CHAPTER 1

GENERAL INTRODUCTION
1 INTRODUCTION
Projects have a major role to play in the economic development of a country. Since the
introduction of planning in our economy, we have been investing large amount of money in
projects related to industry, minerals, power, transportation, irrigation, education etc. with a view
to improve the socio-economic conditions of the people.
These projects are designed with the aim of efficient management, earning adequate return to
provide for future development with their own resources. But experience shows that there are
several shortcomings in the ultimate success of achieving the objectives of the proposed project.
1.1 CONCEPT OF PROJECT AND PROJECT MANAGEMENT
The term project has a wider meaning. A project is accomplished by performing a set of
activities. For example, construction of a house is a project. The construction of a house consists
of many activities like digging of foundation pits, construction of foundation, construction of
walls, construction of roof, fixing of doors and windows, fixing of sanitary fitting, wiring etc.
Another aspect of project is the non-routine nature of activities. Each project is unique in the
sense that the activities of a project are unique and non routine.
A project consumes resources. The resources required for completing a project are men, material,
money and time. Thus, we can define a project as an organized programme of pre determined
group of activities that are non-routine in nature and that must be completed using the available
resources within the given time limit.
Let us now consider some definitions of ‘project’. Newman et. al define that “a project typically
has a distinct mission that it is designed to achieve and a clear termination point the achievement
of the mission”.
Gillinger defines “project” as the whole complex of activities involved in using resources to gain
benefits. Project management institute, USA defined project as “a system involving the co-
ordination of a number of separate department entities throughout organization, in a way it must
be completed with prescribed schedules and time constraints”.

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According to the encyclopedia of management, “project is an organized unit dedicated to the
attainment of goal, the successful completion of a development project on time, within budget, in
conformance with predetermined programme specification.” Though project management is in
the process of getting evolved as a separate branch of study, projects are not new to the earth.
One of the seven wonders of the world, the pyramids date back to 2650 B.C. which stand as the
hall mark of Egyptian civilization. The period of construction of the Taj Mahal, another wonder
of the world is reported to be during 1626-1648 A.D. It is reported that about 20,000 persons
worked for nearly 22 years to complete this spectacular structure, which stands today as
mankind’s proudest creation. One can imagine the extent of resources and expertise that would
have been put forth for the completion of such magnificent projects.
Project management is an organised venture for managing projects, involves scientific
application of modern tools and techniques in planning, financing, implementing, monitoring,
controlling and coordinating unique activities or task produce desirable outputs in accordance
with the determined objectives with in the constraints of time and cost.
1.2 CHARACTERISTICS OF PROJECT
(1) Objectives : A project has a set of objectives or a mission. Once the objectives are achieved
the project is treated as completed.
(2) Life cycle : A project has a life cycle. The life cycle consists of five stages i.e. conception
stage, definition stage, planning & organising stage, implementation stage and commissioning
stage.
(3) Uniqueness : Every project is unique and no two projects are similar. Setting up a cement
plant and construction of a highway are two different projects having unique features.
(4) Team Work : Project is a team work and it normally consists of diverse areas. There will be
personnel specialized in their respective areas and co-ordination among the diverse areas calls
for team work.
(5) Complexity : A project is a complex set of activities relating to diverse areas.
(6) Risk and uncertainty : Risk and uncertainty go hand in hand with project. A risk-free, it
only means that the element is not apparently visible on the surface and it will be hidden
underneath.

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(7) Customer specific nature : A project is always customer specific. It is the customer who
decides upon the product to be produced or services to be offered and hence it is the
responsibility of any organization to go for projects/services that are suited to customer needs.
(8) Change : Changes occur through out the life span of a project as a natural outcome of many
environmental factors. The changes may very from minor changes, which may have very little
impact on the project, to major changes which may have a big impact or even may change the
very nature of the project.
(9) Optimality : A project is always aimed at optimum utilization of resources for the overall
development of the economy.
(10) Sub-contracting : A high level of work in a project is done through contractors. The more
the complexity of the project, the more will be the extent of contracting.
(11) Unity in diversity : A project is a complex set of thousands of varieties. The varieties are in
terms of technology, equipment and materials, machinery and people, work, culture and others.
PROJECT FAMILY TREE
A project normally originates from a plan, national plan or corporate plan. In normal scheme of
things, the family tree for a project would be as given below

Plan = National/Corporate plan with target for growth.

