Introduction

Project management is a critical mechanism for capitalizing on entrepreneurial spirit and generating new products and services. Stuckenbruck (1982) has defined a project as a shot, time-limited, goal directed, major undertaking, requiring the commitment of varied skills and resources.”  A key element of project management is the creation of a temporary organization within the existing hierarchy of the firm. This organization relies upon formal and/or informal coordinating mechanisms to integrate the efforts of people drawn from different disciplines who work either full or part time on the project. Within the product development process, project management is commonly used to complete the technological development and test marketing phases (Maile and Bialik 1984). Project management centralizes responsibility for budgetary cost control, schedules, resource allocation, technical quality, and client, customer, or public relations. (Sayles 1989) Creative problem solving is as well enhanced by the diversity of the specialization, background, and experience of the participants working toward a common objective. (Adams and Martin 1987) Since the new product/service will eventually be incorporated into the mainstream operations of the firm, the involvement of specialists from different areas helps make the project specifications and functioning consistent with the existing constraints of the firm. The normal routines and activities of the firm can continue because the innovation is conducted outside the normal boundaries of the organization by the new temporary operation. (Kerzner and Thamhain 1984)


 


Overview of Research

There are three kinds of research methods, correlational, experimental and descriptive. (Walliman and Baiche, 2001) The correlational kind of research method is used due to ethical problems with experiments. Moreover, it is also used due to practical problems with experiments. Moreover, inferring causality from correlation not actually impossible, but very difficult. This mode of study is widely applicable, cheap, and usually ethical. Nonetheless, there exist some “third variable” issues and measurement problems. The correlational research refers to studies in which the purpose is to discover relationships between variables through the use of correlational statistics (r). The square of a correlation coefficient yields the explained variance (r-squared). A correlational relationship between two variables is occasionally the result of an outside source, so we have to be careful and remember that correlation does not necessarily tell us about cause and effect. If a strong relationship is found between two variables, using an experimental approach can test causality.


On the other hand, the experimental method is the only method that can be used to establish cause-and-effect relationships. (Creswell, 1994) That is, it is the only one that can be used to explain the bases of behaviour and mental processes. In this method, the subjects are split into two (or more) groups. One group, called the experimental group gets the treatment that the researcher believes will cause something to happen (this treatment is formally called the independent variable). The experimental and control groups are compared on some variable that is presumed to reflect the effects of the treatment, or outcome. This is formally referred to as the dependent variable.


And lastly, the descriptive research method uses observation and surveys. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations.  This descriptive type of research will utilize observations in the study.  To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: Descriptive method of research is to gather information about the present existing condition.  The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.


Past and current literature almost has countless definitions of research. To illustrate, Good (1963) defines research as a careful, critical, disciplined inquiry, varying in technique and method according to the nature and conditions of the problem identified, directed toward the clarification or resolution of the problem. Likewise, Treece and Treece (1977) commented that research in its broadest sense is an attempt to gain solutions to problems. More precisely, it is the collection of data in a rigorously controlled situation for the purpose of prediction or explanation. Moreover, the definition of research says that it is purposive. The main or principal purpose and goal of research is the preservation and improvement of the quality of human life. All kinds of research are directed towards this end. The purpose of it is to serve man and gear towards the good life. (Good and Scates, 1972) Due to research, man has attained great accelerating progress and is enjoying the products of research such as the fast and comfortable land, sea, and air means of transportation, the wonders of electricity like the radio, telephone, air conditioning, light in the homes, movies, running machinery for industry, the computer, the potent drugs that promote health and prolong life, and many other countless things. To satisfy man’s craving for more understanding, to improve his judgment, to add to his power, to reduce the burden of work, to relive suffering, and to increase satisfactions in multitudinous ways – these are the large and fundamental goals of research. (p. 15)


 


