Contemporary orientations and

theories of management

Rafał Solecki, PhD

What are the Contemporary Management Theories?

Contemporary or Modern Management Theory began with the

work of Peter Drucker (1909-2005). He proposed the concept of
Management by Objective.

MBO was developed based upon the belief that employees

perform better when they understand what is expected of them.

It allows the employee to associate their individual efforts to the

objectives of the organization.
 What is Management By Objectives (MBO)?

Management by Objective, also called Management by Results

(MBR), is a theory of management developed by
Peter F. Drucker in his book Practice of Management (1954).

In summary, MBO is a management system in which the

manager and employees work together to develop areas of
responsibility for employees.

It is a control system in which jointly developed business

objectives are made to align with company goals. Managers
and employees develop plans for achieving these objectives .
What is the Process of Management by Objective?

Establishing Goals - Managers work to establish goals that are

based upon the company's mission, vision, and strategic intent.
This is primarily carried out by Managers.
Establishing Objectives - Objectives are the specific things to
be achieved in furtherance of the company's goals within a given
time frame. These are developed by managers and employees
working together.
Develop Action Plans - Action plans allow subordinates to
achieve the specifically identified objectives through coordinated
efforts. These action plans are also developed by managers and
employees.
What is the Process of Management by Objective?
 Appraise Results - Managers measure and appraise the specific
performance of individuals. The appraisal is based upon effort
and progress toward the completion of objectives. There is daily
feedback, and the focus is on rewards rather than punishment.
Managers emphasize personal growth and development rather
than punishment for failing to meet objectives. Importantly, the
managers must provide continued support and commitment to the
employee.
 Corrective Action - Managers will use the appraisal result to
take corrective actions. This may include additional efforts to
motivate employees, modifying objectives, plans, or goals
accordingly
MANAGEMENT FEATURES
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– REACHING THE PROJECT INITIATION STAGE

THE EMERGENCE
OF A PROBLEM

RECOGNITION
OF THE
PROBLEM

ARTICULATION
SUGGESTION
OF THE
OF CHANGES
PROBLEM

PROJECT
INITIATION
 OUTPUT DOCUMENTS – THE PROJECT CHARTER

The Project Charter summarizes the project initiation stage.

It has two functions:

External - to enable the decision to implement the project,
Identification of the basic aspects of the project.

The Project Charter can be considered as a statement of the customer's requirements.

The Project Charter is an official document that confirms the acceptance of a project for
implementation and confirms the consent of the project sponsor, customer, management
of the project implementation unit, project manager and other important stakeholders,
e.g. the bank.
OUTPUT DOCUMENTS – THE PROJECT CHARTER
JUSTIFICATION OF THE PROJECT
MEASURABLE OBJECTIVES
SUCCESS CRITERIA
GENERAL REQUIREMENTS
ASSUMPTIONS AND LIMITATIONS
GENERAL DESCRIPTION AND PROJECT BORDERS
GENERAL DESCRIPTION OF RISKS
MILESTONES
TOTAL BUDGET
STAKEHOLDER LIST
REQUIREMENTS FOR THE APPROVAL OF THE PROJECT
PROJECT MANAGER – POWERS AND DUTIES
SPONSOR – POWERS AND DUTIES
APPLICATION FOR FUNDING (ERDF)

RPO WM 014-2020
- 2,87 mld euro
 APPLICATION FOR FUNDING (ESF)

A – applicant's description
B – project partners
C – type of project
D – project description
E – project objectives (goals, indicators)
F – VAT eligibility
G – public aid and de minimis aid
H – material and financial schedule of the project
I – general budget RPO WM 014-2020
- 2,87 mld euro
J – risk analysys
K – statements
L – project implementation schedule
M – justification of the costs
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– PROJECT LIFEProject
CYCLE MODELThe phase of planning
planning
Project Project
PHASES and organizing the implementation completion
phase
project implementation phase phase
THE NATURE OF Organizational and planning Executive, control and Implementation and
Conceptual activity activities coordination activities execution activities
THE ACTIVITY
• Project initiation • Defining the structure of • Project execution • Project
• Defining the project the project • Project control completion
• Organizing a project • Planning the course of the • Project coordination
STAGES team project
• Project resource planning
• Organizing the execution of
the project

High, rising to the

COSTS, OUTPUTS Small, slow growing Medium, rising
maximum level
Medium, falling

o Customers o Project team o Executive units o Executive units

o Management o Management of the o Project team o Project team
o Project specialists executive unit o Company
PARTICIPANTS
managment
o Customers
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– PROJECT INITIATION

• Initiation is always the first step in the project implementation process. During this phase, the
project concept is usually formalized. All the ideas discussed in this phase are developed later in
the planning phase.

