A Project is badly managed if any of the following is experienced in the project.

-          Large cost or schedule overrun
-          Unrealistic schedule
-          Excessive changes to the scope or schedule
-          Poor communication an increased conflict
-          Running out of time near end of the project
-          Unsatisfactory quality
-          Low moral
-          People on the team are unsure of what need to be done
-          Excessive rework and overtime
-          Too many project meetings

A project manager needs to understand all of the followings

-          A step-by-step process for managing projects and why each step is necessary
-          Project manager, sponsor and team’s role.
-          Historical information from the previous project.
-          Lessons learnt from previous project.
-          Creation of lesions learnt from the project.
-          Project charter
-          What is a work breakdown structure, how to create it, and that is not a list in a bar chart
-          How to manually create a network diagram
-          Critical Path- how to find it and what benefits it provides the project manager
-          Three-point estimation
-          Monte Carlo analysis
-          Earned value
-          Schedule compression, crashing and fast tracking
-          An unrealistic schedule is the project manager’s fault.
-          Creating a realistic and approved project plan that you would be willing to held accountable to achieving.
-          Measuring and implementing corrective actions.
-          Risk Management process and that risk management is not just using a checklist
-          Expected monetary value
-          Calculating budget reserves and their relationship to risk management.
-          Controlling the project to the project management plan

Reference:

PMP Exam Prep: Rita Mulcahy.

http://www.rmcproject.com/