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!


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


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.


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.


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)".


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.


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).



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.


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.


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.


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.


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.


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.



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.


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.



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


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.


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.


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.



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.


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.


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.


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


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.


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


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.


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.



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.


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


Chapter 6: Reference

Organizational culture [online]. (1997) [Accessed 02 may 2010]. Available from:

<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>.

Project Management [online]. (2004) [Accessed 05 may 2010]. Available from:

<http://en.wikipedia.org/wiki/Project_management>.

Project Management [online]. (1996) [Accessed 05 may 2010]. Available from:

<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>.


<http://en.wikipedia.org/wiki/Project_management>.


<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.

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