5. Organizing Human Resources ................................................................................ 71-84
5.5 Comparison of Functional, Matrix and Project Organization
specialists who are capable to function independently without any support. The project manager should be a very senior person to justify delegation of so much authority by the company.
Besides it may help to project manager to spend more time on administrative work besides main core activities. Therefore either total projectization or task force arrangement appear to be best arrangement for executing most projects, as project objectives get primary attention and project manager is delegated authority commensurate with the responsibility he has to undertake.
Fig. 5.7 Totally projectised organization
Advantages of project organization form:
• It provides complete line authority over the project through a single project authority.
• Direct involvement of personnel helps to identify unprofitable project lines, develop strong communication channels and rapid reaction time.
• Expertise on a given project without sharing of key project personnel.
• Loyalty to the project with better morale due to identification.
• Flexibility in determining time, cost, and performance trade-offs.
• Interface management becomes easier as unit size is decreased allowing more for time for decision-making.
Disadvantages of project organization form:
• It is a costly preposition for a multi-product company due to duplication of effort, facilities and personnel
• Tendency to retain personnel on a project long after they are needed.
• Without strong functional groups technology suffers because policy of improvements for new programmes does not exists
• Control of functional specialists requires top-level co-ordination.
• Lack of opportunities for technical interchange between projects.
• Lack of career opportunities for project personnel.
Fig. 5.8 A Comparison of organization structure
Confining to only specific fragments of the work by functional people may lead to a grave impact on the project as well as the organization. The decision making process is slowed down by practice of passing the buck and waiting for replies, which may jeopardize the whole project.
The linking effect in functional structures often delays the important project decisions from being made or prevents such crucial decision to arrive at that ultimately hampers the total project. The lack flexibility and responsiveness that is mandatory in a dynamic project environment often leads to sluggish performance of tasks.
Authority, Responsibility and Accountability for Project Manager
Depending on the type of the organization the authority and accountability of the project manager varies. The table below shows the relationship between authority and accountability.
Table 5.1 Relationshiop between authority and accountability
Sl.No. Type of Organization Authority Accountability
1. Project manager as staff No accountability
2. Consultant as project No accountability
manager
3. Project management as No accountability
staff function
4. Matrix organization Can be held accountable
for time and cost not for technical aspects
5. Task force Can be held account for
time, cost and for technical aspects 6. Totally projectized organization Is accountable for all
aspects No decisions; only collates
and communicates No decisions; makes recommendations Decides overall schedules but does not direct staff Decides on what is to be done at what cost
Decides on what, when and how is to be done and at what cost
Decides everything like chief executive of the company
Functional Organization Matrix Organization Project Organization
Relative Influence
No Coordinator Full Time Coordinator Separate Teams Weak
matrix
Strong matrix
Dual Influence Project Influence in decision-making
stated that a special breed of manager is required who have more than just a basic degree in engineering or management. The project manager first projects at the zero date what has to come in his way till completion, continuously updates the network to project the current scenario, reviews the current scenario, takes corrective actions and then again makes fresh projections.
There could be several project managers in a project and their responsibility may very.
But then each of them is only discharging certain limited role and responsibility, which have been delegated to them; they are not discharging the total function of project management.
The figure shown below shows the duties of project manager.
Planning: It is a critical stage for any project and it includes more than just planning and establishment of the authority relationships that must exist for the project duration. It requires anticipation of anything unforeseen and planning ahead because project environment is an ever-changing one. During planning phase project team develops a responsibility matrix, often referred as LRC-Linear Responsibility Chart. Not proper handling may reflect poorly on the project manger even if it not the manger’s fault. Responsibility matrix contains element such as:
• General Management Responsibility
• Operation Management Responsibility
• Specialized Responsibility
The following activities may be tested in responsibility matrix:
• Raw Material Procurement • Prepare Bill of Materials
• Contact Vendors • Visit Vendors
• Prepare Purchase Orders • Authorize Expenditures
• Place Purchase Orders • Inspect Raw Materials
• Quality Control Testing • Update Inventory File
• Prepare Inventory Report • Withdraw Materials
Organizing and Administering: The project manager often has to perform many administrative tasks with little support from real administrators (line managers).
