assessment:Individual achievements or failures•Individual outputs•ReflectiononFinancialhealth•Reflectiononinventory•

It isvery important toremember that thefirstperson toknowifsomethinghasgonewrongis thepersonwhocaused.

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5.7 Team Work and Interpersonal BehaviorIn a team the maxim that all members will do well to remember is “Learn to appreciate the problem of others, and some others would appreciate yours”. It is therefore important that in a business environment, particularly in project management,effortstoevolvesolutionjointlyhavegreatbenefits,bothfortheteamsaswellastheorganization.

The top management has the responsibility of a encouraging such a culture to develop healthy inter-personal •behaviours.Inert-personalbehaviourcallsfor:Projectionsofapleasant,butfirmpersonality

Inter-personal behaviour calls for: Clarity of expression and communication•Patience in listening and reacting with empathy•Documentation and correct recording•Offer to help•Call for help whenever necessary•Seeking information before attempting decisions•Not waiting for things to go wrong•Motivationofothersthroughefficiencyandmeticulousness,ratherthanurgingandexhibitingdependency•Putting team goals ahead of individual target•

The project manager must make it a habit of expressing appreciation openly for any good work by his/her team member.

5.8 Traits of Successful teamsWorking in a team in an organization empowers employees to take maximum responsibility to make decisions, which were once thought to be the right of managers. Decisions of the team represent the collective wisdom of its members and as they are all bound by them, they try to make it better. The secret of team work advantage lies in the following:

clear understanding of the organizational goals, objectives and norms•open communication among team members•creation of balance among team members by having a high sense of ownership•recognition of strengths and weaknesses of the members•close-knit relationship for performance enhancement•accepting the leadership qualities of one or two members and offering unconditional support for them•encouragement of constructive evaluation of each member’s contribution with resolve problems•willingness to accept difference of opinion, but capacity to make concessions with the team in mind•taking initiative and giving it all to complete challenging jobs•

Teams are not built in a day. Owing to circumstances and opportunities, management puts together a group of people, whom they select and who can take up job or project and complete it.

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SummaryProjectmanagementofficeisgainingitsgroundsinProjectmanagementbecauseenterprisesneedtooptimize•resources especially in knowledge and people.TheprojectmanagercanbedependentonProjectManagementOfficetoprovidethemwithinformationabout•sub-contractors, equipments customers schedule or inspection.Tools that are necessary for improvement of performance are review and their purpose and environment and •strategy.There are certain qualities that should be consider for a good team leaders such as enthusiasm, high tolerance •for ambiguity, high coalition and team building skills, Client/customer orientation and business orientation.Areas where professional responsibilities for the managers are reduced are procurement time for outsourced •softwareandhardware,overallprocessingtimeandorderconfirmationtime.Human resources management has some special place in the context of project management.•The two areas where it is considered are in Operations Projects and Information System projects.•

ReferencesLewis, J.P., 2004. • Project Planning, Scheduling And Control, 3rd ed., Tata Mcgraw-Hill Publishing Co LtdChandra, P., 2009. • Project: Preparation, Appraisal, Budgeting and Implementation, 7th ed., Tata McGraw Hill Education Private Limited.

Recommended ReadingHill, G. M., August 22, 2007, • The Complete Project management office handbook, Auerbach Publications; 2nd ed.Letavec, C. J., October 4, 2006, • The project Management Office: Establishing, managing and growing the value of a PMO, J. Ross Publishing.Lia Tjahjana, Paul Dwyer PMP and Habib, M. (September 28, 2009), • The Project Management Office Advantage, AMACOM publication.

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Self AssessmentIncasewheretherearemanyprojectsrunning,theProjectmanagementofficewillactasa___________giving1. support to all of them in terms of Human resources, budgets, procurement of material.

teama. coordinating body b. board of directors c. group of employeesd.

_________ ____________ should be closely watched for the success of project. 2. Process and tool a. Control and monitoring b. Documentation and authorizations c. Customers and clients d.

A _________ is a process where we capture information from the team experience and see the variance and 3. deviations from the plan.

review a. systemandofficeb. team and leader c. documentation and controlling d.

Thefinalmeasureofsuccessoftheprojectis_____ofthe_____________.4. business, organizationa. documentation, authority b. process, tool c. satisfaction,customerd.

The project manager should understand the _________ of the _____ he works for. 5. diversity, complexitya. business, organizationb. documentation,filesc. customers, clientsd.

Unlikeproductivityonshopfloor,personnelproductivitycanbeconsideredona___________6. complexity a. reviewb. collective basis c. businessd.

Which of the following statements is NOT false?7. Bytheirveryartificialprojectareveryorderlya. By their very nature project tend to create chaosb. Bytheirveryartificialplanningareveryorderlyc. By their very nature planning are very orderlyd.

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Which of the following statements is NOT false?8. During implementation there will be doubts about the correctness of planning a. During implementation there will be no doubts about the correctness of planning b. During implementation there will be doubts about the correctness of decision c. During implementation there will be doubts about the correctness of project managementd.

Which of the following statement is NOT false?9. We have more number of employees per unit value in the conventional project than in IT projectsa. We have less number of employees per unit value in the conventional project than in IT projectsb. We have more number of employees per unit value in the conventional project than in analytic projectsc. We have less number of employees per unit value in the activist than in projectsd.

Which of the following sentence is NOT false?10. Team leader in organizations empowers employees to take maximum responsibility to make decision. a. Work team in organizations empowers employees to take maximum responsibility to make decisionb. Work team in organizations empowers employees to take maximum responsibility to make planningc. Work team in organizations empowers leaders to take minimum responsibility to make decision.d.