IMPLEMENTATIO
DEFINING PLANNING COMPLETION
N

INITIATING
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– PROJECT LIFE CYCLE

• Identification – data collection, needs analysis, profitability analysis, setting objectives, estimating
resources, identifying alternatives, presentation, consent to implementation.
• Planning – creating a team, detailed analyzes and estimates, defining the scope, defining: action
plan, budget, WBS, reporting and communication system, risk estimation, project approval.
• Implementation – procurement of goods and services, implementation of work packages,
management of implementation, problem solving, updating plans, change management.
• Completion - acceptance reviews, final settlements, product handover, project evaluation,
documentation completion and archiving, release of resources, publicizing the success.
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– PLANNING PART 1
• PROJECT MANAGEMENT according to PMI is seen as nine areas of activity:

Time management
Defining activities
Integration management Scheduling activities People management
Project planning Time estimation Organizing a team
Planning of the project implementation Scheduling of the project Finding employees
Control of any changes Control of a schedule Creating a team

Scope management Communication management

Initiation Communication planning
Scope planning Distribution of information
Scope verification Reporting
Scope change management Project completion management
PROJECT MANAGEMENT ACCORDING TO PMI STANDARD
– PLANNING PART 2
• PROJECT MANAGEMENT according to PMI is seen as nine areas of activity:

Quality management.
Quality planning Risk management
Supply management Quality assurance Risk identification
Supply planning Quality control Risk assessment
Acquisitions planning Risk management
Acquisition Risk control
Choice of source of supply
Contract administration
Contract completion Cost management
Resource planning
Cost budgeting
Cost control
Cost estimation
SOURCES OF IDEAS FOR THE PROJECT

• There are 2 groups of factors that influence the implementation of the project:
internal - diagnosis of needs, social interests, strategy of local authorities; external -
guidelines for aid programs, study visits, external partners, good practice.

• The techniques and methods of creative thinking most often used in business are:

Edwarda de Bono’s method (Six Thinking Hats),

Disney’s method,
Osborn’s checklist,
Mind-Mapping, progressive abstraction,
brainstorming.
Edwarda de Bono’s method (Six Thinking Hats)

What color are your thoughts?

TECHNIQUES OF CREATIVE THINKING

Disney’s method
This method allows the customer to look at the problem from
three different perspectives, which are also the three stages of
planning the project implementation.
These 3 stages are: Dreamer, Realist and Critic.
If the method is used in individual work, the customer goes
through all of the stages (takes each perspective in turn), on the
other hand, if the method is used in group work, the group
should be divided into three teams, each of which takes a
different perspective.
TECHNIQUES OF CREATIVE THINKING PART 1
TECHNIQUES OF CREATIVE THINKING PART 1
TECHNIQUES OF CREATIVE THINKING

Mind –Mapping

The authors of the

method (Tony and
Barry Buzan) argue
that when taking notes
in a traditional way,
only the left
hemisphere of the
brain is active
TECHNIQUES OF CREATIVE THINKING
Brainstorming – is a group creativity technique by which efforts are made to find a conclusion for
a specific problem by gathering a list of ideas spontaneously contributed by its members.
Brainstorming rules:
•accepting all ideas,
•saving each idea,
•the emphasis on the number of ideas rather than their quality,
•encouraging the introduction of imaginative ideas, even unreal,
•using someone else's ideas, building on them and developing
them.

The brainstorming technique can be used wherever there is a need to improve or invent
something new. For example, it is used to invent new (or improve existing): marketing
strategies, research techniques, publications, services, processes, market research methods,
management methods, company structures, internal company procedures, insurance policies.
PROJECT MANAGEMENT AREAS OF KNOWLEDGE

time

recources

stakeholders

√ quality
integration costs

risk
supply chain

communication scope
 Work Breakdown Structure
As a result of the decomposition of the project, a Work Breakdown Structure (WBS) is created

1. Preparation of a scientific conference

1.1 Preparation of conference rooms
1.1.1 Preparation of the plenary hall
1.1.2 Preparation of the hall for the debates of thematic groups
1.1.3 Preparation of multimedia equipment

1.2 Preparation of catering

1.2.1 Preparation of a gala dinner
1.2.2 Preparation of meals in place of the meeting
1.2.2.1 Preparation of coffee breaks
1.2.2.2 Preparation of meals
1.3 …
CLASSIFICATION OF PROJECTS PART 1
CLASSIFICATION OF PROJECTS PART 2
• by the orientation:
– object-oriented - aimed at creating or changing material objects, after implementation there
are no further changes in the functioning of the organization;
– process-oriented - aimed at creating or changing processes and operating systems (e.g.
changing the process of collecting and processing information), after their implementation,
further changes in the functioning of the organization often occur (the management system
changes, the way of making decisions, etc.);
– soft projects - the products of these projects are difficult to grasp because they are
immaterial (e.g. introducing legal regulations, preparing a report, etc.), after their
implementation, changes in the functioning of the organization often occur e.g. the way of
making decisions changes vs. hard projects
• by the organization of work on projects:
– individual projects - short-term groups of tasks and activities that are usually carried out by
one person acting as a manager and a contractor;
– team projects - implemented by employees of one organizational unit, e.g. a department.
The project manager also performs his current function (e.g. head of department).
CLASSIFICATION OF PROJECTS PART 3

• by the degree of novelty:

– projects with a high degree of novelty - they are new both as a subject of project and for the
project team (e.g. a blue light laser construction project), they are often called innovative projects,
– projects with a low degree of novelty - have a low degree of novelty in terms of the subject of
project and / or the project team.

