Assignment 1

Semester 2nd

Autumn 202

Allama Iqbal Open University Islamabad

Submitted by

Q.1 Discuss the concept and importance of feasibility testing in the planning process. Define
different measures that should be taken for plan feasibility testing.
ANSWER;

CONCEPT OF FEASIBILITY AND IMPORTANCE OF FEASIBILITY

What is feasibility
Feasibility study aims to provide an independent assessment that examines all
aspects of a proposed project, including technical, economic, financial, legal, and
environmental considerations. This information A then helps decision-makers
determine whether or not to proceed with the project.
"Feasibility studies are pieces of research done before a main study to answer the
question 'Can this study be done? ' They are used to estimate important parameters
that are needed to design the main study.
Feasibility in planning;
The feasibility plan centers on what your product or service is; the full business
plan builds on that analysis and expands on how you will execute it. A feasibility
plan also defines the product/service and outlines the operations of the project
clearly for stakeholders.
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Why You Should Conduct a Feasibility Study?

We all know that executing a project is not so easy. It’s a huge responsibility for
every single person involved – especially the project manager or the head of the
project.
With that being said, is important to identify the opportunities and threats
associated with the project. You need to take a deep dive into every aspect of the
project, and that’s exactly what a feasibility study helps you do.
Let’s understand it with an example. Knowing whether you’ve enough people to
complete a project isn’t really a “broader view”. To get the true big picture, ask
yourself:
Are the team members capable of working on the project? Will they be available
until the end? In case a team member isn’t available, do you have a backup plan?
When you conduct a feasibility study, it becomes easy to list down all the
strengths, risks, opportunities, and threats right at the beginning of the project,
making planning simpler!
With a foolproof plan in hand, your team members would be able to work
effectively and efficiently. Needless to say, without a plan, your entire project
might go sideways.

3. Straightforward Execution

Planning and execution always go hand in hand. After all, without a proper plan in
the back of your pocket, you won’t be able to execute the project properly.
When you conduct a feasibility study, you can create a rock-solid plan, which
paves way for execution. Execution involves cost, time, and resources, so always
analyze the viability of the project before starting it.

4. A Back-Up Plan

In case the project goes sideways due to some uncertainties or hindrances, an in-
depth feasibility study will allow you to develop an alternate plan immediately.
This will ultimately save cost, time, and resources! How? Because without a
feasibility study, you won’t be aware of other opportunities, and then you would
have to develop an alternate plan from scratch.
We know that we’ve convinced you to conduct a feasibility study before getting
your project off the ground. Now, let’s take a look at a few areas that a feasibility
study examines.

The 5 Types of Feasibility Study

1. Technical Feasibility
Technical feasibility is all about assessing whether your organization has the
technical resources and expertise needed to meet the requirements of the project.
It also involves evaluating the hardware, software, and all other technical
requirements of the project. For instance, you won’t put Star Trek’s transporter in
your office building, as it’s not technically feasible.

2. Economic Feasibility

To determine the financial viability of the project, you need to evaluate the
economic factors. You can conduct a cost-benefit analysis, which will help you
compare the project’s financial costs against the projected benefits.
This assessment also enhances project credibility and helps the decision-makers in
determining the positive economic benefits that the project will provide to the
organization.

3. Legal Feasibility

It goes without saying that your project must meet all the legal requirements. This
includes zoning laws, data protection acts, social media laws – basically every law
that applies to your project deliverables and activities.
For example, let’s say that you want to build a new office building somewhere. By
conducting a feasibility study, you’ll be able to determine whether the location is
ideal for your business or not.

4. Operational Feasibility

Operational feasibility involves analyzing whether your project matches your

organization’s resources, strategic goals, business objectives, and capacity
planning.
In simple words, operation feasibility refers to determining whether (and how well)
your organizations’ needs can be met by completing the project.
5. Time Feasibility

This assessment is super important when it comes to project success. After all, if a
project isn’t completed on time, it is bound to fail! In time feasibility, you estimate
the time needed to execute and complete the project.
Once that’s done, think about how your project timeline aligns with your current
operations, such as product schedule, demand planning, and more.
It’s time to explore the entire process of conducting a feasibility study. To make
things easier for you, we’ve broken up the process into seven steps. Let’s roll!
Technical feasibility;

1. Technical feasibility is all about assessing whether your organization has the
technical resources and expertise needed to meet the requirements of the
project.
It also involves evaluating the hardware, software, and all other technical
requirements of the project. For instance, you won’t put Star Trek’s
transporter in your office building, as it’s not technically feasible.
2. Economic Feasibility

To determine the financial viability of the project, you need to evaluate the
economic factors. You can conduct a cost-benefit analysis, which will help you
compare the project’s financial costs against the projected benefits.
This assessment also enhances project credibility and helps the decision-makers in
determining the positive economic benefits that the project will provide to the
organization.

2. Legal Feasibility

It goes without saying that your project must meet all the legal requirements.It
includes zoning laws, data protection acts, social media laws – basically every
law that applies to your project deliverables and activities.

For example, let’s say that you want to build a new office building somewhere. By
conducting a feasibility study, you’ll be able to determine whether the location is
ideal for your business or not
4. Operational Feasibility

Operational feasibility involves analyzing whether your project matches your

organization’s resources, strategic goals, business objectives, and capacity
planning.
In simple words, operation feasibility refers to determining whether (and how well)
your organizations’ needs can be met by completing the project .

5. Time Feasibility

This assessment is super important when it comes to project success. After all, if a
project isn’t completed on time, it is bound to fail! In time feasibility, you estimate
the time needed to execute and complete the project.
Once that’s done, think about how your project timeline aligns with your current
operations, such as product schedule, demand planning, and more.
It’s time to explore the entire process of conducting a feasibility study. To make
things easier for you, we’ve broken up the process into seven steps. Let’s roll!

How to Conduct a Feasibility Study? (Step-By-Step)

Step 1. Conduct a Preliminary Analysis

This is more of an exploratory step where you investigate and examine a variety of
methods to organize your business or position your product in the market.

Step 2. Time For Market Assessment

Through market assessment, you will be able to determine how viable your
proposed product or service is in the marketplace. It will also help you recognize
the demand for your product in the market.

In this step, identify the market opportunities for your project through focus
groups, interviews, and surveys. You should also observe what your competition is
doing in terms of marketing, services, and products.

Step 3. Study Your Organizational Structure

Once you’ve performed the above two steps, it’s time to get your organization
ready for the project. Study the staffing requirements, management and labor
alignment, start-up costs, and operational costs.
Start-up and operations costs include infrastructure, personnel, supply
convenience, marketing methods, equipment, and any known (or surprising cost)
that might occur during the project.

Step 4. Calculate The Financial Costs

In this step, the projected revenues, expenses, financial costs, and risks involved
with the project are studied. These costs might include human resources, materials,
third-party services, equipment, and more.
Along with that, during the financial assessment, you also need to assess what
impact the project will have on the bottom line of your organization – if it fails.

Step 5. Find Points of Vulnerability

Points of vulnerability are those facets that can hinder the project’s short-term or
long-term goals. That’s why it’s important to review and analyze them beforehand
so that they can be controlled or eliminated.
To identify points of vulnerability, think about problems and events that could
result in project delays or failure. Then, think about solutions that can help you get
rid of these problems.
Step 6. Present Your Results and Conclusions

The conclusion of your feasibility study is an in-depth outline of the various

scenarios that you have examined. If the results indicate that your project is
perfectly viable, you’re good to go!
However, there are times when the outcome of your study is neither positive, nor
negative, and the decision of whether to proceed ahead isn’t clear-cut.
You can use the information and insights from the study to gauge the trade-off
between the risks and rewards associated with the project and decide if you want to
pursue the project or not.
Sometimes, it seems really straightforward to gather, record, and present all the
feasibility study data . However, there are times when you keep running into one
challenge after the next while conducting the study, which slows you down (and
adds stress to your life).

What is feasibilty study ?

An analysis and evaluation of a proposed project to determine if –

1. it is technically feasible,
2. it is feasible within the estimated cost, and
3. it will be profitable.

Feasibility studies are almost always conducted where large sums are at stake.
Also called feasibility analysis.
What is the importance of a feasibility study?

Feasibility studies can identify the logistical, financial, and market challenges of a
proposed project by evaluating: What the estimate would be to fund the project.
When the potential business will offer a return on investment. The market for the
proposed product or service.

A feasibility study aims to objectively and rationally uncover the strengths and
weaknesses of an existing business or proposed venture, opportunities and threats
present in the environment, the resources required to carry through, and ultimately
the prospects for success.
Feasibility studies can identify the logistical, financial, and market challenges
of a proposed project by evaluating: What the estimate would be to fund the
project. When the potential business will offer a return on investment. The market
for the proposed product or service.

A feasibility study is conducted in order to determine the success and minimize

the risks related to the project. When it becomes certain that the specific project
could be carried out profitably, it is only then it could be implemented. The
feasibility study is not merely project research, but a framework or a plan on how
to establish and run business successfully in the long run. A feasibility study
contains five essential components, including market research, financial research,
management research, schedule determination and technical research.

