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1. Q1 Functional organization has been divided to put the specialists in the top position throughout the
enterprise. This is an organization in which we can define as a system in which functional department
are created to deal with the problems of business at various levels. Functional authority remains
confined to functional guidance to different departments. This helps in maintaining quality and
uniformity of performance of different functions throughout the enterprise. The concept of Functional
organization was suggested by F.W. Taylor who recommended the appointment of specialists at
important positions. For example, the functional head and Marketing Director directs the subordinates
throughout the organization in his particular area. This means that subordinates receives orders from
several specialists, managers working above them.
Features of Functional Organization
1. The entire organizational activities are divided into specific functions such as operations, finance,
marketing and personal relations.
2. Complex form of administrative organization compared to the other two. 3. Three authorities exist-
Line, staff and function. 4. Each functional area is put under the charge of functional specialists and he
has got the authority to give all decisions regarding the function whenever the function is performed
throughout the enterprise. 5. Principle of unity of command does not apply to such organization as it is
present in line organization.
Merits of Functional Organization
1. Specialization- Better division of labour takes place which results in specialization of function and it¶s
consequent benefit. 2. Effective Control- Management control is simplified as the mental functions are
separated from manual functions. Checks and balances keep the authority within certain limits.
Specialists may be asked to judge the performance of various sections. 3. Efficiency- Greater efficiency is
achieved because of every function performing a limited number of functions. 4. Economy-
Specialization compiled with standardization facilitates maximum production and economical costs. 5.
Expansion- Expert knowledge of functional manager facilitates better control and supervision.
Demerits of Functional Organization
1. Confusion- The functional system is quite complicated to put into operation, especially when it is
carried out at low levels. Therefore, co- ordination becomes difficult. 2. Lack of Co- ordination-
Disciplinary control becomes weak as a worker is commanded not by one person but a large number of
people. Thus, there is no unity of command. 3. Difficulty in fixing responsibility- Because of multiple
authority, it is difficult to fix responsibility.

2. 4. Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may not agree on
certain issues. 5. Costly- Maintainance of specialist¶s staff of the highest order is expensive for a
concern.
Matrix Organization ‡This is a mixture of functional and projectized organizations and proceeds from a
weak to a strong matrix based on the allocation of resources and the level of authority the project
manager exerts over project, time, and personnel scheduling. This type of organization tends to be more
satisfying to a project manager because it migrates from a weak matrix organization toward a strong
matrix organization. ‡ Projected org. This is generally a more rewarding type of environment for a
project because most of the resources are specifically allocated to the project and the project manager
has full discretion over the company's time and agenda. This allows the project manager the authority
and resources to accomplish the project more effectively without conflict from the functional manager.
The project manager is generally provided referent power to accomplish the goals and objectives of the
project without interference from other sources. He is also allowed to escalate problems and issues to
the highest levels of the organization in order to complete the project. This is the most idealistic working
environment for a project manager, although he is also held fully responsible for all problems and
positive or negative results. Table 2.2 summarizes the types of organizations, their project management
attributes, and some

3. Q1. Properties y Division of labour y Centralization of similar resources Weakness y When involved in
multiple projects conflicts arise over relative priorities of these projects in competition of resources y
Longer time in decision making y Emphasis placed on its own specialities rather that goal of project Q2.
Soft copy check Saket mail Combination of Functional structure & product structure Projectised
organization y Lowest level of resources are with Project Manager y Highest level of control is with Sr.
Business Manager y PMO at all levels in the organization Q3. 6 Steps y Identify the activity according to
the objectives y Determine the activities which are needed to execute the plan y Classify the activities
based on function & products o Group the activities & define jobs o Group jobs & define sections o
Group Section & define departments o Group Departments & define admin units y Define
responsibilities for each job & expectations y Delegate authority resources & facility y Establish
structural relationship between sections Q4. Process Management and Project Management go hand-in-
hand to deliver a successful project. Process Management deals with defining and managing what is
done on a project, including tasks completed, deliverables produced, roles performed, and tools used. It
deals with the scientific method used to deliver an IT solution. Project Management deals with tracking
the process being executed, from a schedule and cost perspective. It includes functions for developing
the optimal project schedule, producing a financial model of the project, scheduling and tracking of
effort against plan, managing costs against budget, and reporting of status, to name a few. The defining
characteristic of process vs. project is repeatability vs. uniqueness. Process is a repetitive collection of
interrelated tasks aimed at achieving a certain goal. Project is a unique endeavour with a beginning and
an end undertaken to achieve a goal.

