Modern Project Management Practices-B.

Voc Semester 4

Manoj Krishnan
 Module 2
• Organisational Structure and Organisational Issues
• Concept of Organisational Structure
• Roles and Responsibilities of a Project Manager
• Leadership
• Conflict Resolution
• Resources consideration in Projects: Introduction-
Resource Allocation-scheduling-Project Cost
estimating
 Organizational Structure in Project Management

Organizational structure refers to the hierarchical framework

that defines how tasks, responsibilities, decision-making
processes and authority are distributed within an organization.
In the context of project management, the organizational
structure plays a critical role in determining how projects are
executed, managed and integrated with the organization’s
overall operations.
 Types of Organizational Structures in P M
Functional Structure
Departments are organized based on specific functions (e.g., marketing,
engineering, HR).
Project teams are usually formed within a single department, and the
functional manager retains most authority.
Advantages: Clear lines of authority, deep expertise within functions.
Disadvantages: Lack of cross-departmental collaboration, slower decision-
making for projects.

Projectized Structure
The organization is organized around projects, with project managers having
full authority over resources and decision-making.
Team members are dedicated to the project for its duration.
Advantages: Clear project focus, faster decision-making.
Disadvantages: Duplication of resources, potential lack of long-term job
security for team members.
Matrix Structure
A hybrid of functional and projectized structures. Resources report to both
functional and project managers.
Can be weak matrix (functional manager dominance), balanced matrix
(shared authority), or strong matrix (project manager dominance).
Advantages: Efficient resource utilization, improved cross-functional
collaboration.
Disadvantages: Potential conflicts due to dual reporting, complex
communication.

Flat or Agile Structure

A more flexible and team-oriented approach, often used in Agile project
management.
Minimal hierarchy and greater emphasis on team collaboration.
Advantages: Fast decision-making, adaptability.
Disadvantages: Ambiguity in roles, potential inefficiencies in large
organizations.
 Organizational Issues in Project Management

Organizational issues arise when the structure, culture,

processes or other factors impede the successful delivery of a
project. These issues can be internal or external and may vary
depending on the organization's maturity, industry and the
specific project.
 Common Organizational Issues
Lack of Clear Roles and Responsibilities

Ambiguity in role definitions can lead to overlapping duties or missed tasks.

Insufficient Resources

Scarcity of skilled personnel, time or budget can derail projects.

Poor Communication

Miscommunication between team members, departments or stakeholders often leads to

misunderstandings, delays and conflicts.

Resistance to Change

Employees or stakeholders may resist adopting new processes, tools, or structures introduced by the
project.
Inadequate Leadership

Ineffective project sponsorship or leadership can result in a lack of direction, motivation, or support for
the project team.

Misalignment with Organizational Goals

Projects that do not align with the strategic objectives of the organization may lack necessary backing or
resources.

Cultural Barriers

Differences in organizational or team cultures, especially in multinational or cross-functional projects,

can lead to misunderstandings and conflicts.

Ineffective Stakeholder Engagement

Not involving key stakeholders at the right time can lead to a lack of buy-in or misaligned expectations.
Inflexible Organizational Policies

Rigid processes, bureaucratic hurdles or lack of adaptability can slow down project execution.

Conflict of Priorities

In a multi-project environment, competition for resources and attention can create conflicts
between project teams.
 Addressing Organizational Issues
Define Clear Roles and Responsibilities

Use tools like RACI (Responsible, Accountable, Consulted, Informed) charts to clarify roles.

Enhance Communication

Establish clear communication plans, regular updates and feedback loops.

Provide Adequate Training and Resources

Upskill team members and ensure availability of necessary tools and personnel.

Align Projects with Organizational Strategy

Prioritize projects that directly support strategic goals and ensure alignment at all
levels.
Adopt Change Management Practices

Use change management frameworks (like ADKAR) to address resistance and ensure smooth
transitions.

Foster a Supportive Culture

Promote collaboration, respect for diversity and open dialogue.

By understanding and proactively addressing organizational structure and issues, project

managers can enhance the likelihood of project success and organizational efficiency.
 Concept of Organizational Structure in P M
The concept of organizational structure in project management refers
to the framework through which an organization is arranged to
support the execution and management of its projects. This structure
defines the relationships between individuals, roles, departments, and
the overall hierarchy, determining how resources, responsibilities, and
decision-making authority are allocated.
The choice of organizational structure significantly affects how projects
are planned, executed and controlled. It influences communication
flow, team collaboration, resource allocation and the authority of the
Project Manager.
 Key Features of Organizational Structure in Project Management

Authority Distribution
Determines who has decision-making power, including the project manager's authority relative to
functional managers.

Resource Allocation
Defines how resources (human, financial, technical) are distributed across projects and departments.

Communication Flow
Specifies the pathways through which information travels within the organization.

