Q 1 Elaborate the nine project management knowledge areas and the five

process groups discussed in PMBOK guide.

Solution
1 Project Integration Management
Project Integration Management includes the processes required to ensure that
the various elements of the project are properly coordinated. It involves making
tradeoffs among competing objectives and alternatives to meet or exceed stake-
holder needs and expectations.
The following major processes are conducted Project Integration Management
1.1 Project Plan Development—integrating and coordinating all project plans to
create a consistent, coherent document.
1.2 Project Plan Execution—carrying out the project plan by performing the activities included
therein.
1.3 Integrated Change Control—coordinating changes across the entire project.
These processes interact with each other and with the processes in the other
knowledge areas as well. Each process may involve effort from one or more individuals or
groups of individuals, based on the needs of the project. Each process
generally occurs at least once in every project phase.
PROJECT PLAN DEVELOPMENT
Project plan development uses the outputs of the other planning processes, including strategic
planning, to create a consistent, coherent document that can be used to guide both project
execution and project control. This process is almost always iterated several times. The project
scope of work is an iterative process that is generally done by the project team with the use of a
Work Breakdown Structure (WBS), allowing the team to capture and then decompose all of the
work of the project.
The project plan is used to:
 Guide project execution.
 Document project planning assumptions.
 Document project planning decisions regarding alternatives chosen.
 Facilitate communication among stakeholders.
 Define key management reviews as to content, extent, and timing.
 Provide a baseline for progress measurement and project control.

PROJECT PLAN EXECUTION

Project plan execution is the primary process for carrying out the project plan the vast majority
of the project’s budget will be expended in performing this process. In this process, the project
manager and the project management team must coordinate and direct the various technical and
organizational interfaces that exist in the project. It is the project process that is most directly
affected by the project application area in that the product of the project is actually created
here.
INTEGRATED CHANGE CONTROL
Integrated change control is concerned with
a) Influencing the factors that create changes to ensure that changes are agreed upon,
b) Determining that a change has occurred, and
 c) Managing the actual changes when and as they occur.
The original defined project scope and the integrated performance baseline must be maintained
by continuously managing changes to the baseline, either by rejecting new changes or by
approving changes and incorporating them into a revised project baseline

2 Project Scope Management

Project Scope Management includes the processes required to ensure that the project includes all
the work required, and only the work required, to complete the project successfully (1). It is
primarily concerned with defining and control-ling what is or is not included in the project. the
major project scope management processes are :
2.1 Initiation—authorizing the project or phase.
2.2 Scope Planning—developing a written scope statement as the basis for future
project decisions.
2.3 Scope Definition—subdividing the major project deliverables into smaller, more
manageable components.
2.4 Scope Verification—formalizing acceptance of the project scope.
2.5 Scope Change Control—controlling changes to project scope
INITIATION
Initiation is the process of formally authorizing a new project or that an existing project should
continue into its next phase. This formal initiation links the project to the ongoing work of the
performing organization. In some organizations, a project is not formally initiated until after
completion of a needs assessment, a feasibility study, a preliminary plan, or some other
equivalent form of analysis that was itself separately initiated.
SCOPEPLANNING
Scope planning is the process of progressively elaborating and documenting the project work
(project scope) that produces the product of the project. Project scope planning starts with the
initial inputs of product description, the
Project charter, the initial definition of constraints and assumptions.
The scope statement forms the basis for an agreement between the project and the project
customer by identifying both the project objectives and the project deliverables.
SCOPE DEFINITION
Scope definition involves subdividing the major project deliverables into smaller, more
manageable components to:-
 Improve the accuracy of cost, duration, and resource estimates.
 Define a baseline for performance measurement and control.
 Facilitate clear responsibility assignments.
SCOPE VERIFICATION
Scope verification is the process of obtaining formal acceptance of the project scope by the
stakeholders (sponsor, client, customer, etc.). It requires reviewing deliverables and work results
to ensure that all were completed correctly and satisfactorily. If the project is terminated early,
the scope verification process should establish and document the level and extent of completion.
Scope verification differs from quality control in that it is primarily concerned with acceptance
of the work results while quality control is primarily concerned with the correctness of the work
results.
SCOPE CHANGE CONTROL
Scope change control is concerned with
a) Influencing the factors that create
scope changes to ensure that changes are agreed upon,
b) Determining that a
scope change has occurred, and
c) Managing the actual changes when and if they occur. Scope change control must be
thoroughly integrated with
The other control processes (schedule control, cost control, quality control, and others,)
3 Project Time Management
Project Time Management includes the processes required to ensure timely completion of the
project. The following major processes in developing the project time schedule:
3.1 Activity Definition—identifying the specific activities that must be performed to
produce the various project deliverables.
3.2 Activity Sequencing—identifying and documenting interactivity dependencies.
3.3 Activity Duration Estimating—estimating the number of work periods that will
be needed to complete individual activities.
3.4 Schedule Development—analyzing activity sequences, activity durations, and resource
requirements to create the project schedule.
3.5 Schedule Control—controlling changes to the project schedule
ACTIVITY DEFINITION
Activity definition involves identifying and documenting the specific activities that must be
performed to produce the deliverables and sub deliverables identified in the Work Breakdown
Structure (WBS). Implicit in this process is the need to define the activities such that the project
objectives will be met.
ACTIVITY SEQUENCING
Activity sequencing involves identifying and documenting interactivity logical relationships.
Activities must be sequenced accurately to support later development of a realistic and
achievable schedule. Sequencing can be performed with the aid of a computer. or with manual
techniques. Manual techniques are often more effective on smaller projects and in the early
phases of larger ones when little detail is available. Manual and automated techniques may also
be used in combination.
ACTIVITY DURATION ESTIMATING
Activity duration estimating is the process of taking information on project scope and resources
and then developing durations for input to schedules. The inputs for the estimates of duration
typically originate from the person or group on the project team who is most familiar with the
nature of a specific activity. The estimate is often progressively elaborated, and the process
considers the quality and availability of the input data. Thus, the estimate can be assumed to be
progressively more accurate and of known quality.