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Chapter VI

Project Development and Modern Trends in Project Management Perception

Aim

The aim of this chapter is to:

explain the concept of project development•

elucidate the modern trends in project management•

explain the basic project development process cycle•

Objectives

The objectives of this chapter are to:

enlist the steps in a project development•

discuss the recent revolutions in the project management•

explain the evolution of project management concept•

Learning outcome

At the end of this chapter, the students will be able to:

explain the basics of project development process cycle•

understand the steps involved in a project development•

discuss the trends in the IT project management process•

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6.1 IntroductionProjects are basically conceived as a one time performance of a set of activities which results in their completion. Theprojectsatisfiestheneedforsomethingwhichwillbeusefulforlongtime.Developmentofaprojectisthestageat which original concept of the need takes a concrete shape as to what can be expected at the end of the project.

6.2 Project Development Process CycleThe basic characteristics of a project are that it is set of non-repetitive activities which create a unique products or service. The activities utilize a variety of sources. Systematic acquisition and deployment in a relatively short span of time is the essential process of a project. The following are the stages in the development process:

Obtaining the specificationsThis is culmination of the efforts of the marketing department in securing the contract. This one of the important phase as the needs of the customers would be converted to proposals which should meet their requirement. Time requirefortheprojectmayundergoachange.Basedonthefinaldocument,thespecificationsofallcomponentsoftheprojectwillbemade.Whenspecificationsareavailable,theprojectmanagercanprecedefuture.

Creating a work breakdown structureOncethespecificationsarecompletelyready,theprojectmangerhastheresponsibilityofshowingtheworkelementsin a structure which show the sequence in which they are to be performed. So all the person responsible for activities willhavebeenidentifiedandthesequenceofoperationswillbesettled.

Preparing a comprehensive PERT chartThe basis for this chart is the Critical Path. Because of technological necessities some activities can be performed only after some others have completed their work. It is observed that different activities require different duration for their completion. Some projects are big and a number of clearly distinguishable stages, called milestone are identified.Thatmeanstherearemorepathsformthebeginningtotheendandoneofthemtakesmoretimethantheothers. This is called as critical path.

Forming groups and teamsThe next stage in the development of the project is to identify persons to undertake the various tasks which include procurement of materials, maintaining equipments, stocking of spares and so on. Forming and developing teams which contribute their best to the project, is a challenging task. Opportunities should be created for them to spend timetogetheroutsideworkinghours.ThelatesttrendsinHumanresourcesaretofindnewwaystomakeemployeesfeels comfortable and important so that they stay and work better.

Forming a core group consisting of members chosen from as many teams as possibleThey will be generally senior members in their teams. They will be sharing information about the progress and see what activities can be hastened or retarded, what facilities cab be loaned, which person from a team can help another in solving a problem. Coordination and cooperation result in solving problems- sooner.

Fixing the responsibility areasThis is a crucial stage in the development of project. Every person in the project team member and the members of the core group will know what is expected of him. The core member of this team will be in communication with the other teams as well as the project manager regarding the progress or any other additional resources the team would need to keep to the schedule.

Preparing budgets, supplier contractsAt this stage the project manager knows what his teams can contribute to the project. They will prepare the budget for what is going to buy for being utilized by the various team’s members for completing their jobs. Clauses about inspection, transport, insurance and payment will have to be worked out in detail and accepted. Project overruns are common and costly.

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Setting up communication channels, feedback routes and monitoring mechanisms The last step in the development process of a project is to establish a system of reporting and initiating of action taken upon them. Monitoring and control become meaningful when timely actions are taken. With the availability of intranet and internet, transfer of information has become very easy and authentic.Manyoftheseactivitiescanbedoneatthesametimeandtrytosavelotoftime.Thisinformationflowsisofutmostimportance.

6.3 Modern Trends in Project Management PerceptionOwing to competition and projects being undertaken on a global scale, projects are no longer constrained by volumes, funds or even by materials. Principles of TQ, kaizen, and Lean Manufacturing are being applied by most companies to derive leverage by eliminating waste. Some of the practices are given below:

Continuous Business Process Improvement•It is a process through which a project team passes on the details of any system or method improvement as �a recommendation is an efforts for continuous improvement.The improvementwhenpracticedbymany teamsgetverifiedandauthenticatedandbecomestandard. �Continuous Business Process Improvement is entrusted to a smaller team within a team for initiating, implementing, analyzing and distributing the process.

Force Field Analysis•All improvement programmers have compulsions-like competition, customer’s demands, technology changes, �economics, and government regulation.However, resistance also is seen because the organizational members fell threatened or unwilling to learn �and expose their weaknesses. Force Field theory enunciated by Kurt Lewin, states that the two sets of forces areinopposite.So,toeffectchanges,managersmustfindwaysofincreasetheforcesofchangesandreducethe forces of resistance.They need to be done simultaneously. So there will be a movement towards change. �

Information Risk Management•TheinformationisconstantlysubjectedtoScientificandanalyticProcessing.Manytimesautomatedsystems•of quality control of key input data connected with the project help in reducing the risk of over-runs beyond the control of the team.

One of the major problem of with data undergoing a lot of processing is the corruption that may occur and �the consequent effect on the decision making process.The project manager should take the assistance of a system administrators and rum checks as frequently �as possible.

SEI-CMMandISOCertification•Theformerismostlyforthesoftwareprojects.Thecertificationhelpscustomertohaveconfidencetogeta•projectexecutedbyafirm.

Theabilitytohandlecomplexsoftwareprojectsiscertifiedatfivelevels-Onetwoandthreecorrespondto �companies which have started doing business, standardized their processes with repeatable performances with high quality.The latter levels certify the company’s capability of high standard of maturity and optimization. �This is necessary for software projects because there is not many ‘material’ or ‘completed products’ that can �be inspected and supervised or corrected during the course of development, manufacture or delivery.Thelatterof thetwoisconcernedwithintegration.ISO9000andISO9000:2000arecertifiedstandards �mostlyforfirmswheretheproductshavedrawings,materialswhicharepurchasedprocesseswhichcanbe seen, inspected, corrected and products which can be measures.

