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Project Management Module 01

The document provides an introduction to Project Management, detailing its definitions, characteristics, and the differences between projects and standard business operations. It outlines the processes involved in project management, including initiation, planning, execution, monitoring, and closure, along with the critical success factors and reasons for project termination. Additionally, it covers the importance of effective project management in meeting business objectives and stakeholder expectations.

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jerjacmat
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0% found this document useful (0 votes)
4 views74 pages

Project Management Module 01

The document provides an introduction to Project Management, detailing its definitions, characteristics, and the differences between projects and standard business operations. It outlines the processes involved in project management, including initiation, planning, execution, monitoring, and closure, along with the critical success factors and reasons for project termination. Additionally, it covers the importance of effective project management in meeting business objectives and stakeholder expectations.

Uploaded by

jerjacmat
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Agnel Charities

FR. C. Rodrigues Institute of Technology


Agnel Technical Education Complex, Sector 9-A, Vashi, Navi Mumbai, Maharashtra, India-400703.
(An Autonomous Institute & Permanently Affiliated to University of Mumbai)

Course Name: Project Management (BE SEM - VIII)


Subject Code: ILO-8021

Module 1
Amar Murumkar
Assistant Professor,
Mechanical Engineering Department,
FCRIT, Vashi, Navi Mumbai.

2/20/2026 1. Introduction to Project Management 1


Contents
• Definition of a project,
• Project Vs Operations,
• Necessity of project management,
• Triple constraints,
• Project life cycles (typical & atypical)
• Project phases and stage gate process.
• Role of project manager,
• Negotiations and resolving conflicts,
• Project management in various organization structures,
• PM knowledge areas as per Project Management Institute
(PMI)

2/20/2026 1. Introduction to Project Management 2


Project Definitions
A project is a temporary endeavor undertaken to
create a unique product or service.

A project is a non routine series of tasks directed


toward a goal.

A project is a combination of human and nonhuman


resources pulled together in a temporary
organization to achieve a specified purpose.

2/20/2026 1. Introduction to Project Management 3


Fulfillment of project objectives may produce one or more of
the following deliverables:
• A unique product that can be either a component of another
item, an enhancement or correction to an item, or a new
end item in itself (e.g., the correction of a defect in an end
item);
• A unique service or a capability to perform a service (e.g., a
business function that supports production or distribution);
• A unique result, such as an outcome or document (e.g., a
research project that develops knowledge that can be used
to determine whether a trend exists or a new process will
benefit society); and
• A unique combination of one or more products, services, or
results (e.g., a software application, its associated
documentation, and help desk services).

2/20/2026 1. Introduction to Project Management 4


Examples of projects
• Developing a new pharmaceutical compound for market,
• Expanding a tour guide service,
• Merging two organizations,
• Improving a business process within an organization,
• Acquiring and installing a new computer hardware
system for use in an organization,
• Exploring for oil in a region,
• Modifying a computer software program used in an
organization,
• Conducting research to develop a new manufacturing
process, and
• Constructing a building or facility.

2/20/2026 1. Introduction to Project Management 5


Examples of projects
• Pyramids of Giza,
• Organizing Olympic games,
• Great Wall of China,
• Taj Mahal,
• Publication of a book,
• Panama Canal,
• Development of commercial jet airplanes,
• Human beings landing on the moon,
• Commercial software applications,
• Placement of the International Space Station into Earth’s orbit.
• Developing new transportation facility like train route, metro,
hyperloop etc.
• New product development

2/20/2026 1. Introduction to Project Management 6


Difference between Projects & standard
business activities (Operations)
• Projects are unique in nature
• Projects have a defined timescale
• Projects have an approved budget
• Projects have limited resources
• Projects involve an element of risk
• Projects achieve beneficial changes
• Competencies of Project Manager are essential
• Standards and certifications

2/20/2026 1. Introduction to Project Management 7


Characteristics of projects
• The are complex and unique
• They have a clear goal or set of goals
• They are limited by budget, schedule and
resources
• They are customer focussed

2/20/2026 1. Introduction to Project Management 8


Key Stakeholders of Projects
• Project Manager
• Customer/User
• Performing organization
• Project team members
• Project management team
• Sponsor
• Influencers

