Project Management Revision Notes
Topic 1
Part 1 (Development of Management Thinking):
1) Project = [temporary endeavor (attempt) = Not a routine
operation] / has a defined beginning and end in time
(Start)
2) Project Management = initiating planning executing
monitoring and controlling closing
(End)
3) Major concern in Project Management:
tim
e
Communicati Risk
on, Manageme
monitoring nt
and control
human
resourc
es
Procureme
AIM ntGOOD FAST CHEAP
quali
4) Evolution of Management Thinking:
co
-
ty
st
Early thoughts of management = specialization/ division of labors
- Classical Approach = division of labors + scientific Management
Theory ( time
and motion study) + standardization of work process
- Neo Classical Approach = division of labors + scientific
Management Theory
(Time and motion study) + Standardization of
work
+ salary based on piece rate
*Labors were treated like machines
- Behavioral Approach = human elements/ humanity is
emphasized ( Theory Y)
- Management Science Approach = e.g. management information
system
- Modern Approaches = systems approach + Situational approach
()
5) Organizational Objectives
- Economics: (to stakeholders, client, and company)
Provide a fair return to stakeholders
Satisfy clients requirements
Utilize resources efficiently
Improve companys position in its markets
Develop profitable products
- Social:
Provide employees with fair compensation for their effort
(individuals)
Encourage and support labors growth and development
(individuals)
Provide secure employment and friendly, cooperative atmosphere
(individuals)
To benefit rather than harm the community (community)
Topic 1
Part 2 (Organization Type in Construction Industry):
1) Function of Organization Charts:
- Show the structure of organization ()
- Show the relationship between managers and their subordinates
()
- Brief job description ()
*The chart must be simple and clear
2) Specialization
- Vertical specialization: hierarchical structure of authority
- Horizontal specialization: differentiation of functions within a level
of hierarchy
3) Type of horizontal specialization:
- Functional organization: function
- Project organization: project
- Matrix organization ( func. + project )
*The pros and cons of functional organization and project
organization are complementary with each other.
*Advantages of Func. Org.:
- Personnel of same skills grouped together Individuals can learn
from each other = effective job training
- Effective utilization of resources
*Disadvantages of Func. Org:
- Boring and tedious for mechanistic works
* Advantages of Project. Org.:
- Competition between projects can be encouraged
- Give greater flexibility and adaptability in meeting new external
demands when there is new project, there will be new contract
and then, new recruitments for graduates.
*Disadvantages of Project. Org.:
- Less chance for staff training and development on special
knowledge and skill
- Conflict may occur between projects when competing for resources
Topic 1
Part 3 (Centralization and Decentralization of
Authority and Responsibility):
Centralization = Decision making occurs only at the highest level
of an
organization
Decentralization = Authority delegates the decision making to
level at which the
action is taking place
1) Advantages of Centralization:
- Easier overall control (owing to less administrative works)
- Easier decision making, easy to be kept track with
- Easier to safeguard the interests of the whole organization, (not
deviate from policies)
- Lower administration cost (owing to less specialists)
2) Disadvantages of Centralization
- Slow response to changing situations
- Difficult to judge seniors performance
- Less personal development of individuals
- People are less willing to show initiative and create less
commitment among employees
3) Advantages of Decentralization
- Quicker decision making in small groups (=/= Easier decision
making)
- Easier to judge seniors performance
- Allow better personal development of individuals
- Encourage people to show initiative and create greater
commitment among employees
4) Disadvantages of Decentralization:
- Make overall control more difficult
- Difficult to keep track of decision taken
- Decision made by lower levels may deviates from policies
- High administrative cost
* Autocratic approach = quite effective in finance, contracts
and pricing
* Democratic approach = effectiveness depends on situation
*For a large organization, centralized system usually does not work
effectively (since the senior may not be able o get first-hand
detailed information about problems)
Topic 1
Part 4 (Span of Control):
1) Definition:
Span of Control = number of persons who are directly
responsible to a single supervisor.
(where groups, sections or department will be led by a
section head)
2) Main factors affecting span of control:
i. Type of responsibility: the larger degree of responsibility,
the more managers you need, the
smaller the span of control
ii. Complexity of task: the more complex the task, the
more managers you need, the smaller
span control
iii. Speed of decision making and relative importance of
decision:
the faster decision making is required, the less managers
you will need, hence the larger span of control you can
choose
iV. Character of the leader (ability, charisma, sense of
responsibility)
3)
The more managing level exists, the higher the cost of
salary paid of the staff, the harder to communicate
between top level and bottom level.
4) Training/ individual development:
Larger span of control less training on mechanical process
5) Level of geographical dispersion: the more dispersed a business
is, the harder to do the supervision ( resulting in a smaller span of
control)
* However, this problem has long been solved by the improving
communication devices and technology
6) Drivers affecting span of control
Topic 1
Part 5 (Leadership and Motivation):
1) Major components of an individual project manager/
leader:
i. Management techniques (experience)
ii. Leadership: the quality of obtaining results from others through
personal influence
iii. Individual skills and attributes (refer to technical skills of his/her
related industry)
2) As a good leader, he/she should have a good understanding of
human relationship, and should respect and accept peoples
variable behavior.