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6.4 Recent Revolutions in Project ManagementThefiledof projectManagement has undergone a sea change in recent years owing to,mainly the followingreasons:

Information Technology•Everyprojectwillhavehugeinformationinflowswhichhavesortedclassified,distributed,analyzedfor �purpose of decision making and actions taken.Information Technology helps in the process at speeds which humans cannot hope to reach. This facilitates �theavailabilityofinformationacrosstheorganizationandeveninthefieldbecauseofintranetandinternetfacilities which have become very common.Transactions are no line making reporting, feed-back and decisions become faster. �

Automation of Physical work•Automation means elimination of human intervention in performing tasks. Sophisticated machines and special •Purpose machines have reduced human effort in workplaces.

Movement of material is conducted by programmed material handling equipments like the automated �Guidance Vehicle system.It is possible to identify material because of the bar coding system. �

Workplace Flexibility•With advance in transport and easier movements across countries, the whole world has become one huge �workplace.Withglobalizationmanyfirmshaveofficesinmanycountriesandprojectsareacceptedworldwide. �Thisflexibilityhasenableprojectmanagerstooutsourcematerialandpeople,forachievingbetterprofits. �

Elimination of traditional jobs and work structure•Organizationsaregettingflatter.Teamshavebecomeveryimportant.Theyperformmostofthefunctions �of management – like purchase, recruitment, training, accounts, and transport and so on.Nodoubtthecorporateofficekeepstrackofallactivities. �But the autonomy extended to them has resulted in faster decision making and many times cost effective. �The knowledge and skill factors of various jobs have changed greatly. �This has been practice of well-run and progressive organizations to have a great amount of autonomy to �their employees.Globalization of market, supplies and workforce �Domination of knowledge Holders �

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SummaryProjectdevelopmentisaprocessoffindingoutastowhatareinputsrequired,whowilldoit,howmuchitcost•as how long it will take.In project development process cycle is a non-repetitive activity which creates a unique product.•The followingare the stages involved indevelopmentprocessobtaining the specification, creatingawork•breakdown structure, preparing a comprehensive PERT chart, forming group and terms, forming a core group consistingofmemberschosenfromasmanyteamsaspossible,fixingtheresponsibilityarea,preparingbudget,supplier contracts and setting up communication channels, feed back routes and monitoring.Modern trends in project management perception states that as competitions and project are undertaken by •global scale, projects are no longer constrained by volumes, funds or even by materials.Thereareprogrammersthatarewrittenforvarioussituationsasprojectflows.•There are practices that are followed in Modern Trends in project management perceptions are continuous •business process improvement, forcefiled analysis, information riskmanagement andSEI-CMMand ISOcertification.There are some recent revolution in project management such as information technology, automation of physical •work, elimination of traditional jobs and work structures, globalization of market, supplies and workforce, and domination of knowledge.

ReferencesMeredith, J. and Mantel, S.J.Jr., 2008. • Project Management- A Managerial Approach, 7th ed., John Wiley and Sons.Marglin, S., Dasgupta, P. and Sen, P., 1992. • Guidelines for Project Evaluation, 2nd ed., UNIDO.

Recommended ReadingWysocki, R. K., December 18, 2006, • Effective Project Management, Wiley; 4 ed.Williams, M., March 13, 2008,• The Principles of Project Management, Site Point PublicationJohn M. Nicholas and Herman Steyn(February 20, 2008), • Project Management for Business, Engineering and Technology, Butterworth-Heinemann Publication, 3rd editionPortny, S. E., May 3, 2010, • Project Management for Dummies, Kindle Publication, 3rd ed.

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Self Assessment__________ enunciated by Kurt Lewin, states that the two sets of forces are in opposition.1.

Force Filed Theorya. Force theoryb. Modern trends in project management perceptionc. Project developmentd.

Which of the following sentence is NOT false?2. Theprojectsatisfiestheneedforsomethingwhichwillbeusefulforshorttimea. Theprojectsatisfiestheneedforsomethingwhichwillbeusefulforlongtimeb. Theprojectsatisfiestheneedforsomethingwhichwillbeusefulonpermanentbasesc. Theprojectsatisfiestheneedforsomethingwhichwillbeusefulontemporarybasesd.

Therearemanygoodprojectswhichhavebeenflounderedonaccountsof_________.3. project development a. project overrunb. project under runc. project development process cycled.

The project manager should take the assistance of a _____________ and run checks as frequently as possible.4. project managera. team leaderb. system administratorc. directord.

Principles _________, _____________ and ___________ are being applied by most companies to derive 5. leverage by eliminating waste.

progress, development and informationa. informationtechnology,automationofphysicalworkandworkplaceflexibility.b. Kaizen, lean Manufacturing and TQMc. project overrun, project under run and project development process.d.

Which of the following statements are NOT true?6. Having given autonomy to teams the management need not keep track of their activities.a. Having given autonomy to teams the management need’s to keep track of their activities.b. Having given autonomy to teams the management need not keep track of their funds.c. Having given autonomy to teams the management need not keep track of their progress.d.

The information is constantly subjected to __________ and ____________.7. forcefieldtheoryandinformationtechnologya. information technology and automation on physical workb. scientificandanalyticprocessingc. workplaceflexibilityandinformationtechnologyd.

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With advance in transport and easier movement across countries, the whole world has become 8. _____________.

huge workplacea. project managementb. huge organizationc. small workplaced.

Transactions are on line making ________,___________ and ________ become faster.9. force,filed,fundtheorya. system administration and project development b. reporting, feed back and decisionsc. progress, development and informationd.

The basic characteristic of a project is that it is set of ___________ activities which create a unique product. 10. technologya. project developmentb. organizationc. workplaced.

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Chapter VII

Organizational Issues in Project Management

Aim

The aim of this chapter is to:

explain the concept of organizational change•

highlight the objectives of project management•

elucidate the concept of traits of the professional manager•

Objectives

The objectives of this chapter are to:

explain the meaning of organizational changes•

bring out an organizational change in the project management scenario•

explain the concept of project management•

Learning outcome

At the end of this chapter, the students will be able to:

understand the basic of organizational changes•

learn how a professional manager can implement change•

analyse the latest development in the process of organizational change relevant to project management•

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7.1 IntroductionProject by their nature are not amenable to any streamlined operations. Various activities across all functions are undertaken by a number of people. The project manager and his team committed to any one project will have to depend upon the various functionaries in the administrative functions like Human Resources, Finance, Purchase and legal at various points of time to coordinate their activities.

