Project Management:

Project management is the use of specific knowledge, skills, tools and techniques to deliver
something of value to people. The development of software for an improved business process,
the construction of a building, the relief effort after a natural disas ter, the expansion of sales into
a new geographic market—these are all examples of projects.

In simple terms, project management means the process of leading a team to hit goals or complete
deliverables within a set timeframe. Project management involves project documentation, planning,
tracking, and communication—all with the goal of delivering work successfully within
the constraints of time, scope, and budget.

According to Roman D. Daniel in his ‗Managing project- A systems approach, ‗‘ Project

management involves both technical and managerial competence. As a generalization, it could be
said thatin research projects there would be greater emphasis on technical skills where as in large
development projects the major emphasis would shift to managerial ability.‘‘

According to W. L. Hill and G. R. Jones, ‗‘Project management is the overall management of the
innovation process, from generation of the original concept the through development and in the
final production and shipping.‘‘

According to R. J. Meredith and S. J. Mantel, ‗‘Project management provides an organization

with powerful tools that improves its ability to plan, implement and control its activities as well
as ways in which it utilizes its people and resources.‖

According to B. B. Goel in his ‗Project management-Principles and Techniques‘, ‗‘Project

management is an organized venture for managing projects. It involves scientific application of
modern tools and techniques in planning, financing, implementing, monitoring, controlling and
coordinating uniques activities and tasks to produce. Desirable outputs in consonance with
predetermined objectives, within the constraints of time, cost, quantity and quality.‘‘

Characteristics of project management:

1. Organizational process
2. Group effort
3. Scientific
4. Dynamic process
5. Utilization of resources
6. Eradication of limitations
7. Specific objectives
8. Better co-ordination

Importance of project management:

1. Compress of the project
2. Global competition
3. Knowledge expansion
4. Corporate downsizing
5. Increased customer focus
6. Rapid development of third world and closed economics
7. Small project represent large problem
8. Proper execution of project
9. Problem identification and innovation
10. To justify the effectiveness of project

Constraints of project management:

1. Lack of expert
2. Financial limitation
3. Political instability
4. Lack of professional knowledge
5. Lack of training
6. Lack of technology
7. Corruption
8. Administrative complexity
9. Lack of experienced manager
10. Inadequacy of resources
11. Lack of efficient coordinator

The role of the project manager involves many tasks and responsibilities, including:

 Implementing project management methodologies

 Planning and defining scopes

 Setting and managing expectations

 Crafting process

 Creating project plans

 Managing tasks
 Resource allocation and planning

 Time and cost estimating

 Analyzing and managing risks and issues

 Monitoring and reporting project status

 Providing team leadership

 Influencing strategy

 Facilitating communication and collaboration

 Planning and facilitating meetings

That‘s a lot to include in one job description—one that doesn‘t actually hold any operational or
management responsibility for the team working on the projects.

Project managers are often in a tough position of trying to make things happen without the authority
to truly push an issue. To be effective, you have to gain the trust and respect of your teams and have
endorsement from senior management.

Network Analysis:
Network analysis is very much important to determine the project duration and understand the different
roles of the different activities. It is the combination of integrated techniques to analyze the social
relations among entities. It can be used to study wide range of systems including various networks.

Concept of network analysis:

Network analysis is a strategy which plans the projects by analyzing the project activities. It prepares all
of the activities involved and performed simultaneously. It assists to design , plan, co-ordinate, control,
decision make in lieu of completing the project economically limited time and with the limitations of
available resources.

 According to M. Serajul Islam, ―Network analysis is a management technique designed for use in
the planning, scheduling, monitoring and controlling of projects. The basic objective in applying
network analysis to a project to achieve completion in the best possible time at the least cost.‖

According to Nirmal Sing indicating Project Evaluation Review Technique (PERT) and Critical Path
Method (CPM), ―Network Analysis of PERT and CPM are used for planning, monitoring and
implementing time bound projects. These techniques help managers in deciding the logical sequence in
which various activities will be performed. By applying these techniques, large and complex projects can
be executed within the stipulated time and cost.‖

Network analysis is a method of studying the relationships between entities in a network. It involves
analyzing the connections, or links, between the entities, as well as the characteristics of the entities
themselves. Network analysis can be used to study a wide range of systems, including social networks,
transportation networks, and biological networks.

Characteristics of network analysis:

1. It is a strategy of implementing projects

2. It is called as management strategy also
3. It is a combination of various issues
4. It helps managers to make decisions about different matters
5. It is related with planning, scheduling, monitoring and controlling
6. Widely used
7. Less time, less labor and less money

Advantages of Network Analysis

1) Minimize Production Delay, Interruptions and Conflicts :

This is achieved by identifying all activities involved in the project, their precedence constraints, etc.

2) Minimization of Total Project Cost:

After calculating the total cost of the project the next step is to minimize the total cost. It is done through
the calculation of cost of delay in the completion of an activity of the project and calculating the cost of
the resources which are required to complete the project in a given time period.

3) Trade-off between Time and Cost of Project:

The duration of same activity can be reduced if additional sources are employed and this is the main idea
on which the trade-off between time and cost of project is based. Due to technical reasons, the duration
can be reduced in a specific limit. Similarly, there is also a most cost efficient duration called 'normal
point' stretching the activity beyond it may lead to a rise in direct cost.
4) Minimization of Total Project Duration:
After checking the actual performance against the plan the project duration can be controlled and
minimized. If any major difference is found then apply the necessary reschedule process by updating and
revising the uncompleted portion of the project.

5) Minimization of Idle Resources:

If there is any variation in the use of scars resources then it can disturb the entire plan and hence it is
required that efforts should be made to avoid any increase in cost due to idle resources.

6) For planning, scheduling and controlling of operations in large and complicated projects network
analysis is very important and powerful tool.
7) For evaluating the performance level of actual performance in comparison to planned target network
analysis is a very useful tool.
8) With the use of network analysis technological interdependence of different activities can be
determined for proper integration and co-ordination of various operations.
9) Network analysis gives the proper co-ordination and communication between various parts of the
project.
10) Network analysis deals with the time-cost trade-off and provides the optimum schedule of the
project.
11) This technique is very simple and suitable for the computer users.
12) Identifying key influencers: In a social network, for example, network analysis can be used to
identify the individuals who have the most connections and are likely to have the greatest
influence on the spread of ideas or behaviors.
13) Understanding the spread of information: Network analysis can be used to study the flow of
information through a network, such as how an idea or rumor spreads through a social network.
14) Identifying bottlenecks or vulnerabilities: In a transportation network, network analysis can be
used to identify bottlenecks or other congestion points that may affect the network‘s performance.
15) Analyzing the structure of a network: Network analysis can be used to study the organization of a
network, including the patterns of connectivity between the nodes and the overall structure of the
network.

Disadvantages of Network Analysis

1. Network construction of complex project is very difficult and time consuming in network
analysis.
2. Actual time estimation of various activities is a difficult exercise.
3. Analysis of the project is a very difficult work because a number of resource constraints exist in
the project.
4. In many situations time-cost trade off procedure is complicated.
Techniques of network analysis:
According to Sirajul Islam, Network analysis is a management technique is designed for use in the
planning, scheduling, monitoring and controlling the project.‘‘
He said 4 types of techniques-
1. Planning
2. Scheduling
3. Monitoring and
4. Controlling
Overally,
1. Planning
2. Allocation of resources
3. Scheduling procedure
4. Optimum cost and duration
5. Control
6. Dynamic response cycle

Component of Network Analysis:

1) Events :
In a network diagram events represent the project milestones. For example, start or completion of an
activity or activities, and occurrence of the events at a particular instance of time at which some specific
portion of project has been or is to be achieved. In the network events are represented by the circles
(nodes). The events can be further classified into the following two categories :

i) Merge Event :
The joint completion of more than one activity which shows an activity is called merge event. This is
shown in figure.

ii) Burst Event :

An event which shows the beginning of more than one activity is known as burst event. This is shown in
figure.