SCHEDULE CONTROL
Schedule control is concerned with
a) Influencing the factors that create schedule changes to ensure that changes are agreed upon,
b) Determining that the schedule has changed, and
c) Managing the actual changes when and as they occur. Schedule control must be thoroughly
integrated with the other control processes
4 Project Cost Management
Project Cost Management includes the processes required to ensure that the project is completed
within the approved budget
The following major processes:
4.1 Resource Planning—determining what resources (people, equipment, materials) and what
quantities of each should be used to perform project activities.
4.2 Cost Estimating—developing an approximation (estimate) of the costs of the resources
needed to complete project activities.
4.3 Cost Budgeting—allocating the overall cost estimate to individual work activities.
4.4 Cost Control—controlling changes to the project budget
RESOURCE PLANNING
Resource planning involves determining what physical resources (people, equipment, materials)
and what quantities of each should be used and when they would be needed to perform project
activities. It must be closely coordinated with cost estimating
COST ESTIMATING
Cost estimating involves developing an approximation (estimate) of the costs of the resources
needed to complete project activities. In approximating cost, the estimator considers the causes
of variation of the final estimate for purposes of better managing the project
COST BUDGETING
Cost budgeting involves allocating the overall cost estimates to individual activities or work
packages to establish a cost baseline for measuring project performance. Reality may dictate that
estimates are done after budgetary approval is provided, but estimates should be done prior to
budget request wherever possible.
COST CONTROL
Cost control is concerned with a) influencing the factors that create changes to
the cost baseline to ensure that changes are agreed upon, b) determining that the
cost baseline has changed, and c) managing the actual changes when and as they
occur. Cost control includes
 Monitoring cost performance to detect and understand variances from plan.
 Ensuring that all appropriate changes are recorded accurately in the cost baseline.
 Preventing incorrect, inappropriate, or unauthorized changes from being included in the
cost baseline.
 Informing appropriate stakeholders of authorized changes.

5 Project Quality Management

Project Quality Management includes the processes required to ensure that the project will
satisfy the needs for which it was undertaken. It includes “all activities of the overall
management function that determine the quality policy, objectives, and responsibilities and
implements them by means such as quality planning, quality assurance, quality control, and
quality improvement, within the quality system” the following major project quality management
processes:
5.1 Quality Planning—identifying which quality standards are relevant to the project and
determining how to satisfy them.
5.2 Quality Assurance—evaluating overall project performance on a regular basis to provide
confidence that the project will satisfy the relevant quality standards.
5.3 Quality Control—monitoring specific project result.
QUALITY PLANNING
Quality planning involves identifying which quality standards are relevant to the project and
determining how to satisfy them. It is one of the key facilitating processes during project
planning and should be performed regularly and in parallel with the other project planning
processes
QUALITY ASSURANCE
Quality assurance is all the planned and systematic activities implemented within the quality
system to provide confidence that the project will satisfy the relevant quality standard. The
activities described under quality planning were widely included as part of quality assurance.
Quality assurance is often provided by a Quality Assurance Department or similarly titled
organizational unit, but it does not have to be.
QUALITY CONTROL
Quality control involves monitoring specific project results to determine if they comply with
relevant quality standards, and identifying ways to eliminate causes of unsatisfactory results. It
should be performed throughout the project.
The project management team should have a working knowledge of statistical quality control,
especially sampling and probability, to help it evaluate quality control outputs.

