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Management Management in all business and organizational activities is the act of getting people together to accomplish desired goals

and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Nature of Management Nature of management can be described as follows. Continuous Process: Management is a never ending process. t will remain the part of organization till the organization itself e!ists. Management is an unending process as past decisions always carry their impact for the future course of action. Universal in Nature: Management is universal in nature i.e. it e!ists everywhere in universe wherever there is a human activity. "he basic principles of management can be applied any where whether they are business or non#business organization. Multidisciplinary: Management is basically multidisciplinary. "hough management has developed as a separate discipline it draws $nowledge and concepts of various other streams li$e sociology, psychology, economics, statistics etc. Management lin$s ideas and concepts of all these disciplines and uses them for good#self of the organization. Management is a group activity. Management is a vital part of group activity. %s no individual can satisfy all his needs himself, he unites with his co#wor$ers and wor$ together as an organized group to achieve what he can not achieve individually. Management is goal oriented: Management is a goal oriented activity. t wor$s to achieve some predetermined objectives or goals which may be economic or social.

Dynamic: Management is dynamic in nature i.e. techni&ues to mange business changes itself over a period of time. System of authority: %uthority is power to get the wor$ done by others and compel them to wor$ systematically. Management can not perform in absence of authority. %uthority and responsibility depends upon position of manager in organization. Management is an art: Management is considered as art as both re&uires s$ills, $nowledge, e!perience and creativity for achievement of desired results. Management is Science. Management is considered as science. 'cience tells about the causes and effects of applications and is based on some specific principles and procedures. Management also uses some principles and specific methods. "hese are formed by continuous observations.

Functions of Management

Management operates through various functions, often classified as planning, organizing, staffing, leading(directing, controlling(monitoring and Motivation. 1. Planning

t is the basic function of management. t deals with chal$ing out a future course of action ) deciding in advance the most appropriate course of actions for achievement of pre#determined goals. %ccording to *++N",, -.lanning is deciding in advance # what to do, when to do ) how to do. t bridges the gap from where we are ) where we want to be/. % plan is a future course of actions. t is an e!ercise in problem solving ) decision ma$ing. .lanning is determination of courses of action to achieve desired goals. "hus, planning is a systematic thin$ing about ways ) means for accomplishment of pre#determined goals. .lanning is necessary to ensure proper utilization of human ) non#human resources. t is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, ris$s, wastages etc. 2. Organizing t is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. %ccording to 0enry 1ayol, -"o organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel2s/. "o organize a business involves determining ) providing human and non#human resources to the organizational structure. +rganizing as a process involves3

dentification of activities. 4lassification of grouping of activities. %ssignment of duties. 5elegation of authority and creation of responsibility. 4oordinating authority and responsibility relationships.

3. Staffing t is the function of manning the organization structure and $eeping it manned. 'taffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, comple!ity of human behavior etc.

"he main purpose o staffing is to put right man on right job i.e. s&uare pegs in s&uare holes and round pegs in round holes. %ccording to *ootz ) +25onell, -Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal ) development of personnel to fill the roles designed un the structure/. 'taffing involves3

Manpower .lanning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection ) placement. "raining ) development. Remuneration. .erformance appraisal. .romotions ) transfer.

4. Directing t is that part of managerial function which actuates the organizational methods to wor$ efficiently for achievement of organizational purposes. t is considered life# spar$ of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the wor$. 5irection is that inert#personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub#ordinate for the achievement of organizational goals. 5irection has following elements3

'upervision Motivation 6eadership 4ommunication

Supervision- implies overseeing the wor$ of subordinates by their superiors. t is the act of watching ) directing wor$ ) wor$ers.

Motivation- means inspiring, stimulating or encouraging the sub#ordinates with zeal to wor$. .ositive, negative, monetary, non#monetary incentives may be used for this purpose. eadership- may be defined as a process by which manager guides and influences the wor$ of subordinates in desired direction. Communications- is the process of passing information, e!perience, opinion etc from one person to another. t is a bridge of understanding. 5. Controlling t implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. "he purpose of controlling is to ensure that everything occurs in conformities with the standards. %n efficient system of control helps to predict deviations before they actually occur. %ccording to Theo Haimann, -4ontrolling is the process of chec$ing whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation/. %ccording to *oontz ) +25onell -4ontrolling is the measurement ) correction of performance activities of subordinates in order to ma$e sure that the enterprise objectives and plans desired to obtain them as being accomplished/. "herefore controlling has following steps3 o 7stablishment of standard performance. o Measurement of actual performance. o 4omparison of actual performance with the standards and finding out deviation if any. o 4orrective action.

