Management Studies: February 2012

Bibliography

At the end page of research report, books, periodicals articles, lectures, interviews etc. we have usually seen the bibliography. So, all of us are familiar with the term ‘Bibliography.’ But it seems difficult to define the term in an exact word.

A bibliography is a serially numbered list of written sources either published or unpublished, consulted in the preparation of the report during the course of research report, books, periodical articles, lectures, interviews, etc.

The main objectives of bibliography are to permit the reader to find the exact item the researcher consulted. It may be arranged according to the alphabetical order or chapter wise. Generally a bibliography should be listed at the end page of the report. It the articles of journals bibliography are given at the end of the articles.

Review of literature means stock taking of available literature in one’s field of research. By reviewing of literature researcher get or collect the more information about his/her research problem. Scientific research process may be based on past knowledge. The previous study provides the foundation to the present study. The knowledge of previous study can be obtained by reviewing literature. Bibliography has a great significance in reviewing of literature. Bibliography provides the sources of information about the researcher’s research topic.

The following steps can be followed for composing bibliography:

Refer the available encyclopedias for obtaining a information relevant to the topic.
In the library, consult the card catalog and decide whether the related materials about the topics are available or not. In the library, there is the card catalog which will be the most useful. The card catalog contains three types of cards; author, title and subject. For the general search one will probably look under the subject. If the researcher receives a recommendation for a particular book from another source, then he/she should look in the card catalog under the title or author. In the subject card catalog subject’s name, author’s name, date of publication etc. specified. In the library must of the books used will be located through the card catalog.
Check journal indexes for related articles.

After collecting the available literature from concerned sources, the researchers have prepared 3’’*5’’ punch card of titles from which the material has reviewed. It helps the researcher to prepare the bibliography list as well as to select the material from concerned shelves of the library.

Bibliographic representation directs researcher for the first place to go for reviewing literature. It provide basis for identifying and defining the problem, and for the formulation of research hypothesis.

Objectives of Research

Objectives differ with nature of studies and goals to be attained. Some research studies aim to gather descriptive data or explanatory data or data from which theoretical constructions could be deduced or data, which promote administrative changes or comparisons. The main objectives of research are,

Development of Knowledge: Every science tries to collect a systematized body of knowledge about the subject matter that is studied. For this it used the research as a method. The main objective of research is to add to the knowledge. Similarly business research is an organized and scientific effort to acquire further knowledge.
Scientific Study of Social Life: Social research is an attempt to acquire scientific knowledge about the social phenomenon and social facts. The social researcher makes study of the collective process, social change, social structure, social processes etc by collecting information and formulating into rules.
Welfare of Humanity: Researcher should not make the study for the sake of study alone, but the study should be for the human welfare.
Classification of Fact: Social research aims to clarify facts. They conduct research to determine the sequences and interrelationship of facts.

Scope and Purpose of Research

Today, knowledge is the biggest asset and valuable resource of mankind. Without knowledge, we are handicapped in every sphere of our life. Knowledge can be acquired through various sources, whatever it may be; research is the prime source of knowledge generation. Research provides new evidence; it reordered old evidence and gathered new facts.

Exploration: The first purpose of research is to explore the reality. By exploring the reality we will be familiar with social phenomena. When any research is conducted, exploration is the part, which brings better understanding the situation. For example: if we walk through Mandala at Maitighar we saw lots of people there doing strike, then we are curious and want to find why people are dong strike at there and we ask people who are there seeing the demonstration. In this way we make our confusion clear by exploring the phenomenon.
Description: Description plays a wide role in research. It adds more to our existing knowledge. It explains nature of variables involved. It shows how the variables are interrelated.
Explanation: Although description and explanation have similar meaning, explanation goes beyond description and it explains reason for the phenomena. Explanatory research studies the relationships between two or more variables that contained in the situation to explain the phenomenon that exists.
Generalization: Generalization means the application of findings from sample to a large population. It can be happened when one could find the relationship between variables, how they involved in the situation.
Prediction: The aim of research will not end after formulating, generalizing. The purpose of research is also to predict the situation. The prediction in business research, medical research, etc plays a vital role.
Theory Building: The purpose of conducting research is to generate more knowledge and understanding the situation that occurs and to build the theories based on the research result. Such theories become the foundation for further study of the situation. So, the process of building on existing knowledge is the genesis of theory building.

Research Hypothesis

In common term, a hypothesis is a mere assumption or some supposition to be proved or disproved. But in a research process a hypothesis is a format question that the researcher intends to resolve.

Every research is carried out to develop some theory, to prove or disprove some facts. To do these things the researchers make assumption or presumption about the facts. This assumption or presumption is known as the research hypothesis. The whole research process is carried out to test the research hypothesis. A hypothesis helps the researcher in proceeding further or finding solution of the problem which researcher wants to study.

The logical relationship between two or more variables in the form of testable statements is known as hypothesis. When the relationship is tested by some scientific methods, it is termed as research hypothesis. The research hypothesis is a predictive statement that relates an independent variable to a dependent variable. Usually a research hypothesis must contain at least one independent and one dependent variable that are assumed but not to be tested, are not termed as research hypothesis.

Research hypothesis is the backbone of the research process. There is no any readymade research hypothesis. So it should be formulated with proper care. It should be formulated on the basis of researcher’s area of interest, subject matter, availability of resources etc.

Formulation of research hypothesis

The formulation of hypothesis is an important step which must be accomplished with due care in accordance with the object and nature of problem under consideration. One difficulty that the research worker usually encounters is the formulation of research hypothesis. Some of the main difficulties or problems are given below:

If the research problem is too general, it is usually too vague and cannot be put in the form of research hypothesis. A researcher must remember that narrower hypothesis is generally more testable.
Personal judgments, preferences, value statements are difficult to put in a form of a research hypothesis.
Scientific investigation is empirical. If the researcher believes something is so, he must somehow or other put his belief to a test outside himself. In practical situations many problems cannot be put in a form of research hypothesis because they are not amenable to testing.
Some researches are concerned with the multivariate relationship of the variables. Generally in psychological, sociological and educational research, this is the case. In such case it is difficult to formulate a research hypothesis in univariate form.
Some of the variables under study have not any relationship and most of the formulate research hypothesis are very difficult or impossible.
Research is carried out to develop some theory or to verify some existing facts but in some case the researcher has not such aim. In such case it is worthless to formulate a research hypothesis.
In some cases, time constraints also influence in formulating a research hypothesis. Researchers have an excellent hypothesis but he has not a sufficient time to test it, then it becomes meaningless.
Research hypothesis should be such which is accepted easily in society. It should not be such which rules out the rules and norms of the society.

Fundamental Research and Theoretical Research

Fundamental research is also called pure or basic research. It is concerned with the quest for knowledge and knowing more about the situation, there may be nothing as practical as a good theory such tyepe of research is also used to reject or support the existing theories about social situation.

Fundamental research involves with the questions that are intellectually challenging. Such research may or may not have practical application at present or in future. Such research may be of very abstract and specialized concepts. Who wants to conduct such research? Should study the concept and assumptions of specialization to know what has been done and what is remained to do.

