The first factor organizational culture that could possibly influence the quality of estimates is the management and their leadership styles. The management serves as leading examples to the employees. This means that the employees often follow what they see their managers doing. Additionally, they behave in the way they do because of their mangers. Therefore, if the manager is not strict with numbers, the quality of estimates will greatly be affected. The second possible factor could be resistance. Employees might be resistant to what their managers are telling them to do. In this case, they will tend to perform poorly affecting the quality of estimates. These two factors may be overlooked but they can affect the quality of estimates.
There are two major types of costs. The first is the direct costs. This type of cost is direct in relation to the type of business because it can easily be accounted for in the business. This means that direct are easy to calculate. For instance, in a hotel industry, the cost of paying the employees their salaries is direct. The other type of cost is the indirect cost. In this case, the cost of things in the business can be easily calculated or accounted for in the business (Callahan, Stetz & Brooks, 2007). A good example is calculating the cost of job due to sickness of an employee or an employ-impaired productivity. This is not easy to calculate the costs estimates. Indirect cost are the most difficult to control. This is because they contain many uncertainties. For instance, it is difficult to tell the employee-impaired productivity (Callahan, Stetz & Brooks, 2007).Accurate estimates are critical to effective project management because they can lead to failure or closure of the business. For instance, if the time of performing a certain task in the project is incorrectly estimated the project might fail due to poor time estimates. Therefore, accurate estimates are critical to effective project management.