• by the relation to the final goal:

– preparatory projects - they prepare the conditions for launching another project,
– finalizing projects - they complete the achievements of several other projects,
– alternative projects - often found in research projects.
CLASSIFICATION OF PROJECTS PART 4

• by project financing sources:

– financed with equity capital - (e.g. retained earnings, depreciation), capital comes from
external sources (e.g. investor contributions, venture capital),
– financed with external capital - debt financing (e.g. loans, issuance of debt securities,
leasing), partial or full financing with the use of co-financing, e.g. European Union funds.
PROJECT PLANNING PART 1

• Planning is one of the most important stages in the project life cycle. This process shows
members of the project team what the purpose of the project is and how to do it.
• Planning is an organizational and planning nature. At this stage, a preliminary project plan is
created, we define its structure and course.
• The project plan outlines how and when to achieve target performance indicators for
deadlines, costs, scope and quality. It also identifies the main products, activities and
resources needed to complete the project.
PROJECT PLANNING PART 2

TYPES OF RESOURCES (ACTIVE - WORK / PASSIVE - MATERIALS)

materials, raw materials, semi-finished

MATERIAL products
durable equipment
movable equipment

contractors
HUMAN
managers, specialists

NOMINAL financial resources

PROJECT PLANNING PART 3

• The Gantt Chart is a graphical representation of planned activities over a specific time period.

 It allows to define:

the beginning, end and duration of individual parts and the entire project, time relations between various parts of
the project, objectives of individual tasks, the degree of task completion, personal resources necessary to carry
out the tasks, and the critical path of the project.
PROJECT PLANNING PART 3
PROJECT PLANNING PART 4

• Using Gantt charts in project time management:

– a simple way to visualize planned activities,
– planning repetitive and unique works,
– work progress control,
– determining the work discipline,
– minimalization of idle time,
– effective time management.
PROJECT PLANNING NETWORK METHODS

In 1957, the Critical Path Method (CPM) was used at the Du Pont chemical plant.
In project management, the critical path is the longest sequence of tasks that must
be completed to complete a project. The tasks on the critical path are called critical
activities because if they’re delayed, the whole project completion will be delayed.
Finding the critical path is very important for project managers because it allows
them to:
•Accurately estimate the total project duration
•Identify task dependencies, resource constraints and project risks
•Prioritize tasks and create realistic project schedules

To find the critical path, project managers use CPM algorithm to define the least
amount of time necessary to complete each task with the least amount of slack.
METODY SIECIOWE PLANOWANIA PROJEKTU

The PERT (Program Evaluation and Reviev Technique) method was developed in 1958
during the construction of the Polaris ballistic missile. In this method, the duration of
the activity is not clearly defined.
The purpose of using the PERT method is to assess the likelihood of completing the
project within the pre-defined deadline.
The duration of activities depends, for example, on the scope of activities, the
technology adopted, the resources allocated and their efficiency.
It is assumed that the duration of some activities is independent of the duration of the
remaining activities.
PERT distinguishes between 3 times of performing a given activity in the project:
Pessimistic time - this is the time when a given activity can be performed under the
most unfavorable conditions,
Optimistic time - this is the time when a given activity can be performed under the
most favorable conditions,
Most probable time - this is the time when the activity can be performed under the
most probable conditions.
Networks with modifications

Where is the delay in activities and where is the acceleration?

D
PLANNING OF OBJECTIVES

• Each well-defined project should

have one main objective and
several specific objectives.
• Based on the analysis of functional
requirements, the objectives of the
project are defined.
• The scope (products), cost
(resources) and time (schedule)
constitute the so-called Project
triad.
• When formulating objectives, it
should be remembered that they
must be in line with the so-called
the S.M.A.R.T principle:
PLANNING OF THE ORGANIZATIONAL STRUCTURE
• Determining the organizational structure and description of project roles is the first and key
stage of starting a project in an organization.
• Defining the organizational structure enables:
– formalizing the functional and service relationship between individual team members,
– determining the tasks that must be performed by individual project members, groups
and project teams,
– estimating the number of employees necessary to allocate to the project in order to
monitor the availability of resources,
– division of roles in the project team, for example: a diagram of the organizational
structure and places in the structure of the project work diagram.
RESOURCE PLANNING

• Resource planning is like creating a shopping list – resources are all that is needed to achieve
the project's objectives such as materials, equipment, employees and money.
• Resource planning relies on estimating how many resources need to be acquired or used to
complete the planned task in the project.