6 Project Human Resource Management

Project Human Resource Management includes the processes required to make the most
effective use of the people involved with the project. It includes all the project stakeholders’
sponsors, customers, partners, individual contributors, and others the following major processes
6.1 Organizational Planning—identifying, documenting, and assigning project roles,
responsibilities, and reporting relationships.
6.2 Staff Acquisition—getting the human resources needed assigned to and working on the
project.
6.3 Team Development—developing individual and group competencies to enhance project
performance
There is a substantial body of literature about dealing with people in an operational, ongoing
context
Some of the many topics include:
 Leading, communicating, negotiating, and others Key General Management Skills.
 Delegating, motivating, coaching, mentoring, and other subjects related to dealing with
individuals.
 Team building, dealing with conflict, and other subjects related to dealing with groups.
 Performance appraisal, recruitment, retention, labor relations, health and safety
regulations, and other
 Subjects related to administering the human resource function.
ORGANIZATIONAL PLANNING
Organizational planning involves identifying, documenting, and assigning project roles,
responsibilities, and reporting relationships. Roles, responsibilities, and reporting relationships
may be assigned to individuals or to groups. The individuals and groups may be part of the
organization performing the project, or they may be external to it. Internal groups are often
associated with a specific functional department such as engineering, marketing, or accounting.
On most projects, the majority of organizational planning is done as part of the earliest project
phases. However, the results of this process should be reviewed regularly throughout the project
to ensure continued applicability. If the initial organization is no longer effective, then it should
be revised promptly.
STAFF ACQUISITION
Staff acquisition involves getting the needed human resources (individuals or groups) assigned to
and working on the project. In most environments, the “best” resources may not be available, and
the project management team must take care to ensure that the resources that are available will
meet project requirements.
TEAM DEVELOPMENT
Team development includes both enhancing the ability of stakeholders to contribute as
individuals as well as enhancing the ability of the team to function as a team. Individual
development (managerial and technical) is the foundation necessary to develop the team.
Development as a team is critical to the project’s ability to meet its objectives. Team
development on a project is often complicated when individual team
members are accountable to both a functional manager and the project manager. Effective
management of this dual reporting relationship is often a critical success factor
for the project, and is generally the responsibility of the project manager.

7 Project Communications Management

Project Communications Management includes the processes required to ensure timely and
appropriate generation, collection, dissemination, storage, and ultimate disposition of project
information. It provides the critical links among people, ideas, and information that are necessary
for success. Everyone involved in the project must be prepared to send and receive
communications, and must understand how the communications in which they are involved as
individuals affect the project as a whole the following major processes:
7.1 Communications Planning—determining the information and communications needs of the
stakeholders: who needs what information, when they will need it, and how it will be given to
them.
7.2 Information Distribution—making needed information available to project stakeholders in a
timely manner.
7.3 Performance Reporting—collecting and disseminating performance information. This
includes status reporting, progress measurement, and forecasting.
7.4 Administrative Closure—generating, gathering, and disseminating information to formalize a
phase or project completion.
The general management skill of communicating is related to, but not the same as, project
communications management. Communicating is a broader subject and involves a substantial
body of knowledge that is not unique to the project context. For example:
Sender-receiver models—feedback loops, barriers to communications, etc. Choice of media—
when to communicate in writing versus when to communicate orally, when to write an informal
memo versus when to write a formal report, etc.

COMMUNICATIONS PLANNING
Communications planning involves determining the information and communications needs of
the stakeholders: who needs what information, when they will need it, how it will be given to
them, and by whom. While all projects share the need to communicate project information, the
informational needs and the methods of distribution vary widely.
Identifying the informational needs of the stakeholders and determining a suitable means of
meeting those needs is an important factor for project success. On most projects, the majority of
communications planning is done as part of the earliest project phases. However, the results of
this process should be reviewed regularly throughout the project and revised as needed to ensure
continued applicability.
INFORMATION DISTRIBUTION
Information distribution involves making needed information available to project stakeholders in
a timely manner. It includes implementing the communications management plan, as well as
responding to unexpected requests for information.
PERFORMANCE REPORTING
Performance reporting involves collecting and disseminating performance information to provide
stakeholders with information about how resources are being used to achieve project objectives.
This process includes:
Status reporting—describing where the project now stands—for example, status related to
schedule and budget metrics.
Progress reporting—describing what the project team has accomplished—for example, percent
complete to schedule, or what is completed versus what is in process.
Forecasting—predicting future project status and progress. Performance reporting should
generally provide information on scope, schedule, cost, and quality. Many projects also require
information on risk and procurement. Reports may be prepared comprehensively or on an
exception basis.
ADMINISTRATIVE CLOSURE
The project or phase, after either achieving its objectives or being terminated for other reasons,
requires closure. Administrative closure consists of documenting project results to formalize
acceptance of the product of the project by the sponsor, or customer. It includes collecting
project records; ensuring that they reflect final specifications; analyzing project success,
effectiveness, and lessons learned; and archiving such information for future use. Administrative
closure activities should not be delayed until project completion. Each phase of the project
should be properly closed to ensure that important and useful information is not lost. In addition,
employee skills in the staff pool database should be updated to reflect new skills and proficiency
increases.

