Project evaluation(2)

PROJECT MANAGEMENT AND EVALUATION

Shabori DasRoll : 216Prerna ThakurRoll No: 209Section: DSemester: IV

24th March 2011Project Management and Evaluation

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Project Management and Evaluation

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Matrix Organization Structure There are three types of orgnisation structure: Functional,

Project and Matrix.• Matrix organisation structure is a cross between functional and

project organization structure.• This organisation structure is used when the orgnisation caters to

a product which requires unique customization.• It provides the project and customer focus of a project structure,

but it retains the functional expertise of the functional structure.• The project and the functional managers handle the respective

responsibilities of the organisation which results in the success of the project.

• The matrix type of organisation provides effective utilization of company resources.

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Matrix Organization Structure (contd)• The matrix organisation provides a core of functional expertise

that is available to all porjects and thus expertise is better utilised.

• The matrix structure helps in improved communication, allowing for more timely problem identification and conflict resolution.

• Here the project team members has two ways to send a warning incase something goes wrong Through project manager Through functional manager

Thereby handling the problem from both the fronts

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Project organization structure• This organisation structure is used for companies where each

and every project is unique• At any given time there might be more than one project going

on in the organisation probably at different stages of completion.

• Employees working on a certain project are hired for a certain project only.

• Incase the employee has appropriate expertise, he/she may be reassigned for another project.

• In such organisations once a project gets over, the company hopes for contracts for new projects.

• There might be multiple projects going on at the same time in such an organisation.

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Project organization structure (contd)

• Each project in such organisations is treated like a minicompany.

• All the resources needed to accomplish each project are assigned to full time to work on that project.

• A full time project manager has complete project and administraive authority over the project team(this is not so in a functional organisation, where the functional manager retains the administrative and technical authority over the team)

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Differences between the two types of organizationMatrix Project

• Efficient utilization of resources

• Employees may be assigned to more than one project at a time

• The team members can be moved among projects as necessary to accommodate any project changes

• Control over resources• Employees are working only

on one project at a time, and if they are appropriately skilled, they can be reassigned on another project

• Team members are no reassigned to another project, irrespective of project changes unless the project they were actualy assigned for is over

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Differences between the two types of organization (Contd)Matrix Project

• Individuals are assigned multiple project at one time, depending on there skill

• High level of knowledge transfer, all the projects are linked

• The functional manager has highest authority

• It always helps in decreasing the cost for the company

• Individuals are assigned project one at a time

• Low level of knowledge tranfer among projects, as each project is treated individually

• The project manager has the highest authority

• It may sometimes increase the expenses and decrease profitability of the company

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Differences between the two types of organization (Contd)

Matrix Project

• There is no duplication of orders

• The chances of a skilled employee being laid off is low, as one project ends, he/she can be assigned to another, based on their skills

• There might be duplication of orders, like placing orders of raw materials, as each project works individually

• The chances of a skilled employee being laid off is high, because if there is no other project available on the same lines as his last project

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Conflicts in a project

Conflicts and projects always go hand-in-hand. It is inevitable

to have a project without any sort of conflict. Conflicts however are not always problematic they can sometimes help to consider alternative methods, developing better solutions to problems, enhance team building and learn.

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Project Conflict Inevitability• Project teams are populated with diverse team members –

perceptions differ• Today’s projects are complex and become well-equipped with

aggressive deadlines and budgets• It’s easy for email to precipitate unthinking responses – we

feel protected when not face-to-face• Miscommunication

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Positive and Negative Conflict

• Conflict is Positive when it - – Provides clarity to important issues or problems – Causes authentic communication – Builds cooperation and team cohesion – Provides individuals with understanding• Conflict is Negative when it - – Polarizes people or groups – Undermines morale – Leads to irresponsible behavior such as gossip – Deflects attention from more important tasks

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Conflicts in a project Conflicts pre-existing in an organization are one of the most

common source of conflict in a project. The following are the common sources of conflicts in a project.• Work scope• Resource assignments• Schedule• Cost• Priorities• Organizational issues• Personal differences• Time management

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Work scope

• The conflicts arising due to work scope could be on three different levels

how the work should be done how much work should be done or what should be the

rate at which the work should be done what should be the quality of the work

• For eg: In a order tracking system project, one team member might think to use the bar coding technology or keypad data entry stations.

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Resource Assignments

• Conflict can arise over the particular individuals assigned work on certain tasks

• The quantity of resources assigned to certain tasks• Lack of individuals to work on a certain project may cause

pressure.• When people start to feel the intensity of pressure, they also

start cramming and become less motivated to work on it.• Technical conflict and administrative procedures are part of

the list, too.• cost objectives and personality conflicts are another such

reason for conflicts.

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Schedule

The top-ranking source of conflict is schedules. Scheduling is probably one of the toughest obligations of most project managers. We might think that it is easy to establish a schedule for the many appointments, tasks, and other work, but it is actually the other way around.

• Conflicts can arise due to difference in opinion about the sequence in which the work should be done

• How long the work should take

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Cost

• It is important to do the budgeting of a project in such a way, so that the cost of carrying out the project is both profitable for the company and the customers.

• Cost acts not only as a conflict but also as a restraint, which has to be kept in mind by the project manager to make sure the project is successful.