• Planning resources in the project:

planning the staff necessary to implement the project

planning material resources (office rooms,

training rooms, equipment, teaching aids - office supplies)

planning cooperation with external entities

budget planning
COST PLANNING
• Project Cost Management Plan - describes how to plan,
manage, classify and control project costs throughout
project life cycle.
• The project cost management plan is an essential
element and entry document when: estimating project
costs, determining the project budget, controlling
project costs.
• It is a document that defines the format and standards
of cost management
• Features of a well-structured budget: it is adequate to
the planned activities, it is legible and clear, it is
known to the managers of the organization.
• We construct the budget: after determining the
activities aimed at the project's objectives, after
determining the project schedule, after determining the
necessary expenditures for the implementation of
activities, after determining the resources that we use
to implement the project.
PROJECT STAKEHOLDERS

• There are internal and external stakeholders. The number of participants and their role depend on
the nature of each project. There are four basic types of stakeholders:
– project sponsor - a person or entity financing the project or commissioning the project
implementation,
– project manager - a person responsible for the proper implementation of the project,
– project team - employees directly involved in the implementation of the project,
– Contractors / subcontractors - external entities (enterprises).

Stakeholder management strategy:

Influence factor = influence value (0-10) x project attitude value (-10 negative,
0 neutral, +10 positive)
PROJECT MANAGEMENT
– SUPERVISION OVER THE IMPLEMENTATION OF THE PROJECT

• Project control is a routine activity that involves reading the project plan, checking what is
currently happening in the project, and then drawing and comparing conclusions from
both observations. The person responsible for control is the project manager. During the
project implementation, the manager constantly monitors its progress, checks what activities
have been performed, and determines how the actual state of the project is in line with the
previously prepared plan.
• Without control, the organization would not be able to assess the achieved results from the
point of view of achieving the set objectives.
• The main objectives of the control are: supervision over compliance with financial
discipline, supervision over compliance with the deadlines for commencement and
completion of specified tasks, supervision over compliance with the quality of
performance.
RISK MANAGMENT

Risk is "the cumulative probability effect of uncertain events that may favorably or
adversely affect the implementation of the project"– Pritchard 2002
Uncertainty refers to events with unpredictable probability and outcomes.
Risk can be managed, uncertain events not.
An example of an unforeseen situation?
Everyone intuitively assesses the risk of actions taken, estimates them and chooses
what can bring the best results.
It is also important when events that have a negative impact on the project occur
during the implementation of the project. If it is at the beginning, the possibility of
change is very high and corrective actions do not involve significant costs.
What happens when the risk materializes at the end of the project?
RISK MANAGMENT

The risk management process includes:

Risk Identification
Risk Analysis and Risk Assessment
Develop a response to Risk
Risk Monitoring and Control
Audits and Risk reviews

Risk Identification can not only take place at the beginning of the planning
process, but should be performed cyclically as the project progresses.
RISK MANAGMENT

The impact, like the probability, can be assessed either qualitatively or

quantitatively.
The impact of risk on a project is much more important than the likelihood of
it occurring.
If a low probability but critical risk occurs, it could destroy the project!

It is not the same risk which has a probability of 80% but an impact on 2 points
(1-10) and a risk which has a probability of 20% but an impact on 8 points.
RISK RESPONSE PLAN
Risk response:
Risk Avoidance ;
Passing of Risk;
Risk Sharing;
Mitigate The Risk;
Risk Acceptance.

Change management is a very important element of risk control.

The changes result from reasons that can be divided into 3 categories:
1)Changes in the scope resulting from the customer's requests.
2)Changes in the scope, costs, dates, quality resulting from the implementation of contingency
plans.
3)Changes implemented as a result of improvements proposed by stakeholders.
CHANGE MANAGMENT
• Change management consists in monitoring the emerging requested changes, considering
their validity, making a decision to reject or accept them.
• Integrated change management is strongly connected with other processes in project
management, because only a small percentage of projects is going according to plan.

Integrated change management in the project:

influencing the factors by passing the integrated change
control process, to ensure that only approved changes are
implemented; identifying the resulting changes or the need
for changes; ensuring the implementation of only approved
changes; review and approval of change requests; review and
approval of the proposed preventive and corrective actions.
RISK RESPONSE PLAN

The change control system should include:

Registration of changes;
Assessment of the effects of changes;
Formal approval of changes;
Resolving conflicts arising as a result of introducing changes;
Presenting the changes to the project stakeholders;
Assignment of responsibility for making changes;
Improving the schedule and budget of the project;
Supervising changes.
REASONS FOR FAILURES, INCOMPLETE SUCCESSES OF PROJECTS

LOW-QUALITY LACK OF MANAGEMENT

STATIC METHODS
SOLUTIONS SUPPORT

LACK OF COORDINATION
CHANGE OF
WITH OBJECTIVES AND
REQUIREMENTS AND
STRATEGY
SPECIFICATIONS
EXCESSIVE
BUREAUCRACY
INCORRECT DIVISION OF LACK OF RESERVE FOR
ROLES IN THE TEAM EMERGENCY ACTIONS
LACK OF HUMAN
RESOURCES
PLANNING METHOD
 DIRECT AND INDIRECT COSTS

Indirect Costs
are those cost items that are only partially
Direct Costs related to the project - most often these are
are cost items that represent the value of
common costs items for the project and
resources consumed to complete the project.
other segments of the company's activity.
Direct costs include mainly: remuneration of
members of the project team, purchase of fixed
A feature that characterizes indirect costs is
assets, external services purchased for the
the inability to measure them only in
project, etc. Direct costs are the main focus of
relation to the project. Indirect costs of
project cost planning. Direct costs are relatively
projects include: operating costs of
easy to measure and control, as they are
departments supporting project
recorded on the basis of accounting documents
implementation (e.g. procurement
clearly indicating the relationship with the
department, administration, accounting),
project. Most project cost control methods focus
costs of using property infrastructure used
on direct costs.
only partially for the purposes of the project,
etc.
 Types of Costs
Fixed Costs
Variable Costs Fixed costs are the remainder of the costs
costs related to the consumption of resources that are related to the project, the total amount of
obtained solely as a result of the decision to start the which will not change, regardless of whether
project. the project is implemented or not.

