Quiz 2 Cheat sheet
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Middle Tennessee State University *
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Management
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Jun 9, 2024
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Orchestrating the Decision-Making Process
Managing—coping with complexity
Formulate plans and objectives.
Monitor results.
Take corrective action.
Expedite activities.
Solve technical problems.
Ethical Dilemmas—situations where it is difficult to determine whether conduct is right or wrong
• Padding of cost and time estimations.
• Exaggerating pay-offs of project proposals.
• Falsely assuring customers that everything is on track.
Stakeholders are people and organizations that are actively involved in the project or whose interests may be positively or negatively affected by the project.
Project Management Maxims
• You can’t do it all and get it all done.
Task-related currencies
Resources Lending or giving money, budget increases, personnel, etc.
Assistance Helping with existing projects or undertaking unwanted tasks.
Cooperation Giving task support, providing quicker response time, or aiding implementation.
Information Providing organizational as well as technical knowledge.
Position-related currencies
Advancement Giving a task or assignment that can result in promotion.
Recognition Acknowledging effort, accomplishments, or abilities.
Visibility Providing a chance to be known by higher-ups or significant others in the organization.
Network/contacts Providing opportunities for linking with others.
The Law of Reciprocity
• One good deed deserves another, and likewise one bad deed deserves another.
Quid pro Quo
• Mutual exchange of resources
and services build relationships.
• You scratch my back, I’ll scratch yours.
Effective Project Vision
-Communicate
-strategic sense
-passion -inspire others
Mapping Stakeholder Dependencies
• Project team’s perspective
• Whose cooperation will we need?
• Whose agreement or approval will we need?
• Whose opposition would keep us from accomplishing the project?
• Stakeholder’s perspective
• What differences exist between the team and the people on whom the team depends?
• How do the stakeholders view the project?
• What is the current status of the relationship the team has with the stakeholders?
• What sources of influence does the team have relative to the stakeholders on whom the team depends?
Management by Wandering Around (MBWA) involves managers spending
the majority of their time outside their offices in order to have face-to-
face interactions with employees building cooperative relationships.
• Relationships should be built before they are needed
Characteristics of Effective Project Managers
• Initiate contact with key stakeholders to keep abreast of developments.
• Anticipate potential problems.
• Provide encouragement.
• Reinforce the objectives and vision of the project.
• Intervene to resolve conflicts and prevent stalemates from occurring.
Managing Upward Relations
Project success is strongly affected by the degree to which a project has the support of top management. Top management must:
• Provide an appropriate budget.
• Be responsive to unexpected needs.
• Send a clear signal to others in the organization of the importance of the project and the need to cooperate.
• Rescind unreasonable demand.
• Provide additional resources.
• Recognize the accomplishments of team members.
10.7 Qualities of an Effective Project
Manager
1. Effectivecommunicationskills 2. Systemsthinking
3. Personalintegrity
4. Proactivity
5. Highemotionalintelligence(EQ) 6. Generalbusinessperspective
7. Effectivetimemanagement
8. Optimism
The first project team meeting—project kick-off meeting
- Establishing ground rules
- Planning decisions
- Tracking decisions
- Managing change decisions
- Relationship decisions
- Managing subsequent project meetings
Synergy
• Positivesynergy 1+1+1+1+1=10 • Negative synergy 1 + 1 + 1 + 1 + 1 = 2
Characteristics of High-Performing Teams
1. Share a sense of common purpose
2. Make effective use of individual talents and expertise
3. Balance role and share tasks
4. Exert energy toward problem solving
5. Accept differences of opinion and expression
6. Encourage risk taking and creativity
7. Set high personal performance standards
8. Identify source of both professional and Forming: During this initial stage, the members get acquainted with each other and understand the scope of the project. what behaviors are acceptable with respect to both the project (what role they will play, what performance expectations are) and interpersonal relations (who’s really in charge). completed once members begin to think of themselves as part of a group.
