Project Organization & Implementation

8/4/2019 Project Organization & Implementation

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4/18/12 Project Management/ Unit

Unit Three

Project Organization andImplementation

Project Organization: FunctionalOrganization & Matrix Organization.

Project Team Building.

project Implementation & its process.

Project procurement management

Conflict and Negotiation in the Project.

Risk Involvement in Project

Project Risk Management

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Project Organization

Project organization is essential forthe designing of project structure,pooling of human & non-humanresources, establishing authority &responsibility relationship &establishment of project office.

It is the engine of projectmanagement.

It coordinates & integrates human &non-human resources of the ro ect.22Project Management/ Unit4/18/12


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The project organization is a temporaryorganization. It lasts till the life of theproject.

Project organization can be defined as agroup of people who must coordinatetheir activities in order to meetorganizational objectives.

Project organization is concerned withthe patterns of relationship betweenperson in project so contrived upon as

to fulfill the project function. 33Project Management/ Unit4/18/12


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1.Establishing authority &responsibility relationship:Authority & responsibility of

each position is clearlydefined. Job description areprepared.

2.Establishing project office:A project office is established

to serve for the project.Project Management/ Unit 554/18/12


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The Project as a part of theFunctional Organization

The project activities are performed asa part of functional organization that

consists various functional departmentssuch as production, marketing, finance,human resource & R&D departments.

It is pyramid or hierarchical in shape.

The project is assigned to functionalunit that has the interest in ensuring itssuccess or can be helpful in

implementing it. 66Project Management/ Unit4/18/12


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A person is appointed with the mainresponsibility of coordinating thework of people in the functionaldepartments.

The person usually designated asproject coordinator act in a staffposition to facilitate the coordinationof line management in functionaldepartment.

It is suitable for small nature of theProject Management/ Unit 774/18/12


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Functional organization

Structure

88Project Management/ Unit

GM

Producti

onDepartment

Market

ingDept.

Financ

ialDept.

Huma

nResource

Dept.

R &

DDept

.Project A

Projec

t B4/18/12


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Advantages

1. Flexibility: This structure facilitatesmaximum flexibility in the use of existinghuman resources.

2. Specialization: This structure developsexpertise & specialization in humanresources.

3. It provides better supervision & increases

efficiency of the project.4. The mass production is possible in this

structure due to the provision ofspecialization & standardization.

5. There is systematic communication channel99Project Management/ Unit4/18/12


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Disadvantages

1. Lack of project focus: There is noclear cut responsibility for the project.There is no mechanism for theeffective coordination & integration ofresources for the project.

2. Decision delays: Decision delaysresult because of hierarchy.

3.There is low morale & motivationamong employees.

4. It fails to take holistic approach in

project. 1010Project Management/ Unit4/18/12


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It has been developed to meet the

need of large & complexorganization which requires astructure more flexible & technically

oriented rather than the productfunctioning structure.

This form of organization

superimposes project structure onfunctional structure. The basicorganizational design is functional.

Temporary project structure is1212Project Management/ Unit4/18/12


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The project team is assigned from

the functional departments. Theproject manager has overallresponsibility for achieving project

objectives.It is most useful structure wherevera new task is to be done when

specialist from different areas mustgrouped together, when a compactproject constraints & deadlines must

be met within certain cost limits.Project Management/ Unit 13134/18/12


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Advantages1. Focus on project objectives: This

structure focuses on project objectivesthrough the project manager.

2. Coordination: The interface betweenproject manager & functional managersfacilitates coordination acrossdepartment lines.

3. Flexibility: It provides adequate

flexibility & able to adopt the changesduring the project implementation.

4. Efficiency: It facilitates efficient

utilization of organizational resources.1414Project Management/ Unit4/18/12


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5.Employee development:Employees develop their skills &knowledge through interdisciplinary

interactions.6.Free time for top management:

The authority for day to day

decisions in the project isdelegated to project managerwhich makes free time for top

management for planning &1515Project Management/ Unit4/18/12


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Disadvantages1. Dual boss problem:The project employees

report vertically to departmental managers.Horizontally, they report to the projectmanager.

2. There is conflict between management goal& project goal.

3. Many problems & difficulties may create inmonitoring & control.

4. There is duplication of efforts & resources.Project can duplicate the efforts of linedepartment.

5. This structure is costly to implement &

maintain. Overheads are heavy. 1616Project Management/ Unit4/18/12


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Project Team Building

Team means two or more than twopersons who work together to achievecommon objectives. It consists of two ormore people who:

vPerceive themselves as a group.

v Interact & are independent on eachother to achieve a common objectives.