Accountability
Establishes who is accountable for the success or failure of the project.

Flexibility and Adaptability

Influences how quickly the organization can adapt to project needs and external changes.
 Roles and Responsibilities of a Project Manager

The Project Manager is a key figure in project

management, responsible for leading the project team
and ensuring the successful delivery of the project
within scope, time, budget, and quality constraints
 Core Roles of a Project Manager
Leadership and Team Management

Motivate, guide, and lead the project team.

Resolve conflicts and foster a collaborative team environment.

Planning and Scheduling

Develop project plans, schedules, and work breakdown structures.

Define project scope, objectives, and deliverables.

Resource Management

Identify and allocate resources (human, financial, material) effectively.

Ensure optimal utilization of resources.

Communication

Serve as the primary communication link between stakeholders and the project team.
Ensure timely and transparent communication of project progress, risks, and changes.
Risk Management

Identify potential risks, assess their impact, and develop mitigation strategies.
Monitor risks throughout the project lifecycle.

Budget and Cost Control

Prepare and manage the project budget.

Ensure the project is executed within financial constraints.

Quality Assurance

Establish quality standards and ensure deliverables meet those standards.

Conduct regular quality reviews and implement corrective actions as needed.
Stakeholder Management

Engage stakeholders to align expectations and gain their support.

Manage stakeholder concerns and ensure satisfaction with project outcomes.

Problem-Solving and Decision-Making

Address issues promptly and make decisions to keep the project on track.
Use data and feedback to make informed decisions.

Compliance and Documentation

Ensure the project complies with organizational policies, legal requirements, and industry standards.
Maintain detailed documentation for transparency and future reference.
Key Traits and Skills of an Effective Project Manager
Leadership: Inspires and guides the team to achieve project goals.
Communication: Facilitates clear and effective communication among all stakeholders.
Organization: Manages multiple tasks, deadlines and resources efficiently.
Problem-Solving: Quickly identifies and addresses challenges.
Adaptability: Adjusts to changing project demands and circumstances.
Technical Knowledge: Understands the technical aspects of the project.
Negotiation: Resolves conflicts and gains stakeholder buy-in.

In essence, the project manager is the linchpin of project success, bridging the gap
between strategic objectives and operational execution while navigating the
complexities of organizational structures
 Leadership in Project Management

Leadership is the ability of the Project Manager to

inspire, guide and influence the project team and
stakeholders to achieve the project's objectives.
Effective leadership is crucial for navigating the
complexities of a project, fostering collaboration, and
ensuring that team members stay motivated and
focused.
 Key Aspects of Leadership in Project Management
Vision and Goal Setting
Clearly articulate the project’s goals and how they align with the organization’s objectives.
Inspire team members by providing a sense of purpose and direction.

Communication Skills
Ensure open and transparent communication among all stakeholders.
Use active listening, feedback and empathy to build trust and understanding.

Decision-Making
Make timely, informed decisions to keep the project on track.
Involve team members in decisions to foster ownership and accountability.

Motivation and Team Building

Recognize and reward team achievements to maintain morale.
Create an inclusive environment where every team member feels valued.
Adaptability
Adjust leadership style based on the team’s needs, project phase, and challenges.

Conflict Management
Address conflicts constructively to maintain a positive team dynamic.
Foster a culture where differences are resolved collaboratively.

Empowerment
Delegate tasks effectively, giving team members autonomy while ensuring accountability.
Encourage innovation and independent problem-solving.

Integrity and Ethics

Lead by example, demonstrating honesty, fairness, and respect.
Build credibility through consistent and ethical behaviour.
 Conflict Resolution in Project Management
Conflict resolution in project management involves
identifying and addressing disagreements or disputes
among project stakeholders, team members or external
parties to ensure the project's progress is not
disrupted. Conflict is a natural part of project
management due to differing priorities, perspectives
and limited resources.
 Common Causes of Conflict in Project Management
Resource Allocation: Competing demands for limited resources
(time, personnel, budget).
Role Ambiguity: Unclear roles and responsibilities leading to
misunderstandings.
Communication Issues: Poor or incomplete communication
causing confusion.
Differing Priorities: Misalignment of project goals among
stakeholders or team members.
Cultural Differences: Diverging values, work styles, or
organizational cultures.
Performance Issues: Differences in work quality or commitment
levels.
 Conflict Resolution Techniques
Collaborating (Win-Win):

Both parties work together to find a mutually beneficial solution.

Promotes teamwork and long-term resolution.

Compromising (Win-Some, Lose-Some):

Each party gives up something to reach a middle ground.

Useful for time-sensitive conflicts but may not satisfy everyone fully.

Avoiding (No-Win):

Deliberately sidestep the conflict, often temporarily.

