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Transcript of project management assignement 2
Prasad Sandaruwan Fernando
(09/12/DIPM/116)
Submitted for – G. Sekar
Project Management Assignment
Project Management Assignment 2 Page 2
Acknowledgements
This project (Documentation) presents the maximum effort of me and I should thank and
express the gratitude among the following:
Lecturer : G. Sekar
IT Resource : Technical Staff
And special thanks should be given to
All My Friends and My Colleagues
AND
All the Staff Members of
London Business School
Thank You!
Project Management Assignment 2 Page 3
Table of Content
Chapter 01: Question 1 ……………………………………………………………………………………………………………5
Chapter 02: Question 2 ……………………………………………………………………………………………………………9
Chapter 03: Question 3 ………………………………………………………………………………………………………….15
Chapter 04: Question 4 ………………………………………………………………………………………………………….17
Chapter 05: Question 5………………………………………………………………………………………………………….26
Chapter 06: Reference ………………………………………………………………………………………………………….29
Project Management Assignment 2 Page 4
Introduction
Assignment Objectives
Understand what is Pay Back Period and other Cost Plan features
Understand what Organization Types are and why Matrix Organizations are popular
Identify the importance of Project Management Meetings
Explain the Leadership, Attitude, Motivation with example
Explain the importance of Structural and Cultural Implications in the context of project
management
This is the second assignment of the Diploma of project management. In this project the main
flow is formed of questions and answer basis. 5 main questions are asked in the project and sub
questions are included within the five main questions.
The main titles explained here are Pay back Period, Internal Rate of Return, Discount Cash Flow,
Functional Organizations, Matrix Organizations, the importance of Matrix Organization, Project
Management, Meetings in Project Management, Leadership Explanation, Skills, Attitude,
Motivation, Structural implications, Cultural implications, importance of those for the project
managers.
All the topics are explained in questions and answer form and each chapter is based on each
question.
Key Words – Project management, Management Skills, Organizations, Organization Structure,
Motivation.
Project Management Assignment 2 Page 5
Chapter 1: Question 1
The 1st Question of the Project is as follows;
1.0 Explain Pay Back Period, Internal Rate of Return, Discounted Cash Flow Techniques in
Strategic Investment Decisions.
1.1 Pay Back Period
Payback period in project management refers to the period of time required for the return on
an investment to "repay" the sum of the original project investment.
The pay back period (PP) is perhaps the simplest method of looking at one or more investment
project or ideas. The payback period method focuses on recovering the cost of investments. PP
represents the amount of time that it takes for a capital budgeting project to recover its initial
cost.
The term is also widely used in other types of investment areas, often with respect to energy
efficiency technologies, maintenance, upgrades, or other changes. For example, a compact
fluorescent light bulb may be described of having a payback period of a certain number of years
or operating hours, assuming certain costs. Here, the return to the investment consists of
reduced operating costs. Although primarily a financial term, the concept of a payback period is
occasionally extended to other uses, such as energy payback period (the period of time over
which the energy savings of a project equal the amount of energy expended since project
inception); these other terms may not be standardized or widely used.
Project Management Assignment 2 Page 6
Payback Period = (The Cost of Project/ Investment ) / Annual Cash Flows
The above equation is applied to find the Payback Period
Example of payback period calculation;
For example, take a project costing a total of $200,000. The expected returns of the project
amount to $40,000 annually. PP would be $200,000 / $40,000 = 5 years.
PP certainly has the virtue of being easy to compute and easy to understand. But that very
simplicity carries weakness with it. There are at least two major problems associated with the
payback period model:
PP ignores the benefit that occur after the payback period, and so does not measure the total
income.
PP ignores the time value of money.
pp ignores the risk, financing and some considerations such as opportunity cost.
1.2 Internal Rate of Return
The discount rate often used in capital budgeting that makes the net present value of all cash
flows from a particular project equal to zero. Generally speaking, the higher a project's internal
rate of return, the more desirable it is to undertake the project. As such, IRR can be used to
rank several prospective projects a firm is considering. Assuming all other factors are equal
among the various projects, the project with the highest IRR would probably be considered the
best and undertaken first.
IRR is sometimes referred to as "economic rate of return (ERR)".
Project Management Assignment 2 Page 7
Investopedia explains the IRR as follows
“You can think of IRR as the rate of growth a project is expected to generate. While the actual
rate of return that a given project ends up generating will often differ from its estimated IRR
rate, a project with a substantially higher IRR value than other available options would still
provide a much better chance of strong growth.