The numbers are used in a network diagram for representing events. For indicating progress of the work,
each event is identified by a number which is higher than its immediate preceding event. The numbering
of events in the network diagram must start from left (start of the project) to the right (completion of the
project) and top to the bottom. It is noted that there should not be any duplication in the numbering of
events.

2) Jobs/Activity/Tasks :
The project operations (or tasks) are represented by activities which are conducted in a network diagram.
These activities take a certain amount of time and require resources for completion. An activity is
represented by an arrow and its head indicates the direction of progress in the project. The numbering of
starting (tail or initial) event and ending (head or terminal) event identifies activities. For example, an
arrow (i, j) between two events shows that the tail event i represents starting of the activity and the head
event j represents the completion of the activity which is shown in figure. The activities can be further
classified into the following three categories :
i) Predecessor Activity :
Predecessor activity is an activity which is completed before one or more other activities start.

ii) Successor Activity :

Successor activity is an activity which starts immediately after one or more of other activities are
completed.

iii) Dummy Activity :

The activity which does not use any time or resource for completion is called dummy activity.
A dummy activity is used in a network to establish the precedence relationship among various activities
of the project.

3) Overviews
4) Objectives

5)General approach

6) Contractual approach
7)
Critical Path Method

The critical path method is a technique that allows you to identify tasks that are necessary for project
completion. The critical path in project management is the longest sequence of activities that must be
finished on time to complete the entire project. Below, we break down the steps of how you can find the
critical path for your next project.

The critical path method (CPM) is a technique where you identify tasks that are necessary for project
completion and determine scheduling flexibilities. A critical path in project management is the longest
sequence of activities that must be finished on time in order for the entire project to be complete. Any
delays in critical tasks will delay the rest of the project. CPM revolves around discovering the most
important tasks in the project timeline, identifying task dependencies, and calculating task durations.
CPM was developed in the late 1950s as a method to resolve the issue of increased costs due to inefficient
scheduling. Since then, CPM has become popular for planning projects and prioritizing tasks. It helps you
break down complex projects into individual tasks and gain a better understanding of the project‘s
flexibility.

According to Handbook on Management of project implementation, ‗‘The critical path will represent
the sequence of activities requiring the longest time for project implementation.‘‘

According to Prasanna Chandra in his books ‘Projects: Olanning, Analysis, Financing,

Implementation and Review’, Critical Path Method is the network diagram. The network diagram
referred to as the project graph, shows the activities and events of the project and their logical
relationships.‘‘

According to William J. Pfeiffer in his ‗‘Theories and Models in Applied Behavioral Science (Vol-3),
‗‘Critical path is the activity among the simultaneous ones that consumes the most time. Looking at the
critical path can save time by combining activities that can be accomplished simultaneously. When the
critical path‘s time allotment (the time needed for the longer activity) in order to not be caught short on
time.‖

Techniques of Critical Path Method:

1. List activities

Use a work breakdown structure to list all the project activities or tasks required to produce the
deliverables. The list of activities in the work breakdown structure serves as the foundation for the rest of
the CPM.
For example, let‘s say the marketing team is producing a new interactive blog post. Here are some tasks
that might be in the work breakdown structure:
Once you have a high-level idea of everything that needs to be done, you can start identifying task
dependency

2. Identify dependencies
Based on your work breakdown structure, determine the tasks that are dependent on one another. This
will also help you identify any work that can be done in parallel with other tasks.
Here are the task dependencies based on the example above:
 Task B is dependent on A
 Task C is dependent on B
 Tasks C and D can run in parallel
 Task E is dependent on D
 Task F is dependent on C, D, and E
The list of dependent tasks is referred to as an activity sequence, which will be used to determine the
critical path.

3. Create a network diagram

The next step is to turn the work breakdown structure into a network diagram, which is a flowchart
displaying the chronology of activities. Create a box for each task and use arrows to depict task
dependencies.
You‘ll add other time-bound components to the network diagram until you have the general project
schedule figured out.

4. Estimate task duration

To calculate the critical path, the longest sequence of critical tasks, you first need to estimate the duration
of each activity.
To estimate the duration, try:
 Making educated guesses based on experience and knowledge
 Estimating based on previous project data
 Estimating based on industry standards
Alternatively, try using the forward pass and backward pass technique:
 Forward pass: This is used to calculate early start (ES) and early finish (EF) dates by using a previously
specified start date. ES is the highest EF value from immediate predecessors, whereas EF is ES +
duration. The calculation starts with 0 at the ES of the first activity and proceeds through the schedule.
Determining ES and EF dates allows for early allocation of resources to the project.
 Backward pass: This is used to calculate late start (LS) and late finish (LF) dates. LS is LF - duration,
whereas LF is the lowest LS value from immediate successors. The calculation starts with the last
scheduled activity and proceeds backward through the entire schedule.
The early and late start and end dates can then be used to calculate float, or scheduling flexibility of each
task.

5. Calculate the critical path

Calculating the critical path can be done manually, but you can save time by using a critical path
algorithm instead.
Here are the steps to calculate the critical path manually:
Step 1: Write down the start and end time next to each activity.
 The first activity has a start time of 0, and the end time is the duration of the activity.
 The next activity‘s start time is the end time of the previous activity, and the end time is the start time plus
the duration.
 Do this for all the activities.
Step 2: Look at the end time of the last activity in the sequence to determine the duration of the entire
sequence.
Step 3: The sequence of activities with the longest duration is the critical path.
Using the same example above, here‘s what the critical path diagram might look like:
Once you have the critical path figured out, you can build the actual project schedule around it.

6. Calculate the float

Float, or slack, refers to the amount of flexibility of a given task. It indicates how much the task can be
delayed without impacting subsequent tasks or the project end date. Finding the float is useful in gauging
how much flexibility the project has. Float is a resource that should be used to cover project risks or
unexpected issues that come up.
Critical tasks have zero float, which means their dates are set. Tasks with positive float numbers belong in
the non-critical path, meaning they may be delayed without affecting the project completion date. If
you‘re short on time or resources, non-critical tasks may be skipped. Calculating the float can be done
with an algorithm or manually. Use the calculations from the section below to determine the total float
and free float.

Importance of CPM:

 Improves future planning: CPM can be used to compare expectations with actual progress. The data used
from current projects can inform future project plans.
 Facilitates more effective resource management: CPM helps project managers prioritize tasks, giving
them a better idea of how and where to deploy resources.
 Helps avoid bottlenecks: Bottlenecks in projects can result in lost valuable time. Plotting out project
dependencies using a network diagram, will give you a better idea of which activities can and can‘t run in
parallel, allowing you to schedule accordingly
 Stronger communication: Critical path method schedules require input from key players across all stages
of a project lifecycle. Getting together the expertise of various team members and subcontractors, from
architects to electricians to construction managers, makes the schedules more realistic and robust from the
start.
 Easier prioritization: Identifying the critical path helps project managers clarify priorities and determine
the level of each task. Float , also known as slack, measures how long a task can be delayed before it
impacts the completion date. Critical Path tasks have zero float, while non-critical activities have positive
float. Determining the float of each task helps teams assess priorities. The lower the float, the higher the
priority.
 Accuracy in scheduling: The CPM is a popular and reliable tool for improving the accuracy of project
schedules. Several project managers practise CPM in relation with the program evaluation and review
technique, it helps to estimate project duration.
 Better risk detention: CPM schedules make clear the relationships between dependent tasks, so project
manager can better practice of it.
 Greater adaptability to quickly rework the schedule
 More visible impact to understand a project‘s dynamism

Management by Objectives:

Management by objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both management
and employees. According to the theory, having a say in goal setting and action plans encourages
participation and commitment among employees, as well as aligning objectives across the organization.