Appropriate for minor issues or when emotions need to cool down.
Accommodating (Lose-Win):

One party yields to the other's demands to maintain harmony.

Suitable for preserving relationships but may lead to resentment if overused.

Forcing (Win-Lose):

One party imposes a solution, often through authority or power.

Effective in urgent situations but can damage relationships.

Mediating:

A neutral third party facilitates a resolution.

Encourages constructive dialogue and impartial solutions.
 Steps for Effective Conflict Resolution:
Identify the Root Cause:
Understand the underlying issues, not just the symptoms.

Create a Safe Environment:

Foster open, respectful communication without fear of
retaliation.

Listen Actively:
Hear all perspectives and acknowledge emotions and concerns.

Focus on Interests, Not Positions:

Seek to understand the goals and needs of each party.
Brainstorm Solutions:
Encourage collaborative problem-solving to generate multiple options.

Agree on a Resolution:
Select and implement a solution that satisfies the parties involved.

Monitor and Follow Up:

Ensure the resolution is effective and maintain open communication.
 The Intersection of Leadership and Conflict Resolution

Effective project leaders play a pivotal role in managing

and resolving conflicts. By fostering a culture of trust,
open communication and collaboration, leaders can
minimize the occurrence of conflicts and ensure they
are addressed constructively when they arise. Strong
leadership combined with proactive conflict resolution
helps maintain team cohesion, ensures stakeholder
satisfaction, and supports project success.
 Resource Considerations in Projects
Resources are critical components required to execute
a project successfully. Resource considerations in
projects involve planning, allocating, managing, and
optimizing the resources needed to achieve project
objectives within the constraints of scope, time, and
budget.
 Types of Resources in Projects

Human Resources
Team members, subject matter experts, stakeholders, and external consultants.
Roles include project manager, developers, designers, testers, etc.

Financial Resources
Project budget, funding, and costs.
Includes operational expenses, salaries, equipment costs, and contingency funds.

Material Resources
Physical items required, such as equipment, tools, raw materials, and supplies.
Technological Resources
Software, hardware and other technical tools necessary for project
execution.

Time
The time available for completing tasks, milestones and the entire
project.

Information and Knowledge

Data, research, best practices and expertise necessary to support
decision-making.
 Key Resource Considerations in Projects
1. Resource Planning
Identifying the resources needed for each task in the project scope.
Tools: Resource Breakdown Structure (RBS), Work Breakdown Structure (WBS), and
resource allocation charts.

2. Resource Availability
Determining if resources are available when needed.
Consider potential resource constraints like limited skilled personnel, unavailable
materials, or restricted budgets.

3. Resource Allocation
Assigning resources to tasks in a way that ensures optimal utilization.
Requires balancing workloads, avoiding over-allocation, and managing dependencies.
4. Budget Management
Estimating the cost of resources and ensuring alignment with the project budget.
Includes tracking expenditures and managing cost overruns.

5. Skillset Requirements
Ensuring the team has the necessary skills and expertise for the project.
May involve upskilling, hiring, or outsourcing specific skills.

6. Risk Management
Accounting for resource-related risks such as unavailability, delays, or cost increases.
Mitigation strategies include contingency planning and backup resources.
7. Resource Optimization
Improving efficiency in using resources to reduce waste and cost.
Techniques include resource leveling (adjusting start/finish dates) and resource smoothing
(adjusting workload).

8. Collaboration and Communication

Ensuring team members and stakeholders collaborate effectively.
Tools like project management software (e.g., MS Project, Trello, or Asana) help track and
manage resources.

9. Resource Monitoring and Control

Continuously tracking resource usage to ensure alignment with the project plan.
Regularly update resource schedules and adjust allocations as necessary.

10. Legal and Regulatory Compliance

Ensuring material, financial, and human resources comply with laws, regulations, and ethical
standards.
 Common Challenges in Resource Management
Over-allocation: Assigning too many tasks to a single
resource, leading to burnout.
Resource Conflicts: Competing demands for the same
resources across multiple projects.
Underutilization: Resources not being fully utilized, leading
to inefficiencies.
Unforeseen Resource Needs: Unexpected requirements due
to scope changes or risks.
Budget Constraints: Limited funds affecting the availability
and quality of resources.
 Best Practices for Resource Considerations in Projects
Use Resource Management Tools: Leverage software to track resource
availability, workloads, and schedules.
Prioritize Critical Resources: Focus on resources that are essential to the
project's success.
Regular Updates: Continuously review resource needs and availability to
adjust plans proactively.
Stakeholder Involvement: Keep stakeholders informed about resource
constraints and decisions.
Training and Development: Invest in upskilling team members to reduce
reliance on external resources.
Contingency Planning: Always have a plan for unexpected resource shortages
or disruptions.

