2011 Proceedings of PICMET '11: Technology Management In The Energy-Smart World (PICMET)

Transcription

1 Towards a Framework for Human Resource Management Processes in the Mature Project Orientated Organisation: The Case for an ICT Organisation in South Africa Jacob Duif, Marie-Louise Barry Department of Engineering and Technology Management, University of Pretoria, South Africa Abstract--Projects are executed by people. Human Resource Management (HRM) processes are required to make the most effective use of the people in a project environment in order for organisations to be competitive. Project Orientated Organisations (POO) have specific characteristics which have special requirements in terms of an organisation s HRM processes as opposed to those processes employed by classically managed organisations. In this study, the focus group technique was used to explore and understand the HRM processes employed by the mature POO with a specific focus on their requirements and dependencies. The study was conducted within one of the leading information and communications technology (ICT) companies in South Africa. The organisational strategy is the driver of the HRM processes in the mature POO. POO s spend a significant amount of time and resources to hire new employees. It is therefore important that the right resources are appointed. The research results identified that the HR planning and recruiting processes are the key processes in the mature POO. The research further identified the differences in sources of information required by the Human Resource (HR) planning processes of organisations executing internal projects as opposed to external projects. I. INTRODUCTION According to PricewaterhouseCoopers [1] organisations have been moving away from operations to project management as part of their competitive advantage strategy. An organisation s success in its business markets is determined by its success in the talent market. In every domain of business, executives know that their ability to compete is directly related to their ability to attract, develop, motivate, organise, and retain competent people [2]. Gareis [3] defines the POO as an organisation which achieves its strategic goals through projects. The organisational strategy Management by projects is a primary characteristic of the POO. Huemann et al [4] states that the POO has specific characteristics in particular the temporary and the dynamic nature of the work environment which creates specific challenges for employers and employees with regard to HRM. The preliminary investigation suggests that POO s have unique human resource management requirements and processes. It is therefore important to understand the HRM processes in the POO and their dependencies in the mature POO. The objectives of this exploratory research were: to develop an understanding of the characteristics of the POO; to identify the HRM processes in the mature POO in contrast to the HRM processes in the classically managed organisation; and to determine the requirements and dependencies of the HRM processes in the mature POO. II. THE PROJECT ORIENTATED ORGANISATION According to PricewaterhouseCoopers [1] organisations have been turning from operations to project management as part of their competitive advantage strategy. Projects are a means of organising activities that cannot be addressed within the organisation s normal operational limits and are, therefore, often utilised as a means of achieving an organisations strategic plan [5]. According to Gareis [3] a project oriented organisation can be defined as an organisation which: achieves its strategic goals through projects; applies temporary project organisations for the performance of complex processes; manages a project portfolio of both internal and external projects; have specific permanent organisational structures for example a project management office to provide an integrative function; has an explicit project management culture; and perceives itself to be a POO. Huemann et al [4] states that the degree of project orientation is dependent on the size, number and the types of projects undertaken by an organisation. An organisation s strategy of management by projects may only apply to certain organisational units. The more types of projects a POO holds in its portfolio the higher the management complexity due to the increased level of differentiation within the organisation. [3]. Huemann et al [4] argues that if management by projects is the strategy of an organisation this would imply that the HRM processes and practices in the POO would be supportive of this strategy and would therefore differ from traditional HRM processes and practices where the emphasis would be on routine products and services and where job requirements are well defined and static. III. HUMAN RESOURCE MANAGEMENT PROCESSES IN THE POO HRM in the POO is more decentralised and requires HRM tasks to be carried out by the HRM department, line managers and project managers [4]. Huemann et al [4] have developed a model of human resource processes in the POO. This model indicates the differences between the HRM processes applied to classically managed organisation and the POO. 2020

