Text 8. Project Management




Modern corporations are ideal for project management as they can organise business into several functional departments or project teams to carry out certain objectives. In such devisions conflicts are minimal as people work in small teams and it is easier to train and manage them. Working in team creates a sense of collective responsibility. Everyone shares in success, learns from mistakes, and works on the same project. There is more harmony, less competition, more support and less isolation. There is a better balance between time, cost and performance. Authority and responsibility are shared among the team. A project manager supervises the team engaged into the project and motivates team members to achieve the agreed goals. He is also responsible for summarizing the work of the team and reports directly to General Manager or CEO. No matter what project it is, project managers follow the same pattern: conceptualisation, definition, planning, execution, control, closure.

Conceptualisation is the first stage in the project life cycle. Conceptualisation is the idea, thought, initial plan, or the first stage of thinking a manager should make to work out a plan for solving the existing problems. The concept may be to set up a new project or to expand the existing operation or to replace it with new technologies.

Definition comprises refinements of the elements described in the conception phase. All sub-systems and elements of the proposed system are scrutinized and defined.

Planning is another important aspect in project management. It includes rendition of plans, identification and management of required resources, manifestation and determination of production.

The operational stage comprises the actual linking of project service to the system, evaluation of technical resources of the project and the adequacy of project supporting.

Feasibility study report is always prepared to support the investment proposal. It is the primary report for the formulation of the investment proposal. Risks have to be analysed at each stage of the project. The impact of risk at each stage of the project should be tracked. Continuous risk assessment is also necessary. Usually a special committee is formed to analyse, identify and track the risks involved in any project. The areas of the project that are identified as risks are reported and recorded.

Answer the questions:

1. How can modern corporations organise their business?

2. What positive factors of working in team can you name?

3. Why are conflicts minimal in project teams?

4. What is a project manager responsible for?

5. What pattern do project managers usually follow?

6. What does conceptualisation aspect comprise?

7. What problems are solved at the stage of definition the project?

8. Why is planning important for project management?

9. What happens at the operational stage of project making?

10. What type of report is prepared to support the investment proposal?



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