IRRs can also be compared against prevailing rates of return in the securities market. If a firm
can't find any projects with IRRs greater than the returns that can be generated in the financial
markets, it may simply choose to invest its retained earnings into the market.”(Investopedia)
The IRR of a project is the discount rate that will give it a net present value of zero.
The IRR is calculated by a trial and error process
Starting with a guess at the IRR, r, the process is as follows:
The NPV is calculated using discount rate r.
If the NPV is close to zero then r is the IRR.
1.3 Discounted Cash Flow Techniques in Strategic Investment Decisions
Discounted cash flow calculations have been used in some form since money was first lent at
interest in ancient times. As a method of asset valuation it has often been opposed to
accounting book value, which is based on the amount paid for the asset. Following the stock
market crash of 1929, discounted cash flow analysis gained popularity as a valuation method
for stocks. Irving Fisher in his 1930 book "The Theory of Interest" and John Burr Williams's 1938
text 'The Theory of Investment Value' first formally expressed the DCF method in modern
economic terms.
Project Management Assignment 2 Page 8
Discounted cash flow (DCF) analysis is a method of valuing a project, company, or asset using
the concepts of the time value of money. All future cash flows are estimated and discounted to
give their present values (PVs) – the sum of all future cash flows, both incoming and outgoing, is
the net present value (NPV), which is taken as the value or price of the cash flows in question.
Using DCF analysis to compute the NPV takes as input cash flows and a discount rate and gives
as output a price; the opposite process – taking cash flows and a price and inferring a discount
rate, is called the yield.
This valuation method used to estimate the attractiveness of an investment opportunity.
Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them
(most often using the weighted average cost of capital) to arrive at a present value, which is
used to evaluate the potential for investment. If the value arrived at through DCF analysis is
higher than the current cost of the investment, the opportunity may be a good one.
Net present value
The difference between the present value of cash inflows and the present value of cash
outflows. NPV is used in capital budgeting to analyze the profitability of an investment or
project. NPV analysis is sensitive to the reliability of future cash inflows that an investment or
project will yield.
The net present value is calculated as follows;
Calculation of expected free cash flows that result out of investment
Subtract/discount for the cost of capital (an interest rate to adjust for the time and risk)
The intermediate result is called present value
Subtract the initial investments and the end result is called Net Present Value (NPV).
Project Management Assignment 2 Page 9
Chapter 2: Question 2
This is the second question of the assignment.
2.0 What is Functional Organization?, What is Matrix Organization?, Why Matrix Organizations
are popular in Project Management?
2.1 What is a Functional Organization?
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
The entire organizational activities are divided into specific functions such as operations,
finance, marketing and personal relations.
Complex form of administrative organization compared to the other two.
Three authorities exist- Line, staff and function.
Project Management Assignment 2 Page 10
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.
Principle of unity of command does not apply to such organization as it is present in line
organization.
Merits of Functional Organization
Specialization- Better division of labor takes place which results in specialization of
function and its consequent benefit.
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.
Efficiency- Greater efficiency is achieved because of every function performing a limited
number of functions.
Economy- Specialization compiled with standardization facilitates maximum production
and economical costs.
Expansion- Expert knowledge of functional manager facilitates better control and
supervision.
Demerits of Functional Organization
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.
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.
Difficulty in fixing responsibility- Because of multiple authorities, it is difficult to fix
responsibility.
Conflicts- There may be conflicts among the supervisory staff of equal ranks. They may
not agree on certain issues.
Costly- Maintenance of specialist’s staff of the highest order is expensive for a concern.
Project Management Assignment 2 Page 11
2.2 What is Matrix Organization? Why Matrix Organizations are popular?
And so it was, in the 1970s, that efforts to better conventional, or functional, organizational
structures, led to the introduction of the “Matrix” organizational system.
In the matrix organization structure, considering our IT instance above, all programmers are
now in a distinct programming department. They report to a functional manager in charge of
programming. The manager of that department is completely in charge their jobs. In a matrix,
we normally relate to the line manager as a functional manager because all of their workers
execute related functions.
Workers in a matrix organization structure are compartmentalized by the skills required of
them into silos, like columns in a matrix, each with its committed manager. The workers report
to and are accountable to their functional manager, who in return normally has lone obligation
for the progress of their workers and also the management of their region, including budgeting.
