Extensive elaboration of lectures of the course Financial Project Management (FPM) for the training in personnel sciences. This includes the information of the slides and the notes made during the lectures.
FPM Hoorcolleges
Hoorcollege 1a – Introduction and organization of the course
Not be tested:
This course:
Project management: different people working in a project team. You have to divide the tasks.
Financial management part: about the money in an organization.
Three specific domains of financial management:
1. Finance: which project is the best to invest in (capital budgeting), finanical rations (reternal
investements).
2. Management accounting: providing you financial managers of how you are doing as an
organization.
3. Financial accounting: reporting for external audience, vb. stakeholders (financial statements).
The general aim of this course is to increase students’ basic knowledge and understanding of
financial and project management. After taking this course, students…
1. Know what intra- and inter-organizational projects and project-based organizations are;
2. Have basic understanding of the core elements of project management;
3. Have basic knowledge about the financial management of organizations and projects
(finance, management accounting and financial accounting);
4. Are able to apply their knowledge of financial management through doing assignments;
5. Are able to apply their knowledge of project management through doing assignments.
Organizations more and more become project-based, so their financial performance is more and
more the product of project performance.
Hoorcollege 1b – Financial and project management
FPM highly relevant, because:
1. Societal relevance of course:
- Projectivisation of society/economy (production/innovation/change): more and more in
businesses in organizations in what we do, think: ‘’let’s organize the projects’’.
2. Professional/personal relevance (what’s in it for you?):
- Professional skill development
- High chance you will (start) work(ing) in projects.
- Position: junior project manager.
– Solo self-employees (only a name, because if they work they are not solo at all – they work
with other people) organize their work in temporary projects.
Project: is a subcategory of wider spread of things: temporary systems.
Introduction: Examples of projects
a. Construction projects: even what is going on side construction is projection based – very
complicated. A lot of different organizations collaborate.
b. Shipbuilding: project based industry. Because in the old days (1950) the shipbuilder did
everything himself. Now, everything is outsourced and the shipbuilder is the conductor.
, c. Movie productions: a specific type of project. Often, the different types of people involving in
the project, they never meet. Sequence project based organization.
d. Olympic (winter) games.
e. Amsterdam Dance Event: cultural.
f. Manhattan Project: the bomb that was thrown at Hiroshima and Nagasaki was developed in
Manhattan.
g. Change management: Task force organizational change. Why do we organize a change in an
organization in an project? With a project you detach from the everyday routine, benefit for
conducting the change fast and efficiently.
h. Other: HR plan, innovation, development projects, environmental projects, poverty.
All kind of different sectors use projects, so there must be some benefits by organizing projects.
Intuitive approach
Think-Pair-Share
1. What is a project?
Project defined as unique, temporary endeavors (inspanningen) with a specific beginning and
end. Operations constitute (vormen) an organization’s ongoing, repetitive activities, such as
accounting or production.
2. What is/are difference(s) between project and organization?
Temporary vs. permanent & routine vs. unique .
3. What is a project management?
What is a project? (1)
Project = goal oriented – plan – temporary - bounded in time - specific task.
Project: is a subcategory of wider spread of things: temporary systems.
What is a project?
Is organisatorische vorm: Onderscheidingen tussen vormen weerspiegelen sociale processen en
grensvorming (een organisatie is een entiteit die bestaat uit meerdere mensen en middelen, die een
bepaald doel heeft). In any organizational form, mainly two aspects of work exist: ongoing operations
and projects.
- Operations constitute an organization's on-going, repetitive activities, such as accounting or
production.
- Projects are defined as unique, temporary endeavours with a specific beginning and end
(thus time-bound).
- Permanent versus temporary
- Routine versus unique
What is/are difference(s) between project and organization? (2)
- Organization: multiple tasks and goals.
o Permanent organization: more operation, more routine, which we can do many more
times.
o Temporary organization: short term, more changing.
It is not as black as we think. VB Infrastructure projects looks as an organization, because it
takes very long to finish the task.
- Project: one task.
,Why do we have organizations? Bring together people who have different expertise’s/qualities we
hope we get some kind of synergy (we can do more than my lonely self). That is the key of
organizing. Organizing in project is more efficient than organizing in permanent organizations only.
Reasons in society why it is nowadays more efficient to organize stuff to a project: seek for short-
term goals – live in a society where things change very rapidly. A big bureaucratic company is not
effective in this society. The environment get more dynamic/less stable.
What is a project management? (3)
Project management: is the process and activity of planning, organizing, motivating, and controlling
resources, procedures and protocols to achieve specific goals. Project is a process. Coordination is so
important.
The primary challenge of project management is to achieve all of the project goals and objectives
while honouring the preconceived constraints. The primary constraints are scope, time, quality and
budget.
Project Management & Social Sciences?
Technical Social science
- Scope - Leadership
- WBS - Problem solving
- Schedules - Teamwork
- Resource allocation - Negotiation
What are temporary systems?
A temporary system or organization in business, science, and society is typically defined as a
collaborative enterprise that is carefully planned to achieve a particular aim. They can be further
defined as temporary rather than permanent social systems that are constituted by teams
(people/organizations) within or
across organizations to accomplish
particular tasks under time
constraints.
, Individual-based: individuen die op een bepaald moment (temporary) proberen te helpen.
- Ad hoc/spontaneous: bijvoorbeeld door iemand achterna te duiken als iemand verdrinkt OF
zelf proberen het de brand te blussen.
- Profesion based: bijvoorbeeld een film – huur een cameraman, acteur, en geluidsman en we
maken een film. Bring together often times experts to do the project.
Organization based temporary systems:
- Hastilly formed interorganizational: limited preparedness, bijvoorbeeld bij een terroristische
aanslag.
- Structurally prepared TS.
What is a PBO? (intra-organizational)
What is it?
- An independent organizational form (an organization) in which the project (and not a
functional department) is the primary organizational unit for economic or societal activities
(e.g. production, innovation, change, and competition).
Where can we find them?:
- In private manufacturing enterprises, also in other organizations public and private (legal
profession, consultancy, marketing, film industry, advertising, aid).
PBO vs. other organizational structures:
a) Upper left: functional organization.
The organization is organized around a
number of functions, e.g. marketing.
b) Lower right: project based
organization – all the functions are
organised within a project.
c) In between situation: matrix situation.
Functional organization
Pure functional organisation is rare – it is an ideal type (same as: project based).
Project-based organization
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