PROJECT MANAGEMENT

LECTURE MODULE-4

Topic : Project Environments

Project Environments
Project management varies depending on the project
environment, which may be classified as

- commercial/for profit,
- government/non-profit, and
- military.
Project Environments
Commercial/For Profit Project Management
In commercial projects, the end-term is a clearly defined
product or service, often customised to satisfy a customer
or an internal requirement, and motivated by profit-
oriented criteria.

The project manager usually guides the project through

its entire life cycle, coordinating efforts of the project
team with functional areas, sub-contractors, and vendors,
and keeping the customer and top management informed
of progress toward project and profit objectives.
Project Environments
Commercial/For Profit Project Management
Once the project has been completed, the project team is
dissolved and the project manager is out of job.

Thus, some project managers are continually working to

“perpetuate their existence” through preparing proposals
and seeking out new projects, which may surface as
extensions to existing projects or as upgrades to
applications from former projects.
Project Environments
Government/Non-profit Project Management
Government and non-profit projects differ from
commercial activities in several ways.
First, there is no profit incentive in government and non-
profit work, and economic factors may be lesser
importance in project management.
Project managers in these environments are frequently
reassigned during their projects, which is problematic for
administrative continuity.
Particularly for government work, project continuity
depends heavily upon political considerations because
funding is legislatively appropriated.
Project Environments
Government/Non-profit Project Management
Second, most of these projects focus on evaluation or
testing of products or services procured from commercial
vendors. Due to the fact that design and development
work in government projects is performed by contractors.
The project manager’s role is largely administrative.
Though project manager is responsible for checking on
the progress of contractors, the project manager has little
control over technical matters.
Project managers may oversee and coordinate multiple,
related projects within a larger system; in other words,
they are program managers.
Project Environments
Military Project Management
Similar to government projects, most military projects
involve testing and evaluating hardware developed by
contractors. Evaluation is often based on the “ weapons
system ” approach whereby each project is part of a
larger systems program and hardware is evaluated for its
contribution to the mission of the overall system.

The major criteria for evaluating projects are technical

and political; costs are of lesser importance and profit is
not a consideration.
Project Environments
Military Project Management
Project managers are military officers. Because of their
tour of duty is limited, officers typically do not oversee a
project for its full life cycle.

Thus the military must train, transfer, or promote people

with the administrative and technical competence to
carry on the job.
Project Environments
Military Project Management
Civilians are often employed to provide technical support
and managerial continuity.

This arrangement is a source of strife because civilians are

not subject to the same rotation of assignments and are
often paid more, despite their formal “subordinate
status” to military project managers.

Many organisations exist in multiple environments (such

as government/military and commercial) and utilise a
variety of management forms – project, program, matrix,
task force, and committee.
Project DETAIL.

PROJECT NAME (Location & Duration) MIN 5 LINES