Managing Human Resources in Projects Unit 5

_____________________________________________________________________________

Unit 5 Managing Conflicts in Projects

Structure

5.1 Introduction
Objectives
5.2 Sources of Conflict
Self Assessment Questions: 1
5.3 Strategies for Managing Conflicts: Conflict Resolution
Self Assessment Questions: 2
5.4 Theories of Motivation
Self Assessment Questions: 3
5.5 Summary
5.6 Terminal Questions:
5.7 Answers to Self Assessment Questions:

5.1 Introduction
Human factors define who we are, what we believe in, and how we behave and interact
with others. They determine how we act, perceive and respond to our environment. Our
individual set of human factors represents our diversity. We can tap this diversity to bring
out the best in people or ignore them and lose this tremendous source of energy.
Diversity can also create different points of views and conflicts which motivate a different
set of human behaviours. As humans, we all want the same things from life: to feel
needed, challenged, valued and fulfilled. Yet because of our diversity, we seek those
same things differently and therein lies the potential for conflict.

Objectives:
 To understand the meaning and types of conflicts
 Identify sources of conflict that affect the team
 To understand styles for managing conflict
 To understand the conflict management process
 To know the steps to be taken to avoid conflicts among and between teams
 To understand different theories of motivation.

______________________________________________________________________________
Sikkim Manipal University Page No. 66
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

5.2 Sources of Conflict

Meaning of Conflict
A conflict is a dispute or a struggle in which each party expresses opposition towards
the other party or interferes intentionally with other party’s goals attainment. Conflict can
also be a disagreement about the allocation of scarce resources or a clash of statuses,
values, perceptions or personalities. Behavioral scientists agree that conflict is an
abnormal phenomenon with only negative consequences.

Some of the characteristics of conflicts are:

 Conflict occurs when two parties have competing goals.
 Conflict is unavoidable, and we can learn how to handle it effectively.
 Conflict is not always bad. Constructive conflict can help solve problems and
leads to new ideas.
 The Collaborating strategy is the most effective way of resolving conflict – the
resolution is mutually beneficial for all parties.
 The other conflict resolution strategies can be appropriate for certain types of
situations.

Features of orgnisational conflicts are as follows:

(i) Many of the present-day conflicts are totally devoid of cost benefit consciousness on
the part of labour. Many of them were long-drawn-out. The issue rose by the strikes and
the quantitative benefits even in the cases of total success, show a lack of proportion to
the disadvantage of employees. It is as though damage and loss to the employer rather
than benefits for labour have been the objectives of the struggle.

(ii) Another significant trend seen in those conflicts is the frequency with which
management met, "employee pressure by the management pressure of lockout,"

It is not easy to identify a single factor as a cause of industrial conflicts as multifarious

cause’s blended together result in industrial disputes. Deep seated and more basic
causes of disputes can be identified through indepth probe, though surface
manifestations appear to be responsible for conflicts. The relative importance of these
causes, when more than one present, is often very difficult to gauge.

According to Mukerjee, "the development of capitalistic enterprise, which means the

control of the tools of production by small entrepreneur class has brought to the fore the
acute problem of friction between management and labour throughout the world."

______________________________________________________________________________
Sikkim Manipal University Page No. 67
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

The conflict environment:

In the project environment, conflicts are inevitable. However, as described, conflicts and
their resolution can be planned to meet the requirements of parties having conflicts over
each other. For example, conflicts can easily develop out of a situation where members
of project group are misunderstanding each other’s roles and responsibilities. Through
documentation, such as the linear responsibility charts, it is possible to establish fewer
organizational procedures either at the project level or company wide, resolutions can be
made. The most common type of conflicts involves:

 Manpower resources
 Equipment and facilities
 Capital expenditures
 Costs’ technical opinions and trade-offs
 Priorities
 Administrative procedures
 Scheduling
 Responsibilities
 Personality clashes

Each of these conflicts can vary in relative intensity over the life cycle of a project. The
relative intensity can vary as a function of:

 Getting closer to project constraints

 Having only two constraints instead of three (i:e, time, performance but not cost)
 The project life cycle itself
 The person whom the conflict is with.

