Management Management in all business and organizational activities is the act of getting people together to accomplish desired goals

and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Nature of Management Nature of management can be described as follows. Continuous Process: Management is a never ending process. It will remain the part of organization till the organization itself exists. Management is an unending process as past decisions always carry their impact for the future course of action. Universal in Nature: Management is universal in nature i.e. it exists everywhere in universe wherever there is a human activity. The basic principles of management can be applied any where whether they are business or non-business organization. Multidisciplinary: Management is basically multidisciplinary. Though management has developed as a separate discipline it draws knowledge and concepts of various other streams like sociology, psychology, economics, statistics etc. Management links ideas and concepts of all these disciplines and uses them for good-self of the organization. Management is a group activity. Management is a vital part of group activity. As no individual can satisfy all his needs himself, he unites with his co-workers and work together as an organized group to achieve what he can not achieve individually. Management is goal oriented: Management is a goal oriented activity. It works to achieve some predetermined objectives or goals which may be economic or social.

Dynamic: Management is dynamic in nature i.e. techniques to mange business changes itself over a period of time. System of authority: Authority is power to get the work done by others and compel them to work systematically. Management can not perform in absence of authority. Authority and responsibility depends upon position of manager in organization. Management is an art: Management is considered as art as both requires skills, knowledge, experience and creativity for achievement of desired results. Management is Science. Management is considered as science. Science tells about the causes and effects of applications and is based on some specific principles and procedures. Management also uses some principles and specific methods. These are formed by continuous observations.

Functions of Management

Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and Motivation. 1. Planning

It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc. 2. Organizing It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:

Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

3. Staffing It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc.

The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & ODonell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place). Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.

4. Directing It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered lifespark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

Supervision Motivation Leadership Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction. Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding. 5. Controlling It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished. Therefore controlling has following steps: o Establishment of standard performance. o Measurement of actual performance. o Comparison of actual performance with the standards and finding out deviation if any. o Corrective action.

Project management Project management is a discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives. It is an organized endeavor to accomplish a specified non-routine task. Although projects are not repetitive, they take significant amount of time to complete A project is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables), undertaken to meet unique goals and objectives, usually to bring about beneficial change or added value. Objectives To accomplish its assigned mission It must adhere to tight time schedule, adhere to strict budgets, report to top management personnel of the organization etc. Ensure Projects are Delivered within Budget Ensure Projects are Delivered within Schedule Commitments Deliver Quality Solutions Reduced Errors Improved Effectiveness Appropriate Risk Management and Internal Controls Continuous Process Improvement via Collaboration Implement Project Communications and Oversight

Phases:

Traditionally, project management includes a number of elements: four to five process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes will be used. Major process groups generally include]:

Initiation Planning or development Production or execution Monitoring and controlling Closing

Initiating The initiating processes determine the nature and scope of the project. The initiating stage should include a plan that encompasses the following areas:

Analyzing the business needs/requirements in measurable goals Reviewing of the current operations Financial analysis of the costs and benefits including a budget Stakeholder analysis, including users, and support personnel for the project Project charter including costs, tasks, deliverables, and schedule

Planning and design The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectively manage risk during project execution. Project planning generally consists of

determining how to plan (e.g. by level of detail or rolling wave); developing the scope statement; selecting the planning team; identifying deliverables and creating the work breakdown structure; identifying the activities needed to complete those deliverables and networking the activities in their logical sequence; estimating the resource requirements for the activities; estimating time and cost for activities; developing the schedule; developing the budget; risk planning; gaining formal approval to begin work.

Additional processes, such as planning for communications and for scope management, identifying roles and responsibilities, determining what to purchase for the project generally advisable. For new product development projects, conceptual design of the operation of the final product may be performed concurrent with the project planning activities, and may help to inform the planning team when identifying deliverables and planning activities. Executing Executing consists of the processes used to complete the work defined in the project plan to accomplish the project's requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan and other frameworks that might be applicable to the type of project at hand. Monitoring and controlling Monitoring and controlling consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Monitoring and Controlling includes:

Measuring the ongoing project activities ('where we are'); Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be); Identify corrective actions to address issues and risks properly (How can we get on track again); Influencing the factors that could circumvent integrated change control so only approved changes are implemented

In multi-phase projects, the monitoring and control process also provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan. Project Maintenance is an ongoing process, and it includes:

Continuing support of end users Correction of errors Updates of the software over time

In this stage, auditors should pay attention to how effectively and quickly user problems are resolved. Closing Closing includes the formal acceptance of the project and the ending thereof. Administrative activities include the archiving of the files and documenting lessons learned. This phase consists of:

Project close: Finalize all activities across all of the process groups to formally close the project or a project phase Contract closure: Complete and settle each contract (including the resolution of any open items) and close each contract applicable to the project or project phase.