Theoretical Research

A research which is directing towards finding information that has a broad base of application and thus, adds to the already existing organized body of scientific knowledge is termed as theoretical research. This type of research is also referred as fundamental or pure or basic research. Theoretical research is mainly concerned with generalizations and with the formulation of a theory. It is less relevant to the practical situation of the problems. The result of theoretical research can be generalized universality. To develop new theory this research can contribute.

Research concerning some natural phenomenon or relating to pure mathematics or concerning human behavior are examples of theoretical research.

Applied Research

A research which is carrying out to find a solution for immediate problem facing a society or an industrial, business governmental organization is known as applied research. The main purpose of applied research is to discover a solution for some pressing practical problems. Applied research helps in making decision about a problem of concern and on formulating policies. So it is also referred as decisional or action research.

Research aimed at certain conclusions facing a concrete social or business problem is an example of applied research. Marketing research or evolution researches are a good example of applied research. Applied research discovers the what, how and why questions but problems of actual life. Flexibility and applicability to a wide variety of problems are important characteristics of applied research. Applied research emphasis more in results, innovations and less interested in experimental controls.

Applied research has wide application but it has a limitation too. Some of the main limitations are:

Conclusions drawn from the applied research cannot be generalized to universal study.
In some cases it gives wrong conclusion or results.
For the same or similar type of problems, the same process cannot be adopted.

Financing Decision, Dividend Decision and Liquidity Decision

The second major decision of the firm is the financing decision. The financial manager is concerned with determining the best financing mix or capital structure. If a company can change its total valuation by varying its capital structure, an optimal financing mix would exist, in which market price per share could be maximized. The term capital structure refers to the proportion

of debt (fixed interest source of financing) and equity capital (variable – dividend securities / source of funds). The financial managers must strive to obtain a best financing mix as the optimal capital structure. The firm’s capital structure is considered optimum when the market value of share is maximized and overall cost of capital is minimized. The use of debt affects return and risk of the shareholders; it may increase higher return to the shareholder with higher financial risk. A proper balance between debt and equity to trade – off risk and return to the shareholders is necessary.

Dividend decision is the third major function of finance. The dividend decision includes the percentage of earnings paid to stockholders in cash dividends, the stability of absolute dividends about a trend, stock dividends and splits, and the repurchase of stock. The dividend-payout ratio determines the amount of earning retained in the firm and must be evaluated in the light of the objective of maximizing shareholder wealth. The value, if any of a dividend to investor must be balanced against the opportunity cost of the retained earnings lost as a means of equity financing. This is an important task of a financial manager under different finance functions. The final decision will depend upon the preference of the shareholders and investment opportunity available within the firm. But whatever may be the policy of the firms, the policy should be determined in terms of its impact on the shareholder’s value. Thus, we see that the dividend decision should be analyzed in relation to the financing decision.

Liquidity decision is concerned with the working capital management or current assets management. It is yet another important finance function. Current assets should be managed to save the firm from the illiquidity and insolvency. If the firm does not invest sufficient funds in current assets, it may become illiquid and may not have ability to meet its current obligations and, thus invite serious risk of bankruptcy. Its current assets are too large, profitability is adversely affected. Therefore there must be neither too low nor too high current assets in the organization. A proper trade-off should be there between liquidity and profitability, while managing the current assets.

Investment Decision

The investment decision is the most important when it comes to the creation of value. Capital investment is the allocation of capital to investment proposals whose benefits are to be realized in the future. Because the future benefits are not known with certainty, investment proposal necessarily involve risk. Investment decision is the decision to reallocate capital when an asset no longer economically justifies the capital committed to it. The investment decision then determines the total amount of assets held by the firm, the composition of these assets, and business-risk complexion of the firm as perceived by suppliers of capital. Using an appropriate acceptance criterion or required rate of return is fundamental to the investment decision. Because of the paramount and integrative importance of this issue, we shall pay considerable attention to determine the appropriate required rate of return for an investment project for a division of a company, for the company as a whole, and for a prospective acquisition. In addition to selecting new investments, a firm must manage existing assets efficiently.

Financial managers have varying degrees of operating responsibility for existing assets; they are more concerned with the management of current assets than with fixed assets. Financial manager is concerned with investment decision. Investment decision most commonly known as capital budgeting decision or long term assets mix decisions. Capital budgeting is the most crucial financial decision for a firm, which includes selection of an asset or investment proposal and whose benefits are likely to be available in future over the lifetime of project. The assets can be either new or old. The first aspect of capital budgeting is the choice of the assets among various alternatives available. The acceptance of assets depends upon the benefits and returns associated with it.

Finance Function

Finance functions can be viewed from two different approaches; traditional approach and modern approach. Under the traditional approach finance, functions are based on only to the procurement of fund to the organization or finance function means obtaining fund to the organization or finance means funds for business enterprise.

The traditional approach has explained the finance function in a narrow sense. The term procurement in above definition was used in a broad sense so as to include the whole gamut of raising funds externally. The traditional approach can be limited to the raising and administering funds and then was woven around the view point of the suppliers of funds such as investors, investment bankers and so on, i.e., the outsiders. In this approach, no consideration was given to those who had to take internal financing decisions. The limitation was that internal decision making i.e. insider-looking out was completely ignored. The another criticism of traditional approach of finance function is, it is focused on the financing problems of corporate enterprises. In another way, it can also be criticized that, it focuses to the episodic events such as promotion, incorporation, merger, consolidation, reorganization and so on. Therefore, it does not give consideration to the day-to-day financial problem of the company. Conclusively, the traditional approach focus to the procurement of fund basically long-term fund, to the specific events and lacking to explain the management of working capital and allocation of acquired fund as finance function.

The another approach of finance function consists modern approach and evolved to solve the various shortcomings of the traditional approach. The modern approach views the finance function in a broad sense. According to it, the finance function covers both acquisitions of funds as well as their allocation. Therefore apart from the acquisition of the funds, the efficient and wise allocations of funds to various uses are the functions of finance in broad sense. The modern approaches of finance function give the answer of the following questions:

What is the total volume of funds an enterprise should commit?
What specific assets should an enterprise acquire?
How should the funds required be financed?

To answer the above questions finance functions include three major decisions, financing, investment and dividend decision, function of raising funds, investing them in assets and distributing returns earned from assets to shareholders respectively. While performing these functions a firm attempt to balance cash inflows and outflows. This is called liquidity decision, and can be added it to the list of important finance decision or functions. Finance functions or decision include the following:

Investment or long term assets mix decision
Financing or capital mix decision
Dividend or profit allocation decision
Liquidity or short-term asset mix decision