Variable cost must meet the basic condition – the Fixed costs are the costs of resources that are
resource associated with the cost can be flexibly sourced permanently available and used in the
in the amount needed to complete the project. Variable implementation of various projects or other
costs are costs that change with the amount of work repetitive activities. Fixed costs are therefore
involved with a project. the costs of resources that are at the company's
continuous disposal, and only periodically
allocated to a specific project.
Examples of variable costs are hourly labour, the cost of
material, the cost of supply, fuel for bulldozers, etc.
For example, if contractors were hired
specifically to perform the project, the cost of
remuneration is a variable cost, but if these
people are temporarily transferred to the
project from other areas of activity, it is a fixed
cost.
COSTS ANALYSIS PART 4

Project costs by type

costs are classified by type of resources used.

These can be, for example: depreciation, consumption of materials and

energy, taxes and fees. The popularity of such a system of costs is
related to its widespread use in cost accounting records.

This record is also useful for project cost planning.

FINANCIAL AND ECONOMIC ANALYSIS PART 1

•The aim of the financial analysis of the project is to assess the

financial profitability of the investment and domestic capital by:
determining the values of the project's financial performance
indicators,
verifying the financial sustainability of the project,
determining the appropriate financing, as well as showing that the
project is financially viable.
FINANCIAL AND ECONOMIC ANALYSIS PART 1

Key issues of the analysis:

defining the assumptions for the financial analysis,

defining if the project generates revenue and can be objectively identified in advance?

a statement of the project's cash flows for each year of the analysis,

determining if the current value of the revenues generated by the project exceeds the current
value of operating costs,
FINANCIAL AND ECONOMIC ANALYSIS PART 2

determining (if applicable) the level of co-financing the project from EU

funds,

identifying the sources of project financing,

determining the value of the project's financial efficiency indicators,

financial sustainability analysis - demonstrating that the financial resources for the
implementation of the project have been provided and they are sufficient to finance the costs
of the project during its implementation and subsequent operation.
PUBLIC RELATIONS

• Public Relations are planned and continuous activities aimed at creating and maintaining
mutual understanding between the organization and society.
• Like marketing and advertising, effective Public Relations is all about understanding social
needs and meeting them in the best possible way.
• The choice of public relations form depends on the type of messages to be disseminated, the
recipients, size and scope of the message. For example:
sponsoring, disseminating news, and organizing events.

Sponsoring - this is a way of Dissemination of news - it can increase Organizing events - has a
publicizing a charitable initiative social recognition for the activities of propaganda character. It can take
which contributes to the favorable the organization and easier recognition the form of a press conference or
attitude of citizens, improving the of its effects. This is done by winning a seminar.
the favor of the editorial offices and the
reputation and publicizing the
reporters who represent them.
brand.
COMMUNICATION IN PROJECT MANAGEMENT
• Professional communication and communication skills, as well as a comprehensive and planned
approach to communication management can significantly support the implementation of
projects.
• The project manager plays a key role:
‒ is responsible for the timely and correct preparation of information, which requires careful
planning of communication,
‒ identifies stakeholders, defines their needs and communication expectations, so as to
implement the project in accordance with the established assumptions,
‒ collects key information in the initiation, planning and implementation phases of the project.
• Professional communication means communication at a high level in the field of project
management. Project communication is perceived not only as the interpersonal communication
of the project participants, but also as the overall communication management in the project.
Professional communication covers the entire period of project management - from initiation
through planning, implementation and monitoring to the end of the project.
COMMUNICATION IN PROJECT MANAGEMENT

• Effective communication and communication management in a project have two important

features.
‒ Firstly, communication is a continuous and ubiquitous process managed by the project
manager at every stage of the project life cycle and at the organizational level, being one
of the most important aspects of the project manager's activity.
‒ Secondly, effective communication requires the involvement of project stakeholders in
the implementation of communication processes. Effective communication management
creates a bridge between the project manager and stakeholders, enabling the
implementation of diverse and complex tasks.
COMMUNICATION IN PROJECT MANAGEMENT

People remember 10% of what they read, 20% of what they hear and 30% of
what they see and hear.
4 rules of communication:
1)People remember something more when it is repeated more often, so it is worth
repeating an important thing several times;
2)The first information on a given topic is remembered and it becomes a reference
point for subsequent information - the first impression counts;
3)The first information is remembered for short statements, and the last one for longer
statements;
4)The information that was conveyed in emotional arousal is remembered.
COMMUNICATION IN PROJECT MANAGEMENT

