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Faraz - these are some of the points that an interviewer should look for in a potential IT project manager..
1. decision makiing ability - scenario based
2. the tools used for effective Project management
3. what if a PM is pressurized to work on a project with un-realistic schedule / budget.
4. how will the PM deal with a team where some of the crucial members do not co-operate well.
5. has the PM worked with geographically diverse team. what were the challenges.
6. Has the PM participated in appraisal cycles. If yes, then what were the paremeters he/she considered.
7. How did a PM manage a tough client / customer.
8. how effectively did the PM provide status updates to all stakeholders, what's the frequency, how accurate were the updates..
9. What is the PM's experience on vendor management.
10. what is more important for the PM - Managerial skills OR Leadership qualities. Why?
11. Was there a situation where the PM had to deal with a mistake made by his team. How did he handle it.
12. What if you are confronted by2 vendors - One says they will complete the project on-time, but will cost more. The other vendor says they will cost lesser, but will take more time.
this is not an exhaustive list.. but the questions would be more or less similar.
Hope this helps.
Regards, Ananth
