International Project Management. prof.dr MILOŠ D. MILOVANČEVIĆ

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1 International Project Management prof.dr MILOŠ D. MILOVANČEVIĆ

2 Project Human Resources Management

3 Many corporate executives say People are our most important asset People determine the success and failure of organizations and projects. Projects are not successful if we do not have a good project team. What are the qualities of a good team? Experience Skills Motivated people Good management Strong direction Teamwork

4 What is Project Human Resource Management? Making the most effective use of the people involved with a project. HRM includes processes needed to plan, obtain, orient, assign, and release staff over the life of the project. HRM processes include: Human resource planning: Identifying and documenting project roles, responsibilities, and reporting relationships. Acquiring the project team: Getting the needed personnel assigned to and working on the project. Developing the project team: Building individual and group skills to enhance project performance. Managing the project team: Tracking team member performance, motivating team members, providing timely feedback, resolving issues and conflicts, and coordinating changes to help enhance project performance.

5 Keys to Managing People Psychologists and management theorists have devoted much research and thought to the field of managing people at work. Important areas related to project management include: Motivation theories Influence and power Effectiveness

6 Intrinsic and Extrinsic Motivation Intrinsic (or Inner) Motivation causes people to participate in an activity for their own enjoyment (for example, kids play sports because it is fun and they like being with their friends) Extrinsic (or External) Motivation causes people to do something for a reward or to avoid a penalty (for example, a professional athlete might enjoy the sport, but he/she chooses to play for a particular team because it pays more money or has more prestige). What kind of motivation caused you to enroll this master course?

7 People are usually attracted to a job for extrinsic reasons (good pay, good benefits, good working conditions) People usually stay with a job for intrinsic reasons (they like the people they work with, they find the job challenging, people praise them for the job they do) Paying people more money (extrinsic motivation) does not make them work harder (but it might keep them from leaving and it might attract new employees). Intrinsic motivation is what builds loyalty and dedication in your employees.

8 Maslow s Hierarchy of Needs Abraham Maslow, a US Sociologist in the 1950 s, argued that humans possess unique qualities that enable them to make independent choices, thus giving them control of their destiny. Maslow developed a hierarchy of needs, which states that people s behaviors are guided or motivated by a sequence of needs. According to Maslow, people s needs are in layers. Bottom layer needs must be met before people are concerned with the next layer up.

9 Maslow s Hierarchy of Needs

10 Herzberg s Motivational and Hygiene Factors Frederick Herzberg wrote several famous books and articles about worker motivation. He distinguished between motivational and hygiene factors. Hygiene factors explain why people choose to work for you, while motivational factors answer why people work harder.

11 McGregor s Theory X and Y Douglas McGregor popularized the human relations approach to management in the 1960s. Theory X assumes that the average person: dislikes work and attempts to avoid it, has no ambition, wants no responsibility, and would rather follow than lead, is self-centered and therefore does not care about organizational goals, resists change, is gullible and not particularly intelligent. Essentially, Theory X assumes that people work only for money and security.

12 McGregor s Theory X and Y Theory Y makes the following general assumptions: Work can be as natural as play and rest. People will be self-directed to meet their work objectives if they are committed to them. People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment. Under these conditions, people will seek responsibility. Most people can handle responsibility because creativity and ingenuity are common in the population. Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the employee's own quest for fulfillment as the motivator. McGregor sees these theories X and Y as two quite separate attitudes. Theory Y is difficult to put into practice in large mass production operations, but it can be used initially in the managing of managers and professionals.

13 McClelland s Acquired-Needs Theory According to this theory we are all motivated by a bundle of certain basic needs, and some of us are motivated more strongly by some of these needs than by others. Are you a "mover and a shaker" who enjoys motivating other people to get a job done, or are you the type of person who avoids the aggravation of getting everyone else to pull their own weight? The idea of these multiple needs theories is that we all have the drive to achieve to some degree, but some people have a lesser amount of this drive and others have a greater amount.

14 McClelland s Acquired-Needs Theory Specific needs are acquired or learned over time and shaped by life experiences, including: Achievement (nach): achievers like challenging projects with achievable goals and lots of feedback Affiliation (naff): people with high naff desire harmonious relationships and need to feel accepted by others, so managers should try to create a cooperative work environment for them Power (npow): people with a need for power desire either personal power (not good) or institutional power (good for the organization); provide institutional power seekers with management opportunities

15 Individual work Assess yourself with regard to your ability to work as a team member using McClelland's Three Needs Theory. How might you classify yourself? Are you a nach, naff or npow type of person? How would your team members classify you?

