Study Notes: Chapter 1 – What is
Project Management?
1.1 Functions of Management
The role of management is to plan, organize, and integrate resources and tasks to achieve
goals. Despite varying responsibilities, all managers — be they corporate executives, school
administrators, directors, or project managers — perform this same foundational role.
The five primary functions of managers are:
1. Planning: Involves deciding what has to be done and how it will be done. It includes
setting a goal and determining the means to achieve it, while considering higher-level
organizational goals, available resources, and environmental constraints.
2. Organizing: Arranging for the necessary work to be done. This function includes:
- Hiring, training, and forming a team with clearly defined authority and
responsibilities.
- Allocating materials, capital, and other resources.
- Creating an organization structure with proper policies, procedures, and
communication.
3. Leading: Directing and motivating people to achieve the goal. It is about leadership
and inspiration.
4. Controlling: Monitoring progress against the goal. It involves evaluating performance
and taking corrective actions whenever needed to stay aligned with the goal.
5. Evaluating: Assessing the effectiveness of all other functions. It is about checking
whether goals and plans need to be revised based on performance feedback.
All functions focus on achieving the set goal. On a daily basis, managers must integrate
planning, organizing, leading, controlling, and evaluating to manage complex, evolving work
environments. As situations and goals change, so too must the manager’s leadership style,
strategy, and execution.
1.2 Features of Project Management
Project management is considered a systems approach to management. A system refers to a
collection of interrelated components or elements that work together to achieve a common
purpose or goal. Within this approach, project management focuses on optimizing the entire
system, rather than individual parts, to ensure goal attainment. It involves planning,
organizing, leading, and controlling—all key functions of management.
Projects differ from routine or non-project work. Routine operations such as manufacturing
or regular services involve repetitive tasks with minimal uncertainty or variation. In
contrast, project work is unique, temporary, and more uncertain. Projects are created for
specific outcomes and involve a cross-functional team that must be managed with
specialized tools and methods to reduce risk and ensure success.
Key Features of Project Management:
1. A single person, the project manager, leads the project organization and operates outside
the traditional hierarchical structure. This reflects the cross-functional and goal-oriented
nature of project teams.
2. Each project requires a unique mix of skills and resources. Consequently, projects often
draw from different functional areas or contractors.
3. The project manager integrates the work from multiple departments or contractors into a
unified effort.
4. The project manager works closely with functional managers or contractors responsible
for delivering specific work tasks.
5. Team members may report to both a project manager and a functional manager due to
dual command structures.
1.3 Evolution of Project Management
Project management's evolution is closely tied to military and space programs, with early
techniques traceable to major ancient construction works. Tools such as the Gantt chart
emerged in World War I for scheduling and tracking. By the 1950s, project complexities
demanded new techniques like PERT and CPM. These techniques integrated project cost
accounting and scheduling. The 1960s saw widespread adoption of these tools in
government and defense projects. In the 1970s, performance measurement and time
tracking systems evolved. The last 50 years brought in computerized systems, lowering
costs and making tools accessible to almost any project.
1.4 Where is Project Management Appropriate?
Project management is relevant across industries. It suits unfamiliar, interdisciplinary, and
integrated efforts. It is often required for "ad hoc" undertakings where coordination and
integration of diverse tasks is essential.
Criteria:
1. Unfamiliarity – When the tasks are unique or done in a new way, project management
helps manage risk and coordination.
2. Magnitude of the effort – Large resource requirements (capital, people, time) make
project management necessary.
3. Dynamic environment – High innovation or fast-changing industries like aerospace or IT
benefit from project flexibility.
4. Multifunctional effort – Project management is useful when efforts require coordination
between multiple departments or functions.
5. Reputation of the organization – High-stake projects that can impact reputation or cause
financial losses are strong cases for project management.
1.5 Management by Project: A Common Approach
Project management applies to both large-scale and smaller, frequent projects. Consultants
and companies often work on a project-by-project basis. As work becomes riskier and more
complex, project management becomes more relevant. It allows for planning, budget
setting, and managing unique or customized work. Even routine operations occasionally
take on project structures for specific goals.
Example 1.2: Relocation of Goman Publishing Company
Goman Publishing faced the need to relocate due to rapid growth. Tasks involved
constructing or leasing, selecting a site based on several factors, and managing the design
and physical relocation. A project manager oversaw procurement, IT setup, movers,
security, employee communication, and ensured minimum downtime. This complex, multi-
departmental task exemplifies project management's role in achieving time- and budget-
bound goals.