Steps for scientific research process

Sensing or realizing: Research is conducted to solve a problem. In our environment i.e. social, managerial, business, behavioral etc., there are many things which are not going on smoothly. Some problems affected then. So first it is necessary to observe the situation and sensing or realizing the problems.
Problems identification: On observing carefully over something in the environment, we would find many problems which are affecting the environment. In this step, researcher try to identify what exactly are the problems in the situation. The factors associated with the problems are also identified. At the beginning of the process, the researcher must single out the problem he wants to study.
Theoretical framework: This is the third step of the scientific method. In this step the researcher make an attempt to collect the information about the problem concerned. The associations between the variables of the problems are identified. On the basis of the above information, a theoretical framework is developed.
Formulation of hypothesis: After developing the theoretical framework, it is necessary to develop a working hypothesis. Working hypothesis is tentative assumption made in order to draw out and test it’s logical or empirical consequences. In research hypothesis has a vital role, so it should be formulated with utter care. Hypothesis should be very specific and limited to the piece of research in hand because it has to be tested.
Research design: In this step, the researcher selects the appropriate research design. The research design is the conceptual structure within which research would be conducted. The main purpose of selecting a research design is to provide for the collection of relevant evidence with minimal expenditure of time, effort and money. Selection of research design depends mainly upon the research purpose.
Collection of data: In dealing with any problem it is necessary to collect adequate and appropriate data. There are several methods of collecting the data. Mainly there are two types of data: primary and secondary. Depending upon the nature of the problems either primary or secondary data are collected. Generally is most of the researches primary data are appropriate.
Analysis of data: After the data have been collected, the researcher analyzes those data. Before analyze collected data recoded, edited and tabulated. By using various statistical measures the data are analyzed. After analyzing the data, the researcher’s next job is to test the hypothesis which he had formulated earlier. The hypothesis may be tested through the use of different statistical tests i.e. z-test, t-test etc. hypothesis testing will result in either accepting the hypothesis or in rejecting it.
Generalization and interpretation: This is the final step of the scientific research process. If a hypothesis is tested, it may be possible for the researcher to arrive at generalizations. The real value of research lies in its ability to arrive at certain generalizations.

Scientific Research Process

In simply a research is defined as a process which is done for acquiring new knowledge. It may define as a systematic, careful inquiry or examination done to discover new information or relationships and to expand, verify existing knowledge for some specific purpose. The specific purpose may be applied or academic or both.

In research the term scientific does not necessarily mean science. It refers to the philosophy common to all research methods. A systematic and organized research is known as scientific research process. In this process truths are not ascertained by beliefs, they are determined by logical consideration. It is a systematic approach in which the research is carried out.

Scientific research is a process of research which is free from personal bias or beliefs, a process of ascertain demonstrable qualities of a phenomenon capable of being verified, a process where in the researcher is guided by the rules of logical reasoning, a process wherein the investigation proceeds in an orderly manner and a process that implies internal consistency.

The scientific research process is based on certain basic postulates. They are:
a) It relies an empirical evidence.
b) It utilizes relevant concepts.
c) It is committed to only objective considerations.
d) It presupposes ethical neutrality.
e) It results into probabilistic predictions.
f) Its methodology is made known to all concerned.
g) It aims at formulating scientific theories.

Responsibilities of Financial Manager

A financial manager is a person who is responsible to carry out the financial functions. In these days, financial manager occupies a key position. He/she is one of the key members of top management team. The role of financial manager is widening day by day and cannot be confined within limited area. The financial manager now is responsible for shaping the fortunes of enterprise, and is involved in the most of vital decision of the allocation of capital. As a team members of top level management, financial managers are involved and interact with all the following organizational key decisions.

Choice of products and market of the firm.
Strategies for research, investment, production, marketing and sales.
Selection, training, organization and motivation of executive and other employees
Obtaining funds at a low cost and efficiently
Adjustment to the above as environments and competition change

Financial managers must interact with most of above mentioned decisions area. However the following areas are regarded as primarily financial functions and the responsibilities of financial manager in the firm.

Analysis of financial aspects of all decisions
Investment decision to generate sales which the firm has planned to achieve
Financing decisions to spend on different assets to produce products and services. This is also called capital structure decision.
Analysis of individual income statement accounts: revenues and costs. A major responsibility of financial managers is to control cost. Therefore, the firm can price its products competitively and profitably.
Analysis of operating cash flows of all types. This is a third major financial statement, statement of cash flows, and it can be derived from the balance sheets and income statement
Dividend decisions
Dealing with financial market and institutions
Management of finance department.

The financial manager’s task is to make decisions concerning the acquisition and use of funds for the greatest benefit of the firm. Some specific responsibilities are as follows:

Financial managers use forecasting and planning to shape the firm future position.
Financial managers make major investment and financing decisions.
Financial managers coordinate and control when interacting with other executives so that the firm operates as efficiently as possible.
Financial managers must deal with the financial markets.

In sum, the central responsibilities of the financial manager relates to decisions on investments and how they are financed. In the performance of these functions, the financial manager’s responsibilities have a direct bearing on the key decisions affecting the value of the firm.

Managerial Finance

Managerial finance is concerned with the duties of the financial manager in the business firm. Financial managers actively manage the financial affairs of many types of business - private and public, large and small, financial and non-financial, profit seeking and non-profit making. They perform such various tasks as budgeting, financial forecasting, cash management, credit administration, investment analysis, and funds procurement.

Importance of Managerial FinanceManagerial finance is important in all types of businesses, including banks (which are just as interested in financial management as are industrial companies). Managerial finance is also important in government operation, from schools to highway departments to health systems. The types of jobs one encounters in managerial finance range from decisions as to whether to undertake major plant expansions to the choice of stock or bonds to finance expansions. Financial managers also have the responsibility for deciding the credit terms granted to customers, how much inventory to stock, how much cash the firm should carry, the specific types of securities to issue, whether to acquire other firms (merger analysis) and how much of the firm’s earning to retain versus to pay out as dividends.

Regardless of which area we go into, success requires a knowledge of the other areas. For example, a banker lending to businesses cannot do his/her job well without a good understanding of managerial finance, because he/she must be able to judge how well the businesses are operated. The same thing for one of Merrill Lynches’ security analysts, and even stockbrokers must have an understanding of general finance principles if they are to give intelligent advice to their customers. At the same time, corporate financial managers need to know what their bankers are thinking about and how security analysts are likely to judge their corporations’ performances and thus influence stock prices.

These days the importance of managerial finance is increasing. Failure of many corporate firms like failure of first public airline company Necon Air Limited, deteriorating performance of the first Nepali public ban, Nepal Bank Limited etc. increase the importance of managerial finance. Most of these organizations are failing due to the improper financial management. Improper financial management arises due to the lack of adequate knowledge in financial decision making in the area of investment, financing, and dividend. The news papers as well as radio and television carry dramatic stories of the growth and decline of firm, corporate takeovers, merger like merger between Laxmi Bank Limited & Hisef Finance Company Limited and many types of corporate restructuring. To understand these developments and to participate in these effectively requires knowledge of the principles of finance and which all provides by managerial finance. Proper financial planning is very important for the long run corporate survival. Such awareness has increased the emphasis placed on the managerial finance function.

Corporate Financial Management

Corporation is a form of business organization. Among three alternative forms (sole proprietorship, partnership and corporation) of business organization corporation is a kind. Not all business organizations are corporations. Small venture can be owned and managed by single individual these are called sole proprietorships. In other cases, several people may join to own and manage a partnership. Almost all large and medium-sized businesses are organized as corporations. For example: Nepal Bank Ltd., Sagarmatha Insurance Co. Ltd., Lumbini Finance and Leasing Co. Ltd. etc. The following are basic characteristics of corporation:

Shares of stock represent ownership in a corporation.
Ownership can easily be transferred to new owner.
The corporation has unlimited life.
Shareholders have limited liability.
The most important characteristic of corporation is the management of corporation is always separate from its owner.