Programme = health programme, educational programme, R&D programme.

Project = Power plant, hospital, housing project etc.

Work Package = Water supply, power supply and distribution package.

Task = Award of water supply contract, construction & foundation.

Activity = Excavation, laying of cable, preparation of drawing.

Fig. 1.1 Project Family Tree

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 1.3 CLASSIFICATION OF PROJECTS
The location, type, technology, size, scope and speed are normally the factors which determine
the effort needed in executing a project. Project can be classified under different heads, some of
which are shown in figure 1.2.

TYPES OF PROJECTS

NATIONAL INTERNATIONAL

NON – INDUSTRIAL INDUSTRIAL

NON – CONVENTIONAL HIGH TECHNOLOGY CONVENTIONAL LOW TECHNOLOGY

R&D TECHNOLOGY

MEGA MAJOR MEDIUM MINI

GRASS EXPANSION DIVERSIFICATION MODIFICATION REPLACEMENT

NEW PROJECT

NORMAL CRASH DISASTER

FIGURE 1.2: Classification of the Project

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1.4 PROJECT CYCLE MEANING
A project cycle is a sequence of events, which a project follows. These events, stages or phases
can be divided into several equally valid ways, depending on the executing agency or parties
involved. A project crosses various stages that are often called “Project Cycle Phases”. It is the
life cycle though which a project advances from infancy to maturity. Some of the phases may
overlap.
Project planning proceeds from inception to an implementation. It crosses various stages
are often called “Project Cycle Phases”. It is the life cycle though which a project advances from
infancy to maturity.
World Bank Project Cycle
The World Bank suggested some stages in the project activities. These project cycles is divided
into the following stages.
1. Project identification
2. Project preparation
3. Project appraisal
4. Project implementation
5. Project Evaluation
1. Project Identification
Project identification is the initial stage of a project. Identification of promising investment
opportunities requires imagination, sensitivity to environmental changes, and a realistic
assessment of what the firm can do. It contributes towards achieving specified development
objectives. A project idea may originate from multiple sources. Many of the most important
projects in developing countries emerge from political commitments of national leaders, as
response to crises, emergencies of external threats or to foreign governments’ policies and
assistance agency priorities. Others are new experiments emerging from previous project
failures or from expansion and replication of successful projects tested locally or proven feasible
in other developing countries or from the discovery of critical economic and social bottlenecks of
shortages excess or idle resources and forward and backward linkages with existing projects.
The work of voluntary agencies, non-profit organizations and foundations in such fields as health
care, education, family planning, social services and housing has been a catalyst for new ideas.

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Developing nations are required to link informal processes with formal national planning
systems very closely. Generally, project ideas are born at two levels, the Micro-level and Macro
level. In project identification process two important activities are to be done. That are:
A. Preliminary Screening
Project planning is a process of elimination of inferior alternatives. Once some project ideas have
been put forward, the first step is to select one or more of them as potential viable. This calls for
a quick preliminary screening by experienced professionals who could also modify some of the
proposals. At this stage the analyst should eliminate proposals that:
 are technically unsound and risky;
 have no market for the output;
 have inadequate supply of inputs in relation to benefits;
 Assume over ambitious sales and profitability, etc.
B. Pre-Feasibility Study
Following the preliminary screening, promising options should be investigated in a systematic
manner to suggest which are to be eliminated. Sophisticated analysis of the technical, financial,
social and institutional aspects of the project is postponed to a later stage. However, the report
should indicate which of these aspects deserve particular attention during the subsequent step.
These reports are called pre-feasibility or pre-investment studies. To enable the relevant
authorities to decide on the merits of various project options, the studies should contain:
a) The structure and objective of the project
b) The nature and size of the demand of the output or the needs that it would satisfy.
c) Availability of materials and human inputs.
d) Basic alternative technologies available and their merits and drawbacks.
e) Approximate investment and operation costs.
f) Rough estimates of financial and economic returns.
g) Any major factor that is likely to have an impact on the project and
h) What further information on the technical, financial, economic or institutional aspects
of the project should be acquired through special studies and surveys?
2. Project Preparation (Feasibility Studies)