Team work consists of a group of peoplefrom different backgrounds,experiences, disciplines, skills &

personal needs. It is a continuous &1717Project Management/ Unit4/18/12


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The success of any project depends upon

whether the people who been brought into itsfold will willingly cooperate with each other ornot.

When all participants of the project work hand

in hand for the good of the project, then theparticipant can said to be working as a team.

Successful teams do not just happen. Theyneed to be built.

A project manager is the leader of the projectteam.

It is his responsibility to build project people

into a cohesive team by integrating their1818Project Management/ Unit4/18/12


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Building

the ProjectTeam

Negotiate with TheirSupervisor

Talk to Potential TeamMembers

Identify Necessary Skills

Renegotiate with TopManagement

Identify People With Skills

Build Fallback PositionsAssemble the Team

Success?

Success?YesYes

No

No


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Characteristics ofproject teamProject team is a formal group created to

achieve particular objectives. The followingsare the major characteristics of project team:

1. Performance: There is high performance &

task efficiency of the team members.2. Commitment: There is high level of

commitment of members to fulfill the projectobjectives.

3. Innovative: Innovative & creative behavioron the part of team members are reflected inteam work. They seek better ways of doing

things. 2020Project Management/ Unit4/18/12


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4. Member goals: The personal goals of

team members are in harmony withproject goals & requirements.

5. Result orientation: The project team

is focused on achieving project resultsas the key priority.

6. Enthusiasm: The project team hashigh energy levels & enthusiasm. Thelevel of morale is high.

7. Communication: There is an effective& open communication within the

project team. 2121Project Management/ Unit4/18/12


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8. Conflict management: Functional

conflict is encouraged & managed bythe project team for beneficial results.

9. Interdependence: The project team

members are highly interdependent &interface with each other.

10.Trust: There is high level of trust &

cooperation among the team members.11.Change orientation: The projectmanager is concerned with creating &managing change.



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Effective ProjectTeamsvClear Sense of Mission

vProductive Interdependency

vCohesivenessvTrust

vEnthusiasm

vResults Orientation


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Stages in Group

Development1. Forming members becomeacquainted

2. Storming conflict begins3. Norming members reach

agreement

4. Performing members work

together

5. Adjourning grou disbands


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Stages

1. Forming

2. Storming3. Norming

4. PerformingConveneAdjourn

Inclusion

Contr

olCooperation

Prod

uctiv

ity

Productive

Organized Infighting

Testing

Quiet PoliteGuardedImpersonalBusiness-likeHigh Morale

Establish proceduresDevelop team skills

Confront issuesRebuild morale

Conflict over controlConfrontational

Alienation Personalagendas Low morale

Trust FlexibleSupportiveConfidentEfficient HighMorale


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Barriers to the project teamdevelopment

1.Differing outlook, priorities &interest: The professionaloutlooks & priorities of team

members may differ from theproject objectives & priorities.

2.Unclear project objectives:

Power struggles & conflictsbetween team members occurwhen there is lacking of clear

defined project objectives. 2727Project Management/ Unit4/18/12


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3. Lack of team membercommitment: Due to the lack of teammembers commitment, projectactivities can not be effectivelyperformed. The sources of poor

commitment among team membersmay be:

q. Feeling of job insecurity in the project.

q. Interpersonal conflict within the team.q. Unclear reward & punishment policy.

q. Lack of professional interests of the

team members. 2828Project Management/ Unit4/18/12


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4. Lack of top management support:Lack of top management supportresults in team member poor level ofenthusiasm & poor commitment to theproject. The top management may not

provide adequate attention to createright project environment.

5. Communication problems: Poor

communication system also adverselyaffects for the project teamdevelopment. There should becontinuous & regular flow ofcommunication amon the ro ect2929Project Management/ Unit4/18/12


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6. Poor selection of team members: Theappropriate project team can not be

developed if the project manager may notgive adequate attention in the selection ofteam members. Poor selection of teammembers results in low motivation, conflict &lack of motivation.

7. Dynamic & complex projectenvironment: It is very difficult to work

project activities in the dynamic & complexproject environment. Due to the changes inthe internal & external environment, theproject activities are highly affected & it is

difficult to make adjustment over suchProject Management/ Unit 30304/18/12


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Factors Affecting ProjectTeam Building

1. Project culture: The project managershould set team norm & behaviors tobuild project team. He should createconducive environment in the projectfor effective teamwork.

