Course: PROJECT MANAGEMENT

Unit 7

People Management in Projects

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Unit 7: People Management in Projects

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Contents
7.1 7.2 7.3 7.4 7.5 7.6 Learning Objectives .......................................................................................................................... 3 Leadership Introduction ................................................................................................................ 3 Teamwork ....................................................................................................................................... 14 Conflict Management ..................................................................................................................... 17 Summary ......................................................................................................................................... 22 References ...................................................................................................................................... 23

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7.1

Learning Objectives

By the end of this unit, you should be able to: Revisit the concept of leadership Know the various leadership styles in managing a project Explain the importance of team work Specify how team motivation and synergy are important in a project Know how to motivate teams for attaining success in projects Understand the origin of conflicts and their resolution

7.2

Leadership Introduction

Example of good leader for a project Here is an example of a good leader for a project. Mr. Sreedharan was appointed as Project manager and Managing Director of DMRCL (Delhi Metro Rail Corporation Limited) in 1997. He had a reputation for completing major projects on time and within the budget. The following is an extract from Delhi Metro Project: Indian Project Managers Show the Way by India Brand Equity Foundation. The real marvel of the Delhi Metro project is the way in which a foreign dependent project has been localized and re-engineered. This was done by roping in Indian companies as consortium members at each stage of the project.

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When E. Sreedharan took over as the managing director of Delhi Metro Rail Corporation in November 1997, two doubts were raised about the subway rail venture: was it worth the effort? Equally important, would it finish on time? After all, putting together a subway railway system in a crowded metropolitan city isnt easy. A large number of utilities like water pipes, sewerage lines, telephone and electric cables need to be relocated to facilitate the construction work; people have to be relocated In fact, Indias first metro project in the eastern city of Kolkata took more than 25 years to complete.
Quotes on Leadership

Leadership and learning are indispensable to each other John. F.Kennedy in a speech in Dallas, USA, in 1963. Leadership is not about bullying people, it is about getting people to respect you with your leadership skills and qualities Dwight D. Eisenhower In the words of Jack Welch, previous CEO of General Electric, Dont manage! Lead! 7.2.1 Leaders and associated characteristics A leader is one who sets the direction and exerts influence on the people to follow that direction. The key characteristics of leaders are discussed below: Characteristic Maintaining cohesiveness within the team Focusing on the big picture Description A leader ensures that the team is cohesive (i.e. stays as one unit) even in a crisis and when the members of the team become less optimistic. A leader needs to focus on the big picture and the value that would be provided by the project. The focus has to be on the
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vision and meeting the objectives of the project rather than getting into micro-level details. Remaining calm A leader has to be calm so that thinking is rational and right decisions are made thus ensuring that the end objectives are successfully achieved. Being the first to sacrifice When there is a problem, a leader is always there to share the pain and even take more of it. For example, when a project is behind schedule and needs working on the week-end, the leader should also be available and not just leave it to the team to work Motivating the team There could be challenges in a project and team members could lose hope. A leader needs to provide motivation to the team and explain how the end result could still be achieved. While remaining positive, a leader also needs to ensure that team members have a positive frame of mind. Creating small wins A leader needs to look at achieving wins, even if they are small. The leader needs to look at interim victories, since it helps to develop self-esteem and a positive frame of mind within the team Having a sense of humor It is important for a leader to identify opportunities for fun and also maintain a sense of good humor

7.2.2 Need for Leadership in projects

A leader visualizes something that is required to be done, knows that it could be made to happen, and gets started. The following figure depicts the types of problems being faced in a project management scenario.

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Figure 7.1 Problems frequently occurring in Project Management

(Source: James Taylor, A Survival Guide for Project Managers, AMACOM Div American Management Association, 2006)

Hence, it is important to have the right leadership to ensure a successful outcome for a project. The growing significance of project leadership is depicted in the figure below:

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Figure 7.2 Growing significance of Project leadership skills

(Source: Larry Richman, Improving Your Project Management Skills, AMACOM Div American Management Association, 2006)

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7.2.3 Important project leadership skills Some of the most important leadership skills for managing a project are discussed below:
(Source: Bennis, W., "Learning to Lead," 1997, Addison-Wesley,MA.)

Skill Vision

Description Ability to see the big picture (i.e., visualizing the overall objectives and a macro-level view of the project) Possessing the ability to drive others forward Set an example for others to follow and lead from the front Ability to delegate tasks to the right people Maintaining a positive frame of mind even during crisis and problems and ensuring that the team members do not give up hope Having the ability to clearly communicate on the goals, performance, expectations, etc. with people at all levels Commitment to ethical practices and demonstrating it Having a can-do attitude and expressing commitment to the goals with optimism Having concern for the team and acknowledging their feelings Competent in leading others and capable of inspiring, enabling and encouraging others Maintaining a calm and composed approach under pressure and taking problems / stressful events as opportunities to influence their outcome Ability to hold the team together in a common purpose towards the right objective. Having excellent skills in solving problems

Energetic Being a role model Delegation Positive attitude

A good communicator

Integrity Enthusiastic

Empathy Competence

Calm under pressure

Team building skills

Problem solving skills

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7.2.4 Leadership Styles

The style of leadership (i.e., the way in which leaders function) could be different. It is important to know the various leadership styles so that it helps in becoming a more effective leader.