2/20/2026 1. Introduction to Project Management 9


Critical Success Factors for project

2/20/2026 1. Introduction to Project Management 10


Reasons for Project Termination
The temporary nature of projects indicates that a project has a definite
beginning and end. Temporary does not necessarily mean a project has a
short duration. The end of the project is reached when one or more of the
following is true:
• The project’s objectives have been achieved;
• The objectives will not or cannot be met;
• Funding is exhausted or no longer available for allocation to the
project;
• The need for the project no longer exists (e.g., the customer no
longer wants the project completed, a change in strategy or priority
ends the project, the organizational management provides direction
to end the project);
• The human or physical resources are no longer available; or
• The project is terminated for legal cause or convenience.
2/20/2026 1. Introduction to Project Management 11
Project Management
Project management is the application of
knowledge, skills, tools, and techniques to project
activities to meet the project requirements.
Project management is accomplished through the
appropriate application and integration of the
project management processes identified for the
project.
Project management enables organizations to
execute projects effectively and efficiently.

2/20/2026 1. Introduction to Project Management 12


Project Management
Project management is accomplished through the
use of the following 5 processes:
• Initiation
• Planning
• Execution
• Monitoring and Controlling
• Closure

2/20/2026 1. Introduction to Project Management 13


Process of Project Management

2/20/2026 1. Introduction to Project Management 14


History of project management
• Concept of PM began with Manhattan project, led by US
military to develop atomic bomb which lasted for three
years and cost around $2 billion in 1946
• Henry Gantt developed the famous Gantt chart in 1917, as
a tool for scheduling work in factories which provided a
standard format for planning & reviewing all the work in
early military projects.
• Members of US Navy submarine project first used
network diagrams in 1958 which helped managers to
model the relationship among project tasks to create more
realistic schedules.

2/20/2026 1. Introduction to Project Management 15


Effective project management
• Meet business objectives;
• Satisfy stakeholder expectations;
• Be more predictable;
• Increase chances of success;
• Deliver the right products at the right time;
• Resolve problems and issues;
• Respond to risks in a timely manner;
• Optimize the use of organizational resources;
• Identify, recover, or terminate failing projects;
• Manage constraints (e.g., scope, quality, schedule, costs, resources);
• Balance the influence of constraints on the project (e.g., increased
scope may increase cost or schedule); and
• Manage change in a better manner.
2/20/2026 1. Introduction to Project Management 16
Poor/Absence of project
management
• Missed deadlines,
• Cost overruns,
• Poor quality,
• Rework,
• Uncontrolled expansion of the project,
• Loss of reputation for the organization,
• Unsatisfied stakeholders, and
• Failure in achieving the objectives for which the project was
undertaken.

2/20/2026 1. Introduction to Project Management 17


Triple constraint of project
management
• Scope goals
• Time goals
• Cost goals

2/20/2026 1. Introduction to Project Management 18


Project Management process groups

2/20/2026 1. Introduction to Project Management 19


Initiating process group
• Develop a project charter
• Develop preliminary project scope statement

2/20/2026 1. Introduction to Project Management 20


Planning Process Group
• Develop project management plan
• Scope planning & Scope definition
• Create WBS
• Activity definition & Activity sequencing
• Activity resource estimation
• Activity duration estimation
• Schedule Development
• Cost estimating & Cost budgeting
• Quality planning
• HR planning
• Communication planning
• Risk management planning
42 /20/2025
2/20/2026 1. Introduction to Project Management 21
21
Executing process group
• Direct & manage project execution
• Perform quality assurance
• Acquire project team
• Develop project team
• Information distribution
• Request seller response
• Select sellers

2/20/2026 1. Introduction to Project Management 22


Monitoring & controlling process
group
• Monitor & control project work
• Integrated change control
• Scope verification
• Scope control
• Schedule control
• Cost control
• Perform quality control
• Manage project team
• Performance reporting
• Manage stakeholders
• Risk monitoring & control
• Contract administration
2/20/2026 1. Introduction to Project Management 23
Closing process group
• Close project
• Contract closure