 Marketing study: Marketing research is conducted to evaluate whether the

project is suited for the current and future organizational culture. In this
process, the consultants will look in finding data on overall impact on
business structure, employees an organization. Sale projection is also one of
the vital parts of market research. The main objective of marketing research is
to identify the target consumers, know the demand of the consumers,
understand the market characteristics and evaluate the factors that provide a
great impact on the buying decisions.
 Financial study: Financial planning is very important to handle the different
operations of the organization within the budget limits. In financial research,
the researchers cover the assessment of total capital requirements, sales and
prices, break even outputs, amount of sales required to attain profit in the
business. It helps entrepreneurs to get an idea about how much money is
required for handling a business project successfully.
 Management study: Management research is conducted to determine the
overall resources required for the successful completion of the project. Some
projects, like manufacturing will require more physical resource while some
IT project requires lots of human resources. Schedule study Schedule
feasibility is conducted to determine how much time and resources are
required to finish the project on time. As the feasibility research plays a vital
 role in the successful completion of the project. You need to hire professional
management consulting firms in order to get the right and effective report.
Gulf Resources is one of the top business management consulting firm that
conduct a Feasibility study in UAE for clients from various fields like
healthcare, food, engineering, cosmetic and body care shop

Example Of Feasibility Study

By following an example of feasibility study for any project, there is a decent
possibility you will have the capacity to cover the vital components to uncover all
the information that is required. This is vital on the grounds that a decent number
of elements about an project are dependent on this study for it to win the approval
of the partners.
Every example of feasibility study is extraordinary and these varieties ought to be
considered. The segments of the example will be extremely valuable as a guide,
however the content ought to be remarkable for your record.
One zone that might be comparative with your example of feasibility study and
the report you are making is the intended interest audience. There are just such a
large number of socioeconomics and age groups that a business can rely on for an
income stream. Therefore the manner in which they are reached with a positive
response ought to be copied or nearly followed in anticipation of a similar positive
response.
Other information that can be acquired from a example of feasibility study is the
coordination of providing the intended interest group. In the event that the
intended interest group is local, at that point the expenses are negligible. On the
off chance that the group of onlookers is in another area, at that point the cost of
providing the deliverable should be considered into the general money related cost
of the undertaking. One of the reasons for this sort of study is to decide the
gainfulness of the venture. This must be remembered.
The issues that were experienced in your case feasibility study ought to be
comprehended and analyzed. On the off chance that the issues or impediments
can't be defeated in a practical way, at that point another way ought to be
investigated. Regardless of what the result of the information, it should all be
archived so no inquiries emerge amid the audit procedure of your study.
These are a portion of the things that can be gained from a case feasibility study.
How you apply what you have realized will be the distinction if your arrangement
is acknowledged or denied.
The Examples of Feasibility Studies are:
Operational feasibility
It is measure of, how well the solution will work in the organization. it is
also the measure of, what people feel about the project/system
it is the measure of the practicality of a specific technical solution and the
availability of technical resource and expertise.
Schedule feasibility
it is a measure of, how reasonable the project timetable is.
Economic feasibility
it is measure of cost effectiveness of the system/project and its solution it is
often called cost benefit analysis.
Cultural Feasibility
What will be the impact of particular thing on both local and general
cultures? How they will respond to that. What type of implications does the
feasibility study have?
Legal/Ethical Feasibility
it is a measure of legal implications on the project, ethical
considerations. We need to make sure that project undertaken will meet all
legal and ethical requirements.
Resource Feasibility
Do we have enough resources, what resources and facilities will be
required for the project, etc.
Marketing Feasibility
Will anyone want the product once its done? What is the target demographic?
Should there be a test run? Is there enough buzz that can be created for the
product?
Real Estate Feasibility
 What kind of land or property will be required to undertake the project?
What is the market like? What are the zoning laws? How will the business
impact the area?
Managerial Feasibility Study
Managerial feasibility is measured by certain key elements like employee
involvement, demonstrated management availability & capability and
commitment.
Financial Feasibility Study

Validating that a project is possible within your financial constraints. For

example, a construction project that uses reference class forecasting as
a sanity check for project budget.

Q.2; Analyze the present procedure of selection and appointment at various levels of education.
Examine the sources of personnel recruitment for various jobs in education.

Answer;
In any kind of organization, recruitment and selection processes are considered
useful, because they help in finding the most suitable candidates for the jobs.
Recruitment and selection are important operations in human resource
management, designed to make best use of employee strength in order to meet the
strategic goals and objectives of the employers and of the organization as a whole.
It is a process of screening, sourcing, shortlisting, and selecting the right candidates
for the vacant positions. The employers put into practice recruitment strategies and
methods that would be the most beneficial to achieve organizational goals and
objectives. The main purpose of this research paper is to understand recruitment
and selection procedures. The main areas that have been taken into account
include, significance of recruitment and selection, principles of recruitment and
selection, factors affecting recruitment and selection, posting vacancies,
recruitment and selection process, types of recruitment and types of interviews.
Keywords: Recruitment, Selection, Candidates, Organizations, Jobs, Factors,
Interview
Introduction
Recruitment is the process of identifying, screening, shortlisting and hiring of the
potential human resources for the purpose of filling up the positions within the
organizations, it is the central function of human resource management.
Recruitment is the process of selecting the right person, for the right position at the
right time. The educational qualifications, experience, abilities and skills of the
individuals need to be taken into consideration, when recruitment takes place. It is
the process of attracting, selecting and appointing potential candidates to meet the
needs and requirements of the organizations. Recruitments takes place internally,
i.e., within the organization and externally, i.e., from the usage of external sources.
Internal factors include, the size of the organization, recruiting policy, image of
organization and image of job. External factors include, demographic factors, labor
market, unemployment rate, labor laws, legal considerations and competitors.
Efficiency in the recruitment processes generates productivity and builds a good
working environment and good relations between the employees. Selection is the
process of picking or choosing the right candidate, who is most suitable for the job.
It is the process of interviewing the candidates and evaluating their qualities, which
are necessary for a specific job and then selection of the candidates is made
for the right positions. The selection of right candidates for the right positions will
help the organization to achieve its desired goals and objectives. When selection of
the employees takes place, it is vital to ensure that they possess the desired
qualifications, skills and abilities that are required to perform the job duties in a
well-organized manner.
Recruitment is called a positive process with its approach of attracting as many
candidates as possible for the vacant positions. It is the process of identifying and
making potential candidates to apply for the jobs. On the other hand, selection is
called a negative process with the elimination of many candidates as possible.
There are numerous individuals, who apply for the jobs, but selection is made only
of those individuals, who are qualified and proficient. Selection is important, the
reason being, hiring of good resources can help in increasing the overall
performance of the organization. Both the processes of recruitment and selection
are considered important for the effective functioning of the organizations and they
take place simultaneously. They are imperative for growth and development of the
organization.
Significance of Recruitment and Selection
The recruitment and selection of the individuals within the organizations result
from a thorough and a systematic process. The employees need to possess
complete knowledge of the strategies and methods that are required to get
implemented for recruitment and selection. Legislation and good practice and the
range of recruitment sources and selection methods as well as possessing the skills
and abilities in interviewing and evaluating potential employees highlight the
significance of recruitment and selection. The areas that highlight the significance
of recruitment and selection have been stated as follows:
When job vacancies arise within the organizations, then the employers give due
consideration to the recruitment and selection processes. These processes enable
the employers to identify and analyze the positions that are required to get filled in
order to achieve the desired goals and objectives. Vacant positions within the
organizations signify the lack of human resources and these are regarded as
barriers within the course of implementation of tasks and in the achievement of
goals and objectives. Thus, whether it may take place on an immediate basis or
may be a time-consuming process, importance of these processes is recognized
during the time of job vacancies. Resources are considered as the most important
asset of any organization, hence, hiring the personnel with appropriate skills and
abilities is important. The patterns of recruitment and selection differ from one
company to another. When machines, equipment in inorganization. For meeting
the goals and objectives of the organization, it is vital to evaluate the various
attributes of each candidate, such as their qualifications, skills, abilities,
experiences, personality, nature and overall attitude. The other candidates, who
have not found to be suitable to carry out the job duties are eliminated. The
organization is required to follow appropriate selection processes, the reason being,
if the selection is not carried out in an appropriate manner, then it would impose
unfavorable effects upon the organization and loss would be incurred to the
employer in terms of money, time, and efforts.
Principles of Recruitment and Selection
The principles of recruitment and selection have been stated as follows:
The first point to identify about recruitment is that it is a process with a number of
key stages, all of which work in co-operation to improve one’s chances of finding
the best candidates available for any advertised position. The candidates are
required to go through various stages and they are given certain tasks or go through
various rounds of interviews, which they have to accomplish in order to get
selected. In some cases, final round of interviews, include only two people, one is
selected and the other one gets rejected.
It is worth giving indications that in terms of leading, guiding and managing
employees, if one is not recruiting the best people available, then it is always going
to be challenging to manage them on daily basis.
Another general rule is, when seeking to fill any job vacancy, one should always
consider the internal candidates that could be encouraged to the available post and
then recruit externally for the junior position.
Too often senior managers pay less attention to the recruitment process and only
become actively involved when a senior post is being filled, or at the end of the
process for the final interview. This is an error and one should be concerned with
the eminence and appropriateness of every employee, who joins the business.
It is often assumed that interviewing is something that any experienced manager
can carry out. It involves open ended as well as close ended questions. Interviews
can be conducted by anybody, but it is important that individuals can do it well, if
they are appropriately trained and possess effective communication skills. It is not
worthwhile to conduct interviews without acquiring proper training.
There are many legal issues that are associated with the recruitment process and it
is necessary for all the individuals to familiarize oneself with the relevant
legislation. It is vital for the members of the organization to become familiar with
the policies and procedures that are required in the recruitment and selection
processes.

