ProjectManagement

Unit7

Unit7

OrganizationalIssuesinProjectManagement

Structure
7.1Introduction 7.2 OrganizationalChange 7.2.1EvolutionaryChange 7.2.2RevolutionaryChange 7.3 Traitsoftheprofessionalmanager 7.4 BringingaboutOrganizationalchangeintheProjectManagementScenario 7.5 Summary TQs AnswertoSAQsandTQs

7.1 Introduction
Projectsbytheirnaturearenotamenabletoanystreamlinedoperations.Variousactivitiesacrossall functionsareundertakenbyanumberofpeople.Theprojectmanagerandhisteamcommittedto anyoneprojectwillhavetodependuponthevariousfunctionariesintheadministrativefunctionslike Human Resources, Finance, Purchase, Legal etc. at various points of time to coordinate their activitiesHowever,noprojectmanagerwillneedthemonacontinuousbasis.Theprojectmanager andhiscoreteamhavetheresponsibilityfortheprojectandsupportserviceswillhavetocatertoa numberofthem. Eachprojectisoperatedlikeasmallcompanybyitself.Alltheresourcesrequiredforeachproject areassignedtoworkonthatproject.Theprojectmanagerhascompleteprojectandadministrative authorityoverhisteam.Thisdiffersfromthematrixfunctionaltypeofstructure,wherethepeoplein theprojectwouldbecontrolledintechnicalaspectsbytheprojectmanager,butadministrativecontrol isexercisedbythefunctionalmanagers. Organizationalchangeasaprocesshasimplicationsfor theprojecttypeorganizationalstructure.Generally,thereisnoopportunityformembersofdifferent
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teamstoshareknowledgeandexperience.Latestdevelopmentsinorganizationsareinthefieldsof knowledgemanagement,wheresuchsharingshouldnotonlybemadepossible,butobligatoryfor effectingeconomybothofphysicalresourcesandtime. LearningObjectives

1. ThemeaningofOrganizationalChange 2. TheneedforchangeinProjectManagementScenario 3. HowaProfessionalManagercanimplementchange 4. LatestdevelopmentsintheprocessoforganizationalchangerelevanttoProjectManagement.

7.2 OrganizationalChange Organizations will have structures, hierarchies,functions, communication patterns, decision centre, and most importantly cultures which define them and make them unique. To cope with new challenges, to introduce new products or services, to take up new opportunities and to take on competition theorganizational members have to implement changed practices. We have mainly two types of changes to contend with. The first is the evolutionary change which is gradual, incrementalandwithanarrowfocusononeorafewprocesses.Thesechangestakeplaceasthe organisationevolvesandinanefforttowardoffsomeimpendingproblems,theyareimplemented. The second occurs asa resultof drastic structural changes, anew technology, a new thrustfora huge increase incapacity, anewbusiness acquisition, implementation of anew strategy. We call this revolutionary change. The four important instruments are reengineering, EEngineering, restructuringandinnovation.

7.2.1EvolutionaryChange
Thefollowingareafewcasesofevolutionarychange a) Sociotechnicalchangestakeplaceastheorganisationevolvesovertime.Themanagersneed tooptimizeboththetechnicalandsocialsystemsforpromotingeffectiveness.Theyadjustboththe systems gradually so that group norms and cohesiveness are not disrupted. This also helps in avoiding grouplevel resistance to change. However, changes in the way tasks are performed do changeperceptionamongworkersabouttheirowngroupswhichmighthavebeendisruptedowingto

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technical requirements. The purpose of these changes is to bring in continuous improvement in productquality. b) Total Quality Management is an ongoing effort among members across functions to find new waystoimprovequalityinproductsandservices.Thischangeprocess,thoughincrementalrequires bothworkmenandmanagerstoadoptnewwaystoviewingtheirrolesintheorganisation. c) FlexibleworkersandFlexibleworkteams Eachworkercansubstituteanotherworkerandcan change his team depending upon the exigency. This means that all the workers are trained for multipletasking.Thischangehasbeenfoundtopromotequalitybecauseoftheabsenceofboredom which may cause loss of quality. Thus, a flexible work team becomes a group of workers who assume responsibility for performing all the operations necessary for a particular portion of the project.

