CHAPTER 5: PROJECT’S MANAGEMENT

ORGANIZATION AND HUMAN RESOURCE

ANALYSIS

5.1. Necessity and 5.2. Principles 5.3. The

factors that and criteria for management
influence the selecting the organization 5.4. Estimating
project’s form of structure in the personnel and
management management operation stage labor cost of the
organization and organization of project
human resource investment of investment
aspect projects projects
 The necessity of the management
organizational study of investment project

Investment Implementation Operation

preparation stage stage
stage
5.1.2. Factors influence the management
organization of investment project

Legal factors

Economic Organizational
factors factors
5.2. Principles and criteria for selecting the form of
management organization of investment projects

 Forms and principles of management organization

 Criteria for selecting the form of management
organization of investment projects
Forms of management organization

 Management organization by function

 Management organization by product
 Management organization by customer
 Management organization by region
 Management organization by operation process
Principles of management organization

 Centralization
 Specialization
 Symmetry
 Synchronizing
 Flexibility
 Smooth
 Continuity
 Inheritance
Criteria for selecting the form of management
organization of investment projects

 Project’s properties: new investment project or

investment to expand and modernize
 The size of project
 Equity ownership
 Risk level of the project
 Technology used to implement and operate the project.
 The complexity of the project
 Duration of the project
 Resources used for the project
 Management costs
 Information requirements
5.3. The management organization structure
in the operation stage of investment projects

5.3.1. Forms of enterprise organization

5.3.2. The management organization structure in the
operation stage
Forms of enterprise organization

 Limited liability company

 Joint stock company
 Partnership company
 Proprietorship
 State owned enterprise
The management organization structure in
the operation stage of investment projects

 The main tasks of the division of the management

organization structure in the operation stage:
 Technical task
 Production task

 Marketing task

 Financial task

 Organization task
 3 levels of management structure
 Leadership level
 Executive level
 Implementation level
 System of departments
 System of workshops, factories, branches, stores
Steps to build the system of functional
departments in the project
 Step 1: Determine the workload for each
management function.
 Step 2: Determine the number of departments and
parts of production and service provision.
 Step 3: Establish specific relationships among
functional departments.
 Step 4: Set the operation rules for each functional
department as well as each employee.
 5.4. Estimating personnel and labor cost
of the project
5.4.1. Estimating personnel and labor structure
5.4.2. Working regime of labor
5.4.3. Recruitment and training
5.4.3.1. Methods of recruitment for the project
5.4.3.2. Training methods
5.4.3.3. Annual training cost
5.4.4. Human cost
Method calculating the number of
workers directly involved in production
 Based on the norms of time, the output level
 Based on the machine level
The method is based on the norm of
time, output level
n
1
CN= ෍ Qi×DMti×
Tbq
i=1
The method is based on the norms of
time, the output level
σn
i=1 CNi×ti
NVbq =
CN
The method is based on the machine level
n
Mi Số ca
CN = ෍ ×
DMs. i ht
i=1
 CN - number of direct employees in one year (person)
 Mi - the number of machines i (i = 1, 2…) in one year
 DMI –norm of machine i (number/ person)
 Số ca – number of shifts of machinery in 1 day.
 ht - coefficient of time working using is the ratio between
the actual time with the working time under the regime of
each person.
 The labor structure of the project
Year Year 1 Year ....
Vietnamese Foreigner Vietnamese Foreigner
Direct employee
1.
2.
Indirect employee
1.
2.
Management employee
1.
2.
Working regime of labor
 Based on the provisions of law
 Based on regulations of the project
Methods of recruitment for the project

 Advertising
 Labor service office
 Recruitment of graduates from universities
 Other forms
Training methods

 Analyzing training need

 Implementing the training process
Implementing the training process
 Training at work
 Training outside the workplace
Training outside the workplace
 Case study method
 Seminar method
 Programs cooperate with universities
 Estimating annual training cost

Year

1 2.... n

A. Training in a
foreign country
B. Training in
Vietnam
Total
Labor cost
 Human costs include the cost of basic salary,
allowances, bonuses, welfare and training cost,
recruitment cost.
 Estimating annual salary costs
Năm
1 2 3 4 ... N
Foreign Employee
• Division ...
• Division ...
Total salary cost for foreign
employees
Vietnamese Employee
• Division ...
• Division ...
Total salary cost for Vietnamese
employees
Total salary cost of the project