2 Figure 1 HRM in the POO versus HRM in the classically managed company Source: Huemann et al [4] Figure 1a depicts the HRM processes from conventional HRM literature such as recruitment, selection and release. There are however additional HRM processes in the POO as depicted in Figure 1b: assignment to projects, engagement on projects and re-assignment after projects have been completed which are the focus areas of this study. A. Assignment to projects The process of assigning people to new projects or programs has similarities to recruitment of resources to the parent organisation and this process may continue throughout the project lifecycle. The human resource planning process and recruitment processes are the sub-process to the assignment to project process and consist of: Human resource planning: This process enables the organisation to determine project roles, responsibilities, and reporting relationships which is contained in a staffing management plan [5]. Recruitment: This process enables the organisation to get the right person or group assigned to and working on the project at the right time. This process includes the recruitment, selection and placement of competent people to the project [6]. B. Employment on the project The HRM sub-processes to the employment on the project process include the development of the project team and the management of the team. The development of the project team is aimed at improving the competencies and interaction of team members to enhance project performance. The management of the project includes those activities required to track team member performance, resolving issues, providing feedback and coordinating change to enhance project performance [5]. C. Dispersement from the project The organisation needs to decide whether the employees when released from the project will be: assigned to a new project immediately; assigned to a future project where their skills will be better used; or held in suspense because there is no project for them to be assigned to. It is at the end of a project that the POO is most vulnerable to loosing core workers, especially if the workers are faced with a period of sitting on the bench. At the end of the project the project team should be debriefed and advised about the future. Options available to organisations, if they do not have other projects to assign employees to include: sitting on the bench; training or personal development; or technical and process development in the project management office [4]. IV. METHODOLOGY The findings presented in this paper are based on an exploratory study using the focus group technique. The main stages of the focus group process include: planning, recruiting, moderating, and analysis and reporting. The focus group method was selected based on the many advantages of the focus group method as described by Barry et al [7], it is a quick and effective method of collecting qualitative data as inputs can be obtained from several people at the same time; during discussions, the synergistic group effort produces a growing number of ideas which stimulates the generation of new ideas; data of a broad range, depth, detail and personal background is generated; and in the focus group process, the researcher is in the minority and the participants interact with their peers. The disadvantages associated with the focus group can be mitigated by ensuring that the moderator has sufficient skills, 2021

3 dependable data collection and application of rigorous analytical methods. The disadvantages focus group method according to Barry et al [7] includes: not all respondents are at ease with working in a group environment and may find it intimidating to air their views in the bigger group; the outcome can be influenced by the group effect resulting in that the opinion of one person dominates as some participants are reluctant to contribute to the discussion and that an opportunity is not given for all participants to interact; and due to the open-ended nature of the questions, the researcher has less control over the data than in, for example, a survey. According to Barry et al [7] focus groups are organised discussions or interviews, with a selected small group of individuals, discussing a specific, predefined and specific topic under the guidance of a facilitator or moderator. A focus group is also a collective activity, where several perspectives on the given topic can be obtained, and where the data is produced by interaction [7]. The focus group comprises of individuals with specific experience in the topic which is explored during the focus group [7]. Interaction in focus groups is important as it allows participants to ask questions as required, and to reconsider their responses. The focus group participants benefit from the opportunity to be involved in decision making, the fact that they feel valued as experts, and the chance to work in association with their peers and the moderator [7]. The focus group for the purposes of this study consisted of seven people, the Business Manager-Talent Management, three Senior Project Managers, a Senior Human Resources Consultant, Resource Team Lead and a Resource specialist within a business unit of one of the leading information and communications technology (ICT) companies in South Africa. V. RESULTS The study found that the HRM processes entrenched in the mature POO are as listed in Table 1. Each of the process steps is dependent on specific inputs and on previous process steps. Industry and country specific constraints on HRM processes for example legislation, charters and policies amongst others, may impact on the HRM processes or subprocesses in the POO. In the absence of the process dependencies it would be difficult for the POO to achieve a high project management maturity level. TABLE 1: PROCESSES IN THE MATURE POO HRM Process in the Mature POO Process Dependencies/Inputs Vision Mission Statement Organisational Strategic Plan Organisational Structures Project Council (Internal Projects) Project Management Office Strategic Partnerships Strategic Plans and policies Project Human resource planning HRM Strategy Knowledge management Strategy Transformation Polices Project Portfolio Process (Internal projects) Business Opportunity Planning (External Projects) Project Scope Staffing management Plan Succession Planning Resource Capacity Planning Job Profile Skills Database Recruitment Interview Panel Psychometric Tests Organisational values Formal Contracting Process Assignment to Projects Roles and responsibilities Induction Process Project organisation chart Project methodology and templates Employment on the Project Project Schedule and milestones Performance assessment Development Plan Professional Counselling Service Release Criteria Release from Projects Contract Management Processes 2022