So far, the matrix organization structure sounds quite a bit like the functional organization
structure, with the exception that all workers within a silo (a column in the matrix) are divided
by a specific skill-set. The next difference between functional organizations and matrix
organizations is that matrices have rows (lines running across the columns).
Traditional organizations operated rather easily, but were ineffective, with duplication of skills
and distinct, but redundant, processes around the organization. But their chief failing was when
they tried to handle projects.
The trouble was that with functional organizations, cross functional projects did not exist,
because the project manager’s “team” team made up of individuals from various functional
areas, managed and controlled by various functional managers — not by the project manager.
Now imagine these rows each having a project manager as its “chief” of each group of workers.
The rows intersect the columns and then intersect the columns of workers. So each row is a silo
of workers with different functions with a project manager in charge.
Project Management Assignment 2 Page 12
In such a matrix system there is an apparent stress between the project managers at the top of
each row (each plan) and the managers at the head of each column (each functioning region) as
they are sharing the same workers, and as each manager (project and functional) has a work to
do, we get a dispute of stake.
There are distinct types of matrix system, designed to balance the ability struggle-struggle
between the managers conflicting needs. The principal types are these matrix organizations is
listed below.
Weak Matrix
This type of matrix organization structure is nightmarish for Project Managers. In the weak
matrix organizational structure, project managers are effectively reduced to being project
facilitators. They draw plans and supervise the execution, but they have no genuine control
over personnel, and are nearly completely reliant upon the functional managers to offer
resources.
The workers have less allegiance to the project managers (or the plan), because it is the
functional managers who determine the progress of the workers. And the workers’ progress is
normally measured solely on the work that is done for their functional manager — not on their
project work — thus it is a fact that working on a project may be seen by the worker as not
desirable as they will have less time in doing their functional work, so the project manager may
see them as unmotivated.
And as the PM has no genuine control over the project members, so they frequently have to
report the problem of workers not doing their duties, to the functional managers in anticipation
that they will motivate to the workers to perform more on the project.
But recall that the functional managers are primarily accountable for the operation of their own
areas, so their workers performing plan tasks can really cut the productivity of their region
(frequently projects are ignored in the benchmarks. So this leads to a clear-cut dispute of stake
between the PM, the functional managers and the respective workers.
Project Management Assignment 2 Page 13
Strong Matrix
All these problems led to the introduction of the “strong matrix” organization structure
In the strong matrix organizational structure, the tables are reversed from the weak matrix
organization structure. The intent is that project managers that are responsible for the workers,
rather than the line managers. But the project managers are not accountable for the human
resource management.
This gives project managers the power to handle the workers directly, and therefore
adequately handling the entire project, but without involving the project managers upward in
HR administration.
So, when a manager for a project starts a new one, they discuss their staffing demand with the
functional managers and the functional managers seek to have the resources accessible (and
offer education for them, where needed). Normally, the functional managers will sketch out
plans and charts (e. g. Gantt charts) of how “their folk” will be included inside projects, and they
might move personnel between projects and project managers as required (after making
inquiries with the project managers.
Effectively the PM and the project managers work jointly, but the whole command of
everything project-related is the role of the plan manager– then in a powerful matrix, the plan
manager is the stronger company.
Balanced Matrix
There needs to be some manner to bring each into equilibrium, otherwise one group will rule
the other, to the disadvantage of the project, and finally to the detriment of the organization all
together (although private projects or functional areas may bloom for sometime). A really
dominant project manager, for instance, might bully functional managers into always giving
them the best team members for their projects.
Project Management Assignment 2 Page 14
One way to reduce these difficulties is to have rules within the organization that varies who can
handle a worker, depending upon sure circumstances. For instance, there could be a regulation
that says if a worker is to work on a project for less than one week the functional manager (or
project manager) has lone command over the worker, but if the demand is for longer than one
week, command changes hand. Or there may be rules that the same worker cannot work for
same project manager, on two back-to-back projects.
There are many potential rules that could be made, but the goal is to equalize the power
between the project managers and the functional managers so as not to have a win/lose
position. This is why this matrix organization structure is referred to as a “balanced matrix”.
So whether the organizational structure is feeble, powerful, or stable, the “power” is always
from the standpoint of the project manager.