2/20/2026 1. Introduction to Project Management 24


2/20/2026 1. Introduction to Project Management 25
Project Integration Management
Project Integration Management includes the processes
and activities to identify, define, combine, unify, and
coordinate the various processes and project management
activities within the Project Management Process Groups.
1. Develop project charter
2. Develop project management plan
3. Direct & manage project execution
4. Monitor & control project work
5. Perform Integrated change control
6. Close project or Phase

2/20/2026 1. Introduction to Project Management 26


Project Integration Management
1. Develop Project Charter—The process of developing a document that formally authorizes
the existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.
2. Develop Project Management Plan—The process of defining, preparing, and coordinating
all subsidiary plans and integrating them into a comprehensive project management plan. The
project’s integrated baselines and subsidiary plans may be included within the project
management plan.
3. Direct and Manage Project Work—The process of leading and performing the work defined
in the project management plan and implementing approved changes to achieve the project’s
objectives.
4. Monitor and Control Project Work—The process of tracking, reviewing, and reporting
project progress against the performance objectives defined in the project management plan.
5. Perform Integrated Change Control—The process of reviewing all change requests;
approving changes and managing changes to deliverables, organizational process assets, project
documents, and the project management plan; and communicating their disposition.
6. Close Project or Phase—The process of finalizing all activities across all of the Project
Management Process Groups to formally complete the phase or project.

2/20/2026 1. Introduction to Project Management 27


Project Scope Management
Project Scope Management includes the processes required to
ensure that the project includes all the work required, and only
the work required, to complete the project successfully.
Managing the project scope is primarily concerned with
defining and controlling what is and is not included in the
project.
1. Plan Scope Management
2. Collect requirements
3. Define Scope
4. Create WBS
5. Validate Scope
6. Control Scope

2/20/2026 1. Introduction to Project Management 28


Project Scope Management
1. Plan Scope Management—The process of creating a scope management
plan that documents how the project scope will be defined, validated, and
controlled.
2. Collect Requirements—The process of determining, documenting, and
managing stakeholder needs and requirements to meet project objectives.
3. Define Scope—The process of developing a detailed description of the
project and product.
4. Create WBS—The process of subdividing project deliverables and
project work into smaller, more manageable components.
5. Validate Scope—The process of formalizing acceptance of the
completed project deliverables.
6. Control Scope—The process of monitoring the status of the project and
product scope and managing changes to the scope baseline.

2/20/2026 1. Introduction to Project Management 29


Project Time Management
Project Time Management includes the
processes required to manage the timely completion
of the project.
1. Plan Schedule Management
2. Define Activities
3. Sequence Activities
4. Estimate Activity Resources
5. Estimate Activity Durations
6. Develop Schedule
7. Control Schedule
2/20/2026 1. Introduction to Project Management 30
Project Time Management
1. Plan Schedule Management—The process of establishing the policies, procedures,
and documentation for planning, developing, managing, executing, and controlling the
project schedule.
2. Define Activities—The process of identifying and documenting the specific actions
to be performed to produce the project deliverables.
3. Sequence Activities—The process of identifying and documenting relationships
among the project activities.
4. Estimate Activity Resources—The process of estimating the type and quantities of
material, human resources, equipment, or supplies required to perform each activity.
5. Estimate Activity Durations—The process of estimating the number of work
periods needed to complete individual activities with estimated resources.
6. Develop Schedule—The process of analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the project schedule model.
7. Control Schedule—The process of monitoring the status of project activities to
update project progress and manage changes to the schedule baseline to achieve the
plan.
2/20/2026 1. Introduction to Project Management 31
Project Cost Management
Project Cost Management includes the processes
involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs
so that the project can be completed within the
approved budget.
1. Plan Cost Management
2. Estimate Costs
3. Determine Budget
4. Control Costs

2/20/2026 1. Introduction to Project Management 32


Project Cost Management
1. Plan Cost Management—The process that
establishes the policies, procedures, and documentation
for planning, managing, expending, and controlling
project costs.
2. Estimate Costs—The process of developing an
approximation of the monetary resources needed to
complete project activities.
3. Determine Budget—The process of aggregating the
estimated costs of individual activities or work packages
to establish an authorized cost baseline.
4. Control Costs—The process of monitoring the status
of the project to update the project costs and managing
changes to the cost baseline.
2/20/2026 1. Introduction to Project Management 33
Project Quality management
Project Quality Management includes the processes and
activities of the performing organization that determine quality
policies, objectives, and responsibilities so that the project will
satisfy the needs for which it was undertaken. Project Quality
Management uses policies and procedures to implement,
within the project’s context, the organization’s quality
management system and, as appropriate, it supports
continuous process improvement activities as undertaken on
behalf of the performing organization.
1. Quality planning
2. Perform quality assurance
3. Perform quality control

