PROJECT MANAGEMENT Course Code # 5539

Need of project manager and line manager interface

Submitted to: Mr. Qalandar Submitted by: Sidrah Ayaz

Masters of Business Administration/Banking & Finance

ACKNOWLEDGEMENT Being a humble persons and cant be able to complete this presentation without the help and grace of almighty Allah. I would like to acknowledge the efforts of our parents they made for our education and it is their continuous encouragement and support that we are able to complete our presentation successfully. We would like to acknowledge the efforts of our teacher Sir Qalandar who provides us the opportunity to explore the nuts and bolts of Cost accounting. Only that education deserves emphatically to be termed cultivation of the mind which teaches young people how to begin to think. (Mary Wollstonecraft)

Table of Contents

Project management is the best method of implementing change? What is a project? How is a project different to any other work? What is the project management methodology? What skills does a project manager need? What techniques & tools are used? What are the main roles and responsibilities? Conflicts between project manger and line manager? Project manager and line manager interface? Case study SWOT analysis Conclusion Recommendation References

INTRODUCTION:Project Management is the best method of implementing change? Although change occurs continuously in the world and in our daily lives it is rarely implemented that way in organizations but rather as a series of steps; a ladder of change. A new piece of legislation, market imperatives, management initiatives and new technology create projects that need to be managed, often across departmental or disciplinary lines. Project Management is a methodology and a discipline which can bring significant benefits to organizations by:

Ensuring limited resources are used on the right projects Harnessing the energy of staff in achieving beneficial change Managing complex changes in an organized way Assessing risks, defining goals and key success areas and setting quality objectives. s.

Because most projects involve new ideas and learning (even a project to build houses or flats may involve new materials or unusual soil conditions or there may be new initiative for tenant selection or co-ownership schemes) project management has evolved a discipline to manage the new and unusual. Its objective is to: define the project reduce it to a set of manageable tasks obtain appropriate and necessary resources build a team or teams to perform the project work plan the work and allocate the resources to the tasks monitor and control the work report progress to senior management and/or the project sponsor close down the project when completed Review it to ensure the lessons are learnt and widely understood.
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It is this structured approach that makes project management the best method for change management.

What is a project?
A project is generally defined as a program of work to bring about a beneficial change and which has: A start and an end. A multi-disciplinary team brought together for the project. Constraints of cost, time and quality.

Examples of a project: The development and introduction of a new services The development of a management information system Setting up a new care initiative The creation of a large tender or the preparation of a response to it.

How is a project different to any other work? A continuous process is not a project. The development of a new rent or lettings policy is a project but the subsequent day to day operation of that policy is a continuous process that is usually managed by an individual or a department. How is project management related to other initiatives?

Total Quality Management (TQM)

TQM looks critically at the operational side of the business using a project management methodology to implement the improvements.

Performance Management Performance management brings together all the best practice for managing staff to achieve their full potential. Effective project leaders use all the principles of performance management to motivate the team but do not have the authority of a line manager. Business Process Re-Engineering (BPR) BPR focuses on optimizing the processes in an organization and, if necessary, redesigning them to meet the customers needs. In a major survey on BPR by the Harvard Business School Review the second most significant factor in the recent failure of BPR initiatives was the lack of Project Management expertise and culture. The first was the failure to analyze and understand the process requirements. The research and the implementation should be managed as a project. What is the Project Management Methodology? If a project has a beginning and an end, what is its life cycle and how is it managed? For simple projects in a small organization, agreed milestones, a few checklists and someone to steer the project are all that are required. For complex projects in a large organization a more structured approach is needed, to set up and approve the project, monitor and guides its progress, solve its problems, deliver the end product (or gain) and close it down. In order to understand the methodology we need to look at the project life cycle. A typical methodology would involve a number of stages and activities which occur at different parts of the life cycle. The preparation stage involves the project manager and sponsor in the preparation and approval of an outline project justification, plan and project budget.