Management by objectives:
Management by objectives (MBO), also known as management by planning (MBP), was first popularized
by Peter Drucker in his 1954 book The Practice of Management. Management by objectives is the
process of defining specific objectives within an organization that management can convey to
organization members, then deciding how to achieve each objective in sequence. This process allows
managers to take work that needs to be done one step at a time to allow for a calm, yet productive work
environment. In this system of management, individual goals are synchronized with the goals of the
organization.
An important part of MBO is the measurement and comparison of an employees actual performance with
the standards set. Ideally, when employees themselves have been involved with the goal-setting and
choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.
According to George S. Odiorne,‘‘ The system of management by objectives can be described as a
process whereby the superior and subordinate jointly identify common goals, define each individual's
major areas of responsibility in terms of the results expected of him or her, and use these measures as
guides for operating the unit and assessing the contribution of each of its members.‘‘

According to Griffin, ‗‘In management by objectives a manager and as subordinate collaborate in goal
setting for the subordinate with understanding that the extent to which these goals are attained will be a
major factor in evaluating and rewarding the subordinates performance.‘‘

MBO refers to the process of setting goals for the employees so that they know what they are supposed to
do at the workplace. Management by Objectives defines roles and responsibilities for the employees and
help them chalk out their future course of action in the organization.

Example, A company can set various goals with its employees. In the case of a call center, an MBO
could be to increase customer satisfaction, say, by 10%, while reducing call times by one minute. The
onus is now on finding ways to achieve this goal. Once that‘s decided on, it‘s important to get
employees on board and then monitor their progress, provide feedback, and reward those who do a good
job.
Management by objectives at its core is the process of employers/supervisors attempting to manage their
subordinates by introducing a set of specific goals that both the employee and the company strive to
achieve in the near future, and working to meet those goals accordingly.
Five steps:

1. Review organizational goal

2. Set worker objective
3. Monitor progress
4. Evaluation
5. Give reward
Companies that use MBO often report greater sales rates and productiveness within the organization.
Objectives can be set in all domains of activities, such as production, marketing, services, sales, R&D,
human resources, finance, and information systems. Some objectives are collective, and some can be
goals for each individual worker. Both make the task at hand seem attainable and enable the workers to
visualize what needs to be done and how.

Advantages

 Employees take pride in their work and are assigned goals they know they can achieve that
match their strengths, skills, and educational experiences.
 Assigning tailored goals brings a sense of importance to employees, boosting their output and
loyalty to the company.
 Communication between management and employees is increased.
 Management can create goals that lead to the success of the company.

Disadvantages

 As MBO is focused on goals and targets, it often ignores other parts of a company, such as the
culture of conduct, a healthy work ethos, and areas for involvement and contribution.
 Strain is increased on employees to meet the goals in a specified time frame.
 Employees are encouraged to meet targets by any means necessary, meaning that shortcuts could
be taken and the quality of work compromised.
 If management solely relies on MBO for all management responsibilities, it can be problematic
for areas that don‘t fit under MBO.

Management by Objectives (MBO) in 5 Steps

MBO outlines five steps that organizations should use to put the management technique into practice.

1. Either determine or revise organizational objectives for the entire company. This broad overview
should be derived from the firm‘s mission and vision. Top mangers set goals.
2. Translate the organizational objectives to employees. In 1981, George T. Doran used the
acronym SMART (specific, measurable, acceptable, realistic, time-bound) to express the
concept.
3. Stimulate the participation of employees in setting individual objectives. After the
organization‘s objectives are shared with employees from the top to the bottom, employees
should be encouraged to help set their own objectives to achieve these larger organizational
objectives. This gives employees greater motivation since they have greater empowerment.
4. Monitor the progress of employees. In step two, a key component of the objectives was that they
are measurable for employees and managers to determine how well they are met.
5. Evaluate and reward employee progress. This step includes honest feedback on what was
achieved and not achieved for each employee.

Features of management by objectives

1. Superior-subordinate participation
2. Joint goal setting
3. Joint decision on methodology
4. Makes way to attain maximum result
5. Support from superior

Elements of MBO:

1. Agreement
2. Delegation
3. Evaluation of results
4. Associated activities

Douglas McGregor (1906-1964), MIT professor and author of the highly influential book "The Human
Side of Enterprise," was born in Detroit, Michigan in 1906. He contributed much to the development of
management and motivational theory. He is best known for his Theory X and Theory Y, which splits
corporate thinking into two camps. Theory X holds that employees are inherently disinclined to work and
needed to be strictly controlled. Theory Y holds that employees should be trusted and empowered.
McGregor showed—at a time when labor-management relations were becoming more adversarial—that
there was another way to view workers and leadership.

Theory X:
Theory X is based on negative assumptions regarding the typical worker. This management style assumes
that the typical worker has little ambition, avoids responsibility, and is individual-goal oriented. In
general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a
sustainable income. Management believes employees' work is based on their own self-interest. Managers
who believe employees operate in this manner are more likely to use rewards or punishments as
motivation. Due to these assumptions, Theory X concludes the typical workforce operates
more efficiently under a hands-on approach to management. Theory X managers believe all actions
should be traceable to the individual responsible. This allows the individual to receive either a direct
reward or a reprimand, depending on the outcome's positive or negative nature. This managerial style is
more effective when used in a workforce that is not essentially motivated to perform.
According to McGregor, there are two opposing approaches to implementing Theory X: the hard
approach and the soft approach. The hard approach depends on close supervision, intimidation, and
immediate punishment. This approach can potentially yield a hostile, minimally cooperative workforce
and resentment towards management. Managers are always looking for mistakes from employees,
because they do not trust their work. Theory X is a "we versus they" approach, meaning it is the
management versus the employees.
Characteristics of manager using Theory X-
 Focuses on results
 Seeks to work independently
 Provides limited feedback
The soft approach is characterized by leniency and less strict rules in hopes for creating high workplace
morale and cooperative employees. Implementing a system that is too soft could result in an entitled, low-
output workforce. McGregor believes both ends of the spectrum are too extreme for efficient real-world
application. Instead, McGregor feels that an approach located in the middle would be the most effective
implementation of Theory X.
Because managers and supervisors are in almost complete control of the work, this produces a more
systematic and uniform product or work flow. Theory X can benefit a work place that utilizes an
assembly line or manual labor. Using this theory in these types of work conditions allows employees to
specialize in particular work areas which in turn allows the company to mass-produce a higher quantity
and quality of work.

 Workers dislike their jobs and they are inherently lazy.

 Workers have little motivation and prefer direction from their superiors.
 Workers need consistent rewards and punishments to ensure their task is completed.
 Workers do not have a desire to grow or achieve personal or professional goals.

Educators who believe in Theory X would agree with the following statements:

 The instructor is responsible for actively sharing their knowledge with the students.
 Students are not motivated to learn new information.
 Students prefer to have the instructor direct their learning and not take on that responsibility
themselves.
 The instructor must ensure a controlled learning environment to prevent cheating and necessitate
student learning; the students prefer to have the material summarized for them.
 Students find learning inherently challenging and are only expected to have limited success in the
course.

a person refusing to work (―X‖) and

a person cheering the opportunity to work (―Y‖)
Many of these assumptions are based on basic physical needs. Businesses who utilize a Theory X
approach often have multiple levels of management with a low rate of delegation. Workers are often
micromanaged and have very little autonomy in the organization. There is often a central authority base
and managers follow an authoritative leadership style.