Corporate financial management is defined as the process of financial decision making in the corporation to maximize the shareholders’ wealth. Corporate financial management deals with an understanding of the concepts and principles of finance along with the knowledge of the analytical techniques for developing skills in their application required for making investment, financing and dividend decisions.

In a competitive market place, business must actively manage their funds to achieve their goals. Many tools and techniques have been developed to assist financial managers to recommend proper courses of action. These tools help the managers to determine which sources offer the lowest cost of fund and which activities will provide the greatest return on invested capital. Financial management is the field of greatest concern to the corporate financial officers and will be the major thrust of the approach that we will use in studying finance.

Financial Management

Concept of Finance
Finance can be defined as the management of the flows of money through an organization, whether it be a corporation, school, bank or government agency. In general term, finance is the management of money. Finance concerns itself with the actual flows of money as well as any claims against money. In other words, finance can be defined as the art and science of managing money. Virtually all individuals and organization earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among and between individuals, business and governments.

Financial Management

Financial management involves the solution of the three major decisions. They determine the value of a company to its shareholders. Assuming that our objective is to maximize this value, the firm should strive for an optimal combination of the three interrelated decisions, solved jointly. The decision to invest in a new capital project, for example, necessitates financing the investment. The financing decision, in turn, influences and is influenced by the dividend decision, for retained earnings used in internal financing represent dividends forgone by stockholders. With a proper conceptual framework, joint decisions that tend to be optimal can be reached. The main thing is that the financial manager relates each decision to its effect on the valuation of the firm.

In an endeavor to make optimal decisions, the financial manager makes use of certain analytical tools in the analysis, planning, and control activities of the firm. Financial analysis is a necessary condition or prerequisite for making sound financial decisions. One of the important roles of a chief financial officer is to provide accurate information on financial performance.

Barriers to Project Team Development

Divergent Outlooks, Priorities and Interests: The professional outlooks and priorities of team members may differ from project objectives and priorities. The interest of support organizations may differ from the interest of project team.
Unclear Project Objectives: Lack of clarity about project objectives and outcomes produces:

Power struggles and conflict between team members.
Role ambiguities and role conflicts about who does what within the team.

Team Leadership Structure:

Project leadership may suffer from poor credibility. There may be competition for leadership between formal and informal leaders. This hampers commitment of team members.
The team structure may lack an effective reporting system. Task responsibilities may not be clearly defined.
The project manager may be changed frequently.

Poor Selection of Team Members:

The project manager may have little say in the selection of team members. This may result in assignment of "available" persons to the project by functional managers.
Poor selection of team members results in low motivation, discontent, conflict, lack of commitment, and poor performance.

Lack of Commitment: Team members may lack commitment. The sources of poor commitment by team members can be:

Feelings of job insecurity in the project.
Interpersonal conflicts within the team.
Lack of clarity about the nature of rewards.
Professional interests of team members may be elsewhere.
Undue attention to certain individuals by the project manager.
Failure to maintain commitment over project's life.

Communication Problems: Poor communication is the enemy of team building. Poor communication can result from low motivation, poor team morale and lack of attention to detail. The result is poor project control, coordination and work flow.
Lack of Top Management Support: Top management support may was or wane over the project life cycle. Timely feedback may be missing about project performance. Insufficient attention may be given to create the right project environment.

Project Team Characteristics

Project team is a formal team created to achieve the objectives and outcomes of the project. The characteristics of project team are as follow:

Performance: High performance and task efficiency of the team.
Innovative: Innovative and creative behavior on the part of team members. They seek better ways of doing things.
Commitment: High level of commitment of members to project objectives.
Member goals: The professional goals of team members are in harmony with project goals and requirements.
Interdependence: The project team members are highly interdependent and interface effectively.
Conflict Management: Functional conflict is encouraged and managed effectively for beneficial results.
Communication: Effective and open communication within the project team is present.
Trust: High level of trust and cooperative spirit among the team members.
Results - orientation: The project team is focused on achieving project results as the key priority.
Enthusiasm: The project team has high energy levels and enthusiasm. The level of morale is high. There is interest in team membership.
Change - orientation: The project team is concerned with managing change.

Team Building Factors

Clear Direction: Every member of the team should know why he is in the team. The project objective and outcomes should be clear. There should be no confusion about any aspect of the project. There should be congruence in the objectives of the project and the team members.
Project Culture: Culture refers to shared norms and values that guide behavior. The project manager should set team norms and behaviors to build project team. He should create conducive conditions in the project for effective teamwork. There should be no room for suspicion.
Relationships: The authority-responsibility relationships of team members should be clearly stated. The reporting relationships should also be clarified.
Targets: Individual and group targets should be set to improve performance. The workload distribution should not be uneven. Task assignments should be specific and clear.
Control: The team performance should be controlled. Actual performance should be compared with the targets to find out deviations. Corrective actions should be taken for deviations. Good performance should be rewarded. Feedback should be made available to the team.
Development: Personal growth and development of team members should be encouraged. Coaching should be provided in new skills. Training and development opportunities should be made available to the team.
Communication: Open sharing of information, opinions and feelings should be encouraged among team members. Information flow should be in all directions - vertical, horizontal, diagonal.
Leadership: The project manager should guide and influence team members to create team spirit to achieve project targets willingly and enthusiastically. He should build trust and respect in the team. Team identity should be created through participation, commitment, and loyalty. The creative skills of the team should be utilized. There should be stability in project leadership for team building.
Conflict Management: Behavioral interactions result in conflicts. They arise out of mutual incompatibility in goals, roles, values, attitudes and interests. Project conflicts should be effectively managed for team building.
Team Stability: The project manager should strive for a relatively stable hand picked team till the life of the project. Stability facilitates team building. Team members should be properly selected.

Sources of Project Authority

De Jure Authority
De Jure Authority is the classical view of project authority. It is the legal right to act or command. The sources of such authority are:

Organization Charter: The memorandum and Articles of Association of Companies may provide legal authority to the project.
Organization Policies, Rules, Regulations: The policies, rules and regulations of the organization may provide legal authority to the project. Manuals may also provide project authority.
Job Description: The job description provided to project manager and team members may specify authority. Such authority is position related.
Delegation: Superiors may delegate their own authority to the project.

De Facto Authority
It is competence view of project authority. It is the power granted by subordinates to superiors. It source is competence, expertise, creditability and interfacing ability of the superiors. The subordinates respect the judgement of the superior and willingly accept the authority in the project.

The sources of De Facto authority in project are:

Technical Competence: The specialized knowledge, expertise and competence of the superior may provide real authority.
Human Skills: The skills of the superiors for effective interfacing, alliance building, negotiating, support maintenance and conflict resolution may provide real authority.
Informal Organization: The project informal organization in the project can also provide authority.

Project Plan Authority
Project plan authority is the charter view of project authority. It is the authority provided by the approved project plan. The sources can be:

Project Cost Estimates: They provide spending authority. Budget virement authority may also be provided. It is authority to reallocate budget from one hand to another. Authority for overtime authorization may also be provided.
Project Schedule: It may provide authority for schedule changes necessitated by design changes and situational demands.
Project Contract: It may provide authority to make changes in the contract. The authority to select consultants and subcontractors may also be provided.