The paraphrase can be used to emphasize your commitment

Project team meetings:

Each meeting should be properly structured.
It should start on time and only last until the scheduled end date.
It should have a program written and communicated to participants in advance.
At the beginning of the meeting, refer to the previous meeting and evaluate the progress. Project
team members should have consistent and short reports on the work done.
Every meeting should be recorded.
It's always a good idea to thank your colleagues for the work they have done.
TEAM MANAGER

MOST A MANAGER'S
WORK IS
COMMUNICATION

informal information distribution methods

information access rules
formal stakeholder group
reporting rules data protection
rules for escalating problems
 CRITICISM AND PRAISE
Communicating critical comments should include:
Discussion of the observed situation or the performed task;

Description of the subordinate's behavior;

Communicate your feelings;

Allowing the employee to think about the problem, ask open-ended questions, the employee can
determine how mistakes could be avoided, he can present his ideas about not repeating the error and
expectations of the organization regarding help in similar cases;
Request to correct work / behavior;

Presentation of ways and dates of improvement;

Communicate a manager's expectations of future behavior or work;

Expressing the consent of the employee to improve the work;

Emphasizing the importance of the employee's work, positive conclusion of the meeting.
 CRITICISM AND PRAISE
Expression of praise should include:
Description of the subordinate’s observed behavior;
Presentation of the effects of work or behavior;

Communicate your feelings;

Allowing the employee to think;

Submitting a request for similar behavior in the future;

Praising an employee for a good work.

Criticism and praise is not a form of punishment and reward.

Criticism and praises are needed by employees because they help them gain feedback about
their work and allow them to improve.
PSYCHOLOGY IN MANAGING A PROJECT TEAM
• A project team is a group of people who must rely on the accumulated knowledge, skills
and talents of each of the interdependent team members. By working effectively together,
the team can find solutions to problems that are much better than those that could be
created by each team member individually.

The
The identification
identification ofof the
the project
project
team's
team's potential
potential is
is one
one ofof the
the basic
basic
tasks
tasks in
in the
the project
project initiation
initiation phase.
phase.

The
The project
project planning
planning phase
phase includes:
includes:
appointing
appointing aa project
project team,
team, setting
setting
communication
communication procedures
procedures and
and the
the
structure
structure ofof project
project work,
work, defining
defining
quality
quality standards
standards and
and other
other activities
activities
that
that may
may also
also have
have aa smaller
smaller impact
impact
on
on the
the team.
team.
ROLE OF THE PROJECT MANAGER

• The project manager is the main decision-maker responsible for the proper course of the project
implementation, monitoring activities related to scheduling, budgeting and the course of
substantive works on an ongoing basis.
• The project manager is responsible for:
– planning and organizing work and coordinating the work of members of the project team,
– proper course of the project implementation (financial and substantive),
– motivating the project team,
– achieving the desired end result.

According to PMBoK (2008), the project manager is the most important authority in the project
and reports only to the management of the company.
According to PRINCE2 (2009), the main authority in the project is the steering committee headed
by the chairman.
STYLES OF MANAGEMENT AND DECISION MAKING

Management styles by Kurt Lewin, Ronald Lipitt and Ralph K. White

TYLES OF MANAGEMENT AND DECISION MAKING

Management styles by Kurt Lewin, Ronald Lipitt and Ralph K. White

TYLES OF MANAGEMENT AND DECISION MAKING

Management styles by Kurt Lewin, Ronald Lipitt and Ralph K. White

TYLES OF MANAGEMENT AND DECISION MAKING

Management styles by Likert

ORGANIZATION OF TEAM WORK PART 1
• Management styles:
– Separating style - the project manager is neither involved in contacts with employees
nor in the implementation of the organization's tasks.
– Sociable style - the project manager is more employee-oriented than objectives-
oriented. This style is sometimes called democratic, in which the basic value is the
subordinate, and therefore focused on his needs, emotions and moods. The project
manager knows each employee and their personally problems. He talks to every
employee, the door to his room is always open. The employee has no problem accessing
the boss.
ORGANIZATION OF TEAM WORK PART 2

• Style zarządzania:
– Directive style - the project manager is highly objectives-oriented and low-worker. This
style is autocratic. The manager influences the employee mainly through orders and
prohibitions. The favorite form is writing long formal reports, which are rarely analyzed.
The employee counts only in the context of the tasks performed by him, only objectives
are important.
– The ideal (integrated) style - the project manager is both focused on employees and on
achieving objectives. This style is considered to be the ideal style as the manager tries to
integrate the needs and expectations of the employee with the needs of the organization.
This style is called a leadership style, where the Project Manager implements the
following principles: integrating employees and inspiring them to achieve their basic goals
while keeping in mind their basic needs.
TIME MANAGEMENT PART 1
• GTD – Getting Things Done / THE ART OF EFFICIENCY /
• GTD is a method of increasing personal productivity through efficient and effective rules for
managing our time at work or at home. Increasing the work efficiency of individual
employees also means greater efficiency in the work of the entire team.
• According to David Allen, the two basic ingredients that influence time management are
control and perspective. Our assessment of events over time allows us to classify current
tasks into six levels: current tasks, ongoing projects, areas of responsibility, annual goals,
vision for 5 years, lifetime.
TIME MANAGEMENT PART 2
Do (if takes less than 2 minutes)