Pro!ect management .roject management is a discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives. t is an organized endeavor to accomplish a specified non#routine tas$. %lthough projects are not repetitive, they ta$e significant amount of time to complete % pro!ect is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables), underta$en to meet uni&ue goals and objectives, usually to bring about beneficial change or added value. "#!ectives "o accomplish its assigned mission t must adhere to tight time schedule, adhere to strict budgets, report to top management personnel of the organization etc. 7nsure .rojects are 5elivered within 8udget 7nsure .rojects are 5elivered within 'chedule 4ommitments 5eliver 9uality 'olutions Reduced 7rrors mproved 7ffectiveness %ppropriate Ris$ Management and nternal 4ontrols 4ontinuous .rocess mprovement via 4ollaboration mplement .roject 4ommunications and +versight

Phases:

"raditionally, project management includes a number of elements3 four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include:3

nitiation .lanning or development .roduction or e!ecution Monitoring and controlling 4losing

$nitiating "he initiating processes determine the nature and scope of the project. "he initiating stage should include a plan that encompasses the following areas3

%nalyzing the business needs(re&uirements in measurable goals Reviewing of the current operations 1inancial analysis of the costs and benefits including a budget 'ta$eholder analysis, including users, and support personnel for the project .roject charter including costs, tas$s, deliverables, and schedule

Planning and design "he main purpose is to plan time, cost and resources ade&uately to estimate the wor$ needed and to effectively manage ris$ during project e!ecution. .roject planning generally consists of

determining how to plan (e.g. by level of detail or rolling wave); developing the scope statement; selecting the planning team; identifying deliverables and creating the wor$ brea$down structure; identifying the activities needed to complete those deliverables and networ$ing the activities in their logical se&uence; estimating the resource re&uirements for the activities; estimating time and cost for activities; developing the schedule; developing the budget; ris$ planning; gaining formal approval to begin wor$.

%dditional processes, such as planning for communications and for scope management, identifying roles and responsibilities, determining what to purchase for the project generally advisable. 1or new product development projects, conceptual design of the operation of the final product may be performed concurrent with the project planning activities, and may help to inform the planning team when identifying deliverables and planning activities. %&ecuting 7!ecuting consists of the processes used to complete the wor$ defined in the project plan to accomplish the project<s re&uirements. 7!ecution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. "he deliverables are produced as outputs from the processes performed as defined in the project management plan and other framewor$s that might be applicable to the type of project at hand. Monitoring and controlling Monitoring and controlling consists of those processes performed to observe project e!ecution so that potential problems can be identified in a timely manner and corrective action can be ta$en, when necessary, to control the e!ecution of the project. "he $ey benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Monitoring and 4ontrolling includes3

Measuring the ongoing project activities (<where we are<); Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be); dentify corrective actions to address issues and ris$s properly (How can we get on track again); nfluencing the factors that could circumvent integrated change control so only approved changes are implemented

n multi#phase projects, the monitoring and control process also provides feedbac$ between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. .roject Maintenance is an ongoing process, and it includes3

4ontinuing support of end users 4orrection of errors =pdates of the software over time

n this stage, auditors should pay attention to how effectively and &uic$ly user problems are resolved. Closing 4losing includes the formal acceptance of the project and the ending thereof. %dministrative activities include the archiving of the files and documenting lessons learned. 'his phase consists of:

Pro!ect close3 1inalize all activities across all of the process groups to formally close the project or a project phase Contract closure3 4omplete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase.

'echni(ues: "he three basic project planning techni&ues are >antt chart, 4.M and .7R". %ll monitor progress and costs against resource budgets. )antt Chart

>antt chart is now commonly used for scheduling the tas$s and trac$ing the progress of

energy management projects. >antt charts are developed using bars to represent each tas$. "he length of the bar shows how long the tas$ is e!pected to ta$e to complete. 5uration is easily shown on >antt charts. CPM - Critical Path Method

5u.ont developed a 4ritical .ath Method (4.M) designed for 4omple! project, li$e the above e!ample, re&uire a series of activities, some of which must be performed se&uentially and others that can be performed in parallel with other activities. "his collection of series and parallel tas$s can be modeled as a networ$. 4.M models the activities and events of a project as a networ$. %ctivities are shown as nodes on the networ$ and events that signify the beginning or ending of activities are shown as arcs or lines between the nodes. P%*'- Programme %valuation and *evie+ 'echni(ue

"he .rogram 7valuation and Review "echni&ue (.7R") is a networ$ model that allows for randomness in activity completion times. .7R" has the potential to reduce both the time and cost re&uired to complete a project.