8 Project Risk Management

Risk management is the systematic process of identifying, analyzing, and responding to project
risk. It includes maximizing the probability and consequences of positive events and minimizing
the probability and consequences of adverse events to project objectives.
8.1 Risk Management Planning—deciding how to approach and plan the risk management
activities for a project.
8.2 Risk Identification—determining which risks might affect the project and documenting their
characteristics.
8.3 Qualitative Risk Analysis—performing a qualitative analysis of risks and conditions to
prioritize their effects on project objectives.
8.4 Quantitative Risk Analysis—measuring the probability and consequences of risks and
estimating their implications for project objectives.
8.5 Risk Response Planning—developing procedures and techniques to enhance opportunities
and reduce threats to the project’s objectives.
8.6 Risk Monitoring and Control—monitoring residual risks, identifying new risks, executing
risk reduction plans, and evaluating their effectiveness throughout the project life cycle.
Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect
on a project objective. A risk has a cause and, if it occurs, a consequence. For example, a cause
may be requiring a permit or having limited personnel assigned to the project. The risk event is
that the permit may take longer than planned, or the personnel may not be adequate for the task.
If either of these uncertain events occurs, there will be a consequence on the project cost,
schedule, or quality. Risk conditions could include aspects of the project environment that may
contribute to project risk such as poor project management practices, or dependency on external
participants that cannot be controlled.
RISK MANAGEMENT PLANNING
Risk management planning is the process of deciding how to approach and plan the risk
management activities for a project. It is important to plan for the risk management processes
that follow to ensure that the level, type, and visibility of risk management are commensurate
with both the risk and importance of the project to the organization.
RISK IDENTIFICATION
Risk identification involves determining which risks might affect the project and documenting
their characteristics.
Participants in risk identification generally include the following, as possible: project team, risk
management team, subject matter experts from other parts of the company, customers, end users,
other project managers, stakeholders, and outside experts. Risk identification is an iterative
process. The first iteration may be performed by a part of the project team, or by the risk
management team. The entire project team and primary stakeholders may make a second
iteration. To achieve an unbiased analysis, persons who are not involved in the project may
perform the final iteration.
Often simple and effective risk responses can be developed and even implemented as soon as the
risk is identified.
QUANTITATIVE RISK ANALYSIS
the quantitative risk analysis process aims to analyze numerically the probability of each risk and
its consequence on project objectives, as well as the extent of overall project risk. This process
uses techniques such as Monte Carlo simulation
and decision analysis to:
Determine the probability of achieving a specific project objective.
Quantify the risk exposure for the project, and determine the size of cost and
schedule contingency reserves that may be needed.
Identify risks requiring the most attention by quantifying their relative contribution to project
risk.
Identify realistic and achievable cost, schedule, or scope targets.
Quantitative risk analysis generally follows qualitative risk analysis. It requires risk
identification. The qualitative and quantitative risk analysis processes can be used separately or
together. Considerations of time and budget availability and the
need for qualitative or quantitative statements about risk and impacts will determine which
method(s) to use. Trends in the results when quantitative analysis is repeated can indicate the
need for more or less risk management action.
RISK RESPONSE PLANNING
Risk response planning is the process of developing options and determining actions to enhance
opportunities and reduce threats to the project’s objectives. It includes the identification and
assignment of individuals or parties to take responsibility for each agreed risk response. This
process ensures that identified risks are properly addressed. The effectiveness of response
planning will directly determine whether risk increases or decreases for the project. Risk
response planning must be appropriate to the severity of the risk, cost effective in meeting the
challenge, timely to be successful, realistic within the project context, agreed upon by all parties
involved, and owned by a responsible person. Selecting the best risk response from several
options is often required
RISK MONITORING AND CONTROL
Risk monitoring and control is the process of keeping track of the identified risks, monitoring
residual risks and identifying new risks, ensuring the execution of risk plans, and evaluating their
effectiveness in reducing risk. Risk monitoring and control records risk metrics that are
associated with implementing contingency plans. Risk monitoring and control is an ongoing
process for the life of the project. The risks change as the project matures, new risks develop, or
anticipated risks disappear. Good risk monitoring and control processes provide information that
assists with making effective decisions in advance of the risk’s occurring. Communication to all
project stakeholders is needed to assess periodically the acceptability of the level of risk on the
project.
The purpose of risk monitoring is to determine if:
Risk responses have been implemented as planned.
Risk response actions are as effective as expected, or if new responses should
be developed.
Project assumptions are still valid.
Risk exposure has changed from its prior state, with analysis of trends.
A risk trigger has occurred.
Proper policies and procedures are followed.
Risks have occurred or arisen that were not previously identified.
9 Project Procurement Management
Project Procurement Management includes the processes required to acquire goods and services,
to attain project scope, from outside the performing organization. For simplicity, goods and
services, whether one or many, will generally be referred to as a product. the following major
processes:
9.1 Procurement Planning—determining what to procure and when.
9.2 Solicitation Planning—documenting product requirements and identifying potential sources
Obtaining quotations, bids, offers, or proposals, as appropriate.
9.4 Source Selection—choosing from among potential sellers.
9.5 Contract Administration—managing the relationship with the seller.
9.6 Contract Closeout—completion and settlement of the contract, including resolution of any
open items.
PROCUREMENT PLANNING
Procurement planning is the process of identifying which project needs can be best met by
procuring products or services outside the project organization and should be accomplished
during the scope definition effort. It involves consideration of whether to procure, how to