YES Delegate to another person

Schedule for later (calendar or to-do list)

Does the task
require an
activity?
Move to archive

NO Move to "maybe / sometime" list

Throw it in the trash

Source: K. Nowak, Wybrane metody zarządzania czasem w projekcie, „Studia i Materiały. Miscellanea Oeconomicus”, 2009, p. 176.
ROLES IN THE PROJECT TEAM

CREATOR - a person who solves problems in a

TEAM SOUL - can read the individual needs and
creative and unconventional way, is of great value
concerns of team members
for the team.
PERFECTIONIST - takes care of the
COORDINATOR - a goal-oriented person, shows
implementation of all tasks, carefully checking that
enthusiasm, motivates others.
everything has been done properly

IMPLEMENTER - strives to complete the project, SOURCE SEEKER - seeks solutions to problems, is
transforms ideas into practical actions. creative, and tests new possibilities

EVALUATOR - the analytical mind of the team that LOCOMOTIVE - full of energy, task-oriented team
can calculate various ideas and solutions and leader drives the entire team and sets directions
evaluate the results of work for action

Each team member has certain predispositions to perform specific roles,

supported by an individual tendency to certain behaviors, ways of
cooperation and building relationships with others (R.M.Belbin).
IT SYSTEMS SUPPORTING PROJECT MANAGEMENT
• Running a project requires not only appropriate knowledge and skills, but also tools that will
allow the work to be completed within the set time and budget, and all objectives will be
achieved. Such activities can be supported by the IT system for project management.
• Benefits of using the project management IT system: efficient planning, implementation and
control of activities, continuous monitoring of the project implementation, control of time,
money and materials used in the project.
• SIMIK 2007 – 2013 (KSI + LSI),
• SL 2014,
• 2021 – 2027 /CST 2021/

• There are many specialized software / IT systems that support the project management
process. One of the most popular and used systems is Microsoft Project.
MICROSOFT PROJECT
• Microsoft Project is an application supporting the management of projects, resources, time
and project finances. It is a specialized, advanced and very popular system that offers clear
tools for planning activities, building schedules, supervising project implementation and
reporting.
• The application supports such areas of project management as:
– task scheduling - creating schedules,
– work planning - identifying and assigning resources to tasks,
– project implementation control - work progress and schedule adjustments,
– creating and managing the project budget,
– visual support for project management.
MICROSOFT PROJECT – TASK PLANNING
• A schedule of task is formed here, which shows: what is to be done in the project, how much time is required for
individual task, in what order they should be implemented, but also what are the relationships between tasks, what is
the labour intensity and cost.
MICROSOFT PROJECT – WORK PLANNING
• When we planning a project, we may be interested not only in the aspect of tasks, but also in
the resources necessary to implement the project.
MICROSOFT PROJECT – PROJECT IMPLEMENTATION CONTROL
• The software is great not only in the planning phase of the project, but also during its
implementation. We can use tools for entering information about the implementation of
tasks, compare the baseline with the current plan, react to changes by correcting the project.
MICROSOFT PROJECT – PROJECT BUDGET MANAGEMENT

• At the project planning stage, Microsoft Project enables the introduction of the information
about the costs (or revenues) of the project. These costs can be entered directly into tasks or
resources. At the time of saving the baseline plan, the application remembers the planned
costs, and the running costs depend on the current plan and actual values. This way, the
application makes it possible to compare the planned budget of the project with the costs /
receipts at each stage of the project.
MICROSOFT PROJECT
– VISUAL SUPPORT FOR PROJECT MANAGEMENT PART 2
• The system also offers ready-to-use reports, such as Progress and Resource Overview, which
allow the manager to monitor progress and communicate effectively with the team,
management and all stakeholders.
 NPV = Net Present Value

Net Present Value

CF – net cash flow in PLN (difference between inflows and outflows),

t – next implementation period,
n – number of periods,
i – discount rate.

If the NPV value is less than or equal to zero, then from the point of view of the financial
profitability of the investment, the project should not be undertaken.

If the profit from the project implementation is unsatisfactory, the project should not be
carried out.
SCHOOLS OF THE ORGANIZATION

Classical management school - the third approach to management - the theory of bureaucracy – Max
Weber. Bureaucracy is a model of an organizational chart based on formal and legalized power.