Directing and Controlling: Project manager is required to direct the project resources and monitor resource allocation. Directing is the implementing and carrying out (through others) of those approved plans that are necessary to achieve or exceed objectives. Controlling is a three-step process of measuring progress towards an objective, evaluating what remains to be done and taking necessary corrective action.
Controlling involves steps of measuring, evaluating, correcting Directing involves steps like:
• Staffing: To see that a qualified person is selected for each position.
• Delegating: To delegate and then supervise work on the project. Delegating is assigning some work/responsibility/authority so that others can make maximum utilization of their abilities and then supervise work on project.
• Motivating: To encourage the project team in presence of normal pressures of work as well as political realities. Project manager is required to motivate the project team in the presence of normal pressures of work as well as political realities and pressures.
• Supervising: To supervise the work on project site and on going work continuously.
• Interfacing and Co-ordination: Project manager is required to mange the relationship within and outside the organization through paper interfacing and co-ordination amongst team numbers. To see that the activities are carried out in relation to their importance and with minimum of conflict.
• Performing: Project manager is required to execute direct tasks, which are within the capacity and competence of a manger with little help of subordinates.
• Training: Project manager is required to train members of the project team in applying project management method and tools in which they are involved.
• Counseling: Project manager is required to act as a counselor to the management on specific technical or business issues as well as to the staff on project and even individual issues.
• Mediating: Project manager is required to remove conflicts over resources and schedules.
• Expediting: Project manager is required to oversee and mange the total project development and implementation.
5.7 METHODS AND TECHNIQUES FOR DEVELOPING PROJECT MANAGERS
The complicated task of managing a project requires training of the various skills and techniques of project management. The short term training programmes are good to impart skills in preparation of network, development on performance budget, design of systems, performance measurement, project reviews, etc but they would not prepare a man to accept uncertainties without a grudge. To continuously project things he should be required to manage and above all manage a project through installation of self-controlling system.
• Experiential Training/on the Job
• Working with the experienced professional leader
• Working with project team member
• Assigning a variety of project management responsibilities, consequently
• Job rotation
• Formal on the job training
• Supporting multifunctional activities
• Customer liaison activities
• Conceptional Training/ Schooling
• Courses / seminars / workshops
• Simulation /games / cases
• Group exercises
• Hands on exercises in using project management techniques
• Professional meetings
• Conventions, symposium
• Readings, books, trade journals, professional magazines
• Organizational Development
• Formally established, and project management functions
• Proper project organization
• Proper support systems
• Project charter
• Project management directives, policies and procedures
QUESTIONS
1. What is delegation? What, when and how to delegate? Explain.
2. How important is documenting project authority? Explain.
3. When motivation helps in project management? Explain.
4. Discuss the types of organization structures used in practice.
5. Explain the relationship between authority, responsibility and accountability.
6. Explain the duties of a project manager.
7. What are the techniques used for training project manager.
6.1 WORK SCHEDULE
To ensure proper and smooth working of a project it should be scheduled. The work schedule should cover initial operation as well as installation period. To avoid losses arising from idle capacity and deterioration of stocks of material, schedule should be drawn up with care and realism so that the commissioning of plant is reasonably synchronized with the availability of the basic input. The purpose of work schedule is to:
• Anticipate problems likely to arise during installation phase and suggest possible means for coping with them.
• To establish the phasing of investments taking into account the availability of finances.
• To develop a plan of operations covering the initial period (running in period) Any discrepancy in schedule may result in lack of input like raw material and power in adequate quality when plant is ready for commissioning or plant is not ready when the raw material arrives. Preparing a schedule requires consideration of following: type of schedule, identification of measurable milestones, estimation of task durations, defining priorities, determining task relationships, identification of lag between related tasks, define of the critical path, documenting of the assumptions, identification of the risks and review of the results.
Since it is the responsibility of project authorities to ensure implementation they may assume schedule to suit themselves. But since the project authorities stake in any industrial unit may be only 10% of the investment, it is the financial institutions that will need to be convinced about the reasonableness of the estimate. Past experience may not help in changed environment, so schedule has to be modified to reflect the strategy for indigenization and Indian industrial conditions including productivity.
