Benefits of Project Management PDF

Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Merits and demerits of different forms of organisational structure and importance of
understanding it for a project manager........................................................................................1
2. Different stages of team development and they way in which it is managed with example...2
3. Role of traditional process management duties of planning, organising and controlling in
project management.....................................................................................................................3
4. The ways in which organisational culture impacts project management................................4
5. Different options models and when should they be used to evaluate projects with example..5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Project management is a process which covers various activities such as planning,
initiating, executing, monitoring, measuring and controlling different project that are carrying out
by an organisation. For large as well as small business entities it is vital to focus on it so that
long term business goals could be achieved (Hidding and Nicholas, 2017). The enterprise which
is selected for this report is Hong Kong Jockey Club which one of the oldest institutions of Hong
Kong. It was founded in year 1884. Chairman of the organisation is Anthony Chow Wing Kin
and CEO is Winfried Engelbrecht Bresges. This assignment covers various topics such as merits
and demerits of organisational structure, importance of it for project manager, stages of team
development, the way in which it could be managed and role of traditional process management
duties. Along with this, impact of the ways in which organisational culture can impact project
management, options models and when should they be used are also discussed under this project.
MAIN BODY
1. Merits and demerits of different forms of organisational structure and importance of
understanding it for a project manager
Organisational structure: It can be defined as a system which is used by business entities
such as Hong Kong Jockey Club in order to establish a proper chain of command at workplace
(Different organisational structures, 2019). There are various types of it which are described
below:
Functional structure: It is also known as bureaucratic structure which segregate
organisation in different parts according to speciality. It could be used by manager of Hong Kong
Jockey Club by modifying their leadership style according to the projects that are undertaken by
them (Höst, Stol and Oručević-Alagić, 2014).
 Merits: In this type of structure management can lead toward effect8ive management at
workplace because there is only one person who will be informed by all the team
members regarding their work.
 Demerits: When it is used by business entities then it creates situation of lack of
interaction and coordination between different departments of organisation.
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Divisional structure: This type of structure depends upon leadership of the company
which varies according to projects. In Hong Kong Jockey Club managers can adopt it for the
purpose of
 Merits: It guides all the divisions to work independently as they get adequate freedom to
execute tasks that are related to their operational activities.
 Demerits: It could not be implemented by small organisations because such
organisations have limited workforce and all of them work collaboratively to accomplish
project goals (Keathley, 2014).
Matrix structure: It is a combination of functional and divisional structure which are
used by business entities all around the world. If it is use by managers in Hong Kong Jockey
Club then employees will have multiple bosses and they have to report all the superiors.
 Merits: It helps to enhance flexibility and productivity of the organisation because the
staff member swill have opportunity to learn new things due to intra departmental
collaboration.
 Demerits: It results in uncertainty for employees regarding reporting relationships
because they have multiple bosses to report.
In Hong Kong Jockey Club functional structure is followed by project managers in order
to manage the organisation appropriately. It is vital for them to understand all these structures
because it can guide them to follow best suitable one while working of different jobs. It can help
to accomplish all the goals of enterprise (Kononenko and Kharazii, 2014).
2. Different stages of team development and they way in which it is managed with example
Team development: For every manager it is very important to develop a team while
working on a project so that all the tasks could be accomplished successfully. In Hong Kong
Jockey Club leaders believe that for the purpose of attainment of business goals it is very
important focus on all the stages of team development (Li and Li, 2017). For example the
enterprise is planning to launch a sports event and the project manager is assigned for its
successful accomplishment. All the following stages will be followed for the formulation of
team:
Forming: It is the first stage of team development in which team members are introduced
with each other for the successful completion of project. Leaders in Hong Kong Jockey Club will
set project goals, timelines and roles of all the staff members at this stage. It will be managed by
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them by making sure that they have selected skilled workforce to execute all the future
operations.
Storming: At this stage individuals of the teams get aware of characteristics of all the
members. While formulating group for the sports event which is going to be conducted in Hong
Kong Jockey Club, project managers are required to be calm so that staff members could be
handled appropriately. It will be managed by leaders by ignoring conflicts and try to resolve
them which have already taken place.
Norming: In this stage people start to appreciate the skills and abilities of other
individuals who are the part of team. Here, project manager of Hong Kong Jockey Club will
admire all the employees who are working for the project of conducting a new sports event at the
organisation. It will be managed by leaders by try to motivate all the employees and promotive
good relations at workplace so that enterprise can attain growth (Mesly and others, 2014).