2/20/2026 1. Introduction to Project Management 34


Project Quality management
1. Plan Quality Management—The process of identifying
quality requirements and/or standards for the project and its
deliverables and documenting how the project will
demonstrate compliance with quality requirements.
2. Perform Quality Assurance—The process of auditing
the quality requirements and the results from quality control
measurements to ensure that appropriate quality standards
and operational definitions are used.
3. Control Quality—The process of monitoring and
recording results of executing the quality activities to assess
performance and recommend necessary changes.

2/20/2026 1. Introduction to Project Management 35


Project Human Resource
Management
Project Human Resource Management includes the
processes that organize, manage, and lead the project
team. The project team is comprised of the people with
assigned roles and responsibilities for completing the
project. Project team members may have varied skill sets,
may be assigned full or part-time, and may be added or
removed from the team as the project progresses.
1. Plan HR Management
2. Acquire Project Team
3. Develop Project Team
4. Manage Project team
2/20/2026 1. Introduction to Project Management 36
Project Human Resource
Management
1. Plan Human Resource Management—The process of
identifying and documenting project roles, responsibilities,
required skills, reporting relationships, and creating a staffing
management plan.
2. Acquire Project Team—The process of confirming human
resource availability and obtaining the team necessary to
complete project activities.
3. Develop Project Team—The process of improving
competencies, team member interaction, and overall team
environment to enhance project performance.
4. Manage Project Team—The process of tracking team
member performance, providing feedback, resolving issues,
and managing changes to optimize project performance.

2/20/2026 1. Introduction to Project Management 37


Project Communication
Management
Project Communications Management includes
the processes that are required to ensure timely
and appropriate planning, collection, creation,
distribution, storage, retrieval, management,
control, monitoring, and the ultimate disposition
of project information.
1. Plan Communication Management
2. Manage Communications
3. Control Communications
2/20/2026 1. Introduction to Project Management 38
Project Communication
Management
1. Plan Communications Management—The process of
developing an appropriate approach and plan for project
communications based on stakeholder’s information needs
and requirements, and available organizational assets.
2. Manage Communications—The process of creating,
collecting, distributing, storing, retrieving and the ultimate
disposition of project information in accordance with the
communications management plan.
3. Control Communications—The process of monitoring
and controlling communications throughout the entire
project life cycle to ensure the information needs of the
project stakeholders are met.

2/20/2026 1. Introduction to Project Management 39


Project Risk Management
Project Risk Management includes the processes of
conducting risk management planning, identification, analysis,
response planning, and controlling risk on a project. The
objectives of project risk management are to increase the
likelihood and impact of positive events, and decrease the
likelihood and impact of negative events in the project.
1. Plan Risk Management
2. Identify Risks
3. Perform Qualitative Risk Analysis
4. Perform Quantitative Risk Analysis
5. Plan Risk Responses
6. Control Risks

2/20/2026 1. Introduction to Project Management 40


Project Risk Management
1. Plan Risk Management—The process of defining how to conduct
risk management activities for a project.
2. Identify Risks—The process of determining which risks may affect
the project and documenting their characteristics.
3. Perform Qualitative Risk Analysis—The process of prioritizing risks
for further analysis or action by assessing and combining their probability
of occurrence and impact.
4. Perform Quantitative Risk Analysis—The process of numerically
analyzing the effect of identified risks on overall project objectives.
5. Plan Risk Responses—The process of developing options and
actions to enhance opportunities and to reduce threats to project objectives.
6. Control Risks—The process of implementing risk response plans,
tracking identified risks, monitoring residual risks, identifying new risks,
and evaluating risk process effectiveness throughout the project.
2/20/2026 1. Introduction to Project Management 41
Project Procurement Management
Project Procurement Management includes the
processes necessary to purchase or acquire products,
services, or results needed from outside the project
team. The organization can be either the buyer or
seller of the products, services, or results of a
project.
1. Plan Procurement Management
2. Conduct Procurements
3. Control Procurement
4. Close Procurement