16 High nach: Some people like goals, some do not. These people are high achieves. they are not gamblers they avoid very easy or very difficult tasks low odds of losing present no challenge to their skills high odds of losing offer no rewards from happenstance success get most satisfaction from "50-50 odds High npow: these people like being "in charge" more interested in the prestige of power than in effective performance High naff: these people strive for friendship prefer cooperative rather than competitive situations desire relationships with a high degree of mutual understanding

17 McClelland's idea suggests why different people behave in different ways. We all have more or less of a need on some of these factors, making each of us motivated toward different personal goals. People who have a higher nach would probably make better entrepreneurs or salespeople and be lousy team players. People who have a higher npow would probably make better leaders but could be unpleasantly "arm twisters" in some situations. People who have a higher naff would probably make the best team players but might lack the "self drive" to get anything done if left to do a job without supervision.

18 Ways to influence people involved in the project Managers must understand the types of powers they have. Some power is better to use than others. Power that builds trust, respect and which affirms people is best. Projects are more likely to succeed when project managers influence people using: Expertise Work challenge Projects are more likely to fail when project managers rely too heavily on: Authority Money Penalty

19 Empathic Listening and Rapport Good project managers are empathic listeners, meaning they listen with the intent to understand. Before you can communicate with others, you have to have rapport, which is a relation of harmony, conformity, accord, or affinity. Mirroring is the matching of certain behaviors of the other person, and is a technique used to help establish rapport.

20 Organizational Planning Involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships The assignment can be internal or they may come from outside. Internal groups are usually composed of specific functional departments, such as IT, engineering, marketing, or account. Organizational planning is often tightly linked with communications planning since the project s organizational structure will have a major effect on the project s communications requirements.

21 Inputs to Organizational Planning Project interfaces Organizational interfaces (formal and information report relationships among different organizational units); Technical interfaces (formal and informal reporting relationships among technical disciplines); Interpersonal interfaces (formal and information reporting relationship among different individual working on the project) Staffing requirements define skills required of individuals or groups and the desired time frame within which they ll be needed. Constraints factors such as organizational structure, collective bargaining agreements with unions or other employee group, preferences of the project team, expected staff assignments.

22 Tools and techniques Templates help to define roles and responsibilities or reporting relationships HR practices help to plan the structure of project team Organizational theory help to structure the organization Stakeholder analysis help to ensure stakeholders needs and expectations are met.

23 Outputs from Organizational Planning Role and responsibility assignments delegation of roles and responsibilities; R&R may vary over time; most R&R will be assigned to stakeholders who are actively involved in the work of the project; Responsibility Assignment Matrix is often used for this purpose Staffing management plan describe when and how HR will join and leave the project team. Resource histograms that show resource requirements, their usage, and availability along a timeline are often incorporated into the staff management plan. It is part of the project plan. Organization chart displays the reporting relationships in a graphic format (OBS). Supporting details includes organizational impact, job descriptions, training needs.

24 Staff acquisition Involves getting the people resources needed assigned to and working on the project. The project manager doesn t not always have direct control over these resources because many of them will be assigned to the project team by other managers. The best resources are not always internaly available, and the project management team must take care to ensure that the resources which are available will meet project requirements.

25 Staff acquisition Staffing plans and good hiring procedures are important in staff acquisition, as are incentives for recruiting and retention Some organizations allow people to work from home as an incentive Research shows that people leave their jobs because they don t make a difference, don t get proper recognition, aren t learning anything new, don t like their coworkers, and want to earn more money

26 Inputs to Staff acquisition Staff management plan describe when and how HR will join and leave the project team. Resource histograms that show resource requirements, their usage, and availability along a timeline are often incorporated into the staff management plan. It is part of the project plan. It is the main Organizational planning output. Staffing-pool description includes the characteristics of potential staff, their experience, interests, characteristics, and availability. Recruitment practices include various organizational policies, guidelines, and procedures governing staff assignment. These are a constraint on staffing.

27 Tools and techniques Negotiations ensure that there are appropriate resources at the required time. It is the role of project manager negotiate with functional managers or others (e.g. other project managers) Pre-assignment in some cases, staff were promised the assignment before the project started. It is an internal practice in many organizations. Procurement recruiting people outside the organization. This technique entails hiring consultants and contractors

28 Outputs from Staff acquisition Project staff assignments indicate who will work on the project full-time, parttime, or variably. Project team directory lists all project team members and key stakeholders. It can be a simple, informal list or very detailed.

