MB0049 Q2 : Compare the following:

a. Traditional Vs. Projectised Organization

b. Reengineering Vs. E-engineering
Comparison between traditional and projectised organisation
1raditional organizations Projectised organizations
They have the Iormal organisation structure,
with departments, Iunctions, sections having a
hierarchy oI managers and their assistants.
They have teams comprising members who are
responsible Ior completing one entire deliverable
product.
All oI the managers Iunction on a continuous
basis catering to a series oI requirements issued
by the planning department.
The teams will have all the resources required to
Iinish the jobs.
An assembly oI various units oI their
production Iorms a products and a variety oI
such products make up the business oI the
company.
They have a time schedule within which all the
elements oI the projects have to be completed.
No particular member or a department or a
team is responsible Ior the completion oI any
particular product. Their creativity and
innovation is in particular respect oI their jobs.
There is greater accountability among team
members and everyone is responsible Ior the
delivery.
Most oI the members do not get exposed to
other areas oI operations in the organisation.
They become specialists and insular.
It is Iound that a sense oI ownership` oI the
project motivates team members to be creative,
cooperative among them to achieve high
productivity.
Reengineering Vs. E-engineering
Reengineering:
This is a process by which managers redesign a bundle oI tasks into roles and Iunctions so that
organisational eIIectiveness is achieved. By doing so dramatic improvements in critical measures
oI perIormance like cost, quality and service are expected. There will be a radical rethink about
the business processes adopted.
A business process may be oI any activity like inventory control, product design, orders
processing, and delivery systems. No reIerence is taken to the existing process and an entirely
new process is adopted. The Iollowing rules Ior reengineering are eIIective:
O Make changes with the outcome in mind not the tasks that result in them.
O Make the users oI the results oI the process eIIect the change.
O et the people on the spot decide on the solution decentralise.
E-Engineering:
The term E-Engineering reIers to the attempts oI companies to make use oI all kinds oI
inIormation systems, to make their Iunctions eIIicient. New inIormation systems are installed Ior
conducting all business processes in the organisation. The use oI electronic communication
within the organisation enables Irequent interactions between employees and results in better
communication.
Typically meetings require their presence, but with teleconIerencing a lot oI time and money is
saved. Data have repositories which are accessible, transIerable and updatable instantly and used
by all concerned. Cross-Iunctional workIlows make it easier to coordinate activities. The
increase in eIIiciency makes the organisation meet customers` requirements Iaster. All these
result in widespread utilisation oI knowledge in the organisation. It helps in creating and making
available high quality oI inIormation. The inIormation system also comprises oI intranet and
internet solutions to carry on their regular activities online.
MB0049 Q3 : List out the macro issues in project management and explain each.
Answer : Macro Issues in project management:
Evolving Key Success Factors (KSF) Upfront: In order to provide complete stability to
IulIilment oI goals, a project manager needs to constantly evaluate the key success Iactors Irom
time to time. While doing so, he needs to keep the Iollowing aspects oI KSFs in mind:
O The KSF should be evolved based on a basic consensus document (BCD).
O KSF will also provide an input to eIIective exit strategy (EES). Exit here does not mean
exit Irom the project but Irom any oI the drilled down elemental activities which may
prove to be hurdles rather than contributors.
O Broad level oI KSF should be available at the conceptual stage and should be Iirmed up
and detailed out during the planning stage. The easiest way would be Ior the team to
evaluate each step Ior chances oI success on a scale oI ten.
O KSF should be available to the management duly approved by the project manager
beIore execution and control stages.
O KSF rides above normal consideration oI time and cost at the levels encompassing
client expectation and management perception time and cost come into play as
subservient to these major goals.
Empowerment Title (ET): ET reIlects the relative importance oI members oI the organisation
at three levels:
O Team members are empowered to work within limits oI their respective allocated
responsibilities. The major change Irom bureaucratic systems is an expectation Irom
these members to innovate and contribute to time and cost.
O roup leaders are empowered additionally to act independently towards client
expectation and are also vested with some limited Iinancial powers.
O Managers are empowered Iurther to act independently but to maintain a scientiIic balance
among time, cost, expectation and perception, apart Irom being a virtual advisor to the
top management.
Partnering Decision Making (PDM): PDM is a substitute to monitoring and control. A senior
with a better decision making process will work closely with the project managers as well as
members to plan what best can be done to manage the Iuture better Irom past experience. The
key here is the active participation oI members in the decision making process. The ownership is
distributed among all irrespective oI levels the term equally should be avoided here since
ownership is not quantiIiable. The right Ieeling oI ownership is important.
This step is most diIIicult since junior members have to respond and resist being pushed through
sheer innovation and perIormance this is how Iuture leaders would emerge. The PDM process
is made scientiIic through:
O Earned value management system (EVMS)
O Budgeted cost oI work scheduled (BCWS)
O Budgeted cost oI work perIormed (BCWP)
O Actual cost oI work perIormed (ACWP)
Management by Exception (MBE): 'No news is good news. II a member wants help he or she
locates a source and proposes to the manager only iI such help is not accessible Ior Iree.
Similarly, a member should believe that a team leader`s silence is a sign oI approval and should
not provoke comments through excessive seeking oI opinions. In short leave people alone and let
situation perIorm the demanding act.
The bend limit oI MBE can be evolved depending on the sensitivity oI the nature and size oI the
project. MBE provides and Iacilitates better implementation oI eIIectiveness oI empowerment
titles. MBE is more important since organisations are moving toward multi-skilled Iunctioning
even at junior most levels.