procure, what to procure, how much to pro- cure, and when to procure.
SOLICITATION PLANNING
Solicitation planning involves preparing the documents needed to support solicitation
SOLICITATION
Solicitation involves obtaining responses (bids and proposals) from prospective sellers on how
project needs can be met. Most of the actual effort in this process is expended by the prospective
sellers, normally at no cost to the project.
SOURCE SELECTION
Source selection involves the receipt of bids or proposals and the application of the evaluation
criteria to select a provider. Many factors aside from cost or price may need to be evaluated in
the source selection decision process.
Price may be the primary determinant for an off-the-shelf item, but the lowest proposed price
may not be the lowest cost if the seller proves unable to deliver the product in a timely manner.
Proposals are often separated into technical (approach) and commercial (price) sections with
each evaluated separately.
Multiple sources may be required for critical products. The tools and techniques described here
may be used singly or in
Combination. For example, a weighting system may be used to:
Select a single source who will be asked to sign a standard contract.
Rank orders all proposals to establish a negotiating sequence.
On major procurement items, this process may be repeated. A short list of qualified sellers may
be selected based on a preliminary proposal, and then a more detailed evaluation will be
conducted based on a more detailed and comprehensive proposal.
CONTRACT ADMINISTRATION
Contract administration is the process of ensuring that the seller’s performance meets contractual
requirements. On larger projects with multiple product and service providers, a key aspect of
contract administration is managing the interfaces among the various providers. The legal nature
of the contractual relationship makes it imperative that the project team be acutely aware of the
legal implications of actions taken when administering the contract.
Contract administration includes application of the appropriate project management processes to
the contractual relationship(s) and integration of the out puts from these processes into the
overall management of the project. This integration and coordination will often occur at multiple
levels when there are multiple sellers and multiple products involved.
CONTRACT CLOSEOUT
Contract closeout is similar to administrative closure in that it involves both product verification
(Was all work completed correctly and satisfactorily?) and administrative closeout (updating of
records to reflect final results and archiving of such information for future use). The contract
terms and conditions may prescribe specific procedures for contract closeout. Early termination
of a contract is a special case of contract closeout
PROCESS GROUPS
Project management processes can be organized into five groups of one or more
processes each:
Initiating processes—authorizing the project or phase.
Planning processes—defining and refining objectives and selecting the best of the alternative
courses of action to attain the objectives that the project was undertaken to address.
Executing processes coordinating people and other resources to carry out the plan.
Controlling processes—ensuring that project objectives are met by monitoring and measuring
progress regularly to identify variances from plan so that corrective action can be taken when
necessary.
Closing processes—formalizing acceptance of the project or phase and bringing
it to an orderly end
Initiating Processes
Authorizing the project or phase is part of project scope management.
Defines and authorizes the project or a project phase.
Planning Processes
planning is of major importance to a project because the project involves doing something that
has not been done before. As a result, there are relatively more processes in this section.
However, the number of processes does not mean that
project management is primarily planning—the amount of planning performed
should be commensurate with the scope of the project and the usefulness of the
information developed. Planning is an ongoing effort throughout the life of the
project
Some planning processes have clear dependencies that require them to be performed in
essentially the same order on most projects. For example, activities must be defined before they
can be scheduled. These core planning processes may be iterated several times during any one
phase of a project. They include:
Scope Planning developing a written scope statement as the basis for future project decisions.
Scope Definition: subdividing the major project deliverables into smaller, more manageable
components.
Activity Definition: identifying the specific activities that must be performed to produce the
various project deliverables.
Activity Sequencing: identifying and documenting interactivity dependencies.
Activity Duration: estimating the number of work periods that will be needed to complete
individual activities.
Schedule Development: analyzing activity sequences, activity durations, and resource
requirements to create the project schedule.
Risk management in a project.
Executing Processes
The executing processes include core processes and facilitating processes.
Project Plan Execution —carrying out the project plan by performing the
activities included therein.
Quality Assurance: evaluating overall project performance on a regular basis to provide
confidence that the project will satisfy the relevant quality standards.
Team Development: developing individual and group skills/competencies to enhance project
performance.
 Information Distribution: making needed information available to
project stakeholders in a timely manner.
Solicitation: obtaining quotations, bids, offers, or proposals as appropriate.
Source Selection: choosing from among potential sellers.
Contract Administration: managing the relationship with the seller.
Controlling Processes
Project performance must be monitored and measured regularly to identify variances from the
plan. Variances are fed into the control processes in the various
knowledge areas. To the extent that significant variances are observed (i.e., those
that jeopardize the project objectives), adjustments to the plan are made by
repeating the appropriate project planning processes. Controlling
also includes taking preventive action in anticipation of possible problems.
Integrated Change Control: coordinating changes across the entire
project.
Scope Verification: formalizing acceptance of the project scope.
Scope Change Control: controlling changes to project scope.
Schedule Control: controlling changes to the project schedule.
Cost Control: controlling changes to the project budget.
Quality Control: monitoring specific project results to determine if they comply with relevant
quality standards and identifying ways to eliminate causes of unsatisfactory performance.
Performance Reporting: collecting and disseminating performance information. This includes
status reporting, progress measurement, and forecasting.
Risk Monitoring and Control: keeping track of identified risks, monitoring residual risks and
identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in
reducing risk