Elements of theory X management Managers using theory X often use strict deadlines with detailed
guidance. The personality managers can individually represent theory X tendencies, though these leaders
might not be required to enforce strict conditions.

Theory X is aggressive, decisive and detail-oriented, so it works well in some situations and creates
problems in other circumstances. It's important for businesses to align staff motivation levels to a chosen
management style. Some elements of theory X to consider when selecting a management style include:

 Employee Morale: The amount of morale employees have contributes to the style of leadership
they respond to. If employees find it difficult to motivate themselves or to keep their morale up,
they might respond positively to theory X management.
 Promotions: Theory X aims to incentivize an increase in employees' ambition. If your workplace
values upward mobility, you might choose to implement theory X management.
 Understanding Management: Business communication plays a major role in your efficiency, so
it's critical to keep the relationships between employees and employers healthy. Consider
speaking with employees about their needs before choosing a management style.
 Management style: The ability to recognize weaknesses gives a company a better hold on its
management style. For competitive business environments, theory X is an approach that is
consciously chosen by leaders, so it's imperative that you first undergo self-examination before
making a shift.

Theory Y:
The next part of McGregor‘s theory is Theory Y. Theory Y is based on positive assumptions regarding
the typical worker. Theory Y managers assume employees are internally motivated, enjoy their job, and
work to better themselves without a direct reward in return. These managers view their employees as one
of the most valuable assets to the company, driving the internal workings of the corporation. Employees
additionally tend to take full responsibility for their work and do not need close supervision to create a
quality product. It is important to note, however, that before an employee carries out their task, they must
first obtain the manager's approval. This ensures work stays efficient, productive, and in-line with
company standards.
Theory Y managers gravitate towards relating to the worker on a more personal level, as opposed to a
more conductive and teaching-based relationship. As a result, Theory Y followers may have a better
relationship with their boss, creating a healthier atmosphere in the workplace. In comparison to Theory X,
Theory Y incorporates a pseudo-democratic environment to the workforce. This allows the employee to
design, construct, and publish their work in a timely manner in co-ordinance to their workload and
projects.
Although Theory Y encompasses creativity and discussion, it does have limitations. While there is a more
personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. The
workplace lacks unvarying rules and practices, which could potentially be detrimental to the quality
standards of the product and strict guidelines of a given company.
Managers also have assumptions about their employees in Theory Y:

 Workers are willing to accept challenges and are proud of the work that they do.
 Workers do not need to be micromanaged; they are self-directed.
 Workers are eager to participate in decision-making.
 Workers are happy to contribute and feel internally satisfied.

Educators who believe in Theory Y would have different assumptions:

 Students are naturally predisposed to learn.

 Responsibility for their own learning will be as natural to the students as other responsibilities.
 Students experience self-satisfaction when they learn and this is enough to motivate them to meet
their learning goals.
 It is not necessary to threaten students with lower grades; they are not naturally lazy.
 Traditional classrooms do not enable the potential of almost all students.
 Students have large amounts of creative thinking and innovation that is applied throughout their
learning journey.
These assumptions lead to a better managerial approach and this greater satisfaction in the workplace.
McGregor encouraged organizations to adopt more of a Theory Y leadership style. It is much more
decentralized and requires more participation from the managers, but assumes that workers would also be
committed to the long-term goals of the company. He believed that by following Theory Y, supervisors
could motivate their workers to achieve their highest potential.

Douglas McGregor spent the end of the 1950‘s and the early 1960‘s working on his motivation theory.
Curiously titled Theory X Theory Y, his theory outlines two opposing views on human behavior in the
workplace. Each of the viewpoints addresses a different way of meeting each individual‘s motivational
needs. McGregor believed that a manager‘s assumptions about their employees determined their
leadership style in the workplace.

There are many similarities between Theory X Theory Y and Abraham Maslow‘s Hierarchy of Needs.
Maslow‘s theory uses a pyramid to describe the different types of needs that need to be met. Each level,
or type of human need, can only be achieved if all of the levels below are satisfied, starting with basic
needs at the bottom. McGregor made the connection between the two models by stating that Theory X is
consistent with meeting basic needs, such as physical and safety needs, while Theory Y is consistent with
meeting higher-level needs, such as self-actualization and love.

There is a real risk of failure in the workplace if managers do not understand their worker‘s behavior.
Many workplaces originally utilized Theory X, which believes that employees are lazy and unproductive.
This led them to use rewards and punishment as their primary means to motivate employees. In a strict
environment with little autonomy, workers were indeed unhappy and lacking ambition. McGregor
suggested that organizations would experience greater success if they focused on satisfying interpersonal
needs, which led to the development of Theory Y.

Theory X Theory Y
1. Concept 1. Concept
2. Seeks to work independently 2. Seeks to work collaboratively
3. Doesn‘t ask for feedback 3. Receives feedback constructively
4. Prefers to make most decisions and provides feedback regularly
and provides limited feedback 4. Empowers others to decide
sometimes 5. There exists strong intelligence,
5. There is want of intelligence, creativity and innovation.
creativity and innovative power in 6. It considers employees as
solving organizational problems. important
6. It considers employee as 7. It approvals worker‘s
instruments participation.
7. Managers are supreme to do like, 8. It follows modern approaches to
have no chance to express and ensure real development.
accept another‘s opinion. 9. Motivation plays active role in
8. It always follows analogous every aspect except biological
methods, limited chance to the and security needs.
development. 10. No necessity to apply extra
9. Motivation is directed to fulfill pressure. It starts its journey with
biological and security needs responsible workers.
10. Indifferent to work is inherent to 11. It ensures a favorable atmosphere.
every person and has to
accomplish works with strong
controlling.
11. It doesn‘t ensure suitable
environment to work and
workers.

Managerial Grid

Robert R. Blake and Jane S. Mouton developed the Managerial Grid Model Developed in the 1960s and it
has evolved in the following decades. Blake and Mouton‘s Managerial Grid Model was one of the most
influential management models in the 1960s; it also provided a foundation for even more complex
contingency approaches to leadership.

Notable amongst these studies are Fiedler‘s Contingency model (which considers the match between the
manager‘s personality and the situation) and Tannenbaum and Schmidt‘s Continuum of Leader Behavior
(which stresses that the leader understands not only himself but also the other persons in the organization
along with the social environment as well. The Managerial Grid Model was the next logical step in
evaluating management thinking.

Blake and Jane Mouton based the framework of Grid on the sound logic of noted theorists Abraham
Maslow and Douglas McGregor. The Grid expanded upon McGregor‘s and others‘ theories at the time to
provide a richer and more complete design between the manager‘s concerns for production versus their
concern for interpersonal relationships. Although later criticized and subjected to further revision by its
creators, the original Managerial Grid Model remains an important model of managerial behavior that
continues to be studied and utilized.

The managerial Grid Model of Leadership indicates five basic leadership styles of practicing managers
representing various combinations. The Managerial Grid Model helps Managers to analyze their
leadership styles through a technique known as grid training.

