Introduction

(Principles of Project Management - BQB 7004)

Dr. Ali Mohammed Alashwal

Department of Quantity Surveying
Faculty of Built Environment
University of Malaya
Email: alialashwal@um.edu.my

About this Subject

Synopsis
O BQB 7004 contains the fundamentals of the

project, the project management process, project

planning and project execution and closure. These
include the establishment of the project
organization, the establishment of effective
leadership, team preparation, settlement issues,
effective implementation (performance
measurement, monitoring and control,
coordination, record, report status,
communication, conflict management), and the
closure of the project (measurement of project
success, closure contracts, data transfer, learning,
and administrative closure)
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Learning outcome
O Explain the concept and principles of project

management.
O Analyse effective project management methodology
towards a successful and effective projects.
O Apply effective project plan, monitoring and controlling
the project delivery (including implementation and
closure).
O
O
O
O

Communication skills
Critical thinking
Team work
Lifelong learning
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Learning method
O Lecture notes and books
O Coursework(s)

O Discussions
O Share your knowledge (SYK)

Assessment method
O Continuous Assessment: 60%
Assignments (2,500words)
Individual Assignment 1 = 5
Individual Assignment 2 = 15
Group Assignment 1 = 10
Group Assignment 2 = 10

Test = 20

O Final Examination: 40%

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Main references
O
O
O
O
O
O
O

Larson, E. W and Gray, C. F. (2014). Project management: The managerial

process (6th edition), McGraw-Hill, Irwin.
Kerzner, H. R. (2013). Project management: A systems approach to
planning, scheduling, and controlling. John Wiley & Sons.
Cleland, D. I., & Ireland, L. R. (2006). Project management: Strategic
design and implementation (5th edition). New York: McGraw-Hill.
Morris, P.W.G, Pinto, J.K. and Soderlund, J. (2011). The Oxford handbook of
project management. Oxford: Oxford University Press.
Meredith, J.R. and. Mantel, S.J. (2012). Project management: A
managerial approach (8th edition), John Wiley & Sons
Rosenau, M. D., and Githens, G. D. (2011). Successful project
management: a step-by-step approach with practical examples. Wiley.
Westland, J. (2007). The project management life cycle: A complete stepby-step methodology for initiating, planning, executing & closing a project
successfully. Kogan Page Publishers.

Tentative teaching schedule

Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Lecture
Introduction: project criteria, life cycle, and project management process
Strategic context of projects and project planning
Project organization management
Management of time and stress of project managers
Team building for project management
Change and conflict management in projects
Project monitoring and control
Project monitoring and control
Test
Negotiating and contracting for project management
Knowledge management and learning in projects
Project success
Project closeout and termination
Project closeout and termination
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What is the best thing to start

this semester?
O Are you ready for the first assignment !

1.
2.
3.

Go to http://spectrum.um.edu.my/
Log in using your username
Choose a good profile photo

This is the first assignment (5 marks)

10

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Todays lecture
O Project definition
O Project management definition

O Project management processes

O Concepts of project and project management
O Project organization forms

O History of project management

O Project organization

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What is a project?
O Temporary endeavor undertaken to create a unique

product, service, or result.

O a cluster of activities that is relatively separate and
clear cut.

13

The need for projects

O Communitys needs
O Endless problems facing organizations
O The U.S. spends $2.3 trillion on projects every year

and the world spends nearly $10 trillion of on

projects of all kinds ( of gross domestic product)

Source:
Capital project and
infrastructure spending:
Outlook to 2025

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How projects differ from other

tasks
Change

Strategic plans

Contractual agreements

Solution to specified problems

15

Project criteria
1.
2.

3.
4.
5.
6.

Uniqueness
Temporary
Unique outcome
Lasting outcome
Impact (social, economic, and
environmental)
All organizational levels

16

Project outcome
O Fulfill top management goal and objectives

(i.e. organizational stratgies)

O e.g. revenue generation

O Outcomes include (tangible or intangible):

O New product (building or automobile)
O New service (air transportation)
O New process (manufacturing)
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In 15 Days!

