CHAPTER 7

1. What is stakeholder analysis?

o Stakeholder analysis is the process of identifying, categorizing, and assessing
stakeholder influence to maximize project success.
2. How are stakeholders classified?
o Stakeholders are classified into two main categories:
1. Direct (or primary) stakeholders
2. Indirect (or secondary) stakeholders
3. Who are direct stakeholders?
o Direct stakeholders are individuals or organizations directly involved in the
planning, execution, or administration of a project.
4. Who are indirect stakeholders?
o Indirect stakeholders are those who are not directly involved but have an interest
in the project.
5. Give examples of direct stakeholders.
o Examples of direct stakeholders include:

 Clients
 Project sponsors
 Project managers
 Project team members
 Technical and financial service providers
 Contractors and subcontractors
6. Give examples of indirect stakeholders.
o Examples of indirect stakeholders include:
 Internal managers and support staff
 HR and accounts departments
 Senior management
 Regulatory authorities (e.g., government agencies, public utilities,
professional bodies)
 Personal interest groups (e.g., labor unions, stockholders)
7. What are positive stakeholders?
o Positive stakeholders support the project’s objectives and contribute to its success.
8. What are negative stakeholders?
o Negative stakeholders oppose the project and may attempt to hinder its progress.
9. How can negative stakeholders impact a project?
o Negative stakeholders can delay approvals, increase project costs, create public
opposition, or even halt the project entirely.
10. Why is stakeholder management important?

 Effective stakeholder management ensures project success by maximizing support from

positive stakeholders and minimizing resistance from negative stakeholders.

11. How can project managers handle difficult stakeholders?

  Project managers can handle difficult stakeholders through diplomacy, negotiation,
public relations strategies, and expert legal or labor support.

12. What is the role of regulatory authorities in stakeholder management?

 Regulatory authorities can act as either positive or negative stakeholders by approving or

delaying project permits and enforcing regulations.

13. How can stakeholder analysis help a project manager?

 Stakeholder analysis helps project managers understand stakeholder interests, assess their
influence, and develop strategies to manage their impact on the project.

14. What factors determine stakeholder influence?

 Factors determining stakeholder influence include their level of interest, authority, ability
to affect project outcomes, and probability of taking action.

15. How can project managers maximize stakeholder support?

 Project managers can maximize stakeholder support by engaging stakeholders early,

addressing their concerns, maintaining transparent communication, and aligning their
interests with project goals.

CHAPTER 8

Here are some important questions with answers based on the topic Project-Success Criteria &
Key Performance Indicators (KPIs):

1. What are project-success criteria?

Answer: Project-success criteria are key attributes and objectives that determine whether a
project is successful. The most common criteria include completion on time, staying within
budget, and meeting performance and quality requirements. Other factors like safety,
sustainability, reliability, and business benefits may also be considered.

2. Why are project-success criteria important?

Answer: They help project managers define clear goals, set expectations, and measure the
effectiveness of a project. They also guide decision-making, resource allocation, and trade-offs
during project execution.

3. What are the common project-success criteria?

Answer:

 Time: Completing the project as scheduled.

 Cost: Staying within the allocated budget.
 Performance & Quality: Meeting the specified requirements.
 Safety: Ensuring a risk-free environment.
 Sustainability: Energy conservation, reduced carbon emissions.
 Reliability & Legacy: Long-term functionality and impact.

4. Can success criteria vary between projects?

Answer: Yes, success criteria depend on industry standards, organizational priorities, and
stakeholder expectations. For example, sustainability is more critical in construction, while
performance reliability is key in manufacturing.

5. What happens when success criteria conflict with each other?

Answer: Trade-offs may be needed. For example, if completing a project on time is non-
negotiable, costs may increase, or quality may be adjusted. However, some criteria (like safety
and compliance) cannot be compromised.