7.2 Organizational ChangeOrganizational will have structure, hierarchies, functions, communication patterns, decision centre and most •importantcultures,whichdefinethemandmakethemunique.Therearemainlytwochangestocontendwithfirsttheevolutionarychangewhichisgradual,incrementaland•with a narrow focus on one or few processes.These changes take place as the organization evolves and in an effort to ward off some impending problems, •they are implemented.The second occurs as a result of drastic structural change, a new technology, a new thrust for a huge increase •in capacity, a new business acquisition, and implementation of a new strategy.

7.2.1 Evolutionary changeThe following are a few cases of evolutionary change:

Socio-Technical changes•Socio-technical changes take place as the organization evolves over time.

The managers need to optimize both the technical and social systems for promoting effectiveness. �They adjust both the systems gradually so that group norms and cohesiveness are not disrupted. �This also helps in avoiding group-level resistance to change. �However, changes in the way tasks are performed do change perception among workers about their own �groups which might have been disrupted owing to technical requirements.

Total quality management•Totalmanagementisanongoingeffortamongmembersacrossfunctionstofindnewwaystoimprovequality•in products and services.This change process, through incremental requirement both workmen and managers to adopt new ways to •viewing their roles in the organization.Flexibleworkersandflexibleworkteams•

Flexibleworkersandflexibleworkteams–eachworkercansubstituteanotherworkerandcanchangehis �team depending upon the exigency.This means all workers are trained for multiple tasking. �This change has been found to promote quality because of the absence of boredom, which may cause loss �of quality.Thus,aflexibleworkteambecomesagroupofworkerswhoassumeresponsibilityforperformingallthe �operations necessary for a particular portion of the project.

7.2.2 Revolutionary ChangeThe following are a few cases of Revolutionary Change

Reengineering•This is a process by which managers redesign a bundle to task into roles and functions so that organizational �effectiveness is achieved.By doing so, dramatic improvements in critical measures of performance like cost, quality and service are �expected.There will be radical rethinking about the business processes adopted. �

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The following rules for reengineering are effective: �Make changes with the outcome in mind – not tasks that results in them �Make the users of the results of process effective to the change �Let the people on the spot decide on the solution - decentralize �

E-Engineering•The term E-Engineering refers to the attempts of companies to make use of all kinds of information system, �toincreasetheefficiencyofthefunctions.New information systems are installed for conducting all business processes in the organization. �The use of electronic communication within the organization enables frequent interactions between employees �and results in better communication.Theincreaseinefficiencymakestheorganizationtomeetcustomers’requirementsfaster. �It helps in creating and making available high quality of information. The information system using intranet �and internet solutions to carry on their regular activities on line.

Restructuring•This is attempted with change in authority and task relationships of managers. �The move from the functional form or a standard division structure, to combine or divide areas of control �andauthoritytofacilitatebettercoordinationand/orworkflowcanberestructuring.In the process, a few jobs may not be there. A few people may have multi-functional activities. �This is because a change in strategy is considered. Downsizing is a way of restructuring. �

Innovation: •It is the successful use of skills and resources in such a way that their response to customer’s needs to be �effective.Changes in technology have made computers cheaper, faster and more users friendly. �Everycompanyneedstoadoptnewmethods,findthem,tomakethemrelevantinthechangingworld. �The thrust in every department/function should be to do things better with new methods. �

The project manager may have to initiate the change process to increase the effectiveness of their team. Being a key person in the organization, his actions are always under scrutiny.

7.3 Traits Of professional managerThe following traits enable a manager to be effective in his functioning. Capable with these it will be easy to be effective. The top management will look for these in a person who they want to employ for project management.Leadership

These managers lead by exhibiting the characteristics of leadership.•They know what they should do, known why they are doing it, known how to do it and have the courage and •will to do it.They have the power of taking along with them others.•

People RelationshipsAny leader without followers cannot be successful.•They have excellent human relationship skills.•The manager builds up his teams based on the core values of sincerity objectivity and dedication.•They ensure that his subordinates get opportunities for growth based on performance.•He makes them a part of the decision making process, thus ensuring cooperation and commitment during •implementation.Integrity•

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Highest levels of trust, fairness and honesty are expected while dealing with people both within an outside the •organization.This includes the customers, shareholder, dealers, employee, the government and society at large.•They ensure that functioning is clean.•

QualityThe quality philosophy should not cover only the product quality, but every process that has gone into •making it.Economy of words when instructions are given, acknowledging complaisance, arriving on time, remembering the •promises and above all a keen eye for details and patience to make others know what they want are components of quality.

Customer orientationIt is now recognized that every organization has two sets of customers. Internal customers are people in the organization –employee’s directors, team members – any person who needs your services, whose needs of demand’s you satisfy.

External customers –clients and all members of society we come in contact in connection with our business.•They need our solutions for their problems.•

Innovation and creativityProfessional managers think beyond the obvious.•Theyexhibitakeennesstogobehindaproblemandattempttofindtherootcauseoftheproblem.•Theywilldrawfromtheirexperiencefromdiversefields,seekfurtherinformationandconsiderallpossible•alternatives and come out with some new and unique solution.This happens when they have open minds.•

Performance managementThe professional managers not only ensure that his performance is at peal all times, but motivates their entire •to do it.This comes by appreciation and encouragement.•If there is any shortfall they arrange for training them so that their performance improves.•Thus the team member known that they are expected to perform, that they get help to do so and their effort is •recognized.This is the simple path of performance management.•

The following seven step model will be useful:Objectives/performance standards are set-•To mange any criterion, it is necessary to measure the factors that were responsible for ‘what is.•The quality of the input, their quantity and their intended usage•Thenmeasureoftheutilization,theprocessesused,theirsuitabilityandthedifficultiesfacedinutilizationand•how they were resolved then the outcomes are as they were expected.These are communicated to the employees-•

This procedure ensures that they known what is expected of them and help them to adjust their activities �in such a way as to meet them. This enables them to seek help, consult their colleagues or bosses, learn-so that they will meet the �expectations.It is possible that some objectives cannot be met at all. �

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Review/monitor the above•Review help in resetting goals when they cannot be achieved for various reasons such as shortage of resources, •time and so on.