2. Clear sense of direction: Everymember of the team should know why

he is in the team. There should be noconfusion about any aspect of theproject. The objective & outcomes

should be made clear. 3131Project Management/ Unit4/18/12


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7. Development: Personal growth &development of team members shouldbe encouraged. Training &development opportunities should bemade available to the team.

8. Control: The team performanceshould be controlled. Actualperformance should be compared with

targets to find out the deviations.Corrective actions should be takenover such deviations. Goodperformance should be rewarded.

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Project ImplementationProject implementation is vital phase of

project which helps to convert projectplans into action.

Project implementation involves the

allocation of project tasks to projectteam within the project organization.

Project in paper does not yield any

results. Project plan has to be convertedinto action by adopting certainprocedures.

The project manager is responsible forProject Management/ Unit 35354/18/12


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Procedures for Project

Implementation

1. Preparing for project

implementation.The first step of project implementationis to establish the project office at

project site & arrangement of human &non-human resources.

.This is the preparation step of projectimplementation in which projectmanager tries to convert project planinto action.

.The following things should be

considered for the preparation for theProject Management/ Unit 36364/18/12


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a. Establishing the project office: The

project office should be established atthe project site. All physical & logisticfacilities needed in an office should beprovided.

b. Acquisition of human resources:The success of project activities largelydepends on the competency, efficiency

& skills of the project team. The projectmanager should manage & acquire thecapable & talent manpower in the

project. Project Management/ Unit 37374/18/12


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2. Engaging & Supervising

consultant

. Project extensively used consultantsfor specialized activities like

preparation & review of engineeringdesign, bidding documents, evaluationof bids, civil construction works on etc.

.The project manager has to preparethe guidelines to be followed in theappointment ofcapable & experiencedconsultants.



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Generally, selection of contractors is

based on:i. Tender documents( including

engineering design)

ii. Notice for call of tender bidsiii. Evaluation of tender bids & selection of

contractor.

iv. Contract agreement with the selectedcontractor.

. Contractors play a vital role in projectimplementation.


`


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4. Procurement of goods & services

. Projects allocate a major portion of

budget for the procurement of goods &services.

. Proper financial rules & regulations &guidelines must be followed inprocurement of goods & services.

. Delay in procurements results in delayin project implementation. Generally,

procurement can be made through:i. Direct purchase from the market.

ii. Calling tender which can be local,

national & global.Project Management/ Unit 42424/18/12


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5. Supervision of equipment

installation & civil works.The project consultants & technicalpersonnel are engaged in supervision& installation of machinery &equipments.

. Project consultants & technicalpersonnel should supervise the

construction of civil works..The supervision should be done on thebasis of international construction

standards.Project Management/ Unit 43434/18/12


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6.Receiving project budget.The financial resources arethe key elements for the

implementation of projectactivities.

. It can be acquired from theconcerned donors, sponsor,customers & parent

organization.Project Management/ Unit 44444/18/12


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7.Controlling cost

.Project investment should becontrolled in order to make itfeasible to operate within

budget.. Project manager should controlthe cost by using the standard

costing & budgetary controltechniques.

. Cost is major constraints in the

project. Project Management/ Unit 45454/18/12


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8.Adjusting project changes

. Project operates in a dynamicenvironment. Environmentalchange necessitates changes in

project functioning..The implication of such changeson cost, time & quality should be

carefully studied.



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9.Monitoring & control of

project.The project performance shouldbe measured, evaluated &

corrected during theimplementation phase of projectby effective monitoring &

controlling system.. It has to see whether the desiredend results have been

materialized within cost, time &Project Management/ Unit 47474/18/12


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10.Preparing project progress report

. Project requires periodic reporting ofprogress for feedback.

. All activities during implementationshould be documented & reported.

.The project progress reports should bedelivered on time to the projectparticipants & others.

.They should provide information aboutthe following issues of the project:



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qPhysical targets & achievementsqScheduling targets & achievements

qFinancial targets & achievements

qProblems encountered in projectimplementation.

qPossible solutions for solving the

problems.


The conflict environment in


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The conflict environment inproject

Conflict is the outcome ofbehavioral interactions. Wherethere are people, there is conflict.

Conflict is inevitable.It is the result ofmisunderstanding among

persons, groups & organizations.Perhaps there are noorganizations having no conflict.



