Project

Management
Course: 504
 Learning Objective

Project
Implementation
& controlling
Topic
• Froms of project organisation, Project
planning & control, Human Aspect of
project management, Prerequisites for
Successful project implementation,
Network Technique
FORMS OF PROJECT ORGANISATION:
The traditional form of organisation is not suitable for project work for
the following reasons:
(i)integrating different departments levels below top management,
and
(ii) does facilitate effective communication, control several functional
departments, with different professional backgrounds and
orientations are involved in the project work under cost pressures,
which involves overlap, partial, the construction, and commissioning
work. Hence there is need for entrusting an individual (or group) with
the responsibility for integrating the activities and functions of various
departments and external organizations involved project Such
individual may called the project manager/ project coordinator.
Depending on the authority that given to the person responsible
project organization may take oneLine and staff
organization,Divisional organization,Matrix organization,
 Line and Staff Organization

In this form of project organization, person is appointed with the

primary responsibility coordinating the work the people in the
functional departments. Such a person, referred to commonly as
the project coordinator, acts essentially position facilitate
coordination of line management functional departments. The
project coordinator does have authority and direct responsibility
the management. He serves as focal point for receiving project-
related information and seeks to promote cause the project by
rendering advice, sharing information, and providing assistance.
He may gently coax executives strive for the fulfillment of project
goals. Deprived of formal organizational authority, he may find it
difficult to exert and unsure his role. His influence would depend
his professional competence, closeness to top management,
organization which may be employed mostly for small projects - it
is certainly not suitable for large projects.
 Divisional Organization

Under this form of project organization, separate division is set up to implement

the project. Headed by the project manager, this division has its complement of
personnel over whom the project manager has full line authority. In effect, this
form of organization implies the creation of a separate goal-oriented division of
the company, with its own functional departments. While the project manager still
has the problem of coordinating the inputs of other organizations involved in the
project, he has total formal control over the division he heads. A very strong form
of project organization, the divisional project organization facilitates the process
of planning and control, brings about better integration of efforts, and
strengthens the commitment of project-related personnel to the objectives of the
project. It considerably improves the prospect of fulfilling the time and budget
targets. This form of organization, however, may entail an inefficient use of the
resources of the firm. It may result in an unnecessary duplication of specialists in
the company, because of the necessity to allocate them in total to each project.
Further, it may be difficult to achieve a higher degree of specialization of
expertise because the divisional project organization may have to manage with,
say, one mechanical engineer, rather than two specialists. The line and
functional form of organization is conducive to an efficient use of resources but is
not suitable for an effective realization of project objectives. The divisional form
of organization, on the other hand, is suitable for effective realization of project
 Matrix Organization

The matrix form of organisation, the third form of project organisation, seeks to
achieve the twin objectives of efficient use of resources and effective realisation
of project objectives-at the cost of greater organisational complexity, of
course.In a matrix organisation, the personnel working on the project have a
responsibility to their functional superior as well to the project manager. This
means that the authority is shared between the project manager and the
functional managers. The authority and influence of the project manager cur
across the traditional vertical line of command. Exhibit shows the organisation
chart for a typical matrix organisation. As is evident from this exhibit, the project
manager integrates the contributions of personnel in various functional
departments toward the realisation of project objectives. personnel maintain
their departmental affiliation and are responsible to their functional superiors,
they are responsible to the project manager as well.The matrix form of
organisation is incongruent with the traditional organisation theory:
there is dual subordination; responsibility and authority are not
commensurate; the hierarchical principle is ignored. This clearly
implies that the matrix form of organisation involves greater
organisational complexity and creates an inherently conflictful
situation. Yet it seems to be a better vehicle for the simultaneous
PROJECT PLANNING
Projects involving few activities, a can be relationships resources,
constraints, and inter visualised easily by the human mind and
planned informally. However, when a project crosses a certain
threshold level of size and complexity, informal planning has to be
substituted by formal planning. The need for formal planning is
indeed much greater for project work than for normal operations.
Without effective planning, there may be chaos. Functions of
Planning, a vital aspect of management, serves several important
functions: It provides a basis for organising the work on the project
and allocating responsibilities to individuals. It is a means of
communication and coordination between all those involved in the
project. It induces people to look ahead. It instills a sense of
urgency and time consciousness.It establishes the basis for
monitoring and control. Areas of Planning Comprehensive project
planning covers the following: Planning the project work The
activities relating to the project must be spelt out in detail. They
should be properly scheduled and sequenced.
Planning the manpower and organisation The manpower required for the
project (managers, technologists, operators, and others) must be estimated
and the responsibility for carrying out the project work must be
allocated.Planning the money The expenditure of money in a time-phased
manner must be budgeted.Planning the information system The information
required for monitoring the project must be defined.
"Project controlling" in project management refers to the process of systematically monitoring
and analyzing a project's progress against its planned objectives, identifying any deviations from
the plan, and taking corrective actions to ensure the project stays on track and achieves its
goals, essentially acting as a steering mechanism to maintain control over the project's budget,
schedule, and scope throughout its lifecycle.
Unreliable information :One of the major problems in project control is unreliable and
inaccurate data and information. Often project managers receive reports which suggest
that "everything is okay" or things are "reasonably within control" when the reality is
otherwise. Further, for months after the project is completed, costs dribble in to change a
favourable variance into an unfavourable variance. one or to aggravate an Variance
Analysis Approach.
The traditional approach to project control involves a comparison of the actual cost with
the budgeted cost to determine the variance. An example of variance analysis follows:

