MODULE TITLE:
PROJECT MANAGEMENT CONTEXT (MAPM 505) MODULE No. 04
ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
SCHOOL OF COMMERCE
MA- PROJECT MANAGEMENT PROGRAM
JANUARY, 2015
ADDIS ABABA, ETHIOPIA
1
,MODULE INTRODUCTION
People in organizations are regularly confronted with new situations that they have no answer to:
a customer wants something new, the government introduces new legislation or the competition
brings something new on to the market. Other causes lie within the organization itself. Someone
senses a new opportunity, a new product or service is developed, or a new policy has to be
implemented.
Rapid changes and increasing globalization are making unprecedented demands on managers. As
a result, they need efficient tools to tap the knowledge and motivation of their staff as well as to
reach their corporate goals. This becomes particularly necessary and difficult in the case of
innovative tasks aiming to open up new markets, create new products and access new expertise.
Project management represents a powerful tool for tackling such assignments. It is therefore used
widely and is recognized as a valid object of scientific study. Projects bring together resources,
skills, technology and ideas to deliver business benefits or to achieve business objectives. Good
project management helps to ensure that these benefits or objectives are achieved within budget,
within time and to the required quality.
Regardless of time, place, or culture, the dominant characteristic of a project is that it is a goal to
be met within the triple expectations (or constraints) of time, cost, and performance. The goal is
always to achieve some beneficial change. Every project is an endeavor. Every project is an
investment. Every project will end. Some projects will end when the goal is achieved, and others
when the time or cost is disproportionate to the value. Some projects will also be cancelled. In all
cases, the project manager serves as the focal point of responsibility for the project's time, cost,
and performance. Success requires that the project manager serves as the focal point of effective,
timely, and accurate communication. To do this well, the project manager must master a new
vocabulary and must use this vocabulary consistently. Words are vehicles of meaning. Consistent
use of a common vocabulary is essential to successful communication and, therefore, successful
projects.
Projects and programs are characterized by their temporary nature, which makes it virtually
impossible to fall back on existing tools. Unique assignments, such as improving customer
orientation, the development and introduction of new legislations, increasing market share,
obtaining an ISO certificate, introducing a new computer system, cannot be carried out using
previously determined standard procedures. They are also usually too important to tackle using
an improvised approach. These assignments, regarded by those concerned in the organization as
important, contain many new elements, making it impossible for people to fall back on previous
experience and methods.
Even if you do not direct the project, this module informs you about the "big picture" of project
management, the vocabulary, and the techniques. The aim of this module is to empower you with
a practical understanding of basic project management techniques; and to enable you to use this
book as a guide for briefings and training, to distribute to others who will work on the project,
and to revise and add to the checklists and documentation herein to solve your particular
problems.
The material is prepared as a ready reference to help people in any industry or profession plan
and manage projects with limited budgets, time demands, deadlines, and resource constraints.
2
, CHAPTER ONE
The aim of this material is to simplify the application of project management techniques through
a systematic method with easy-to-use checklists and tips for anyone who must get complex work
done on time, within budget, and according to specifications (the golden rule of project
management). The module tries to give you a solid working knowledge of an extremely powerful
yet simple-to-use tool that is guaranteed to improve your effectiveness as a manager of both
projects and people. After all, your success as a project manager will be measured by your ability
to get the job done on time, within budget, and according to specifications.
As organizations continue to move toward "project-based" management to get more done with
less resources, and as the demand for effective project managers continues to grow, more and
more individuals find themselves with the "opportunity" to manage projects for the first time.
Module Objectives
At the end of the module learners will be able to:
Use tutorial and reference resource easily
To realize the key concepts and fundamentals behind the project management techniques.
If these are understood, they can be applied effectively independent of the environment,
or industry.
Reduce the "on-the-job" learning curve by sharing the traits of successful projects and
"lessons learned" from less-than-successful projects.
Review the skills and qualities of effective project managers.
