BEHAVIORAL ASPECTS OF PROJECT MANAGEMENT

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Behavioral Aspects of    

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Behavioral Aspects of Project Management

Ivan Menendez, Pooya Alam, Matthias Schueller, Tess Kroeker, Farshad Sarmad

MGT 573

Project Management in the Business Environment

                                                        Workshop II

Eli Konorti

February 28, 2007

University of Phoenix


Behavioral Aspects of Project Management

The challenge to understand and evaluate factors which contribute to successful project outcomes has been a growing field of both interest and research.  In addition to understanding and adapting a leadership style which promotes achieving desired results, project managers must consider the influences that organizational culture and human behavior have upon project success. This paper examines conditions in project management which create potential negativity among project team members and stakeholders, and how a successful project leader responds to crisis situations. Additionally, the paper proposes best approaches to building a successful project team including conditions where a project has been compromised and morale amongst team members is low.  The paper will describe strategies that project managers use to successfully manage relationships among team members, including external stakeholders, specific to project management under crisis conditions, with the objective of redirecting the  project towards a successful outcome.  This paper highlights the importance of utilizing project management and leadership strategies that have been researched and tested in a variety of organizational and project management scenarios.  

Organizational Culture

Organizational culture refers to “the underlying system of shared beliefs, attitudes and values which are reflected in the way the organization operates.”(Conyers & Kaul, 1990, p.133) As exhibit 16.1 illustrates, beliefs, values, and assumptions are the main factors defining organizational cultures. These three factors impact all areas of organizations. However, the factors operate beneath the surface and their effects are not directly observed.

From Canadian Organizational Behavior (5th ed.) by S.L. McShane, 1998, p.456.

Generally, culture affects team performance through serving three important functions in organizations: First, organizational culture deeply influences employee decisions and actions by defining standards of behavior within the firm. Second, culture encompasses employees’ needs for social identity and increases performance through generating commitment among people and the organization. In fact, “corporate culture is a social glue that bonds people together and makes them feel part of the organizational experience.” (McShane, 1998, p.461) Finally, organizational culture assists employees to better understand management systems, organizational events and processes.

There is a strong relationship between organizational culture and project success. In addition to the mentioned factors, culture can increase project’s performance only when the cultural content of an organization is supportive to the sort of development desired. Cultural characteristics of the environment can be in alignment with effective project management strategies, or absolutely incongruous with them. According to Gray and Larson (2005), ineffective project management results similar to the scenario described in the syllabus can be generated with organizational cultures in which cross-functional cooperation is discouraged, rewards are based on relations rather than performance, and where tight supervision and low tolerance for conflict and risk have become a norm. In such circumstances, it is the project manager’s duty to overcome the negative cultural effects on the project. Greater effort, attention, resources and management authority are required in order to achieve the project success.

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Accelerating trends of globalization, outsourcing, downsizing, mergers, IT, and job specialization in today’s business environment have made it important for managers to effectively identify and manage organizational cultures. Project managers should be able to understand the culture of their organization. Furthermore, project managers need to interact with project team’s cultures, subcultures of organization departments, project’s clients, and the external resources. According to Schein (1997), cultures can work in support of management’s strategies if there is a certain level of consensus in the following five areas;

1. Primary tasks and core missions.

2. Goals.

3. The means to accomplish goals.

4. ...

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