Causes of organisational conflicts may be grouped into four categories, viz.

(A) Organizational factors;
(B) Management's attitude towards workers;
(C) Government policy and
(D) Other causes.

(A) Organizational Factors

"Under this category, some of the causes of a dispute may be:

______________________________________________________________________________
Sikkim Manipal University Page No. 68
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

(i) A matter relating to employment, work, wages, hours of work, privileges, the rights
and obligations of employees and employers, terms and conditions of employment
including matters pertaining to:
(a) Dismissal or non-employment of any person;
(b) Registered agreement, settlement or award; and
(c) Demarcation of the functions of an employee.

(ii) A dispute which connotes any difference which has been fairly defined as is of real
substances; i.e., a matter in which both parties are directly and substantially
interested; or which is a grievance on the part of a worker which the employer is in a
position to redress; or which is such as the parties are capable of settling between
themselves or referring it to a adjudication.

(iii) Disputes often arise because of :

(a) The rapidly increasing population which has no opportunities for gainful
employment; there is, therefore, no improvement in the standard of living of
employees who put forward demand for higher wages, which, if not conceded, often
lead to strained industrial relations and strikes.
(b) Rising unemployment.

(iv) The attitude and temperament of employees or team members have changed
because of their education, their adoption of urban culture and the consequent
change in social values, the growth of public opinion and progressive legislation
enacted for their benefit. They are, therefore, very conscious of their rights and will
not put up with any injustice or wrong done to them.

(v) The trade unions have often failed to safeguard the interests of workers. The reasons
for this state of affairs are:
(a) Rivalry among, and multiplicity of, trade unions have destroyed the solidarity of the
working class;
(b) Non-recognition of some trade unions as "bargaining agents" of their members;
(c) Compulsory adjudication has made trade unions seem redundant for the wages and
working conditions of industrial employees can now be determined by courts,
tribunals, and wage boards;
(d) Trade unions generally do not bother about any aspect of the lives of industrial labour
except their wages;
(e) Trade union leaders who are themselves industrial workers have become an eye-
sore;
______________________________________________________________________________
Sikkim Manipal University Page No. 69
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

(f) Trade unions generally function on the basis of caste, language, or communal
considerations, which 'divide' rather than 'unify' industrial labour;
(g) Trade unions are unstable and ephemeral;
(h) Trade union leadership aim at fulfilling ulterior motive leading to thwarting the
attempts of trade union unity.

David Wilemon has identified several reasons why conflicts while prioritizing project
works, often occur in the execution of projects. They are:

 The greater the diversity of disciplinary expertise among the participants of a

project team, the greater the potential for conflict to develop among members of
the team.
 The lower the project manager’s degree of authority, reward and punishment
power over those individuals and orgnisational units supporting his project, the
greater the potential for conflict to develop.
 The less the specific objectives of a project in terms of cost, schedule and
technical performance which are understood by the project team members, the
more likely it is that conflict will develop.
 The greater the role ambiguity among the participants of a project team, the more
likely it is that conflict will develop.
 The greater the agreement on superordinate goals by project team participants,
the lower the potential for detrimental conflicts.
 The more the members of functional areas perceive that the implementation of a
project management system will adversely usurp their traditional roles, the
greater the potential for conflict.
 The lower the percent need for interdependence among organistional units
supporting a project, the greater the potential for dysfunctional conflict.
 The higher the managerial level within a project or functional area, the more likely
it is that conflicts will be based upon deep-seated parochial resentments. By
contrast, at the project or task level, it is more likely that cooperation will be
facilitated by task orientation and professionalism that a project requires for
completion.

Ignorance plays a significant role in shaping one’s belief and views, along with one’s
personal interest and ego. The majority of conflicts between line and staff functionaries
are, perhaps, caused by this.

______________________________________________________________________________
Sikkim Manipal University Page No. 70
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

1. Line Department Complains that

 The staff people encroach upon their authority and prerogatives.
 The advice given by staff people is mostly academic and unhelpful in
achieving production goals.
 When a project is unsuccessful it is the line people who are blamed and held
responsible for its failure but when it is successful staff people receive credit.