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Definition of project
management
O Application of tools

and techniques to
direct the use of
resources to
accomplish a task
O Assign the necessary
resources to a
carefully selected
individual
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Need for project management

O Compression of project life cycle
O Customer expectations
O New project development
O Projects complexity and variety
O Continuous development
O Knowledge explosion
O Competitiveness

20

Importance of project
management
O Provide alternatives and avenue so specialized

information can be used to make a decision

(uncertainties)
O Reduce disruption of routine business
activities in organizations
O Efficiency and effectiveness
O Knowledge explosion

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Contd
700000
600000
500000
400000
300000
200000
100000
0
1989

2004
PMI

Project management institute (PMI)

Project management professional (PMP)

2014

PMP
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How to manage a project?

Identify requirements
II. Address needs, concerns, and expectations
III. Manage communications
IV. Manage stakeholders to meet project
objectives
V. Balance project constraints
I.

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Project management process

Initiating

Planning

Executing

Monitoring
&
Controlling

Closing

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1. Project Initiation
O Selection of the best project given resource

limits
O Recognizing the benefits of the project
O Preparation of the documents to get the
project approval
O Assigning of the project manager

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2. Project Planning
O Definition of the work requirements
O Definition of the quality and quantity of work

O Definition of the resources needed

O Scheduling the activities
O Evaluation of the various risks

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3. Project Execution
O Team members negotiating
O Directing and managing the work

O Working with the team members to help

them improve

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4. Project Monitoring and

Control
O Tracking progress
O Comparing actual outcome to predicted

outcome
O Analyzing variances and impacts
O Making adjustments

28

5. Project Closure
O Verifying that all of the work has been

accomplished
O Contractual closure of the contract
O Financial closure
O Administrative closure

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Some history of project

management

Egyptian Pyramids

China Great Wall

30

Project management of
Florence Duomo project
O
O
O
O

Project constraints
Project execution
Transferring best practice
The project manager,
Brunelleschi

Florence Cathedral

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Source: Kozak-Holland and Procter
(2014)

The modern project

management
O Formal project management emerged during 1950s
O Military and construction projects
O In 1959 Paul Gaddis wrote an article titled The

Project Manager on roles, prerequisites, and type

of training

Hoover dam

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Manhattan project

Project Organizations

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Departmentalization
O Problem within organization

Forms:
Functional , Product, Customer,
Territorial, & Process

(e.g. cost accumulation of tax,

inventory, sale and
marketing) created the need
for specialized areas
O Department Orderly
arrangement of the
interdependent parts by
dividing an organization into
subunits
O To improve efficiency and to
decentralize authority and
responsibility
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Project environment
1) Advanced technology
2) Professional personnel

3) High levels of uncertainty and change

O These conditions lead to the need for high

differentiation / integration organizations

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Differentiation vs. Integration

O Differentiation: separation of

management process,
organization into subsystems
O Vertical (many levels of

management)
O Horizontal (numerous
departmental)
O Integration: coordinate,

combine, and unite efforts

among the various subsystems
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Figure page 9

Continuum of
integration and
differentiation
(source:
Cleland, 1995)
37

Project organization forms

Functional

Matrix

Projectized

How to choose project

organization?
O Organizational structure of the project must

be designed to fit within the uniqueness and

constraint of projects
O Criteria to choose the form depends on:
Authority and role of project manager
2. Amount of resources available
3. Parent organization structure
1.

Functional Organization
O Featured by separation (differentiation) of

problem areas
O Hierarchical and functional structure
O Specialists are grouped together and projects
are managed as functional units (supervised
by individuals with similar skills and
experience)
O Reporting to only one superior
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Functional organization

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Advantages of functional
organization
O Easy to manage (centralizes similar resources

and experiences)
O Provides mutual support by physical proximity
O Clear definition of career path for participants

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Disadvantages of functional
organization
O Multiple project environments
O Conflict over priorities of different projects in

competition for limited resources

O Individuals place more emphasis on their
functional organization
O Project manager (coordinator) has to rely on
informal power

