PROJECT MANAGEMENT AR-505 ASSIGNMENT NUMBER - 03 SUBMITTED TO: Ar. Shriya Agrawal SUBMITTED BY: Md Fahad Iftekhar B. ARCH 5 th Year/9 th Sem. STUDIO 5-A Enrolment no. -190010175 SIGN AND REMARKS).1._ How does leadership style influence team dynamics and productivity in work groups? Provide examples of how a specific approach impacts motivation and communication, Leadership style can can influence team dynamics by setting the tone, expectations, leadership styles in project management include: Visionary. A! democratic, Coaching, Pacesetter, Directive, Coer fluence team dynamics and productivity in work groups. Leadership style nd direction for the team. Some filiative, Participative or ive, Authoritative. ‘Team dynamics ‘Team dynamics are the unconscious psychological influences that shape and direct a team's, behavior, rapport, and performance. Team dynamics can include: + How coworkers collaborate to complete projects and tasks + How they communicate with each other + What roles they each fulfill on the team Productivity in project management is determined by observing the relationship between final results and cost or time. Productivity can also be seen as the product of effectiveness and efficiency. Q.2. How does effective communication facilitate negotiation during organizational Effective communication is important in negotiation because it helps build trust and understanding, Italso helps parties reach mutually beneficial agreements. + Clearly articulating interests + Considering the other party's perspective + Exploring various options * Collaborating towards win-win solutions Effective communication can also facilitate organizational change. It can help employees: * Understand the vision and objectives of the change * Get involved in the change process + Feel more comfortable adopting new ways of working Effective communication is a critical component of successful change management initiatives, as it can significantly impact employee attitudes toward change and overall acceptance of new processes. Several studies have noted that many change initiatives fail due to a lack of effective internal communication. Resistance management is a process that involves taking steps to reduce resistance throughout a project's lifecycle, This can help individuals transition to the desired state of adoption and usage, Here are some strategies for overcoming resistanc Involve people: Bring people together, give them a chance to be involved, and let them voice their opinions.Communicate: Communicate clearly and frequently. Let people know the "why" behind the decision and the "what's in it for me" Provide support: Provide training and coaching. Establish user support services. Follow up with people as changes roll out. Build trust: Build trust and rapport. Engage senior leaders as active and visible sponsors of the change. Manage expectations: Manage emotions and expectations. Phase the change: If possible, phase the change. these objectives impact decision-making in capital budgeting and project appraisal? Financial objectives are goals that guide the finance department to make decisions and focus on relevant activities. They can be related to revenues, costs, and profits. Financial objectives typically focus on long-term success. Some functions of financial management include: + Financial planning and forecasting, + Fund investment + Determining the capital structure + Maintaining liquidity + Analyzing the financial status of the company or business from time to time + Disposal of surplus assets Some objectives of financi management include: + Attempting to reduce the cost of finance + Ensuring sufficient availability of funds + Dealing with the planning, organizing, and controlling of financial activities Capital budgeting involves choosing projects that add value to a company. The capital budgeting process can involve almost anything including acquiring land or purchasing fixed assets like a new truck or machinery. Companies use different metrics to track the performance of a potential project, and there are various methods to capital budgeting * Capital budgeting is the process by which investors determine the value of a potential investment project + The three most common approaches to project selection are payback period (PB), internal rate of retum (IRR), and net present value (NPV). + The payback period determines how long it would take a company to see enough in cash flows to recover the original investment. + The internal rate of return is the expected retum on a project—if the rate is higher than the cost of capital, it's a good project. + The net present value shows how profitable a project will be versus alternatives and is, perhaps the most effective of the three methods.Q.4. Compare sources of long-term and short-term finance for organizations. Highlight Short term financing usually refers to financing that spans a period of less than a year to one year. Since short term financing, involves a shorter repayment period, the interest rate to be paid on short term financing is lower. Types of short term financing, can include accounts payable, bank overdrafts, short term loans, short term leases, ete. Advantages of Short Term Loans Shorter time for incurring interest :~ As short term loans need to be paid off within about a year, there are lower total. interest payments. Quick funding time :- hese loans are considered le: because of a shorter maturity date. s risky compared to long term loans Easier to acquire :- Short term loans are the lifesavers of smaller businesses or individuals who suffer from less than stellar credit scores. Disadvantage of Short Term Loans The main disadvantage of short term loans is that they provide only smaller loan amounts. As the loans are returned or paid off sooner, they usually involve small amounts, so that the borrower won’t be burdened with large monthly payments. Long term financing refers to financing that spans a. longer period of time that could go up to about 3-30 years or more. Long term loans are riskier in nature, and banks or financial institutions providing the loan have more to lose since the amount borrowed is larger, and period of repayment is longer. Since long term financing is riskier and is for a longer time period, the interest charged on longer term financing will be higher. Advantages of Long Term Loans Stability: Long-term financing provides businesses with a more stable debt management instrument than short-term loans. Flexibility: There is a wide variety of long-term debt financing options available to borrowers, such as mortgages, leases, reverse mortgages, and loan refinancing, which can be fine-tuned to meet the borrower's needs. Linked to company’s productivity: Unlike short-term loans, which are used as a quick source of cash to tide over short-term liquidity problems, long-term debt financing is used for capital investments. Disadvantages of Long Term LoansHigher Interest Rates:~ The interest rates available for a long-term financing agreement are usually higher than the rates available for shorter-termed loans, Greater Interest Cost : The higher rates alone for a long-term loan mean that one will pay more over the life of the loan than one would for a short-term loan, and that is exacerbated by the length of time you'll be paying the higher interest rates. A shorter loan has less time for the interest to accrue. Debt-to-Income Ratio : Accessing credit involves a review of your total financial basket. Including the debt-to-income ratio, or the amount of outstanding debt one owes in relation to the amount he/she earns. Slow Growth of Equity : Long-term financing, such as a home mortgage, one repays the loan. scrues equity as Fixed Rate : Once a business is locked into to a long-term agreement, it may be hard to get out of it. If interest rate drop, the business may not be able to renegotiate depending on how the financing agreement was set up. Caution: It would not be wise for a business take on so much debt such that achieving monthly interest payments is a struggle. QS. Discuss the role of financial analysis in decision-making. Provide examples of how it supports strategic planning and identifies growth opportunities within organizations. Financial analysis aids in identifying strengths, weaknesses, and areas for improvement, enabling informed strategic decisions. It helps organizations evaluate investment opportunities, manage risks, and enhance financial planning and budgeting processes. Financial analysis is used to evaluate economic trends, set financial policy, build long-term plans for business activity, and identify projects or companies for investment. + Evaluate costs and benefits + Understand the overall health of an organization + Evaluate financial performance and business. value + Identify potential risks + Seek areas of risk Strategic planning can help organizations identify opportunities for performance improvement, A. strategic plan outlines a company's goals and direction. It also helps to create clearly defined goals for the organization's growth and success. Define mission and vision A mission statement defines the company's purpose and main objectives. A vision statement outlines the company's future direction.Goals A company creates a strategic plan to achieve goals. Strategic goals are broader than yearly objectives, but shorter than long-term goals. Develop a plan This step involves determining ta communicatin responsibilities. to achieve objectives, designating a timeline, and Monitor progress Plans should be adjusted based on reflection.