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Project Management

in Business

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TABLE OF CONTENTS
INTRODUCTION
TASK 1
a) Background and principles of the project management
b) Success and failure criteria for the proposed project to appraise its
viability
c) Principles behind setting up the system and procedures for the effective
use of resources in the project management
d) Key elements involved in the process of terminating the project and
conducting post-project appraisals
TASK 2
a)
i) Plan and specify human resources and requirements for the project
ii) Most appropriate organizational structure, role and responsibilities of
the participants for the project
b) Control and coordination of the project
c) The project leadership styles and qualities required for the proposed
project
TASK 3
a) Project plan
b) The appropriate techniques for scheduling the project activities,
estimating time and controlling costs of the project
c) Method for measuring project performance
d) Explanation about change control procedure for evaluating the project
at completion
CONCLUSION
REFERNCES

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TABLE OF FIGURES
Figure 1: Gantt chart for the project of Palm Tree Spa
Figure 2: Network Diagram for the project of Palm Tree Spa
Figure 3: WBS for the project of Palm Tree Spa
Figure 4: Change control process

LIST OF TABLES
Table 1: Project plan for new technological initiative for Palm Spa Tree Resort

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INTRODUCTION
Every project has some distinct attributes which distinguishes it from
the regular activity of an organization. It is temporary in nature and has
specific start and end dates. Each project is started by organizations for a
specific purpose so, appropriate management and completion of different
activities on time is very essential for success of the project. The current
research report is also based on project management of business (Dey,
Clegg and Bennett, 2010). It focuses on an organization Palm Trees Spa
which is premium resort located in the warm tropical region of the Pacific
Ocean. This organization is facing a problem of poor online presence and
absence of the online reservation system in the company. So, current
research report will discuss about the project which will help in adopting new
technological development system for removing this problem. Report will
include different functions and activities of the project management
including diverse tools and techniques which will help in completing this
project in an effective manner.

TASK 1
a) Background and principles of the project management
Background:
Project management is a planned and structured process for attaining
a specific objective of an organization. It focuses on managing, allocating
and controlling different resources such as time and cost to accomplish the
project in an effective manner. For example; adopting a new technical
system by the organization for making online presence of this company in
world internet market is also one of the major projects for the business
(Kathy and Deborah, 2007).

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Project management has been applied from early civilization. Until
1900, software development projects were only managed by the engineers.
But, since 1950s, different organizations started using different tools and
techniques of project management for resolving different issues at the time
of managing projects. Henry Gnatt and Henri Fayol are considered the father
and forefather respectively for introducing planning and control techniques
of project management (Kloppenborg, 2011). Henry Gantt introduced Gnatt
chart and Fayol had provided 5 management functions and Work Breakdown
Structure (WBS) for resource allocation. Therefore, in 1950 organizations
started to use different tools and techniques for managing distinct activities
of the project.

In contrast, current concepts of the project management have become


very advance as compare to traditional method of project management. It
includes different tools, techniques and methods for managing project, such
as Gnatt chart, PERT (Project Evaluation and Review Techniques), WBS,
methodologies and critical path methods (Chiu-Chi and et.al, 2013). All these
techniques assist in increasing the success of the project.

Principles of project management:


Major principles of the project management are described as under:
Project structure: Project structure focuses on three basic
dimensions; quality, resource and time. Along with this, it also focuses
on the activities which have to be done in completing the project.
Current project of Palm Tree Spa stresses on developing new technical
system which helps in increasing an online presence of the
organization in world internet market.
Clear goals: Along with this, project management is also based on a
principle of clear goal. Therefore, each and every project must have
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appropriate and clear goal and objectives which will help the firm in
completing the project in an effective way. Major goal of the current
project is developing technical system for Palm Tree Spa (Greasley,
2007).
Optimum allocation of resources: Project manager should allocate
different resources such as time and cost in the optimum manner.
Regarding this project, manager can use different techniques such as
Gannt chart, network diagram and budgeting, etc.
Total quality management: Success of the project depends on the
quality of final outcome. So, project manager should assure about the
continuous improvement in quality of the project.
Risk recognition: Determining and appropriate managing of risk in
different activities of the project is also one of the major principles of
project management. So, manager should make appropriate
arrangements for managing different risks, such as financial, technical
and operational uncertainties.
Managing project disturbances: For managing projects in an
effective manner, manager should assure about that all problems and
disturbance of the current project will be resolved in effective manner
(Kumaraswamy, 2011).
Responsibilities of the project manager: Manager should
complete all responsibilities in an effective manner. Major
responsibilities of the project manager are to develop project plan,
allocate roles and responsibilities to different team members and
scheduling and controlling each and every activity of the project.
Therefore, all these are the major principles of the project
management which helps in managing entire project in an effective manner.
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b) Success and failure criteria for the proposed project to appraise its
viability
Success and failure criteria for the project management:
Operational requirements: It is also one of the major criteria for
measuring the success of the project. If, the current project
successfully develops a technological system for Palm Tree Spa then it
will be a successful project (Simmons, Bland and Wojciechowski, 2012).
But, in case if project manager does not satisfy all the operational
requirements then it will be considered as failure project.
Time and Cost criteria: Appropriate management of time and cost is
one of the major indicators for the project success. Timely completion
of the project with approved budget will represent the success of the
project. But, on the other hand, if project manager is not capable to
manage allocated time and cost in an effective manner then it will
represent ineffective completion of the project.
Success measurements: Major measurements of the success and
failure of project are appropriate planning, representation of WBS,
Product breakdown structure, project execution strategy and use of
discounted cash flow techniques. Further, it also includes present value
of investment and team management.
Final outcomes: For the current project, final outcome will be strong
online presence of Palm Tree Spa in world internet market. Therefore,
it also helps in determining success and failure of the project (Knapp
and et.al, 2010).

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Different criteria to appraise the viability of the project:
Viability of the project can be defined as a set of benefits which will be
derived by the Palm Tree Spa after completing this project. Viability of the
project can be appraised by different aspects which are as follows:
Economic viability: By completing the project in budgeted cost will
help in managing the economic viability of the project. So, for
managing cost of the project, manager should apply different tools for
minimizing cost of the project.
Technical viability: Quality of the technical system is not attainable
by the project manager then it loses its viability so, manager should
focus on attaining all quality standards for making the online presence
of Palm Tree Spa. It will help in maintaining technical viability of this
project.
Financial viability: financial viability of the project can be appraised
by managing available and required financial resources in effective
manner. Along with this, investment in most profitable technical
products will also helps in increasing the monetary viability of the
current project (Cervone, 2006).
Environmental viability: Sustainable completion of the project helps
in maintaining environmental viability of the project. Along with this,
project manager should take care of all those factors associated with
the project which can affect the environment of the project.
Socio political viability: Palm Tree Spa can increase the social
political viability of the current project by appropriate consideration of
corporate social responsibilities of the organization towards the society
development.

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c) Principles behind setting up the system and procedures for the effective
use of resources in the project management
Systems for allocating time and cost:
Resource leveling: It is most important techniques for allocating
techniques for the project of new technological development initiative
in Palm Tree Spa. It also resolves possible conflicts arising from the
over and under allocation of resources. Major techniques of the
resource level are fast tracking and crashing. Therefore, it is most
appropriate tool for allocating time and cost on different activities of
the project (Levy, 2009).
Activity based costing: For allocating cost on different activities,
project manager of this project can use activity based costing. It helps
in reducing the unnecessary cost on various activities of the entire
project plan. Therefore, it is most appropriate techniques for allocating
finance.
Process to integrate human and material resources
For developing new technological initiative for this resort manager can
use appropriate process for allocating human and material resources. All
stages of this procedure are describing as under:
1. Before allocating resources manager needs to determine the actual
needs and requirements of personal and material.
2. Afterwards, project manager will develop a resource plan for managing
all these resources.
3. After determining the actual requirements project manager will
arrange all material and personnel for attaining objectives of this
project (Martin and Guerin, 2006).