Project Planning


While companies apply project management in many different ways, there are generally three basic approaches used: functional, project team, and matrix. These alternatives have been described in detail elsewhere (Youker 1977, Larson and Gobeli 1987), so we will only highlight major differences. The functional approach utilizes existing chains of command to complete specific project. The project is divided into segments and assigned to relevant specialists or functional groups with the specialist or head of the functional group responsible for his or her segment of the project. No formal project manager is designated and top management provides coordination. The second, diametrically opposed type of project structure, utilizes semi-autonomous project teams to complete projects. Most of the resources necessary to complete the project are separated from the regular organization and set up as a dedicated team headed by a project manager. The project manager has direct authority over all or most of the critical resources and personnel assigned to the project. A matrix organization is a hybrid structure, which superimposes a project system on the existing functional structure of the firm. Instead of dividing a project into different segments or creating an independent team, personnel are assigned to both a basic functional area and one or more projects. Each project has a designated project manager whose influence varies according to the type of matrix structure. In a functional matrix the project manager’s role is limited to coordinating and expediting the project. Relevant functional managers are responsible for the design and completion of technical requirements within their disciplines. Under a project matrix the project manager has primary control over the completion of the project; functional managers’ responsibilities are limited to providing personnel and technical advice. A balanced matrix occurs when both functional managers and the project manager share joint responsibility of r the project.


Comparative research on the relative effectiveness of different project approaches has yielded insights into the appropriateness of specific project management structures. First, the traditional functional organization has been found to be ineffective in dealing with the added complexity and coordination demands of a significant development effort (Larson and Gobeli 1989). This approach is generally recommended only for limited projects involving minor changes in existing products or services. Conversely, project teams have consistently been found to be an effective means for completing development projects (Peters and Waterman 1981, Gobeli and Larson 1987). However, creation of dedicated teams is an expensive proposition, which discourages widespread application. Project teams are often recommended only for complex breakthrough projects with urgent deadlines.


Research on the effectiveness of alternative matrix structures is more equivocal. All three matrix structures are widely used, but most managers prefer working in a project matrix (Larson and Gobeli 1987). The popularity of matrixes may be traced to its efficient use of resources and the fact that personnel may be shared across projects or work only part time on a project. Still, the multi-boss network contributes to slow reaction time, power struggles, and dysfunctional conflict. The project matrix should alleviate some of these problems by granting the project manager dominant control over the project.


The techniques of project management can help achieve goals relating to better product quality, improved resource utilization, better customer relations, higher productivity, and fulfillment of due dates. The life cycle of a project typically consists of several steps going from problem identification, definition, planning (specifications and project formulation), organizing, resource allocation, scheduling, tracking and reporting, and control to project termination. The steps are typically performed strategically in accordance with the specified project goal. These steps are discussed briefly below; some are discussed in further detail in subsequent sections. Problem Identification is the stage where a need for a proposed project is identified, defined, and justified. A project may be concerned with the development of new products, implementation of new processes, or improvement of existing facilities. On the other hand, Project Definition is the phase at which the purpose of the project is clarified. A mission statement is the major output of this stage. The definition should specify how project management may be used to avoid missed deadlines, poor scheduling, inadequate resource allocation, lack of coordination, poor quality, and conflicting priorities. Project planning determines how to initiate a project and execute its objectives. Project goals and objectives are accomplished by applying resources to functional requirements. Resources, in the context of project management, are generally made up of people and equipment, which are typically in short supply. The people needed for a particular task may be committed to other ongoing projects. A crucial piece of equipment may be under the control of a competitor. Scheduling is often recognized as the major function in project management. The main purpose of scheduling is to allocate resources so that the overall project objectives are achieved within a reasonable time span. In general, scheduling involves the assignment of time periods to specific tasks within the work schedule. Resource availability, time limitations, urgency level, required performance level, precedence requirements, work priorities, technical constraints, and other factors complicate the scheduling process. Thus, the assignment of a time slot to a task does not necessarily ensure that the task will be performed satisfactorily in accordance with the schedule. Consequently, careful control must be developed and maintained throughout the project scheduling process. A separate section of this chapter is devoted to further discussion of project scheduling. Many of the quantitative models presented in this book relate to achieving better project schedules. In project control, necessary actions are taken to correct unacceptable deviations from expected performance. Control is affected by measurement, evaluation, and corrective action. Measurement is the process of measuring the relationship between planned performance and actual performance with respect to project objectives. The variables to be measured, the measurement scales, and the measuring approaches should be clearly specified during the planning stage. Project Phase Out is the last stage of a project. The phase out is as important as the initiation. The termination of a project should be implemented expeditiously. A project should not be allowed to drag on after the expected completion time. A terminal activity should be defined for a project during the planning phase. An example of a terminal activity may be the submission of a final report, the “power-on” of new equipment, or the signing of a release order. The conclusion of such an activity should be viewed as the completion of the project. To prevent a project from dragging on needlessly, strict directives should be issued about when it will end. However, provisions should be made for follow-up activities that may improve the results of the project. These follow-up or spin-off projects should be managed as totally separate projects but with proper input-output relationships within the sequence of projects. If a project is not terminated when appropriate, the motivation for it will wane and subsequent activities may become counterproductive. This is particularly tree for technology-based projects where the “fear of the unknown” and “resistance to change” are already major obstacles.