7.2.2 RevolutionaryChange
ThefollowingareafewcasesofRevolutionaryChange a)Reengineering Thisisaprocessbywhichmanagersredesignabundleoftasksintorolesand functions so that organisational effectiveness is achieved. By doing so dramatic improvements in criticalmeasuresofperformancelikecost,qualityandserviceareexpected.Therewillbearadical rethinkaboutthebusinessprocessesadopted. Abusinessprocessis anyactivitylike inventorycontrol,productdesign,orderprocessing,delivery systems. No reference is taken to the existing process ignoring it, an entirely new process is adopted.Thefollowingrulesforreengineeringareeffective i) Makechangeswiththeoutcomeinmindnotthetasksthatresultinthem. ii) Maketheusersoftheresultsoftheprocesseffectthechange iii) Letthepeopleonthespotdecideonthesolutiondecentralize b)EEngineeringThetermEEngineeringreferstotheattemptsofcompaniestomakeuseofall kindsofinformationsystems,tomaketheirfunctionsefficient.Newinformationsystemsareinstalled for conducting all business processes in the organisation. The use of electronic communication

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within the organisation enable frequent interactions between employees and results in better communication. Meetings require their presence, but with teleconferencing a lot of time is saved. Data have repositories which are accessible, transferable and updatable instantly and used by all concerned. Crossfunctional workflows make it easier to coordinate activities. The increase in efficiencymakestheorganisationtomeetcustomersrequirementsfaster. All these result in widespreadutilizationof knowledge in theorganisation. It helps increating and making available high quality of information. The information system using intranet and internet solutionstocarryontheirregularactivitiesonline. c) Restructuring This is attempted with change in authority and task relationships of managers. The move from the functional form or a standard division structure, to combine or divide areas of control and authority to facilitate better coordination and/or workflow can be restructuring. In the process,afewjobsmaynotbethere.Afewpeoplemayhavemultifunctionalactivities.Themain purpose is reduce bureaucratic costs. This is because a change in strategy is considered. Downsizingisawayofrestructuring. d) Innovationitisthesuccessfuluseofskillsandresourcesinsuchawaythattheirresponseto customersneedseffective.Changesintechnologyhavemadecomputerscheaper,fasterandmore userfriendly. This has made a thorough change in the skills ofemployeesand managers. Every companyneedstoadoptnewmethodsfindthemtomakethemrelevantinthechangingworld. Thethrustineverydepartment/functionshouldbetodothingsbetterwithnewmethods.Aculture thatpromotesthisthoughtacrosstheorganisationisthebestwaytobenefitfromit.Forpromotion, suitablepeoplehavetoandbeselected,trained,empoweredandrewarded.Athoroughchangein thewayproblemsaresolvedisneeded.

The Project Manager may have to initiate the change process to increase the effectiveness of his team. Being a key person in the organisation, his actions are always under scrutiny. If he takes initiative,whenevertheopportunityarises,toeffectincrementalchanges,theresistancebothbythe topmanagementandhisteammemberswillbenonexistent.

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SelfAssessmentQuestions1:Fillintheblanks
1. Organizations will have ________, __________, ________ , and most importantly cultures whichdefinethemandmakethemunique 2. Makechangeswiththe________inmindandnotthe______thatresultinthem.

7.3 Traitsoftheprofessionalmanager
Thefollowingtraitsenableamanagertobeeffectiveinhisfunctioning.Endowedwiththeseitwillbe easytobeeffective.Thetopmanagementwilllookfortheseinapersonwhotheywanttoemploy forprojectmanagement. (a) Leadership These managers lead by exhibiting the characteristics of leadership. They know whattheyshoulddo,knowwhytheyaredoingit,knowhowtodoitandhavethecourageandwillto doit.Theyhavethepoweroftakingalongwiththemothers.

(b) PeopleRelationshipsAnyleaderwithoutfollowerscannotbesuccessful.Theyhaveexcellent human relationship skills. The manager builds up his team based on the core values of sincerity, objectivityanddedication.Heensuresthathissubordinatesgetopportunitiesforgrowthbasedon performance.Hemakesthemapartofthedecisionmakingprocess,thusensuringcooperationand commitmentduringimplementation.Hedelegatesfreelyandsupportsthem. IntegrityHighestlevelsoftrust,fairnessandhonestyareexpectedwhiledealingwithpeopleboth withinanoutsidetheorganisation.Thisincludesthecustomers,shareholders,dealers,employees, thegovernmentandsocietyatlarge.Theyensurethatfunctioningisclean.Theirtransactionswill betransparent.Ethicsissomethingtheypracticediligently. (d)QualityThequalityphilosophyshouldnotcoveronlytheproductquality,buteveryprocessthat hasgoneintomakingit.Economyofwordswheninstructionsaregiven,acknowledgingcompliance, arriving on time, remembering the promises and above all a keen eye for details and patience to makeothersknowwhattheywantarecomponentsofquality.