6. How did the Sydney Opera House challenge traditional success criteria?

Answer: The Sydney Opera House exceeded its budget, took much longer than planned, and was
considered too small for grand opera performances. However, it became an iconic landmark,
demonstrating that success is sometimes subjective and depends on public perception.

7. What are the key success factors in project management?

Answer: Success factors are elements that help achieve success criteria. These include:

 Clear project objectives

 Good planning & scheduling
 Effective time & financial control
 Strong performance monitoring
 Change control procedures
 Competent project management
 Motivated and skilled team
 Strong client and stakeholder relationships

8. What are Key Performance Indicators (KPIs)?

Answer: KPIs are measurable criteria used to track project progress and performance. They help
assess whether a project is on track to meet its success criteria.

9. What are examples of KPIs in project management?

Answer:

 Milestones: Design completion, testing, installation.

 Financial KPIs: Payment schedules, budget adherence.
 Performance KPIs: Output, reliability, efficiency.
 Sustainability KPIs: Energy consumption, carbon footprint.

10. Why are KPIs important in project management?

Answer: KPIs help monitor progress, identify risks early, and ensure the project stays aligned
with its objectives. They provide measurable data to support decision-making and accountability.

11. How should KPIs be integrated into a project?

Answer: KPIs should be established in the planning phase and continuously monitored
throughout the execution phase. They should be aligned with the project's objectives and success
criteria.

Would you like more questions or a deeper explanation on any topic? 😊

Here are some important questions with answers based on Organization Structures in Project
Management:

1. What are the three main types of project organizations?

Answer: The three main types of project organizations are:

1. Functional Organization
2. Matrix Organization
3. Project Organization (Taskforce)

2. What is a Functional Organization?

Answer: A functional organization consists of specialized departments (such as design,

production, marketing) that report to functional managers. It is ideal for routine operations where
there is little variation in the end product. Projects in such organizations are typically managed
within a specific department.

3. What are the advantages of a Functional Organization?

Answer:

 High efficiency due to specialization.

 Clear reporting and responsibility structure.
 Stable operations with well-established interdepartmental relationships.

4. What are the disadvantages of a Functional Organization?

Answer:

 Limited flexibility for managing large projects.

 Lack of cross-functional coordination.
 Departments may focus on their own goals rather than overall project success.

5. What is a Matrix Organization?

Answer: A matrix organization combines elements of both functional and project

organizations. Employees report to both a functional manager (for administrative matters) and a
project manager (for project-specific work). It allows resource sharing without disrupting normal
operations.

6. What are the advantages of a Matrix Organization?

Answer:

1. Efficient resource utilization across projects.

2. Integration of departmental expertise into projects.
3. No need for separate project facilities.
4. Career stability for employees within functional departments.
5. Quick response to scope changes.
6. Project manager does not handle staff-related issues.

7. What are the disadvantages of a Matrix Organization?

Answer:

1. Conflict of priorities between projects.

2. divide loyalty between functional and project managers.
3. Communication challenges if departments are geographically dispersed.
4. Increased executive management involvement to balance power dynamics.

8. What is the difference between a strong and weak Matrix Organization?

Answer:

 A strong matrix gives more authority to the project manager.

 A weak matrix gives more authority to the functional manager.

9. What is a Project Organization (Taskforce)?

Answer: A project organization (taskforce) is a dedicated structure where all team members
report directly to the project manager. It is ideal for large, complex projects that require full
control over resources and execution.

10. What are the advantages of a Project Organization?

Answer:

 Full control over all aspects of the project.

 Fast decision-making with short communication lines.
 Strong team coordination and motivation.
 Reduced risk of misunderstandings.

11. What are the disadvantages of a Project Organization?

Answer:

 High operational costs due to dedicated resources.

 Requires strong leadership and project management skills.
 Team members may face uncertainty after project completion.

12. How does financial accounting differ in project organizations?

Answer: In matrix and taskforce organizations, project accounting is used, where all incomes
and expenditures are tracked as if the project were an independent entity. This ensures proper
cost control and financial transparency