By monitoring the shortfalls can be made up with the allocation of extra resources, or even diverting the �operation.

Check actual performance verses standards set-•This is known as the evaluation phase. Comparison on every detail is made. �Differences are recorded. Particular areas are chosen for improvement. �

Identify gaps•Gaps mean the shortfall in performance standards. The immediate supervisor is also involved. �Theextenttowhichtheyaffectedthefunctionsofthejobitselfareidentified. �

Jointly decide on corrective actions, if needed•There is a possibility that the performance has exceeded the set standards. �Butifperformanceisnotgoodandthereasonsandextenthavingbeenidentified,thecourseofactionfor �effecting corrections are decided. Giving extra responsibilities, training, relocation is considered.

Reset objectives for next period•The targets are revised either upward or downward depending on the conclusion of the appraisal process. �

Identification with the organizationA sense of pride and belonging goes with the “ownership” of the job, the project, the team members and organization.

This is brought about by the culture and communication system in an organization.•If we focus on the increasing competition and ever changing strategies to develop business orientation.•Here the managers should be aware of the company’s plan, products and policies.•An obvious corollary to this is that the organization’s communication policy too should be conducive to such •information sharing.

Empowering employeesThe professional manager should possess the ability to empower his employees down the line.•They are many mangers who are not ready to delegate their authority to subordinates and end up only delegating •responsibility.Empowerment is a process by which employees are encouraged to take decisions pertaining to their area of •work.The professional manager practices empowerment and encourages employees to grow and develop in their •positions.

Coping with changesIt is often said- ‘the only constant in this world is change’.• A professional manager has the ability and capability to cope with change.•To implement change successfully, it is essential that employees are involved in the implementation of •change.Further the positive and negative consequences of change need to be discussed and understood before •implementation.Thus professional manager has the attitude to accept changes as a way of life and takes it in his stride.•

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7.4 Bringing about Organizational Change in the Project Management ScenarioA project is managed by the project manager being completely in charge of all matters connected with it.•Incase of organizations, where multiple projects are handled, restructuring is almost a continuous.•The reason is that resource availability in terms of people and their skills will be changing.•With smoothing, any persons will have to be shifted for short period.•Every project is unique. Resources vary, customer demands are different.•

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SummaryThe project manager and his core team have the responsibility for the project and support services will have to •cater to a number of them.The project manager has complete project and administrative authority over their team.•There are two organizational changes that are evolutionary change and revolutionary change•In evolutionary change are changes that take place as organization evolves and in an effort to ward off some •impending problems that are implemented.In revolutionary change occur as a result o f drastic structural changes, a new technology, a new thrust for huge •increase in capacity and new business acquisition.There are four important instruments such as reengineering, E-engineering, restructuring and innovation.•There are few traits for professional managers such as leadership, people relationship, integrity, quality, customer •orientation, innovation and creativity and performance management.There are some steps to be performed by the manager such as objective performance standards are set, these •are communicated to the employees, review/monitor the above, check actual performance verses standards set, identify gaps, jointly decide on corrective action, if needed and reset objectives.

ReferencesBoar, B.H., 1985. • Application Prototyping: A Project Management Perspective, Amacom Books.Matto, P.K., 1978. • Project Formulation in Developing Countries, South Asian Books.

Recommended ReadingHiatt, J. and Creasey, T., September 2003, • Change Management, Prosci Research publisher.Baca, C., 2005, • Project Manager’s Spotlight on Change Management, Jossey Baso.Obenq, E., August 1996, • All Change: Project Manager’s Secret Handbook, Financial Times Management.

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Self AssessmentOrganizations will have __________, _____________, _____________ and most importantly culture- which 1. definesthemandmakethemunique.

structure, hierarchies, functionsa. objectives, structure , communicationb. outcome communication, inputsc. problems, objectives, communicationd.

Make changes with the _______ in mind and not the ________ that results in them.2. objectives and functionsa. outcome, tasksb. organization and problem solvingc. objectives, outcomed.

A work culture is very conductive for _______ which is the aim of all creativity.3. outcome a. objective b. organizationsc. problem solvingd.

To implement changes successfully, it is __________ that employees are involved in the implementation of 4. changes.

objectivesa. outcomeb. riskc. essentiald.

The professional manager should possess the ability to _________ his employees down the line.5. solve problemsa. risksb. empowerc. identificationd.

Which of the following statement is NOT true? 6. Project manager do not delegate authority to their subordinatesa. They end up by delegating responsibilityb. Project manager do not delegate authority, they delegate responsibilityc. Project manager do delegate authority, they delegate responsibilityd.

Which of the following sentence are NOT false?7. Opportunities for creativity are many in projectsa. There are no creativity in projects b. There no opportunities in projects c. There are no creativity and opportunities in projectd.

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Which of the following statements is NOT true?8. When multiple projects are handled restructuring is quite often a. When multiple projects are handled restructuring is done frequently.b. When multiple project are handle restructuring is rare c. When single project is handle restructuring is rared.

Which of the following statement is NOT false?9. A professional manager has the ability and capacity to cope with changes a. A professional manager does not has the ability and capacity to cope with changes b. A manager has the ability and capacity to cope with changes c. A professional manager has the ability and capacity to cope with changesd.

Empowerment is the process by which _________ are encouraged to take decisions pertaining to their area 10. work.

team leadera. project managerb. director c. employees d.

