First I would like to start with Project Management.

Project management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. The characteristics of project management are, Assignment of responsibility Application of predictive tools and techniques to manage a project Building the project team

The project management processes are, Initiation Planning or Design Production or execution Monitoring and controlling Closing

Creating an efficient project management environment means having a system in place to asses, The relative experience of team and performing organization The significance of the project to the organization The relative uncertainty of the project

Now let me tell you about Formal project management and Informal project management Formal Project Management: Completing the project on paper before the actual project begins. Creating a detailed plan and then executing the project according to that plan. Informal project management: Doing a project however the project manager sees fit, based on his or her experience, training and judgment.

Formal Project Management

Activities occur with operating guidelines Project manager has to follow set of rules in the process of project management Documentation work is high Greater control on activities Rigid accounting and control system Vs.

Informal Project Management

Activities occur without operating guidelines Project manager need not to follow set of rules. Just to follow What project manager thinks is the best. Less documentation work Less control on activities Informal accounting

Advantages of formal project management over informal project management: Better control of financial, physical and human resources. Improved customer relations

Shorter development times Lower costs Higher quality and increased reliability Improved productivity Better internal co ordination Higher worker morale

The Projects that have been managed using formal management techniques usually get good results compared to the projects with informal project management techniques. The success of project depends on various factors apart from project management techniques, those are project manager capability, experience, size of the project, nature of work, environment, workers capability etc. With the informal project management some of the projects get success but most of them fails. The accounting in an informal project management is informal because of this the money which is going to spend on a project doesnt have control. It causes failure of project. Projects with formal project management will have all its work on documentation. With the documentation one can easily understand the project completely and can do the work as per the process in a right way. This kind of work on project leads to success.

Im adding a success story of a project which got success with proper formal project management. The Eiffel Tower Project: With Great Risk Comes Great Reward http://www.geniusinside.com/blog/famous-projects/the-eiffel-tower-project-with-great-riskcomes-great-reward/ With an effective project management they build it with great effort as well as they got 100% success factor and saved more money. The Eiffel Tower project was an overnight success that was 3 years in the making. Although the project itself faced many challenges and obstacles, Gustave Eiffel was a true visionary that persevered and successfully executed on his risky vision that has paid off both financially and historically resulting in a landmark that has been visited by over 200 million visitors since its inception.

Reference: http://wiki.answers.com/Q/project_management

PMI (2010). A Guide to the Project Management Body of Knowledge Chatfield, Carl. "A short course in project management". Microsoft. Copyright 2009 Global Knowledge Training LLC, Expert series of White Papers