4 A. Project human resource planning The human resource planning process, which is aligned with the organisation's strategic plan, enables the organisation to appoint the right people at the right time. It is important to differentiate between project orientated organisations that utilise projects for internal capital expenditure or operational improvement purposes and organisations in the service industry which perform projects for external clients under contract in order to generate revenue as the inputs into the human resource planning processes are different. The mature POO that utilises project management for internal projects generally have Project Portfolio Process (PPP) in place to select, prioritise and manage projects In the service industries the long term human resource planning is dependent on the strategic plans of the organisation. The short to medium term the human resource planning is underpinned by the business opportunity planning and associated budgeting processes. The organisational knowledge management strategy may require the development of the core competence of the POO for the on-going support of the project deliverables or for subsequent project phases and may require the recruitment or development of of resources. In the South African context every designated employer must implement affirmative action measures in order to achieve employment equity in the organisation. The HRM planning processes must therefore be aligned to the organisation s transformation strategy and associated policies. Succession planning is an important component in the HRM planning process that should be considered, for long term projects in particular, due to employee actions such as retirements and resignations. Unplanned changes in the project team could have a detrimental impact on the project. B. Recruitment The nature of the project environment is generally one of a technical and a people component. The respondents recommended having a panel interview as the panel needs to assess the technical and socio-political skills of the candidate based on a profile of the ideal candidate. Profiling can assist with the identification of training needs where candidates do fully comply with all the criteria contained in the profile. In the POO the recruiting process is required for each project and is based on the project organisation chart, roles and responsibilities and the staffing management plan of each project. In order to have an effective recruitment process it is required that the recruiter is knowledgeable about the requirements of the position and has an understanding of project management environment. Close collaboration is required between the recruiter and the project manager as the project manager has to ultimately work with and manage the resource. The alignment of the candidate to the organisational values should be assessed during the recruitment process to ensure that the candidate will fit into the organisational culture of the POO. Psychometric tests could be employed to provide valuable information when in the final selection process of shortlisted candidates. C. Assignment to projects A person can be assigned to multiple projects simultaneously and requires a formal contracting process stating a clear definition of the assignment and the roles and responsibilities for the specific assignment for each project team member Project schedule changes may impact on shared resources between projects. This may require negotiation on the part of the project manager with all stakeholders and the prioritisation of project activities to unlock the most beneficial solution for the organisation within the resource constraints. The Project Council will have the final say in setting project priorities with regard to resource allocation. D. Employment on the project As project teams differ on each project is important for all projects to have formal induction process in order to align the project team with the scope of the project, clarify roles and responsibilities in the project, communicate the implementation methodology and the rules of engagement of the project. The project organisation chart defines the reporting relationships of the project team. The project methodology in the mature POO is well defined and the processes are supported with the pre-defined templates which reduces the complexity in the project and the induction process. The induction process should be repeated as project team members are assigned to the project throughout the project lifecycle. Project schedule and milestone dates may change as the project progresses due to internal and external factors. The changes in project schedules not only have an impact on active projects where resources are shared but also on planned projects planning to use the resources assigned to the active projects. The HRM processes in the POO must be agile in order to adapt to these changes in project schedules or the project environment In the POO the performance assessments are performed by the respective project managers throughout the lifecycle of the project. The definition of Key Performance Indicators (KPI s) and the measurement thereof in the project environment is complex due to the interdependency that exists between the different active projects and project activities within a project. Areas of development are identified during the performance assessment process which is translated into a training and development plan for the person. The dynamic and often stressful environment of the POO often contributes to the work related and personal problems. Today employers increasingly recognise the fact that these problems can consume employees to the extent that their motivation and performance is impacted. The mature POO often provides a professional counselling service to 2023

