Boer, P. de, Brouwers, M.P., Koetzier, W. (2011). Basics of Financial Management, Noordhoff
Uitgevers, 2 Edition
Contents:
FPM Introduction
H2: Financial management
H5: Capital budgeting
H6: Working capital management
H11: Costs
H12: Costing
H14: Budgets and variance analysis
H3: Financial statements
H9: Financial statements analysis
H15: External reporting
H16: Financial statements
FPM Introduction
Hobday, M. (2000). The project-based organisation: An ideal form for managing complex
products and systems? Research Policy, 29(7), 871-893.
The project-based organisation (PBO) is ideally suited for managing:
- increasing product complexity
- fast changing markets
- cross-functional business expertise
- customer focused innovation
- market and technological uncertainty
CoPS = complex industrial products and systems.
- High-technology, business-to-business capital goods used to produce goods and services for
consumers and producers.
- Each individual CoPS is high cost and made up of many interconnected parts.
- Produced in projects or small batches
- High degree of direct user involvement
- non-routine tasks
The nature of the PBO
PBO : the project is the primary unit for production organisation, innovation and competition.
- the project is the primary business mechanism for coordinating and integrating all the main
business functions of the firm.
Project = any activity with a defined set of resources, goals and time limit.
- The project is a temporary organizational form -> PBO’s are flexible and reconfigurable.
Project managers (PM) = have very high status and direct control over business functions,
personnel and other resources.
PBOs organize their structures, strategies, and capabilities around the needs of projects, which
often cut across conventional industrial and firm boundaries.
- Not all firms within a project are necessarily PBOs
Four basic types of organizational structure for new product development (NPD):
1. Functional
2. Lightweight project structure
,3. Heavyweight project structure
4. Project-based
1 & 2: PM have no direct control over resources
3 & 4: PM have direct control over resources
Three types of matrix:
1. Functional matrix
- PM: coordinating resources, monitoring progress, reporting to functional managers.
2. Balanced matrix
- responsibilities and authority for each project are shared between functional an PMs
3. Product or project matrix
- PM: authority over personnel, finance and other resources.
Project-led organisation = the needs of projects outweigh the functional influence on decision-
making and representation to senior management, but some coordination across project lines
occurs.
Project-based organisation = there is no formal functional coordination across project lines, the
entire organisation is dedicated to one or more CoPS projects and business processes are
coordinated within the projects.
Lundin, R. A., & Söderholm, A. (1995). A theory of the temporary organization. Scandinavian
Journal of Management, 11 (4), 437 – 455.
Temporary organization: created to fulfill a special purpose that contains change.
1. Time: time horizons and time limits.
,a) Linear: each new development has its roots in the immediate past, so that in one sense new
forms of organization are superior to old ones.
b) Cyclical: phenomena are repeated
Problems with time: uncertainty, conflict resolution and the allocation of scarce time resources.
- Time is scarce, linear and valuable.
2. Task: one or very limited number of defined tasks.
- focuses on action.
- the creation of a temporary organization is motivated by a task that must be accomplished.
a) Unique task: created for one single and specific situation that will not occur again (TO)
b) Repetitive task: the task will be repeated in the future.
3. Team: the team forms around the task at hand and the time available.
- a TO needs to be designed by and around people.
- Teams in TO:
1. Formed around the task or around some aspect of it.
2. Participation is time-limited
3. Dependent on other organized contexts besides the current TO
4. Transition
- Action orientation: something has to be transformed or changed as a consequence of the
existence of the temporary organization.
Transition:
1. Change between before and after.
, 2. Change among project participants
Permanent organization:
1. Goals: more naturally defined by goals rather than tasks.
2. Survival: more naturally defined by survival rather than time
3. Working organization: more naturally defined by working organization rather than team.
4. Production processes & continual development: rather than transaction
Phases in temporary organizations:
- Time is linear: an TO has a beginning, middle and end.
- The lifecycle of projects: concept, development, implementation and termination.
Four phases in the life cycle of an TO:
1. Action-based entrepreneurialism -> unique tasks
- mapping by rhetoric: mapping relevant experiences and environments, a framework of
convincing arguments in favor of the task and the ensuing TO.
- Rhetoric can enhance the meaning of the talk -> legitimacy and support of participants and
influencers.
2. Fragmentation (versnippering) for commitment-building
Two functions of fragmentation:
a) Delimits the scope, simplifies the task and provides a time horizon to facilitate the handling of
the task.
b) mechanism for securing commitment among potential members of the TO.
1. Decoupling by bracketing
- Time bracketing = a TO is decoupled from other past, contemporary, or even future sequences
of activities to be fixed in time. (the TO is given a place in history and its own identity).
2. Task definition by partitioning
- Partitioning: a process of inclusion and exclusion (give a task a narrow definition)
3. Planned isolation: the execution (uitvoeren) phase in the life of the TO.
1. Planning
- creating scope for independent action
- plans become common knowledge
- plans provide space for action
2. Guarding
- contact with others is governed by a general implementation plan, and other influences are
seen as disturbances that need to be eliminated.