Factors affecting Recruitment and Selection

The factors affecting recruitment and selection are organized into the internal and
the external categories. The internal factors have been stated as follows:
Size of the Organization - The size of the organization is one of the most important
factors affecting the recruitment process. To develop business, recruitment
planning is mandatory for hiring more resources, which will be crucial in the
management of future operations.
Recruitment Policy - Recruitment policy of an organization, includes hiring from
the internal or external sources of organization. It is an important factor, which
affects the recruitment process. It identifies the objectives of recruitment and
provides a framework for the implementation of recruitment programs.
Image of the Organizations - Organizations having a good positive image in the
market can easily attract competent and proficient resources. Maintaining good
public relations, providing public services, and leading to goodwill of the
organizations, definitely helps an organization in improving its reputation in the
market, and thereby draw the best possible human resources.
Image of Jobs - Just like the image of the organization, the image of jobs
contributes acritical role in the recruitment and selection processes. Jobs having a
positive image in terms of better remuneration, promotions, recognition, and
amiable working environment with career development opportunities are
considered as the characteristics to arouse interest and enthusiasm within qualified
candidates.
The external factors have been stated as follows:
Demographic Factors - Demographic factors are related to the characteristics of
potential employees such as, their age, religion, educational qualifications, gender,
occupation, economic status, and place of location.
Labor market – Labor market exercises control on the demand and supply of labor.
For example, if the supply of people having specific skills and abilities is less than
the demand, then the hiring will require more efforts. On the other hand, if the
demand is less than the supply, then hiring will be relatively more manageable.
Unemployment rate – If the unemployment rate is high in a specific area, hiring of
human resources will be simple and manageable, as there will be an increase in the
number of applicants. For various job positions in all types of organizations, large
number of applications are received. In contrast, if the unemployment rate is low,
then recruiting tends to be difficult due to lesser number of resources.
Labor laws – Labor laws reflect the social and political environment of the market,
which are created by the central and the state governments. These laws dictate the
compensation, working environment, safety and health regulations, and the job
duties of the workforce, for different types of employments. As the governments
undergo transformations, there are transformations that come about in the labor
laws.
Legal considerations – Job reservations for different castes such as Scheduled
Tribes, Scheduled Castes, and Other Backward Classes are the best examples of
legal considerations. These considerations, passed by government, will have a
positive or negative impact on there curettement policies of the organizations.

Competitors – When organizations in the same industry are competing for the best
qualified resources, there is a need to analyze the competition and make provision
of the resources packages that are finest in terms of the industry standards. Equal
Opportunity – When recruitment and selection of the employees take place, then it
is vital to take into consideration, equal employment opportunities for the
individuals. Equal opportunity results when all the applicants are treated on an
equal basis and consistently at every stage of recruitment. There should not be any
discrimination against anybody on the basis of factors, such as, caste, creed, race,
religion, ethnicity, gender and socio-economic background. Fairness and justness
are of principal significance in the recruitment and the selection processes
Posting Vacancies
Job posting refers to the practice of publicizing and displaying advertisements of
an open job to the employees. In most cases, internet, newspapers, notices and
bulletin boards are the areas where job postings are found. These include, listing of
the attributes, such as, designation, criteria of knowledge, qualifications, skills and
experience. In some cases, they also specify the salary package. The purpose of
posting vacancies is to bring to the attention of the interested persons, they may be
internal or external to the organization and the jobs that are to be filled. Before
posting vacancies, important areas that need to be taken into consideration by the
employers include.
Whether the retention of the job is done in the present form with the title,
remuneration or status or whether any changes are required to be brought about.
Each hiring unit is responsible for determining its hiring needs, requirements and
the scope and responsibilities of the proposed individuals. The nature of the
recruitment options will vary based on the purpose for which hiring is carried out.
The various positions within the organizations or educational institutions include,
clerical, technical, administrative, managerial and so forth. The skills, abilities and
experience of the employees would remain the same or any changes are required to
be brought about in the personality characteristics of the individuals, before the
processes of recruitment and selection takes place.
Are there efficient, competent, practiced and experienced applicants serving in
other positions within the organization, who may be potential candidates for the
job. Job rotation is considered vital in all types of organizations to improve
employee morale, so that they do not find their job duties monotonous and tedious.
Job rotation helps in the development of skills and abilities of the employees and
make them familiar with other functions and tasks within the organization. It helps
the employees in gaining knowledge and experience.
Whether the existing organizational policy for recruitment is still applicable. For
example, referrals of the employees by the staff members, friends or family
members are still an acceptable way of filling vacancies.
Whether the organization considers external sources as the most effectual means of
recruitment. Whether external sources are regarded as more beneficial to the
organizations in the long term, when they are recruiting individuals from external
sources.
Necessary is the availability of the functional human resource information system
that supports recruitment. In the present existence, there has been extensive
utilization of technology in the recruitment and selection procedures. A
computerized system would have the following features:
Forthcoming vacancies within the organizations need to ensure that capable and
proficient individuals are recruited on time, in order to avoid any kind of delay in
the production processes.
In some cases, recruitment and selection processes require number of rounds,
which the individuals have to go through. They may even take 10 to 15 days of
time, especially for leadership and higher-level positions within the organizations.
It needs to be ensured that candidates systematically move through the process and
are kept informed of their status.
Ensure that qualified candidates, whose applications are pending should be
communicated with to maintain their interest within the organization. As these
candidates are valuable and would be dedicated towards the accomplishment of
goals and objectives.
Assist in analyzing appointment, transfer and exit trends and provide other data
that leads to the facilitation of planning, organizing, evaluating and assessing the
recruitment process.
Identify any antagonistic impacts of the recruitment process on vulnerable and
marginalized groups. For example minorities, especially where Equal Opportunity,
Affirmative Action legislation exists.
For internal recruiting, control of the internal job posting process, creation of the
notices, and then matching the internal applicant qualifications with job
specifications is crucial. Where jobs are not being posted, creation of a list of
qualified internal candidates is necessary.

Recruitment and Selection Process

It is important that the job announcements should be made available to all the
employees. Satisfactory job postings can ensure that minority workers and other
individuals belonging to disadvantaged groups and economically weaker sections
of the society are aware of the opportunities within the organization. The weakness
to the job positing is employee pessimism that occurs when jobs are posted as
open, but in reality, the organization has already selected a strong internal
candidate. Such practices generate antipathy and is belief among employees, when
they believe the job posting is just a formality with less real opportunity for
advancement.
The elements in the recruitment and selection processes have imperative
contributions to make in helping find most suitable candidates for the given posts.
The elements have been stated as follows:
Job Vacancy – The first step is when vacancy arises within the organization. One
should be aware of the vacant positions and by when they should get filled with
capable employees. Job vacancy enables the individuals to determine the factors,
such as, redesigning, or initiating part time employment opportunities for the
individuals. In some cases, vacant positions may get filled with qualified
candidates rapidly, whereas in others, it may be a time-consuming process. One
should implement measures to reduce the risks associated with recruitment. The
existing employees should see that there is a potential career path within the
organization, which may motivate them to stay longer.

Job Analysis – Two main factors need to be taken into consideration regarding job
analysis. First is expectation of the employers from their employees, within the
organization, the employers have certain expectations from their employees
regarding performance of job duties, and they expect them to inculcate the traits of
regularity, diligence, resource fulness, conscientiousness and creativity. The other
areas that need to be taken into consideration are the characteristics of the job.
These include, training, work experience, skills and knowledge, physical attributes,
personality traits, communication skills and personal circumstances. Development
and utilization of well-structured questions based on the profile of the employees
will help in getting the better insight of the true personality of the candidate.

Attracting Candidates – In attracting candidates for the jobs, there are two
important sources that need to be taken into consideration, internal recruitment and
external recruitment. In the case of internal recruitment, the following advantages
are, it reduces recruitment costs, internal employees are already familiar with all
the aspects of the organization, its goals, objectives etc. It can act as a motivating
factor for others in the business by displaying that it is possible to acquire
promotional opportunities and the employers are already familiar with the person,
within the organization. Sources of external recruitment includes, websites,
advertisements in newspapers, journals, magazines, recruitment agencies,
consultants, employment fairs, and seminars.

Screening Candidates – The purpose of the screening process is to narrow down

the field, so that one is able to spend more time with the candidates for formal
interviews. Large numbers of applications are received for the positions, and all the
applicants are not called for the interviews, hence, it is vital for the employers to
screen the candidates to select the most suitable ones for the interviews. In the
number of applications received, screening is done on the basis of factors such as,
educational qualifications, experience, skills, and so forth. When this process has
been effectively implemented, only then the screening process takes place. After
the screening process is implemented in an adequate manner, then interviews are
organized for the candidates.