This module examines the topic of project management in some detail by presenting it as a
management concept with a customer orientation. The module is subdivided into nine main
chapters:
Project and Project Management- Overview
Project Management Growth: Concepts and Definitions
Individual and Team Issues
Project Management Organizational Structures
Management Functions in Project Management
Time Management and Stress
Project Conflicts Management
The Variables for Success
Working with Executives
We have tried to make the module interactive and user-friendly. Each chapter includes learning
objectives, activities, self-assessment questions and answer guides. We hope the reader will find
this module useful and interesting.
3
, PROJECT AND PROJECT MANAGEMENT - AN OVERVIEW
1.1. INTRODUCTION
A project is a one-off process with a single definable end-result or product. Some examples
include building a house, introducing new human resources practices, and developing new IT
systems. It is difficult to provide an example of a ‘typical’ project because project management
techniques are now applied so widely that listing their possible applications would take a volume
as large as this module! In addition, new uses are being found regularly. One reason for this
growth in popularity is that project management is a very practical tool when used for change
management purposes. The ever-increasing rate of change in the environments in which
organizations operate requires them to transform themselves regularly if they are to survive and
have the possibility of prosperity. Hence there will be continued growth of interest in project
management.
Much of project management is concerned with planning and controlling the three key variables
associated with projects. These variables are time, cost, and quality. They are interrelated and a
change in any single variable frequently has a significant impact on the others.
Since project management is concerned with managing change, within the constraints of the
three key variables of time, cost and quality, organizational structures for managing projects can
be expected to differ from traditional organizational structures, which were developed to help
managers manage in more stable environments. Organization structures for managing projects
are examined and contrasted with more traditional management organization structures. Projects
have a finite life cycle, i.e. definite starting and completion points, and it follows that any project
team or organization structure set up to manage a project will have a finite life cycle.
Project management is a truly unique international and multidisciplinary profession. This
characteristic has led to the development of international generic standards and is managed by a
new kind of professional who operates in a different way from traditional functional managers.
After studying this chapter, you should be able to define those main differences and understand
their advantages and disadvantages compared with traditional approaches.
This chapter also gives a brief review of how project management evolved from more traditional
4
PROJECT MANAGEMENT CONTEXT (MAPM 505) MODULE No. 04
ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
SCHOOL OF COMMERCE
MA- PROJECT MANAGEMENT PROGRAM
JANUARY, 2015
ADDIS ABABA, ETHIOPIA
1
,MODULE INTRODUCTION
People in organizations are regularly confronted with new situations that they have no answer to:
a customer wants something new, the government introduces new legislation or the competition
brings something new on to the market. Other causes lie within the organization itself. Someone
senses a new opportunity, a new product or service is developed, or a new policy has to be
implemented.
Rapid changes and increasing globalization are making unprecedented demands on managers. As
a result, they need efficient tools to tap the knowledge and motivation of their staff as well as to
reach their corporate goals. This becomes particularly necessary and difficult in the case of
innovative tasks aiming to open up new markets, create new products and access new expertise.
Project management represents a powerful tool for tackling such assignments. It is therefore used
widely and is recognized as a valid object of scientific study. Projects bring together resources,
skills, technology and ideas to deliver business benefits or to achieve business objectives. Good
project management helps to ensure that these benefits or objectives are achieved within budget,
within time and to the required quality.
Regardless of time, place, or culture, the dominant characteristic of a project is that it is a goal to
be met within the triple expectations (or constraints) of time, cost, and performance. The goal is
always to achieve some beneficial change. Every project is an endeavor. Every project is an
investment. Every project will end. Some projects will end when the goal is achieved, and others
when the time or cost is disproportionate to the value. Some projects will also be cancelled. In all
cases, the project manager serves as the focal point of responsibility for the project's time, cost,
and performance. Success requires that the project manager serves as the focal point of effective,
timely, and accurate communication. To do this well, the project manager must master a new
vocabulary and must use this vocabulary consistently. Words are vehicles of meaning. Consistent
use of a common vocabulary is essential to successful communication and, therefore, successful
projects.