The Managerial Grid is a behavioral management style model by Blake and Mouton ('64) categorizing
management or leadership styles into a 9x9 grid.
The axes of the grid are:
- X-axis: Concern for Production: 1 (low) to 9 (high)
- Y-axis: Concern for People: 1 (low) to 9 (high)
The extremes are:
(1,1): Impoverished style - delegate-and-disappear
(9,1): Produce or Perish style - authoritarian
(1,9): Country Club style - one-sided, thoughtful attention to the needs of employees
(9,9): Team style - high concern to both people and production
(5,5): Middle-of-the-road style - balancing between people and organization

Blake and Mouton strongly argue that style (9,9) is the most effective management style because it
improves productivity and causes high employee satisfaction, low turnover, and absenteeism. It is widely
used as a technique of managerial training and for identifying various combinations of leadership styles.

The managerial Grid Model is based on two behavioral dimensions; concern for people and concern for
production. Concern For People which is the degree to which a leader considers the needs of team
members, their interests, and areas of personal development when deciding how best to accomplish a task.
And Concern For Production which is the degree to which a leader emphasizes concrete objectives,
organizational efficiency, and high productivity when deciding how best to accomplish a task.

Five Leadership Styles in Managerial Grid

They identified 5 basic leadership styles of practicing managers representing various

combinations of the two dimensions above, as shown in the following figure;
As shown in the figure, the model is represented as a grid with concern for production as the X-
axis and concern for people as the Y-axis; each axis ranges from 1 (Low) to 9 (high).

The five resulting leadership styles are as follows:

1. How Managerial Grid Model Developed?

2. (1,9) Country Club Style Leadership High People and Low Production
3. (9,1) Produce or Perish Leadership- High Production and Low People
4. (1,1) Impoverished Leadership-Low Production and Low People:
5. (5,5) Middle-Of-The-Road Leadership-Medium Production and Medium People
6. (9,9) Team Leadership-High Production and High People

(1,9) Country Club Style Leadership High People and Low Production
(1,9) Country Club Style Leadership style leader is most concerned about the needs and
feelings of his or her team members.

In this environment, the relationship-oriented manager has a high concern for people but a low
concern for production. He pays much attention to the security and comfort of the employees. He
hopes that this will increase performance. He is almost incapable of employing the more
punitive, coercive, and legitimate powers. The organization will end up to be a friendly
atmosphere but not necessarily very productive.

The (1,9) boss mainly uses reward power to preserve discipline and to support his
subordinates in accomplishing their goals.

Conversely, this manager cannot employ more disciplinary coercive and legitimate powers. This
inability results from his fear that using such powers could jeopardize his relationships. This
inability results from his fear that using such powers could jeopardize his relationships. Thus, the
supervisor seldom attempts to impose his will on others, preferring to accept the ideas of others
instead of forcing his own. Employees in this type of work environment go about their day
working at their own pace on projects they enjoy and with coworkers to whom they are attracted.

(9,1) Produce or Perish Leadership- High Production and Low People

(9,1) Produce or Perish Leadership management style is characterized by a concern for

production as the only goal. Employees are viewed as obstacles to performance results unless
obedience to the manager‘s wishes is explicitly granted. In this style, the manager is authoritarian
or compliant. A task-oriented manager, he has a high concern for production and a low concern
for people. He finds employee needs unimportant and simply a means to an end. He provides his
employees with money and expects performance back. There is little or no allowance for
cooperation or collaboration. He pressures his employees through rules and punishments to
achieve the company‘s goals. This type of leader is very autocratic, has strict work rules, policies
and procedures, and views punishment as the most effective means to motivate employees.

(1,1) Impoverished Leadership-Low Production and Low People:

(1,1) Impoverished Leadership is a delegate-and-disappear management style and a lazy

approach. The manager shows a low concern for both people and production. He or she avoids
getting into trouble. His main concern is not to be held responsible for any mistakes. Managers
use this style to preserve jobs and seniority, protecting themselves by avoiding getting into
trouble. This leader is mostly ineffective. He or she has neither a high regard for creating systems
for getting the job done nor for creating a work environment that is satisfying and motivating.
The result is a place of disorganization, dissatisfaction, and disharmony.
(5,5) Middle-Of-The-Road Leadership-Medium Production and Medium People

(5,5) Middle-Of-The-Road Leadership is a kind of realistic medium without ambition. It is a

balanced and compromised style. The manager tries to balance the company‘s competing goals
and the workers‘ needs. The manager gives some concern to both people and production, hoping
to achieve acceptable performance. He believes this is the most anyone can do. Consequently,
compromises occur where neither the production nor the people‘s needs are fully met. The
supervisor views it as the most practical management technique. It is also an outcome when
production and people issues are seen as a conflict. The defining characteristic of this style ―is
not to seek the best position for both production and people… but to find the position between
both, about halfway.‖

When dealing with subordinates, the (5,5) manager prefers relaxed and shared conversations,
allowing him to slay popularly. Group membership is also enjoyed as committees allow‘ the
supervisor to spread the responsibility for decision-making.

(9,9) Team Leadership-High Production and High People

In (9,9) Team Leadership, the manager pays high concern to people and production. Motivation
is high. This soft style is based on the propositions of Theory Y by Douglas McGregor. The
manager encourages teamwork and commitment among employees. This style emphasizes
making employees feel part of the company family and involving them in understanding the
organizational purpose and determining production needs. This method relies heavily on making
employees feel they are constructive parts of the company. And this will result in a team
environment based on trust and respect, which leads to high satisfaction and motivation and, as a
result, high production.

In a (9,9) system, the manager strives for sound and imaginative opinions, letting others partake
in the decision-making process. He is not afraid to use ideas that are divergent from his own but
rather focuses on the value of the ideas.

Emotions and thoughts are used to solve .problems through teamwork because this supervisor is
concerned with arriving only at the best possible solutions.

A (9,9)-oriented manager can act sensibly to bring about effective results, maintaining
consistency but finding innovative solutions to fit unique problems and unusual
circumstances”.

Another of the manager‘s primary goals in this system is to identify barriers that his subordinates
may be encountering and then find a way to remove them. This creates a team environment
based on trust and respect, which leads to high satisfaction and motivation and, as a result, high
production.

Advantages of the Managerial Grid Model

 Managers help to analyze their leadership styles through a technique known as grid
training.
 Managers identify how for their concerned about production and people.

 The Managerial Grid provides a quick and concrete overview of leadership styles and

behaviors thanks to its graphical approach

 The leadership styles of the Grid theory are self-explanatory with obvious outcomes

 It shows that a leader can display several types of behaviors at the same time, a novelty

back in its inception days

 A large number of management styles gives the theory a wider variation and more robust

connection to reality

Limitations of the Managerial Grid Model

 The model ignores the importance of internal and external limits, matter, and scenarios.
 Some more aspects of leadership can be covered but are not.

 Blake and Mouton‘s Managerial Grid is behavioral and does not include situational

aspects.

 It does not suggest that leaders can and should switch between the different styles

 Grid theory does not take team development into account, making different styles useful

at various stages of team maturity

Project monitoring:
Project monitoring is the process of tracking and reviewing the project progress and performance
involving creating a plan, setting goals and expectations, deciding how to monitor project
activities and outputs and evaluating reports and making necessary improvements. Project
monitoring refers to surveillance and tracking of the project to ensure that all the tasks are
completed on time. It includes steps to figure out the hurdles or gaps and resolve them to
increase the efficiency of the project. It is also known as project monitoring and control. As
soon as a project starts, so does the project monitoring.
Concept of project monitoring:

According to P.K Ghosh er. al. (ed) in their Encyclopeadia Dictionary of management,
‘‘In a control system, monitoring is the process of transmission of information about the
controlled condition along a separate path provided for the purpose, comparison of the
information about the desired state of the controlled condition and production of information
about differences between actual and desired states.’’