MB0049 Q4 : List and explain the traits if a professional manager.
Answer : The project manager is an important team member who oIten makes the diIIerence
between project success and Iailure. A project manager should have the skills to unite diverse
individuals and have them Iunction as one cohesive team. There are certain traits that enable a
manager to be eIIective in his Iunctioning. The top management will look Ior these in a person
who they want to employ Ior project management. et us discuss some oI these traits in detail.
a) Leadership: These managers lead by exhibiting the characteristics oI leadership. They know
what they should do, know why they are doing it, how to do it and have the courage and vision to
execute it. They have the power oI taking along others with them. They lead by making
themselves as an example Ior the entire team. He is about to trust his team members and assign
the right job to the right person.
b) People Relationships: Any leader without Iollowers cannot be successIul. They need to have
excellent human relationship skills. The manager should:
O build up his team based on the core values oI sincerity, objectivity, dedication and ethics
O ensure that his subordinates get opportunities Ior growth based on perIormance
O make his subordinates a part oI the decision making process, thus ensuring cooperation
and commitment during implementation
O delegate Ireely and support them and give enough room Ior expression oI thoughts and
also make things challenging Ior team members
O keep aspirations oI the team members into considerations
c) Integrity: Highest levels oI trust, Iairness and honesty are expected while dealing with people
both within and outside the organisation. This includes the customers, shareholders, dealers,
employees, the government and society at large. They ensure that Iunctioning is clean. Their
transactions will be transparent. Ethics is something they practice diligently.
d) Quality: The quality philosophy should not cover only the product quality, but every process
that has gone into making it. Economy oI words when instructions are given, acknowledging
compliance, arriving on time, remembering the promises and above all a keen eye Ior details and
patience to make others know what they want are components oI quality.
e) Customer Orientation: It is now recognised that every organisation has two sets oI
customers internal customers and external customers. Internal customers are people in the
organisation employees, directors and team members. External customers are clients and all
members oI society the company comes in contact in connection with the business.
I) Innovation and creativity: ProIessional managers think beyond the obvious. They exhibit a
keenness to go behind a problem and attempt to Iind the root cause oI the problem. They will
draw Irom their experience Irom diverse Iields, seek Iurther inIormation and consider all possible
alternatives and come out with some new and unique solution. This happens when they have
open minds.
g) Performance Management: The proIessional manager not only ensures that his perIormance
is at peak all times, but motivates his entire team to perIorm the same. This comes by
appreciation and encouragement. In case oI shortIalls, he arranges training Ior them so that their
perIormance improves. Thus the team members know that they are expected to perIorm, that
they get help to do so and their eIIort is recognised and rewarded too. This is the simple path oI
perIormance management.
Managers can Iollow a seven step perIormance management model.
O Set Objectives/PerIormance Standards
O Communicate these to the employees
O #eview/monitor
O Check actual perIormance Vs. Standards set
O IdentiIy gaps
O ointly decide on corrective action, iI needed
O #eset objectives Ior next period
h) Identification with the organisation: A sense oI pride and belonging goes with the
'ownership oI the job, the project, team members and organisation. This is brought about by the
culture and communication system in the organisation. InIormation sharing brings in trust and
promotes belongingness. The tendency seen is that most managers strongly identiIy with their
own departments, units or divisions and they lack a sense oI organisation.
i) Empowering employees: The proIessional manager should possess the ability to empower his
employees down the line. Empowerment is the process by which employees are encouraged to
take decisions pertaining to their area oI work. This leads employees developing a sense oI pride
in their jobs. But managers oIten hesitate to empower their subordinates as they Ieel insecure and
show a sense oI uncertainty. The proIessional manager practices empowerment and encourages
employees to grow and develop in their positions.
j) Coping with changes: There is a saying The only constant in this world is change`. A
proIessional manager has the ability and capacity to cope with change. He accepts the Iact that
change is inevitable and is ready to implement change at the workplace.
To implement change successIully, it is essential that employees are involved in the
implementation oI change. Moreover, the positive and negative consequences oI change need to
be discussed and understood beIore implementation. Thus a proIessional manager has the
attitude to accept change as a way oI liIe and takes it in his stride.