Advantages
Because key people can be shared, the project cost is minimized
Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
There is a better balance between time, cost and performance
Authority and responsibility are shared
Stress is distributed among the team
Disadvantages
A conflict of loyalty between line managers and project managers over the allocation of
resources
If teams have a lot of independence can be difficult to monitor.
Costs can be increased if more managers (i.e. project managers) are created through the
use of project teams.
Project Management Assignment 2 Page 15
Chapter 3: Question 3
This is the third question of the assignment
3.0 Explain the importance of meetings in Project Management, Explain how the project
manager can run effective meetings in project management.
Project meeting an exchange of ideas between two or more people about the project matters.
As the project manager, holding the project meetings is very essential.
There are two main reasons for a project meeting to be conducted.
Information sharing
Problem solving
There are many rules and theories which people have introduced for the project is to be
successful. Most of them are good practices for the project to be successful. Now let’s
look at some of them.
Meeting with the correct people - Ensure you have the right people there. May seem
obvious but how many meetings go ahead with the wrong people there and the right
people "on the way" or a key stakeholder not even invited?
Set an agenda - Meetings without an agenda drift, take longer than they need to and
don't get results. Produce and circulate the agenda in advance, at least 1 or 2 days
before the meeting, not 30 minutes before the scheduled start time. Give indicative
timings for each item and allow for slippage.
Project Management Assignment 2 Page 16
Clear Objective - Have a clear objective. Is it to receive a highlight report, or to prepare
a highlight report? Is it to review project progress based on milestones, or develop part
of your plan, or all of these?
Keep Meeting Papers Short - Receiving a mountain of papers, filled with page after page
of detail is the biggest de-motivator, not to mention a waste of resources for someone
attending a project meeting. Try to keep each paper to a maximum of one page.
Consider giving people a template to use that might include a simple traffic light system
to indicate where things are going well (green), there are some issues (amber) and
major issues (red).
Summarize points - Summarize before moving on to the next point. This ensures
everyone is clear about what has been agreed or said.
Physical Environment is Comfortable - Effective meetings can only take place if the
people attending are comfortable.
Start and Finish on time - Make sure that it is clear to everyone that you will be starting
and finishing on time. Encourage them to leave 30 minutes either side of the meeting
free to ensure they can get there on time and that if something major arises it can be
dealt with.
By following above practices we can make the project meetings very useful.
3.1 Importance of Project meetings
As stated above there are 2 main reasons for meetings to be held. They are information sharing
and problem solving. In a project constant communication is very essential. After the project is
started the project manager should always talk to the project members about the project
progress and the problems arise. Project meeting is the best way to discuss them with the
project members. By a project meeting not only solve problems and information share,
additionally, the project members get a chance to express their ideas and difficulties to the
team, by that way more innovative ideas can be put out. In short the key to the success of the
project is conducting effective project meetings.
Project Management Assignment 2 Page 17
Chapter 4: Question 4
This is the fourth question of the project
4.0 Explain the term Leadership, Skills, Attitude, Motivation with a suitable Example
4.1 Leadership and Example
Why do we consider Project Managers as Leaders? Why isn’t management enough?
One skill that has always been overshadowed by our emphasis on management is Leadership.
We all say we practice both and some of us even say that we are good at both. But are we really
as good as we may think? Let's compare the two and find out while we evaluate ourselves in
the process.
Leadership vs. Management
What are the primary objectives of Management and Leadership? Simply put, Management is
charged with Producing and maintaining a degree of Predictability & Order. Leadership on the
other hand is charged with Producing Change. Let's examine what's necessary to accomplish
these objectives.
A summary of Project Management and Leadership responsibilities can be condensed into what
I call the four processes of Management and Leadership. They are:
Creating an Agenda
Developing a Team
Execution of the Agenda
Evaluation of the Outcome
Project Management Assignment 2 Page 18
First of all, we will address each process by determining the individual responsibilities of
Management and Leadership for each.
1) Creating an Agenda
Management Responsibilities: Planning & Budgeting.
These responsibilities involve establishing detailed steps and timetables for achieving needed
results and then allocating the resources necessary to make that happen.
Management Functions and Activities
The primary function here is to help produce predicable results on important dimensions (e.g.
being on time and within budget) by planning for those results. Activities involve a deductive
process. A detailed map of how to achieve the results expected is developed by stakeholders
(clients, users, customers) along with timetables consisting of what, when , who and the costs
involved.