2. Staff Department complains that

 Line people are generally ignorant and bull-headed. They resist new ideas.
 Staff has not enough authority to translate its advice into action
 Line Department receive preferential treatment in matter of allowances and
other facilities on the basis that they are earning departments.

3. A conflict in organization is competition for scarce resources, such as budget funds,

supplies, personnel and/or support service.
4. A conflict also arises from people having different view points, such conflicts are
often about goals.
5. Conflict arises from our communication of our wants, needs and values to other.
Sometimes we communicate clearly, but others have different needs. Sometimes
we communicate poorly and conflict emerges because of others misunderstanding
us.
6. Emotional conflict can be caused by people’s deep-seated personal feelings about
one another. Emotions tend to last longer, difficult to control and harder to dissolve.
7. Disagreements over goals by setting up of objectives and sub-objectives in giving
priorities and weightages to different objectives are most often at the base of conflict.

The result of conflict

1. Conflicts may undermine professionalism and lead to under-utilisation of
organizational capacity / capability.
2. The most affected element in a group conflict is employee morale.
3. Although conflict is often a reflection of resistance by one party to innovation
recommended by the other party, it may also be source of motivation or both parties
to seek innovate solutions that will resolve conflicts in mutually satisfactory ways.
4. Conflicts are seen as inevitable in any organization. Absence of it may indicate
stagnation or group thinking. Without conflict an organization cannot grow and
develop and would not be able to maintain its vigour and adapt successfully to a
changing environment.

______________________________________________________________________________
Sikkim Manipal University Page No. 71
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

The objective of the project manager is clear. Complete the project on time, within
budget, and according to the customer's Conditions of Satisfaction, in other words-
according to specification, Staff development is not on the list. The only cases when staff
development is an -objective of the project manager occur when the project manager
also has line responsibility for the project team, in self-managed teams, or in project
forms of organizational structures. In these cases, staff development is definitely part of
the project manager's objectives; The project manager must develop the skills on his or
her project team to handle whatever assignments come along.

On the other hand, the functional (or resource) manager's objectives include
development of staff skills to meet project requirements and deployment of staff to
projects. These objectives pertain regardless of the organizational structure.

The project manager's objectives and the functional (or resource) manager's objectives
will often conflict. Part of the program for developing staff skills will occur through on-the-
job training. Functional (or resource) managers will look for opportunities to deploy staff
to project assignments that provide opportunities to learn new skills. The project
manager, on the other hand, would rather have experienced staff assigned to project
activities, especially activities that are critical to the completion of the project according
to plan.

The Project manager will not be interested in being the training ground for professional
staff.

Further complication arises in those situations where the functional (or resource)
manager is also a project manager. In matrix organizations, this situation occurs
frequently. Here the functional (or resource) manager is torn between assigning the best
professionals to the activity and assigning professionals so that they can learn new skills
or enhance current skills.

The last conflict arises when the choice between assigning a skilled professional to a
project not in his or her area of responsibility and assigning the professional to a project
in his or her area of responsibility emerges. In matrix organizations, this situation can
occur with regularity. The primary issues arise when the manager must assign staff to
projects. He or she not only has to staff projects internal to functional responsibilities but
also assign staff to projects outside the functional area.

______________________________________________________________________________
Sikkim Manipal University Page No. 72
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

The conflict intensity perceived by the project managers are for various sources and for
various phases of project life cycle. Following are the potential conflict sources which a
project manager faces:

1. Conflict over project priorities:

The views of project participants often differ over the sequence of activities and tasks
that should be understood to achieve successfully. Conflict over priorities may also not
oly between the project team and other support groups but also within the project team.

2. Conflict over administrative procedures:

A number of managerial and administrative oriented conflicts may develop over how the
project is managed. The definition of project manager’s reporting relationships, definition
of responsibilities, interface relationships, project operational requirements, plan of
execution, negotiated work agreements with other groups and procedures for
administrative support.

3. Conflict over technical opinions and performance trade-off:

In technology-oriented projects, disagreements may arise over technical issues.
Performance specifications, technical trade-offs and the means to achieve performance.