Closing Processes
Contract Closeout: completion and settlement of the contract, including resolution of any open
items.
Administrative Closure: generating, gathering, and disseminating information to formalize phase
or project completion, including evaluating the project and compiling lessons learned for use in
planning future projects or phases.
2. Discuss the management functions in detail and relate them with managing construction
projects
there are now four commonly accepted functions of management that encompass these necessary
skills: planning, organizing, leading, and controlling.1 Consider what each of these functions
entails, as well as how each may look in action

Managers first need to develop a plan, then organize their resources and delegate responsibilities
to employees according to the plan, then lead others to efficiently carry out the plan, and finally
evaluate the plan’s effectiveness as it is being executed and make any necessary adjustments.

 Planning
 Organizing
 Leading
 Controlling

Planning

In the planning stage, managers establish organizational goals and create a course of action to
achieve them. During the planning phase, management makes strategic decisions to set a
direction for the organization. Managers can brainstorm different alternatives to achieve the
objective before choosing the best course of action. While planning, managers typically conduct
in-depth analysis of the organization’s current state of affairs, taking into consideration its vision
and mission and evaluating what resources are available to meet organizational objectives.

While planning, managers usually evaluate internal and external factors that may affect the
execution of the plan, such as economic growth, customers and competitors. They also establish
a realistic timeline for achieving the goal or goals based on the organization’s available finances,
personnel and resources. Managers may have to take additional steps, such as seeking approval
from other departments, executives or their board of directors before proceeding with the plan.

There are several approaches to planning:

 Strategic planning: This type of planning is often carried out by an organization’s top
management and usually creates goals for the entire organization. It analyzes threats to the
organization, evaluates the organization’s strengths and weaknesses and creates a plan of
how the organization can best compete in its environment. Strategic planning usually has a
long timeframe of three years or more.

 Tactical planning: Tactical planning is the shorter-term planning of an objective that will
take a year or less to achieve. It is usually carried out by an organization’s middle
management. Tactical planning is usually aimed at a specific area or department of the
organization such as its facilities, production, finance, marketing or personnel.
  Operational planning: Operational planning is the process of using tactical planning to
achieve strategic planning and goals. Operational planning creates a timeframe for putting
a portion of the strategic goal into practice operationally.

Organizing

The purpose of organizing is to distribute the resources and delegate tasks to personnel to
achieve the goals established in the planning stage. Managers may need to work with other
departments of the organization, such as finance and human resources, to organize the budget
and staffing. During the organizing stage, managers strive to create a work environment
conducive to productivity. Managers typically take employees’ motivation and aptitude into
account to match employees with roles and tasks that best fit their abilities.

When assigning team member roles, managers should explain and ensure that employees
understand their individual duties. To help employees feel engaged and productive, managers
should ensure that employees are assigned an appropriate amount of work and an appropriate
amount of time to complete their work.

Here are some examples of the organizing function:

 If the company’s brand manager works part-time and the organization’s goal is to launch a
new advertising campaign for a product, the brand manager may not take on the
significant responsibility of managing the campaign besides their regular duties. The
company may hire an advertising agency to help with the promotion of the product.

 If a company’s sales in a geographic area have grown exponentially, management may

plan to split the territory in two and need to divide the current team working in the
territory and hire additional staff members as needed.

Leading

consists of motivating employees and influencing their behavior to achieve organizational

objectives. Leading focuses on managing people, such as individual employees, teams and
groups rather than tasks. Though managers may direct team members by giving orders and
directing to their team, managers who are successful leaders usually connect with their
employees by using interpersonal skills to encourage, inspire and motivate team members to
perform to the best of their abilities.

