UNIT ONE

PROJECT
MANAGEMENT
 Introduction
1.1. What is a Project?
Organizations perform work. Work generally could be
classified into either operations or projects, although in
some cases both of them may overlap.
 Both share many characteristics in common like:
• People perform both the activities.
• Both are constrained by limited resources.
• Both are planned, executed, and controlled.
 However, operations and projects differ primarily in
their repeatability. Operations are ongoing and
repetitive whereas projects are temporary and unique.
Cont.
 A project is a unique endeavor to produce a set of
deliverables within clearly specified time, cost and
quality constraints.
 Projects differ from standard business operational
activities:
o Unique In Nature: They don’t involve repetitive processes.
o Have Defined Timescale: projects have a clearly specified start and
end date.
o Have Approved Budget: projects are allocated a level of financial
expenditure.
o Have Limited Resources: at the start of a project amount of labor,
equipment and materials is allocated to the project.
o Involve Element of Risk: projects entail a level of uncertainty.
o Achieve Beneficial Change: the purpose of a project is to improve an
organization via the implementation of business change.
Cont.
Projects may involve a single unit of one
organization or may cross-organizational
boundaries. Examples of projects could
include:
• Developing a new product or service.
• Effecting a change in structure, staffing, or style
of an organization.
• Developing a new or modified information
system.
• Implementing a new business procedure or
process.
 PROJECT MANAGEMENT
Project management is the application of
knowledge, skills, tools, and techniques to
project activities to meet project
requirements.
 Project management is accomplished
through the use of the 5 processes:
• Initiation
• Planning
• Execution
• Controlling and
• Closure
1.2. Project Features
Projects are classified based on several criteria:
1) Based on their ownership:
a. Private sector
b. Public sector
c. Non Governmental Organizations.

2) Based on the Sources of Finance:

d. Government treasury
e. Government treasury and external sources
f. External sources of Finance

3) Based on the forces Behind:

g. Demand Driven/Need Driven
h. Donor Driven
i. Political Driven
 Basic characteristics of a Project
 It involves the investment of scarce resources in the
expectation of future benefits
 The project will have a measurable objectives
 A project is the smallest operational element unit
 Projects are conceptually & geographically bounded.
 Projects are organizationally bounded.
 Uncertainty and risks are inherent in any project.
 It has a scope that can be categorized into definable
tasks.
 It may require the use of multiple resources
Hierarchical Relationships
Development
Plans

Programs

Projects

Tasks

W ork
Packages
N.B: Projects can stand alone without being part of
certain program. So, one can visualize that the linkage
of policies, development plans, and projects. Projects,
which are not linked with others to form a program, are
sometimes referred to as “Stand Alone Projects”.

1. Development Plans:
 Most forward looking (futuristic)
 Broad and require systematic thinking,
preparation and appraisal
 Attempts to bring welfare in the society
Cont.
2. Programs:
• Derived from development plan.
• Exceptionally large with long term objectives
• Explores specific area with broader scope

3. Projects:
• Derived from a program
• Unique investigative tool
• A development activity with specific objectives
• Funded by a program
• An implementation element (entity)
Cont.
4. Tasks:
• Work elements under a project
• Specific approaches for doing things
• Set of activities comprising a project
5. Work Packages:
• Sub elements of a given task undertaking
• Something accomplished stage by stage
• Collection of work packages defines a
given task
 Differences:

PROJECTS PROGRAMS
Specific Objectives General Objectives
Specific Project Areas No Specific Project Areas
Specific beneficiaries No Specific beneficiaries
group group
Clearly determined and No clear & detailed
allocated funds allocated funds
Specific lifetime No specific lifetime
Similarities:
Projects & programs have similar characters
in a way that both are:
 Having objectives;
 Requiring financial, human, material, etc.
inputs (or resources);
 Generating outputs, (goods/services), of
value;
 Serving as instruments for the execution
of development plans in order to boost the
national economy.
 UNIT TWO
THE
PROJECT CYCLE
Cont.
Cont.
 Motivator factors include Potential for achievement,
Receiving recognition, Being given responsibility, The
potential for advancement…
Implication for Managers
 The theory implies that managers must focus their efforts in
two areas: ensuring hygiene factors to avoid employee
dissatisfaction, and also ensuring work of rewarding and
challenging to motivate employees to work harder.
 He argued that managers must focus on job enrichment in
order to motivate employees in continuous management
process.
 The theory argued that the two-factor result is a natural
reaction to ask employees around the sources of satisfaction
and dissatisfaction in their work.
 Expectancy and Equity Theories
1) Expectancy Theory:
 Expectancy theory (Victor Vroom Theory) realized that an
employee’s performance is based on individual’s factors
such as personality, skills, knowledge, experience and
abilities.
 It is a cognitive process theory of motivation based on
the idea that people believe there is relationships b/n the
effort they put ahead at work, the performance they
achieve from that effort, and the rewards they receive
from their effort .
 In other words, people will be motivated if they believe
that strong effort will lead to good performance and this
good performance will lead to desired rewards.
Expectancy theory is based on four assumptions:
1. People join organizations with expectations about their
needs, motivations, and past experiences.
2. An individual’s behavior is a result of conscious choice. They
are free to choose behaviors suggested by their own
expectancy calculations.
3. People want different things from the organization (e.g.,
good salary, job security, advancement, etc.).
4. People will choose among alternatives so as to optimize
outcomes for them.
The expectancy theory is based on these assumptions has
three key elements:
Expectancy, Instrumentality & Valence
Cont.
A person is motivated to the degree that he or she believes that
• effort will lead to acceptable performance (expectancy),
• performance will be rewarded (instrumentality), and
• the value of the rewards is highly positive (valence).
Expectancy: is a person’s estimate of the probability that
job-related effort will result in a given level of performance.
Instrumentality: is an individual’s estimate of the
probability that a given level of achieved task performance will
lead to various work outcomes.
Valence: is the strength of an employee’s preference for a
particular reward. Thus, salary increases, promotion, peer
acceptance, recognition any other reward might have more or
less value to individual employees.
2. Equity Theory:
 It is a theory that attempts to explain relational satisfaction
in terms of perceptions of fair/unfair distributions of
resources within interpersonal relationships.
 It suggested that employees seek to maintain equity b/n the
inputs that they bring to a job and the outcomes that they
receive from it against the perceived inputs and outcomes.
 The belief is that, people value fair treatment which causes
them to be motivated to keep the fairness maintained
within the relationship of their co-workers and the
organization.
 The structure of equity in the workplace is based on the
ratio of inputs to outcomes. Inputs are the contributions
made by the employee for the organization.
Cont.
• Equity is measured by comparing the rations of contributions
and benefits of each person within the relationship. When
individuals find themselves participating in inequitable
relationships, they become distressed.
• The more inequitable the relationship, the more distress
individuals feel.
• According to equity theory, both the person who gets “too
much” and the person who gets “too little” feel distressed.
• The person who gets too much may feel guilt or shame. The
person who gets too little may feel angry or humiliated.
 Goal Setting Theory
It states that specific goals along with appropriate feedback
contribute to higher and better task performance. Thus, goals
indicate & give direction to an employee about what needs to be
done and much efforts are required to be put in.
Important Features of Goal-setting Theory
 The willingness to work towards attainment of goal is main
source of job motivation.
 Specific and clear goal lead to greater output and better
performance.
 Goals should be realistic and challenging.
 Better and appropriate feedback directs employee behavior and
contributes to higher performance.
 Employees’ participation on setting goal makes goal more
acceptable and leads to more involvement.
Goal setting theory has certain eventualities:
a) Self-efficiency-is the individual’s self-confidence and faith
that has potential of performing the task.
b) Goal commitment- it assumes that individual is
committed to the goal and will not leave the goal.
Limitations of Goal Setting Theory
 The organizational goals are in conflict with the managerial
goals.
 Very difficult and complex goals stimulate risky behavior.
 If the employee lacks skills and competencies to perform
actions for the goal, the goal-setting can fail .
 There is no evidence to prove that goal-setting improves job
satisfaction.
 UNIT 7
EMERGING TRENDS
IN
MANAGEMENT
 Total Quality Management (TQM)
What is Quality? There are many scholars and authors
who have given definitions of ‘quality.’
 Edward defined ‘quality’ as the capacity of a product or service
to satisfy the consumer requirements.
 Juran defined quality as being ‘fitness for purpose of use, it is
judged by the users, not the manufacturers, or the merchants’.
He also asserted that each product/service has multiple quality
characteristics, which can be divided into two kinds: the