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Chapter VIII

Project Risk Management

Aim

The aim of this chapter is to:

explain the concept of project risk management•

elucidate the student about the objectives of risk management•

explain risk analysis•

Objectives

The objectives of this chapter are to:

learn how to mitigate risk •

analyze the risk and steps necessary to manage the risks•

understand risk management planning•

Learning outcome

At the end of this chapter, the students will be able to:

understand the concept of risk analysis •

discuss review risks•

understand risk management process•

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8.1 IntroductionIn anyproject, it is difficult to assess thequantumof risk involved.Therefore carefulplanningwill results inminimizing the risk in a project. The formulation of a project is based on the estimate of the past data available with the project management team. There will b a lots of uncertainties and surprises in a project during its execution. It is necessary to analyze and estimate the project in all respects in order to enable the manager take proper decision on the project.

8.2 Planning for Project Surprises-coping with RiskRisk management is similar to performing preventive health care and buying insurance for your project. It involves identifying potential problems, analyzing those risks planning to manage them, and reviewing them.

Risk management is insurance for project, and can help reduce your costs and efforts when troubles strikes.

There are different types of risks involved in a project; these are:Project risks: It is the risk arising out of a change in the scope of the project, changes in the work quantities, and •changes in the resources requirements, estimation error or unexpected developments in a project.Market Risks: It is the risk arising out of a change in any of the following marketing parameters – price change, •change in market regulation, economic changes, competition and competitors products and so on. Industryrisk:Itisthearisingoutofachangeinscientificinstrumentsusedinbusinessactivity,changesin•companies’ policies because of changes in the industry. Social and political risk: It arises out of changes in labor situation, labor laws and environment law.•

8.2.1 When to Perform Risk managementThe risk process, describe below, should be performed at the beginning of a project, at the beginning of the major phasesinaprojectandwhentherearesignificantchanges.

There are four steps to manage a risk:RiskIdentification

Itisnecessarytoidentifyrisk,wemustdefinerisk.•Risks are potential problems, ones that are not guaranteed to occur.•During identifying risk, you might notice some known problems.•This is carried out by a brainstorming session; it will take about 15 to 30 minutes.•During this process do invite the whole project team, customer, people who have been on similar projects •and experts in the subject area of the project. There are certain items to be considered during the brainstorm session:

Selection of weak areas in a project, such as unknown technology being used or to be used. �Things, that is critical or extremely important to the effort, such as the timely delivery of a vendor’s database �software, creation of translators, or a user interface that meets customer’s needs.Things that are caused problems in the past, such as loss of key staff, missed deadline, or error-prone �software.

Risk analysisThefirststepinriskanalysisistomakeeachriskitemmorespecific.•Thenextstepistosetprioritiesanddeterminewheretofocusriskmitigationefforts.Someoftheidentified•risks and unlikely to occurs, and other might not be serious enough to work about.During the analysis, discuss with the team members, each risk to understand how devastating it would be if it •did occur, and how likely it is occur.It is usual practice to analyze risk either by sensitivity analysis or by probabilistic analysis.•

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In sensitivity analysis a study is done to analyze the changes in the variable values because of a change in one •or more of the decision criteria.In the probability analysis the frequency of a particular event occurring is determine, based on which it average •weighted average value is calculated.

8.3 Risk Management PlanningThere are two things one can do to manage risk.•Firstly, take action to reduce the like hood of the risk occurring.•Some project that work process improvement make their deadlines earlier and increases their efforts to minimize •the like hood of team members being pulled off the project due to changing organizational priorities.The second step, we can take action to reduce prior to the crisis, such as the creation of a simulator to use for •testing if the hardware is late.At other time, it is simple backup plan, such as running a night shift to share hardware.•

8.4 Risk Management ProcessDetermine scope of the risk session. Select the team and moderator. The moderator explains the risk process •to new team members.Things which are critical are extremely important to the effort.•Currentproblemshouldbetreatedasproblemsandnotasrisks.Stakeholdersmayadoptvariousstratifiesto•prevent the risk but risks are unavoidable.There is a contingency plan that has been to prepare to handle the risks. The main steps to handle risks are:•

Identify risks - For each risk item;Does the team understand the risk item? If necessary, split into separate risk items•What would the consequences be if risk item did happened•Determine what the impact would be if the worst happened, using a scale of the one to ten•Determine how likely it is that risk item will occur, using a scale of one to ten•Determine the priority of the risk items and thus which to work on•

Analyze the risks- Use any of the available methods to analyze the risk. Software may be used for the purpose of analysis.

Plan to mitigate risksSelects the most important risks issues, such as the top 2 or 3, or up to 20%.• Brainstorm on actions that could be taken to reduce the like hood of the risk item occurring.•Brainstorm on actions that could be taken to reduce the impact if the risk item does occur.•Decide which actions to purse. Select a person to be responsible for each action chosen. Documents the •information in the risks management plan.Review risk- Establish how often risks should be reviewed. Risk reviews can be incorporated into existing •project status and phase review. Update the list based on the risk review sessions.

Control the risk-If refers to controlling the deviations in a project which may be one of the reasons to induce a risk element in •the project.Controlling the risk ensures that the project is likely to be completed as per the plan and heading towards the •goals set for the project.It is preferable to work in a structured mode to handle risks in a project.•

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8.5 Overview of Risk ManagementThereismutualbenefitforcorporateandmajorinformationsystemsprojectsteamsandmanyoftheprograms•as a result of the information exchange generated by the project management reviews.Corporate and major information systems are reviewed from their inception to retirement, i.e. throughout Capital •Planningandinvestmentcontrolphasesofidentification,selection,controlandEvaluate.Performance measurements are used in project management and quality processes to determine and communicate •statusandaccomplishmentsmeasuredagainstspecificobjectives,schedulesandmilestone.Therearetwothingsonecandotomanagerisk.Thefirstistotakeactiontoreducethelikehoodoftherisk•occurring. Secondly, we can take action to reduce the impact if the risk does occur.