4. Conflict over manpower resources:

Conflicts may arise around the planning of the project team with personnel from other
functional and support areas or from the desire to use another department’s personnel
for project support even though the personnel remain under the authority of their
functional or staff superiors.

5. Conflict over cost:

Frequently, conflict may develop over cost estimates from support areas regarding
various project work breakdown packages. For example, the funds allocated by a project
manager to a functional; support group might be perceived as insufficient for the support
requested.

6. Conflict over schedules:

Disagreements may develop around the timing, sequencing and scheduling of a project
related tasks.

______________________________________________________________________________
Sikkim Manipal University Page No. 73
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

7. Personality conflict:
Disagreements may tend to center on interpersonal differences rather than on technical
issues. Conflicts often are ego-centered.

Self Assessment Questions: 1

(1) Conflict occurs because of competing __________ .
(2) Common conflicts in projects occur in the areas of
A. Manpower resources
B. Budgets and cost allocations
C. Schedules and planning
D. All of the above

5.3 Strategies for Managing Conflicts: Conflict Resolution

The next area for which operating rules are needed deals with how the team resolves
conflicts. Conflicts arise when two or more team members have a difference of opinion,
when the customer takes issue with an action to be taken by the project team, or in a
variety of other situations involving two parties with different points of view. In all of these
examples, the difference must be resolved. Clearly, conflict resolution is a much more
sensitive situation than the decision-making rule because it is confrontational and
situational, whereas the decision-making rule is procedural and structured.

To resolve conflicts
1. The strategy for managing conflicts is that of compromise (give and take). In
this approach conflicting parties are asked to make certain sacrifices in
exchange for some concessions from the other party for the good of the
company.
2. We must encourage productive conflict and reduce destructive conflict to
foster the positive outcome of disagreement and minimize more adverse
effects.
3. Another strategy is handling conflict head-on. It is nothing but standing firm
and taking the role of a dictator and rejecting the views and beliefs of the
other party or standing between the warring factions and ordering to cease
the conflict.
4. The success of resolving conflicts depends on the mutual cooperation and
creativity of the parties.
5. To successfully resolve a conflict, we must understand both sides of the
issues, discuss how the conflict affects people’s performance. Focus should
be on facts and behaviour and not on feelings or personalities/egos.
______________________________________________________________________________
Sikkim Manipal University Page No. 74
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

Depending on the particular conflict situation, the team might adopt one of these conflict
resolution styles:

Avoidant:
Some people will do anything to avoid a direct confrontation. They agree even though
they are opposed to the outcome. This style cannot be tolerated on the project team.
Each person's input and opinion must be sought. It is the responsibility of the project
manager to make sure that this happens. A simple device is to ask each team member
in turn what he or she thinks about the situation and what he or she suggests be done
about it. Often this approach will diffuse any direct confrontation between two individuals
on the team.

Accommodating:
Here, one party is ready for keeping the psychological door open to the other party.
When the issue is more important to oneself than to the other person, this strategy works
better under such situations. Forgetting or Forgiving on one issue may be key to moving
the conflict to a new level where issues may be discussed better. It can be a useful, but
a temporary fix among the parties.

Combative:
Some avoid confrontation at all costs; others seem to seek it out. Some team members
play devil's advocate at the least provocation. There are times when this is
advantageous—testing the team's thinking before making the" decision. At other times it
tends to raise the level of stress and tension, when many view it as a waste of time and
not productive. The project manager knows who these team members are and must act
to mitigate the chances of these situations arising.

Collaborative approach:
In this approach, the team looks for win-win opportunities. The approach seeks out a
common ground as the basis for moving ahead to a solution. This approach encourages
each team member to put his or her opinions on the table and not avoid the conflict that
may result. At the same time, team members do not seek to create conflict
unnecessarily. The approach is constructive, not destructive.

Consensus Building:
Consensus building is a process that a team can follow to reach agreement on which
alternative to proceed with for the item (action, decision, and so forth) under
consideration. The agreement is not reached by a majority vote, or any vote for that
______________________________________________________________________________
Sikkim Manipal University Page No. 75
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

matter. Rather, the agreement is reached through discussion, whereby each participant
reaches a point when he or she has no serious disagreement with the decision that is
about to be taken. The decision will have been revised several times for the participants
to reach that point.

