Chapter 1 Flashcards
The role of management
To plan, organise, and integrate resources and tasks to achieve goals
The five functions of managers (the activities of managers)
1) Planning –> setting a goal and establishing the means for achieving it consistently
2) Organising –> arranging for the work to be done, including hiring/training/gathering people into a team, acquiring and allocating materials/capital/resources, creating organisational structure through policies/procedures
3) Leadership –> directing and motivating people to attain the goal
4) Control –> monitoring work performance with respect to the goal and taking necessary action whenever work deviates from the goal
5) Change –> assessing how well each of the functions is doing and whether the functions or the goals need to be changed
What is Project Management?
Project Management is a systems approach to management
What is a system?
A system is a collection of interrelated components or elements that in combination serve a purpose and work toward a goal
What is a project?
Can be thought of as a system
It is a collection of elements—work tasks, resources, and stakeholders (individuals, teams, organisations)—aimed at achieving a goal
What is the focus of the systems approach?
The focus of the systems approach is to optimise the overall system (not its individual elements) so as to achieve the goal
7 key features of Project Management
1) A single person (project manager) heads the project organisation and works independently of the normal chain of command
2) Project requires a unique variety of skills and resources; thus project work is typically performed by people from different functional areas or outside contractors
3) Project Manager is responsible for integrating the work done by people from different functional areas
4) Project Manager works with functional managers/contractors. They are responsible for the individual work tasks and personnel from the different functional areas
5) They may be two chains of command, one functional manager and one project manager. Project managers are responsible for delivering particular products/services on time and in budget. Functional managers are responsible for project workers and resources from their department.
People working in a project report to both managers, which may cause conflict.
6) Decision-making, accountability, outcomes, and rewards are shared between the project manager and functional managers.
7) The project organisation is temporary, but the functional units which are formed are permanent. Once a project ends, the project organisation is disbanded and people return to their functional units.
What is the project organisation?
The project organisation reflects the cross-functional, goal-oriented, temporary nature of the project
Where is project management appropriate? (what is the general rule of thumb?)
The more unfamiliar/unique the undertaking, the greater the need for project management
The more numerous, interdisciplinary, and interdependent the activities in the undertaking, the greater the need for project management
5 criterion for when Project Management is appropriate/needed
1) Unfamiliarity –> involved doing different things/doing same things differently
2) Magnitude of Effort –> requires substantially more resources (people, capital, equipment) than normal
3) Dynamic environment –> when industry involves high innovation/competition, rapid product change. Need to deal with emerging threats and opportunities.
4) Multifunctional effort –> job requires lateral relationships between areas to get the job done. Need to coordinate the efforts of internal functional areas and outside contractors
5) Reputation of the organisation –> failure to satisfactorily complete a project results in financial ruin, loss of market share, damaged reputation, or loss of future contracts
Where is project management NOT appropriate?
Stable the environment
Less unique and more standardised the end-item
The lower the stake in the result of the success of the project
5 forms of project-related management
1) Basic project management
2) Program management
3) New venture management
4) Product management
5) Ad hoc committees and task forces
Basic Project Management
Project manager has authority to plan, direct, organise, and control project
Project and functional manager are on the same organisational level
Implemented in two forms:
1) Pure project –> complete, self-contained organisation
2) Matrix –> project is created from borrowed resources (from functional units)
What is the most common project approach?
Basic project management
Program management
The management of multiple projects with the same goal
Example:
A housing project for 5000 people in the Western Cape over the next 5 years would be a program. Within that environment, you might have one project that builds 100 houses in Kayamandi. It forms part of the bigger drive towards developing more housing for people in 5 years. That is the program and there might be several projects that contribute to the overall program.