features desired by customers, and the freedom from
deficiencies.
 Japanese quality philosophy is ‘zero defects - It means that
quality is the result of doing the right thing and doing the thing
right the first time.
We can summary meanings of quality:
1. It is conforming to the standards and specifications of a
product/service.
2. It is zero defects or meeting the specifications 100%.
3. It means that product/service possesses the fitness for
purpose of use based on its functions.
4. It is the ability of a product/service to meet the customer’s
needs and expectations.
5. It is assessed by customer only borne upon the critical
features and characteristics of a product/service considered
by customer.
6. It is determined by the deviation of the measures of quality
characteristics of a product.
7. It is a customer satisfaction.
Dimensions of Service Quality:
Convenience – the availability and accessibility of the service
Reliability – ability to perform a service dependably,
consistently, and accurately
Responsiveness – willingness to help customers in unusual
situations and to deal with problems
Time – the speed with which the service is delivered
Assurance – knowledge exhibited by personnel and their
ability to convey trust and confidence
Courtesy – the way customers are treated by employees
Tangibles – the physical appearance of facilities, equipment,
personnel, and communication materials
Consistency – the ability to provide the same level of good
quality repeatedly
Dimensions of Product Quality:
Performance: refers to a product's primary operating
characters. For an automobile it include traits like acceleration,
handling, cruising speed, and comfort.
Features: are usually the secondary aspects of performance,
the "bells and whistles" of products and services, those traits
that supplement their basic functioning.
Reliability: reflects the probability of a product
malfunctioning or failing within a specified time period.
Conformance: is the degree to which a product's design
and operating characteristics meet established standards.
Durability: A measure of product life, durability has both
economic and technical dimensions.
Cont.
Serviceability: is the speed, competence, and ease of
repair. It also about the time before service is restored, the
timeliness with which service appointments are kept, the nature
of dealings with service personnel.
Aesthetics: a subjective dimension of quality. How a pdt
looks, feels, sounds, tastes, or smells is a matter of personal
judgment and a reflection of individual preference.
Perceived Quality: Consumers do not always have complete
information about a product's or service's attributes; indirect
measures may be their only basis for comparing brands.
Determinants of Quality:
Quality of Design – intention of designers to include or
exclude features in a product or Service
Quality of Conformance- refers to the degree to
which goods and services conform to the intent of the
designer.
Ease of Use - refers to the ease of usage of the product or
services for the customers.
Services - offered to the customer after delivery.
 TQM Tools and Techniques
Managers can rely on several specific tools and techniques for
improving quality. Among the most popular today are:
Bench Marking: The process of comparing the
organization practices and techniques with those of other
companies or the process of learning how other firms do
exceptionally high-quality things.
Out-Sourcing: The process of subcontracting to other firms
that can perform them cheaper or better.
Speed: The time needed by the organization to get its
activities accomplished such as developing, making and
distributing products or services.
ISO: ISO 9000 refers to a set of quality standards created by the
international organization for standardization.
Cont.
Statistical Quality Control: refers to set of specific statistical
techniques that can be used to monitor quality such as acceptance
sampling and in process sampling .
Theory-Z
Theory Z is Japanese consensus management style based on the
assumption that employees:
• want to build cooperative relationships with their employers, peers,
and other employees in the firm;
• require high degree of support for development of multiple skills
through training and job rotation,
• they value family life, culture, traditions, & social institutions as much
as material success,
• they have well developed sense of dedication, moral obligations and
self-discipline,
• they can make collective decisions through consensus
 Business Process Re-engineering
BPR concerns the fundamental rethinking and radical redesign of
a business process to obtain sustained improvements in quality,
cost, service, lead time, flexibility and innovation.
 BPR focuses on the whole process starting from product
conceptual stage to final product design.
 It provides the opportunity to reengineer the process or to
reduce radically the number of activities it takes to carry out a
process with the help of advanced Information Technology (IT).
 BPR requires organizational restructuring (the facility location,
capacity, types of products, technology, people) and changes in
employees’ behavior (training, education, job enrichment, and
employee empowerment) with a view to accommodating and
facilitating radical changes for achieving dramatic
improvements in business performance.
Concept of BPR
The BPR concepts involve four dimensions that are stated below:
A. Innovative Rethinking: is a process that is itself
completely dependent on creativity, inspiration and old-
fashioned luck.
B. Process Function: a collection of activities that take one
or more kinds of input and creates an output that is of value
to the customer.
C. Radical Change: is the transformation of Organizational
element essential to an organization survival. Change leads to
new ideas, technology, innovation and improvement.
D. Organizational Development & Performance: a
look at the firm’s level of efficiency & way to improve its
current activity level in order to meet up to standards and
survive the competitive pressure.
Basic Steps in BPR:
 Develop business vision and process objectives,
 Identify the processes to be redesigned,
 Understand and measure the existing process,
 Identity information technology (IT) levels &
 Design and Build a prototype of New Process