Consensus building is an excellent tool to have in the project team tool kit. In all but a
few cases, there will be a legitimate difference of opinion as to how a problem or issue
should be addressed. There will be no clear-cut action on which all can agree. In such
situations the team must fashion an action or decision with which no team members
have serious disagreement even though they may not agree in total with the chosen
action.

To use the method successfully, make sure that everyone on the team gets to speak.
Talk through the issue until an acceptable action is identified. Conflict is good, but tries
to be creative as you search for a compromise action. As soon as no one has serious
objections to the defined action, you have reached consensus. Once a decision-" is
reached, all team members must support it.
If the project manager chooses to operate on a consensus basis, he or she must clearly
define the situations in which consensus will be acceptable. The team needs to know
these situations.

Brainstorming
Brainstorming is an essential part of the team operating rules because, at several points
in the life of the project, the creativity of the team will be tested. Brainstorming is a
technique that can focus that creativity and help the team discover solutions. There will
be situations where acceptable ideas and alternatives have not come forth from the
normal team deliberations. In such cases the project manager might suggest a
brainstorming session. A brainstorming session is one in which the team contributes
ideas in a stream-of-consciousness mode, as described in the next paragraph.
Brainstorming sessions have been quite successful in uncovering solutions where none
seemed present. The team needs to know how the project manager will conduct such
sessions and what will be done with the output.

To prevent conflicts
1. Set up firm procedures, guidelines, rules and regulations. Systems for
employees to follow.
2. Develop team-building concept among employees to work together in order
to avoid arising conflicts.
______________________________________________________________________________
Sikkim Manipal University Page No. 76
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

3. Prevent and resolve conflicts based on cross-functional interactions on a

continuous basis on the points of conflict.
4. Conduct awareness programmes for executives and workmen.

Role of a Project manager in handling conflicts

 As a Discussion Leader:
As a discussion leader the conciliator reduces irrationality and antagonism between the
parties. He guides them towards a problem-solving approach to their dispute; he
ensures that they discuss their differences in as friendly a manner as possible; he helps
them to analyse their problem, always striving to keep the analysis on rational ground;
he identifies the elements of the problem, both for the parties’ benefit and for his own.

 As a Safety Valve:
The project manager can place himself in the position of alternative target when he feels
that the parties are in an aggressive mood. By setting a substitute target, the teams can
achieve an emotional release without direct and immediate damage to the negotiations.

 As a Communication Link:
The conciliator fulfils an important function as a communication link between the parties:
serving as a communication link may either constitute his main conciliatory effort or be a
contribution to it. He not only-works as a conduit through which messages relayed from
one side to the other, are passed, but he also provides a thorough explanation and
interprets the intention of the party.

 As an Innovator:
The conciliator acts as an invaluable source of new information, and new thoughts,
particularly in providing the parties with different views of the issues, with possible
alternative solution and possibly an entirely new approach.

 As a Protector:
The conciliator plays a protecting role for making the parties ready for collective
bargaining positions by exploring alternative solutions during separate meetings.

______________________________________________________________________________
Sikkim Manipal University Page No. 77
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

 As a Stimulator:
Sensing the need for positive action, the conciliator can provide necessary impulse; he
makes a concise statement, supplies some date, gives a hint or suggestion. He
crystallises changes of opinion, in course of discussions, by intervening at the
appropriate moment and giving such ideas a concrete form.

 As an Adviser:
The conciliator tries to remove misunderstandings regarding the other's position,
Intentions and capabilities. He tries to see that such misinterpretations do not occur .

 As a Promoter of Collective Bargaining:

While intervening in a dispute he is not only concerned with obtaining settlement, but
often he assists and promotes collective bargaining and helps and guides the parties in
the development of their relationship.