Interviewing Candidates – The important aspects that need to be taken into account
for interviewing candidates include, ensuring that proper notice is given regarding
the date and time of the interview, ensuring that the candidates are aware that they
should reach the premises on time, ensuring that they are clear where to go and
whom they should contact on arrival and ensuring that they are aware of the
documents that need to be brought along in the interview. These aspects contribute
in preparing the candidates on the complete basis for the interview. The employers
or the interviewers need to review the resume and all the job applications before
interviewing the candidates. It is vital to implement time management skills for the
interview processes, so that they can be completed on time. Selecting and

Appointing Candidates – The methods of selecting and appointing candidates are

different in various organizations. The procedures generally include the steps, such
as, the selection of the candidate, verbal communication of his or her appointment,
medical completed if appropriate, sending of appointment letters and signing the
contract. Selecting and appointing candidates depend upon the urgency of getting
the vacancy filled. When job vacancies are to be urgently filled, then selecting and
appointing of candidates may take place immediately after the interviews. In some
organizations, candidates are appointed on an immediate basis, after their selection
and other formalities, such as giving appointment letters or signing the contract.

Induction and Training – Induction is the process of receiving and welcoming of

the employees, after they have been selected and providing them the required
training needed to settle down adequately. Induction has three aims, to smooth the
early stages, when everything is likely to be extraordinary and unfamiliar to the
new employees. To establish a positive attitude of the organization within the
mind-sets of the employees, so that they are likely to stay for a long term and to
obtain effective output from new employees in short period of time. Training is
referred to making use of methods and strategies to enhance the awareness,
knowledge and information among the employees. Various training methods
include, roleplays, vestibule training, field visits, and lectures. The employees
should receive on the job and off the job training to generate information regarding
history, personnel, goals and performance of job duties. The main purpose of
training is to balance the needs and requirements of the organizations and human
resources.
Employee Evaluation – Monitoring the performance of the employees is an
essential aspect within the organization. It is necessary to evaluate the employees
from time to time in order to monitor enhancement of productivity and their
performance. The methods of employee evaluation help in identifying the
limitations and the measures that are required to get implemented to improve them.
Monitoring the performance of the employees is stated as an on-going activity and
new employees can be trained in a better way to enhance productivity. The
evaluation process can tell whether the recruitment process is working efficiently
or are there any changes and transformations that need to be brought about. The
main purpose is to ensure that the quality of the employees get enhanced that are
recruited within the organizations. This is imperative to improve employee
productivity and to achieve the organizational goals and objectives.
Types of Recruitment
Types of recruitment are broadly classified into two different categories. These are
the internal sources and the external sources. Internal sources of recruitment refer
to the hiring of employees within the organization internally. In this case,
applicants are seeking different positions and are those who are currently employed
within the same organization. At the time of recruitment of employees, main
consideration is given to those employees, who are currently working within the
organization. This is an important source of recruitment, which provides the
opportunities for progress and use of the existing resources within the organization.
Internal sources of recruitment are the finest and the stress-free way of selecting
human resources as their work performance and other qualities are already known
to the organization.
The internal sources have been stated as follows:
Promotions - Promotion refers to advancement of the employees by evaluating
their job performance. When the employers, managers and supervisors feel
satisfied with the performance of the employees, they promote them to an upper
level within the organization and it leads to an increase in pay and benefits. It is the
process of shifting an employee from a lower position to a higher position with
more responsibilities, remuneration, facilities, and status. Internally, many
organizations fill the vacant positions at higher levels with the process of
promotions.
Transfers – Transfer refers to the process of interchanging from one job to another
without any change in the designation and responsibilities. It can also be the
shifting of the employees from one department to another department or from one
location to another, depending upon the requirement of the position. Transfers are
normally based on the job requirements and the capabilities of the employees. If
the organization has two branches, then it may take place between two branches.
The internal shifting of the employee from one branch to another is known as
transfer.
Recruitment of Former Employees – Recruitment of former employees is a process
of internal sources of recruitment, wherein the ex-employees are called back,
depending upon the requirement of the positions. This process is cost effective and
saves plenty of time and money. The other major benefit of recruiting former
employees is that they are well aware of the organization, the roles and
responsibilities of the job and personnel. The employers are well versed with their
personality traits and approaches and the organization is not required to undertake
much stress regarding their training and development.
Internal Advertisements or Job Postings - Internal advertisements are referred to as
the processes of posting and advertising jobs within the organization. These job
postings are an open invitation to all the employees within the organization, where
they can apply for the vacant positions. It makes provision of equal opportunities
to all the employees. Hence, the recruitment will be carried out from within the
organization and it involves less expenses.
Employee Referrals - Employee referrals are an operative way of sourcing the right
candidates at a low cost. It is the process of hiring new capitals through the
references of the employees, who are currently employed within the organization.
In this process, the present employees can refer their friends and relatives for
filling up the vacant positions. Organizations inspire employee referrals, the reason
being, it is lucrative and saves time as compared to hiring candidates from external
sources. In most cases, employees are stimulated and motivated towards the
performance of job duties, by giving them benefits, incentives and rewards for
their performance.
Previous Applicants – In this case, the hiring team examines the profiles of
previous applicants from the organizational recruitment database. These applicants
are those, who have applied for jobs in the past. These individuals can be easily
contacted and the response will be positive in most cases. It saves cost and
employees are well aware of all the features of the organization and the
performance of their job duties. It is also an economical way of filling up the
vacant positions. External sources of recruitment refer to hiring of the employees
outside the organization externally. In other words, the applicants seeking job
opportunities in this case are those, who are external to the organization. External
employees bring innovativeness, resourcefulness, creativity and new thoughts and
ideas to the organization. Although hiring through external sources is an expensive
and a difficult process, it has great potential of driving the organization towards the
achievement of goals and objectives.
The external sources have been stated as follows:
Recruitment - Direct recruitment refers to the external source of recruitment, where
the recruitment of qualified candidates are carried out by putting a notice regarding
job vacancy on the notice board of the organization. This method of sourcing is
also called as factory gate recruitment. This is in most cases used to recruit blue
collar and technical workers.
Employment Exchanges - As per the law, for certain job vacancies, it is
compulsory that the organization provides details to the employment exchange.
Employment exchange isa government entity, where the details of the job seekers
are deposited and given to the employers for filling the vacant positions. This
source of external recruitment I accommodating in hiring of the unskilled, semi-
skilled, and skilled workers.
Employment Agencies – Employment agencies are external sources of recruitment.
They are functioned by various sectors, such as private, public and government. It
provides, unskilled, semi-skilled and skilled resources in accordance to the needs
and requirements of the organizations. The job seekers usually register themselves
with employment agencies and in this way, they have a database of qualified
candidates and organizations can use their services at the time of requirement.
Advertisements - Advertisements are the most prevalent and common external
sources of recruitment. The job vacancy is displayed through various print and
electronic media with a specific job description and specifications of the
requirements. Advertisements regarding jobs are displayed in newspapers,
magazines and on the websites. Making use of advertisements is the best way to
source candidates in a short span and it provides an efficient way of screening the
specific requirements of the candidates.
Professional Associations - Professional associations can help the organizations in
hiring professional, technical, and managerial personnel, however, they focus on
sourcing mid-level and top-level resources. There are many professional
associations that perform the roles of facilitators between the organizations and the
job-seekers.
Campus Recruitment - Campus recruitment is an external source of recruitment,
where the educational institutions such as, colleges and universities make provision
of information to the students regarding employment opportunities. It is when
opportunities are made available for hiring students. In this process, the
organizations visit technical, management, and professional institutions for
recruiting students directly for new positions.
Word of Mouth Advertising - Word of mouth is an imperceptible way of sourcing
the candidates for filling up the vacant positions. There are many reputed
organizations with good image in the market. Such organizations only need a
word-of-mouth advertising regarding a job vacancy to arouse interest and
enthusiasm among large number of candidates.
Types of Interviews
An interview is a determined exchange of notions, the answering of questions and
communication between two or more persons. Normally, an interview is a process
of private conversation between people, where questions are asked and answers are
obtained. The main purpose of the interviews is to acquire information about
qualities, attitudes, prospectus and so forth. In various types of interviews,
interviewers examine the behavior and communication abilities of the candidates.
An interview refers to a discussion with one or more persons acting as the role of
an interviewer, who ask questions and the person, who answers the questions acts
as the role of an interviewee. The primary purpose of an interview is to transfer
information from interviewee to interviewer. Interviews can be either formal or
informal, structured or unstructured. Interviews can be carried out on a one-to-one
basis or ingroups, they can be conducted over telephone or through video
conferencing.
The ten different types of interviews have been stated as follows: Structured
Interview - In this type, the interview is planned, designed and detailed inadvance.
A structured interview is pre-planned, precise, and reliable in hiring the candidates.
Unstructured Interview - This type of interview is an unexpected one, where the
interview questionnaire is not prepared. The interviewers are not well prepared
regarding the questions that are to be asked and in obtaining accurate answers.
Here, the usefulness of the interview is less and there is a waste of time and effort
of both the interviewer and the interviewee to a large extent.