 


Conclusion


The goal of project management is to produce a successful product. Without achieving a successful product there is no merit in incurring the project management overhead cost. Contrary to conventional wisdom, there have been many projects that have been “On time and within budget” but the product has not been successful, and similarly many that have not been “On time and within budget” yet the product has been very successful. Moreover, mutually acceptable commitment between a project sponsor and a project team must exist before a viable project exists. A project sponsor is a knowledgeable person representing the eventual owner of the product of the project and who is responsible for providing the necessary resources (money, goods, services, and general direction, as appropriate.) A project team is a knowledgeable and qualified group able and willing to undertake the work of the project. A mutually acceptable commitment is one in which there is agreement on the goals and objectives of the project in terms of the product’s scope, quality grade, time to completion and final cost. Furthermore, the core variables of the project management process, namely: product scope, quality grade, time-to-produce and cost-to-complete must all be mutually consistent. The core variables of scope, quality, time and cost are interrelated somewhat similar to a four-cornered frame with flexible joints. One corner can be anchored and another moved, but not without affecting the other two. Similarly, a single channel of communication must exist between the project sponsor and the project team leader for all decisions affecting the product of the project. This principle is necessary for the effective and efficient administration of the project commitment. The owner of the eventual product, if represented by more than one person, must nevertheless speak with one voice. Similarly, at any given time, the project’s team must have a single point of responsibility, a project manager, for the work of the project. Such person must have the skills, experience, dedication, commitment, authority and tenacity to lead the project to success. Concomitantly, an informed management must provide a supportive cultural environment to enable the project team to produce its best work.


An informed management is one, which understands the project management process. A supportive cultural environment is one in which the project is clearly backed by management, and project team members are enabled to produce their best work without unnecessary bureaucratic hindrance. This principle includes the need for management to ensure that the leadership profile and management style are suited to both the type of project and its phase in the project life-cycle. Furthermore, Effective and efficient policies and procedures must be in place for the conduct of the project commitment. Such policies and procedures must cover, at a minimum, clear roles and responsibilities, delegation of authority, and processes for managing the scope of work, including changes, maintenance of quality, and schedule and cost control. A successful project management process relies on two activities – planning first, and then doing. These two sequential activities form the basis of every project life-cycle, and can be expanded to suit the control requirements of every type of project in every area of project management application. The project life-cycle, characterized by a series of ‘milestones’ determines when the project starts, the ‘control gates’ through which it must pass, and when the project is finished.


 


Reference:


Adams, John R., and M. Dean Martin (1987), Professional Project Management, Dayton, Ohio: Universal Technology, 1-15.


Creswell, J.W. (1994). Research design: Qualitative and quantitative approaches. California: SAGE.


Good, Carter. (1963) Introduction to Educational Research. New York: Meridith Publishing Company, Inc.


Good, C.V. and Scates D. (1972) Methods of Research: Educational, Psychological, Sociological. Manila: Appleton-Century-Crofts, Inc.


Kerzner, Harold, and Hans Thamhain (1984), Project Management for Small and Medium-Size Business, New York: Van Nostrand Reinhold, 1-41.


Larson, Erik, and Dave Gobeli (1987), “Matrix Management: Contradictions and Insights,” California Management Review (Summer), 126-138.


Maile, Carlton A., and Donna M. Bialik (1984), “New Product Management: In Search of Better Ideas,” Journal of Small Business Management (July), 40-48.


Sayles, Leonard R. (1989), Leadership: Managing in Real Organizations, New York: McGraw-Hill, 234-235.


Stuckenbruck, Linn C., ed. (1982), The Implementation of Project Management: The Professional’s Handbook, Reading, Mass.: Addison-Wesley, 1.


Treece, E. and Treece J.W. Jr. (1977) The Elements of Research in Nursing. Second Edition. Saint Louis: C.V. Mosby Company, Inc.


Walliman, N. & Baiche, B. (2001). Your research project: a step-by-step guide for the first-time researcher. London: SAGE. p. 336.


Youker, Robert (1977), “Organization Alternatives for Project Managers,” Management Review (January), 46-53.



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