Page 10 - DMGT521_PROJECT_MANAGEMENT

Unit 1: Introduction to Projects

3. The evolution of worldwide competitive markets for the production and consumption of Notes
goods and services.
All three forces combine to mandate the use of terms to solve problems that used to be solvable
by individuals. These three forces combine to increase greatly the complexity of goods and
services produced plus the complexity of the process used to produced them and all this in turn
leads to the need for more sophisticated systems to control both outcomes and processes.
As the techniques of project management were developed, the use of project organization began
to spread. Private construction firms found that project organization was helpful on smaller
projects, such as the building of a warehouse or an apartment complex. Automotive companies
used project organization to develop new automobile models. Both General Electric and Pratt &
Whitney used project organization to develop new jet aircraft engines for airlines, as well as the
Air Force. Project management has even been used to develop new models of shoes and ships.
More recently, the use of project management by international organizations, and especially
organizations producing services rather than products, has grown rapidly. Advertising
campaigns, global mergers, and capital acquisitions are often handled as projects, and the methods
have spread to the non-profit sector. Functions, weddings, fund drives, election campaigns,
parties, recitals etc all make use of the principles of project management. Most striking has been
the widespread adoption of project management techniques for the development of computer
software.

1.3 Project Manager and his Responsibilities

According to Project Management Institute (PMI): “Project Management is the application of knowledge,
skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations”.
Project Management is quite often the province and responsibility of an individual project
manager. This individual seldom participates directly in the activities that produce the end
result, but rather strives to maintain the progress and productive mutual interaction of various
parties in such a way that overall risk of failure is reduced.
A project manager is often a client representative and has to determine and implement the exact
needs of the client based on knowledge of the firm he/she is representing. The ability to adapt
to the various internal procedures of the contracting party, and to form close links with the
nominated representatives, is essential in ensuring that the key issues of cost, time, quality and
above all client satisfaction, can be realized. Any type of product or service - buildings, vehicles,
electronics, computer software, financial services, etc. - may have its implementation overseen
by a project manager and its operations by a product manager.
The project manager needs to be an HRD expert who can motivate the workforce by training and
promoting leadership among them, and boost their morale by incentives and promotions. He
has to be conversant with the principles of organisation, and be a good judge of people who has
the ability to place the right man in the right job at the right time.
Social issues: A project can only be successful when there is no conflict between the management
and the local populace. Right from the acquisition of the project land to recruitment to organisation
to infrastructural facilities, the management has to interact with the social fabric of the locale. It
can only ensure a smooth functioning at the project site if there is a ‘cooperational’, and not a
‘confrontational’ environment. The management can display its cordiality to the locals by, for
instance, recruiting ‘the sons of the soil’ in the workforce, which will not only be conducive to
reciprocal cordiality of the populace, but might actually make good business sense in employing
labour that is familiar with the locale and the conditions prevalent at the project site.

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