According to M. Sirajuddin, ‗‘ Project monitoring is the periodic review of activity status to

forecast achievement of events. ‗‘

According to Asian Development Bank in ‘Handbook on Management of Project

Implementation’, ‘‘Project monitoring implies reviewing inspection and controlling what is
being accomplished during project implementation.‖

According to B. B Goel, ‗‘Project monitoring involves watching the progress against time,
resources and performance schedules during the execution of the project and identifying
lagging areas requiring timely attention and action.‘‘

Characteristics of project monitoring:

1. Managerial activity
2. Dynamic process
3. Strategy for collecting information
4. Raising awareness
5. Scientific method
6. Constructive criticism
7. Limited identification
8. Abridge between expectation and achievement

Administer Procurements
This activity ensures to monitor the vendor to make sure that their performance satisfied the
requirements of the contract. Moreover, this activity is used to make the required corrections and
changes and to manage procurement relationships. The project manager evaluates the sales
deliverables using procurement performance measurement. Administering of procurements is
accomplished through different techniques including contract change control system. Besides,
the project manager refers to the contract, procurement documents, and performance information
during the administer procurements activity.

Control Quality
The aim of this activity is to assess and make a determination on whether the activities are
meeting the quality standards that have been established. In doing so, the project manager makes
sure that various project operations and processes are implemented within the scope of project
planning. To accomplish this activity, the project manager relies on the quality management plan
to identify the standards that have been established. These quality standards should be conformed
as well as achieved to ensure project success. The project manager needs to be keen to
understanding customer expectations and making sure that they are satisfied by the end product.
The project manager refers to the Quality Management Plan to complete this activity
successfully.

Control Costs
This activity is concerned with the supervision and management of project expenses. At this
phase, the project manager needs to prepare for financial risks that might occur. During this
activity, the expenses that are needed at various payment stages are identified and controlled.
Besides, the project manager makes sure to manage the project budget. This is vital in order to
ensure the appropriate use of finances and prevent shortfalls. Besides, spending money on
unplanned events is controlled to prevent using money that is allocated to other uses. A Cost
Forecast document is prepared during this activity.

Control Schedule
This activity seeks to monitor the status of different activities involved in a project. The activity
also concerns making necessary updates to the project process and managing changes made to
the schedule. By making comparisons between the scheduled baseline and project progress, a
project manager determines whether certain project activities are behind or ahead of the
schedule. Following this, correction actions are planned to ensure effective management of
changes to the planned schedule. This activity eliminates the risk of late delivery of a project.

Control Risks
In all projects, risks are always present a project manager should have the ability to mitigate
those risks proactively and envision potential risks as well. Effective methods for controlling
risks required in project management. Control risks activity concerns implementing risk response
plans. It involves monitoring residual risks, identifying new risks, tracking identified risks, and
assessing the effectiveness of risk mitigation processes used during the project.

The risk manager goes through the risk management plan to familiarize himself with the
identified risks. This helps to come up with appropriate and effective risk response strategies. A
key advantage of the control risk activity is that it enhances stakeholders‘ efficiency to manage
risks during the project lifecycle. Besides, this activity motivates stakeholders to elevate their
risk responses. The Risk Management Plan is consulted in this activity.

Implement Risk Mitigation Plan

This activity aims to actualize the measure outlined in the risk management plan. This includes
exploring available opportunities, restructuring the workforce, using the latest technology, and
developing risk barriers. During this activity, the project team assesses the likelihood of
unexpected happenings that can harm a project.

This is followed by identifying the most appropriate method for avoiding those events.
Moreover, the project team goes ahead to implement planned actions that are aimed at reducing
the effects of threats that are unavoidable. Collaboration with relevant agencies and companies is
also initiated to share responsibilities regarding extremely risky activities. The Risk Response
Strategy is referenced to undertake this activity effectively.

Perform Integrated Change Control

This activity focuses on measuring change impact on project limitations. Changes relating to
different parts of a project can be requested particularly during the execution as well as
monitoring and control phases. There is no need to implement all requested changes. Thus, this
activity is performed to accept or reject changes based on an effective evaluation of their
impacts.

All change or modification requests to baselines, deliverables, project documents, or project

management plan are reviewed and either accepted or rejected based on their impact on the
project. A key benefit of performing integrated change control is that it permits the consideration
of documented changes in an integrated approach while minimizing project risks.

These risks usually arise from changes that are implemented without careful consideration of
their impact on the entire project. A Change Requests document is prepared in this activity. This
document is forwarded to the project sponsor for review and approval.

Implement Change Requests

This activity aims to incorporate into the project scope the change requests that have been
approved. A project may fail to deliver the desired outcome if approved changes are not
integrated into the project scope. The project team performs tasks and activities that will
actualize the approved changes. Feedback on changes that have been done is provided. This is
followed by an assessment of whether implemented changes were sufficient.

Designing your project monitoring plan

That‘s right, yet more planning. When first laying out their project, project managers spend some
time determining how they‘re going to monitor it. What are the metrics they‘re going to track?
How frequently will they check in on progress? Where will all this information live?

Picking a reporting mechanism

When they‘ve figured out what they‘re going to monitor, project managers then
establish how they‘re going to do it. For some projects, a simple word document breaking down
the most recent updates might be enough. For others, this might involve business intelligence
platforms and automations.
Project baseline confirmation

Before you actually get started with any active monitoring, the PM will want to understand the
project‘s scope, budget, and timeline. This helps provide a benchmark for success throughout the
completion of the project.

Work monitoring and control

This involves keeping stakeholders up to date as well as regularly assessing the status of the
project, the quality of the deliverables, and measuring these against baseline goals and metrics.

Change control integration

As you know by now, even the most organized projects can require changes now and then. You
must be keeping track of resource considerations (budget, timeline, etc.) throughout the
monitoring process. Ensure you‘re creating and recording ongoing documentation and any
required follow-ups regarding project changes.

Scope verification

Before you started working on your project, you likely defined its scope; how much work you
planned to get done. In order to keep a record and ensure stakeholders and your team are on the
same page, it‘s important to secure documentation related to each phase of the project‘s
completion. This shows that the project is accepted at each stage of execution.

Schedule and cost control

This is where schedules and costs are monitored closely. When you think of project monitoring,
this is most likely what you think of first. Deadlines are tracked and followed up on if necessary,
and budgets are consistently watched. Updates to cost and timeline estimates are made here.

Quality control

A project can be done on-time and on-budget, but if it‘s not what the stakeholder wants or the
quality of the work is poor, it‘s of little value to anyone. Quality control is an essential part of the
project monitoring process. This is where specific project results and deliverables are looked at
in comparison to established quality standards. If issues are found, changes are requested and
made.

Recommendations for improvement

Project managers don‘t just watch the project go along and report on its progress. They‘re also
expected to make recommendations when problems arise. That can mean helping find creative
solutions when resources are being burned through too quickly, for example.
Performance reporting

This is like a report card for the project. Performance reporting consists of collecting and sharing
any data related to project performance in relation to baseline goals and standards. Here you‘ll
create and find status reports, progress notes, and future forecasts (using collected data).