The bureaucratic form of organization is efficient, logical and rational. An ideal bureaucracy has 5 basic
characteristics:

The organization should adopt a clear division of labor and each position should be occupied by an expert

The organization should establish a coherent set of rules to ensure the uniform performance of tasks

The organization should establish a hierarchy of positions for offices that creates a chain of issuing orders from
top to bottom of the organization
SCHOOLS OF THE
ORGANIZATION
School of interpersonal relations (behavioral)

Abraham Maslow formulated the concept of a needs hierarchy according to which man satisfies the most basic
aspects and then the needs of a higher order:

persuading the employee to full realization, work becomes the

main way of self-realization of the employee

creating workplace that give the opportunity to achieve autonomy and personal
control, work to strengthen the employee's identity, feedback and recognition of the
employee
work organization enabling interaction with colleagues, social and sports
facilities, social events outside of work

pension programs and health care systems, guarantee of longer

employment and emphasizing the importance of a career within
the company

salaries and safe and pleasant working conditions

PMI METHODOLOGY
• Project Management Institute (PMI) is an international association, founded in 1969 in
Pennsylvania (USA), which brings together professionals in the field of project management.
• The activities of PMI focus on collecting the best project management practices, developing
them in the form of project management standards, disseminating professional knowledge in
the field of project management and certifying project management qualifications.
• PMI methodology - is a general set of project management principles codified by the Project
Management Institute and released in the form of PMBOK® Guide *, which has been widely
recognized as the basis of the knowledge of a professional project manager.
• *PMBOK® Guide is a set of the best, generally accepted good project management practices,
which was created in order to create a common language, a set of concepts in this field.
PRINCE2 METHODOLOGY
• Prince2 started with a standard developed in the mid-1970s called PROMPT (Project Resource
Organization Management Planning Technique). Thanks to its development by project managers
previously associated with the IBM concern, PROMPT II was created, published in 1979 by the
British government agency Central Computer and Telecommunications Agency (CCTA). An
enriched version of the methodology appeared in 1989 as the PRINCE (Projects in Controlled
Environments) standard, which has also been improved.
• First published in 1996, Prince2 soon began to be used outside IT as a general project
management methodology. Prince2 also has the option of certification on two levels: Prince2
Foundation (basic methodology and terminology) and Prince2 Practitioner (the highest
qualification Prince2).
PROJECT MANAGEMENT ACCORDING TO PMI STANDARDS
- PROJECT IMPLEMENTATION
• The project implementation management process requires the project team to undertake
appropriate activities and tasks in order to implement the project management plan, which is
to lead to the completed scope of the project's work.
• These will be tasks and activities such as: implementation of project tasks; development of
the project team; preparation of inquiries, tenders, valuations, acquisition and allocation of
resources necessary to perform the work; controlling, verifying and accepting the products
of the project; risk management and (if necessary) implementation of preventive and
corrective actions; introduction of approved changes to the scope, plans and environment of
the project; shaping communication channels inside and outside the project; collecting
information, reports on the progress of work and making forecasts; documentation of
project experiences (lessons learned) and implementation of approved improvements to
implemented processes.
SUCCESS CRITERIA FOR PROJECT MANAGEMENT
• The most important criterion for assessing the success of the project is the achievement of
the assumed main goal, within the planned time, within the assumed costs, corresponding to
the assumed quality parameters of the project.
• The success of the project is influenced by such elements as: proper definition of objectives,
resources, project parameters, support and commitment from the project sponsor,
maintaining relationships with project stakeholders, informing them about the progress of
the project, a well-selected project team, employees who have appropriate knowledge and
skills, a well-prepared project plan and schedule, proper division of tasks and responsibilities,
regular monitoring and control of risk in the project, reliable and timely reporting of work
progress, proper communication in the project, solving the most important problems at the
highest management level.
SUCCESS FACTORS IN PROJECT MANAGEMENT
Favor of the authorities: decisions that
are essential to the realization of the Decisions on the financial
project involvement of entities

Government and Lenders, insurers, financial

local authorities PROJECT SUCCES institutions

Support of the local OBJECTIVE Cooperation with other organizations

community involved in the implementation of
INTERNAL EXTERNAL the project
RESULTS CUSTOMER CUSTOMER
SATISFACTION SATISFACTION
KEY PROCESS MANAGEMENT MOTIVATING IMPROVEMENT KNOWLEDGE
TEAM
PROJECT MANAGEMENT METHODOLOGY COMMUNICATION THE TEAM OF COMPETENCE SHARING
PROJECT
RELATIONS WITH PEOPLE
JOINT RESPONSIBILITY OBJECTIVES
STAKEHOLDERS ORIENTED
ORIENTATION
DECOMPOSITION OF PROJECT OBJECTIVES
VISION OF INTERNAL
RESTRICTIONS STRATEGY
DESIGNATED DIRECTION OF ACTIVITIES PROJECT FACTORS
OF PROJECT OF PROJECT
MANAGEMENT
PROJECT PROJECT OF THE
UNDERSTANDING AND TRUST WE ALONE
MANAGER TEAM ORGANIZATION
The most common reasons for project failures include:

BAD NO RISK MANAGEMENT

UNDERESTIMA IDENTIFICATION IN THE PROJECT
TED COSTS OF PROJECT
OBJECTIVES

BAD
WEAK IDENTIFICATION
POOR
MOTIVATION OF OF PROJECT
COMMITMENT TO
THE PROJECT REQUIREMENTS
THE TEAM’S WORK
TEAM

As much as 70% of the causes of project failures are due to bad organization and
inadequate leadership, and only 30% of the lack of employee involvement.