Projects and programs are characterized by their temporary nature, which makes it virtually
impossible to fall back on existing tools. Unique assignments, such as improving customer
orientation, the development and introduction of new legislations, increasing market share,
obtaining an ISO certificate, introducing a new computer system, cannot be carried out using
previously determined standard procedures. They are also usually too important to tackle using
an improvised approach. These assignments, regarded by those concerned in the organization as
important, contain many new elements, making it impossible for people to fall back on previous
experience and methods.
Even if you do not direct the project, this module informs you about the "big picture" of project
management, the vocabulary, and the techniques. The aim of this module is to empower you with
a practical understanding of basic project management techniques; and to enable you to use this
book as a guide for briefings and training, to distribute to others who will work on the project,
and to revise and add to the checklists and documentation herein to solve your particular
problems.
The material is prepared as a ready reference to help people in any industry or profession plan
and manage projects with limited budgets, time demands, deadlines, and resource constraints.
2
, CHAPTER ONE
The aim of this material is to simplify the application of project management techniques through
a systematic method with easy-to-use checklists and tips for anyone who must get complex work
done on time, within budget, and according to specifications (the golden rule of project
management). The module tries to give you a solid working knowledge of an extremely powerful
yet simple-to-use tool that is guaranteed to improve your effectiveness as a manager of both
projects and people. After all, your success as a project manager will be measured by your ability
to get the job done on time, within budget, and according to specifications.
As organizations continue to move toward "project-based" management to get more done with
less resources, and as the demand for effective project managers continues to grow, more and
more individuals find themselves with the "opportunity" to manage projects for the first time.
Module Objectives
At the end of the module learners will be able to:
Use tutorial and reference resource easily
To realize the key concepts and fundamentals behind the project management techniques.
If these are understood, they can be applied effectively independent of the environment,
or industry.
Reduce the "on-the-job" learning curve by sharing the traits of successful projects and
"lessons learned" from less-than-successful projects.
Review the skills and qualities of effective project managers.
This module examines the topic of project management in some detail by presenting it as a
management concept with a customer orientation. The module is subdivided into nine main
chapters:
Project and Project Management- Overview
Project Management Growth: Concepts and Definitions
Individual and Team Issues
Project Management Organizational Structures
Management Functions in Project Management
Time Management and Stress
Project Conflicts Management
The Variables for Success
Working with Executives
We have tried to make the module interactive and user-friendly. Each chapter includes learning
objectives, activities, self-assessment questions and answer guides. We hope the reader will find
this module useful and interesting.
3
, PROJECT AND PROJECT MANAGEMENT - AN OVERVIEW
1.1. INTRODUCTION
A project is a one-off process with a single definable end-result or product. Some examples
include building a house, introducing new human resources practices, and developing new IT
systems. It is difficult to provide an example of a ‘typical’ project because project management
techniques are now applied so widely that listing their possible applications would take a volume
as large as this module! In addition, new uses are being found regularly. One reason for this
growth in popularity is that project management is a very practical tool when used for change
management purposes. The ever-increasing rate of change in the environments in which
organizations operate requires them to transform themselves regularly if they are to survive and
have the possibility of prosperity. Hence there will be continued growth of interest in project
management.
Much of project management is concerned with planning and controlling the three key variables
associated with projects. These variables are time, cost, and quality. They are interrelated and a
change in any single variable frequently has a significant impact on the others.
Since project management is concerned with managing change, within the constraints of the
three key variables of time, cost and quality, organizational structures for managing projects can
be expected to differ from traditional organizational structures, which were developed to help
managers manage in more stable environments. Organization structures for managing projects
are examined and contrasted with more traditional management organization structures. Projects
have a finite life cycle, i.e. definite starting and completion points, and it follows that any project
team or organization structure set up to manage a project will have a finite life cycle.
Project management is a truly unique international and multidisciplinary profession. This
characteristic has led to the development of international generic standards and is managed by a
new kind of professional who operates in a different way from traditional functional managers.
After studying this chapter, you should be able to define those main differences and understand
their advantages and disadvantages compared with traditional approaches.
This chapter also gives a brief review of how project management evolved from more traditional
4
