Project Managers Options and Cost Benefit Analysis - Admission/Application Essay Example

Essay 15 May Project Manager’s options and Cost Benefit analysis The given case study reveals the following facts: A graduate ofDrexel’s University, promoted to the position of Project Manager, has been supervising four subordinate engineers since last six months. One out of them is not up to mark and corrective efforts have not worked. HR does not intervene, hence the onus to resolve the issue, rests with P.M. P.M.is aware of the negative repercussions in case of a drastic step, therefore, prior to any execution, wants to conduct cost benefit analysis; primarily to facilitate decision making and secondarily to inform Top Management ,of his inference. . Prior to start working on it, P.M. will have to: Think of the options Collect and convert all the relevant data in one unit, say USD, for apple to apple comparison.

Convert all the tangibles or non-tangibles in the same unit ‘USD’. Take into account, both recurrent and non recurrent costs as well as benefits. Work out Net present value, cost Benefit ratio and Payback Period Decide which one is the best option. To inform Top Management accordingly to seek permission for implementation.. While considering the options, P.M. has to take the non performer ‘NP ‘into account ,being the real person at the core of the issue, and also a realistic comparison without this person ,would not be a meaningful exercise.

Another option can be t o sack NP and hire new person of equivalent background to take over. No matter, how experienced the newcomer might be, orientation period would be required and this ultimately would increase the cost ,at least in the initial phase. As third option, P.M. may decide to step down a bit, temporarily to strengthen the weak point. Normally, a supervisor is supposed to be capable of doing the subordinate job in the time of need. In the meanwhile, to fill the consequent gap, a rising star, from the rest of three engineers may be delegated a part of P.M, s job. This action will promote harmony and may even motivate NP on account of P.

M, s leadership by example. Last but not the least important option may be, that P.M. Communicates with a relevant university and offers to hire a fresh graduate .As the first job is quite an exciting experience, the new internee may learn at a faster pace and can be a good addition at a nominal, additional expanse. All, what is said upto now, if assigned as such ,to someone not used to this type of analysis, may confuse the things. It would therefore be opportune and institutional as well to convert it into a suitable template, preferably an excel spread sheet.

Right course of action to follow now, would be to assign this analysis to someone in accounts department. Cost benefit analysis, in simple words, is the difference of the cost benefit of a new product, service or situation compared with that of their current cost benefit . I the following page ,there is a simple template, prepared for the Project Manager ,who may forward it to the Accounts Department, with or without any a amendments. . Alternatives Description Cost Benefit Ratio Payback Period 1 The non performing engineer( NP) may be replaced by a new Engineer at the same salary Package     2 NP may be motivated through allowing him to talk more/artificial projection among others, in confidence     3 P.M.Makes a tag team of the three performers.

Steps down to make up some deficiency     4 P.M. Communicates with a relevant University offering internship for a fresh graduate with an intention to attach the internee with N.P. and support him to learn . P.M. may replace N.P. with internee once certain level of competence is achieved.     Comparative Cost Benefit Parameter Cost Benefit Alternates 1 2 3 4 1 2 3 4 Development Cost Operational Cost Non Recurring Recurring Present Value Net Present Value * Benefit Cost Ratio ** Payback Period Work Cited " Cost/Benefit Analysis Authorization Memorandum ." Web. 15 May 2011. . (" Cost/Benefit Analysis Authorization Memorandum ")