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Pre-feasibility study indicates that the project, prima facie, promising and further work is
justified, the project enters the next stage for more and sophisticated analysis supported by
accurate information in the study all aspects, technical and non technical, should receive the
attention to serve without postponing any consideration to a later stage. Project preparation
necessitates a teamwork approach with professionals investigating different aspects of the
project, working closely. They should exchange views and check their conclusions under the
coordination of an expert working as team leader. Time spent on project preparation is not lost
time. There is trade off between project preparation and implementation. The better a project is
prepared, the easier and faster its implementation and lowers the probability of cost over runs.
Where a project is to be financed by multilateral or bilateral aid agencies, their specific
requirements and standards of project preparation should be taken in to account.
There are no basic economic choices to be made in project analysis. The economic dimension of
the project is reflected in its basic objectives and it is the responsibility of authorities to make
such choices. There are two key areas where the analysts have choices to be made, the
technological area and institutional area. Some economic aspects relating to employment and
income distribution may be placed under these areas if they are not included in the basic
objectives. The feasibility study should give due consideration to the strong interrelation linkages
to ensure mutual support between the technical and institutional components in achieving the
objectives of the project.
a) Technological Choices
In the technological sphere the choices to be made through comparative consideration of
alternatives, vary from project to project. It is the function of professionals to scrutinize the
merits of each alternative. Certain technical aspects that seek alternatives considerations may be:
a) Building a new plant or facilities as against improving the capability of existing ones.
b) Indigenous against imported technologies, labor intensive against capital intensive one
and technologies with high initial costs but low maintenance requirements against those
with low initial costs but high maintenance needs and
c) Possibility of implementing the project in stages and the merits of one big plant in the
center versus a number of smaller regional ones.
b) Institutional Choices

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 Professionals may consider many institutional aspects where alternative are feasible like:
a) Consider the merits of establishing a new agency to implement and operate the projects
as against using an existing one.
b) Comparative advantages of various degrees of centralization and decentralization of
functions and decision-making.
c) Evaluate alternative types of owner ship and control such as public, private, co-
operative, joint venture, domestic, foreign etc. and
d) Compare alternatives in the supply of inputs (e.g. estate farming vs. out growers) and the
supply chain of out put.
3. Project Appraisal and Investment Decision
Appraisal is the comprehensive and systematic assessment of all aspects of the proposed project.
The appraisers are usually the central economic authorities responsible for rafting the overall
development strategy and entrusted with major decisions on matters relating to this strategy. The
project is reviewed to confirm that it accords with the broad development objectives and fits into
the development process of the country. The project is viewed from different perspectives;
technical, commercial, financial, economic, managerial and organizational. It is to ensure that
the project represents a high priority use of country’s resources and in combination with other
policies, contributes the maximum possible towards achieving national development objectives.
4. Project Implementation, Supervision and Follow Up
It is the stage the conclusions reached and decisions made are put into action. Detailed designs
and specifications should be drawn, tender documents to be prepared, bids should be invited and
evaluated, orders for inputs have to be placed, contract to be signed, workers to be hired and put
to work, materials to be moved to site, etc. It is not well-prepared and evaluated but studiously
executed projects that deliver the envisaged benefits. The project planning and execution require
high level of managerial skills and adequate administrative capacities, with many developing
countries have proved to be lacking. Many nations are not so expert at implementation as they
are at planning. Any plan is only as good as it achieves. Some implementation problems are
changes in the economic and political situation of the nation or the world market while others
project specific.