Leadership Responsibilities: Establishing Direction
Main responsibility here is to develop a vision of the future and strategies for producing the
change needed to achieve that vision.
Leadership Functions and Activities
At this point our objective is to establish the direction for change needed to cope with the
changing business environment. This is an inductive process. The objective of the activities
involved here is to develop a vision which describes key aspects of an organization in the future
along with a strategy for achieving that future state.
Project Management Assignment 2 Page 19
2) Developing a Team
Management Responsibilities: Organizing & Staffing
Here we are establishing some structure for:
Accomplishing our plan
Staffing the project
Responsibility/authority
Policies/procedures
Monitoring the process.
Management Functions and Activities
Main focus here is to create an organization that can implement the plan and thus can produce
predictable results on important dimensions. The activities are directed toward developing a
process of organizational design involving judgment about “fit”. We want to determine the best
compatibility option for matching:
organizational/staffing structure to our plan
parts of our plan to individual team members
compensation to our plan and the people involved
Project tasks to individual skill sets.
Leadership Responsibilities: Aligning People
Leaders are communicating the project direction by words and deeds. It is necessary to
influence the team-building process of the project. The goal here is to ensure the teams'
understanding and acceptance of the project direction, vision and strategies.
Project Management Assignment 2 Page 20
Leadership Functions and Activities
The function here is to get people lined up behind a vision and set of strategies. This will help to
produce the change needed to address a changing business environment. In as clear and
credible way as possible, it is necessary to get people to understand and believe the
vision/strategies by communicating with the individuals needed to make that project direction
a reality.
3) Execution of the Agenda
Management Responsibilities: Controlling & Problem-Solving
Under this heading the main goal is monitoring results vs. our plan in some detail, identifying
deviations and then planning & organizing to solve any problems.
Management Functions and Activities
Main function here is to minimize deviation from the plan and thus produce predictable results
on important decisions.
Activities here are concerned with monitoring results vs. the plan. This is done in some detail by
means of control mechanisms (reports, meetings). Using these we identify deviations from the
plan and then re-plan and organize to resolve those deviations.
Leadership Responsibilities: Motivating & Inspiring
The accountability here is to energize people to overcome major political, bureaucratic and
resource barriers to change. This is done by satisfying very basic but unfulfilled human needs.
Leadership Functions and Activities
The function here is to energize people to overcome major obstacles toward achieving a vision.
Success here will help produce the awareness and any attitude adjustments needed to cope
with environmental changes.
Project Management Assignment 2 Page 21
To accomplish this we need to satisfy very basic human needs. These involve the need for
achievement, recognition and living up to one's ideals. The goal here is to create an unusually
high level of energy and enthusiasm in people.
4.2 Skills
For a Project Manager to be successful a collection of skills is very essential. Now let us look at
some of the major skills which are necessary.
Creating a Work Breakdown Structure (WBS)
The successful implementation of any Six Sigma project depends on the ability of Six Sigma
professionals such as black belts to break down a large project into smaller manageable sub-
projects. This breaking down of mammoth projects into several smaller projects is technically
referred to as work-breakdown structure (WBS)
Estimating Project Costs
Many techniques, books and software packages exist to help with estimating project costs. A
few basic rules will also help ensure that an accurate and realistic estimate is produced.
How to Create a Gantt chart Using Microsoft Excel
Since the initial introduction of Gantt charts, they have become an industry standard as a key
project management tool for showing the phases, tasks and activities that are scheduled as part
of a project over time. This video presentation shows a step by step guide to creating a Gantt
chart using Microsoft Excel
Project Management Tools
A Gantt chart, Logic Network, PERT chart and Work Breakdown Structure are common tools
used when planning a project.
Project Planning A Step by Step Guide
The key to a successful project is in the planning. Creating a project plan is the first thing you
should do when undertaking any kind of project. Often project planning is ignored in favour of
Project Management Assignment 2 Page 22
getting on with the work. However, many people fail to realize the value of a project plan in
saving time, money and many problems
Progress Reporting
Progress reporting is a key element of project management. Reports should be issued by the
Project Manager and circulated to all stakeholders on a regular basis.
SWOT Analysis
SWOT is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities,
and threats to a project. It involves specifying the objective of the project and identifying the
internal and external factors that are favorable and unfavorable to achieving that objective.
Using Feedback as a Tool
As a project manager it is important to be able to give and receive feedback effectively.
