This document discusses key aspects of project management including: 1. The meaning, forms of organization, human aspects, life cycle, planning, control, and prerequisites for successful implementation of projects. 2. The three main factors in project management are time, cost, and scope, with quality and customer expectations also being important. 3. Project life cycles typically include initiation, planning, execution and control, and closure phases. Effective project implementation requires adequate formulation, sound organization, proper planning, timely funding, judicious procurement, contract management, and monitoring.

1. Project management
MBA IV Semester

2. Unit-I : Project management
• Meaning of project management,
• Forms of project organization,
• Human aspects of Project Management,
• Project life cycle,
• Project Planning, Project control,
• Pre-requisites for successful project
implementation and its stages,
• role and responsibilities of project
managers.

3. Meaning of Project Management
• Project management in the modern sense
began in the early 1960s, although it has its
roots much further back in the latter years of the
19th century.
• The need for project management was driven by
businesses that realised the benefits of
organising work around projects and the critical
need to communicate and co-ordinate work
across departments and professions.

4. Definition
• Project management institute, USA:
A project according to the institute, is a
one shot, time limited, goal directed, major
undertaking, requiring the commitment of
varied skills and resources.
• A combination of Human and non human
resources pooled together in a temporary
organization to achieve a specific
purpose.

5. Why Project Management?
• Today’s complex environments require
ongoing implementations
• Project management is a method and
mindset…a disciplined approach to
managing chaos
• Project management provides a
framework for working amidst persistent
change

6. Characteristics/Features
• 1.Objectives
• 2.Life Span
• 3.Single Entity
• 4.Team Work
• 5.Life Cycle
• Uniqueness
• Risk and Uncertainty

7. • Project management is often summarised in a triangle.
The three most important factors are time, cost and
scope, commonly called the triple constraint. These form
the vertices with quality as a central theme.

8. • More recently, this has given way to a project
management diamond, with time, cost, scope and quality
the four vertices and customer expectations as a central
theme. No two customers' expectations are the same so
you must ask what their expectations are.

9. Human aspects of Project
Management
• A satisfactory human relations system is
essential for the successful execution of a
project. Without such a system the other
systems of project management, however
sound, are not likely to work well.
• To achieve satisfactory human relations in
the project setting, the project manager
must successfully handle problems and
challenges relating to:

10. • Authority
• Orientation
• Motivation
• Group functioning

11. Forms of project organization
• Line and staff organisation
• Divisional organisation
• Matrix organisation

12. Line and staff organisation

13. Line and staff organisation
• In this form of organisation, a person
(Project coordinator) is appointed with the
primary responsibility of coordinating the
work of the people in the functional
departments.
• Does not have direct authority and direct
responsibility of the line management.
• Rendering advice, sharing information,
and providing assistance

14. Limitations
• This is a weak form of organisation which
may be employed mostly for small
projects- it is certainly not suitable for
large projects.
• (Project coordinator) deprived of formal
organisational authority ,he may find it
difficult to exert leadreship and feel unsure
of his role.

15. Divisional organisation

16. Divisional organisation
• A separate division is set up to implement the
project.
• Headed by the project manager this division has
its complement of personnel over whom the
project manager has full line authority.
• He has total formal control over the division he
heads
• A very strong organisation, facilitates planning
and control, better integration of efforts
• Improves the prospects of fulfilling the time and
budget targets

17. Limitations
• Inefficient use of resources
• Unnecessary duplication of specialists
• Difficult to achieve a higher degree of
specialization of expertise .

18. Matrix Organisation

19. Matrix Organisation
• Twin objectives: efficient use of resources and
effective realisation of project objectives- at the
cost of greater organisational complexity,
• In this the personnel working on the project have
a responsibility to their functional superior as
well to the project manager.
• His means authority is share between project
manager and functional manager.

20. • Employees in a matrix organization report
on day-to-day performance to the project
or product manager whose authority flows
sideways (horizontally) across
departmental boundaries. They also
continue to report on their overall
performance to the head of their
department whose authority flows
downwards (vertically) within his or her
department.

21. limitations
• In matrix form of organisation , hierarchical
principle is ignored .
• Clearly shows that the matrix form of
organisation involves greater
organisational complexity and creates an
inherently conflictful situation.
• Costs can be increased if more managers
(i.e. project managers) are created
through the use of project teams.

22. Project life cycle

23. (1) Initiation
• In this first stage, the scope of the project is
defined along with the approach to be taken
to deliver the desired outputs. The project
manager is appointed and in turn, he selects
the team members based on their skills and
experience. The most common tools or
methodologies used in the initiation stage are
Business Plan, Project Framework (or
Overview), Business Case Justification, and
Milestones Reviews.

24. (2) Planning
• The second phase should include a detailed
identification and assignment of each task
until the end of the project. It should also
include a risk analysis and a definition of a
criteria for the successful completion of each
deliverable. The governance process is
defined, stake holders identified and reporting
frequency and channels agreed. The most
common tools or methodologies used in the
planning stage are Business Plan and
Milestones Reviews.

25. (3) Execution and controlling
• The most important issue in this phase is
to ensure project activities are properly
executed and controlled. During the
execution phase, the planned solution is
implemented to solve the problem
specified in the project's requirements.

26. (4) Closure
• In this last stage, the project manager
must ensure that the project is brought to
its proper completion. The closure phase
is characterized by a written formal project
review report containing the following
components: a formal acceptance of the
final product by the client.

27. Pre-requisites for successful project
implementation
• Time and cost over-runs of projects are very
common in India, particularly in the public
sector. Due to such time and cost over-runs,
projects tend to become uneconomical,
resources are not available to support other
projects and economic development is adversely
affected. What can be done to minimise time
and cost over-runs and thereby improve the
prospects of the successful completion of
projects? While a lot of things can be done to
achieve this goal, the more important ones
appear to be as follows:

28. Adequate formulation
• Slip-shod methods used for estimating
costs and benefits.
• Omission of project linkages.
• Flawed judgments because of lack of
experience and expertise.
• Undue hurry to get started.
• Deliberate over-estimation of benefits and
under-estimation of costs.

29. Sound Project Organization
• It is led by a competent leader who is
accountable for the project performance.
• The authority of the project leader and his team
is commensurate with their responsibilty.
• Adequate attention is paid to the human side of
the project.
• Systems and methods are clearly defined.
• Rewards and penalties to individuals are related
to performance.

30. Proper Implementation Planning
• Once the investment decision is taken-
• Develop a comprehensive plan for various
activities like land acquisition, requirement
of personnel etc.
• Estimate meticulously the resource
requirements
• Specify cost standards.

31. Advance action
• On following activities must be initiated :
• Acquisition of land, identifying technical
collaborators/consultants, arranging for
infrastructure facilities, preliminary design.

32. Timely availability of funds
• Once a project is approved, adequate
funds must be made available to meet its
requirements as per the plan of
implementation- it would be highly
desirable if funds are provided even
before the final approval to initiate
advance action.

33. Judicious Equipment tendering and
procurement
• A judicious balance must be sought which
moderates the outflow of foreign exchange
and provides reasonable fillip to the
development of indigenous technology.
• To ensure effective coordination.

34. Better contract management
• Competence and capability of all the
contractors must be ensured- one weak
link can destroy the timely performance of
the contract.
• Penalties for bad performance and
rewards for good performance.
• Help should be provided to contractors
and suppliers when they have genuine
problems.

35. Effective monitoring
• To keep a tab on the progress:
• Anticipating deviations from the implementation
plan .
• Analyzing emerging problems
• Taking corrective action.