Tools of project monitoring:

1. Network diagrams: These are considered to be very important tools in project management and
can be very useful in monitoring the project. They are also called ―arrow‖ diagrams, since
multiple arrows are used to demonstrate precedence or interdependence between various project
activities.
2. Key performance indicators (KPIs): These are metrics that help you measure how well your
project is performing against its goals and objectives. KPIs can be used to track progress,
identify challenges, and assess the implementation of a program or project.
3. Dashboards: These are visual representations of data that can be used to monitor the progress of
a project. Dashboards can provide real-time information on key metrics such as budget, schedule,
and resource utilization.
4. Checklists: These are lists of tasks that need to be completed in order to achieve a specific goal
or objective. Checklists can be used to ensure that all necessary tasks have been completed and
that nothing has been overlooked.
5. Monitoring plans: These are detailed plans that outline how project monitoring will be
conducted. Monitoring plans can include information.
6. Encourage effective communication: Trying to determine a project‘s status without
proper communication methods is a challenge. All of your team members and stakeholders need
to understand the procedures, goals, and expectations prior to the project starting — and how to
communicate these to you. Whether it‘s through marking a task complete or participating in
weekly check-ins, it‘s always a good idea to have a communications plan in place throughout
your projects.
7. Conduct a retrospective: Not only does a postmortem post let your team members air any
grievances, but it provides you with valuable information you can use to fine-tune future
projects. Once the project is complete, take time to schedule an hour or so to run through the
project.

This is where you‘ll reflect on any issues that arose, any deadlines that were missed, or anything
else worth mentioning that came up as you monitored the project.

Purpose of monitoring:

1. Monitoring the participatory process provides information for measuring progress

at three levels

a) Applying the process

b) Achieving results
c) Sustaining the process
2. A monitoring approach which is partipatory serves the following purposes

Advantages:

Some other key benefits of the project monitoring phase include:

 Ensuring that tasks are being carried out according to project requirements (quality control)
 Letting the PM make sure important deadlines are met
 Providing a thorough perspective on employee workload and capacity
 Allowing for project changes or remedies in case of problems
 Offering clear budget tracking and adherence
 Encouraging accountability from both team members and stakeholders

Importance of project monitoring

1. Project implementation
2. Removing weakness regarding budget
3. Identification of limitations
4. Utilization of resources
5. Balanced progress
6. Information collection
7. Coordination
8. Utilization of time
9. Job satisfaction
10. Justify from all aspects

Types of Project Monitoring

Here are different types of project monitoring:

1. Process monitoring

It is also known as activity monitoring. On the other hand, process monitoring mainly aims to
track the resources and inputs while understanding how outputs and results are delivered.

2. Beneficiary monitoring

The primary purpose of this is to track the beneficiaries related to the project. This may also
include their complaints and satisfaction related to this project. They can be either direct or
indirect.
3. Compliance monitoring

It is used to check if the project complies with the grants, local laws, contracts, ethical
standards, and overall compliance with the project.

4. Financial monitoring

It is used to track the financial efficiency of the project. In addition, it helps in analyzing the
expenditure of the allocated budget.

5. Result monitoring

It helps determine whether the project is on the right path to achieving the expected result. It
also helps collect data regarding the project's overall impact and effects.

 Internal monitoring

 External monitoring

a) Short term monitoring(per six months)

b) Long term monitoring(after 2 years)

Again,

 Formal monitoring and

 Informal monitoring

Techniques of project monitoring:

We can use many techniques for project monitoring. Some of them are-

1. Work Breakdown Structures

It is a way through which the work can be arranged into smaller pieces. It includes a visual
representation of all the tasks of the project. You can use it to break down more than just the tasks but
also budgets.
2. Gantt Chart

It is another way to represent the data visually. However, it provides more application to a project
head. Combining the Gantt chart tool makes the whole technique easier. You can schedule multiple
projects with Gantt charts. With Gantt charts, the project head can assign tasks to individuals and
allow notifications to be sent to them and keep them on track.

3. PERT

It stands for Program Evaluation and Review Technique. This tool helps with time estimates.
Maintaining a schedule is critical. It breaks the tasks into activities, and you can make a map of the
activities.

4. Critical Path Method (CPM)

Here, CPM requires you to create a model that contains all the tasks, the time allotted to complete
them, and what are the milestones for the project. Using the information, you can figure out what tasks
can start the earliest and can be completed without impacting the project's overall schedule.

Project Status Report:

It supervises overall condition of schedule, budget and possible obstacles comprehensively but shortly. R.
A. Howell pointed out three major colors like-green, yellow, red. With this three colors, it is identified the
emergency situation of any project status.

Project Schedule Chart:

It is the primarily used technique of project monitoring. There is maintained a tight schedule which is
strictly followed. It prioritizes tasks and makes a chart called ‗A Board of Milestone Chart‘

Project Financial Status:

Project Evaluation:

Project evaluation is a strategy used to determine the success and impact of projects, programs, or
policies. It requires the evaluator to gather important information to analyze the process and outcome of a
certain project. Project evaluation prompts changes in internal workflow, detects patterns in the target
audience of the project, plans for upcoming projects or reports the value of projects to external
stakeholders.
Concept of project evaluation: The English word ‗Evaluate‘ comes from ‗to set the value of or appraise‘
or and ‗Evaluation‘ has been derived from ‗Valuere‘ which means the value of a particular thing idea or
action.

What are the principles of project evaluation?

There are several principles of project evaluation that ensure evaluations are credible and
contribute to the overall success of the organization. These principles provide a foundation that
guides the evaluation process from start to finish. Project evaluation principles include:

 Seek to improve performance: Your team learns new methods from each evaluation
which can contribute to the continual improvement of your practices.
 Contribute to organizational learning: Creating a habit of feedback may foster
constant learning and organizational growth.
 Share project participation: Distributing the results of the project evaluation to
stakeholders increases the level of participation from others outside your team, which
communicates transparency and reliability.
 Focus on results: Practicing regular evaluations may help to direct your projects
towards achievable results.
 Build relationships with stakeholders: Involving stakeholders in each process of
project evaluations can deepen their trust in you and your team's abilities.
 Use credible processes: When conducting a project evaluation, it is important to use
verifiable and reliable processes, practices and strategies.
 Conduct evaluations ethically: Selecting and implementing a style of project
evaluation requires careful attention to ethics for the sake of your employees and the
sensitivity of the project.
 Evaluate continually: Building an organizational habit of evaluation serves to equip and
improve teams and project outcomes.

Purpose of project evaluation:

According to M. Sirajuddin, ‗‘The purpose of project evaluation is to determine the effects of actions
and to provide information as to why these effects are occurred.‘‘

1. Identify the earlier

2. Clarify performance
3. Improve project performance
4. Evaluate the quality of project
5. Reduce cost
6. Risk identification
7. Increasing professional experience
8. Remedial measure
9. To increase knowledge
10. Justify the advancement
Types of project:

According to B. B. Goel in his ‗Project management principles and techniques‘ classifies project
evaluation (i) On the basis of influence of project evaluation and (ii) On the basis of objectives

Generally, evaluation is divided into three types.

Types of project evaluation

The following are common types of project evaluation to implement in your projects:

Pre-project evaluation

Before beginning a project, your team could evaluate whether it is feasible to complete
successfully. This often takes place naturally in the developmental stage of projects and is
crucial for the effective execution of the project. It is important that all involved are aware of the
objectives and goals before work begins.

Ongoing evaluation

Throughout the life cycle of the project, you may use metrics to verify completed tasks. This
includes budget, percentage of completed tasks and the overall quality of the work delivered so
far. Try to remain focused on your original objectives and goals as the project is underway, so
your team remains on track.

Post-project evaluation

After the project is complete, it is important to analyze the outcomes and impacts of the project.
Outcomes help measure how effective the project was in meeting the objectives and goals set
at the beginning. Impacts may determine how successful the project was in creating a tangible
change for the target audience.