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4. Subsequently, this process will move towards the implementation of
the resource plan which will focus on allocation of personnel and
material as per the needs and requirements of each activity. In this
stage, manager will allocate human resources as per the skills and
knowledge of employees as per the requirements of particular task.
Implementation of resource plan
5. Appropriate and regular monitoring and control will help in improving
performance of personnel as well as effective use of the all material.
6. If any changes are required for attaining requirements of this project
then project manager will implement required change in this stage.
7. Afterwards, manager will analyze the final performance of the ensure
resource plan.
Therefore, project manager of the current project will follow the above
discussed process for allocating human resources and material on different
activities of the project (Andersen, Dysvik and Vaagaasar, 2009).

d) Key elements involved in the process of terminating the project and


conducting post-project appraisals
Key elements of project termination process:
Project termination is very complex and important phase of the project
management. There are different key elements which involve in the process
of the termination. Major elements are audit logs, cost and time, remaining
work, legal requirements and final records, etc. Audit logs can be defined as
all audit trails which includes the information about each and every activity
with time and cost which can affect the entire project at any time. Along with
this, project termination process also involves the cost and time which helps
in completing this project on specific deadline. Including this, legal

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requirements for developing the online presence of Palm Tree Spa is also one
of the important elements which need to consider by manager at the time of
terminating project otherwise it can negatively affect the implementation
process of website and other software. In addition, at the time of termination
project manager maintain appropriate record of all activities and tasks in
effective manner (Zwikael, 2009).

Post project appraisal:


1. Conducting variance analysis: It is the best method for post
purchase appraisal of the developing new technological initiative
project. It will help in identifying variance by making difference
between actual and budgeted performance of whole project.
2. Cost-benefit analysis: Development of the new technological system
will be a very costly project. But, after implementation it will provide
various benefits to Palm Tree Spa Resorts such as online presence of
the company attract large number of customers, advance reservation
of customers, etc. Therefore, cost-benefit analysis is also best method
for post project appraisal.
3. Risk analysis and review: Project manger needs to determine
possible risks of this project. It will help in developing plan for
managing these risks in effective manner.
4. Recognizing project achievements: It is also one of the best
methods for post project appraisal. It will help in determining all the
benefits of the project for Palm Tree Spa (Walker, 2007).

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TASK 2
a)
i) Plan and specify human resources and requirements for the project
Human resource requirements: This project focuses on development of
new technological initiative for Palm Tree Spa Resort. It requires
different human resources such as project manager, software engineer,
website developer and quality analyst. All these are the major
requirements for developing website, Management Information system
(MIS) and reservation system for organization.
Other requirements: This project is also required some other resources
such as time, cost, technical skills and experience, different software
and hardware, etc (Darren, 2012).

ii) Most appropriate organizational structure, role and responsibilities of the


participants for the project
Organizational structure:
Matrix structure will be appropriate for developing new technological
system for Palm Tree Spa Resort. It will be beneficial for this project because
it helps in dividing all roles and responsibilities on the basis of function and
project. It allows the supervisor of this project to focus on their own expertise
area only. Along with this, it also focuses on allocating roles and
responsibility on personnel as per their skills and knowledge. Further, it is
also beneficial for making communication in different functional areas of the
project such as software development department and website department,
etc. It is very flexible structure because it allows human resources to work in
other department if their won work has completed (Hobbs, 2009).

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Role and responsibilities of all participants:
As per the above discussion major participants of this project are
project manager, software engineer, website developer and quality analyst.
Roles and responsibilities of each participant are describing as under:
Project Manager:
Managing different activities of project.
Allocating roles and responsibilities to all team members
Developing and implementing project plan.
Appropriate allocation of resources.