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Priorities

• Priorities as a conflict arises when the same employee or a team member is assigned to more than one project at a time.

• The conflict also arises when people are using the same source of resources for various projects at the same time, specially when the sources available are limited.

• Priority poses as a conflict again when team members and the project head have different priorities, or in between the team members, or between the project head and organization head.

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Organizational issues• The organization structure acts as a source of conflict in lot of

situations.• Incase the organization has a centralized structure with a

strong hierarchical structure, then all the decisions are confirmed by the senior of the project head. The ultimate power hence is in the hands of the senior most in the organization, which may lead to major conflicts as the two people may have different priorities, ideas and so on

• Similarly the organization structure if decentralized then it may lead to too many individual decision making by different people who have the power to make a decision resulting in most cases a catastrophe of the project.

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Personal differences• Project managers who lack good interpersonal skills or people

skills are inefficient in dealing with the organization and issues within.

• Even if the organizational structure is solid and develops teamwork, individual differences can still trigger conflict.

• In project management, people problems can be classified into three main aspects which are individual and group interests, personality problems, and “problem people”.

• People have their personal motivations and interests even when working with a team. When these interests differ or do not arrive at a common ground, conflicts arise.

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Personal Differences…………… (Contd)

• Groups who have incompatible objectives for the organization cause conflict. Such incompatibility may be caused by differences in culture.

• Differences in personality is a common source of conflict. Individuals employ emotions especially in conflicts.

• The “problem people” are examples of those who have difficult personalities and their behavior may worsen a situation if not managed properly.

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Handling the project conflicts There is a 9 step approach to solving conflicts/problems which

arise during a project• Develop a problem statement: this step deals with defining

the problem, writing it down if possible, defining the boundaries of the problem.

• Identify the potential causes of the problem: once it has been accepted that there is a problem and the cause of the conflict has been identified, half the problem is already solved.

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• Gather data and verify the most likely causes: in the early stages of the problem solving process, the team is often reacting to symptoms rather than dealing with what might be causing the problem. Gathering data regarding the cause of the conflict helps to deal with the problem to a very large extent.

• Identify possible solutions: after the first three steps are taken, it is time to identify the possible solutions.

• Evaluate the alternate solutions: after the possible solutions have been considered, the next step involves checking the feasibility of each alternative solution.

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• Determine the best solution: this is done by determining the most cost effective and applicable for the problem in hand.

• Revise the project plan: this step involves incorporating the possible solution to the problem without putting it in action for real.

• Implement the solution: in this step project manager should implement the solution for real.

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• Determine whether the problem has been solved or not: the manager in this step evaluates the success of the implemented solution of the conflict.

The whole process of handling the conflicts which arise during a project involves a lot of compromising, confronting and accommodating the various possible alternatives available to the project manager.

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24th March 2011

•Franklin Equipment Ltd. •Headquarters at Saint John, Canada.•Founded on 75 years ago to fabricate custom-

designed large machinesfor construction business.•Deals in rock-crushing equipment for dam &

highway construction.

• In 1970, FEL began to market its product from the maritime provinces to the rest of canada.

•Also made concerted effort to market its products internationally.

•FEL signed a project called Abu Dhabi.•Charles Gatenby as project manager.•FEL wanted to open up market in this area for a long

time.

•As its an international contract, the project requires specialized design engineers , operational manager, cost-Accountant, HRM.

•Design Engineer – Bill Rankins Operational manager – Rob Perry Finance Manager – Elaine Bruder HRM – Sam Stonebreaker

•FEL also appoints Carl Jobe as full time internal consultant.

•Carl jobe work is to develop a team that works together for Abu Dhabi project.

• In order to make a perfect team, Carl Jobe interviewed team members in order to establish a team identity and a shared vision.

• 1st interviewer (Bruder) – She expressed skepticism about whether the project could succeed.• Next interviewer (Perry and Rankins) – both have

personal conflict. Both don’t want to work with each other.• Stonebreaker who is the next interviewer is positive

about the project and is also positive about that Perry and Rankins professionally work as a team members.• Finance manager want off from this project team.

•After interview, Jobe meets Charless and clear the whole picture in front of him.

•Charless admitted that there has been very bad blood between perry and Rankins, but added, “That’s why we hired you. Its your job to make sure that the history between those doesn’t interfere with Project Abu Dhabi’s success”

Q1 – Evaluate the criteria FEL uses to assign managers to project teams. What efficiencies do these criteria create? What are the resulting problems ?

FEL assigns managers to project team based on their expertise and their availability to work on a particular project given their other commitments, which means managers without heavy current project commitments will be assigned to a new project.

As all experts has been taken, therefore every team member is a specialist in their respective work which will increase the efficiency .

The resulting problem is although every team member is expert in their field but the personal conflict between design engineer and operational manager creating a problem for the fulfillment of the project.

Q2 – Why is it even more important that project team members work well together on their international projects such as Project Abu Dhabi?

Expand market internationally.Difficult in getting Prospective Customers as its a

Canadian firm.Competition.Coordination so as to achieve budgeted objective.

Q3 – Discuss the dilemma that jobe now faces?Personal conflict between two important team

members and both don’t want to work with each other.

Finance manager also want off from this project team. So, jobe is in dilemma how to establish a team identity and a shared vision.


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THANK YOU

24th March 2011

Project evaluation(2)

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