Feedback is best given on a one to one basis soon after the event that triggers its need.
PEST Analysis
PEST is a strategic planning tool used to evaluate the impact political, economic, social, and
technological factors might have on a project. It involves an organization considering the
external environment before starting a project.
Pareto Analysis Step by Step
The Pareto principle is the idea that by doing 20% of the work you can generate 80% of the
benefit of doing the whole job. Or in terms of quality improvement, a large majority of
problems are produced by a few key causes. Pareto Analysis enables you to see what 20% of
cases are causing 80% of the problems and where efforts should be focused to achieve the
greatest improvement.
MoSCoW Method
When managing a project it is important to establish a clear understanding of the customers'
requirements and their priority. Many projects start with the barest headline list of
requirements, only to find later that the customers' needs have not been properly understood.
This is where the MoSCoW prioritization method can help.
Project Management Assignment 2 Page 23
RACI Matrix
The RACI model is a straightforward tool used for identifying roles and responsibilities and
avoiding confusion over those roles and responsibilities during a project. The acronym RACI
stands for - responsible, accountable, consulted and informed.
4.3 Attitude and Motivation
Attitude is one of the most important facts for the success of the project. The right projection
of the attitude makes the path of the accomplishing the project clear.
Below are the main behaviors of project manager that should have towards the project
Have a "must" resolve: a person does not have to, when even small stones can be
blocking his way, only the "must" person, and then shaded by a large obstacle to the
result he wanted.
Should have a strong ambition: to become the industry to the world's top goal. As long
as can find a reason for the success, you will be able to succeed!
Believe: Successful first, I believe, after seeing the target makes policy decisions, as long
as the spirit does not slide, and methods than problems
To do things: successful willing to do the general people are unwilling to do, successful
people are willing to do did not dare to do, successful people do not do things
To treat the problem: You have to understand to solve the problem, an attitude rather
than skills, so you have to believe you can solve all problems
Their potential: the human potential is unlimited, you never know where the limits of
your potential? Kept telling myself: I love myself, I was the best
Do not make excuses: to find successful methods, losers make excuses; to be successful
does not have an excuse to excuse would be difficult to success; when you have no
excuse for the moment that is, you choose a successful start.
Learning Experience: successful learn from the experience of others, most people learn
from their experience.
Never give up: winners never give up, abandon those who never succeed
Project Management Assignment 2 Page 24
Motivating team members is just one of the roles of a project manager. A team with good
motivation will lead to increased productivity and quality. Keeping people motivated is also a
factor that might help them stick around rather than leaving the company for a new job.
Motivation is one of those things that may difference a project's failure or success.
Make people communicate with each other to build an open culture
Every person has ideas and opinions that they want to share. Set up sessions where people can
share their ideas and opinions. Members will then see what kind of skill sets other members
have. It also makes people connect to each other. This builds a culture where people accept
others skill sets, opinions and capabilities.
It is also important to implement some of the ideas that come up. This keeps members happy
and shows them that ideas are appreciated and supported.
Trust the skills of your team members
Face the fact that each member has their field of expertise. Use them as advisors when you
have to take decisions. By letting team members take part in such decisions they will feel that
their knowledge and expertise is appreciated from management.
Senior team members with a lot of experience are often attracted by this. People with a lot of
experience often gives quality advises as well.
Give them feedback
Identify examples that a team member did very good and praise them for that. Tell them that
he or she did a good job. Do not criticize people in open forums, making members feel awful in
front the rest of the team is not appreciated by the rest of the team. If you need to criticize
someone do it in your office.
By giving people feedback they will constantly try to improve their work. If a person fails try to
make them reflect on why they failed and give the advice on how they can improve in the
future.
Project Management Assignment 2 Page 25
Give team members training and education
Often projects, especially IT projects involve work in a domain where the project team is lacking
knowledge. One way to acquire the knowledge needed is to send team members off to training.
This motivates the members as well as improving the odds of project success.
A member can never get enough training and education there is always areas where they can
learn. It is important to discuss this with your team member. Questions like "What do you want
to learn more about?", "Is there any courses that you want to take that can contribute to this
project?" can be a start.
Act as a mentor rather than a micro manager
Allow members to research problems and let them take decisions. Try to facilitate them and
lead them on the way rather than telling them exactly what to do. By giving away some of your
power as a project manager to the team members they will act a more on their own. This gives
them confidence, another effect is that it improves the personal skills like decision making etc.
