Master in Business Administration Semester 3 Subject Code PM0010 Subject Name Introduction to Project Management 4 Credits

(Book ID: B1236)

Assignment Set- 1 (60 Marks)

Question 1: Describe the three strategy levels in detail. Answer: Strategy exists at three hierarchical levels in an organization - ranging from the overall business (or group of businesses) through to individuals working in it. Johnson and Scholes define strategy as Strategy is the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations. In other words, strategy is about: Market; scope are which markets should the business compete in and what kind of activities are involved in such markets. Advantage is how the business can perform better in such markets. Resources are the skills, assets, finance, relationships, technical competence, facilities required to enable the business to compete. Environment is the external, environmental factors that affect the business ability to compete. Stakeholders expectations are the values and expectations of those who have power in and around the business.

Strategy Levels: Corporate Strategy: It is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". It consists of the kinds of initiatives the company uses to establish business positions in different industries, the approaches corporate executives pursue to boost the combined performance of the set of businesses the company has diversified into, and the means of capturing cross-business synergies and turning them into competitive advantage. Senior corporate executives normally have lead responsibility for devising corporate strategy and for choosing among whatever recommended actions bubble up from the organization below.

Two tools popularly used in the planning of corporate strategy are: Ansoff matrix BCG matrix

Ansoff Matrix The Ansoff matrix (originator Igor Ansoff in 1957) presents the product and market choices available to an organisation. The Ansoff matrix is used to aid decision-making concerned with market expansion and diversification. Markets may be defined as customers, products, or items sold to the customers. It considers two factors: Newness of the product to the company. Experience of the company with the intended market. The table shows the four corporate strategies using an ANSOFF Matrix. Table : ANSOFF Matrix (Source: Corporate Strategy by Igor Ansoff)
OLD Product OLD Market-Market Penetration OLD Product NEW Market-Expansion (Market Development) NEW Product Related Diversification-OLD Market (Product Development) NEW Product Unrelated Diversification-NEW Market

The explanations for the four strategies mentioned in the quadrants of Table are as follows:

Table : Explanation for Ansoff Strategies

Strategies Strategy Market Penetration Market Expansion Product Expansion customers Diversification Markets Explanation Requires an increase of existing market share in existing markets. Requires identification of new customer for existing products. Requires development of new products for existing customers (Related diversification). Requires production of new products for new markets (Unrelated diversification).

Based on management of time availability, skill of personnel, and fund mobilisation capacity the company decides to adopt one or more of the four strategies. The fourth strategy provides high growth potentials but requires careful planning and analysis prior to taking any decision. If the firm decides to expand in all four areas, some of its businesses could end up being badly managed. The limitation of Ansoff matrix is that the matrix tells us one part of the strategy story, but it is imperative to look at other strategic models like Strength Weakness Opportunity and Threat (SWOT) analysis in order to view how the strategy changes in the future. BCG Matrix The BCG matrix (developed by Boston Consulting Group in the early 1970s) is another popular tool for portfolio planning. It is based on the product life cycle. The observation that the companys business units can be classified into four categories based on a combination of market growth and market share relative to the largest competitor is called growth-share. Market growth serves as a replacement for industry attractiveness and relative market share serves as a replacement for competitive advantage. The position of a business on this matrix provides an indication of cash generation and cash consumption. Business units which are in a more mature stage and are generating significant cash can deliver the cash to the rapidly growing business as required.

Reletive Market Share (Cash Generation) Figure : BCG Growth-Share Matrix Figure shows that relative market share (horizontal axis) serves as a measure of Starts Business Units (SBU) strength in the market. Market growth rate (vertical axis) provides a measure of market attractiveness. Four types of SBUs are identified using the four quadrants of the matrix: Stars: These are high-growth businesses or products competing in markets. They are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth slows down and they become cash cows. Cash cows: These are low-growth businesses or products that have relatively high share in markets. Cash cows continuously manage to yield profit and generate strong cash flows which are needed for starting firms. Dogs: These are businesses or products that have low relative share in unattractive low-growth markets. They may generate enough cash to break even, but rarely, only if profit is there. Question Marks: These are businesses or products that have low market share, but operate in relatively higher growth markets. They have the potential but may require substantial investment to increase the market share at the cost of more powerful competitors. Some limitations cited for the BCG matrix model are as follows: In industry attractiveness, market growth rate is only one factor and in competitive advantage, relative market share is only one factor. Other factors are overlooked. As per framework each SBU is independent of others. Sometimes, a dog, an SBU may help other SBUs to gain advantage. The matrix depends heavily on the breadth of the definition of the market. An SBU may dominate its small position, but have very low market share in the overall industry. In such a case, the definition of a market makes the difference between a dog and a cash cow. We must note that any tool used for strategy planning has some limitations and no tool is exclusive for strategy planning. For example, in case of the BCG matrix, it is difficult to get reliable data on the market share and market growth rate. Business Unit Strategy: This strategy is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. Business