Managers can foster a positive working environment by identifying moments when employees
need encouragement or direction and using positive reinforcement to give praise when
employees have done their jobs well.

Managers usually incorporate different leadership styles and change their management style to
adapt to different situations. Examples of situational leadership styles include:
  Directing: The manager leads by deciding with little input from the employee. This is an
effective leadership style for new employees who need a lot of initial direction and
training.

 Coaching: The manager is more receptive to input from employees. They may pitch their
ideas to employees to work cooperatively and build trust with team members. This style of
leadership is effective for individuals who need managerial support to further develop
their skills.

 Supporting: The manager decides with team members but focuses more on building
relationships within the team. This style of leadership is effective for employees who have
fully developed skills but are sometimes inconsistent in their performance.

 Delegating: The leader provides a minimum of guidance to employees and is more

concerned with the vision of the project than day-to-day operations. This style of
leadership is effective with employees able to work and perform tasks on their own with
little guidance. The leader can focus more on high-level goals than on tasks.

Controlling
To ensure all of the above functions are working toward the success of a company, managers
should consistently monitor employee performance, quality of work, and the efficiency and
reliability of completed projects. Control (and quality control) in management is about making
sure the ultimate goals of the business are being adequately met, as well as making any necessary
changes when they aren’t. Controlling is the process of evaluating the execution of the plan and
making adjustments to ensure that the organizational goal is achieved. During the controlling
stage, managers perform tasks such as training employees as necessary and managing deadlines.
Managers monitor employees and evaluate the quality of their work. They can
conduct performance appraisals and give employees feedback, providing positive remarks on
what they are doing well and suggestions for improvement. They may also offer pay raise
incentives to high-performing employees.
3. Write short note on nature of construction industry of Ethiopia. What are
the challenges of Ethiopian construction industry and annual budget and
percentage of employment

Ethiopia is one of Africa’s fastest growing, most vibrant economies. Enjoying double digit GDP
growth year-on-year for the past decade, and with a quickly growing population, the nation is
ready to become a regional leader in construction.
Indeed, the construction industry is a major economic growth driver for Ethiopia. Massive
government investment in infrastructure and residential building projects is turning the country
into one of the continent’s highest performing economies. Rapid urbanization rates have created
a huge need for improved infrastructure systems and a big housing backlog. Demand for quality
building materials, for which Ethiopia is heavily dependent on imports, is already on the rise and
is expected to skyrocket in the near future. Billions of dollars is being invested in the
construction industry each year, and foreign firms are seeing their products, knowledge and
expertise enjoy high demand. In this report, we examine Africa’s most exciting economy, the
construction industry as a whole, and the manifold opportunities available for international
companies to grasp

Ethiopia’s construction sector is one of the most robust in Africa. Conditions are ripe for a surge
in building across the country. The updating and building of new infrastructure links, residential
developments and so on is of considerable interest to the Ethiopian Government. Indeed,
development of these areas features heavily in the nation’s Second Growth and Transformation
Plan (GTP II).

The GTP five year plans lay out the blueprint for Ethiopia’s continued economic growth. As
such, construction will play a key role towards achieving the country’s economic prosperity
goals. According to the National Bank of Ethiopia (NBE), construction accounts for half of all
the nation’s industry.51 What’s more, the industry is expanding rapidly. Data from the NBE also
suggests that during 2013/14 the building sector grew 37%. Industrial

Residential Construction
With a large and growing population, Ethiopia is facing a major housing deficit. As such,
residential construction has been targeted as main area of development by the government. The
Ministry of Urban Development, Housing & Construction says it will build 2.45 million houses
over the course of the five years GTP II. 73

Infrastructure Construction Infrastructure investment accounts for the majority of the

government’s construction spending. The East African reported that 2014 saw $1.5 billion of
Ethiopia’s total $8.5 billion government budget being invested in infrastructure.58 A wealth of
construction projects began under the auspices of the first Growth and Transformation Plan. The
second GTP will improve on the targets laid down in the initial plan. Mr Yigzaw revealed the
below construction activities planned under GTP II:
To ensure continual improvement in the construction industry’s performance, its challenges must
be identified so that integrated solutions that suit the context can be provided. The Ethiopian
construction industry, like that in most developing countries, faces challenges that impede its
development. This paper assesses four categories of challenges facing the industry, based on
their sources: variables emanating from role of government, resource related variables, those
related to the nature of the industry and variables emanating from the vision of the industry itself
for its own development. Data for the study were collected through a questionnaire survey.
Professionals from different background, such as contractors, consultants, clients, regulatory
authority and academics were engaged in the survey. Mean score was used to identify the
perceived impact level of the variables. Significant variables were identified and factor analysis
was conducted to identify the underlying dimensions of the different sources
The major challenges are identified as:
 delay in construction industry development (CID) policy implementation and corruption;
 weak capacity of contractors and consultants;
 lack of collaboration and professionalism; and
 Low Doing Business ranking
 Occasional delays in accessing foreign exchange
 lack of sea ports Potentially long import times (75 days to clear)
 lack of benchmarking CID practice from role of government, resource related variables,
nature of the industry and industry’s vision for its own development, respectively.
Findings provide information that stakeholders can use to make informed decisions and
critical interventions for the effective development of the industry
 Low quality and coverage of infrastructure
Annual budget
The market value of the construction sector is currently estimated at more than US$7bn.
According to the 2017 edition of African Economic Outlook, construction activities in Ethiopia
accounted for 15.9% of GDP at current prices during the 2015/16 fiscal year.
4. Write at least 6 grade one local contractors and consultants, their capital, year of
establishment, number of projects they win annually etc.
1. Sur Construction