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Conflict is an important element ofthe project environment. It is a way of

life in project management.Generally, project conflict arises outof mutual misunderstanding in

objectives, roles, values, interest orrelationships.

Conflicts are more common in

Nepalese organizations. They areviewed as harmful, destructive &unnecessary. Nepalese managers donot believe in the necessity of conflict

for im rovin or anizationalProject Management/ Unit 51514/18/12


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3 Objective differences Different


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3. Objective differences: Differentinterpretations of objectives causeconflict. Individuals in the same groupmay have different objectives to causeconflict. Priorities may also differ.

4. Structural change: Change in project

structure may cause conflict. Change &conflict go together.

5. Communication obstacles: It is a

major source of conflicts in project. Theconflict may create due to the lack ofclarity in information,

misunderstanding, incompleteProject Management/ Unit 53534/18/12

6 P lit l h Diff i


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6. Personality clashes: Differences invalues, attitudes, interest & personality

cause conflict. There is involvement ofdifferent personality of project membersthat may be different in terms of opinion,approaches or views. As a result,

personality clashes create conflict in theproject.

7. Project climate: Power struggle,

working condition, cooperativeenvironment, motivation, mutual relationetc are the major climate of the project.

If there is favorable organization climate,Project Management/ Unit 54544/18/12

Conflict Management in


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Conflict Management inProjectThere is no one best method formanaging conflicts effectively in project.The conflict resolution will have a majorimpact on the project & organizationalculture.It is certain that once the people are

working together, there is always

controversy, disagreement & oppositionamong team members.

The followings are the major procedure

of conflict management in the project.Project Management/ Unit 55554/18/12

A Conflict Reduction


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A.Conflict Reduction

. Conflict in the project can be minimized

through effective communicationsystem, equitable distribution ofresources, clear cut goals, improvedcoordination etc.

. Generally, conflicts can be reduced inthe project by:

. Better and improved coordination.

. Increased resource availability.. Goal clarity.

. Establishing priorities.Project Management/ Unit 56564/18/12

B Conflict Resolution:


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B. Conflict Resolution:

. The conflict in the project can be resolved byadopting following methods:

i. Withdrawal: The concerned party shouldwithdraw disputes & disagreement to createthe environment for the conflict todisappear.

ii. Negotiation: The conflicting party shouldnegotiate the areas of agreement & sortingout areas of disagreement to search a

solution.iii. Confrontation: It involves face to face

discussion & debate to find out amicablesolution. It usually brings integrative

solution. Project Management/ Unit 57574/18/12

When to apply withdrawal


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4/18/12 Project Management/ UnitTM 665: Project Planning & 5858

When to apply withdrawalMethod?

When you cant winTo gain timeTo unnerve your opponent

To preserve neutrality orreputationWhen you think the problem will

go awayWhen you win by delay

C i i


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Compromising

When both parties need to bewinnersWhen you cant win

When others are as strong as youareWhen you havent time to win

To maintain your relationship withyour opponentWhen you are not sure that you

are right

C f ti


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Confronting

When both parties can get at leastwhat they want, (and maybemore!)To reduce cost

To create a common power baseTo attack a common foeWhen there is enough time

When there is trustWhen you have confidence in theothers ability

iv Restructuring: The project structure


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iv. Restructuring: The project structure& process must be restructured toresolve conflict in the project. This

balances the authority-responsibilityrelationship in the project.

v. Forcing: One party imposed the

solution upon other to resolve conflict.It can be useful only if quick decisiveaction is of vital importance & requires

protection against others.vi.Mediation: This involves the thirdparty to bring the acceptable solutionto both the party in conflict.



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Forcing

When you are rightWhen a do-or-die situationexists

When you are strongerTo gain status or powerWhen the relationship is

unimportantWhen a quick decision must bemade

C Conflict stimulation:


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C. Conflict stimulation:

.The project manager stimulates

functional conflict & must increasesuch type of conflict to improve theperformance.

.The optimum level of conflict isessential in the project for the incrementof performance in the project.

.The project manager should give

proper emphasis for the stimulation ofconflict in the project so that theperformance of the project can be

enhanced. Project Management/ Unit 63634/18/12

Project Procurement


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Procurement means acquiring goodsand/or services from an outside source.

Project Procurement Management(PPM) includes the processes necessaryto purchase or acquire products,services, or results needed from outsidethe project teams.

It includes the contract managementand change control processes requiredto develop and administer contracts or

purchase orders issued by authorized

jManagement (PPM)?