Group Interview - In this type of interview, all the candidates or a group of

candidates are interviewed together. Group interviews are conducted to save time,
when there are large number of applications received for limited job vacancies. In
this case, a subject will be given to the candidates to get engaged in group
discussions and the interviewer judges the innovativeness and behavior of each
candidate within the group.
Depth Interview - Depth interview is a semi-structured interview, where the
candidates have to give detailed information about their educational qualifications,
work experience, special interests, skills, aptitude and so forth. In this case, all the
information about the candidate is known first and then the interviewer takes a
depth interview and begins analysing the expertise and proficiency of the
candidate. This interview enables the interviewer to acquire detailed information,
so that the selection process becomes more manageable.
Stress Interview - Stress interviews are conducted to ascertain how a candidate
would react during the time of stress and cope up with problems. In this type of
interview, the interviewer will come to know whether the candidate can deal in an
effective manner with the demands and needs of a complicated job. The candidate,
who maintains his self-control during a stress interview is normally the right
person to handle a stressful job.
Individual Interview - In an individual interview, the interview takes place on a
one-to-one basis. In this case, there will be a verbal and a visual interaction
between two people, an interviewer and a candidate. This is a two-way
communication interview, which helps in finding the right candidate for a vacant
job position. In this case, an interviewer may make use of open-ended and close-
ended questions. Open-ended questions may involve elaborate explanations of the
answers and close-ended questions involve one-word answers, such as yes, no etc.
Informal Interview - Such interviews are conducted in an informal way, i.e., the
interview will be stable without any written communication and can be arranged at
any place. There are not any proper procedures of asking questions in this type of
interview and it is not adequately structured. It is more like an informal
conversation between the individuals and takes place in a friendly manner.
Formal Interview - A formal interview is organized in an informal manner, i.e., the
candidate will be aware about the dates and timings of the interview well in
advance and the interviewer plans and prepares the questions for the interview.
This is also called as a planned interview. In this case, the interviewee is supposed
to provide accurate answers to all the questions asked by the interviewer.

Panel Interview - Panel interview, as the name indicates, is being conducted by a

group of people. In this type of interview, three to five members of the selection
committee will be asking questions to the candidates on various concepts. The final
decision of selection of the candidates will be taken by all the members of the
panel collectively.
Exit Interview - Exit interviews are conducted for those employees, who want to
leave the organization. The significance of the exit interview is to ascertain the
reasons behind leaving the job. There are several reasons for which the employees
leave jobs, such as, transfer to another location, health problems, promotional
opportunities in other organizations, availability of rewards and incentives in other
organizations, family issues and so forth.
Conclusion
Human resources are stated to be an integral part of any organization. The jobs,
functions, tasks and operations can be adequately performed by proficient and
skilled personnel. Therefore, within the organizational structure, it is vital to
implement effective recruitment strategies and selection processes. When the
members of the organization area ware of proper recruitment and selection
processes, then they are able to make selection of human resources in an
appropriate manner. There are numerous job duties and functions within the
organization and performance of all kinds of tasks and operations require skills and
abilities, which can be honed by making provision of adequate training to the
personnel. The individuals hired may be experienced and knowledgeable, but they
do experience changes and transformations within the organizations regarding
various aspects, such as, the working environmental conditions, performance of job
duties, attitudes and behavioral traits of the employers, methods to enhance
productivity, utilization of innovative techniques and methods and so forth. When
the employees are selected, it is important that they should be loyal and dedicated
towards the organizations. They should be committed towards the performance of
job duties and possess the traits of resourcefulness, diligence, and
conscientiousness. Finally, it can be stated that organizations are required to put
into practice recruitment and selection processes with accuracy, precision and
truthfulness.

Q.3 Evaluate the stages of project planning process. Why projects failed after
careful planning. Write your point of view practical examples from the educational
projects.

The project planning process starts before work on the actual project begins and
continues throughout the life cycle of the project. Its main goal is to adequately
plan the time, cost and resources needed for the project and thus to minimize risk.
The main output of the project planning process is the project plan (or project
management plan), which includes the project schedule as well as various
supporting plans.
The following is a simple guide that explains the basic steps of project
management planning. Note that the suggested order of the steps is not binding,
although it is applicable to most scenarios.

Step 1: Identify Project Stakeholders

Start your project planning process by identifying the stakeholders of your project.
Project stakeholders are individuals, groups, or organizations who may affect or be
affected by a project. They include:

 The project sponsors

 The project leader
 Project team members
 Project testers
 Contractors
 Consultants
 Customers and clients
 Users of the project output
 Groups impacted by the project
 And others

The task of stakeholder management starts with the identification of all

stakeholders but doesn’t end until the project itself is completed. Throughout the
life cycle of the project, stakeholders need to be managed, that is, updated about
project progress and their feedback taken into consideration. Good
communication is key, and it is the job of the project manager to maintain a
productive dialog with everybody involved in and affected by the project, not only
the core project members.

On the other hand, some projects may be so large and complex that you aren’t able
to give all stakeholders an equal amount of attention. In this case, it’s important to
identify the key stakeholders, i.e. those who can make or break the success of your
project. Key stakeholders can include the project sponsor (the individual with
overall accountability for the project) and senior management. Prioritizing the
needs and objectives of key stakeholders will help increase the chances of your
project’s success.

Step 2: Identify Project Goals and Objectives

A project’s goals and objectives depend on the needs of the project stakeholders.
Therefore, knowing who your stakeholders are and what their needs are is the first
step in determining your project’s goals. A good way to determine stakeholders’
needs are stakeholder interviews, which you should conduct at the very beginning
of the project planning process.

Tip: You can take notes during these interviews and save them directly in a project
stakeholder mind map, similar to the one pictured above.

Once you have a clear overview of your (key) stakeholders’ needs, you can turn
them into a set of measurable goals, following the SMART principle:

 Specific
 Measurable
 Agreed
 Realistic
 Time-bound

Goals vs Objectives

Project goals are the desired outcomes of a project, which can be formulated into
broad statements such as “Increase the number of website visitors by 30% by the
end of the year” or “Collect 500 sales qualified leads within the next three
months”. A project can have multiple goals.

Goals are about WHAT the project needs to achieve. Objectives, on the other hand,
are about HOW these goals can be achieved. Each goal can thus have a number of
objectives.

Example:

Goal:

 Collect 500 sales qualified leads within the next three months

Objectives:

 Create a white paper about the benefits of agile task management to collect
marketing qualified leads
 Set up a campaign on LinkedIn to send potential leads to the white paper
landing page
  Follow the white paper up with a webinar to turn readers into sales qualified
leads

Step 3: Identify Project Deliverables

Project deliverables are the tangible products that are produced or provided as a
result of the project. We can generally distinguish between two types of
deliverables:

1. Project deliverables, such as the project plan, minutes, or reports.

2. Product deliverables, such as intellectual material, consumer goods,
contracts, and so on.

Deliverables have the following attributes:

 They can be intended for both internal and external stakeholders: Minutes,
for instance, may be intended for the core project team, while official reports
may be created to keep the client or other external stakeholders informed.
 They usually have a due date: Due dates are an important part in project
planning — this is true for goals, objectives, deliverables, and individual
tasks.
 They may represent stages of a project: Phases or stages of a project may be
represented by major deliverables. In case of a new mobile app, for instance,
deliverables/phases could include: 1. App concept, 2. Mockup, 3. Design,
and 4. Functioning prototype.
 They may represent individual tasks within a project: Individual tasks can
produce deliverables, but oftentimes multiple (dependent) tasks have to be
completed in order to create a deliverable.

Deliverables vs Objectives

Project deliverables and project objectives are closely related, but they are not the
same thing. You may need one or multiple deliverables to fulfill an objective, or
you may be able to fulfill multiple objectives with just one deliverable.

Example:

Objective:
  Set up a campaign on LinkedIn to send potential leads to the white paper
landing page

Deliverables:

 White paper landing page

 LinkedIn ad
 Campaign report

In this example, there is a logical order in which the deliverables will be due: first,
the landing page needs to be created, then the ad campaign, and lastly, after the
campaign is finished, a report about the success of the campaign can be written up.

Note that in this example, each deliverable can be broken down further into
individual tasks, which themselves may be assigned to different project members.
The creation of a landing page, for instance, may require content from the
copywriter, a design from the UI designer, and implementation from a developer.

Step 4: Create the Project Schedule

In traditional project management, the project schedule lists all activities and
deliverables with their intended start and end dates, and thus provides a timeline
for the entire project.

To work out the schedule for your project, you will need to:

 Define activities based on your objectives and deliverables

 Break activities down into tasks
 Estimate the time each task will take
 Locate task dependencies and accommodate them in the schedule
 Assign (human) resources to the tasks

Once you know exactly what needs to be done, who will do it, and how long
everything takes, you can work out the entire project schedule. While simple in
theory, this is probably one of the most difficult areas within the whole project
planning process.
If you can’t rely on experiences gathered from previous projects, accurately
estimating how long tasks will take is the first difficulty. And even if you work out
the perfect schedule on a task level, this plan is of little worth unless you’ve also
created a viable resource schedule.

Human resources especially are difficult to manage, as their needs and

availabilities often can’t be predicted with a 100% accuracy. Project members may
get sick, go on vacation, or simply work slower than anticipated. If not scheduled
properly, one resource may also be needed for two different activities at the same
time, sometimes resulting in disputes between stakeholders about which task needs
to be prioritized.

In traditional project management, the project schedule lists all activities and
deliverables with their intended start and end dates, and thus provides a timeline
for the entire project.