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SummaryIt is observed that if a team plans everything carefully than there will be lees numbers of risks.•Theriskanalysisofaprojectisusedforthefinancialappraisaloftheproject.•Risk management is similar to performing preventive health care and buying insurance for your project.•When risk management techniques are used, you can prevent problems and anticipates other to make the project •run smoothly.There are different types of risks in a project such as project risks, market risks, industry risk and social and •political risks.Therearealtogether4stepstomanagearisksuchasriskidentification,riskanalysis,riskmanagementplanning•and risk review.Riskidentificationcanbedoneusingabrainstormsession.•Inriskanalysisthefirstthingtodoidtomakeeachriskitemmorespecificandthesetistosetprioritiesand•determine where to focus risk mitigation efforts.

ReferencesKendrick, P., 2009. • Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project, 2nd ed., AMACOM.Barkley, B., 2004. • Project Risk Management, 1st ed., McGraw-Hill Professional.

Recommended ReadingCooper, D. F., Grey, S., Raymond, G. and Walker, P., Dec 20, 2004, • Project Risk Management Guideline: Managing Risk in Large Project and Complex Procurement, Wiley Publication, 1st ed.Royer, P. S. Oct 25, 2001, • Project Risk Management: A Proactive Approach, management concept publication. A Guide to The Project Management Body of Knowledge• , November 2004, Project management institute; 3rd ed.

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Self Assessment There will be a lot of __________ ____________ in a project during its execution. 1.

uncertainties and Surprisesa. risks and problems b. planning and objectives c. identificationandoverviewsd.

Thefirststepinriskanalysisistomakeeachriskitemmore________.2. objectives a. planning b. specificc. problemsd.

In ___________ a study is done to analyze the change in the variable values because of a change in one or more 3. of the decision criteria.

risk analysis a. sensitivity analysis b. planning c. specificd.

In the __________, the frequency of a particular event occurring is determined, based on which it average 4. weighted average value is calculated.

sensitivity analysis a. risk management b. probability analysis c. planningd.

Riskidentificationcanbedoneusinga___________session.5. risk management a. planning b. sensitivity analysis c. brainstormingd.

Which of the following sentence is NOT false?6.

Risk Management is insurance for projects, and can help reduce your costs and efforts when trouble a. strikesRisk Management is insurance for problems, and can help reduce your costs and efforts when trouble b. strikesRisk Management is insurance for projects, and can help increase your costs and efforts when trouble c. strikesRisk Management is insurance for projects, and can help reduce your efforts and increase your costd.

Which of these sentences is NOT true?7. Industry risk arises out of changes in labor situation, labor laws and environment law. a. Social and potential risk arises out of changes in labor situation, labor laws and environment lawb. Market risk- it arises out of change in price, market regulation and economicc. Industryriskarisesoutofchangetheriskoutofchangeinscientificinstrumentsd.

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Which of the following sentence is NOT false?8. When risk management techniques are used, people can prevent problems and risks to make the project a. run smoothlyWhen risk management techniques are used, people can prevent problems and anticipate other to make the b. project run smoothlyWhen risk management techniques are used, people can prevent risks to make the project run smoothlyc. When risk management techniques are used, people can not prevent problems and risks to make the project d. run smoothly

In____________thefirststepistotakeactiontoreducethelikelihoodoftheriskoccurring.9. review risks a. risk analysis b. risk planning c. risk management planningd.

___________ involves identifying problems, analyzing those risks, planning to manage them, and reviewing 10. them.

Risk analysis a. Risk planning b. Risk management c. Specificd.

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Case Study I

Project planning and process of Millau Viaduct

Thepurposeofprojectplanningistofirstidentifytheprojectworkareasandforcesaffectingtheprojectandthentodefineboundariesoftheproject.

IntroductionOn December 17, 2004, the Millau viaduct, constructed over the Tarn Valley in the southern region of France, was inaugurated by the French President Jacques Chirac (Chirac).

Planning ProcessThe construction of the viaduct was to be handled by several Eiffage subsidiaries including Eiffage Construction (in charge of the construction of the piers, the abutments and the toll facility), Eiffel Company (Eiffel) (to construct the steel deck and pylons), Forclum (to handle all the electrical works, and Appia Research (Appia) (responsible for the development and application of the coating for the deck).

Construction ProcessMillau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The construction of the bridge was planned in such a manner as to minimize the environmental impact. By using steel in place of concrete for most of the construction, the project employed fewer machines and trucks. The production manager had handed the construction process very well.

Evaluation and Completion of the ProjectEiffage engaged the services of two environment specialists who guided them through the planning as well as execution stages of the project to ensure the environment friendliness of the project.

QuestionsWhat is the purpose of planning of project?1. Answer

Thepurposeofprojectplanningistofirstidentifytheprojectworkareasandforcesaffectingtheproject �andthentodefineboundariesoftheproject.

What are the stages in project planning of Millau viaduct?2. Answer

There are 4 stages involved in this project. They are as follows: �Planning stage -Construction stage -Evaluation -Completion -

How was the construction stage carried out by the production manager?3. Answer

Millau viaduct involved the use of cutting-edge technology and satellite guided GPS systems. The �construction of the bridge was planned in a manner such that the environmental impact is minimal. By using steel in place of concrete for most of the construction, the project employed fewer machines and trucks. The production manager had handed the construction process very well.

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What was the aim of the project? How was the aim of the project achieved after its completion?4. Answer

The aim of the project was to achieve environment friendliness. �Eiffage engaged the services of two environment specialists who guided them through the planning as well �as execution stages of the project to ensure the environment friendliness of the project

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Case Study II

FORD PRODUCTION SYSTEM - RISK MANAGEMENT

IntroductionFord has established several innovative automobile manufacturing techniques from its beginning. In the mid 1990s, Fordmodernizeditsmanufacturingoperationsinitseffortstoinducemoreflexibilityandenhancetheefficiencyofits automobile production systems. The restructuring effort was known as Ford Production System (FPS).Ford was established by Henry Ford on June 16, 1903, with an initial investment of $100,000.