N.B. There is no reason why a project sponsor should not also be the project manager. A senior manager who has a strong business reason to drive the project will have the
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organizational authority and "clout" with other senior managers and will often make an excellent project manager. The startup stage involves the selection and briefing of the project team and some discussion on the roles and organization. The Feasibility or Research stage will establish whether the project is feasible and establish the risks and key success measures. It may include the identification of external resources such as specialist consultants or product and service providers who may wish to tender goods, software or services for the project. The work will be undertaken by the team (which may include external consultants) and co-ordinate by the project manager. They may be line managers, supervisors or staff with particular skills. They must be the best people available and never those who can be spared because they have difficult or awkward personalities. The object is to build a team that is better than the sum of the individuals. The implementation stage involves the execution of the project as agreed, whilst carefully monitoring progress and managing changes. The team may need to be expanded at this stage to resource all the tasks. If so, it is essential they are fully briefed and feel included as part of the team. When project management is not an integrated part of an organizations culture it is a very good idea to undertake some team building events that allow the team to work together in a competitive but non-threatening environment. The close down stage involves the satisfactory delivery (satisfactory to the project customer that is) of the products or services that achieve the beneficial gain. A project review should be held to learn the lessons. These should be formally documented and published warts and all. Conflicts between Project manager and Line manager Matrix Organization In a matrix organization, you are going to have at least two types of managers. Line (or functional) Managers and Project Managers. There are different types of organizational structures along a spectrum which companies can be highly projectized or highly functional.

Along this continuum the project manager role and line manager roles change. Their roles are also highly dependent on the organizational culture. In a perfect world, they work together to manage projects, people, customers, etc. to the benefit of all. They are collaborators. If any given organization does not adequately define roles and ensure harmony, it WILL result in territorial struggles and other foolishness. For instance, both managers may feel its their role to give a performance evaluation to the same employee, and spontaneously engage in light saber battles over it. People will fight over stupid things, even (perhaps especially?) managers. Approval for various things like replacement equipment, forms, etc. may become contentious. Force powers will be used, and none of us wants that happening in the office. If the interface between project managers and functional managers are not clearly defined, they WILL spend time arguing who has a higher concentration of midichlorians and stepping on each others toes. Functional or Weak Matrix Project Manager: Very little role or authority Line Manager: Full management role and authority In this organization type, project management is usually not seen as a formal discipline. Functional managers run their own projects which are usually not much more than telling their own direct reports to go do something. In a weak matrix you may have functional managers, who authorize projects, but the management of the projects may be done by staff leads and you may also have pseudo-project teams that span across multiple functional teams or departments. Often, team members are multitasking heavily between their operational roles and several projects. Focus can shift away from individual projects quicker than the millennium falcon (when the hyper drive is working).

Balanced Matrix Project Manager: Part-time and little formal authority, provides some input to performance reviews Line Manager: Full management role, does performance reviews with input from project managers, resources usually spend most of their time on operational work and a little time or temporary full-time on projects as they occur. This organizational structure introduces the role of project manager. MANY companies are close to this point on the spectrum. A project manager is responsible for project(s) but does not have any formal authority over the staff that works on these projects. In order to gain resources, the project manager will need to negotiate with functional managers for resources, and hopefully she has a good sponsor (who is usually a director or middle manager) who can negotiate for resources and participation before the project begins. No blasters are allowed during negotiations. Strong Matrix Project Manager: Full-time and at least as much formal authority as line manager if not more. Staff report to project managers for years at a time for technical direction and project managers usually provide the bulk of the input and many times deliver performance reporting. Line Manager: Role is mostly to support project staff. You may see line managers being split out by job skillsengineering team, software development team, support team, etc. Focused more on developing their specific skill sets and caliber of employees. May arrange for group training sessions related to their disciplines focus. With a strong matrix you see the formation of something, otherwise many project managers report to one functional manager. That person is the functional manager for all the project managers. Here you can start seeing some effective sharing and implementation of best practices. Although that is possible in the other matrix models too, it becomes much easier when you have an organizational structure that supports project management as a discipline.