5 employees to promote employee well-being and improve performance. E. Release from projects On completion of the project or when a project or a portion thereof is suspended HRM processes are required to manage the release of the resources form the project. Resources can be assigned to alternate projects where there is a requirement for the skills of the persons released from the project after meeting the release criteria stated in the staffing management plan. In the event that there are no project requirements for the resources it provides the POO with an opportunity to develop the resource in accordance with the skills development plan which is updated during the project performance assessment process. The skills development plan should be aligned with the strategic plan of the POO which identifies the future skills requirement of the organisation. Depending on the termination date of their contract and contractual notice period, external resources will apply for other vacancies prior towards the end of their project assignments. Should the completion of the project be delayed or suspended through internal or external factors the POO is at risk of losing the resources prior to the closure of the project. In the event that there are no project requirement for external resource a decision has to be made to either terminate the respective contract or to extend the contract and keep the resource on the bench until a suitable vacancy arises. Pro-active and well established external resource contract management processes are therefore critical in the mature POO VI. CONCLUSIONS AND RECOMMENDATIONS Organisational Strategy is the driver of the HRM Processes in the mature POO and the content hereof is clearly communicated to the entire organisation. The research emphasised that the sources of information required by the HR planning processes for organisations executing internal projects as opposed to external projects. An accurate and up to date HRM system which includes capacity management functionality is an important enabler of all HR Processes in the mature POO. POO s spend a significant amount of time and resources to hire new employees. It is therefore important that the right resources are appointed and the respondents were of the opinion that the planning and recruiting processes are the key processes in the mature POO. The study confirmed that the mature POO does employ well defined and established HRM processes which are specifically aligned to the project environment which are equally relevant to both internal and external resources. It is recommended that the study is expanded to include POO s with a high project management maturity level in order to confirm the findings contained in this report. Although the information and communications technology industry in South Africa is a very relevant industry sector to conduct the study in, it is recommended that survey research study should be conducted inclusive of POO s, with high project management maturity levels, irrespective of the industry sector they function in. HRM processes which are generally regarded as best practice are county independent and it is therefore recommended that the study includes mature POO s beyond the borders of South Africa. Industry and country specific constraints on HRM processes for example legislation, charters and policies amongst others, and the impact thereof on the HRM processes or sub-processes, should however be highlighted in the results of the study. The research identified many areas of improvement in the organisation in which the research was conducted. It is recommended that a project approach is followed with clearly defined roles and responsibilities, timelines, outcomes and budget to address the areas of improvement identified during this survey. This project may be an interesting topic for a case study despite the risk that the results of the study may be industry or country specific. REFERENCES [1] PricewaterhouseCoopers, Boosting Business Performance Through Programme and Project Management. visited 20 February [2] Carnegie Mellon University, People Capability Maturity Model. Software Engineering Institute: Pittsburgh. [3] Gareis, R., Competences in the Project-oriented Organization. Project Management Research at the End of the Millennium, Project Management Institute. [4] Huemann, M., Keegan, A., & Turner.J.R., Human resource management in the project-orientated company: A review. International Journal of Project Management 25, [5] Project Management Institute (PMI), A Guide to the Project Management Body of Knowledge (PMBOK), third edition, Project Management Institute: Pennsylvania. [6] Steyn, H., Basson, G., Carutruthers, M., du Plessis, Y., Kruger, D., Prozesky-Kuschke, B., van Eck, S., Visser, K., Project Management A Multi Disciplinary Approach. FPM Publishing: Pretoria. [7] Barry, M. Steyn, H.,Brent, A, Determining the Most Important Factors for Sustainable Energy Technology Selection in Africa: Application of the Focus Group Technique. 2024