29 Resource Loading and Leveling Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods Resource histograms show resource loading Over-allocation means more resources than are available are assigned to perform work at a given time Resource leveling a technique for resolving resource conflicts by delaying tasks The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce overallocation

30 Sample Resource Histogram for a Large IT Project

31 Team Development The project manager must enhance the team to function as a coordinated unit it takes teamwork to successfully complete most projects This is critical on uncertain projects, such as risky research and development (R&D) project It is necessary to develop each person in both managerial and technical areas. Training can help people understand themselves, each other, and how to work better in teams Team building activities include physical challenges psychological preference indicator tools

32 Inputs to Team Development Project staff It is an output of Staff Acquisition process, where it is project staff assigned. The key is that particular skill sets for individuals and the team are available to support the project. Project plan incorporates the integrated documents that provide the baseline for controlling changes. Staffing management plan It is the main Organizational planning output

33 Inputs to Team Development Performance reports alert the project team to issues that can cause problems in the future. Status reports describe the project s current standings. Progress reports describe the team s accomplishments. External feedback criticism from outside the project helps the project team make periodic measures of performance.

34 Tools and techniques General management skills include leadership, communication, negotiation skills, problem solving, and influencing the organization. Reward and recognition system motivates people through intrinsic factors like responsibility, promotions, and achievement, as well as extrinsic factors like pay raise, and working conditions. If rewards are given in a timely and public manner, they promote desired behavior.

35 Tools and techniques (2) Collocation despite the fact that various communications technologies can bring people together easily, it is still generally a good idea to places team members in the same physical location. It can help to develop the team Training it help to enhance team skills, knowledge, and capabilities. Training costs need to be considered in developing the project Team-building activities any actions that improve team performance Other tools: Social Styles Profile, Meyers-Briggs Type Indicator

36 Reward and Recognition Systems Projects must often have their own reward and recognition systems since the systems of the performing organization may not be appropriate. Team-based reward and recognition systems can promote teamwork. Focus on rewarding teams for achieving specific goals. Allow time for team members to mentor and help each other to meet project goals and develop human resources. To be effective, such systems must make the link between performance and reward clear, explicit, and achievable.

37 Meyers-Briggs Type Indicator (MBTI) MBTI is a popular tool for determining personality preferences and helping teammates understand each other Four dimensions include: Attitudes: Extrovert/Introvert (E/I) Functions: Sensation/Intuition (S/N), Thinking/Feeling (T/F) Lifestyle: Judgment/Perception (J/P) NTs or rationals are attracted to technology fields IT people vary most from the general population in not being extroverted or sensing

38 Outputs from Team Development Performance improvements includes anything that improves individual skills, enhances the ability of the team to function as a team, or identifies more efficient methods of working. Input for performance appraisals comprises evaluations of each staff member s contribution to the project Project manager can use periodic evaluations and/or annual performance reviews according to the organization s HR policy.

39 General Advice on Teams (Team Managers) Focus on meeting project objectives and producing positive results Fix the problem instead of blaming people Establish regular, effective meetings Nurture team members and encourage them to help each other Acknowledge individual and group accomplishments

40 Using Software to Assist in Human Resource Management Software can help in producing RAMS and resource histograms Project management software includes several features related to human resource management such as viewing resource usage information identifying under and over-allocated resources leveling resources

41 Project Resource Management Involves Much More Than Using Software Project managers must Treat people with consideration and respect Understand what motivates them Communicate carefully with them Goal is to enable project team members to deliver their best work

42 Summary Importance of Human Resource Management Project human resource management processes Organizational planning Staff acquisition Team development Keys to Managing People motivation: Hierarchy of Needs (Maslow) Motivational and Hygiene Factors (Herzberg) Theory X and Y (McGregor) succeed factors (expertise and work challenge) fail factors (heavily on authority, money and penalty)

43 Summary 2 influence and power: types of power Organizational Planning identifying, documenting, and assigning project roles, responsibilities, and reporting relationships project organizational charts work definition and assignment process responsibility assignment matrixes resource histograms using software to assist in HRM

44 Literature: Project Management Institute, A guide to the project management body of knowledge (PMBOK), 2004 Schwalbe K. Information Technology Project Management, Thompson,