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The execution of the project should be supervised closely and progress should be reported
regularly to ensure that the implementation is progressing without deviating from the envisaged
path. The follow up exercise or ex-post evaluation is considered as continuation of supervision to
assess whether the objectives of the project have been reached.

5. Project Evaluation
The final phase of the project is the evaluation phase. Many usually neglect this stage. The
project analyst looks carefully at the successes and failures in the project experience to learn how
better to plan for the future. In this stage it is important to examine the project plan and what
really happened. Performance review should be done periodically to compare actual performance
with projected performance. A feedback device, it is useful in several ways:
I. It throws light on how realistic were the assumptions underlying the project;
II. It provides a documented log of experience that is highly valuable in future decision
making;
III. It suggests corrective action to be taken in the light of actual performance;
IV. It helps in uncovering judgment biases;
V. It induces a desired caution among project sponsors.
Weakness and strengths should carefully be noted so as to serve as important lessons for future
project analysis undertaking. Evaluation is not limited only to completed projects. Ongoing
projects could also be evaluated to rectify problems when the project is in trouble. The project
management, the sponsoring agency, or other bodies may do the evaluation.
UNIDO Project Cycle
According to UNIDO a project’s cycle can be divided into the following phases:
1. Pre-Investment Phase
 Project Identification (Opportunity Study)
 Pre-Selection (Pre-feasibility Study)
 Preparation (Feasibility Study)
 Appraisal (Appraisal Report)
2. Investment Phase (Implementation)
3. Operational Phase

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1. Pre-Investment Phase
A) Project Identification / Opportunity Studies
Identification of investment potentials in developing countries generates interesting data
required to develop project idea into a project proposal (opportunity study), which should
consider analyzing the following:
1) Availability of natural resources
2) Existing agricultural pattern
3) Future demand for goods, increasing population, purchasing power.
4) Imports and import substitutions
5) Environmental impact
6) Functioning of similar project in other countries.
7) Possible inters linkage with other industries.
8) Extension by backward and forward linkages
9) Industrial policies of the local government
10) General investment climate in the economy
11) Possible for diversification
12) Expansion of an existing line to have large-scale economies
13) Export potentials and
14) Availability and cost of production factors.
The general opportunity studies can be categorized as, area studies, industry studies and
resource based studies.
B) Pre-Feasibility Studies / Pre Selection
To analyze that:
1. All possible project alternatives examined
2. The project concept justifies detailed analysis
3. A critical area necessitates in-depth investigation.
4. Project idea is either attractive for investment or non-viable.
5. The environment situation at the site is in line with national standards.
Support functional studies to cover specific areas such as;
1. Marketing

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 2. Raw material and factory supplies
3. Laboratory and pilot plan testing
4. Location
5. Environmental impact assessment
6. Economies of scale and
7. Equipment selection
C) Feasibility Study / Preparation
Feasibility study should provide all data, define and critically examine the commercial,
technical, financial, economic and environmental aspects for each alternative. The data should
be based on investigate efforts rather than on guesstimated.
A window dressing approach should be avoided. The supporting data should fulfill the
minimum reliability standard.
D) Appraisal Report / Appraisal
When a feasible study is completed the various parties involved in the project will carry out
their own appraisal of the investment project in accordance with their individual objectives and
evaluation of expected a risks, costs and gains. Large investment and development finance
institutions have formalized project appraisal procedures and usually prepare an appraisal
report.
The appraisal report will prove whether these pre-production expenditures were well spent.
Project appraisal as carried out by financial institutions concentrates on the health of the
company to be financed, the returns obtained by equity holders and the protection of its
creditors.
Appraisal reports as a rule deal not only with the project but also with the industries in which it
will be carried out and its implications for the economy as a whole. Thus, if a car
manufacturing plant is to be apprised the report will also review the relationship of the plant to
its feeder industry, the transport sector, the availability of highways and the energy supply. For
large scale projects, appraisal reports will require field missions to verify the data collected and
to review all those factors of a project that are conditioned by its business environment,
location and markets and availability of resources.
2. Investment Phase:

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The investment or implementation phase of a project provides wide scope for consultancy and
engineering work, first and frameset in the field of project management. The investment phase
can be divided into the following stages:
 Establishing the legal, financial and organizational basis for the implementation of
the Project.
 Technology acquisition and transfer, including basic engineering
 Detailed engineering design and contracting, including tendering evaluation of bids
and negotiations.
 Acquisition of land, construction work and installation.
 Pre-production marketing, including the securing of supplies and setting up the
administration of the firm.
 Recruitment and training of personnel.
 Plant commissioning and start-up.
3. Operating Phase:
The problems of the operational phase need to be considered from both a short and a long-term
viewpoint. The short-term view relates to initial period after commencement of production when
a number of problems may arise concerning such matters as the application when a number of
problems may arise concerning such matters as the application of production techniques,
operation of equipment or inadequate labor productivity owing to a lack of qualified staff and
labor. Most of these problems have their origin in the implementation phase. The long-term view
relates to chosen strategies and the associated production and marketing costs as well as sales
revenues. These have a direct relationship with the projections made at the pre-investment phase.
If such strategies and projections prove faculty, any remedial measures will not only be difficult
but may prove highly expensive.
1.5 THE PROJECT MANAGER’S ROLES & RESPONSIBILITIES
As things stand today, non of the present generation project manager, including the very
successful ones, come from any of our management schools. They were just given the job-some
succeeded and others did not. Those who succeeded are not many, because only a handful of
projects in India were ever completed on time, within budget and performed to expectations.
While the failures of these projects had been analysed in many seminars and workshops, the role

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of project managers and their development did not form the subject of any serious discussion.
There could be two reasons for this: (a) Perhaps no one thinks that success or failure of a project
depends on the project manager; and (b) It may also be that no one considers them as a special
breed of managers. Surprisingly, even some of the practising project managers themselves
subscribe to these views. The basic roles and responsibilities of a project manager that we are
referring to could be grouped under twelve heads :
1 Defining and maintaining the integrity of a project;
2 Development of project execution plan;
3 Organization for execution of the plan;
4 Setting of targets and development of systems and procedures for accomplishment of project
objectives and targets;
5 Negotiation for commitments;
6 Direction, coordination and control of project activities;
7 Contract management;
8 Non-human resource management including fiscal matters;
9 Problem-solving;
10 Man management;
11 Satisfaction of customer, Government and the public; and
12 Achievement of project objectives, cash surplus and higher productivity.

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Projects and Plans

Goals/ Objectives

Strategies

Plans

Program3

Project 3

Objectives
Objectives can be defined as specific results that an organization seeks to achieve in
pursuing its basic mission.
Long-term objectives represent the results expected from pursuing certain strategies.
Strategies represent the actions to be taken to accomplish long-term objectives. The time frame
for objectives and strategies should be consistent, usually from two to five years.
Objectives are essential for organizational success because they state direction; aid in
evaluation; create synergy; reveal priorities; focus coordination; and provide a basis for effective
planning, organizing, motivating and controlling activities. Objectives should be challenging,
measurable, consistent, reasonable, and clear. In a multidimensional firm, objectives should be
established for the overall company and for each division.
The Nature of Long-Term Objectives
Objectives should be quantitative, measurable, realistic, understandable, challenging,
hierarchical, obtainable, and congruent among organizational units. Each objective should also
be associated with a time line. Objectives are commonly stated in terms such as growth in assets,
growth in sales, profitability, market share, degree and nature of diversification, degree and
nature of vertical integration, earnings per share, and social responsibility. Clearly established
objectives offer many benefits. They provide direction, allow synergy, aid in evaluation,