Sur Construction was formed in 1992 under its umbrella, the EFFORT (Endowment Fund for the
Rehabilitation of Tigray) and has today grown to become one of the largest Ethiopian
construction companies
The company boasts an annual turnover of over $117,000,000.
Sur Construction Projects (Notable)
1 Dansha-Abderafi-Maykadra asphalt Road Ethiopian Roads Authority 104.7 13-Dec 16-Dec
Completed on December 2016

2 Manebegna-Lemlem Bereha Asphalt Road Ethiopian Roads Authority 70.3 11-Oct 16-Jun

3 Dedebit-Adiremets Asphalt Road Ethiopian Roads Authority 76.6 10-Aug 14-Aug eetc

2 MIDROC Ethiopia Construction

MIDROC Ethiopia Construction, created in 1993, by Sheikh Mohammed H. Al-Amoudi, is

undoubtedly one of the largest construction companies in Ethiopia.

Based in Addis Ababa, MIDROC Construction claims a whooping annual turnover of

$182,000,000
MIDROC Ethiopia Construction Projects (Notable)
Nani Complex,

Federal Police Headquarters,

Bole International Airport Cargo Terminal,

Sheraton Addis Hotel,

African Union Conference Hall and Office Complex,

Ethiopian Airlines Cargo Terminal.

3. Sunshine Construction

Sunshine Construction was established in 1984, as a sole proprietorship and later in 1993 became
into a Plc or Private Limited Company.

The company started out in minor construction and water proofing works with less than 10
employees, but today, Sunshine Construction has over 3,000 employees and a 34 year lifespan
with annual revenue of over $100,000,000
4 Yirgalem Construction

Yirgalem Construction is an Ethiopian Grade-1 General Construction Company which was

formed as a sole proprietorship in 1981

It is owned and managed by Engineer Zelalem W/Amanuel

Yirgalem Construction Projects (Notable)
Akaki Kality Sub-City Admin Office Building

Bonga Agriculture Research Center Sari

Hawassa City Admin Building

Ethiopian Shipping and Logistics Enterprise - Modjo Dry Port

Shashemene Town Arterial Road and Drainage Construction

Omo Kuraz Sugar Factory Lot 1 – MEC etc

Werabe Agriculture Research Center

5 Afro-Tsion Construction

Afro-Tsion Construction PLC is an Ethiopian construction company, founded in 1998, by

Engineer Sisay Desta.

6 Tekleberhan Ambaye Constructions (TACON)

Tekleberhan Ambaye Construction Plc. (TACON) is a Grade 1 Building Contractor, with a

capital exceeding 1,000,000,000 ETB.
5. Write the top ten world contractors and consultants and their capitital
1. China Railway Construction Corp, China
Revenue: $84.6bn
2. China Railway Group, China
Revenue: $81.8bn
3. China State Construction Engineering Corp, China
Revenue: 81.4bn
4. Grupo ACS, Spain
Revenue: $50.65bn
5. Vinci, France
Revenue: $50.33bn
6. China Communications Construction (CCC), China
Revenues: $47.3bn
7. Hochtief, Germany
Revenue: $36.4bn
8. Bouygues, France
Revenue: $33.9bn
9. China Metallurgical Group Corp, China
Revenue: $31.5bn
10. Bechtel, USA
Revenue: $29.4bn
.
6. Write the foreign contractors (At least 6) that are working currently in Ethiopia, the
type of project they are engaged in.

1Built by a Chinese firm – China Gezhouba Group

Genale Dawa III hydroelectric power plant

2CGCOC Dodola Junction – Goba road
Mekaneselam – Gundeweine road

3China Communications Construction Company (CCCC)

beautifying Sheger project
4Keangnam Enterprise
Jimma-Bonga
Bonga-Mizan

5Aydeniz-KMZ JV
Irba Moda-Wadera (Cont-2)

6Hunan-Hunda RBC
Harar – Jijiga