2/20/2026 1. Introduction to Project Management 42


Project Procurement Management
1. Plan Procurement Management—The process of
documenting project procurement decisions, specifying the
approach, and identifying potential sellers.
2. Conduct Procurements—The process of obtaining seller
responses, selecting a seller, and awarding a contract.
3. Control Procurements—The process of managing
procurement relationships, monitoring contract
performance, and making changes and corrections as
appropriate.
12.4 Close Procurements—The process of completing each
project procurement.

2/20/2026 1. Introduction to Project Management 43


Project Stakeholder Management
Project Stakeholder Management includes the
processes required to identify the people, groups, or
organizations that could impact or be impacted by the
project, to analyze stakeholder expectations and their
impact on the project, and to develop appropriate
management strategies for effectively engaging
stakeholders in project decisions and execution.
1. Identify Stakeholders
2. Plan Stakeholder Management
3. Manage Stakeholder Engagement
4. Control Stakeholder Engagement

2/20/2026 1. Introduction to Project Management 44


Project Stakeholder Management
1. Identify Stakeholders—The process of identifying the people, groups, or
organizations that could impact or be impacted by a decision, activity, or
outcome of the project; and analyzing and documenting relevant information
regarding their interests, involvement, interdependencies, influence, and
potential impact on project success.
2. Plan Stakeholder Management—The process of developing appropriate
management strategies to effectively engage stakeholders throughout the
project life cycle, based on the analysis of their needs, interests, and potential
impact on project success.
3. Manage Stakeholder Engagement—The process of communicating and
working with stakeholders to meet their needs/expectations, address issues as
they occur, and foster appropriate stakeholder engagement in project activities
throughout the project life cycle.
4. Control Stakeholder Engagement—The process of monitoring overall
project stakeholder relationships and adjusting strategies and plans for
engaging stakeholders.

2/20/2026 1. Introduction to Project Management 45


Stage Gate Process
• A stage-gate system is both a conceptual and an
operational model for moving a project from idea to
launch.
• It is a blueprint for managing the project processes to
improve effectiveness and efficiency.
• Although conceptually quite simple, the intricacies,
design, and operationalization of stage-gate
approaches are considerably more complex.
• Stage-gate systems simply apply process-management
methodologies to manage the project effectively.

2/20/2026 1. Introduction to Project Management 46


Stage Gate Process
• A project is sub-divided into a number of stages or work
stations. Between each work station or stage, there is a
quality control checkpoint or gate.
• A set of deliverables is specified for each gate, as is a set of
quality criteria that the product must pass before moving to
the next work station.
• The stages are where the work is done; the gates ensure
that the quality is sufficient.
• Usually stage-gate systems involve from four to seven
stages and gates, depending on the company or division.
Each stage is usually more expensive than the preceding
one. Concurrently, information becomes better and better,
so risk is managed

2/20/2026 1. Introduction to Project Management 47


Stage Gate Process
• The entrance to each stage is a gate; these gates control the process, much
like quality control checkpoints control the production process.
• Each gate is characterized by a set of deliverables or inputs, a set of exit
criteria, and an output. The inputs are the deliverables that the project
leader must bring to the gate.
• The criteria are the items upon which the project will be judged, the
hurdles that the project must pass at that gate to have the gate opened to
the next stage.
• The outputs are the decisions at the gate, typically a
Go/Kill/Hold/Recycle decision, and the approval of an action plan for the
next stage.
• Each project leader is required to provide the specified deliverables and
meet the stated criteria at a given gate.
• Gates are manned by senior managers who act as "gatekeepers." This
gatekeeping group is typically multidisciplinary and multifunctional, and
its members are senior enough to have the authority to approve the
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Essential skills & competencies for
Project Manager
• People skills
• Leadership
• Listening
• Integrity, ethical behavior, consistent
• Strong at building trust
• Verbal communication
• Strong at building teams
• Conflicts management
• Critical thinking, problem solving
• Understands, balances priorities
• Negotiations
• Political and Cultural Awareness
• Decision Making
• Influencing
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Advantages of Project Management
• Better control of financial, physical & human
resources
• Improved customer relations
• Shorter development times
• Lower costs & increased reliability
• Higher profit margins
• Better internal coordination
• Positive impact on meeting strategic goals
• Higher worker morale
2/20/2026 1. Introduction to Project Management 51
Project Management in the Various
Organizational Structures
• Functional Organizational structure,
• Pure Project Organizational structure and
• Matrix organizational structure

2/20/2026 1. Introduction to Project Management 52


Functional Organizational structure

• For functionally organized projects, the project


is assigned to the functional unit that has the
most interest in ensuring its success or can be
most helpful in implementing it.