Techniques: The three basic project planning techniques are Gantt chart, CPM and PERT. All monitor progress and costs against resource budgets. Gantt Chart

Gantt chart is now commonly used for scheduling the tasks and tracking the progress of

energy management projects. Gantt charts are developed using bars to represent each task. The length of the bar shows how long the task is expected to take to complete. Duration is easily shown on Gantt charts. CPM - Critical Path Method

DuPont developed a Critical Path Method (CPM) designed for Complex project, like the above example, require a series of activities, some of which must be performed sequentially and others that can be performed in parallel with other activities. This collection of series and parallel tasks can be modeled as a network. CPM models the activities and events of a project as a network. Activities are shown as nodes on the network and events that signify the beginning or ending of activities are shown as arcs or lines between the nodes. PERT- Programme Evaluation and Review Technique

The Program Evaluation and Review Technique (PERT) is a network model that allows for randomness in activity completion times. PERT has the potential to reduce both the time and cost required to complete a project.

PERT Programme Evaluation and Review Technique It is the name given to planning, monitoring, controlling and evaluation of complex projects It is used for non repetitive-projects It has been used for projects such as defense and nuclear powered submarines. It is a planning tool which enables the project manager to estimate the time required to complete a proposed project. Provides a time schedule for various project activities

Checking scheduled time against the actual time taken for an activity Minimize delay time in various parts of the overall job and helps on exp editing the completion of the projects. It is method of budgeting resources to predetermine the job on schedule PERT tells us how to set up network, how to calculate completion tie and how to monitor and control work.

Advantages:

PERT chart explicitly defines and makes visible dependencies between the WBS elements PERT facilitates identification of the critical path and makes this visible PERT facilitates identification of early start, late start, and slack for each activity, PERT provides for potentially reduced project duration due to better understanding of dependencies leading to improved overlapping of activities and tasks where feasible. The large amount of project data can be organized & presented in diagram for use in decision making.

Disadvantages:

There can be potentially hundreds or thousands of activities and individual dependency relationships The network charts tend to be large and unwieldy requiring several pages to print and requiring special size paper The lack of a timeframe on most PERT/CPM charts makes it harder to show status although colours can help (e.g., specific colour for completed nodes) When the PERT/CPM charts become unwieldy, they are no longer used to manage the project.

The Network Diagram In a project, an activity is a task that must be performed and an event is a milestone marking the completion of one or more activities. Before an activity can begin, all of its predecessor activities must be completed. Project network models represent activities and milestones by arcs and nodes. PERT is typically represented as an activity on arc network, in which the activities are represented on the lines and milestones on the nodes. Steps in the PERT Planning Process 1. Identify activities and milestones The activities are the tasks required to complete the project. The milestones are the events marking the beginning and end of one or more activities. 2. Determine activity sequence This step may be combined with the activity identification step since the activity sequence is known for some tasks. Other tasks may require more analysis to determine the exact order in which they must be performed. 3. Construct the Network Diagram Using the activity sequence information, a network diagram can be drawn showing the sequence of the serial and parallel activities. 4. Estimate activity times

Weeks are a commonly used unit of time for activity completion, but any consistent unit of time can be used. A distinguishing feature of PERT is its ability to deal with uncertainty in activity completion times. For each activity, the model usually includes three time estimates:

Optimistic time (OT) - generally the shortest time in which the activity can be completed. (This is what an inexperienced manager believes!) Most likely time (MT) - the completion time having the highest probability. This is different from expected time. Seasoned managers have an amazing way of estimating very close to actual data from prior estimation errors. Pessimistic time (PT) - the longest time that an activity might require. The expected time for each activity can be approximated using the following weighted average: Expected time = (OT + 4 x MT+ PT) / 6 This expected time might be displayed on the network diagram. Variance for each activity is given by: [(PT - OT) / 6]2