To work out the schedule for your project, you will need to:

 Define activities based on your objectives and deliverables

 Break activities down into tasks
 Estimate the time each task will take
 Locate task dependencies and accommodate them in the schedule
 Assign (human) resources to the tasks

Once you know exactly what needs to be done, who will do it, and how long
everything takes, you can work out the entire project schedule. While simple in
theory, this is probably one of the most difficult areas within the whole project
planning process.

If you can’t rely on experiences gathered from previous projects, accurately

estimating how long tasks will take is the first difficulty. And even if you work out
the perfect schedule on a task level, this plan is of little worth unless you’ve also
created a viable resource schedule.

Human resources especially are difficult to manage, as their needs and

availabilities often can’t be predicted with a 100% accuracy. Project members may
get sick, go on vacation, or simply work slower than anticipated. If not scheduled
properly, one resource may also be needed for two different activities at the same
time, sometimes resulting in disputes between stakeholders about which task needs
to be prioritized.

Step 5: Create Supporting Plans

Your project plan needs to include all the information necessary to manage,
monitor, and complete the project successfully. Aside from the project schedule,
the stakeholder list, the goals, and objectives, the document usually includes
various supporting plans that cover the following areas:

 Scope Management
 Resource Management
 Requirements Management
 Communications Management
 Quality Management
 Project Change Management
 Procurement Management
 Risk Management

Step 6: Outline the Project Plan

Now that you know the contents of a project plan, it’s time to look at how
the project plan document is structured. By default, a project plan starts with
an executive summary that provides an overview of the entire project management
approach, followed by the project scope, goals and objectives, schedule, budget,
and other supporting plans.

Before you open a blank text, document and start to write, it can be helpful to
create a simple project plan outline. You can use a mind map tool or similar
diagramming software for this purpose. Outlining your project plan in a mind map
will help you collect all important information on a single page, visualize
dependencies, and highlight open questions and issues that still need to be
addressed.
Reasons for project failure

Poor planning
Although sometimes overlooked in importance, lack of planning can make a
project fail. Having a successful project depends on properly defining in detail the
scope, the time frame, and each member’s role. This way, you’ll have a route laid
out to follow.
Inconsistently defined resources
Let’s be clear: planning shouldn’t be limited to agendas, meetings, and
responsibilities. It should also include human, intellectual, financial, or structural
resources. If these are not consistently determined, deadlines can’t be met, which
can jeopardize the project’s conclusion.
Unclear objectives
Project objectives should be clearly defined, so as time goes by, you’ll know if
you’re doing what’s right or not. Remember that choosing measurable goals helps
you better visualize your progress and helps you see how close you are to
achieving your results.
Lack of detail control
Monitoring is essential for successful projects, even knowing the details of many
projects simultaneously can be very challenging.
As a result, it’s important to know how your project is going, if it is on schedule
and if the budget is under control. This way, if there are any divergences from the
initial plan, you can still correct them.
Lack of transparency
It’s essential that everyone involved in the projects have complete project
visibility so that it doesn’t fail – not only the project manager, but other team
members too.
This includes clear communication, good document management, and transparency
about tasks’ status, all of which can be achieved with centralized, all-digital files.
Lack of communication
Communication is the key to good project management. Without the right tools
and processes to allow interaction among team members and the project manager
from the beginning, efficient communication can seldom be achieved.
Change of direction
Among the ways projects fail, a very common one is scope creep. This concept
refers to changes requested when the project has already started which had not
been planned before. This is very common when projects are not appropriately
documented and defined beforehand.
Unrealistic expectations
When you want to do something fast, with a limited budget, and a reduced team, it
can really make your project fail. You should be realistic when it comes to your
teams’ capabilities, deadlines, and the resources available – only then can you
obtain the results you want.
Lack of monitoring
Providing a schedule to the team is not enough for a project to be successful. You
should also make sure everything goes as planned. This means having frequent
progress checks or meetings, as well as making adaptations, when necessary, is
essential.
Unrealistic due dates
Planning complex tasks for short due dates is definitely one of the causes for
project failure. It is vitally important to carefully consider how long each project
phase will take, in addition to extra time for unexpected events. This is the only
way to develop a quality project.
Poorly assigned roles
When each team member receives their responsibilities clearly, they will know
what, when, and how to perform their activities without someone needing to
constantly ask for it.

How we can you avoid these problems?

Make a concrete plan and establish clear goals

Establishing clear, objective, and realistic goals is essential to avoid project failure.
You can use methods like SMART goals to create them.
Saying, for example, “I want to sell more” is not an objective goal. A more
concrete goal would be: “I want to increase sales by 15% next quarter.” This is an
objective that follows all the previously mentioned requirements while being
something achievable.
Once goals are laid out, you should create a consistent plan, since this will increase
the likely hood, the project succeeds and will help you save time and money during
its development.
It’s also important to conduct smart risk management. In this manner, you should
identify what the risks are and the possibility they will occur. You also need to
create preventive measures to keep these errors from occurring, and mitigation
measures in case they do. Moreover, it’s also necessary to control and assess the
obtained results continuously.
Determine resources and keep the project objectives
Making a budget for the project that accounts for all its stages is vital to avoid
getting stuck in the middle of the road. What’s more, you should include all types
of resources that you will need for its completion.
Once all resources are defined, you should focus on planning and making no
changes that could jeopardize the results you initially expected for the project.
You should be aware that, if there are any needed changes, you will need another
round of planning, with new resources and deadlines, which can completely
change your initial structure.
Use technology to help you
When you use the project management technology available, you can considerably
increase quality and obtain better results, because it makes your job faster, it helps
with planning and implementation, and aids team monitoring and integration.
When you automate, it’s important that you analyze your business’s needs and
resources on hand, since choosing the wrong program can harm productivity and
service quality.
A BPM solution can also help, since aside from process management, it also
creates more organized workflows, which simplify oversight and, in turn, project
management.
An ECM (Enterprise Content Management) solution also helps project
management. This tool will help you track project assets, generated content,
changes made, and more.
Next steps
Now that you know the reasons why projects fail and how to avoid these problems,
especially if you have the right technology, read our article about integrated
management to find out how a single platform can help many of your business’s
departments.

Q.4 Critically analyze various types of Project appraisal. Identify the role of cost
benefit analysis and cost effectiveness analysis in project appraisal. Justify your
answer with suitable examples.

Project Appraisal
Although, we are familiar with tools such as Gantt chart, PERT, CPM, IRR,
NPV and others associated with project management. Yet when it comes to real
project scenario, we find practical problems which could bring deviations. This
is not to suggest that the tools and techniques are inadequate, but assumptions
on which the project reports are prepared are either invalid or unrealistic. A
review of the Ministry of Programmed Implementation has shown that about
70% of project time or cost overruns are due to unrealistic assumptions at the
project formulation stage. It is therefore necessary to pay attention to this, often
overlooked, but vital aspect of project formulation. Project appraisal is the
process of analyzing the technical feasibility and economic viability of a project
proposal their costs. Project appraisal enables to take a decision on with long
term effects. During the appraisal stage, measurement of costs and benefits are
difficult as these are spread over a long term with high degree of uncertainty
The figure below shows types of appraisals generally required for a project.
Meanings of Project Appraisal

Technical Appraisal

Determines whether the technical parameters are soundly conceived, realistic

and technically feasible. Technical feasibility analysis is the systematic
gathering and analysis of the data pertaining to the technical inputs required and
formation of conclusion there from. The availability of the raw materials,
equipment, hard/software, power, sanitary and sewerage services, transportation
facility, skilled man power, engineering facilities, maintenance, local people
etc., depending on the type of project are coming under technical analysis. This
feasibility analysis is very important since its significance lies in planning the
exercises, documentation process, risk minimization process and to get
approval.

Checklist

- Physical scale

- Technology used & Type of equipments & Suitability conditions

- How realistic is the implementation schedule

- Labour intensive method or others

- Cost estimates of Engineering Data

- Escalation are taken care of or not

- Procurement arrangement

- Cost of operation & Maintenance

- Necessary raw material & Inputs

- Potential impact of project on human & physical Environment

Financial Appraisal

To determine whether the financial costs and returns are properly estimated and
whether the project is financially viable. Following minimum details are
determined in the financial appraisal;

1. Total Cost

2. O & M Expenditure

3. Opportunity costs

4. Other costs

5. Returns on Investment over project life

6. NPV

7. CBR

8. IRR

Institutional Appraisal

To determine whether the implementing agencies as identified in the report are

capable for effective implementation, monitoring, and evaluation of the scheme.
Managerial competence, integrity, knowledge of the project, the promoters
should have the knowledge and ability to plan, implement and operate the entire
project effectively. The past record of the promoters is to be appraised to clarify
their ability in handling the projects. Checklist

• Whether the entity is properly organised do the job

• Strength to use capability and take initiatives to reach the objectives

• Openness to new ideas and willingness to adopt long term approach to extend
over several projects

Commercial Appraisal

The demand and scope of the project among the beneficiaries, customer
friendly process and preferences, future demand of the supply, effectiveness of
the selling arrangement, latest information availability on all areas, government
control measures, etc. The appraisal involves the assessment of the current
demand/market scenario, which enables the project to get adequate demand.
Estimation, distribution and advertisement scenario also to be here considered
into.