2/20/2026 1. Introduction to Project Management 53


2/20/2026 1. Introduction to Project Management 54
Functional Organizational structure
Advantages
• There is maximum flexibility in the use of staff.
• Individual experts can be utilized by many different
projects.
• Specialists in the division can be grouped to share
knowledge and experience.
• The functional division also serves as a base of
technological continuity when individuals choose to leave
the project, and even the parent firm.
• the functional division contains the normal path of
advancement for individuals whose expertise is in the
functional area.

2/20/2026 1. Introduction to Project Management 55


Functional Organizational structure
Disadvantages
• A primary disadvantage of this arrangement is that the client is not
the focus of activity and concern. The functional unit has its own
work to do, which usually takes precedence over the work of the
project, and hence over the interests of the client.
• The functional division tends to be oriented toward the activities
particular to its function. It is not usually problem oriented in the
sense that a project should be to be successful.
• Lack of coordinated effort tend to make response to client needs
slow and difficult.
• The motivation of people assigned to the project tends to be weak.
• Such an organizational arrangement does not facilitate a holistic
approach to the project.
• Only
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Pure Project Organizational
structure
• The project is separated from the rest of the
parent system.
• It becomes a self-contained unit with its own
technical staff, its own administration, tied to
the parent firm by the strands of periodic
progress reports and oversight.

2/20/2026 1. Introduction to Project Management 57


Pure Project Organizational
structure

2/20/2026 1. Introduction to Project Management 58


Pure Project Organizational
structure
Advantages
• The project manager has full line authority over the project. The PM is
like the CEO of a firm that is dedicated to carrying out the project.
• All members of the project work force are directly responsible to the
PM. There are no functional division heads whose permission must be
sought or whose advice must be heeded before making technological
decisions. The PM is truly the project director.
• The shortened communication lines result in faster communications with
fewer failures.
• Motivation is high and acts to foster the task orientation.
• Because authority is centralized, the ability to make instant decisions is
greatly enhanced.
• Pure project organizations are structurally simple which makes them
relatively easy to understand and to implement.
• The organizational structure tends to support a holistic approach to the
project.

2/20/2026 1. Introduction to Project Management 59


Pure Project Organizational
structure
Disadvantages
• This can lead to considerable duplication of effort in every area from
clerical staff to the most sophisticated (and expensive) technological
support units.
• People with critical technical skills may be hired by the project when
they are available rather than when they are needed.
• Disadvantages 1 and 2 combine to make the organization of projects
very expensive.
• Though individuals engaged with projects develop considerable depth in
the technology of the project, they tend to fall behind in other areas of
their technical expertise.
• In pure project organizations, the project takes on a life of its own.
Friendly rivalry may become bitter competition.
• There is considerable uncertainty about what will happen with the
project team when the project is completed.

2/20/2026 1. Introduction to Project Management 60


Matrix Organizational structure
• The matrix organization is a combination of the two. It is a pure
project organization overlaid on the functional divisions of the
parent firm.
• Being a combination of pure project and functional organization
structures, a matrix organization can take on a wide variety of
specific forms, depending on which of the two extremes (functional
or pure project) it most resembles.
• The “project” or “strong” matrix most resembles the pure project
organization.
• The “functional” or “weak” matrix most resembles the functional
form of organization.
• Finally, the “balanced” matrix lies in between the other two.
• The PM controls when and what these people will do, while the
functional managers control who will be assigned to the project and
what technology will be used.