Projectized
Project Manager: Employees report directly, full authority. Line Manager: Role may be transferred to the project manager. If they still exist, they are focused mostly on staffing coordination and planning, taking input from projects and ensuring staff are covered adequately in the future. They may also coordinate recruiting and new hires, but project managers have the most influence on hiring decisions. In this environment, project managers are responsible for their projects AND their own staff. Staffs who work on their projects also report to them in a functional/line sense. These are truly project management organizations. They make their money by doing projects. This obviously puts more pressure on the project manager to be effective in managing projects AND all the aspects of people management. Id argue that every project manager should strive to be effective in both regardless of the organizational structure, but in a projectized environment it becomes even more critical. Whatever organization you work in, everyone should know their roles and responsibilities. Its the most effective way to achieve the common goal of delivering value. Perhaps youll liberate a few sentient, diminutive and furry bipeds native to the forest moon of End or along the way. November 1st, 2010 Author: ePips

The project manager? Line manager interface. The project managerline manager interface We have stated that the project manager must control company resources within time, cost, and performance. Most companies have six resources: Money Manpower Equipment Facilities
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Materials Information/technology Actually, the project manager does not control any of these resources directly, except perhaps money (i.e., the project budget). Resources are controlled by the line managers, functional managers, or, as they are often called, resources managers. Project managers must, therefore, negotiate with line managers for all project resources. When we say that project managers control project resources, we really mean that they control those resources (which are temporarily loaned to them) through line managers. It should become obvious at this point that successful project management is strongly dependent on: A good daily working relationship between the project manager and those line managers who directly assign resources to projects The ability of functional employees to report vertically to line managers at the same time that they report horizontally to one or more project managers These two items become critical. In the first item, functional employees who are assigned to a project manager still take technical direction from their line managers. Second, employees who report to multiple managers will always favor the manager who controls their purse strings. Thus, most project managers appear always to be at the mercy of the line managers. To illustrate the role of the project manager, consider the time, cost, and performance constraints. Many functional managers, if left alone, would recognize only the performance constraint: Just give me another, 000 and two more months, and Ill give you the ideal technology. To illustrate this working relationship between the project and line managers, consider the following situation: Project Manager (addressing the line manager): I have a serious problem. Im looking at a 0,000 cost overrun on my project and I need your help. Id like you to do the same amount of work that you are currently scheduled for but in 3,000 fewer man-hours. Since your organization is burdened at /hour, this would more than compensate for the cost overrun.

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Line Manager: Even if I could, why should I? You know that good line managers can always make work expand to meet budget. Ill look over my manpower curves and let you know tomorrow. The following day Line Manager: Ive looked over my manpower curves and I have enough work to keep my people employed. Ill give you back the 3,000 hours you need, but remember, you owe me one! Several months later Line Manager: Ive just seen the planning for your new project thats supposed to start two months from now. Youll need two people from my department. There are two employees that Id like to use on your project. Unfortunately, these two people are available now. If I dont pick these people up on your charge number right now, some other project might pick them up in the interim period, and they wont be available when your project starts. Project Manager: What youre saying is that you want me to let you sandbag against one of my charge numbers, knowing that I really dont need them. Line Manager: Thats right. Ill try to find other jobs (and charge numbers) for them to work on temporarily so that your project wont be completely burdened. Remember, you owe me one. Project Manager: O.K. I know that I owe you one, so Ill do this for you. Does this make us even? Line Manager: Not at all! But youre going in the right direction. When the project managementline management relationship begins to deteriorate, the project almost always suffers. Executives must promote a good working relationship between line and project management. One of the most common ways of destroying this relationship is by asking, Who contributes to profitsthe line or project manager? Project managers feel that they control all project profits because they control the budget. The line managers, on the other hand, argue that they must staff with appropriately budgeted-for personnel, supply the resources at the
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desired time, and supervise performance. Actually, both the vertical and horizontal lines contribute to profits. These types of conflicts can destroy the entire project management system. The previous examples should indicate that project management is more behavioral than quantitative. Effective project management requires an understanding of: Quantitative tools and techniques Organizational structures Organizational behavior Most people understand the quantitative tools for planning, scheduling, and controlling work. It is imperative that project managers understand totally the operations of each line organization. In addition, project managers must understand their own job description, especially where their authority begins and ends. During an in-house seminar on engineering project management, the author asked one of the project engineers to provide a description of his job as a project engineer. During the discussion that followed, several project managers and line managers said that there was a great deal of overlap between their job descriptions and that of the project engineer. Organizational behavior is important because the functional employees at the interface position find themselves reporting to more than one bossa line manager and one project manager for each project they are assigned to. Executives must provide proper training so functional employees can report effectively to multiple managers.