Environmental Appraisal

To see any detrimental environmental impacts and how to minimize the

impacts. Environmental appraisal concerns with the impact of environment on
the project. The factors include the water, air, land, sound, geographical
location etc.

Economic Appraisal

How far the project contributes to the development of the sector, industrial
development, social development, maximizing the growth of employment, etc.
are kept in view while evaluating the economic feasibility of the project.

Legal Appraisal

To determine whether the project satisfies the legal issues related to land
acquisition, title deed, environmental clearance etc.

Social Costs –Benefits Analysis

Social Cost-Benefit analysis is an appraisal system that helps selecting socially
remunerative projects for implementation. Every project tends to use up
resources preempting its allocation in other uses. The inputs used up in the
projects constitute the social cost of the project. The process of Social Cost-
Benefit Analysis consists of determining the social feasibility or profitability of
a project by expressing its social benefits and social costs in terms of a common
counting device or numeral. If the social benefits of a project exceed its social
costs, it is qualified for implementation. Projects emanate from different
sources, such as individuals, firms or institutions, and Governments at the state
and the 70 central levels. In instances when the state is not the owner, the
traditional yardstick of commercial or financial profitability is used for
selection of projects. In these cases, the primary criterion is the profit potential
for promoter or the owner. But this may not necessarily result in socially most
profitable project. But then can decision makers overlook this vital aspect of
project evaluation, especially in a developing country?

A project has to be formulated and implemented in a social environment. Its

impact on the society in general and to the community in the near vicinity, in
particular, is a major concern to be taken into account at the time of project
formulation. This includes land acquisition, rehabilitation, loss of livelihood,
adequate compensation, building up harmony with the community, through
close interaction. All these areas are importance. Yet very few projects have
considered it necessary to take these factors into account. Technoeconomic
parameters are only guidelines for project formulation. But then a project
cannot be implemented in a vacuum. It needs an elaborate support system. The
Project Manager has to seek outside intervention for the support system. This
where, a manager who is essentially aware of the multiple dimensions of a
project will be better suited to exercise appropriate control over projects. We
may think of the river linking project in India. The project is yet to reach the
pre-feasibility stage, and already there is a public opinion building against it.
Due to this increased social awareness, project formulation methodology has to
take account the social impact of the project. This is a time-consuming process.
Often project authorities are made to rush through project preparation stage,
without spending adequate time on project pre-feasibility study, ultimately
leading to time and cost overrun. Projects often face uncertain future, due to
intense public opposition and prolonged litigation. Public servants are often
required to face the vagaries of public opposition, it is well known that a project
has both time and cost dimensions. These two dimensions are interlinked. A
time delay often means a cost overrun, and a cost overrun can also lead to time
delay, because of budgetary constraints. Time and cost are the dimensions in
which projects are measured. But then there is web of other interconnected
activities which also impact on the project time and cost flow. Thus, the main
emphasis on a project, even at the formulation stage is not the technical
parameters alone but, on the control, and coordination aspects.

Appraisal Methods

There are appraisal techniques that take into account the variations in the
expected inflows and outflows of the project that the project must inevitably
face during its life cycle. The crux of these methods lies in their consideration
of time.

Project Analysis as per Cash Flows

It is common knowledge that projects do not earn the same level of profit every
year. In some years, profits are high; in others they are low. In many years, it
can be expected that the project will earn no profit at all. The question that
confronts planners and administrators is how to examine projects that have
different time sequence of costs and benefits, and therefore of profit/losses.
Table 1 can be taken as the starting point for examining this question.

Table 1 shows the costs and benefits of a hypothetical project over its life cycle
of seven years. In the first year, costs are greater than the benefits; in later
years, benefits exceed costs.

1. From the table 1, it is seen that the overall profitability of a project cannot be
assessed on a year-to-year basis. Expected profits of this project as shown in the
table vary between years. Also, if a year-to-year assessment is attempted, it will
be a time-consuming exercise, and may not be able to give any definite
conclusion as to its profitability. So, the task for the planners is to reduce the
flows into a single figure that can indicate the earning capacity or the
profitability of the project in question. How should this be done?

2. How should the “value” of money over time be treated? Should the value of
Rs.75,000 that is likely to be the level of net profits in the fourth year of the
project (see Table 2) be taken at its face value, or be adjusted to take note of the
fall in the value of money from inflation as well as the uncertainty that is
implicit in any consideration of the “future”. What is the method by which the
problem of time can be resolved?

The method of dealing with the flows of costs and benefits over time in project
analysis is called time-discounting. This is a method of reducing to a
comparable base the costs and benefits of a project that accrue at different
intervals. The underlying thesis in this concept is that the value of money is
different at different points of time; for instance, Rs.1,000 received today is not
of equal worth to a similar amount ten years from now. In other words, costs
which have to be paid in the distant future have, at present, a lower significance
or value than those to be paid now. Similarly, the benefits which accrue from a
project now are of a greater value than those accruing later. Calculation of the
present value of costs and benefits involves the use of a discount factor, which
is nothing but a rate at which the future is to be discounted. Discount rate
represents the present value of the future.

Net Present Value Method

The net present value method can be used by taking the following steps Step

1. Estimate the cash inflows and outflows on a year-to-year basis. Step

2. Work out the net cash flows for individual years. Step

3. Find out for individual years the discount value of 1 at the given discount rate
Step

4. Multiply the net cash flows for each year by the corresponding discount
factor. Step

5. Add up the present values

It can be seen from the example in Table 2 below that at a 12 percent rate of
discount the net present values of the project are negative (-15.1). The project,
therefore, cannot be accepted. If, however, a lower discount rate is used, say 8
percent, the net values of the project would turn positive, and the project may
gain acceptability. The net values at 8 percent discount rate are shown in
Table3.
Benefit-Cost Ratio

The benefit-cost ratio is a ratio calculated by dividing the sum of discounted

benefits by discounted costs. Steps for calculating the benefit-cost ratio are:
Benefit – Cost Ratio = Sum of Discounted Benefits Sum of Discounted Costs

Step 1. Estimate the cash inflows and outflows on a year-to-year basis

Step 2. Find out for individual years the discount value of 1 at the given
discount rate.

Step 3. Multiply the cash inflows and cash outflows for each year by the
corresponding discount factor.
Step 4 Add up the discounted values of cash inflows and outflows separately.

Step 5. Divide the discounted values of cash inflows by cash outflows to obtain
the benefit-cost ratio.

Q.5 Define the concept of project evaluation. Explain various kinds of

project evaluation.

What Is Project Evaluation

Project evaluation is the process of measuring the success of a project, program

or portfolio. This is done by gathering data about the project and using an
evaluation method that allows evaluators to find performance improvement
opportunities. Project evaluation is also critical to keep stakeholders updated on
the project status and any changes that might be required to the budget or
schedule.

Project Manager is a robust project management software that has all of the
tracking and reporting features you need for your project evaluation process.
Our real-time dashboard allows you to keep track of costs, tasks and budgets
and you can create reports in minutes

Every aspect of the project such as costs, scope, risks or return on investment
(ROI) is measured to determine if it’s proceeding as planned. If there are road
bumps, this data can inform how projects can improve. Basically, you’re asking
the project a series of questions designed to discover what is working, what can
be improved and whether the project is useful. Tools such as project dashboards
and trackers help in the evaluation process by making key data readily
available.
The project evaluation process has been around as long as projects themselves.
But when it comes to the science of project management, project evaluation can
be broken down into three main types or methods: pre-project evaluation,
ongoing evaluation and post-project evaluation. Let’s look at the project
evaluation process, what it entails and how you can improve your technique.

Project Evaluation Criteria

The specific details of the project evaluation criteria vary from one project or
one organization to another. In general terms, a project evaluation process goes
over the project constraints including time, cost, scope, resources, risk and
quality. In addition, organizations may add their own business goals, strategic
objectives and other metrics.

Project Evaluation Methods

There are three points in a project where evaluation is most needed. While you
can evaluate your project at any time, these are points where you should have
the process officially scheduled.

1. Pre-Project Evaluation

In a sense, you’re pre-evaluating your project when you write your project
charter to pitch to the stakeholders. You cannot effectively plan, staff and
control a new project if you’ve first not evaluated it. Pre-project evaluation is
the only sure way you can determine the effectiveness of the project before
executing it.

2. Ongoing Project Evaluation

To make sure your project is proceeding as planned and hitting all of the
scheduling and budget milestones you’ve set, it’s crucial that you
constantly monitor and report on your work in real-time. Only by using project
metrics can you measure the success of your project and whether or not you’re
meeting the project’s goals and objectives. It’s strongly recommended that you
use project management software for real-time and ongoing project evaluation.
3. Post-Project Evaluation

Think of this as a postmortem. Post-project evaluation is when you go through

the project’s paperwork, interview the project team and principles and analyze
all relevant data so you can understand what worked and what went wrong.
Only by developing this clear picture can you resolve issues in upcoming
projects.

Project Evaluation Steps

Regardless of when you choose to run a project evaluation, the process always
has four phases: planning, implementation, completion and dissemination of
reports.