By carefully considering resources throughout the project lifecycle, project

managers can ensure smoother execution, mitigate risks and deliver
successful outcomes.
 Resource Allocation, Scheduling and Project Cost
Estimating in Project Management

These three elements are crucial aspects of project

management. They ensure that resources are used
effectively, timelines are adhered to and budgets are
maintained, contributing to the overall success of the
project.
 1. Resource Allocation in Project Management
Resource allocation is the process of assigning available
resources (human, material, financial, or technological)
to specific tasks or activities within a project. Effective
resource allocation ensures optimal use of resources
while minimizing waste and conflicts.
 Key Steps in Resource Allocation:
Identify Project Resources
Determine the type and quantity of resources needed for each task.
Use tools like the Resource Breakdown Structure (RBS) to categorize resources.

Assess Resource Availability

Evaluate the availability of resources during the project timeline.
Check for potential constraints like limited personnel or overlapping commitments.

Allocate Resources to Tasks

Assign resources based on skills, priority, and task requirements.
Ensure workloads are balanced to avoid over- or underutilization.

Resolve Resource Conflicts

Address competing demands for the same resources by reassigning tasks or adjusting schedules.

Monitor and Adjust Allocation

Continuously track resource usage and reallocate as needed due to changes in scope or timelines.
Tools for Resource Allocation:

Resource Allocation Charts: Visual representation of

resource assignments.

Project Management Software: Tools like MS Project, Jira,

or Asana help track resources.

Gantt Charts: Provide a timeline view of resource usage.

 2. Scheduling in Project Management
Scheduling involves creating a detailed timeline for
project tasks, defining when each activity will start and
end, and ensuring the project progresses within the
planned duration.
 Key Steps in Scheduling:
Define Activities and Dependencies
Break down the project scope into tasks and identify dependencies (e.g., Task B cannot start until
Task A is complete).

Estimate Activity Durations

Use historical data, expert judgment or analogous estimating to determine how long each task
will take.

Sequence Tasks
Arrange tasks in the correct order based on dependencies using tools like a network diagram.

Create the Project Schedule

Develop a timeline for the project, including milestones and deadlines.
Use tools like Gantt charts or the Critical Path Method (CPM) to visualize and optimize the
schedule.

Monitor and Update the Schedule

Track progress regularly and adjust the schedule for changes in scope, resource availability, or
unforeseen delays.
 Scheduling Techniques:

Critical Path Method (CPM): Identifies the longest

sequence of dependent tasks and determines the
shortest project duration.
Program Evaluation Review Technique (PERT): Uses
probabilistic time estimates for tasks.
Agile Scheduling: Focuses on iterative and incremental
delivery with short planning cycles.
 3. Project Cost Estimating in Project Management

Cost estimating is the process of predicting the

financial resources required to complete a project. It
ensures the project is adequately funded and helps
prevent cost overruns.
 Key Steps in Cost Estimation:
Identify Cost Components
Direct Costs: Labour, materials, equipment, etc.
Indirect Costs: Overheads, administrative expenses, etc.

Estimate Costs for Each Activity

Determine costs for individual tasks using various estimating techniques (see below).

Determine the Overall Project Budget

Sum the activity costs, add contingency reserves for risks, and include management reserves for
unforeseen expenses.

Validate and Approve the Estimate

Review the estimate with stakeholders to ensure it aligns with expectations and constraints.

Monitor and Control Costs

Track actual costs against the estimate during project execution and take corrective actions as needed.
 Cost Estimation Techniques:
Analogous Estimating:

Use historical data from similar projects to estimate costs.

Quick but less accurate.

Parametric Estimating:

Use mathematical models and historical data to estimate costs (e.g., cost per square meter in
construction).

Bottom-Up Estimating:

Estimate costs for each task and aggregate them for the total project cost.
Highly detailed and accurate.
Three-Point Estimating:
Use optimistic, pessimistic, and most likely estimates to calculate an
average cost.
Formula:
𝐸=(𝑂+4𝑀+𝑃)/ 6
(where O is optimistic, M is most likely, P is pessimistic).

Expert Judgment:
Leverage insights from experienced professionals.

Reserve Analysis:
Add contingency reserves to account for known risks and management
reserves for unknown risks.
Integration of Resource Allocation, Scheduling and Cost Estimating

Effective project management requires integrating these three elements:

Resource-Driven Scheduling:
Ensure resource availability aligns with the project schedule.

Cost-Resource Balance:
Allocate resources while staying within the cost constraints.

Time-Cost Trade-offs:
Balance time and cost by optimizing the use of resources (e.g., crashing or fast-tracking).

Continuous Monitoring:
Use Earned Value Management (EVM) to track cost and schedule performance and adjust as needed.

By carefully considering resources, scheduling, and costs, project managers can improve efficiency,
manage risks, and increase the likelihood of delivering successful projects.