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INTRODUCTION TO BANK

Askari Bank Limited (AKBL) works as a Unit of Army Welfare Trust was established for the Welfare of Army Officials. The office of Army Welfare Trust is situated at AWT Plaza, Rawalpindi. AWT offers the AWT Saving Scheme to the army officials only. AWT has its units as under: 1. Askari Bank Ltd. 2. Askari Associates. 3. Askari General. 4. Private Business. 5. Textile Mills. 6. Cement Industry. 7. Askari Aviations Incorporated in Pakistan on October 09, 1991. The bank obtained business commencement certificate on February 26, 1992 and started operations form April 1, 1992, as public limited company, and has since expanded into a nation-wide presence of 51 branches, supported by a network of online ATMs. The Bank is listed on the Karachi, Lahore and Islamabad Stock Exchanges and the initial public offering was over subscribed by 16 times. Askari Commercial Bank is scheduled Commercial Bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance 1962.

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Hierarchy of the bank

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We just took one of their department names Establishment Division.

Establihsment Division

Administration

Premesis

Security

Procurement

Project on Opening of New Branches Feasibility of the New Branch. Infrastructure of the Branch Management of manpower Equipments Facilities Material Informational technology

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New Branch opening -Project Management

Introduction
Establishment Division of Askari Bank Ltd is responsible to expand the branch network of the bank. As per annual branch expansion Plan [ABEP] every year management of the consider and evaluate the potential areas and localities for branch network. Through rigorous process of area selection the respective regional office forward a proposal for new tentative potential site to operations Group for onward setting approval from regulator (SBP). Scope of Work : Project Planning: Making action plan: This involves translating the plan into a detailed account of the different steps in the project, indicating who is responsible for them, the timescale for the different phases and their outcomes. An action plan can be presented in a table: Premises Department Basically the project initiate in the premises department. They are responsible for the lease agreement of property, construction, and rent of the property. They are also responsible of finalizing the property and terms with land lord, trading, contracting, electric provision, and licensing from local authorities. Procurement Department They are responsible for providing that branches all the necessities like generator, cctv cameras, ATM machines, fax, photocopier, PABX Exchange.

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Administration Department Admin department are responsible for providing stationary, bills, TADA and maintains department which provide Labor and worker for the project. For the interior of branch and decorating and all other needs such as work stations for the employees. Project Life Cycle

Project Manager Typically a project manager will be nominated to lead a project and will be expected to be fully accountable for meeting its objectives. The project manager will be the leader of the project team and will be responsible for ensuring the following are completed in a timely way:

Gaining approval for the project aim and terms of reference Selecting and leading the team and setting individual objectives Ensuring that the project is planned in appropriate detail
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Allocating and monitoring the work and cost Motivating the team Reporting progress back to the organization Helping the team to solve project problems Reviewing and closing down

Skills of Project Mnager & Line manager. Very broad skills and a deal of experience are needed to manage a large project successfully. They include business knowledge, technical skills and individual and team leadership skills. Individual Skills Team Skills Technical Skills

Tools and techniques are used Project managers use a number of tools and techniques during a project life cycle such as:-

Verifiable objective setting

Brain storming Work Breakdown Structures This is a technique to analyze the content of work and cost by breaking it down into its component parts. It is produced by:

Identifying the key elements Breaking each element down into component parts Continuing to breakdown until manageable work packages has been identified. These can then be allocated to the appropriate person.