4. Process management has emphasis on increasing "repeatability" of the tasks, efficiency (descreasing
time needed, reducing cost), increasing quality (including consistency in quality). Project management
has emphasis on getting the thing done, achieving the end result. Higher efficiency is harder to achieve
since it might require custom tools and methods that can only be developed if the project was turned
into a repetitive process. Applied to software development making a daily build is a process: It's a
sequence of tasks aimed at end result. The sequence is repetitive. Tasks are known on the outset, since
the process is repetitive.
When managing daily builds we want them to be cheap, fast and consistently meet quality standards, in
most cases this is best achieved through increased automation. Designing a new feature is a project: The
feature is unique, once we've designed it we won't be designing it again. Maybe version two, but its
going to be a different endeavour. At some point we need to stop designing the feature (even when its
far from perfect) and it is best if we stipulate in advance how do we know that we've reached that point.
We're not as much concerned with that the design is achieved though the most efficient sequence of
steps, as with actually coming up with a sufficiently good design at the end. Hence the sequence of tasks
that goes into design will be hard to automate and we need to concentrate on keeping the bounds, re-
evaluating criterias, adjusting for newly discovered facts and generally moving the entire thing towards
completion. We have to constantly select from an increasing number of possible tasks that come up in
the light of newly discovered facts and pick these that will take us closer to the goal. Q5. y y y Specific
activity on which money is spent in expectation of return It has a specific start & end It has 3 attributes o
Input characteristics o Output characteristics o Social Cost Benefit Analysis Special Features o Has a
mission or set of objectives o Its responsibilities are assigned to individual agency
y

5. o o o o o
It has a life cycle (Growth, Decay, Maturity) It is a team work It is customer specific Exposed to risk &
uncertainity Subcontract
Q7. Project fesability report y It includes market analysis, technical analysis, social profitability, Financial
analysis y Starting point: Establishment of objectives to be achieved y Pre Selection stage: in-depth
study: o market analysis o technical analysis o social profitability o Financial analysis Q13. PDF Attached
NPV vs IRR NPV > 0 project is accepted IRR > Cost of capital project is acceptable Q15. y Various Stages
of Project Life Cycle y Stages are closely linked & follow logical progression which provides basicsfor the
success y Pricipal stages of the cycle are o Identification of project o Its Design o Preperation & appraizel
o Its implementation o Evaluation ones the investment phase has been completed Q17. Earned Value
Concept Costs are budgeted period-by-period for each work package or cost account (timephased
budgeting). Once the project begins, work progress and actual costs are tracked every period and
compared to these budgeted costs. Managers measure and track work progress using the concept of
earned value. Roughly, earned value represents an estimate of the percentage of work completed thus
far. (The variable BCWP, discussed later, is the identical concept.) Example 1: Earned Value The earned
value of work completed in a project is determined by the combined status of all work packages at a
given time. It is computed by taking (1) the sum of the budgeted costs of all work packages thus far
completed, plus (2) the sum of the earned value (costs or subjective estimates) of all open (started but
not yet completed) work packages. If, for example, as of June 30 work packages A, B, and C had been
completed, and if they had been budgeted to cost $20K, $10K, and $12K, respectively, and if,

6. additionally, Work Package D had been budgeted to cost $20K and was only 75 percent completed, then
the earned value for the project on June 30 would be: $20K + $10K + $12K + 10.752 $20K = $57K Like
expense data, the earned value for the project, individual work packages, or levels in between can be
summarized and reported through the PCAS. The application of earned value to project performance
analysis will be discussed later.
Q18.
y y
y y
BCWS ± Budgeted Cost of Works Scheduled ± the baseline for the analysis, cumulated planned costs
related to time of their incurrence; BCWP ± Budgeted Cost of Work Performed ± a measure of physical
progress of works expressed by cumulated planned cost of works actually done related to time, it is also
called Earned Value (like the method it is used by); ACWP ± Actual Cost of Work Performed ± cumulated
ammount payable for works done related to time; BAC ± Budget at Completion ± total planned cost of
the whole project, it equals BCWS at the planned finish;

7. y y
T ± planned duration of the project. From the diagram CV = BCWP ± ACWP SV = BCWP ± BCWS Time
Now varience = BCWP (in terms of time axces) ± BCWS ( in terms of time axces) Varience at completion
= ACWP ± BCWP (both in terms of cost) Forecast time varience = BCWP Completion time ± BCWS
Completion time
Q22. Sir PPT (PESTLE) SWOT y Performed before initialization of project in order to analyse various
elements & formulate the foundation of Business plan y Project managers are usually in charge to
communicate the objectives of SWOT analysis to the entire team before commencement of project y
Strengths o Benefits and strengths of an org. That help achieve the objectives of a project. o Track
Record o Resources available o Skill Level o Process & Systems o Reputation of the firm y Weakness o
Factors that hinder the achievement o Gaps in knowledge & skill, Dedlines, Budgeting & funding, process
& systems, completing project, process & systems are some of the barriers in completion of project y
Opp o External conditions that determine the project success o Tecn & Infra Deve o Changing
consumner behaviour o New innovations o Emerging & developing markets y Threats o External
conditions that could hinder the project success o Political , Enviournmental, Competitor activity,
Seasonal effects