Self-evaluation

At any point in the life cycle of the project, an individual can conduct a self-evaluation. Self-
evaluation analyzes if their work is contributing to greater objectives and goals. Recognizing
strengths and weaknesses, measuring their successes, and determining the scope of their
impact can increase their ability to work effectively as part of the team.

External evaluation

Another option is hiring external agencies to perform evaluations for your projects. These
agencies typically have no prior connection or involvement in the project, leading to a high level
of impartiality when conducting the evaluation and concluding. External evaluation is valuable
for projects that include a large number of stakeholders or have several moving pieces.
Principles of project evaluation:
2. Honesty and impartiality
3. Democratic values
4. Avoiding prejudice
5. Considering time and resource
6. Considering as educational and continuous process
7. Importance on internal evaluation
8. Evaluation is a participatory process
9. Comprehensive evaluation

Better project management: Project evaluation helps to find areas of improvement easily when it comes
to managing costs, tasks, resources and time

Improves team performance: Project evaluation allows to keep track of team‘s performance and
increases accountability.

Better project planning: It helps us to compare project baseline against actual project performance to
better planning and estimating.

Stakeholder management: Good relation with stakeholder is first and foremost to be successful as a
project manager

Project Appraisal
Project appraisal is the process of assessing, in a structured way, the case for proceeding with a project
or proposal, or the project's viability. It often involves comparing various options, using economic
appraisal or some other decision analysis technique. The entire project should be objectively appraised for
the same feasibility study should be taken in its principal dimensions, technical, economic, financial,
social and so far to establish the justification of the project or project appraisal is the process of judging
whether the project is profitable or not to client or it is a process of detailed examination of several
aspects of a given project before recommending of some project

It involves calculating the feasibility of the project before committing resources to it. It is a tool that
company‘s use for choosing the best project that would help them to attain their goal. Project appraisal
often involves making comparison between various options and this done by making use of any decision
technique or economic appraisal technique.
Project appraisal is a tool which is also used by companies to review the projects completed by it. This is
done to know the effect of each project on the company. This means that the project appraisal is done to
know, how much the company has invested on the project and in return how much it is gaining from it.

According to M. A. Khandakar in his ‘some aspects of project appraisal’, ‗‘Project appraisal in

simple terms , means pre investment analysis of as investment project with a view to detecting its
economic and technical feasibility, financial and managerial soundness and measuring its investment
worth. More specifically, the appraisal exercise seeks to answer the questions about various aspects of an
investment project.‘‘

According to B. B. Goel in his ‘Project management-Principles and Techniques’, Project appraisal is

a tool to examine as to whether in the given situation, it would be the most realistic, reliable and
reasonable one to commit resources or not. The technical, economic, financial, commercial,
organizational, managerial, social, environmental and aspects of the project by raising various pertinent
questions. If it fulfills its major needs or contributes to national goals and is also particularly desirable. It
may be selected for implementation over a competing project which is not politically important.‘‘

Characteristics of Project appraisal:

1. Pre-investment analysis
2. Research
3. Decision making process
4. Feasibility analysis
5. Risk assessment
6. Implementation
7. To appraise the effect of a project
8. Rules based process
9. Risky level of project
10. To justify the social acceptance.

Steps of Project Appraisal

Project appraisal is the process of assessing the feasibility, viability, and potential impact of a proposed
project. It involves a systematic analysis of various aspects of the project, such as its objectives, scope,
benefits, costs, risks, and potential outcomes. The following are the steps involved in project appraisal:
1. Project identification: This involves identifying and defining the project, including its objectives,
scope, and key stakeholders.
2. Project screening: This step involves assessing the project's alignment with the organization's
strategic goals, resource availability, and overall feasibility.
3. Project scoping: This step involves defining the project's boundaries, deliverables, timelines, and
resource requirements.
4. Market and demand analysis: This step involves analyzing the market and demand for the project's
output or services, including potential customers, competitors, and market trends.
5. Technical analysis: This step involves assessing the project's technical feasibility, including the
availability of technology, expertise, and other resources required for the project.
6. Financial analysis: This step involves assessing the project's financial viability, including the costs,
revenues, profits, and cash flows associated with the project.
7. Economic analysis: This step involves assessing the project's economic impact, including its
contribution to economic growth, employment, and social welfare.
8. Risk analysis: This step involves assessing the project's risks, including its vulnerability to external
factors, such as market fluctuations, natural disasters, and political instability.
9. Environmental and social impact analysis: This step involves assessing the project's potential impact
on the environment and society, including the potential risks and benefits associated with the
project.
10. Project appraisal report: This step involves compiling all the information gathered from the above
steps and presenting it in a comprehensive project appraisal report. The report should provide a clear
recommendation on whether the project should be approved, modified, or rejected.
The process of project appraisal consists of five steps and they are – initial assessment, defining problem
and long-list, consulting and short-list, developing options, and comparing and selecting project. The
process of appraisal generally starts from the initial phase of the project. If the appraisal process starts
from an early stage, then the company will be in a better position to decide how capital should be spend in
the project and also it will help them to make the decision of not spending too much or stopping a project
that is not economically viable.

Types of Project Appraisal

Experts carry out project appraisals
Project appraisal involves a wide range of specialists from different fields, depending on the nature,
scope, and complexity of the project. The following are some of the specialists who may be involved in
project appraisal:
 Project manager: The project manager is responsible for overseeing the entire project appraisal
process, including the coordination of all the specialists involved.
 Financial analyst: A financial analyst assesses the financial viability of the project, including the
cost-benefit analysis, cash flow projections, and other financial metrics.
 Economist: An economist assesses the economic impact of the project, including its contribution to
economic growth, employment, and social welfare.
 Market analyst: A market analyst assesses the demand and supply factors related to the project,
including market trends, customer preferences, and competition.
 Technical specialist: A technical specialist assesses the technical feasibility of the project, including
the availability of technology, expertise, and other resources required for the project.
 Environmental specialist: An environmental specialist assesses the potential environmental impact
of the project, including its impact on air, water, and land.
 Social specialist: A social specialist assesses the potential social impact of the project, including its
impact on the community, culture, and social norms.
 Legal specialist: A legal specialist assesses the legal aspects of the project, including compliance
with laws and regulations, contractual agreements, and liability issues.
 Risk analyst: A risk analyst assesses the potential risks associated with the project, including market
risks, operational risks, financial risks, and other types of risks.
The specific specialists involved in project appraisal may vary depending on the type and scale of the
project, as well as the organization's policies and procedures.
Software Used for Projects Appraisal
There are several software tools that can be used for project appraisal, including:
1. Microsoft Excel: This is a spreadsheet software that can be used for financial analysis, cost-benefit
analysis, and other types of quantitative analysis.
2. Project management software: There are several project management software tools available in
the market, such as Microsoft Project, Primavera P6, and JIRA. These tools can be used for project
scoping, scheduling, resource allocation, and other project management activities.
3. Decision-making software: There are several decision-making software tools available, such as
Decision Tools Suite, Expert Choice, and Analytica. These tools can be used for cost-benefit
analysis, risk analysis, and other types of decision-making analysis.
4. Mind mapping software: There are several mind mapping software tools available, such as Mind
Manager, XMind, and Free Mind. These tools can be used for brainstorming, SWOT analysis, and
other types of visual analysis.
5. Environmental and social impact assessment software: There are several environmental and
social impact assessment software tools available, such as ESRI Arc GIS, IMPACT, and Open LCA.
These tools can be used for environmental and social impact analysis, including the analysis of land
use, water use, energy consumption, and carbon footprint.
Depending on the organization's rules and processes, as well as the project's type, scale, and complexity,
the specific software tools utilized for project assessment may change.