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(e)CustomerOrientation Itisnowrecognizedthateveryorganizedtwosetsofcustomers. Internal customersarepeopleintheorganisationemployees,directors,teammembersanypersonwho needs your services, whose needs of demands you satisfy. External customers clients and all membersofsocietywecomeincontactinconnectionwithourbusiness.Theyneedoursolutionsfor their problems. So, the managers thinking about any problem is what can I do for him and all actionswillbeinthatdirection.

(f) Innovation and creativity

Professional managers think beyond the obvious. They exhibit a

keennesstogobehindaproblemandattempttofindtherootcauseoftheproblem.Theywilldraw from their experience from diverse fields, seek further information and consider all possible alternativesandcomeoutwithsomenewanduniquesolution.Thishappenswhentheyhaveopen minds.Asayinggoes thehumanmindislikeaparachute,itisusefulonlywhenitisopen.Sucha work culture is very conducive for problem solving which is the aim of all creativity. Their persistence will reward them. Suchactions observed by their team membersenthusethemand a spiritofadventurewillbringaboutbettersolutionsfaster. (g) PerformanceManagement Theprofessionalmanagernotonlyensuresthathisperformance is at peak all times, but motivates his entire team to do it. This comes by appreciation and encouragement. If there any shortfalls he arranges for training them so that their performance improves.Thustheteammembersknowthattheyareexpectedtoperform,thattheygethelptodo soandtheireffortisrecognized.Thisisthesimplepathofperformancemanagement.Thefollowing sevenstepmodelwillbeuseful: 1. Objectives/Performancestandardsareset. 2. Thesearecommunicatedtothe employees. 3. Review/monitortheabove. 4. CheckactualperformanceVs.Standardsset. 5. Identifygaps. 6. Jointlydecideoncorrectiveaction,ifneeded. 7. Resetobjectivesfornextperiod

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1.Objectives/PerformanceStandardsAreSet

1.Tomangeanycriterion,itisnecessarytomeasurethefactorsthatwereresponsibleforwhatis. Thequalityoftheinput,theirquantityandtheirintendedusage.Thenmeasuresoftheutilizationthe processesused,theirsuitability,andthedifficultiesfacedinutilizationandhowtheywereresolved. Thentheoutcomesaretheyastheywereexpected.Performancecloserorbeyondexpectationis thedegreeofquality.Foreveryemployeethelevelofachievementissetintermsofquantitiesand extent to which the performance approached the standard. This is the basis for evaluating performance. 2. These are communicated to the employees This procedure ensures that they know what is expected of them and help them to adjust their activities in such a way as to meet them. This enables them to seek help, consult their colleagues or bosses, learn so that they will meet the expectations. It is possible that some objectives cannot be met at all. The communication to his boss,mayhelpinreallocatingthejob,sothattherewillbenohiccupsattheendoftheperiod. 3. Review/monitortheabove Reviewhelpsinresettingthegoalswhentheycannotbeachieved forvariousreasonsshortageofresources,timeetc.Bymonitoring,theshortfallscanbemadeup withtheallocationofextraresources,orevendivertingtheoperation. 4. Check actual performance Vs. Standards set This is the evaluation phase. Comparison on everydetailismade.Differencesarerecorded.Particularareasarechosenforimprovement. 5. Identifygaps Gapsmeantheshortfallinperformancestandards.Theimmediatesupervisoris alsoinvolved.Theextenttowhichtheyaffectthefunctionsofthejobitselfareidentified

6. Jointlydecideoncorrectiveaction,ifneeded Thereisapossibilitythattheperformancehas exceededthesetstandards.Butifperformanceisnotgoodthereasonsandextenthavingbeen identified, the course of action for effecting corrections are decided. Giving extra responsibilities, training,relocationisconsidered.