5. Determine the Critical Path

The critical path is determined by adding the times for the activities in each sequence and determining the longest path in the project. The critical path determines the total time required for the project. The amount of time that a non-critical path activity can be delayed without delaying the project is referred to as slack time. If the critical path is not immediately obvious, it may be helpful to determine the following four quantities for each activity: ES - Earliest Start time EF - Earliest Finish time LS - Latest Start time LF - Latest Finish time These times are calculated using the expected time for the relevant activities. The ES and EF determines the earliest time at which an activity can start and finish considering its predecessor activities. The latest start and finish times are the latest times that an activity can start and finish without delaying the project. LS and LF are found by working backward through the network. The difference in the latest and earliest finish of each activity is that activity's slack. The variance in the project completion time can be calculated by summing the variances in the completion times of the activities in the critical path. Given this variance, one can calculate the probability that the project will be completed by a certain date such that the project can be accelerated by adding the resources required to decrease the time for the activities in the critical path. 6. Update as project progresses Make adjustments in the PERT chart as the project progresses. As the project unfolds, the estimated times can be replaced with actual times. In cases where there are delays, additional resources may be needed to stay on schedule and the PERT chart may be modified to reflect the new situation.

Terminologies:

PERT event: a point that marks the start or completion of one or more activities. It consumes no time and uses no resources. When it marks the completion of one or more tasks, it is not reached (does not occur) until all of the activities leading to that event have been completed. predecessor event: an event that immediately precedes some other event without any other events intervening. An event can have multiple predecessor events and can be the predecessor of multiple events. successor event: an event that immediately follows some other event without any other intervening events. An event can have multiple successor events and can be the successor of multiple events. PERT activity: the actual performance of a task which consumes time and requires resources (such as labor, materials, space, machinery). It can be understood as representing the time, effort, and resources required to move from one event to another. A PERT activity cannot be performed until the predecessor event has occurred. Optimistic time (O): the minimum possible time required to accomplish a task, assuming everything proceeds better than is normally expected Pessimistic time (P): the maximum possible time required to accomplish a task, assuming everything goes wrong (but excluding major catastrophes). Most likely time (M): the best estimate of the time required to accomplish a task, assuming everything proceeds as normal. Expected time (TE): the best estimate of the time required to accomplish a task, accounting for the fact that things don't always proceed as normal (the implication being that the expected time is the average time the task would require if the task were repeated on a number of occasions over an extended period of time). TE = (O + 4M + P) 6

Float or Slack is the amount of time that a task in a project network can be delayed without causing a delay - Subsequent tasks (free float) or Project Completion (total float) Critical Path: the longest possible continuous pathway taken from the initial event to the terminal event. It determines the total calendar time required for the project; and, therefore, any time delays along the critical path will delay the reaching of the terminal event by at least the same amount. Critical Activity: An activity that has total float equal to zero. Activity with zero float does not mean it is on the critical path. Lead time: the time by which a predecessor event must be completed in order to allow sufficient time for the activities that must elapse before a specific PERT event reaches completion. Lag time: the earliest time by which a successor event can follow a specific PERT event. Slack: the slack of an event is a measure of the excess time and resources available in achieving this event. Positive slack would indicate ahead of schedule; negative slack would indicate behind schedule; and zero slack would indicate on schedule. Fast tracking: performing more critical activities in parallel Crashing critical path: Shortening duration of critical activities

CPM Critical Path Method The critical path method (CPM) is an algorithm for scheduling a set of project activities. It is an important tool for effective project management. It is helpful in calculating the minimum time and the sequence of tasks needed to complete a project

It is mostly used for construction projects such as bridges, dams, canals etc., where engineers try to complete the job at the earliest to avoid rising costs.

Features: Determine the critical path on which the project duration depends. It gives the most economical schedule for a fixed duration. It determined the pattern of the allocation of available limited resources.

Purpose of CPM To ensure logical discipline in planning, scheduling and controlling projects. To encourage more long range and detailed planning of projects To provide management with periodic reports on the progress of projects. To identify the most critical element of the plan To identify the critical path that takes the longest time in the completion of the project.

Ex. The following table gives activities in a construction project and the other relevant information. Activity: 1-2 1-3 Duration: 20 25 2-3 10 2-4 12 3-4 6 4-5 10

Solution:

To find critical path:

All possible critical paths 1.2.3.4.5 1.2.4.5 1.3.4.5

path durations 20+10+6+10= 46 20+12+10=42 25+6+10=41

Critical path will be 12-3-4-5 and project duration will be 46 days.

PERT

CPM

1) Origin: military 2) Event oriented approach 3) Allows uncertain 4) Probabilistic model 5) Time based 6) It averages time 7) It estimates 3 different times Of completion

1) origin: Industry 2) activity oriented approach 3) does not allow uncertainity 4) deterministic model 5) cost based 6) does not average time 7) it estimates only one completion time