strategy concerns the actions and the approaches crafted to produce successful performance in one specific line of business. The key focus here is crafting responses to changing market circumstances and initiating actions to strengthen market position, build competitive advantage, and develop strong competitive capabilities. Orchestrating the development of business-level strategy is the responsibility of the manager in charge of the business. The four generic strategies to establish a competitive advantage over industry rivals are as follows: Cost leadership: The firm offers products to customers at the lowest price essentially by tight control over production and overhead costs. Differentiation: The firm provides value to customers by delivering products with unique features and characteristics rather than with the lowest price. For example, lower costs for buyers by ensuring better quality thereby leading to lesser breakdowns; by raising perceptions of buyers of the customer support provided by the firm by responding quickly. Focussed low cost: The firm not only sells its products at lowest price, but also selects a small segment of the market to provide goods and services. For example, sale of a product to only a Government department. Focussed differentiation: The firm not only competes with rivals based on differentiation, but also selects a small segment of the market as in focussed low cost strategy. A fifth strategy is also adopted sometimes, which integrates low cost and differentiation strategy. Here, the customer realises value based both on product features and a low price. Southwest Airlines is an example of a company that adopts this strategy. Operational Strategy: It is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc. Operating strategies concerns the relatively narrow strategic initiatives and approaches for managing key operating units(plants, distribution centres, geographic units) and for specific operating activities with strategic significance (advertising campaigns, the management of specific brands, supply chain-related activities, and Website sales and operations).Operating strategies add further detail and completeness to functional-area strategies and to the overall business strategy. Lead responsibility for operating strategies is usually delegated to frontline managers, subject to review and approval by higher-ranking managers.

Question 2: a) Describe the various roles undertaken by a Project Manager. b) List and explain in brief the qualities of a Project Manager. Answer: a) Various roles undertaken by a Project Manager: The role of the Project Manager is to plan, execute and finalize projects according to strict deadlines and within budget. This includes acquiring and coordinating the efforts of team members and third-party contractors or consultants in order to deliver projects according to plan. The role & responsibilities of a Project Manager is little complex and needs to be explained elaborately in clear terms for each project. The project manager is also responsible for handling the work of consultants, allocating and utilising resources in a proper manner and maintaining a cooperative, motivated and successful team. Below are few important roles & responsibilities of a Project Manager: responsible for managing the project. b) Understand and apply the organisational project policies and procedures. c) Maintain the project staffs technical skill and efficiency, and provide training when required. d) Establish and maintenance of project quality. e) Identify and procure the project infrastructure needs. f) Develop project charter and obtain approval for the same. g) Define project goals, objectives and success criteria. h) Identify and document project constraints. i) j) l) Identify and document project assumptions. Identify and secure project team resources. Develop and present milestone during review briefings.

k) Serve as a focal point for project related communications. m) Ensure that Information Technology security is met. n) o) The following describes the roles undertaken by the project manager: p) Understanding the client requirements: The client requirements form the basis of the project. It should be clearly understood, planned and executed so that the project is developed to suit the client needs. For example, if the project is for the bank then their requirements should be clearly understood by the project manager to deliver the project to suit their requirements. q) Understanding end user requirements: End user requirements of the project of the project should be understood as the clients and the end users may be different. The project should be developed keeping the end users who are going to use the project. For example if the project is for a bank ATM, then the end-users should also be considered if they are going to use the ATMs for their transactions. r) s) Understanding the project scope: The scope of the project defines the project tasks. The project has to be planned keeping the timelines, objectives, output and the delivery date in mind. The project should be defined according to the client requirements and the project should be managed accordingly. t) Understanding the design: All the basic design requirements should be understood. The functional brief should be developed including the design brief preparation. The design and design process should be developed along with the development of contract documentation. The planning process and obtaining relevant approvals should be managed.