3) Managerial leadership (Mullions 1999):
- Qualities or traits approach: assumes leaders are born and not
made.
- The functional or group approach: assume leadership skills can be
learned and developed. Attention is focused on what the leader
actually does and the nature of the group.
- Leadership as a behavioral category: refers to behavior of people
in leadership positions and the influence on group performance
- Style of leadership: way in which the function of leadership are
carried out and the behavior adopted by managers towards
subordinate staff ( similar to the above category)
- The situational approach and contingency models: Interactions
between the variables involved in the leadership situation.(
)
- Transformational leadership: a vision for transforming the
performance of the organization ( involving a more human
centred attitude) + 4I (II IM IC IS)
Idealized influence (II) : Leader serves as an ideal role + II +IM
=
walks the talk ()
Leaders
Inspirational Motivation (IM): ability to inspire and motivate charism
followers
Individualized consideration (IC) : concern for the needs and
feelings of
followers
Intellectual Stimulation (IS): the leader challenges followers
to be innovative
4) Qualities and characteristics of a successful leader:
i. Commitment:
- Leader should commit himself totally to the job
- He should have good knowledge of the current events, jobs,
people and future development.
- He must create sense of participation in all team members
ii. Self-confidence:
- Positive in thinking and his/her actions
iii. Select appropriate subordinates:
- Select suitable subordinates to carry out the delegated duties for
the project ( allocated the right person into the right place at the
right time)
- (sometimes individual with great intelligence does not mean
he/she is the most suitable person)
iV. Energy (enthusiasm)
V. Professional knowledge + relevant work experience
Vi. Fairness: be fair to your subordinates.
Vii. Respect: respect every people, regardless of his/her nationality
and ages
Viii. Vision: possess foresight and sees new trends and be able to
lead his team in the right direction
*Other essential qualities for a leader: flexibility, human relations,
creativeness, decisiveness and etc.
5) Leadership styles ( Huneryager and Heckman (1967)) :
i. Dictorial ( Work gets done through fear by threats of
penalties)
ii. Autocratic ( Authority and decision making are centred on
the leader.)
iii. Democratic (Authority and decision making are
decentralized.)
( Participation in decision making is encouraged.)
( Leader and subordinates tend to work as a whole)
iV. Laissez-faire ( Subordinates establish their own objectives and
make all decisions.)
6) Leadership Theories
- Style theory
= people respond better to some management styles than to
other
+ people are more likely to follow democratic style and work more
effectively
- Contingency theory
= performance of a group is contingent upon the appropriate
leadership styles + the extent to which the situation itself gives
the leader influence over the members of the group.
7) Motivation Theories
- Maslows Hierarchy of Needs Theories:
It states that all needs fit into a hierarchy of five levels in ascending
order
- Herzbergs Two Factor theory (extend of Maslows theory):
it introduces the concept of potential demotivation (hygiene factor
that can exist in
the organizational environment
- Process theories:
The theory measures motivational force behind a task by
ascertain values for valence, instrumentality and expectancy. The
expectancy theory of motivation (Porter & Lawler, 1968; Vroom,
1964) is one of the process theories which emphasizes that it is
series of perceived probabilities that govern the workers actions,
not actual results.
- Mclellands theory
The theory maintains that individuals are motivated by
3 needs.
- McGregors Theory X and Theory Y
X states that:
i) Average human dislike working, wish to avoid
responsibility, has little ambition and want security
ii) Most people must be controlled or threatened with
punishment
Y states that:
i) People will exercise self-direction and self-control,
accept and seek responsibility
ii) Rewards is associated with ones achievement
iii) Recognizing the contribution of workers can make
toward the organizations goal
- Reinforcement theory
Both positive and negative reinforcement strengthen
behavior while both punishment and extinction weaken
behavior.
Positive reinforcement = you do a good job, you get
reward
Negative reinforcement= undesirable condition will be
removed if you did a good job
Extinction = if person does extra effort, no thanks for it,
consequently they stop doing it
Punishment= getting punishment as a consequence (e.g.
having your pay
docked for
lateness.)
Topic 1
Part 6 (Teamwork):
1) Four component of good performance of a team:
- Composition: Initiators, questioners, visionaries, problem solvers,
evaluators and leaders that make teamwork effective
- Strategies: choosing the wrong strategies or methods will give
wrong results regardless of the composition and
motivation of individuals
- Relationship: need to consider climate + process
*Climate: willingness to take responsibility and risk taking, clarity (
clear about the team objective, when to achieve,
authority of different roles), standards of performance,
team spirit (team members trust each other), reward
* Process: decision making (reaching consensus or autocratically) ,
task execution (what methods), information exchange
- Motivation
2) Teamwork theory: F S N P A
As the project manager for a newly formed team, you will
want to help them get to an effective and high-performing
state as quickly as possible. Understanding the stages of
group development can help you build a cohesive team
that get results.