Contemporary Issues in Management

Where are we today? What Contemporary management
concepts and practices are shaping “tomorrow’s history”? This
session establishes a framework for understanding social
responsibility, managerial ethics, globalization, entrepreneurship
and managing in an e-business world.
1. Corporate Social Responsibility (CSR):
 The CRS concerns the social environment & a changed social
contract. Many argued that organizations must consider the
societal impact of their decisions and actions.
 Furthermore, the organizations must act to protect and
improve the welfare of the general public. The organizations
must aim not only on organizational effectiveness but also on
existence to address the needs of society.
2. Business Ethics:
 Some major corporation faced unethical acts which lead to
public distrust in one time or another.
 The word ethics means character or customs. As such, the
organization’s codes and by-laws must convey moral integrity
and values in serving the public to avoid misgivings and
scepticism.
3. Corporate Governance:
 The concepts of firm and the interests it govern contribute to
the understanding of the issues implies the exercise of
authority, corporate governance, is the study of the allocation
and exercise of legitimate authority.
4. Quality of Work Life:
 The QWL is essential for continuous attraction of future
employees and retention of current employees.
 It is a comprehensive company-wide program which aims at the
improvement of employee satisfaction, strengthening of
workplace learning and helping employees to have a better
change- and transition-management.
 It includes concerns of job security, job sustainability, reward
systems, training and career advancements opportunities and
participation in decision-making.
5. Workforce Treatment & Discrimination:
 The work treatment & the work discrimination have different
dimensions: These dimensions transcends across all status,
race, gender, and etc.
 Work discrimination refers as “unfair and negative treatment
of workers or job applicants based on personal attributes that
are irrelevant to job performance”. Violating institutional
policies & decisions regarding hiring, firing promotion, salary
deductions and job assignments.

6. Transparency:
 Generally, transparency is critical in corporate accounting and
statements. The companies must practice publicizing in order
to gain and regain the confidence of shareholders and
consumers in all aspects of business.
Cont.
7. Globalization:
 The world has definitely become a global village!
Managers in organizations of all sizes and types
around the world are faced with the opportunities
and challenges of operating in a global market.
TH A N K
YO U !