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establish priorities, reduce uncertainty, minimize conflicts, stimulate exertion, and aid in both the
allocation of resources and the design of jobs.
Long-term objectives are needed at the corporate, divisional, and functional levels in an
organization. They are an important measure of managerial performance.
Clearly stated and communicated objectives are vital to success for many reasons. First,
objectives help stakeholders understand their role in an organization's future. They also provide a
basis for consistent decision making by managers whose values and attitudes differ. By reaching
a consensus on objectives during strategy-formulation activities, an organization can minimize
potential conflicts later during implementation. Objectives set forth organizational priorities and
stimulate exertion and accomplishment.
They serve as standards by which individuals, groups, departments, divisions, and entire
organizations can be evaluated. Objectives provide the basis for designing jobs and organizing
activities to be performed in an organization. They also provide direction and allow for
organizational synergy.
Without long-term objectives, an organization would drift aimlessly toward some
unknown end! It is hard to imagine an organization or individual being successful without clear
objectives. Success only rarely occurs by accident; rather, it is the result of hard work directed
toward achieving certain objectives.
The Nature of organizational Goals
The use of goals has several benefits.
1. Performance can be improved.
2. Expectations can be improved.
3. The Controlling function can be facilitated so that progress can be assessed and
corrective action taken.
4. Meeting goals can increase motivation.
The three levels of goals within an organization form a hierarchy of goals, with lower-level goals
forming a mean-end chain with the next level of goals.
1. Strategic goals are broadly defined targets or future end results set by top management.
2. Tactical goals are the targets or future end results usually set by middle management for
specific departments or units.

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3. Operational goals are those targets or future end results set by lower management that
address specific, measurable outcomes required from the lower levels.
Strategies
Strategies are the means by which long-term objectives will be achieved. Business
strategies may include the following:
 Geographic expansion,
 Diversification,
 Acquisition,
 Product development,
 Market penetration,
 Retrenchment,
 Liquidation, and
 Joint venture.
Strategies are potential actions that require top management decisions and large amounts of the
firm's resources. In addition, strategies affect an organization's long-term prosperity, typically for
at least five years, and thus are future-oriented. Strategies have multifunctional or multidivisional
consequences and require consideration of both external and internal factors facing the firm.
PLAN
Planning involves defining the organization’s goals, establishing an overall strategy for
achieving these goals, and developing a comprehensive set of plans to integrate and coordinate
organizational work. The term planning as used in this chapter refers to formal planning. The
quality of the planning process and appropriate implementation probably contribute more to high
performance than does the extent of planning.
WHY DO MANAGERS PLAN?
Planning is important and serves many significant purposes.
1. Planning gives direction to the organization.
2. Planning reduces the impact of change.
3. Planning establishes a coordinated effort.
4. Planning reduces uncertainty.
5. Planning reduces overlapping and wasteful activities.

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6. Planning establishes objectives or standards that are used in controlling.
HOW DO MANAGERS PLAN?
Planning is often called the primary management function because it establishes the basis for all
other functions. Planning involves two important elements: goals and plans.
The Role of Goals and Plans in Planning
1. Goals—desired outcomes for individuals, groups, or entire organizations.
2. Goals are objectives—the two terms are used interchangeably.
3. Types of goals.
a. Financial performance versus strategic goals
b. Stated versus Real.
1) Stated goals are official statements of what an organization says, and what it wants its various
stakeholders to believe, its goals are.
2) Real goals are those that an organization actually purses.
Differentiate between goals and plans.
Goals are desired outcomes for individuals, groups, or entire organizations. Plans are documents
that outline how goals are going to be met and that typically describe resource allocations,
schedules, and other necessary actions to accomplish the goals.
What are the different types of goals?
Organizations may utilize financial and/or strategic goals, stated and/or real goals.
Describe each of the different types of plans.
Strategic plans apply to the entire organization, establish the organization’s overall goals, and
seek to position the organization in terms of its environment.
Operational plans specify the details of how the overall goals are to be achieved.
Long-term plans are plans with a time frame beyond three years.
Short term plans cover one year or less. Specific plans are clearly defined and leave no room for
interpretation.
Directional plans are flexible plans that set out general guidelines. Single-use plans are one-time
plans specifically designed to meet the needs of a unique situation. Standing plans are ongoing
plans that provide guidance for activities performed repeatedly and include policies, rules, and
procedures.