2/20/2026 1. Introduction to Project Management 61


2/20/2026 1. Introduction to Project Management 62
Matrix Organizational structure
Advantages
• Because the project organization is overlaid on the functional divisions,
temporarily drawing labor and talent from them, the project has reasonable
access to the entire reservoir of technology in all functional divisions. When
there are several projects, the talents of the functional divisions are available to
all projects, thus sharply reducing the duplication required by the pure project
structure.
• There is less anxiety about what happens when the project is completed than is
typical of the pure project organization. Even though team members tend to
develop a strong attachment for the project, they also feel close to their
functional “home.”
• Response to client needs is as rapid as in the pure project case, and the matrix
organization is just as flexible. Similarly, the matrix organization responds
flexibly and rapidly to the demands made by those inside the parent
organization.
• Where there are several projects simultaneously under way, matrix organization
allows a better companywide balance of resources to achieve the several
different time/cost/performance targets of the individual projects.

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Matrix Organizational structure
Disadvantages
• If the project is successful and highly visible, doubt about who is in
charge can foster political infighting for the credit and glory. If the
project is a failure, political infighting will be even more brutal to avoid
blame.
• The movement of resources from project to project in order to satisfy the
several schedules may foster political infighting among the several PMs,
all of whom tend to be more interested in ensuring success for their
individual projects than in helping the total system optimize
organizationwide goals.
• The ability of the PM to negotiate anything from resources to technical
assistance to delivery dates is a key contributor to project success.
Success is doubtful for a PM without strong negotiating skills.
• Matrix management violates the management principle of unity of
command. Project workers have at least two bosses, their functional
heads and the PM.

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Conflicts in Project Management
• Conflict arises when people working on the same project
have somewhat different ideas about how to achieve project
objectives.
• The process of planning a project usually requires inputs
from many people. Even when the project is relatively small
and simple, planning involves the interaction of almost
every functional and staff operation in the organization. It is
virtually impossible for these interactions to take place
without conflict.
• All stages of the project life cycle appear to be typified by
conflict. These conflicts center on such matters as
schedules, priorities, staff and labor requirements, technical
factors, administrative procedures, cost estimates, and,
personality conflicts.
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Categories of Conflicts in Project
Management
The conflicts fall into three fundamentally
different categories:
1. Groups working on the project may have
different goals and expectations.
2. There is considerable uncertainty about who has
the authority to make decisions.
3. There are interpersonal conflicts between
people who are parties-at-interest in the project.

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Conflicts in Project Management

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Negotiations to resolve conflicts
• Negotiation is the process through which two
or more parties seek an acceptable rate of
exchange for items they own or control.
• Negotiation is a field of knowledge and
endeavor that focuses on gaining the favor of
people from whom we want things.
• Negotiating to a win-win solution is the key to
conflict resolution in project management.

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Negotiations Requirements
• One requirement for the conflict reduction/resolution
methods used by the PM is that they must allow the conflict
to be settled without irreparable harm to the project’s
objectives.
• A second requirement for the conflict resolution/reduction
methods used by the PM is that they allow (and foster)
honesty between the negotiators.
• The conflicting parties-at-interest to a project are not
enemies or competitors, but rather allies—members of an
alliance with strong common interests. It is a requirement of
all conflicting parties to seek solutions to the conflict that
not only satisfy their own individual needs, but also satisfy
the needs of other parties to the conflict, as well as the
needs of the parent organization.
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Negotiations Techniques
• Separate the people from the problem.
• Focus on interests, not positions.
• Before trying to reach agreement, invent
options for mutual gain.
• Insist on using objective criteria.

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Existing Standards & Certification
Standards-
• PMBOK (Project Management Body Of Knowledge)-
approved as American National Standard (ANS) by
American National Standard Institute (ANSI)
• PRINCE (PRojects IN Controlled Environment)-
Approved by UK Govt
Certification-
CAPM (Certified Associate in Project Management) by
Project Management Institute (PMI)
PMP(Project Management Professional) by Project
Management Institute (PMI)

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References
• Guide to Project management Body of
Knowledge (PMBOK Guide), fifth edition,
Project Management Institute, 2013
• Jack Meredith, Samual Mantel (2009) Project
Management: A managerial approach, 7th
Edition.
• Robert Cooper (1990), Stage-Gate Systems: A
New Tool for Managing New Products, Business
Horizons (may-June) pp. 44-54

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