Storming: stage is marked by a high degree of internal conflict. Members accept that they are part of a project group
but resist the constraints that the project and group put on their individuality. resolved, the project manager’s leadership becomes accepted, Norming: The third stage is one in which close relationships develop and the group demonstrates cohesiveness. complete when the group structure solidifies and the group establishes a common set of expectations about how members should work together.
Performing: The team operating structure at this point is fully functional and accepted. Adjourning: performing is the last stage of their development. However, for project teams, there is a completion phase. Instead, attention is devoted to wrapping up the project. Conditions Favoring Development of High-
Performing Project Teams
- There are 10 or fewer members per team.
- Members volunteer to serve on the project team.
- Members serve on the project from beginning to end.
- Members are assigned to the project full time.
- Members are part of an organization culture that fosters cooperation
and trust.
- Members report solely to the project manager.
- All relevant functional areas are represented on the team.
Establishing Team Norms
- Confidentiality is maintained; no information is shared outside the team unless all agree to it.
- It is acceptable to be in trouble, but it is not acceptable to surprise others. Tell others immediately
when deadlines or milestones will not be reached.
- There is zero tolerance for bulling a way through a problem or an issue.
- Agree to disagree, but when a decision has been made, regardless of
personal feelings, move forward.
- Respect outsiders, and do not flaunt one’s position on the project team.
- Hard work does not get in the way of having fun.
Factors affecting recruitment
- The importance of the project
- The management structure being used to complete the project Considerations that need to be factored into the recruitment process
- Problem-solving ability
- Availability
- Technological expertise
- Credibility
- Political connections
- Ambition, initiative, and energy
- Familiarity
group decision making involves four major steps.
1. Identifying problems
2. Generating alternatives
3. Reaching a decision 4. Following up
Rejuvenating the Project Team
Informal Techniques
- Institute new rituals
- Show the team an inspiration movie
- Have the project sponsor give a pep talk Formal Techniques
- Hire an external consultant to facilitate a team-building session to
elevate team performance and clarify ownership (whether the team
has direct influence over the issue) issues
- Link team-building activities with outdoor experience to provide an
intense common experience that accelerate the social development of Managing Conflict within the Project
Encouraging Functional Conflict
- Functional conflict plays a critical role in obtaining
a deeper understanding of the issues and coming up with the best decisions possible.
- Project managers can legitimize dissent within the team by
• Designating someone to play the role of devil’s advocate.
• Asking the group to take 15 minutes to come up with all the reasons the team
should not pursue a course of action.
Managing Dysfunctional Conflict
- Mediate the conflict
- Arbitrate the conflict
- Control the conflict
- Accept the conflict
Managing Project Reward Systems
- The reward system encourages team performance and
extra effort.
- Most project managers advocate the use of group rewards.
- To increase the value of rewards, rewards need to have
lasting
significance.
- Some project managers have to use negative reinforcement to motivate
project performance.
- There are times when we need to reward individual performance.
Examples of this kind of rewards include
• Letter of recommendation
• Public recognition for outstanding work
.
Two biggest challenges involved in managing a virtual project team Developing trust
-Hold a face-to-face meeting at the beginning and orchestrate the exchange of social information
-Set clear roles for each team member
-Form teams with people who have already worked effectively together on projects, if possible
Developing effective patterns of communication
-Don’t let team members vanish
-Establish a code of conduct to avoid delays
-Establish clear norms and protocols for surfacing assumptions and conflicts Use electronic video technology to verify work
Four Strategies for Communicating with Outsourcers
Strategy 1: Recognize culture differences Strategy 2: Choose the right words Strategy 3: Confirm your requirements Strategy
4: Set deadlines
Steps of Development of a Detailed RFP
1. Summary of needs and request for action
2. Statement of work (SOW) detailing the scope and major deliverables
3. Deliverable specifications/requirements, features, and tasks
4. Responsibilities—vendor and customer
5. Project schedule
6. Costs and payment schedule
Advantages and Disadvantages of Outsourcing Project Work
Advantages
1. Cost reduction
2. Faster project completion
3. High level of expertise
4. Flexibility
Disadvantages
1. Coordination breakdown
2. Loss of control
3. Conflict
Fisher and Ury recommend that you use jiujitsu when dealing with such a person. That is
- When the other person begins to push, don’t push back.