Performing: It is also considered as the way of success because here employees become
confident, highly motivated and experienced in their work. Manages in Hong Kong Jockey Club
will analyse that the employees have performed all their jobs according to the guidance or not.
They will manage this stage by assessing that all the people are working productively for
achievement of final goal of project or not .
Adjourning: It is the last stage of team development process in which all the members
gets segregated as the project is completed successfully. Managers in Hong Kong Jockey Club
will allocate other tasks of staff members so that they can contribute in different projects that are
going to be undertaken in future. This stage will be managed by them to by making sure that the
objectives that were formulated by them are achieved or not.
All the above described steps are required to be focused by managers in Hong Kong
Jockey Club as it can help them to develop a team. The group which is formulated by them by
taking all these steps in to consideration can help to reach to the long term goals and complete
the project of conducting a sport event.
3. Role of traditional process management duties of planning, organising and controlling in
project management
For all the project managers it is very important to focus on three different elements
while working on different projects that are undertaken by the organisation. These are planning,
organizing and controlling. Taking all of them in to consideration in decision making process
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helps to reach the long term business goals. Leaders in Hong Kong Jockey Club focuses on all of
them in order to make sure that the work of staff members wont get hampered due to large
number of responsibilities. Role of all these elements in project management is as follows:
Role of planning: When a project is being received by an organisation then mangers
have to create different plans for the successful accomplishment of all the tasks which are going
to be performed in future. For example, a project of conducting a sports event is being proposed
by Hong Kong Jockey Club so the leaders in the enterprise have to form effective plans which
can result positively. If they are not having capabilities for proper planning then it can create
barriers for the completion of project (Mottaeva, 2017).
Role of organising: In order to complete a project successfully it is vital for the
managers to organise various resources that are required for the completion. As Hong Kong
Jockey Club is planning to organise a sports event so it is very important for managers to make
sure that they are having sufficient resources for it. The required things for it are funds, human
resource etc. If they get failed to arrange all of them then it is not possible to complete the project
on time. Organisations of activities which will be performed for project is also very important
because it helps to assure successful completion of project.
Role of controlling: In project management controlling also plays a vital role because
managers are responsible to monitor and control the activities which are going to be performed.
When organising the sports event at Hong Kong Jockey Club it is very important for the leaders
to make sure that all the tasks are under their control and they are able to reduce possibility of
negative impacts on the project. Lack of ability of controlling in them can leave unfavourable
effect upon it because when adverse events could not be controlled by managers then it is not
possible to accomplish all the goals.
4. The ways in which organisational culture impacts project management
Organisational culture: It can be defined as the set of values and beliefs that are focused
by employees and top level executives of an organisation for the purpose of proper management
at workplace. In Hong Kong Jockey Club leaders are also required to focus on it in order to
analyse its favourable and adverse influences on project (Portz, 2014). Leaders within the
enterprise are following power culture and there are three different ways in which it can leave
influence on project management. All of them are as follows:
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 Centralisation: In power culture staff members are not allowed to take part in to
decision making process as top level executives have the right to form strategies and all
the staff members have to follow them. Sometimes employees may feel unnoticed due to
this because it they do not have any right to provide suggestions to the top level
executives. Sometimes it can affect project management because when workers are not
performing well then it will become difficult to manage the operations (Romano and Da
Silva, 2015).
 Lack of flexibility: Due to power culture there is a lack of flexibility within the
organisation where departments do not interact with each other and all the staff members
in them have to follow the command of their own boss. It influences project management
negatively because one division is not able to take advice from another one in order to
resolve the challenges that are faced to manage work.
 Lack of engagement: Power culture influence project management activities at Hong
Kong Jockey Club because when staff members are not having any right to take part in
decision making process then it will result in decreased engagement of them in tasks. It
will also result in reduced capabilities, skills and capacity of them to perform jobs that are
allocated to them.
All the above described ways are depicting that power organisational structure which is
followed by leaders in Hong Kong Jockey Club influences project management at the
organisation. In order to deal with all of them it is very important for managers to formulate
effective strategies so that all of them could be dealt appropriately (Suetin and others, 2016).