Self Assessment Questions: 2

(1) Conflict Resolution Styles include

A. Accommodating
B. Collaborating
C. Avoiding
D. All of the above

(2) The role of a Project manager in a conflict situation is

A. As an advisor
B. As an innovator
C. As a safety valve
D. All of the above

5.4 Theories of Motivation

Not everyone can be motivated. In fact, in most cases the entire manager can do is
create an environment in which the subordinate might be motivated and then hope that
he or she is. It's really like farming. All the farmer can do is pick the crop to plant, the
acreage to plant it on, and the fertilizer to use, then hope that nature supplies the right
amounts of rain, wind, and sunshine. The same scenario applies to the project manager.
He or she must create a working environment that is conducive to and encourages

______________________________________________________________________________
Sikkim Manipal University Page No. 78
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

development of the team member and leave it up to the team member to respond
positively.

Different team runs the same project differently. This Variation is attributable to
differences in people, process and interactions. The interactions of a team are
dependent on the collective knowledge, skills, experiences, personalities, and behaviors
of the group. Each person has personal preferences regarding how to run the project
and how to work within the project, People have different work and communication
styles, and these personal preferences and differences represent the diversity of the
team.

All team members want the same thing (to achieve the project goals), but each goes
after it differently due to their diversity. This can generate both positive and negative
interactions. How well we mange human interactions is the key to the success of any
project. Research has shown that desired employee behaviors are motivated from all
three spaces in our project management model.

Theories on employee motivation have existed since the 19th century, beginng with Elton
Mayo’s famous studies at the Hawthorne factory of the Western Electric Company in
Chicago from 1924 to 1932. Mayo’s research revealed that workers were not only solely
driven by monetary benefits (organizational space) but were motivated by social
elements as well (team space). In act, social elements like communications, teamwork,
and employee involvement can lead to better work performance even when work
conditions are worsening. The Hawthorne studies give birth to the study of employee
management and highlighted importance of addressing the human needs of workers.

Following Mayo’s classic work, numerous long standing theories have been developed
about motivation. Abraham Maslow’s hierarchy of human needs (1954; figure) focuses
on the inner space and posits that people are motivated by five physiological level of
needs.

 SELF ACTUALIZATION (Creativity ,Self fulfiment)

 ESTEEM: (Reputation, Respect from others,)
 SOCIAL OR BELONGING: (Love, friendship group, membership)
 SECURITY (SAFETY): ( Economic and Physical)
 PHYSIOLOGICAL NEEDS: ( Food, water, clothing, shelter)

Physiological, security, social, esteem, and self actualization are the five levels of need
hierarchy. These five levels are treated as hierarchy where basic physiological needs

______________________________________________________________________________
Sikkim Manipal University Page No. 79
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

are sought first, then security, social, esteem, and finally, self-actualization. People must
satisfy the lower level before moving to the next higher level. Not everyone aspires to the
same level of human need or achieves self fulfillment. These five areas may be common
to everyone however, people operate at different levels, and organizations need to
support their workers in satisfying their desired level of need.

Fedrick Herzberg’s dual factor theory distinguished between factors causing satisfaction
(motivation) and those causing dissatisfaction (hygiene factors) Hygiene factors
employment factors that prevent dissatisfaction and are expected to be adequately
provided. Motivators are more personalized factors (personal space) that give people
feelings of achievement, recognition, enrichment and growth. This may include job
responsibilities, position, title authority and learning opportunities. In the three-space
model, hygiene factors represent things found in organizational space, such as salary,
benefits, job security, work conditions, policies and safety, and also team space such as
interpersonal relationships and supervision.

Victor Vroom’s expectancy theory (1995) deals with the concept of effort, performance
and reward – How the level of individual effort on a given task will translate into success
and personal reward. Before committing to task, people tend to weigh the level of effort
required versus probable benefits. They need to know that the job task will likely lead to
better results and that the results will lead to benefit that is meaningful to the employee.
Motivation is an inner judgment process effort (personal space) and expected outcomes.

David McClelland’s achievement theory (McClelland, Atkinson, Clark and Lowell, 1953)
believes that people are motivated by three basic needs. 1. Achievements – attain
realistic but challenging goals and gain advancement in the job; 2. Power – lead and
have their ideas prevail; and 3. Affiliation – Cooperative relationships with others, these
three needs are not mutually exclusive. People may be motivated by ne or two or all
three elements. Some people may be motivated by achievement and affiliation while
others are partially motivated by all the three. An organization should try to formulate
jobs and responsibilities that best fit I the Individual needs.