u) Communicating: The client should be given regular reports which are relevant and meaningful. The project progress report should be included in the project delivery kit. For example it may be required to send project status report every week. Also the client should be pre-informed about any likely delays/problems. v) w) To summarise, the project managers role includes the following activities: x) Defining the scope y) Planning and sequencing of the activity z) Planning for the resource aa) Developing the schedules bb) Estimating the time cc) Estimating the cost dd) Developing the budget ee) Controlling the budget ff) Controlling the quality gg) Analysing risk hh) Managing risks and issues ii) jj) ll) In a bit exaggerating terms, Project Manager is the God of his project and he is the one who decides the success of the project. b)List and explain in brief the qualities of a Project Manager. You do not lead by hitting people over the head thats assault, not leadership. How apt these words by Dwight D Eisenhower are, leadership is not about bullying people, it is about getting people to respect you with your leadership skills and qualities. People should want to be lead by the project manager. So what are the leadership qualities that a project manager should have? Should he be skilled or compassionate? Or maybe he needs to be a good communicator or a visionary? There is not right answer and there is no wrong answer. Even as I make this statement, here is a list of some leadership qualities for a project manager. Vision: Every project manager should have a vision, a vision of what he wants the project to be like, a vision of how to get things done and a vision of the near future of the project. And he needs to be able to convey this vision to his team members. Only when there is vision is there going to be real involvement on the part of the project manager and thus involvement on part of the team members. This is when the team members and project manager start feeling like a part of the organization and not just the project. Communication skill: Most would say communication is the most important skill of a project manager and some would beg to differ. But communication is an integral part of the leadership qualities. Without Realising the benefits Analysing scalability, interoperability and portability Maintaining customer relationship

kk) Documenting the work

communication the project manager cannot lead. Communication not only allows for great leadership but also for openness and relativity. Persuasion and negotiation are all a part of communication and the project managers qualities. Honesty: Call it honesty, integrity or loyalty, the project manager needs to have it all. The actions of the project manager set an example for the rest of the team members. The project manager is ultimately responsible for setting standards, ethically and otherwise for the rest of the team. The project manager needs to practice before preaching and to lead by example. Passion: A project manager without passion is one that is simple put, lacking dedication. The project manager has to be passionate about the project; he should have enthusiasm and the right attitude. Only then will people follow him and respect his decisions, because they need to feel he is doing it for the project. There needs to be commitment and optimism involved. Compassion: Do not mistake empathy or compassion for sympathy. These two words are independent of each other. Empathy means to understand. A good project manager needs to understand or empathize with the fact that there is a life outside the work place and that people are not machines without emotions. Skill and knowledge: There needs to be some skill and knowledge that the project manager needs to have. To put it simply, the project manager should know what he is doing and should be able to guide the rest of the team. Delegation: The project manager should be able to handle delegation with ease. He should be able to recognize skills and expertise of his team members and assign or delegate tasks according to those. Also this shows that the project manager trusts the team in doing tasks. Trust inspires confidence. Composed: We do not live in a perfect world. There are times when things do not go as expected in such a case the project needs to maintain his cool and be composed irrespective of the amount pressure he is under. This shows good leadership and strength in character. Team building: The project manager should also be a team builder. He should be able to hold and pull the team together to work under different conditions. The team starts as a group of strangers and needs to be made into a core group of people. Problem solver:

An efficient project manager should be capable of solving any and all problems, either with the team or the project itself.

Question 3: a) Describe the major types of stakeholders in a project. b) Describe the major type of Organizational structure in Detail. Answer: a) Major types of stakeholders in a project: According to PMIs guide to PMBoK, project stakeholders are individuals and organizations actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion. According to Stanford Research Institute, stakeholders are those groups without whose support the organization would cease to exist. The major stakeholders of a project are: Project Manager Customer Performing Organization Project Team Members Sponsor Society

Below figure depicts a diagrammatic representation of the major stakeholders of a project.

Project Manager: Project manager is the interface between the customer and other internal stakeholders. The project manager holds the responsibility for the successful implementation of the project and is an important stakeholder. Customer: Customers are the internal or external group of individuals who directly affect the project. The aim of the project is to create a product, service or facility based on customer requirements and to deliver it to the customer. Hence, the project team must consider all requirements of the customer while creating the deliverable. The customer can be any one of the following: Internal customer:

They are individuals within the parent organisation. For example, the IT department is assigned to provide a software package for the accounts department. The accounts department is the internal customer. Intermediate customer: They are external to the company but not the final user of the product e.g. distributors and wholesalers. External customer: They are individuals or organisations that pay for and use the final product. Performing Organization: The performing organization is the enterprise whose employees are most directly involved in performing the work of the project. Therefore, the project contributes towards achieving the corporate goals of the performing organization. In addition, there are several other stakeholders like project owner, fund providers, suppliers or contractors, government agencies and media outlets and the society. Stakeholder roles and responsibilities may overlap. For example, when an engineering firm finances a plant it is in the designing or construction field, the role of the engineering firm changes from performing organization to sponsor for the projects undertaken by the designing or construction company. The naming or grouping of stakeholders is primarily an aid to identify individuals or organizations who view themselves as stakeholders. Project Team Members: Team members working in their individual areas of expertise play a crucial role in the success of the project. They work directly with or under the project manager depending on the organization structure adopted for the project. The project manager, therefore, uses team building skills to ensure that the team members work as a team. Sponsor: The sponsor is an individual or a group within or external to the parent organization who arranges the financial resources in cash or in kind for the project. The sponsor may be a senior executive of an organization or a junior manager with formal authority who is responsible for the project thus, acting as a link between the project and the performing organization. b) Describe the major type of Organizational structure in Detail. Organizational structure has a significant impact on the functioning of a project manager. To enable successful completion of a project, it is important that the resources required for project implementation flow freely from the organization to the project. There are three types of organizational structures: 1) Functional organization: It is a hierarchical structure. It defines a clear Superior-Subordinate relationship, i.e., the line of control is clear. Each department carries out work in its area of specialization

and employees in each department work with its respective expertise within the department's line of control. In a manufacturing organization, the different departments are production, finance, marketing, quality control, engineering, administration, personnel ands so on. If a new product is to be developed, the engineering department handles only the design development phase of the product. If answers to questions concerning manufacturing, marketing or quality control are found, the query is passed on to the respective department through formal communication channels. 2) Project-based organizations: These are designed to provide near total authority to the project manager. The project manager directs work and sets priorities to employees assigned to the project manager for the project. Functional departments exist in this organization, but the groups working in these departments report directly to the project manager in the execution of various projects. 3) Matrix-based organizations: It is the combination of the features of functional and project-based organizational structures. In this type of organizational structure, project managers and functional managers have equal authority, which implies that the functional staff member reports to both project manager and their functional manager. This constitutes a dual reporting system for each functional staff member.

Question 4: List and describe in brief the various qualities of the project management process. Answer: The various qualities that a good Project Management process should encompass are as listed below: Creativity: A good Project Management process should be creative that facilitates integrating various categories of the project into a unified structure. It should provide abilities to create enthusiasm and appeal in the process. Structure: The structure of the organisation will have a set of specifications, parameters, limitations as well as certain guidelines that has to be followed. The members of the organisations are expected to work effectively within the defined framework and structure of the organisation. Intuition: Intuition is very important part of maintaining a good Project Management process. It is that ability of understanding the uncertainties and the things forth coming without the use of any rational processes. It is the foundation of emotional intelligence. It is vital to have a stronger intuition that enables to sense what the other members are feeling and thinking. Knowledge: Knowledge is an important part of the Project Management process. It is required for the deeper understanding of the project with ease and also to delegate the technical aspects training to the other members participating in the project team. Commitment: The commitment of the project manager is responsible for holding the team together to pull the project to meet its delivery dates successfully. Commitment ensures that there are fixed allotted timings for every activity to be performed in the process. Being Considerate: Being considerate infers that a task allotted to the members of the team can be well completed in the allotted time. It ensures that no employee is heavily loaded with unnecessary work he is not responsible for. Thus, the loyalty and humbleness of the manager will further take the project team to meet its objectives defined. Versatility: The primary qualities of a Project Management process include flexibility to any kind of environment. It requires versatility that enables the project manager to change any decisions with respect to resources and other constraints quickly. Lightness: It complements the importance of the tasks as well as provides options to resolve them. This leads to strong team results and team maintenance. Discipline/focus: It is very essential to be self focused and disciplined to maintain the moralities and ethics of self and the company. Big picture, small actions: It is very essential for a good Project Management process to visualise things in a broader perspective. This leads to thinking in a wider range meanwhile paying attention to the details of the project. However, it requires good communication skills to interact with the team members in order to establish the clear expectations of the clients. It is required that the members of the team are also given the authority to make shared decisions regarding developing the project. It gives a clear picture of the people who are assigned to the specific tasks. Effective Project Management process adopts various customs and ways in order to correspond and share the relevant information such as conducting meetings and informal conversations with the relevant and concerned people such as with the other members of the team, the clients and other senior officials of the project. This requires that the manager of the project have good communication skills and believe in listening skills than talking skills.