Milestones pertaining to a point in time and should be used as management checkpoints to measure accomplishment of the schedule. The number of tasks and milestones are to be identified to relate to what is known about the product, the level of risk, and the level of detail required of management. The result is a listing of tasks and milestones required to deliver the product. The completion of key actions is denoted by milestones, which are unique to each project. A completion has no duration,. for example, deliverables often are represented as milestones, while the effort to produce the deliverable is referred to as a “task”.
6.2 BAR CHART
The schedule is likely to be in form of bar–chart because the details included are so few and so broad-based that developments of network would not add to any accuracy. Besides this form of
P ROJECT D IRECTION , C O - ORDINATION AND C ONTROL
6
presentation suits financial planning and economic evaluation. Contingency provision may not be included to keep schedule tight. Overall Schedule tries to adhere to the overall project completion target set by feasibility schedule. Also since this schedule service as mother document for subsequent detailed schedule utmost attention is given to make target realizable by incorporating time allowance at key milestones. Generally inbuilt allowance of 20% in time schedule is used, as in case of cost estimate for proper correspondence between them.
6.3 MANAGEMENT EFFORTS SCHEDULE
Usually project faces much of its problems at the start and takes it time to stabilize. Therefore till the project acquires its stability, external intervention is required for its survival. The management’s external intervention in usually in three forms
1. Direction 2. Co-ordination 3. Control
All these activities usually force a result rather than depending on self-regulating mechanism.
Fig. 6.1 Management efforts schedule
The project can be divided into three periods according to the management efforts schedule which are listed below:
1. Initiation/Start-up period: requires lot of direction and co-ordination with little or no control.
2. Production period: once the project stabilizes the need of direction reduces, with co-ordination and control gaining predominance over direction.
3. Closing period: In this period the need for control reduces, with virtually no direction.
Co-ordination plays a lead role for achieving results.
So for ensuring smooth progress of project and its successful implementation project direction, co-ordination and control are all required at some time but in right proportions and at right time, which has to be decided by the project manager.
Initiation/Start up Period Production Period Closing Period Project Implementation Phase
Corntrol
Coordination
Direction
Type/Level of Effort
6.3.1 Project Direction
It is the use of authority along the proper channels; ensuring that plans or schedules are enforced. When the schedules are authorized they can become working documents even work order. If the authorization is not there the plan, schedule may not go into work and scheduling system may change into mere paper work. So it follows that mere development of plans, systems and procedures would not produce better results unless authorized for proper implementation.
This authority is enjoyed by project manager who delegates it to other members.
Project Initiation or Start-up
This provides start soon after issue of project charter and maximum direction is required at this stage. The project charter merely defines the broad scope of work and overall time and cost target but may not go into details. The charter authorizes project manager to spell out the details and issue directives for realization. At start up everything is vague, no one knows exactly what to do. The project manager during this period directs for:
• Scope of work
• Specification of results for completed work
• Division of work–Imported Vs. Indigenous, etc.
• Schedule and budget of work
• Systems and procedure for work.
• Authority and accountability for work.
• Co-ordination and control of work.
The success of project depends heavily on teamwork so directions can be formulated in form of project manual thorough involvement of project participants with instruction for strict adherence.
Project Workshop or Kick Off Meeting
The finalization of the scope of work, budgets, schedules and various other item listed earlier is normally initiated with project kick up meeting. The project manager in this meeting may make presentation regarding the scope of project, performance objectives, budget etc and provide clarification that any participant may seek for understanding the project and the extent of his involvement. The participants are then asked to draw up detailed work list with information or resource inputs and efforts required. The kick off meeting can be followed by a workshop where the overall project schedule, project execution plan and systems and procedures may be finalized after a through examination of various pros and cons. The kick off meeting and start up workshop may achieve the following results: co–ordination of project requirement and that of participating agencies, establishment of direction and controls, team building and communications.
