dumaguing chapter2 organizing for project management
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CHAPTER 2:Organizing for Project Managem
Prepared by:DUMAGUING, Julius Dean B
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Organizing for Project Management
2.1 What is Project Management?
2.2 Trends in Modern Management
2.3 Strategic Planning and Project Programming
2.4 Effects of Project Risks on Organization
2.5 Organization of Project Participants
2.6 Traditional Designer Constructor Sequence
2.7 Professional Construction Management
2.8 Owner-Builder Operation
2.9 Turnkey Operation
2.10 Leadership and Motivation for the Project Team
2.11 Interpersonal Behavior in Project Organizations
2.12 Perceptions of Owners and Contractors
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2 1 What is Project Management?
Application of knowledge skills, tools, and techniques to proactivities to meet the project requirements/goals.
Project management is the art of directing and coordinatingand material resources throughout the life of a project by usmodern management techniques to achieve predeterminedobjectives of scope, cost, time, quality and participation sat
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Project
Management
SupportingDisciplines
SpecialKnowledge
Domains
GeneralManagement
Basic Ingredients for Project Management
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Functions of Project Management for construction: Specifies project objectives and plans.
Maximize the efficient resource utilization.
Implementation of various operations through proper coordinatiocontrol of planning, design, estimating, contracting and constructientire process.
Development of effective communications and mechanisms for reconflicts among the various participants.
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9 Distinct Areas requiring Project Manager Knowledge and A Project integration management
Project scope management
Project time management
Project cost management
Project quality management
Project human resource management
Project communications management
Project risk management
Project procurement management
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2.2 Trends in Modern Management
Major developments in management reflect the acceptancevarious degrees of the ff. elements:
The Management Process Approach
The Management Science and Decision Support Approach
The Behavioral Science Approach for Human Resource Developme
Sustainable Competitive Advantage
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The Management Process Approach emphasizes the systematic study of management by identifying m
functions in an organization and then examining each in detail.
Planning, Organizing, and Controlling
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President
Vice President
Marketing
Forecasting Sales
Vice President
Production
Manufacturing
Fabricating AssemblingTooling
Purchasing
Shipping Expediting Rec
Vice
F
Accounting
Illustrative Hierarchical Structure of Management Functi
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The Management Science and Decision Support Approach contributes to the development of a body of quantitative method
to aid managers in making complex decisions related to operationproduction.
Decision Support System: emphasis is placed on providing managerelevant information.
Management Science: a great deal of attention is given to definingand constraints, and to constructing mathematical analysis modelscomplex problems of inventory, materials and production control,others.
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The Behavioral Science Approach for Human Resource Deve It gave importance to attitudes, behavior and performance of indi
groups in the organizations.
Human Factors
Needs, motivation, leadership, personality, behavior, and work
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Sustainable Competitive Advantage occurs when an organization acquires or develops a combination o
that allows it to outperform its competitors.
primarily from good management strategy.
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2.3 Strategic Planning and Project Programm
Strategic Planning organization's process of defining its strategy, or direction, and ma
decisions.
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Project Programming finalize the project objectives, determine the building and user req
establish a total building area, and set the scope of work.
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2.4 Effects of Project Risks on Organizat
Socioeconomic factors
Environmental protection
Public safety regulation
Economic instability
Exchange rate fluctuation
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Organizational relationships
Contractual relations
Attitudes of participants
Communication
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Technological problems
Design assumptions
Site conditions
Construction procedures
Construction occupational safety
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2.5 Organization of Project Participants
Project Stages:
Sequential processing
Parallel processing
Staggered processing
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Two Basic Approaches to organize for project implementatio
Separation of Organization
Traditional Sequence of Design and Construction
Professional Construction Management
Integration of Organization
Owner Builder operation
Turnkey operation
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Management styles
Matrix Organization
Project Oriented Organization
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Matrix Organization
each project may be staffed by existing personnel in the functionaof the organization.
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Project Oriented Organization
each project manager has autonomy in managing the project.
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2.6 TRADITIONAL DESIGNER CONSTRUCTOR SEQ
Used for Projects of moderate size.
Owner employs a designer (Architectural/Engineering firm) prepares the detailed plans and specification for the constru(general contractor)
Owner may select a general contractor either through compbidding or through negotiation.
General contractor is responsible for the construction itself though the work may actually be undertaken by a number ospecialty subcontractors.
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2.7 Professional Construction Managem
Used for very large Projects.
Professional Construction Manager
Work with owner and the A/E firms from the beginning and makerecommendations on design improvements, construction technoloschedules and construction economy
Propose design and construction alternatives and analyze the effe
alternatives. Monitors succeeding developments of project.
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2.8 Owner Builder Operation
Owner may choose to subcontract a substantial portion of tto outside consultants and contractors for both design andconstruction.
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2.9 Turnkey Operation
Owner entrust all responsibilities of design and constructionoutside consultant.
Contractor agrees to provide the completed facility on the bperformance specifications set forth by the owner.
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2.10 Leadership and Motivation for Project T
Project Manager
Creates an inspiring vision of the future.
Motivates and inspires people to engage with that vision.
Coaches and builds a team, so that it is more effective at achieving
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- Drives employees
- Knows how its done
- Uses people
- Takes Credit
- Commands
- Places blame for the breakdown
- Coa
- Show
- D
- Fixes
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2.11 Interpersonal Behavior in Project Organ
Interpersonal Behavior
behavior and actions that are present in human relationships.
affects the relationships between coworker and coworker, coworksupervisor, and even worker and customer.
work achievement, overall happiness, and even success.
poor work performance and can hinder problem solving and confl
resolution.
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2.12 Perceptions of Owners and Contra
Owners
All owners have the same perception of their own role, but they dsignificantly in assuming that role in practice.
The owners also differ dramatically in the amount of early planninproviding information in bid packages.
There is a trend toward breaking a project into several smaller proprojects become larger and more complex.
Most owners recognize the importance of schedule, but they adoprequirements in controlling the schedule.
All agree that people are the key to project success.
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Contractors
well defined scope
extensive early planning
good leadership, management and first line supervision
positive client relationship with client involvement
proper project team chemistry
quick response to changes
engineering managers concerned with the total project, not just thengineering elements.
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Different perception on construction project management
Common interest in creating an environment leading to succprojects