Question 5: Write a short note on the following: a) SWOT Analysis as a Strategic Planning tool. b) Net Present Value (NPV) as a Project selection criterion. Answer: a) SWOT Analysis as a Strategic Planning tool: S.W.O.T. is an abbreviation for Strengths-Weaknesses-Opportunities-Threats. One of the most fundamental tools for strategic market planning is the use of SWOT analysis template to evaluate potential business success. This simple tool, developed at Stanford University in the late 1960's, is an extremely powerful ingredient in the recipe for business success. STRENGTHS: Attributes of the organization those are HELPFUL to achieving the objective. These are the company's core competencies, and include proprietary technology, skills, resources, market position, patents, and others. WEAKNESSES: Attributes of the organization those are HARMFUL to achieving the objective. Weaknesses are conditions within the company that can lead to poor performance, and can include obsolete equipment, no clear strategy, heavy debt burden, poor product or market image, long product development cycle, weak management, and others. OPPORTUNITIES: External conditions those are HELPFUL to achieving the objective. Opportunities are outside conditions or circumstances that the company could turn to its advantage, and could include a specialty niche skill or technology that suddenly realizes a growth in broad market interest. THREATS: External conditions those are HARMFUL to achieving the objective. Threats are current or future conditions in the outside environment that may harm the company, and might include population shifts, changes in purchasing, serious competitive barriers, changes in governmental or environmental regulations, and others. Periodic SWOT analysis facilitates the generation of ideas. It is also be used for screening of ideas. In SWOT, the following questions are answered before arriving at a decision on a strategy or project: What is our (that is our organisations) strengths? How can we take advantage of them? What weaknesses do we have? How do we minimise the effect of them? What opportunities does this market offer us? How can we capitalise on them? What threats exist that may impact our success? How can we deal effectively with these? It is a process of checking the companys internal workings, which are relatively easier to identify and control than outside factors. Conversely, examining opportunities and threats are a part of environmental analysis that is, the company must look outside of the organisation to determine opportunities and threats, over which it has lesser control.

The SWOT analysis framework is summarised in figure.

A SWOT analysis leads to the generation of a SWOT profile which is used as the basis for goal setting, strategy formulation and implementation. Table shows the SWOT profile.

Table: SWOT Profile

Strengths(S) What do you do well? What unique resources can you draw on? What do others see as your strengths? 1 2 3 4 Opportunities(O) What good opportunities are open to you? What trends could you take advantage of? How can you turn your strengths into opportunities? 1 2 3 4 Weaknesses(W) Where do you have fewer resources than others What could you improve? What are others likely to see as weaknesses? 1 2 3 4 Threats(T) What trends could harm you? What is your competition doing? What threats do your weaknesses expose you to? 1 2 3 4

SWOT analysis is only the first step in developing and implementing an effective organisational strategy. After this analysis, the next step is to rank the strengths, weaknesses, opportunities and threats and to document the criteria for ranking. Table shows a two-by-two grid to determine the companys strategic fit. The grid is also known as a SWOT Strategic Alternatives matrix or a TOWS Strategic Alternatives matrix. Table : TOWS Strategic Alternatives Matrix
Matrix 1. 2. 3. Opportunities (O) Threats (T) 1. 2. 3.

Strengths ( ) 1. 2. 3. Weaknesses (W) 1. 2. 3.

SO Maxi-Maxi Strategy Strategies that use strengths to maximise opportunities. WO Mini-Maxi Strategy Strategies that minimise weaknesses by taking advantage of opportunities.

ST Maxi-Mini Strategy Strategies that use strengths to minimise threats. WT Mini-Mini Strategy Strategies that minimise weaknesses and avoid threats.

b) Net Present Value (NPV) as a Project selection criterion:

In finance, the net present value (NPV) or net present worth (NPW) of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows. In the case when all future cash flows are incoming (such as coupons and principal of a bond) and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash flows minus the purchase price (which is its own PV). NPV is a central tool in discounted cash flow (DCF) analysis, and is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, finance, and accounting, it measures the excess or shortfall of cash flows, in present value terms, once financing charges are met. The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or discount curve and outputs a price; the converse process in DCF analysis - taking a sequence of cash flows and a price as input and inferring as output a discount rate (the discount rate which would yield the given price as NPV) - is called the yield, and is more widely used in bond trading. Net Present Value (NPV) as Project Selection Criterion: NPV is the present value of the future revenues after deducting future costs. This is a very popular and valid method for selecting a project from the financial viewpoint. Some factors that companies use to enhance NPV are: Government policy. For example, special tax benefits and exemptions for an industry or a location. Economies of scale: In manufacturing, unit cost is substantially reduced by adopting high production volume. For example, petroleum refining, steel production, and mining. Product differentiation: This is achieved by innovative product features, high quality products, customised service and so on. Technology superiority: DRL outperformed its competitors in the drugmanufacturing industry because of their technology based on research and development.