Ford Production SystemIn January 1995, Ford employed a company-wide re-engineering initiative called Ford 2000. One of the major objectives of Ford 2000 program was to develop and implement a new manufacturing system called the Ford ProductionSystem(FPS).AccordingtoFord'swebsite,“thevisionofFPSisalean,flexibleanddisciplinedcommonproductionsystem.Itisdefinedbyasetofprinciplesandprocessesthatemploysgroupsofcapableandempoweredpeople, learning and working safely together in the production and delivery of products that consistently exceeded customers' expectations in quality, cost and time. Their main aim was to identify risk and implement risk management program.”

Risk OccurrenceTheProjectmanagerwasawarethatitisdifficulttoassessthequantumofriskinvolved.Itrequiredcarefulplanningto minimize the risk in a project. Thus, he formulated the past data with the project management team and tried to search if there are any risks involved in the project. He found that project risk will occur in terms of quantity required and the output achieved.

Risk ManagementThe project manager formulated the following steps to reduce the risk.

First step is to take action to reduce the like hood of the risk occurring. •Second, to take action to reduce the impact if the risk does occur.•

QuestionsHowwastheriskidentifiedbytheprojectmanagerofFord?1. Which type of risk occurred in this case?2. Was the risk managed appropriately by the manager?3. If you are in place of manager, how will you identify the risk and how will you control the risk in a project?4.

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Case Study III

Rajendra Kulkarni is a manager in V.P. manufacturing and operations of a medium sized pharmaceutical company. Rajendra has a Ph. D in Chemistry but has not been directly involved in Research and New product development for twenty years. Through experience and practice he runs the operations well. The company does not have a problem of turnover, but it is obvious to Rajendra and other key management personnel that the temporary workers are not working anywhere near their full potential. Rajendra is very upset with the situation because with rising costs the only way that the company can continue to prosper is to increase the productivity of its workers. Rajendra decides to implement performance management program to increase the productivity of the organization.

Thus, he carries out the performance management in following ways:Objectives of the organization•Theses objectives should be communicated to employees•To achieve objective, production target should be set with the help of employees•Review should be done to calculate performance•Check achieved target with the standard target set•Maintain records•Change targets if required for the next project•

With the implementation of this performance management plan, there was huge improvement in the overall productivity of the organization.

QuestionsWhat is Performance management?1. How was the performance management planned by Rajendra?2. If you are in place of Rajendra, how will you plan for performance management?3.

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Bibliography

Meri Williams( March 13, 2008), • The Principles of Project Management, Site Point PublicationJohn M. Nicholas and Herman Steyn(February 20, 2008), • Project Management for business, engineering and technology, Butterworth-Heinemann Publication, 3rd edition.Stanley E. Portny ( May 3, 2010),• Project management for dummies, Kindle Publication, erd edition.David I. Cleland( July 29, 2004), • Field Guide to project management, Wiley Publication, 2nd edition.Jack R. Meredith and Samuel J. Mantel( December 10, 2008), • Project management: A Managerial approach, Wiley publication, 7th edition.Ursula Kuehn( March 1, 2006), • Integrated cost and schedule control project management, Management concept publication.Gregory T. Haugan (October 1, 2001), • Project Planning and Scheduling, Management Concept.Peter Hobbs(February 2, 2009), • Project Management, D K adult publication.Kevin R. Callahan and Lynn M. Brooks( August 5, 2004), • Essentials of Strategic Project management, Wiley Publication.Harold Kerzner(March 23, 2009), • Project Management: A system Approach to Planning, scheduling and controlling, Wiley Publication, 10th edition.Josh McDowell( October 12, 2000), • Resolving Conflicts, Thomas nelson.Nicki S, Adams and John R. Kirchof(1982), • Conflict Management for Project Managers, Project Management institute; 1st edition Gerard M. Hill (August 22, 2007), • The Complete Project management office handbook, Auerbach Publications; 2 edition, page 3 to 132.Craig J. Letavec (October 4, 2006), • The project Management Office: Establishing, managing and growing the value of a PMO, J. Ross Publishing.Lia Tjahjana, Paul Dwyer PMP and Mohsin Habib(September 28, 2009), • The Project Management Office Advantage, AMACOM publication.Robert K. Wysocki(December 18, 2006), • Effective Project Management, Wiley; 4 edition.Meri Williams( March 13, 2008), • The Principles of Project Management, Site Point Publication.John M. Nicholas and Herman Steyn(February 20, 2008), • Project Management for Business, Engineering and Technology, Butterworth-Heinemann Publication, 3rd edition.Stanley E. Portny ( May 3, 2010), • Project management for dummies, Kindle Publication, 3rd edition.Jeffrey Hiatt and Timothy Creasey( September 2003),• Change Management, Prosci Research publisher.Claudia Baca(April 9, 2005), • Project Manager’s Spotlight on Change Management, Jossey Baso.Eddie Obenq(August 1996), • All Change: Project Manager’s Secret Handbook, Financial Times Management.Dale F. Cooper, Stephen Grey, Geoffrey Raymond, and Phil Walker (Dec 20, 2004),• project Risk management Guideline: Managing Risk in large Project and Complex Procurement, Wiley Publication, 1st Edition.Paul S. Royer (Oct 25, 2001), • Project Risk Management: A Proactive Approach, management concept publication.A Guide to the Project Management Body of Knowledge• ( November 2004), Project management institute;3rd edition, page 237-264.

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Self Assessment Answers

Chapter Ic1. a2. b3. a4. d5. c6. a7. c8. d9. a10.

Chapter IIb1. c2. c3. a4. a5. c6. c7. b8. d9. a10.

Chapter IIIb1. c2. d3. c4. a5. b6. c7. b8. a9. c10.

Chapter IVb1. c2. a3. b4. a5. c6. b7. a8. c9. d10.

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Chapter Vb1. c2. a3. d4. b5. c6. b7. c 8. a9. b10.

Chapter VIa1. b2. b3. c4. c5. a6. c7. a8. c9. b10.

Chapter VIIa1. b2. d3. d4. c5. c6. a7. c8. b9. d10.

Chapter VIIIa1. c2. b3. c4. b5. a6. a7. b8. d9. c10.