- Guarding: a mechanism that participants use to improve their chances of acting according to
the plans and initial intensions.
Uitgevers, 2 Edition
Contents:
FPM Introduction
H2: Financial management
H5: Capital budgeting
H6: Working capital management
H11: Costs
H12: Costing
H14: Budgets and variance analysis
H3: Financial statements
H9: Financial statements analysis
H15: External reporting
H16: Financial statements
FPM Introduction
Hobday, M. (2000). The project-based organisation: An ideal form for managing complex
products and systems? Research Policy, 29(7), 871-893.
The project-based organisation (PBO) is ideally suited for managing:
- increasing product complexity
- fast changing markets
- cross-functional business expertise
- customer focused innovation
- market and technological uncertainty
CoPS = complex industrial products and systems.
- High-technology, business-to-business capital goods used to produce goods and services for
consumers and producers.
- Each individual CoPS is high cost and made up of many interconnected parts.
- Produced in projects or small batches
- High degree of direct user involvement
- non-routine tasks
The nature of the PBO
PBO : the project is the primary unit for production organisation, innovation and competition.
- the project is the primary business mechanism for coordinating and integrating all the main
business functions of the firm.
Project = any activity with a defined set of resources, goals and time limit.
- The project is a temporary organizational form -> PBO’s are flexible and reconfigurable.
Project managers (PM) = have very high status and direct control over business functions,
personnel and other resources.
PBOs organize their structures, strategies, and capabilities around the needs of projects, which
often cut across conventional industrial and firm boundaries.
- Not all firms within a project are necessarily PBOs
Four basic types of organizational structure for new product development (NPD):
1. Functional
2. Lightweight project structure
,3. Heavyweight project structure
4. Project-based
1 & 2: PM have no direct control over resources
3 & 4: PM have direct control over resources
Three types of matrix:
1. Functional matrix
- PM: coordinating resources, monitoring progress, reporting to functional managers.
2. Balanced matrix
- responsibilities and authority for each project are shared between functional an PMs
3. Product or project matrix
- PM: authority over personnel, finance and other resources.
Project-led organisation = the needs of projects outweigh the functional influence on decision-
making and representation to senior management, but some coordination across project lines
occurs.
Project-based organisation = there is no formal functional coordination across project lines, the
entire organisation is dedicated to one or more CoPS projects and business processes are
coordinated within the projects.
Lundin, R. A., & Söderholm, A. (1995). A theory of the temporary organization. Scandinavian
Journal of Management, 11 (4), 437 – 455.
Temporary organization: created to fulfill a special purpose that contains change.
1. Time: time horizons and time limits.
,a) Linear: each new development has its roots in the immediate past, so that in one sense new
forms of organization are superior to old ones.
b) Cyclical: phenomena are repeated
Problems with time: uncertainty, conflict resolution and the allocation of scarce time resources.
- Time is scarce, linear and valuable.
2. Task: one or very limited number of defined tasks.
- focuses on action.
- the creation of a temporary organization is motivated by a task that must be accomplished.
a) Unique task: created for one single and specific situation that will not occur again (TO)
b) Repetitive task: the task will be repeated in the future.
3. Team: the team forms around the task at hand and the time available.
- a TO needs to be designed by and around people.
- Teams in TO:
1. Formed around the task or around some aspect of it.
2. Participation is time-limited
3. Dependent on other organized contexts besides the current TO
4. Transition
- Action orientation: something has to be transformed or changed as a consequence of the
existence of the temporary organization.
Transition:
1. Change between before and after.
, 2. Change among project participants
Permanent organization:
1. Goals: more naturally defined by goals rather than tasks.
2. Survival: more naturally defined by survival rather than time
3. Working organization: more naturally defined by working organization rather than team.
4. Production processes & continual development: rather than transaction
Phases in temporary organizations:
- Time is linear: an TO has a beginning, middle and end.
- The lifecycle of projects: concept, development, implementation and termination.
Four phases in the life cycle of an TO:
1. Action-based entrepreneurialism -> unique tasks
- mapping by rhetoric: mapping relevant experiences and environments, a framework of
convincing arguments in favor of the task and the ensuing TO.
- Rhetoric can enhance the meaning of the talk -> legitimacy and support of participants and
influencers.
2. Fragmentation (versnippering) for commitment-building
Two functions of fragmentation:
a) Delimits the scope, simplifies the task and provides a time horizon to facilitate the handling of
the task.
b) mechanism for securing commitment among potential members of the TO.
1. Decoupling by bracketing
- Time bracketing = a TO is decoupled from other past, contemporary, or even future sequences
of activities to be fixed in time. (the TO is given a place in history and its own identity).
2. Task definition by partitioning
- Partitioning: a process of inclusion and exclusion (give a task a narrow definition)
3. Planned isolation: the execution (uitvoeren) phase in the life of the TO.
1. Planning
- creating scope for independent action
- plans become common knowledge
- plans provide space for action
2. Guarding
- contact with others is governed by a general implementation plan, and other influences are
seen as disturbances that need to be eliminated.
- Guarding: a mechanism that participants use to improve their chances of acting according to
the plans and initial intensions.