Software Engineer:
Developing Management information system
Fulfilling all technical needs and requirements of this project.

Website Developer:
Developing website of this project.
Making online presence of this website in world internet market.

Quality Analyst:
Managing quality of the entire project (Workers roles and
responsibilities, 2015).
Assurance to meet all quality standards of MIS, website and other
technological initiatives.
b) Control and coordination of the project
Control and coordination are very significant for monitoring and
evaluating the performance of this project. Further, it is also very important

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for preparing project plans and scheduling and allocating resources on
different activities. Along with this, it helps in managing and controlling each
and every activity of the project. There are different techniques by which
management of this project can control and coordinate different activities of
this project. These techniques are WBS Gantt chart, etc. WBS helps in
improving communication at different level and Gantt chart assist in
monitoring and controlling different activities of the project planning. Along
with this, by establishing targets and specific objectives manager can
improve the overall control and coordination in different projects (Simmons,
Bland and Wojciechowski, 2012).

c) The project leadership styles and qualities required for the proposed
project
Participative leadership style is one of the most appropriate leadership
styles for developing website and MIS system for Palm Tree Spa. It will be
significant for this project because it will help in improving communication
between team members as well as help in taking different decisions
regarding this project. Including this for managing different activities
manager requires various leadership qualities such as communication,
motivation, team building, conflicts management and negotiation skills. All
these leadership qualities encourage each and every team member to
complete all tasks on specified time and cost (Cervone, 2006).

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TASK 3
a) Project plan
Table 1: Project plan for new technological initiative for Palm Spa Tree Resort

Project Plan
WBS Name Duration StartFinish Predecessors
New technological Mon
initiative project for Palm Fri 03-07- 23-11-
1 Spa Tree Resort 102 days 15 15
Mon
Fri 03-07- 17-08-
1.1 Project Management 32 days 15 15
Mon
Fri 03-07- 13-07-
1.1.1 Project planning 7 days 15 15
Tue
Tue 14-07- 21-07-
1.1.2 Scope Management 6 days 15 15 3
Wed
Scheduling and allocating Wed 22-07- 29-07-
1.1.3 resources 6 days 15 15 4
Thu 30-07- Fri 07-
1.1.4 Risk management 7 days 15 08-15 5
Mon
Mon 10-08- 17-08-
1.1.5 Change control 6 days 15 15 6
Mon
Analysis of the Tue 18- 14-09-
1.2 Requirements 20 days 08-15 15
Wed
Human resource and Tue 18-08- 26-08-
1.2.1 material requirements 7 days 15 15 6,7,3
Review and analysis of all Thu 27-08- Fri 04-
1.2.2 requirements 7 days 15 09-15 9,7
Mon
Arrangements of all Mon 07-09- 14-09-
1.2.3 resources 6 days 15 15 10
Thu
Design of Website, MIS Thu 27- 08-10-
1.3 and reservation system 31 days 08-15 15
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Manual design of Tue
Website, MIS and reservation Thu 27-08- 01-09-
1.3.1 system 4 days 15 15 9
Tue 15-09- Fri 18-
1.3.2 Specification of all designs 4 days 15 09-15 11,9,10
Thu
Mon 21-09- 24-09-
1.3.3 Test planning 4 days 15 15 14,9
Fri 25-09- Fri 02-
1.3.4 Review of all designs 6 days 15 10-15 15
Thu
Completion of designing Mon 05-10- 08-10-
1.3.5 process 4 days 15 15 16,13
Mon
Fri 09-10- 09-11-
1.4 Coding 22 days 15 15
Thu
Fri 09-10- 22-10-
1.4.1 Freezing all interface 10 days 15 15 17
Mon
Implementation of all Fri 23-10- 26-10-
1.4.2 codes 2 days 15 15 19,17
Mon
Tue 27-10- 02-11-
1.4.3 Inspection 5 days 15 15 20,17
Wed
Testing of MIS, Website Tue 03-11- 04-11-
1.4.4 and reservation system 2 days 15 15 21
Mon
Thu 05-11- 09-11-
1.4.5 Implementation freeze 3 days 15 15 22
Tue
Tue 10- 17-11-
1.5 Quality Assessment 6 days 11-15 15
Tue
Tue 10-11- 17-11-
1.5.1 Quality management 6 days 15 15 23