5. Different options models and when should they be used to evaluate projects with example
While planning to work on a project it is very important for the managers to evaluate
different types of options so that best suitable project could be selected. With the help of them
appropriate project can be selected. Two different option models are described below which
could be used by managers in Hong Kong Jockey Club:
Financial option model: It is an option model which is based upon the financial contract
between two parties. It is mainly related to the buying and selling of an asset. It should be used
by project manager of Hong Kong Jockey Club while purchasing asset for the organisation. With
the help of it proper contact can be established in the buyer and seller. It will help to deal with
challenges which may take place in future. It may include damaged asset which are delivered by
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supplier. This option will be beneficial in this situation because with the help of that contract
which was formulated by both the parties the buyer can ask for a replacement of a refund. For
example, if any type of equipment for the club is bought by the managers and they found that it
is damaged at the time of delivery. In this condition organisation can use the agreement which
was signed by them earlier. It can help them to ask for a refund or a replacement (Tan and others,
2014).
Real option model: It can be defined as the choice which is available to the investors of
the organisation where they will have right rather than obligations. It includes the transaction of a
tangible asset rather than any type of intangible asset. When managers of Hong Kong Jockey
Club plan to make changes within the organisation according to economic conditions,
technology enhancement and market conditions then this option should be used (Tomanek,
Cermak and Smutny, 2015). For example, if managers in the club are planning to buy a tangible
asset for the organisation then they require funding for the same. For this purpose they have to
ask the investors and in this situation they can use real option model to evaluate opportunity cost
of project and make decision regarding investment. It can help them to analyse that there is
requirements of the new asset or not. If they analyse that there is no requirement of the new
facility in the club then it will result in adverse reaction of them on the proposal.
Both the above described options could be used by stakeholders of Hong Kong Jockey
Club in order to make best suitable decision for the organisation. Both could be used in different
situations accordingly (Yang and Fu, 2014).
CONCLUSION
From the above project report it ash been concluded that project management is the
process of managing different tasks and activities that are related to specific projects that are
undertaken by the organisation. In order to complete it successfully it is very important for
managers to form effective teams so that staff members can work productively for attainment of
a common goal. Planning, organising and controlling plays vital role in project management
because all these activities are required for success of the organisation. For the successful
completion of it, business entities have to make sure that organisation culture is not leaving
negative influence upon the project.
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REFERENCES
Books and Journals:
Hidding, G. J. and Nicholas, J. M., 2017. A new way of thinking about IT project management
practices: Early empirical results. Journal of Organizational Computing and Electronic
Commerce. 27(1). pp.81-95.
Höst, M., Stol, K. J. and Oručević-Alagić, A., 2014. Inner source project management.
In Software Project Management in a Changing World (pp. 343-369). Springer, Berlin,
Heidelberg.
Keathley, E., 2014. Digital asset management: content architectures, project management, and
creating order out of media chaos. Apress.
Kononenko, I. and Kharazii, A., 2014. The methods of selection of the project management
methodology.
Li, B. and Li, Z., 2017, March. Office Automation Sub-Summary of the Work and the Project
Management System. In 2017 International Conference on Mechanical, Electronic,
Control and Automation Engineering (MECAE 2017). Atlantis Press.
Mesly, O. and et.al, 2014. Effective multicultural project management: the role of human
interdependence. International Journal of Managing Projects in Business.
Mottaeva, A., 2017, October. Innovative project management on the basis of programme-and-
target approach for energy saving in the construction complex. In IOP Conference
Series: Earth and Environmental Science (Vol. 90, No. 1, p. 012124). IOP Publishing.
Portz, S. M., 2014. Project management. Technology and Engineering Teacher. 73(7). p.19.
Romano, B. L. and Da Silva, A. D., 2015, April. Project management using the Scrum agile
method: A case study within a small enterprise. In 2015 12th International Conference
on Information Technology-New Generations (pp. 774-776). IEEE.
Suetin, S. and et.al, 2016. Results of agile project management implementation in software
engineering companies. In ITM Web of Conferences (Vol. 6, p. 03016). EDP Sciences.
Tan, C. H. and et.al, 2014. Application of fuzzy inference rules to early semi-automatic
estimation of activity duration in software project management. IEEE Transactions on
Human-Machine Systems. 44(5). pp.678-688.
Tomanek, M., Cermak, R. and Smutny, Z., 2015. A conceptual framework for web development
projects based on project management and agile development principles. arXiv preprint
arXiv:1502.04297.
Yang, S. and Fu, L., 2014. Critical chain and evidence reasoning applied to multi-project
resource schedule in automobile R&D process. International Journal of Project
Management. 32(1). pp.166-177.
Online
Different organisational structures. 2019. [Online]. Available through:
<https://www.allbusiness.com/4-common-types-organizational-structures-103745-
1.html>
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