P%*' Programme %valuation and *evie+ 'echni(ue t is the name given to planning, monitoring, controlling and evaluation of comple! projects t is used for non repetitive#projects t has been used for projects such as defense and nuclear powered submarines. t is a planning tool which enables the project manager to estimate the time re&uired to complete a proposed project. .rovides a time schedule for various project activities

4hec$ing scheduled time against the actual time ta$en for an activity Minimize delay time in various parts of the overall job and helps on e!p editing the completion of the projects. t is method of budgeting resources to predetermine the job on schedule .7R" tells us how to set up networ$, how to calculate completion tie and how to monitor and control wor$.

,dvantages:

.7R" chart e!plicitly defines and ma$es visible dependencies between the ?8' elements .7R" facilitates identification of the critical path and ma$es this visible .7R" facilitates identification of early start, late start, and slac$ for each activity, .7R" provides for potentially reduced project duration due to better understanding of dependencies leading to improved overlapping of activities and tas$s where feasible. "he large amount of project data can be organized ) presented in diagram for use in decision ma$ing.

Disadvantages:

"here can be potentially hundreds or thousands of activities and individual dependency relationships "he networ$ charts tend to be large and unwieldy re&uiring several pages to print and re&uiring special size paper "he lac$ of a timeframe on most .7R"(4.M charts ma$es it harder to show status although colours can help (e.g., specific colour for completed nodes) ?hen the .7R"(4.M charts become unwieldy, they are no longer used to manage the project.

'he Net+or- Diagram n a project, an activity is a tas$ that must be performed and an event is a milestone mar$ing the completion of one or more activities. 8efore an activity can begin, all of its predecessor activities must be completed. .roject networ$ models represent activities and milestones by arcs and nodes. .7R" is typically represented as an activity on arc networ$, in which the activities are represented on the lines and milestones on the nodes. Steps in the P%*' Planning Process @. $dentify activities and milestones "he activities are the tas$s re&uired to complete the project. "he milestones are the events mar$ing the beginning and end of one or more activities. A. Determine activity se(uence "his step may be combined with the activity identification step since the activity se&uence is $nown for some tas$s. +ther tas$s may re&uire more analysis to determine the e!act order in which they must be performed. B. Construct the Net+or- Diagram =sing the activity se&uence information, a networ$ diagram can be drawn showing the se&uence of the serial and parallel activities. C. %stimate activity times

?ee$s are a commonly used unit of time for activity completion, but any consistent unit of time can be used. % distinguishing feature of .7R" is its ability to deal with uncertainty in activity completion times. 1or each activity, the model usually includes three time estimates3

D +ptimistic time (+") # generally the shortest time in which the activity can be completed. ("his is what an ine!perienced manager believesE) D Most li$ely time (M") # the completion time having the highest probability. "his is different from e!pected time. 'easoned managers have an amazing way of estimating very close to actual data from prior estimation errors. D .essimistic time (.") # the longest time that an activity might re&uire. "he e!pected time for each activity can be appro!imated using the following weighted average3 7!pected time F (+" G C ! M"G .") ( H "his e!pected time might be displayed on the networ$ diagram. Iariance for each activity is given by3 J(." # +") ( H:A

K. Determine the Critical Path

"he critical path is determined by adding the times for the activities in each se&uence and determining the longest path in the project. "he critical path determines the total time re&uired for the project. "he amount of time that a non#critical path activity can be delayed without delaying the project is referred to as slac$ time. f the critical path is not immediately obvious, it may be helpful to determine the following four &uantities for each activity3 D 7' # 7arliest 'tart time D 71 # 7arliest 1inish time D 6' # 6atest 'tart time D 61 # 6atest 1inish time "hese times are calculated using the e!pected time for the relevant activities. "he 7' and 71 determines the earliest time at which an activity can start and finish considering its predecessor activities. "he latest start and finish times are the latest times that an activity can start and finish without delaying the project. 6' and 61 are found by wor$ing bac$ward through the networ$. "he difference in the latest and earliest finish of each activity is that activity<s slac$. "he variance in the project completion time can be calculated by summing the variances in the completion times of the activities in the critical path. >iven this variance, one can calculate the probability that the project will be completed by a certain date such that the project can be accelerated by adding the resources re&uired to decrease the time for the activities in the critical path. H. Update as pro!ect progresses Ma$e adjustments in the .7R" chart as the project progresses. %s the project unfolds, the estimated times can be replaced with actual times. n cases where there are delays, additional resources may be needed to stay on schedule and the .7R" chart may be modified to reflect the new situation.