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b) The appropriate techniques for scheduling the project activities,
estimating time and controlling costs of the project
There are different techniques which will help in scheduling different
activities of the project with appropriate allocation of time and cost. These
include PERT, Critical path Method, Gantt chart and WBS. For the current
project all techniques are described as under:
Gantt chart:

Figure 1: Gantt chart for the project of Palm Tree Spa

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Network Diagram:

Figure 2: Network Diagram for the project of Palm Tree Spa

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Work Breakdown Structure (WBS):

Figure 3: WBS for the project of Palm Tree Spa

Calculation of MS project has reflected that critical Path for the current
project has included all activities of the project plan. So, overall project will
be completed in 102 days.

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c) Method for measuring project performance
There are different methods for measuring the performance of this
project which are described as under:
Budgeted Cost for Work Scheduled (BCWS): It is most appropriate
method for reporting the budgeted cost for all activities which are
included in this project. It helps in measuring the overall performance
of the project because using this cost manager can determine the
variance between actual and expected cost of the project. Positive and
negative variance will help in determining the success and failure of
the project (Knapp and et.al, 2010).
Budgeted Cost for Work Performed (BCWP): It shows the actual
cost of all activities which are performed by all team members for
developing website and MIS systems for Palm Tree Spa Resort.
Therefore, it also helps in determining the performance gap of this
project which assists in measuring the overall success of this project.
Earned Value analysis: By using this method project manager can
measure the performance of this project at any time. Along with this, it
will help in forecasting the completion date and final cost of this
project.
Cost performance indicators: There are different cost indicators
which assist in measuring progress of the current project such as
budgeted cost, actual cost and variance analysis, etc (Walker, 2007).

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d) Explanation about change control procedure for evaluating the project at
completion

Figure 4: Change control process


(Source: Integrated Change Control Procedure, 2015)
Evaluation of the project can be done implementing change control
process. This procedure comprises different stages such as identification of
required changes in different activities of project plan for attaining goals and
objectives. Further, it access and analyze major requirement of changes by
determining the benefits of these changes to whole project. Afterwards,
manager will develop and implement the change management planning and
measure the performance of the project after implementation (Martin and
Guerin, 2006).

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CONCLUSION
The current research report has concluded that project manager will
complete the current project for Palm Tree Spa Resort in effective manner.
Along with this, project will helps in making the online presence of the
company, developing attractive website and MIS system for the organization.
Further, it will also helps in developing a reservation system for organization.
Overall whole project will satisfy all the requirements of the resort in
appropriate manner and will be completed in 102 days within the specific
budget.

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REFERNCES
Books and journals

Andersen, S. E., Dysvik, A. and Vaagaasar, L. A., 2009. Organizational


rationality and project management. International Journal of Managing
Projects in Business.

Cervone, F. H., 2006. Project risk management. OCLC Systems & Services.

Chiu-Chi, W. and et.al, 2013. Assignment of project members considering


capability and personality balance. Kybernetes.

Darren, D., 2012. The nature of project management: A reflection on The


Anatomy of Major Projects by Morris and Hough. International Journal of
Managing Projects in Business.

Dey, K. P., Clegg, T., and Bennett, J. D., 2010. Managing enterprise
resource planning projects. Business Process Management Journal.

Greasley, A., 2007. Operations Management. SAGE.

Online

Workers roles and responsibilities. 2015. [Online]. Available


through:<https://osha.europa.eu/en/topics/riskassessment/workers_role>.

Integrated Change Control Procedure. 2015. [Online]. Available through:


< http://www.itplanning.org.vt.edu/pm/integratedchangecontrol.html>.

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