Project Evaluation Review Technique (PERT)

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Network analysis or PERT is used to analyze the inter-relationships between the tasks identified by the work breakdown structure and to define the dependencies of each task. Whilst laying out a PERT chart it is often possible to see that assumptions for the order of work are not logical or could be achieved more cost effectively by re-ordering them Critical path analysis (CPA) CPA is used in conjunction with PERT analysis to identify the tasks that are critical in determining the overall duration of the project. In the example above the critical path is shown by the tasks with heavy outline boxes. Milestone Planning Milestone planning is used to show the major steps that are needed to reach the goal on time. When several tasks have been completed the milestone is reached. It is often used at senior manager reviews.

Planning permission granted Foundations laid Walls constructed Roof built Fixtures, fittings and services completed Garden landscaped House inspected and approved House sold

For simple projects, a milestone plan may be the only plan required. Accrued cost and earned value analysis These measures enable the progress of the project to be monitored in financial terms. Gantt charts

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Gantt charts (named after the inventor) or bar charts, as they are sometimes called, are used to display and communicate the results of PERT and Critical Path analysis in a simple bar chart format that can be readily understood by those not involved in the detail of the project. Who else would be involved and what would they do? A number of people may be involved depending on the size of the project. They fall into a number of groups. The Project Sponsor The project sponsor should be a senior person in the organization who has the most to gain from the projects success and the most to lose if it fails. The Steering Team The steering team may only be one person on a small project (perhaps the project sponsor) who meets informally with the project manager. On a large project a formal cross functional senior team will be set up to meet regularly to review progress and provide strategic guidance. Functional or line managers The line manager of each team member will want to be kept informed about the progress of the project and be involved in setting of individual objectives. The project customer The project customer should either be a member of the steering team or represented on that team. What are the main roles and responsibilities? There are three key roles in the management of projects whether they are service development projects, organizational change projects, TQM projects, or facilities projects.

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Top Management Setting the conditions and culture such that the business can select and implement appropriate projects to support the business. Middle management Ensuring that all projects are selected, allocated, steered and closed down satisfactorily. Ensure that projects that are not approved are not worked on. Operational staff To use the tools and techniques to manage projects effectively.

SWOT ANALYSIS: Strength:

Project manger is motivating the progress of line manager and his team for a particular task. With periodic reporting a sense of accountability to every one within a stipulated time the task should be accompanied

Weakness:
Sometime project manager past has been occupied by in- competent manger. As in case of developing contract, project manager has been appointed on political basis. All work will be done by competent line manger. Due to moral of the line manger things get delayed and miss use of time and resources. Instead of completion of task any person either project in charge or line manager can disturb the whole plan.

Opportunity:
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Grooming of line manager for future promotion-every body knows the importance of completion of task. Creativity of a person enhances. Threat: Both parties join hand together and delayed the project. Holding in the team will create or cause and confusion. Disseminations of public resources.

Recommendation:
Project manager .line manager and other staff member are as a team. They all have common goal for a specific time, period- every one of team member is expert in his field. Grooming is very important in such scenario. No duplication of labor and work for his section also help other to fulfils the target in a stipulated time. Diversity of experience of different departments can be achieved.

Reading List
The Handbook of Project-Based Management - JR Turner, McGraw Hill, ISBN 007 7076567 The Skills of Leadership - John Adair, Gower, ISBN 0 7045 0555 X Implementing Projects - Trevor L Young, The Industrial Society, ISBN 0 85290 880 6 Planning Projects - Trevor L Young, The Industrial Society, ISBN 0 85290 879 2 Project Leadership - Briner, Geddes and Hastings, Gower, ISBN 0566 02475 6 Advance Project Management - F L Harrison, Gower, ISBN 0 566 02475 6 Handbook of Project Management - D Lock, Gower, ISBN 0 566 07391 s

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