Project

Project is a one time set of activities that must be completed within constraints of time, cost and quality performance. In order to achieve pre-determined objectives, it has clearly defined objectives. It integrates the human, physical and financial resources. It is disbanded as soon as the objectives are fulfilled. In this sense, it is temporary organization. It has definite starting and ending points. It lies between these two cuts of points and passes distinct phases of its life, the life span between these points is known as project life cycle. However project passes its limited life in dynamic environment.

In this competitive environment each organization should continuously search for new idea for survival and rapid growth. But the ideas must be technically feasible, economically viable, politically suitable and socially acceptable. When the ideas pass these test, investment proposal is made. If proposal is approved then project commences. Thus project starts from well conceived.

Since a project is a small operational parts of a plan or program, it is taken as a "cutting edge of development". Mostly, project in an organization originate from business plan of the respective organization and government project originate from development plan of government. Whether project originate from business plan or development plan, it is undertaken to create an unique product or service as output. In this way, project is input-processing mechanism to produce output. Moreover project can be defined as vehicle of change because it brings remarkable changes or improvement after its implementation.

Product Management and Project Management

A product is any referee that satisfy the customer needs. It may be as tangible, physical goods like soap, carpet, car etc. or may be as intangible, services like insurance, health care, education, advertisement and so on.

Product management is concerned with production, production scheduling, inventory management, distribution and sales of a product line. It focuses on customer satisfaction. Product manager's role is very important in product management who coordinated and expedites (contribute) efforts of product development, launch manufacturing, distribution and sales to ensure uninterrupted, flow of product from its production to its customers. The product manager is active in managing conflicts and resolving problems that would degrade manufacturing capacity, forestall (to prevent) distribution, alter price, hindered sales or in any way affect financing production and marketing of product.

S/he is not willing to admit any factors so that his product line ever end rather s/he adopts various strategies and continuous effort to prolong the life cycle of the product as far as possible. S/he plans, organized, coordinated, implements and controls the product related activities to keep alive in competitive market.

Project Manger and Line Manager Interface

Project manager and line manager interface refers to working relationship between project manager and line manager to get project activities accomplished within constraint of limited time, allocated cost and specified quality performance.

Project manager is fully responsible to achieve the project objectives within the parameters (constraints) of time, cost and quality standard.

Project manager needs all types of human and non-human resources like money, man-power, materials, equipment, information and technology etc. for the successful completion of a project through smooth operation of project activities. But project manager does not control the resources directly accepted the project budget. The resources are collected by line managers, they are often called as resource manager. They assign directly to resources to projects. Project mangers control only those resources which are temporarily loaned by line managers. S/he reminds the line managers that there are also time and cost constraints of the project. This is the starting point for better resource control. Therefore project manager must negotiate with all line mangers for pooling require resources on time.

Project manager always requires to interface with the line mangers for the following major purposes.

To get needed resources from functional department on time.
To get good support of line managers while negotiating with various parties in connection with project work.
To achieve harmonization between project works and line department's work.
To get technical and managerial assistance.
To solve the project related problems.

The effective project management and project success is highly dependent on working relationship between project manager and line manger. So there must be better coordination, reporting, communication and negotiation between them for good working relationship. Moreover to promote good working relationship, project manager should help a proper understanding of;

Quantitative tools and techniques for planning, scheduling and controlling work.
Organization structure, own job description.
Open communication with line managers including effective coordination.
Organizational behavior to tackle the problems of dual reporting system.

Program

A program is an integrated package of related projects. The projects are separately conducted to fulfill the program. All projects both big and small contributes to achieve the overall sectoral objectives. Project and program are interrelated because if there is no program, no existence of project. Similarly the objective of a program cannot be achieved without projects. For example: an agriculture development program may consist of soil development project, irrigation project, seed development project etc. In another way, program can be defined as the integral part of a plan because many similar types of programs are conducted to convert the plan into reality. For example: a development plan may consist of agriculture program, education program, health program etc.

Success of the program is measured through the accomplishment of projects and the improvement of sectoral performance is derived through two factors - success of project in particular area and effect of that success at the program level.

Project Environment

The environment where project emerges, grows and terminates is called project environment. In other words, the factors or forces which influences the project activities and its ability to achieve the defined project objectives is known as project environment. Each project procures inputs from environment, processes them to convert into customized output and delivers again to the environment. Thus project cannot existed in vacuum. It operated in association with its environment. Project environment creates the situation of strength & weakness and opportunity & threats (SWOT).

Environment is ever changing phenomena, the degree of risk and uncertainty are mostly associated with the environment. The main cause of project failure is also the absence of adaptability to its environment. Therefore the project must adopt to its environment to achieve the objectives effectively.

Project environment can be classified into three group;

Internal Environment
Task Environment
External Environment

1. Internal Environment

It is also known as controllable environment. It consist of a forces which are within direct control of project manager. It determines the strength and weakness of a project. The main forces of internal environment are as follows:

Objective
Constraints
Resources
Structure

2. Task Environment

It is also known as operating environment. It is made up of stakeholder of project. Their interest are affected by project and project is also affected by them. The different elements of task environment are interrelated and mutually complementary factors for the project because project resources that is inputs are procured from the task environment and outputs are again delivered to task environment. However, it is not within the control of project but it directly influences the project and its functions. The elements of task environment are as follows:

Customers
Contractors
Consultants
Suppliers
Competitors
Financiers
Government
Special interest group etc.

Steps in Project Management

The project management approach basically consist of following five steps:
1. Grouping work into packages:
All the related works or activities are grouped together as a work package. They contribute to the same goal and can be bounded by definite time, cost and performance target.

2. Making Responsible to Project Manager/ Fixing Responsibility of Project Manager:
The whole project are entrusted to a single person called project manager. He is a single responsibility center. Therefore project manager coordinates, directs and controls the project for the goal achievement.

3. Supporting and serving the project:
The project has to be supported internally and externally. Internal support established by establishing matrix organization structure and external support through contractors, suppliers, consultants etc.

4. Building up commitment:
It refers to building up commitment through negotiation, coordination and direction towards predetermined project goals. In the course of building commitment, time schedule, budget and contracts have to be agreed upon by concerned party.

5. Executing the project tasks:
All the project tasks have to be completed within time, cost and quality performance for the accomplishment of objectives. This requires continuous monitoring and control using predetermined time schedules, budget, contracts and quality status.

Skills Requirement for Project Manager

The must important element of project management is project manger. He is responsible to plan, direct and integrate the work efforts of participants to achieve project objectives within defined parameters. He is 'linking pin' of all activities regulating both horizontal and vertical flow of work in any organization. He assumes leadership with total responsibility and accountability for project and performs the project functions from inception to completion of the project. His action determines the improvement and goal achievement of the project. Thus successful completion of the project depends upon project manager.