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Linkage of goals and plans.
Goal and plans are closely related in that plans specify the means to achieving the goals.
A. Plans, like goals, enter into a hierarchy of levels and priority.
1. Strategic plans are detailed action steps mapped out to reach strategic goals.
a. Strategic plans are organizational wide and are developed by top management.
b. The time horizon tends to be long 3 to 5 years or more.
2. Tactical plans are the means charted to support implementation of the strategic plan and
achievement of tactical goals.
a. Tactical plans tend to be more specific and concrete than strategic plans.
b. Tactical plans are important to the success of strategic plans.
c. The time horizon tends to be intermediate in range 1 to 3 years.
3. Operational plans are the means devised to support implementation of tactical plans and
achievement of operational goals.
a. Operational plans spell out specifically what must be accomplished to achieve operational
goals.
The time horizon is relatively short-tem—usually less than 1 year as a maximum.
b. Plans can be categorized according to the extent to which they will be used on a recurring
basis.
1. Single-use plans are plans aimed at achieving a specific goal that, once reached, will most
likely not recur in the future.
a. A program is a comprehensive plan that coordinates a complex set of activities related to a
major non-recurring goal.
b. A project is a plan that coordinates a set of limited-scope activities that do not need to be
divided into several major projects in order to reach a major non-recurring goal. Programs are
broader than projects.
2. Standing plans are plans that provide ongoing guidance for performing recurring activities.
a. A policy is a general guide that specifies the broad parameters within which organization
members are expected to operate in pursuit of organizational goals.
b. A procedure is a prescribed series of related steps to be taken under certain recurring
circumstances.

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1) Procedures are detained and inflexible; policies are general.
2) Well established and formalized procedures are often called standard operating procedures
(SOPs).
C. Different levels of goals and plans are related to different time horizons.
Strategic plans typically involve time periods of 5 years or more, but the time frame is dependent
upon the stability of the industry in question.
1. Tactical goals and plans typically involve time periods of 1 to 5 years.
2. Operational goals and plans can be for as short a period as 1 week or as long as 1 year.
The three levels of goals within an organization form a hierarchy of goals, with lower-level goals
forming a mean-end chain with the next level of goals.
4. Strategic goals are broadly defined targets or future end results set by top management.
5. Tactical goals are the targets or future end results usually set by middle management for
specific departments or units.
6. Operational goals are those targets or future end results set by lower management that
address specific, measurable outcomes required from the lower levels.
How Goals Facilitate Performance
The content of goals should meet five criteria.
1. Challenging goals usually lead to higher performance from individuals and groups.
2. Attainable goals, not impossible demands, are more likely to improve performance.
3. Specific and measurable goals are needed so that it is clear when they have been achieved.
4. Time-limited goals give them meaning.
5. Relevant goals enable employees to see the purpose of the goals and to devise ways of
meeting them.
6. Measurable means the performance and targets can be measured after an interval of time.

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Project Management
Project management is the task of getting a project’s activities done on time, within budget, and
according to specifications.
Project Management Process
There are seven steps in the project planning process.
a. Define objectives.
b. Identify activities and resources.
c. Establish sequences.
d. Estimate time for activities.
e. Determine project completion date.
f. Compare with objectives.
g. Determine additional human resource requirements.

Dr. G.VIJAYA KRISHNA ODA BULTUMUNIVERSITY Page 20