- Forming: team members meet each other + learn about
tasks they
need to perform
(Therefore, PM need to provide structure and direction
for the team)
- Storming: team members may challenge each other
due to different
personalities or working styles
(PM need to solve conflicts by active listening and
relationship building)
- Norming: the team starts to come together and focus
more
effectively on the project tasks and objectives
- Performing
-
- Adjourning: morning stage, subordinates may not be
willing to work
Team stage Leadership style
Forming Give guidance and
direction
Storming Coaches
Norming Facilitates and enables
Performing Delegates and oversees
Adjourning Recognition and sensitivity
so efficiently
3) Things to avoid in Teamwork
- Needs to avoid social loafing
- Social loafing means an individuals doing less work in a
team than what he/she would normally do working
individually as individual may have an impression that
working in a team can be carried by other more capable
teammates.
- Solution to social loafing:
i. Forming smaller teams to make individual
performance more visible
ii. Specializing specific tasks to certain individuals and
measuring their performance
iii. Increasing employee motivation by selecting those
who have previously shown themselves to be motivated
and increasing their job enrichment
Topic 1
Part 7 (Leadership and Motivation):
1) Power/ Delegation of Power (DOP)
= authority + responsibility + accountability
- Authority = power + right of a person to use and allocate
resources and give commands for delegation (so that one can
carry out his/her responsibility.)
- Accountability = obligation to carry out duties as per
standards/quality of
( ) performance ( cant be delegated to your
subordinates)
- Responsibility = duty to complete assigned tasks
2) Type of relationship in an organization
i. Direct relationship
ii. Lateral relationship
iii. Function relationship
iV. Staff relationship
Function
relationsh
ip
. Team A Team B
team A team B
leader
Direct leader
relationshi
p subordinat subordinat subordinat subordinat
e1 e2 e1 e2
Lateral Lateral
relationship relationship
Staff
3) Reasons for delegation of power (DOP) :
relationship
i. Impossible for the leader to do everything
ii. Leader can free himself from routine operation to perform other
more critical issue
iii. Beneficial to subordinates in terms of their skills training and
knowledge development
iV. Subordinates can gain recognition of his efforts in form of
promotion.
4) Attention notes to delegation of power:
i. Delegation of power does not mean that accountability can be
delegated.
ii. Leader must know his team members well.
iii. Task must be clearly defined
iv. Amount of authority and resources available must be clearly
defined.
v. Frequency of reporting and communication to leader must be
stated.
5) Obstacles in the effective implementation:
i. To management level:
- organization structure may be disorganized
- not have confidence on the abilities of the employees
- feels that the employees are more intelligent and smart
ii. To employees
- may be inexperienced
- may be bogged down by the fear of failure
- may be lacked of incentives for accepting additional
responsibilities
iii. To the organization:
- no precedence in organization for DOP
- believes in centralized management philosophy
Topic 1
Part 8 (Project Management in Construction):
1) Definition of construction project management:
- coordinating people, equipment, material, money, schedule
(quality) (cost) (time)
2) Functional Management VS Project Management
- Functional Management: manage according to different functions
( repeated work of similar nature) , more
technical-based)
- Project Management: project based, mainly focus on cost, quality
and time of project
3) Project Management = coordination of people, equipment,
material, money and
time
4) Project manager, project engineer and project architect may be
employed by
developer, consultant or contractor and work for the same
project ( design ,
procurement and construction acivities.)
5) Developers PM Design Project
Engineer(consultant/developers), Project
Architects(consultant/developers), PM (contractors)
6) Work managers (design leaders/supervisors: engineer, architect
or site agent) report to each design project engineer, project
engineer and project architects and work on to fulfil the
requirements of the contract. He/she must also communicate and
coordinate their efforts.
7) Contractors Estimating Department:
- Preparing tenders for the company
- Pricing a BQ listed in the tender document
- Assist engineering department in the preliminary work
programme and method statement
8) Contractors QS Department
- Assessment of the work done by estimating department
- Responsible for VO (variation order), subcontractors
payments and claim for extra work.
- Requisition( ) of materials to be used + coordinate with
the purchase department
- Analyze cash flow to know how much the contractor should
borrow from the bank
9) Contractors Planning Department
- Coordinate labor (people), plant(equipment) and other
resources
Topic 4
Part 2 (Value Management):
1) Value = function / cost = satisfaction of needs / use of resources
2) What is VM?
Value management is a structured and analytical process which
follows a work plan of VM workshop to achieve the best value of a
project (best value of a project for money).
3) What work does VM include?
Comparing: design options, evaluating construction methods,
choosing sites, deciding on access points etc.
4) Key elements of VM workshop:
- Supported by top management of any individuals
- Multi-disciplinary, professional and specialist input
- Group decision
- Neutral stance
5) Six phase of facilitating a VM workshop:
Information phase
Analytical phase
Development phase
Creativity phase
Judgement phase
Development phase