Project Procurement


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4/18/12 Project Management/ Unit 6565Information Technology

Project ProcurementManagement Processes

Project procurement management:

Acquiring goods and services for a projectfrom outside the performing organization. Processes include:

Planning purchases and acquisitions:

Determining what to procure, when, andhow. Planning contracting: Describing

requirements for the products or services

desired from the procurement andidentifying potential sources or sellers(contractors, suppliers, or providers whoprovide goods and services to otherorganizations).

P j t P t


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4/18/12 Project Management/ Unit 6666Information Technology

Project ProcurementManagement Processes (contd)

Requesting seller responses: Obtaininginformation, quotes, bids, offers, or proposalsfrom sellers, as appropriate.

Selecting sellers: Choosing from amongpotential suppliers through a process ofevaluating potential sellers and negotiatingthe contract.

Administering the contract: Managing therelationship with the selected seller.

Closing the contract: Completing andsettling each contract, including resolving any

open items.

Project Risk


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Project RiskAssessmentRisk is the potential for unwantedhappenings. Every activity involvesrisks. If they happen, some risks willaffect the activity more than others.

Risk assessment helps to identify themand consider the likelihood of themhappening and their likely impact.

The risks can then be managed bychanging the project plans to ensurethe risks are minimized.



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Possible risks include:

Climatic Risk rainfall Human Risk labour strikes,

beneficiaries unwilling to try new

techniques, project staff leaving theorganization

Economic Risk crop prices being

unstable Political Risk government policies

Projects by other agencies notremaining on schedule.



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Internal risks are things that the projectteam can control or influence, such asthe performance of contractors, materialwastage etc.

External risks are things beyond the

control or influence of the project team,such as changes in the exchange rate,new government legislation, bad

weather etc. A risk management plan should

document the procedures that will beused to manage risk throughout the



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A risk is a probability that some

adverse circumstance will occurProject risks affect schedule orresources;

Product risks affect the quality orperformance of the software beingdeveloped;

Business risks affect theorganisation developing orprocuring the software.

4/18/12 7171Project Management/ Unit

Some Examples of


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Some Examples ofRisks

Risk Affects Description

Staff turnover Project Experienced staff will leave the project before it is finished.

Management change Project There will be a change of organisational management with

different priorities.

Hardware unavailability Project Hardware that is essential for the project will not be

delivered on schedule.

Requirements change Project andproduct

There will be a larger number of changes to therequirements than anticipated.

Specification delays Project and

product

Specifications of essential interfaces are not available on

schedule

Size underestimate Project and

product

The size of the system has been underestimated.

CASE tool under-

performance

Product CASE tools which support the project do not perform as

anticipated

Technology change Business The underlying technology on which the sys tem is built is

superseded by new technology.

Product competition Business A competitive product is marketed before the system is

completed.


The Risk Management


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The Risk ManagementProcessRisk identification

Identify project, product and businessrisks;

Risk analysis

Assess the likelihood andconsequences of these risks;

Risk planningDraw up plans to avoid or minimisethe effects of the risk;

Risk monitoringMonitor the risks throughout the

project;4/18/12 7373Project Management/ Unit

The Risk Management


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The Risk ManagementProcess

Risk avoidance

and contingency

plans

Risk planning

Prioritised risk

list

Risk analysis

List of potential

risks

Risk

identification

Risk

assessment

Risk

monitoring



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Project QualityManagementThe project manager has to ensurethat the final product meets thequality expectations of the

stakeholders. This is done by good:Quality planning identifyingwhat quality standards are relevant

to the project and determining howto meet them;



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Quality Assurance evaluating

overall project performance on aregular basis to provide confidencethat the project will satisfy the

relevant quality standards;Quality control quality standardsand identifying monitoring specific

project results to determine if theycomply with relevant ways toremove causes of poor

performanceProject Management/ Unit 76764/18/12

Key Questions


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Key Questions1. What is project organization? Explain

the functional project organizationwith structure, merits & demerits.

2. Describe the matrix projectorganizational structure with merits &demerits.

3. What is project team building?Describe the characteristics of project

team building.4. What are the major barriers of project

team development? Explain.



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6. Describe the factors affecting projectteam building.

7. What is project implementation?Explain the procedure of projectimplementation in brief.

8. Explain the conflict environment inproject.

9. What are the major causes that

creates conflict in the project?10.How the project manager can manage

conflict in the project?

Documents

Project Organization & Implementation