'erminologies:

PERT event: a point that mar$s the start or completion of one or more activities. t consumes no time and uses no resources. ?hen it mar$s the completion of one or more tas$s, it is not -reached/ (does not occur) until all of the activities leading to that event have been completed. predecessor event: an event that immediately precedes some other event without any other events intervening. %n event can have multiple predecessor events and can be the predecessor of multiple events. s ccessor event3 an event that immediately follows some other event without any other intervening events. %n event can have multiple successor events and can be the successor of multiple events. PERT activit!3 the actual performance of a tas$ which consumes time and re&uires resources (such as labor, materials, space, machinery). t can be understood as representing the time, effort, and resources re&uired to move from one event to another. % .7R" activity cannot be performed until the predecessor event has occurred. Opti"istic ti"e (+)3 the minimum possible time re&uired to accomplish a tas$, assuming everything proceeds better than is normally e!pected Pessi"istic ti"e (.)3 the ma!imum possible time re&uired to accomplish a tas$, assuming everything goes wrong (but e!cluding major catastrophes). #ost li$el! ti"e (M)3 the best estimate of the time re&uired to accomplish a tas$, assuming everything proceeds as normal. E%pected ti"e ."7)3 the best estimate of the time re&uired to accomplish a tas$, accounting for the fact that things don<t always proceed as normal (the implication being that the e!pected time is the average time the tas$ would re&uire if the tas$ were repeated on a number of occasions over an e!tended period of time). '% F (" G /M G P) L 0

&loat or Slac$ is the amount of time that a tas$ in a project networ$ can be delayed without causing a delay # 'ubse&uent tas$s M (free float) or .roject 4ompletion M (total float) Critical Pat'3 the longest possible continuous pathway ta$en from the initial event to the terminal event. t determines the total calendar time re&uired for the project; and, therefore, any time delays along the critical path will delay the reaching of the terminal event by at least the same amount. Critical (ctivit!3 %n activity that has total float e&ual to zero. %ctivity with zero float does not mean it is on the critical path. )ead ti"e3 the time by which a predecessor event must be completed in order to allow sufficient time for the activities that must elapse before a specific .7R" event reaches completion. )ag ti"e3 the earliest time by which a successor event can follow a specific .7R" event. Slac$: the slac- of an event is a measure of the e!cess time and resources available in achieving this event. .ositive slac$ would indicate ahead of schedule; negative slac$ would indicate behind schedule; and zero slac$ would indicate on schedule. &ast trac$ing: performing more critical activities in parallel Cras'ing critical pat'3 'hortening duration of critical activities

CPM Critical Path Method "he critical path method .CPM1 is an algorithm for scheduling a set of project activities. t is an important tool for effective project management. t is helpful in calculating the minimum time and the se&uence of tas$s needed to complete a project

t is mostly used for construction projects such as bridges, dams, canals etc., where engineers try to complete the job at the earliest to avoid rising costs.

Features: 5etermine the critical path on which the project duration depends. t gives the most economical schedule for a fi!ed duration. t determined the pattern of the allocation of available limited resources.

Purpose of CPM "o ensure logical discipline in planning, scheduling and controlling projects. "o encourage more long range and detailed planning of projects "o provide management with periodic reports on the progress of projects. "o identify the most critical element of the plan "o identify the critical path that ta$es the longest time in the completion of the project.

7!. "he following table gives activities in a construction project and the other relevant information. ,ctivity3 @#A @#B Duration: AN AK A#B @N A#C @A B#C H C#K @N

'olution3

"o find critical path3

,ll possi#le critical paths @.A.B.C.K @.A.C.K @.B.C.K

path durations ANG@NGHG@NF /0 ANG@AG@NFCA AKGHG@NFC@

4ritical path will be @A#B#C#K and project duration will be CH days.

P%*'

CPM

@) +rigin3 military A) 7vent oriented approach B) %llows uncertain C) .robabilistic model K) "ime based H) t averages time O) t estimates B different times +f completion

@) origin3 ndustry A) activity oriented approach B) does not allow uncertainity C) deterministic model K) cost based H) does not average time O) it estimates only one completion time