The project manager is special breed of manager who is capable of copying with jobs that range from small to mega project with the life span of few months to several years. In other to perform the couples and challenging task of the project in a dynamic environment, project manager should control the forces of internal environment. Interface with line mangers to procure required resources deal with stakeholders like customers, suppliers, consultants, labor unions etc and analyze the forces of external environment. However, he should be result-oriented.

a) Planning Skills:

Setting and defining project goal is the main task of project manager.
Formulating project strategies.
Scheduling and packaging.
Preparation of project proposal.
Use of project formulation techniques.
Establishing and developing.

b) Organizing Skills:

Determining the total project work.
Preparation of work down structure.
Integration of human and non-human resources.
Assigning project task to team members.
Setting of effective project organizing structure.
Allocation of resources.
Building using multifunctional work team.
Team building.
Setting guidelines and target for team members.
Assigning responsibilities. Maintaining team spirit.
Taking keen interest. Listening power and solving them.
Communicating and coordinating the team members.
Committing the team members to project.

c) Administrative Skills:

Dealing with stakeholders.
Following legal procedures.
Negotiation with various parties.
Implementing system and procedures.
Establishing and maintaining reporting and review system.
Managing project control.

d) Leadership Skills:

Clear direction and leadership.
Sound decision making at the right time.
Ability to handle interpersonal conflict.
Ability to guide and coach team members.
Facilitating group decisions.
Timely authority delegation.
Unifying team towards project goal.
Assistance in problem solving.
Ability to know participative management/ shared leadership.

Capital Intensive Project

Capital intensive project refers to the project which uses more capital, technology and skill manpower to complete the project within specified parameters (time, cost and quality). It require large amount of capital and less workforce in comparison to labor intensive project. It means, capital used in per unit of output is larger than the same unit in labor intensive project.

Generally capital intensive projects are profit oriented. It's task are complex in nature. So advance technology like automation, computerization, robotization and information is extensively used on capital intensive project. It makes the project less costly in long run. It is better technique for qualitative and mass production. Mostly it uses high skill technical and professional manpower. But it does not provide employment opportunities to all types of work force in society. It violates social equality and justice.

Capital intensive projects are appropriate to implement in those countries where availability of sufficient capital for investment, well technological development, availability of well skilled manpower and high level cost due to labor shortage. However it helps to improve the economic condition of developing country rapidly.

Advantages of Capital Intensive Project:

It produces greater quality output.
It is less time consuming than labor based technique.
It is less costly in long run.
It is best suited for handling complexity.
It increases the export trade.
It helps to develop technology.
It makes possible optimum utilization of resources.
It contributes in rapid economic growth of a country.
It promotes skill and knowledge.

Disadvantages of Capital Intensive Project:

It ignores human factors.
It needs huge amount of capital for investment.
It uses expensive technology.
It may adversely affect the balance of payment due to huge enforcement of large machinery, equipment and technology.
It reduces the employment opportunity.
It may create the situation of social injustice due to unequal distribution of income in society.

Emergence and Growth of Project Management

Traditional management was unable to cope with increase in complexities and changing environment. As a result project management concept/ approach emerged as an alternative approach to traditional management approach avoiding the drawbacks of management to fulfill the need of new method and technique of management in business and non-business or public and private sector.

There are many reason for the emergence and growth of project management. But some more important reasons are mentioned below:

Complex and dynamic environment.
Tough and competitive market situation/worldwide competition.
Expansion of human knowledge.
Growing demand for complex, sophisticated, customized and services and goods.
Rapid development and change in technology.
Greater need for high result performance by limited resources.
Globalization.

Project Life Cycle

A project has fixed life span. Every project goes through similar stages on the path from origin to completion. The stages are generally expressed in terms of cycle of phases. The phases are arranged in a sequence. The phases are collectively known as project life cycle.
The various phases of project life cycle in a simplified form is explained below:

Conception Phase
Definition Phase
Planning and Organizing Phase
Implementation Phase
Clean up/ Termination Phase

1. Conception Phase

This is the phase during which project idea germinates. The idea may first come to mind when one is seriously trying to overcome certain problems. Generally ideas are develop from both internal and external sources. The internal sources may be mission, goals, strategies and programs of parent organization. Opportunities and threats identified by management, suggestions and comments provided by employees etc. Similarly external sources of the ideas may be clients' requirements, competitors activities, donors priorities, opinions of experts or consultants, legal provision of government. It means the sources of idea may be from environmental scanning which helps to justify project needs establish project objectives, estimates the resources.

In this stage various developed ideas are carefully evaluated in terms of objectives, constraints and resource availability and select the best idea to start as a project. It also includes the preliminary analysis to identify the risk and its impact on project success. A well conceived project will go along for successful implementation and operation of project. Therefore, the answer of the following questions are trying to find out in this phase.

What is problem?
Will the proposed project solve that problem?
What are the specific goals of the project?
Do we have resources to create and support the project?

2. Definition Phase
These phase concerned with the development of the generated idea during the conception phase. It produces a document describing the project in sufficient details covering various aspects accessory for the customer or financial institution to make up their minds on the project. This phase avoids some ambiguity and uncertainty associated with the formation made during the conception period.

This phase requires a firm, identification of resources to be require together with the establishment of realistic time, cost and quality performance parameter. It also includes the initial preparation of all documents including raw materials, plant size, location and site, project layout, plant and machinery, engineering works, manpower, financial analysis, implementation schedule, policies, procedures, job description, budget and funding papers, memorandum etc necessary to support the project system. It identifies those areas of system where high risk and uncertainty exist.

In this phase either project is accepted or rejected.

3. Planning and Organizing Phase
This phase can effectively starts only after the definition phase, but in practice, it starts much earlier. Almost immediately after the conception phase. It is often taken as a part of implementation since it does not limit itself of paperwork and thinking but many activities including field works are undertaken during these phase. Hence this phase overlaps so much with definition and implementation phases. This is concerned with choosing appropriate wages and developing best course of action to achieve defined objectives.

Project focuses on the following aspect during this phase:

System design and basic engineering package.
Scheduling and budgeting.
Licensing and government clearance.
Terms and condition of contract.
Identification of project manager.
General condition for purchase and contract System and procedures.
Financial provision.
Site preparation and investigation.
Work packaging.
Allocation of task, resources.
Authority and responsibility.

Thus this phase is involved with preparation of action plan for project to take-off smoothly. The basic task of these phase are feasibility study, project appraisal and detail project design.

4. Implementation Phase
This is the most important phase of project life cycle. It is also called project execution phase because bulk of the project works are done during these phase. Actually all human and non-human resources are mobilized to perform the project task according to plan. All techniques of project management are applied to attain the project objectives within constraint of time, cost and quality. Thus success of project is also highly dependent on the implementation phase.

Execution and controlling related task are done during this phase.

Allocation of project task to members.
Setting of management information system.
Starting of construction works.
Use of time sequence schedule for implementation.
Ordering and erection of equipment.
Negotiation and contracting with various parties.
Timely supervision.
Use of control techniques.
Identification performance problem and timely correction.

5. Clean up/ Termination phase

It is deterioration or death phase of the project life cycle. Project's all types of remaining tasks are completed in this phase. Effects and impacts of project are properly evaluated. Finally the project is handed over to customer or parent organization and closed. Although the basic tasks under the cleanup phase are project evaluation and project handover, following task are performed during this phase:

Dues collection.
Outstanding payments.
Check customer satisfaction.
Closing of accounts.
Lay-off personnel.
Transfer of remaining resources.
Handover the project to concerned party.