- Ask questions instead of making statements.
- Invite criticism and advice instead of defending your ideas.
- Use silence as a response to an unreasonable proposal.
- Have a strong best alternative to a negotiated agreement (BATNA). A
strong BATNA gives you the power to walk away Principled negotiation
- Is an approach to negotiating championed by Fisher and Ury from the Harvard Negotiation Project.
- Emphasizes developing win/win solutions while protecting yourself against those who would take advantages of your forthrightness.
- Is based on four key points.
• Separate the people from the problem
• Focus on interests, not positions
• Invent options for mutual gains
Advantages of a Long-Term Partnership
- Reduced administrative costs
- More efficient utilization of resources
- Improved communication
- Improved innovation
Managing Customer Expectations
- Avoid the temptation to oversell the virtues of a project to win approval.
- Lower customer expectations by underselling projects.
- Work closely with the client organization to develop a well-defined
project scope statement.
- Share significant risks or potential problems that might disrupt project
execution.
- Keep customers abreast of project progress.
- Handle customer interactions, unexpected problems and setbacks
with a competent and professional manner.
- Speak with one voice.
A Note on Managing Customer Relations
- Bad news travel faster and farther than good news.
- Project managers need to cultivate positive working relations with
clients to preserve their reputations.
- Customer satisfaction is a function of the extent to which perceived
performance (or outcome) exceeds expectations.
- The met-expectation model of customer satisfaction highlights the
point that whether a client is dissatisfied or delighted with a project is not based on hard facts and objective data but on Best Practices in Outsourcing Project Work
- Well-defined requirements and procedures
- Extensive training and team-building activities
- Well-established conflict management processes in place
- Frequent review and status updates
- Co-location when needed
If performance falls short of expectations (ratio < 1), the customer is dissatisfied.
- If the performance matches expectations
(ratio = 1), the customer is satisfied.
- If the performance exceeds expectations (ratio > 1), the customer is very satisfied or even delighted.
Contract Change Control System
- Defines the process by which the
contract may be modified.
- Includes
• the paperwork
• tracking systems
• dispute resolution procedures
• approval levels necessary for authorizing changes
Contract
- Is a formal agreement between two parties wherein one party
(the contractor) obligates itself to perform a service and the other party (the client) obligates itself to do something in return, usually in the form of a payment to the contractor.
- Is a codification of the private law, which governs the relationship between the parties to it.
- Defines the responsibilities.
- Spells out the conditions of its operations.
- Defines the rights the parties have in relationship to each other.
- Grants remedies to a party if the other party breaches its Procurement Management Process
- Planning purchases and acquisitions
- Planning contracting
- Requesting seller responses
- Selecting sellers
- Administering the contract
Fixed-Price Contracts
- The contractor agrees to perform all work specified in the contract at a
fixed price.
- Fixed-price contracts are preferred by both owners and contractors when the scope of the project is well defined with predictable costs and low implementation risks.
- The disadvantage of a fixed-price contract for owners is that it is more difficult and more costly to prepare.
- The primary disadvantages of a fixed-price contract for contractors is that they run the risk of underestimating.
- Contracts with long lead times such as construction and production projects may include escalation provisions that protect the contractor Cost-Plus Contracts
- The contractor is reimbursed for all direct allowable costs (materials, labor, travel) plus an additional fee to cover overhead and profit.
- Unlike fixed-price contracts, cost-plus contracts put the burden of risk on the client. The contract does not indicate
what the project is going to cost until the end of the project.
- The inherent weakness of cost-plus contracts has been compensated for by a variety of incentive clauses directed
at providing incentives to contractors to control costs, maintain performance, and avoid schedule overruns.
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