Question 6: Describe in brief the Human resource management process in a project. Answer: Project Human Resource Management: Project Human Resource Management is a subset of Project Management that includes various processes that are essential and are required for making the most effective use of the people involved with the project. Human Resource Management includes various processes that are vital to make the most effective use of the people involved with a project. The main process involved with the HR Management process includes: Acquiring the project team. Developing the project team. Managing the project team.

Acquiring a Project Team: The members who belong to different groups and functions and are allocated to the activities of the same project, form a project team. A team can be divided into sub-teams if required. Generally, the project teams are only used for a defined period of time. However, they are disbanded when the project is complete. Sometimes, due to the nature of the specific formation and disbandment, project teams are usually agile in organisations. Acquiring a project team is the process of acquiring the specific people needed to accomplish all phases of the given project. Ultimately the team members will bring all the specific qualifications and capabilities to the project team. However, the project management team has control over the selection process. Selection of team mates involves certain concerns which need to be evaluated. A number of factors are considered while deciding the team members. These factors include a series of environmental factors (such as work experience, availability, and cost), derivation of clear and concise project organisation charts, and formulation of a thorough staffing management plan. Once the team is properly staffed, the next steps (or outputs) of the process involve staffing out assignments to the team, determining availability of resources, and updating the staffing management plan. Important factors that are considered during the process of acquiring the team are: The project manager should efficiently discuss and induct others who are in a position to supply the required Human Resources in a project. Failure to obtain the essential Human Resources for the project will affect project agenda, budgets, consumer satisfaction and quality. It declines the probability of success and eventually results in project cancellation.

Developing a Project Team: Developing a project team is a process of enhancing interaction among the team members and also the project manager. The process refers to increasing competencies of individuals and building up team spirit, which finally leads to a quality project.

To achieve project success, there should be good communication among the team members. Project managers should administer the development of the project team. The project manager should create the relevant environment for teamwork, provide new goals for the team to compete and achieve. Project managers should encourage feedback from the team. The project manager should provide effective review and good support to the team staff. Open communication between the project manager and team reduces conflicts. The management should also support the project managers. The project stakeholders should provide the required support to the development of the project team. Projects are done in diversified environments. The project team may experience variance in language, industry and culture while at work. The project team should be dedicated to the project and the team members should work together, without losing their individuality. The goals for developing a project team are: To develop technical knowledge about the project, this leads to quality output and meeting delivery schedules with reduced cost. To enhance trust among team members, thus reducing conflicts. To develop cohesiveness in the project. To allow sharing knowledge among team members.

The five stages of team development are: Forming: Forming involves knowing every team member individually. The team members are inclined to work independently. They find out about each other and know whos who. Storming: Storming involves the actual Project Management process. This stage promises action. There is a struggle for project team control, and momentum builds as members have to lead the project team. During this phase, the team members figure out the hierarchy of the team and the informal roles of team members. Norming: Norming is working together, socialising, and providing constructive criticism. The team develops a strong commitment to the teams goal and work to achieve it. Performing:

Performing means smooth movement of project development by a well-organised project team. The team members blend into their roles and focus on completing the project work as a team. Adjourning: Adjourning implies completion of the project so that the team is ready for a new one. Managing a Project Team: Managing a project team is the process of delegating responsibilities and tasks, monitoring team performance, providing feedback, solving issues, and coordinating changes to enhance overall project performance. Managing the team is one of the most critical aspects of project management. The project manager should encourage building competencies among the team members and reward them accordingly.

Key aspects of managing a project team are: Assigning work and observing the commitment level in each team member. Building co-operative working relationship and ensuring effective communication among all members of the project team. Monitoring team spirit. Providing effective performance review and appraisal to inspire the project team.

Inputs for managing a project team are: - Assets of organisational process - Project staff allocations - Team roles and responsibilities - Project organisational plan - Staff management plan - Assessment of team performance - Work performance - Project performance reports Tools and techniques for managing a project team: Inspection and discussion Project performance reviews Managing conflicts Issue log

Output of managing a project team: - Requested changes - Recommended corrective actions - Recommended preventive actions - Updating of organisational process asset - Staffing management plan updates