John Stacy Adam’s equity theory (1963) sates the importance of fairness when
managing groups of employees. Workers seek a fair balance between what they put into
their jobs (inputs) and what they get out of it (outcomes), Employees want to be treated
fairly and likely to compare their treatment to that of their peers. This theory recognizes
the motivational force of organizational space when rewarding for performance and how
favoritism and inequities in the system can lead to job dissatisfaction and demotivation.

______________________________________________________________________________
Sikkim Manipal University Page No. 80
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

Douglas McGregor’s Theory X and Y (1930) present two opposing sets assumptions
regarding the attitudes of mangers and employees. Basically theory X assumes that
workers are lazy and will avoid work if given the choice, while theory Y assumes that
workers are creative and want to do a good job. If we believe theory X is correct, then
management need to be authoritative and motivate employees through strict control of
the work environment with clear negative consequences for non performance. It requires
a task oriented, fear based system of management (top-down, organizational space
control). In contrast the theory Y workers want to create, contribute, and participate in
work planning.

Historic motivational theories are more centered on organizational space and

responsibility of management in motivating its workers. However, early research found
that social roles and employee involvement were important factors. Earlier theories
focused on organizational management, with little treatment on team-based motivations
and behaviors. Before 1980, team based organizational concepts were scarce.
Motivation is highly individualistic and situational

A good project manager has a positive influence in all three spaces. Management
system is easier to influence because they are visible and standardized, while human
factors are much more difficult to manage because they are invisible and unique to each
individual. Good managers have hard and soft skills to meet people’s core needs.
Project success is not only about meeting deadlines and goals but also about meeting
the expectations of people.

Self Assessment Questions: 3

(1) Match the following:

A Victor Vroom
B Elton Mayo
C John Stacy Adams
D Douglas McGregor
E Frederick Herzberg
A Theory X and Y
B Equity Theory
C Expectancy Theory
D Hawthorne Experiments
E Hygiene Factors

5.5 Summary
Human factors represent the diversity in people. It is well accepted that workforce
diversity creates better results and higher organizational performance. Creating an
inclusive work environment generates better ideas, production and quality products.
______________________________________________________________________________
Sikkim Manipal University Page No. 81
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

Many companies consider diversity a corporate value and say they value and respect it.
An organization can sacrifice the latter now and then, but to be successful in the long
term, it needs to keep, develop and motivate people. A sustaining organization relies on
human energy and motivation. Human factors provide the energy and motivation to
achieve success. By having a better understanding of this energy we can tap it and draw
out the best in people. More important, we can draw out the best in ourselves.

5.6 Terminal Questions:

1. Explain the term ‘conflict’ in an organizational context.
2. What are they different types of conflicts that arise in organizations?
3. Explain the role of conflicts between staff and line departments and what are the
results of such conflicts?
4. What are the sources of conflict that a Project Manager faces in organizations?
5. What are the different styles of conflict resolution and what are the possible roles
for the project manager in such conflict situations?
6. Explain the various theories of motivation that give the background to
understanding conflicts in organizations.

5.7 Answers to Self Assessment Questions:

SAQ 1
(1) Goals
(2) D

SAQ 2
(1) D
(2) D

SAQ 3

(1) Match the following:

A Victor Vroom
B Elton Mayo
C John Stacy Adams
D Douglas McGregor
E Frederick Herzberg
A Expectancy Theory
B Hawthorne Experiments
C Equity Theory
D Theory X and Y
E Hygiene Factors

______________________________________________________________________________
Sikkim Manipal University Page No. 82
Managing Human Resources in Projects Unit 5
_____________________________________________________________________________

Answers to Terminal Questions:

(1) Refer Section 5.1, Page 2,3
(2) Refer Section 5.1 Page 3,4
(3) Refer Section 5.1, Pages 5,6,7
(4) Refer Section 5.1, Page 8
(5) Refer Section 5.2, Pages 10,11,12,13
(6) Refer Section 5.3, Pages 15,16,17,18

______________________________________________________________________________
Sikkim Manipal University Page No. 83