Project Management Assignment 2 Page 26
Chapter 5: Question 5
This is the fifth Question of the project
5.0 Explain the Importance of Structural and Cultural Implications for the Project managers in
the context of Project management.
The set organizational structure may not coincide with facts, evolving in operational action.
Such divergence decreases performance, when growing. E.g. a wrong organizational structure
may hamper cooperation and thus hinder the completion of orders in due time and within
limits of resources and budgets. Organizational structures shall be adaptive to process
requirements, aiming to optimize the ratio of effort and input to output.
There are many organizational structures which are available in different organizations.
Pre-bureaucratic structures
Bureaucratic structures
Post-bureaucratic
Functional structure
Divisional structure
Matrix structure
The project manager should understand the organization structure before starting the project.
By understanding the structure of the organization it is very easy to motivate individual.
Cultural implications have the same issue and by knowing the cultural implication of the project
members it is easy to understand and motivate the individual. And also to express ideas and to
deal with the each member of the team it is essential for the project manager to know the
culture of the project members, it is mainly because the working style, working hours, even the
way the people talk depends on the culture or the background of the team member.
Project Management Assignment 2 Page 27
There are many cultures which are introduced for the purpose of understanding and motivating
individuals. Charles handy introduced cultures for the society by the names of Greek gods. They
are Apollo, Zeus, Athena and Dionysus.
If we described it briefly,
A Power Culture which concentrates power among a few. Control radiates from the
center like a web. Power Cultures have few rules and little bureaucracy; swift decisions
can ensue.
In a Role Culture, people have clearly delegated authorities within a highly defined
structure. Typically, these organizations form hierarchical bureaucracies. Power derives
from a person's position and little scope exists for expert power.
By contrast, in a Task Culture, teams are formed to solve particular problems. Power
derives from expertise as long as a team requires expertise. These cultures often feature
the multiple reporting lines of a matrix structure.
A Person Culture exists where all individuals believe themselves superior to the
organization. Survival can become difficult for such organizations, since the concept of
an organization suggests that a group of like-minded individuals pursue the project
goals. Some professional partnerships can operate as person cultures, because each
partner brings a particular expertise and clientele to the firm.
Deal and Kennedy explained another set of cultures.
The Tough-Guy Macho Culture. Feedback is quick and the rewards are high. This often
applies to fast moving projects
The Work Hard/Play Hard Culture is characterized by few risks being taken, all with rapid
feedback
The Bet your Company Culture, where big stakes decisions are taken, but it may be
years before the results are known
The Process Culture occurs in organizations where there is little or no feedback. People
become bogged down with how things are done not with what is to be achieved
Project Management Assignment 2 Page 28
Chapter 6: Reference
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<http://www.soi.org/reading/change/culture.shtml>.
Organizational culture [online]. (1997) [Accessed 02 may 2010]. Available from:
<http://managementhelp.org/org_thry/culture/culture.htm>.
Trategic Leadership [online]. (1998) [Accessed 03 may 2010]. Available from:
<http://www.au.af.mil/au/awc/awcgate/ndu/strat-ldr-dm/pt4ch16.html>.
Project culture [online]. (2002) [Accessed 03 may 2010]. Available from:
<http://www.toolpack.com/culture.html>.
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<http://en.wikipedia.org/wiki/Project_management>.
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<http://managementhelp.org/plan_dec/project/project.htm>.
Project Management Skills [online]. (2005) [Accessed 06 may 2010]. Available from:
<http://www.projectsmart.co.uk/methods-tools.html>.
Project Management Skills [online]. (2005) [Accessed 06 may 2010]. Available from:
<http://en.wikipedia.org/wiki/Project_management>.
Project Management Skills [online]. (2008) [Accessed 06 may 2010]. Available from:
<http://projectmanagementskills.com/>
Project Management Techniques [online]. (2007) [Accessed 06 may 2010]. Available from:
<http://management.about.com/cs/projectmanagement/a/PM101.htm>.
Project Management Techniques [online]. (2002) [Accessed 06 may 2010]. Available from:
<http://www.mindtools.com/pages/main/newMN_PPM.htm>.
Project Management Techniques for Success [online]. (2002) [Accessed 06 may 2010]. Available from:
<http://www.learningtree.com/courses/296.htm>.
NOTE: Harvard Reference Technique is used.