The variance analysis approach is inadequate for project control for the following reasons:
1.It is backward looking rather than forward looking It tells only what happened in the past but does
not answer the following questions: What will happen in future? Is the rate of work accelerating or
decelerating?
2.It does not use the data effectively to provide integrated control The traditional variance analysis
shows whether in the time period under analysis more or less resources were expended than
budgeted. However, it does not indicate the value of work done. This information is vital for
purposes of control. Performance Analysis: A Better Approach to Control Effective control over a
project requires systematic 'performance analysis'. This calls for answering the following questions:
Is the project as a whole (and its individual parts) on schedule, ahead of schedule, or behind
schedule? If there is a variation, where did it occur, why did it occur, who is responsible for it and
what would be its implications ?
HUMAN ASPECTS OF PROJECT MANAGEMENTA

satisfactory human relations system is essential for the successful execution of a project. Without such a system,
the other systems of project management, however sound they may be by themselves, are not likely to work well.
While technical problems can often be solved with additional investment of resources, people's problems may not
be amenable to a satisfactory solution in the short span of the project life. To achieve satisfactory human
relations in the project setting, the project manager must successfully handle problems and challenges relating
to:
Authority
Orientation
Motivation
Group functioning
Authority Except in the divisional organisation, the project manager, whose activities cut across functional lines
of command, lacks the desired formal authority over project-related personnel. Without the conventional leverage
of hierarchical authority, the project manager has to coordinate the efforts of various functional groups (within the
organisation) and outside agencies. While he often has formal control emanating from contracts and agreements,
as far as outside agencies involved in the project work are concerned, in his own organisation he
has to contend with split authority and dual subordination. Since the project manager works largely
with professionals and supervisory personnel, the basis of the authority would be different from that
found in simple superior-subordinate relationships. For exercising leadership and influence over
professional people, he has to explain the logic and rationale for the project activities: show
receptivity to the suggestions made by others; avoid unilateral imposition of decisions; eschew
dogmatic postures; and search for areas of agreement which can be the basis of acceptable
solutions. His effective authority would stem from his ability to develop a rapport with the project
personnel, his skill in resolving conflicts among various people working on the project, his
professional reputation and stature, his skills in communication and persuasion, and his ability to
act as a buffer between the technical, engineering, financial, and commercial people involved in the
project.
Orientation
Most of the managers working for project are usually engineers (or technologists). Typically, an
engineer:
Works with physical laws, characterised by mathematical precision, as his tools.
Adopts a structured, mechanical approach to his problems.
Seeks an enduring solution to his problem.
Attaches a high value on technical perfection.
When an engineer assumes managerial responsibilities, he faces a verydifferent world in which he
is supposed to:
Perform the tasks of planning, organising, directing, and controlling theresources of the firm in a
world of uncertainty.
Adopt a more creative approach to solve non-programmed and unstructured problems.
Attach greater importance to efficient utilisation of resources and resolution of human relation
problems.
Thus the project manager has to strengthen the managerial orientation of project
personnel so that the project goals and objectives can be efficiently achieved within the
constraints of time and budget. Clearly for achieving this task he must himself be an
accomplished engineer-manager.
Motivation
The project manager functions within the boundaries of a socio technical system. Most of the factors of this
system-organisational structure, technical requirements, competencies of project personnel-are more or less
'given' for him. The principal behavioural factor which he can influence is the motivation of the project personnel.
In this context, he should bear in mind the following:
Human beings are motivated by a variety of needs: physiological needs, social needs, recognition needs, and
self-actualisation needs, Individuals differ greatly in the importance they attach to various need satisfactions.
Further, their attitudes tend to change with time and circumstances, and are significantly influenced by their peers
and superiors.
The traditional approach to management was based on the assumption that human beings regard work as
unpleasant, shirk responsibility, and ordinarily employ inefficient and wasteful methods. Such a conception of
human behaviour suggests that a great deal of pressure has to be applied. Behavioural research, however, has
shown that while some pressure is beneficial, an excess of it is undesirable. Beyond a certain point, pressure is
dysfunctional.
Motivation tends to be strong when the goal set is challenging, yet attainable. If the goal is too demanding, it
results in frustration and conflict; if too lax, it induces complacency.
Expectation of reward, rather than fear of punishment, has a greater bearing on individual behaviour. Further, the
effectiveness of reward or punishment depends on how quickly it is administered.
In a project setting where hygiene factors (like pay, physical working conditions, etc.) are reasonably taken care
of, the principal motivators would be a sense of accomplishment and professional growth. In this setting, the
project manager should rely more on participative methods of management.
In order to succeed in motivating project personnel, the project manager must be a perceptive observer of human
beings, must have the ability to appreciate the variable needs of human beings, must have skill in several styles
of management suitable to different situations, and must be sensitive to the reactions of people so that he can act
supportively rather than threateningly.
Understandably, the project manager has difficult task. In this endeavour, he can, however, count on one
blessing: the stimulafessional project work. In established organisations many and satisfying nature of and
supervisory personnel find it difficult to see how their efforts redound to the realisation of organisational goals.
Separated from top management by several layers of organisational hierarchy, they may not be able to relate
their work meaningfully to the missions of the firm (which themselves often may be blurred to them). In addition,
the jobs in established organisations are somewhat dull and routine.
• Prerequisites for Successful Project Implementation
• Time and cost over-runs of projects are very common in India, particularly in the
public sector. Due to such time and cost over-runs, projects tend to become
uneconomical, resources are not available to support other projects, and economic
development is adversely affected.What can be done to minimise time and cost over-
runs and thereby improve the prospects of the successful completion of projects?
While a lot of things can be done to achieve this goal, the more important ones
appear to be as follows:
• Adequate formulation
• Sound project organization
• Proper implementation planning
• Advance action
• Timely availability of funds
• Judicious equipment tendering and procurement
• Better contract management
• Effective monitoring
• Adequate Formulation Often project formulation is deficient because of one or
more of the following shortcomings:
• Superficial field investigation
• Cursory assessment of input requirements
• Slip-shod methods used for estimating costs and benefits
• Omission of project linkages
• Flawed judgements because of lack of experience and expertise
• Undue hurry to get started
 Discuss the constraints for successful implementation of
the project in Bangladesh.
1. over dependence on foreign aid.
2. Crowding of project
3. Lack of objectivity
4. Lack of co-ordination and co-operation
5. Lack of resources
6. Lack of effective monitoring and supervision of project
7. Lack of sound plan and political system
8. Lack of skilled manpower and technicians
9. Delay in approval of project.
10. Delay in fund release
11. Miscellaneous.
 How can those be removed?
1. Dependency on foreign aid should be reduced
2. Project proposal should not be large
3. Sound plan and objectives should be proposed.
4. Co-ordination and co-operation among various department should be
strong
5. Resources should be increased
6. Effective monitoring and evaluating systems should be proposed
7. Co-operation between local authority and political party should be
build.
8. Provide proper training to create skilled manpower and technician
9. Project should be quickly approved
10. Project should be quickly released.
Thank
You