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Projectized Organization
O A vertical and temporary organization to fulfill

project objectives
O Project manager has total authority
O Personnel (resources) are specifically assigned
to the project and report directly to the
manager
O No functional loyalty

44

Projectized organization

45

Advantages of projectized
organization
O The structure establishes a unity of command

O Effective, direct, and informal communication

O All expertise efforts are directed to achieve

the objectives of the project

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Disadvantages of projectized
organization
O Duplications of facilities

O Inefficient use of resources

O out of a job situation of personnel

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Matrix Organization
O Multiple command system with support

mechanisms, organizational culture and

behavior pattern
O Modified from functional and project
structures (balance of power)
O Maintains vertical lines of authority with
permanent horizontal structure
O Managing multiple and complex projects with
limited resources
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Matrix organization contd

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Contd
O Staff have to report to more than one person
O Conflict and turf issue

O These to be controlled by defining roles and

responsibilities

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Weak matrix organization

51

Strong matrix organization

52

Balanced matrix organization

53

Balance of power in the

matrix organization
O Balance between weak and strong matrix

depends on:
1. Administrative relationships
2. Physical relationships
3. Time spent on the project

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Advantages of matrix
organization
O Better control of resources
O Better support for technical base (functional

O
O
O

O
O
O

organization)
Rapid response to contngencies
Efficiency in resource utilization
Better balance between time, cost, quality and
performance
Less traumatic project termination
Staff retain to their original work after project
completed
Excellent training for propsective project managers
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Disadvantages of matrix
organization
O Not cost effective
O Staff have to report to more than one boss
O More complix to monitor and control
O Require excess administrative personnel and

established policies and procedures

O Resource allocation to different projects can
be a problem
O Conflict (differing priorities, power struggles,
and competition for scarce resources)
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Comparison between different forms (adapted from Chuah et al., 1995)

Functional

Weak
Matrix

Balanced
Matrix

Strong
Matrix

Projectized

Advantages

Resource efficiency

High

High

High

High

High

Project integration

Weak

Weak

Moderate

Strong

Strong

Discipline retention

High

High

Moderate

Low

Low

Flexibility

Low

Moderate

High

Moderate

Low

Improved information flow

Low

Moderate

High

Moderate

Moderate

Improved motivation &

commitment

Low

Uncertain

Uncertain

Uncertain

High

Disadvantages
Power struggles

Low

Moderate

High

Moderate

Moderate

Heightened conflict

Low

Low

Moderate

Moderate

Moderate

Reaction time

Slow

Moderate

Slow

Fast

Fast

Difficulty in monitoring & controlling

Low

Moderate

Moderate

High

High

Excessive overhead

Low

Moderate

High

High

High

Experienced stress

Low

Moderate

High

Moderate

Moderate

Focus to client

Low

Low

Moderate

High

High

Characteristics of project organizations

Other forms: Syndicalism

structure
O Confederations of

entrepreneurs
O Anti-management style
(there is no boss)
O Valve: a vedio game
producer
O Ad-hoc teams
O People are volunterily

join the project

O No pressure for
employees to be at their
desks at any time
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http://www.valvesoftware.com/index.html

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Discussion
O What is the importance of project

management?
O Does the practice of project management vary
based on: project size, industry, country, ?
O What is the organizational form used in your
project? Is it different across industries?
O Does project management structure affect
project delivery?
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References
O Adams, J. (1997). Principles of Project Management (Collected

Handbooks from the Project Management Institute). United States

of America: Project Management Institute.
Chuah, K. B., Rao Tummala, V. M., & Nkasu, M. M. (1995). Project
management structures in Hong Kong industries. International
Journal of Project Management, 13(4), 253-257.
Cleland, D. (1995), Project Management: Strategic Design and
Implementation, International edit., McGraw-Hill, Singapore.
Kozak-Holland, M., & Procter, C. (2014). Florence Duomo project
(14201436): Learning best project management practice from
history. International Journal of Project Management, 32(2), 242255.
Gaddis, P. O. (1959). The project manager. Harvard University.
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