Essay on Identification of Various Risks by Project Manager

The risks that can be seen in the project management process and their mitigation strategies

There are several risks that can be seen in the process of project management. First, these risks are supposed to be analyzed by the project managers so as to the principal risks and the minor risks. The main risks of the project management process can bring disaster and calamity in the lifecycle of the project. In other words, it affects the lifecycle of the project in a critical way, and this can lead to the termination of the project or even significant delays in the completion of the project. The minor risks usually have a minimal impact on the lifecycle of the project (Hilorme et al., 2019). Therefore analyzing these risks enables the project manager to recognize the loopholes and enclose them and take advantage of the opportunities that come from those risks.

Some of the risks that can be seen in the lifecycle of the project include the risk of scope, the risk of operation, and the risk of performance. The technology risk arises when the aspect of managing the project is a complex deliverable due to the advances in the level of the technology. The dangers that are associated with technology are very complex because this will require the project team members to be trained afresh and acquisition of software. The scope danger occurs when the changes that may arise within the lifecycle of the project are not controlled can lead to the emergence of additional expenses. The operational danger occurs when there is poor implementation of critical operations ad this can lead to the termination of the project.

Some of the mitigation skills that can be used in controlling these risks include accepting these risks, avoiding them, controlling them, transferring the risks, and monitoring them. In accepting the risks, when the project manager acknowledges these dangers, he can make an intentional decision to accept them without using special efforts to control them. In avoidance, the project manager can avoid these risks at all costs to ensure the project is executed as planned. In control, this is where the project manager implements the actions that will minimize the likelihood of the dangers occurring. The project manager should also monitor the changes that can impact the project.

The optimal organizational structure for the methodology

The organizational structure that is used in my organizational structure is the divisional methodology. The managers in big organizations usually have a lot of difficulties in following up all the activities that are happening in the company, and because of these, they develop other departments to assist them in running the company. These departments are usually organized according to their work productivity. These departments assist the managers in critically analyzing the resources of the company and the outcomes critically. Divisional structure makes it simple to monitor the performance of the workers. This is because the structure is very flexible and responsive to change. The methodology of divisional structure usually strengthens the organization in many ways.

The personal division is usually financially independent and allows them to determine straightforward ways of accountability. The financial independence in the company establishes a sense of cooperation among the various department and this eliminate the thoughts of competition among the departments (Islami et al., 2021). Various divisions in the company usually assist the workers to further their skills in their areas of expertise. Every division in the company is dependent, and this enables it to respond correctly and quickly to the external changes in the environment of the company without having any impact to the other divisions in the company. The most essential factor of success for organizations with divisional structures is that effective management is deployed. Also, for the divisional organizational structure to be successful, the executive headship requires a proper understanding of every division’s operation and the ability to advise the chiefs of the division on how to implement new strategic divisions on how to work in hand with other divisions effectively.

The lifecycle costing model for the methodology

The cost of initiating the divisional structure in an organization is a little bit high; it is very effective when implemented correctly. This structure requires a lot of funds to establish it because each and every division in the company operates as a separate entity; every division is supposed to have its resources; this is because when various divisions are sharing the resources of the company may not be practical. The divisional companies are supposed to make sure that every division has been allocated the resources required to achieve the set objectives while finding the best alternative to ensure that the expenses are maintained at a minimum level.

For methodological convenience, the managers of a company usually assume that the divisions are primarily dependent on one another and that the divisional managers can make decisions consistent with the global optimality. This methodology of divisional structure is usually suitable for large organizations since they can allocate the necessary resources and funds to finance this structure. Despite the high expenses for financing this structure, the main strength of using the divisional structure is that it encourages specialization. This is because, in this case, every department usually focuses on one particular product, and by doing so, it usually develops expertise in that sector.

References

Hilorme, T., Zamazii, O., Judina, O., Korolenko, R., & Melnikova, Y. (2019). Formation of mitigating risk strategies for the implementation of projects of energy-saving technologies. Academy of Strategic Management Journal, 18(3), 1-6. (n.d.).

Islami, E., Sejdiu, L., Hajdini, A., & Imeri, V. (2021). The Role of Departmentalization, Divisional Structure and Strategic Business Units (SBUs) in Enterprises in Kosovo. Calitatea, 22(183), 18-22. (n.d.).