Project Direction During Production Stage
During the production stage directions may refer to approvals of work schedules detailed budgets, specification, purchase order, work orders, construction drawings, miscellaneous expenses, change in baseline etc. Directions, which do not effect baseline or project goals are lower level directions. It is to be provided at appropriate levels down the hierarchy on day-to- day basis.
Purchase Order and Work Orders
Direction to internal departments in organization can be passed through project charters, project manuals, circulars, inter-office memoranda, group meeting and personal meeting, which may not be on record. But direction to vendors and contractors must be on record along with the commitments and agreed corrective actions. The record of proceedings in form of minute of meeting (MOM) must be drawn and signed by all attended parties. The main directions to contractors are passed in documents form containing:
• Technical direction (specification, drawing)
• Commercial direction (delivery schedule, sequence, insurance, method of invoicing)
• Managerial direction (schedules, reports, meeting)
• Administrative direction (inspection notice, correspondence)
Communication
It is said that for every bit of action there must be a communication and for every bit of communication there must be feedback communication. According to peter Ducker 60 percent of management problems are caused in whole or in part by faulty management communication.
A two-way communication is not merely passing a message either top-down or bottom-up but it includes understanding of the message by the recipient. If the message does not get understood it cannot be effective communication. The receiver similarly has a responsibility for clarification and confirmation of his understanding. Communication becomes faster and effective with the use of latest technology. Communication devices are available to the user to bridge the gap like telex, telephone, hotlines, courier, Internet, etc.
6.3.2 Project Co-ordination
Co-ordination in a project is important because of need for simultaneous working, fast tracking or harmonious functioning. There are various activities, which can be started at the same time to save time in project completion. If a vendor is able to dispatch equipment earlier then the stipulated date, it will not do any good if work cannot be expedited. If all equipments are delivered, any work for erection left need for co-ordination will be much less. But if delivery and erection proceed simultaneously, it would serve no purpose to send equipment first and core equipment later. The coordination of all such activities is essential for its success to avoid either crowding of men or machine or shortage of items at critical time. Hence one cannot proceed in the execution of project without proper co-ordination.
The physical co-ordination includes the following:
• Squad check
• Co-ordination meeting
• Communication
Timing matching is again important for effective working of different groups working in a project.
6.3.3 Project Control
The control and controlling in the on going process which enables the project to flow on a pre- determined course. Take the example of motorcar to understand the terms ‘control’ and
‘controlling’. The car has an accelerator steering, gear changer, brake, rear view mirror etc.
that act as controls for the driver.
Now computing progress at B using level III figures Progress of Agency =
C P D
C P
DW W W
C W P W D W
+ +
+
+ = B%
Similarly taking progress of other agency as A%, B%, C% for A, B, C respectively Total Project Progress =
C P D
C B
AW W W
C W B W A W
+ +
+
+ = P%
6.4.1 Project Expedition and Follow-up
Expediting is a project management function and is required is all phases of project and for all aspects of work. Expediting engineer may be assigned the task of engaging vendors for timely manufacture and supply of equipment. This may be justified since industrial construction projects, equipment and material constitute nearly 70 percent of total project cost and invariably project are delayed due to late delivery of equipment or materials.
The objective of expediting is to ensure that equipment of right quality is delivered at the site, in right sequence and on right time to meet requirements of project. As per Murphy law ‘if any thing can go wrong it will’ so it is necessary to follow up all commitments on a day-to-day basis till project is completed.
6.5 PROJECT CONTROL THROUGH LINE OF BALANCE (LOB)
For performance measurement in any phase the requirements of subsequent phases must be known so that the progress achieved in preceding phases can support the progress required in the successive phase. It is a matter of concern if actual progress in any phase of project falls short of the minimum requirement to support the feasible progress of downstream phases and project as a whole. In that case ‘latest permissible situation’ is the bottom line, not the commitments with the help of LOB (line of balance) as shown below.
Fig.6.3 Project control
10 20 30 40 50 60 70 80 90 100 Project Phase
Basic Engineering
Line of Balance
Actual Progress Committed Schedule Progress
Delivery at Sight
Construction Engg for Construction Engg for Procurement