Joint Venture Project

The project which is undertaken to produce goods and services through collaboration of foreign and local company's investors is called joint venture project. The ownership of these types of project is proportionately shared in an agreed ratio. The project is associate with transfer of raw materials, capital, information and technology and managerial skill in which country the project is implemented or required raw materials, components, technical and managerial know-how is supplied to the host company by foreign company. Therefore, these factors are supplied by parent company of foreign country to host company of local company under joint venture agreement.

The establishment of joint venture project is the result of large foreign country's desired to expand the business in other country. For this purpose, foreign companies make a joint venture agreement with small business company of host country to implement the project. Both companies play vital role to achieve the project success. However, joint venture projects are profit oriented. Joint venture business agreement is becoming very popular throughout the world due to globalization and advancement in information and technology. Its projects can involve equity participation for production, technology transfer, managerial contract and marketing.

Advantages of Joint Venture Project:

It takes advantage of lower level and raw material cost in host country.
It provide greater employment opportunities to the people of host country.
It helps to transfer resources, technology and managerial skills from country to country.
It produces qualitative output.
It makes market entry easier in foreign market.
It helps to contribute the economic growth of any country.
Its projects spread risks.

Disadvantages of Joint Venture Project:

It may adversely affect the small local project of host country due to tough competition.
It increases dependency on foreign countries.
It may create employment opportunities to only skilled manpower.
There is high possibility of conflict between foreign and local company.

Bi-Lateral Project

Project carried on under agreement between two countries or bi-lateral agencies or country is called the bi-lateral project. It is the result of an agreement or contract between two friendly countries. It is characterized by foreign aid based, adequate time for implementation, pre-determined planning and scheduling and maximum capital requirement, normal life cycle etc. Generally poor and developing country cannot implement large scale of project due to lack of sufficient capital, enhanced technology and skilled manpower. So they request to foreign country or donor agency of foreign country to provide assistant-ship project implementation. The foreign country or bi-lateral agency provide them loan or grants, specially they provide grants which may be in the form of cash or kind. Sometime donors themselves execute the bilateral project and handover the project to receipant country. However, the grants provided by donor agencies or country should not be repaid as an interest or principal by receipant country.

There are many bi-lateral projects in Nepal, in education, health, agriculture, hydro power sectors. For example B.P. Koirala Institute of Health and Science (Nepal and India), BICC (Nepal and China), Trisuli Hydropower (Nepal and India).

The developed country provide the assistant-ship to developing and underdeveloped country through their government or bilateral agency. The major agencies for forming bilateral project in Nepal are JICA (Japan International Co-operation Agency), GTZ (German Agency for Technical Co-operation), SDC (Swiss Agency for Development and Co-operation) etc.

Advantages of Bi-lateral Project:

It helps to improve the relationship between two countries.
It facilitates for the development of infrastructure.
Its funding is mostly grant-based so receipant country should not repay.
It generates employment opportunities.
It accelerates the economic growth of country.
It facilitates the transfer of new and modern technology.

Disadvantages of Bi-lateral Project:

It promotes the depending on foreign country.
It may be the means of getting own interest of donor agency.
It creates the problems of nationality and other national disturbances.
Donors may corrupt the developing countries, resources may be misused.
Bilateral agencies may withdraw their aid or grants during the project period due to practical problems.

Project Proposal

In simple words, proposal means blueprint of activities or set of activities or set of documents prepared and submitted to evaluate the appropriateness of activities. Project proposal is a set of document submitted to concerned party for the evaluation of proposed project whether the project will be appropriate to target group (customer) or not. It includes the brief information about project need, objectives, project task, implementation method, strategies, project schedule, monitoring, evaluation and control procedure, project staff, their qualification, their work experiences, budget estimation, target group and so on. It depicts the organization's capability to carryout the project works to client.

Each project is made for customer satisfaction. Therefore a project proposal must include a description of how the project activities will satisfy the customer needs. Its basic purpose it to convinced the customer that the proposal is viable proposition and worthy of support. It is the device used to seek financial source/support for the proposed project. Donor agencies, loan provider provide the loan after the proper evaluation of project proposal. Therefore, it is important for the donor agency, loan provider, customer and the organization who are directly or indirectly related with the outcome of the project proposal.

Project proposal is the grouping of project activities. It may be brief or extensive. It is prepared for both corporate and development project. It is usually divided into two parts i.e. (i) Technical Part (ii) Financial Part. Technical part of project proposal deals with technical details and financial part deals with financial details including total cost.

Project Management Planning in Nepal

1. Identification, formulation and planning of the project: National Planning commission is the government body which is mainly responsible for the identification, formulation, planning and monitoring and evaluation of development project.The techniques like feasibility study, financial analysis, cost benefits analysis, capital budgeting etc are used to formulate the project. Project's proposal are prepare containing outlines, total investment of a project, sources of funds, returns from the project, economic analysis of the project, project implementation, planning procedures, logistic support and administration and then control and local level project proposals are submitted to NPC (National Planning Commission) and Line Ministries for approval respectively. The team experts in NPC evaluates the proposal properly based on the guidelines provided by NPC. However central level projects are approved by NPC and local level projects are adopted by the secretary of the concerned ministries. All the approved projects are planned for the effective implementation.

2. Implementation of the Project: After the proper evaluation and approval of the submitted proposal, NPC sends the project documents to the concerned ministries for the implementation. Then project organization is set up, budget is released, resources are mobilized and implementation procedures are followed.

3. Termination of the project: In the termination of the project, output are transferred to beneficiaries group and remaining resources are send back to parent organization, accounts are closed and human resources are sent to parent organization if they are from parent organization.

4. Project monitoring and evaluation: It is done to know the performance level of the project and to follow the corrective actions on time. The present monitoring and evaluation system in Nepal was developed by UNDP/ World Bank under which monthly and trimester performance reports are prepared from line ministries. It is done under the leadership of concerned ministries with the participation of representative of NPC. Normally projects are classify into priority and non-priority project. Priority projects are monitored and evaluated by NPC but others are by responsible line ministries

Traditional Vs Modern Era in Project

1. Traditional Era: The original project management is often associated with the early missile and space program of the 1960s. But clearly its origin go back much earlier. Techniques of project management probably must appeared in major construction works or antiquity such as Egyptian Pyramid, Great Wall of China, Taj Mahal of India, Paroma Cannel. Later these techniques were included and modified for usage on other forms of construction projects such as ship building. However traditional era of management extended up to 1930s.

2. Modern Era: Modern era of project management emerged at the down of second world war i.e. late 1930s. No one can claim the credit of inventing project management. But major share for the development of techniques and practices of project management belongs to military. The Manhattan Project of USA is assumed as the first project of the world according to modern project management. It developed atomic bomb.

1940s: The project model for managing development in modern sense appeared with the centralized planning model of the Soviet Union in 1930s. Project management emerged before the second world war in 1930s in chemical industries in USA. It was confined to the analysis methods and performance during 1940s

1950s: Project Management as a new management approach emerged during the 1950s. The development of Management Science approach to management facilitated its development.

Project management approach drew heavily on the work at management science (operations research) which focuses on mathematical treatment of complex situations for decision making. At that time, it also focused on process, construction, heavy engineering and defense industries.