1. Planning

The ultimate goal of this step is to create a project evaluation plan, a document
that explains all details of your organization’s project evaluation process.
When planning for a project evaluation, it’s important to identify the
stakeholders and what their short-and-long-term goals are. You must make sure
that your goals and objectives for the project are clear, and it’s critical to have
settled on criteria that will tell you whether these goals and objects are being
met.

So, you’ll want to write a series of questions to pose to the stakeholders. These
queries should include subjects such as the project framework, best practices
and metrics that determine success.

By including the stakeholders in your project evaluation plan, you’ll receive

direction during the course of the project while simultaneously developing a
relationship with the stakeholders. They will get progress reports from you
throughout the project’s phases, and by building this initial relationship, you’ll
likely earn their belief that you can manage the project to their satisfaction.

2. Implementation

While the project is running, you must monitor all aspects to make sure you’re
meeting the schedule and budget. One of the things you should monitor during
the project is the percentage completed. This is something you should do
when creating status reports and meeting with your team. To make sure you’re
on track, hold the team accountable for delivering timely tasks and maintain
baseline dates to know when tasks are due.

Don’t forget to keep an eye on quality. It doesn’t matter if you deliver the
project within the allotted time frame if the product is poor. Maintain quality
reviews, and don’t delegate that responsibility. Instead, take it on yourself.

Maintaining a close relationship with the project budget is just as important as

tracking the schedule and quality. Keep an eye on costs. They will fluctuate
throughout the project, so don’t panic. However, be transparent if you notice a
need growing for more funds. Let your steering committee know as soon as
possible, so there are no surprises.

3. Completion

When you’re done with your project, you still have work to do. You’ll want to
take the data you gathered in the evaluation and learn from it so you can fix
problems that you discovered in the process. Figure out the short- and long-term
impacts of what you learned in the evaluation.

4. Reporting and Disseminating

Once the evaluation is complete, you need to record the results. To do so, you’ll
create a project evaluation report, a document that provides lessons for the
future. Deliver your report to your stakeholders to keep them updated on the
project’s progress.

How are you going to disseminate the report? There might be a protocol for this
already established in your organization. Perhaps the stakeholders prefer a
meeting to get the results face-to-face. Or maybe they prefer PDFs with easy-to-
read charts and graphs. Make sure that you know your audience and tailor your
report to them.

Benefits of Project Evaluation

Project evaluation is always advisable and it can bring a wide array of benefits
to your organization. As noted above, there are many aspects that can be
measured through the project evaluation process. It’s up to you and your
stakeholders to decide the most critical factors to consider. Here are some of the
main benefits of implementing a project evaluation process.

 Better Project Management: Project evaluation helps you easily find areas
of improvement when it comes to managing your costs, tasks, resources and
time.

 Improves Team performance: Project evaluation allows you to keep track

of your team’s performance and increases accountability.

 Better Project Planning: Helps you compare your project baseline against
actual project performance for better planning and estimating.

 Helps with Stakeholder Management: Having a good relationship with

stakeholders is key to success as a project manager. Creating a project
evaluation report is very important to keep them updated.

How Project Manager Improves the Project Evaluation Process

To take your project evaluation to the next level, you’ll want Project Manager,
an online work management tool with live dashboards that deliver real-time
data so you can monitor what’s happening now as opposed to what happened
yesterday.

With Project Manager’s real-time dashboard, project evaluation is measured in

real-time to keep you updated. The numbers are then displayed in colorful
graphs and charts. Filter the data to show the data you want or to drill down to
get a deeper picture. These graphs and charts can also be shared with a
keystroke. You can track workload and tasks, because your team is updating
their status in real-time, wherever they are and at whatever time they complete
their work. Project Manager’s real-time dashboard.

Project evaluation with Project Manager’s real-time dashboard makes it simple

to go through the evaluation process during the evolution of the project. It also
provides valuable data afterward. The project evaluation process can even be
fun, given the right tools. Feel free to use our automated reporting tools to
quickly build traditional project reports, allowing you to improve both the
accuracy and efficiency of your evaluation process.
 Get in-depth, automated project reporting.

Project Manager is a cloud-based project management software that has a suite

of powerful tools for every phase of your project, including live dashboards and
reporting tools. Our software collects project data in real-time and is constantly
being fed information by your team as they progress through their tasks.

Elements of an evaluation system

An evaluation system is composed of three core elements: an intervention logic,

evaluation questions, and indicators.

Intervention Logic
The programmed plan or intervention logic is the logical link between the problem
that needs to be tackled (or the objective that needs to be pursued) the underlying
drivers of that problem, and the available policy options to address the problem or
achieve the objective. The intervention logic serves as the foundation for
evaluations.
Evaluation Questions
Evaluation questions define the focus of evaluations in relation to policy objectives
and help to demonstrate the progress, impact, achievements, effectiveness and
efficiency and relevance of the policy (e.g. ‘to what extent have RDP interventions
contributed to increasing efficiency in water use by agriculture?’) Evaluation
questions are the focus of evaluations.
Indicators
An indicator is a tool to measure the achievement of an objective (e.g. a resource
mobilised, an output accomplished, or an effect obtained). Indicators also serve to
describe the context (economic, social or environmental). The information
provided by an indicator is used as a measurement tool. Indicators are aggregates
of data that allow for quantification (and simplification) of a phenomenon.
Indicators are the measurement tools to collect evidence for all evaluations.
Bringing all the evaluation elements together
In order to perform evaluations, these three elements must be nurtured with
different evaluation approaches, methods, data and information.
An evaluation approach is a way of conducting an evaluation. It covers the
conceptualization and practical implementation of an evaluation in order to
produce evidence on the effects of interventions and their achievements.
Evaluation methods are families of evaluation techniques and tools that fulfil
different purposes. They usually consist of procedures and protocols that ensure
systemization and consistency in the way each evaluation is undertaken.
Evaluation approaches and methods help to attribute the effects and impacts to a
specific intervention, thus helping policy makers understand the real value of each
intervention.
Data, data, data
Data is quantitative information on selected indicators or variables which can be
collected from the source itself (e.g. through survey, monitoring, statistics of
entities) or secondarily through pre-existing sources (studies, aggregated statistics,
etc.). Qualitative information can also be gathered to provide context for the
evaluation and can be collected primarily from various stakeholders (intervention
managers, beneficiaries, etc.) while using various qualitative or mixed methods
(surveys, case studies, focus groups, interviews etc.). Data and information
represent the evidence for the evaluation.
Consistency linkages in an evaluation system
The following figure shows the consistency linkages between the intervention
logic and the other evaluation elements, evaluation questions and indicators. These
must be decided prior to the start of an evaluation.

The blue boxes show the relationship between the needs identified in the SWOT
analysis and needs assessment (formulated as objectives), the actions (measures,
activities, projects) supported with the budget that will be undertaken to achieve
these objectives and the expected effects. These blue boxes make up the
intervention logic. The expected effects are defined as outputs, results, and
impacts:
  Outputs are actions financed and accomplished with the money allocated to
an intervention. Outputs may take the form of facilities or works (e.g.,
building of a road, farm investment, tourist accommodation). They may
also take the form of immaterial services (e.g., trainings, consultancy,
information).

 Results are the direct advantages/disadvantages which beneficiaries obtain at

the end of their participation in a public intervention or as soon as a facility
funded through an intervention has been completed. Results can be
observed when a beneficiary or operator completes an action and reports on
the way in which the allocated funds were spent and managed. This can
take the form in many ways, such as, it may be reported that accessibility
has been improved due to the construction of a road, or that the firms which
have received advice claim to be satisfied. These results should be regularly
monitored. Policy makers can adapt the implementation of the intervention
according to the results obtained.

 Impacts typically refer to the changes associated with a particular

intervention over the longer term. Such impacts may occur over different
timescales, affect different actors and be relevant at different scales (local,
regional, national and EU).

The red boxes are evaluation questions, which are usually cause-effect questions
asking for net effects and linked to the objectives. Evaluation questions might be
further specified with judgment criteria which define how the success is to be
achieved under each objective (overall and specific). They link objectives to
indicators.
The green boxes are indicators, which should be consistent with the judgment
criteria or evaluation questions, as well as with the expected effects (outputs,
results and impacts).
Several types of indicators can be used:

 Output indicators measure activities directly realized within the

programmed. These activities are the first step towards realizing the
operational objectives of the intervention and are measured in physical or
 monetary units (e.g. number of training sessions organized, number of
farms receiving investment support, total volume of investment).
 Result indicators measure the direct and immediate effects of the
intervention. They can provide information on changes in, for example, the
behavior, capacity, or performance of direct beneficiaries and are measured
in physical or monetary terms, (e.g. gross number of jobs created,
successful training outcomes). Result indicators are used to answer the
specific objectives related to evaluation questions.
 Impact indicators refer to the outcome of interventions beyond the
immediate effects. Impact indicators are normally expressed in ‘net’ terms,
which is realized through subtracting the effects that cannot be attributed to
the intervention itself from the total and accounting for indirect effects (e.g.
total factor productivity in agriculture, emissions from agriculture, water
quality, degree of rural poverty). Impact indicators measure the program’s
effects on the area in which it is implemented. Impact indicators are used to
answer the evaluation questions related to the overall objectives.
Target values are often assigned to indicators. These targets are values established
based on existing information, which programs try to realize in order to achieve the
expected effects, objectives and needs.