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7.ResetobjectivesfornextperiodThetargetsarerevisedeitherupwardordownwarddepending ontheconclusionoftheappraisalprocess. (h)Identificationwiththeorganisation Asenseofprideandbelonginggoeswiththeownershipof the job, the project, team members and organisation. This is brought about by the culture and communication system in the organisation. Information sharing brings in trust and promotes belongingness. The tendency seen is that most managers strongly identify with their own departments,unitsordivisionsandtheylackasenseoforganisation. In the lightof increased competition and ever changing strategies to develop business orientation, which in effect means every manager should be aware of the companys plans, products and policies.Anobviouscorollarytothisisthattheorganizationscommunicationpolicytooshouldbe conducivetosuchinformationsharing.Today,manyorganizationsareusinginterventionssuchas team building, survey feedback, and other activities, to ensure that employees build up a strong senseofidentityandprideintheorganisationtheyworkfor. (i) Empowering employees: Theprofessional manager shouldpossessthe ability toempower

his employees down the line. Many managers are not even ready to delegate their authority to subordinates and end up only delegating responsibility. Empowerment is the process by which employeesareencouragedtotakedecisionspertainingtotheirareaofwork.Empowermentensures execution of his duties. This leads employees developing a sense of pride in their jobs. But managersoftenhesitatetoempowertheirsubordinatesastheyfeelinsecureandshowasenseof uncertainty.Theprofessionalmanagerpracticesempowermentandencouragesemployeestogrow anddevelopintheirpositions.

(j) Copingwithchanges:ItisoftensaidTheonlyconstantinthisworldischange.Aprofessional manager has the ability and capacity to cope with change. He accepts the fact that change is inevitableandisreadytoimplementchangeattheworkplace.Toimplementchangesuccessfully,it isessentialthatemployeesareinvolvedintheimplementationofchange.Furtherthepositiveand negative consequences of change need to be discussed and understood before implementation.

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Thusaprofessionalmanagerhastheattitudetoacceptchangeasawayoflifeandtakesitinhis stride

SelfAssessmentQuestions2
1. Suchaworkcultureisveryconducivefor_________whichistheaimofallcreativity. 2. To implement change successfully, it is __________ that employees are involved in the _____________ofchange. 3. Projectmanagersdonotdelegateauthority,theydelegateresponsibility.TRUE/FALSE

7.4 BringingaboutOrganizationalchangeintheProjectManagementScenario A project is managed by theproject manager being completely in chargeof all matters connected with it. In case of organizations, where multiple projects are handled, restructuring is almost a continuous. The reason is that resource availability in terms of people and their skills will be changing. With resource smoothing, many persons will have to be shifted for short periods. To accommodate these, many managers create pools of persons with special knowledge, skills and ability. Numberofopportunitiesforcreativityismanyinprojectexecution.Everyprojectisunique. Resourcesvary,customerdemandsaredifferent.Thusthechangeprocesswillhaveneverstopped tobegin.

SelfassessmentQuestions3:TrueorFalse
1. Opportunitiesforcreativityaremanyinprojects. 2. Whenmultipleprojectsarehandledrestructuringisrare.

7.5Summary
In this unit you have learnt about how the organizations are structured. The meaning of Organizational Change and how the process brings about improved effectiveness in the organizations, especially the need for change in Project Management Scenario. You have also learnt about the role of a professional manager and how a Professional Manager can implement

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change. Also the latest developments in the process of organizational change relevant to Project Management.

TerminalQuestions

1. DefineaFlexibleWorkTeam. 2. WhatisReengineering? 3. Whatarethesevenstepsofperformancemanagement? 4. Whatisempowerment? 5. ExplainthedifferencebetweenTQMandInnovation 6. DescribeanyfiveimportanttraitsofaLeader

AnswerstoSelfAssessmentQuestions

SELFASSESSMENTQUESTIONS1 1Structures,hierarchies,functions,communicationpatterns,decisioncentres, (anythreeofthese) 2Outcome, tasks. SELFASSESSMENTQUESTIONS2 1problemsolving 2essential,implementation 3False SELFASSESSMENTQUESTIONS3 1True,2False

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AnswertoTerminalQuestions
1. Referto7.2.1 2. Referto7.2.2 3. Referto7.3(g) 4. Referto7.3(f) 5. Refer7.2.1and7.2.2 6. Referto7.3

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