1960s: The Russian success in sending "Sputnik" in the space spurred the growth of project management. The USA and the Western countries started using this approach widely to develop and execute complex aerospace, weapons, constructions and computer projects. The first manned space flight, the development of Inter- Continental Ballistic Missile (ICBM), and mainframe computers were the outcome of this approach. IBM adopted project management concept in 1961. So did many other companies. This approach became a necessity to adopt management to changing environment.

1970s: The 1970s experienced extended application of project management in a variety of government, industrial, commercial, health and educational projects. Development of many new products and processes were the outcome of project management. Research, development, training, political campaigns and software development task were increasingly subjected to project management concept.

1980s: During 1980s, global organizations became pronounced in the world economy. They were thinking globally but planning and executing projects locally based on project management approach.

Technology is changing fast. Technology management occupied a central place for the application of project management concept. Similarly, emerging areas of management such as time management, stress management, conflict management and human resource management became the subjects for the application of project management concept. Organizations that have complex tasks and operate in dynamic environment were compelled to use this concept.

2000 and Beyond: In twenty first century, the project management concept is likely to grow to achieve results. Its scope will be expanded by the infusion of specialists in particular areas, such as risk management, human resource management, procurement management. Such specialists will advise and assist the project manager in achieving the project objectives efficiently and effectively. The new century will be the upcoming age of project management.

Labor Intensive Project

Labor intensive project is heavily based on labors. Therefore, it is also known as labor based project. It uses different types of work force of society, specially semi-skilled and unskilled manpower to perform the project task. There is very high involvement of labors and they play vital role in success of the project. The main objectives of the implementation of these kinds of project is to generate maximum employment opportunities to all categories of people in society. Thus, it helps to bring social equality and justice by equal distribution of income in society and maintain economic stability in the country. It utilized few technology in the process of project implementation. It requires less capital as compared to capital intensive project. Labor intensive project is more appropriate in those country where there is high availability of manpower, cheap manpower, low capital, low technology development.

Advantage of Labor Intensive Project:

It provides high employment opportunities.
It helps to maintain economic stability.
They are very useful for countries having a vast pool of unemployed labor resources.
They create economic stability in the country through employment. People's participation is promoted at local levels.
It ensures optimum utilization of scarce resources.
The wage differentials are not pronounced so as to bring social equality and justice.
Its impact on environment is low.
It requires less capital and use indigenous technology.
It helps to increase per capita income.
It also reduces import.

Disadvantages of Labor Intensive Project:

It gives less priority to technology innovation and development due to labor based project.
It effects the competitive capacity of the project.
It is time consuming that lengthen the project life cycle.
It is costly in long run.
It is unable to handle complexities.
Poor capital formation.
It lacks improved and advanced skills.

Indigenous Project

Indigenous project refers to the project which is established in local level with local resources or funded from local resources. It uses indigenous materials, capital, skills, technology and work force to implement the project. It fulfills the indigenous need. There is no any contribution of skill, technology and fund in project implementation to attain the defined goal. Hence it blends indigenous technology with local resources in generating project outputs. Indigenous traditions, styles, system and cultures are carefully considered during its planning and implementation phase. Therefore, it helps to preserve and protect traditions and cultures.

Indigenous project needs small scale of capital, provide employment opportunities to local people, uses local resources and technique. In this sense, it is labor intensive project.

Advantages of Indigenous Project:

It protects tradition and cultures.
It makes possible maximum utilization of local resources and technology. Since indigenous project is labor intensive, it generates employment opportunities to local which helps to upgrade the living standard of people.
It has special identity.
Certainty of success may occurred.
They also promote creativity and are culture friendly.

Disadvantages of Indigenous Project:

It may not produce quality output due to the use of simple technology.
It is rigid in terms of traditional system and procedures.
It cannot handle the complexities.
It is static and lacks dynamism.
It cannot cover the national requirement.
It reduces use of technology and development of technology.

Characteristics of a good research and motivation research

A good research should have the following characteristics

The common concepts and purpose of research should be clearly delineated.
Research design should be planned to estimate their effects.
Collection of data, their methodology, analysis of data with statistical testing of hypothesis are well managed.
Conclusions and justifications are drawn with clear manner.

Along with the above the following points are also to be taken

Systematic: If possible mathematical relations shown should be developed as well as problems identification are well marked.
Logical: Rules and regulations are always drawn carefully.
Empirical: To evaluate the research empirical relationship should be used.
Replicable: Verification of the proper/ justification of the problems.

Attributes of good management research

For a good management research, all planned actions as well as specifications of research ideas and information are justified. Along with the following headings are also cited.

Purpose are clearly defined
Research process and work plan are clearly defined
Research designs with conceptual vision
High ethical standards
Limitations are well defined
Facts finding and always unbiased
Conclusions are justified

Difficulties of Management Research for Business Field/ Social Science Research

Due to the lack of proper information for research, the work and plan of orientations should be misguided and ultimately it pertains the failure of the management research.

Complexities of the subject matter.
Difficulties of obtaining accurate data/ information.
Influence of management process and results.
Difficulties for testing hypothesis.
Difficulties for future forecast the projects.
Problematic objectives may occurred.

Evaluation Research

Evaluation is the process of determining the value or worth of something. This research is related with policy research. It is conducted to evaluate about the policies, condition of an organization. The perspicacious (visionary) results of it should be currently existing problems through something.

Objectives of Evaluation Research

To identify the specified problems through particular cases.
To suggest improvement only.

Data Requirement for Evaluation Research

Macro level data can be taken through MIS (Marketing Information System)
Internal survey data might be used.

Research Output of Evaluation Research

Evaluation research be useful
Recommend for future research

Action Research

Action research directly deals with the continuous operations for overall management environment towards operations.

Objectives of Action Research

Solely focus on facts finding operations.
To improve organizational supports.
To demonstrate the future planning.

Data Requirement for Action Research

Continuous gathering/ collection of data by specified agency (CBS: Central Bureau of Statistic)
Satisfaction/ frustration
Motivation or desire.

Research Output of Action Research

Performance might be fruitful
Next operation will be given.

Managerial Research

Managerial Research relates to the specific problems of limited scopes for which management has need an additional information for getting decisions.

The Objectives of Managerial Research

To study the ongoing projects under operations.
Helps to improve managerial effectiveness.
To demonstrate the overall decisions.

Data Requirements for Managerial Research

Specific aspects of data collection activities.
Data mostly collected by MIS (Management Information System)
Exploring various situation/ condition survey research and observational method.

Research Output of Managerial Research

Identification of the projects.
Identification of the decision options.
Precise recommendation for useful management research.

Policy Research

The development of the formulation to be based upon basic fundamental rules and regulation is governed by policy research. So, it leads plans with impact policy.

Objectives of Policy Research

To formulate major policy proposals.
To priorities/ give minor/ major policies.
To identify their implementations.

Data Requirement and Analysis

Macro level data should be collected with their specified headings.
Longitudinal data.
Time series data with chronological orders.,
Prediction with statistical inferences (tested by various methods).
Parameter projections.

Research Output

Identification of major/ minor policies.
Listed upon their priorities.

Pages