The various leadership styles include the following: Autocratic leadership Democratic leadership (Participative leadership) Charismatic leadership Bureaucratic leadership Task-oriented leadership People-oriented leadership Laissez-faire leadership Servant leadership Transactional leadership Transformational leadership

We will now see the differences regarding the various leadership styles from project management perspective. The following table depicts the leadership style, its relevance from a project perspective, and limitations:

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Leadership Style

Relevance from a project perspective

Limitations

Autocratic leadership Leaders have total power over their teams or staff. Decisions are usually made without consulting the team

When quick decisions are

required in the project (if decisions are not quickly taken, the project could collapse)

Autocratic leadership results in employee demotivation and resentment, high levels of absenteeism, and attrition

When no inputs are

needed from the team

When no inputs are

needed from the team

When agreement from the

team is not required for a successful outcome

Democratic leadership (Participative leadership) In democratic style of leadership, team members also contribute to decision-making. The leader takes the inputs from the team before A democratic style of leadership is more relevant when it is important to have the agreement of the team, and also when quality is of This style of leadership could result in a longer time for decisionmaking especially when a large number of people are involved in decisionmaking and when there are widely different ideas/suggestions

taking a final decision. This provides higher priority than motivation and job satisfaction to productivity or the speed of team members and also facilitates task completion skill development.

Charismatic leadership These types of leaders provide This is more appropriate when Since these leaders have
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inspiration and lots of enthusiasm in their teams, and have the energy in driving things forward. These leaders also have a lot of responsibility and need to demonstrate commitment in the long-term.

the followers believe that success is directly linked to the presence and charisma of the leader

a greater belief in themselves than in their teams, it is risky. When the leader leaves, it could cause the project to collapse

Bureaucratic leadership Leaders practicing this style of leadership stick to the rules and ensure that the staff also follow the procedures. It is more appropriate when the project involves high safety risks (e.g. operating with machines, poisonous substances) or when a large quantum of money is involved. Bureaucratic leadership style could cause problems due to lack of flexibility. There could also be delays due to rigidly following rules without considering the current scenario.

Task-oriented leadership Leaders who are task-oriented focus to a large extent on ensuring that the work is done. They could exhibit elements of autocratic style of leadership. It is more appropriate when tasks in the project somehow need to be completed and also when the focus is on putting structures in place and needing very close planning, organizing and monitoring. The leaders practicing this style of leadership do not focus on the welfare of the team, and focus only on tasks. This could result in issues similar to that faced in an autocratic style of leadership such as difficulty in retaining and motivating
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employees.

People-oriented leadership This style of leadership is This style of leadership is directly directly opposite to that of opposite to that of task-oriented task-oriented leadership. It is leadership. It is also a participative also a participative style of style of leadership. The leaders focus leadership. The leaders focus on team development and in on team development and in providing support. It encourages providing support. It teamwork and enhances motivation encourages teamwork and of members in the team. Leaders enhances motivation of generally use a task-oriented and members in the team. Leaders people-oriented style of leadership. generally use a task-oriented and people-oriented style of leadership. This style of leadership could result in a longer time for decisionmaking, especially when a large number of people are involved in decision-making and when there are widely different ideas / suggestions

Laissez-faire leadership In this style of leadership, the leader does not interfere and team members work on their own. If there is monitoring from the leader regarding what is being achieved and provides This style of leadership is more effective when the team members are very experienced, capable, and self-motivated, and also when feedback to the team regularly, this close monitoring / supervision style could be effective. It might is not required. also occur when the managers do not apply adequate control. This approach could fail in situations where the team is inexperienced and not capable and also when the managers get distracted often.

Servant leadership A servant leader is one who is usually not formally recognized as

This style of leadership is This approach could fail applicable when there is no in a highly competitive specified leader and one scenario since servant
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one. It is a case of a person at any level in the organization leading to meet the needs of the team. It is also a type of participative leadership since the entire team generally gets involved in the decision making process.

person achieves power based on values and ideals. For example, a project to be undertaken from a social responsibility perspective could have one person functioning as a leader considering his/her values and ideals.

leaders could be left behind by leaders who utilize other styles of leadership.

Transactional leadership In this style of leadership, the team members agree to obey the leader completely. The leader has the right to award punishment to the team members if the work does not meet the pre-defined standard. This style of leadership is applicable when the focus is o routine tasks in the shortterm and it is critical to complete these tasks within the limited timeframe. In a transactional leadership approach, team members may not have much job satisfaction. Further, it is not suitable to be applied in the case of knowledge-based work or tasks involving creativity.

Transformational leadership True leaders exhibit this leadership This style of leadership is style. They provide inspiration to applicable when it is required teams consistently with a shared to take up new initiatives that vision of the future. The enthusiasm add value, and also in projects that require a lot of creativity of the leader gets usually passed and innovation. onto the team members. Transformational leaders are real motivators and are trusted. It may not be very much relevant when routine and unskilled tasks are to be performed.

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Which is the right leadership approach in a project scenario?

The transformational leadership approach is usually effective, but `there is no specific leadership formula that would be suitable for all scenarios. Sometimes, a combination of leadership styles is used. A project manager needs to consider the following key aspects while selecting an appropriate leadership approach:

Organizational environment (stable or dynamically changing, conservative, etc.). Skill levels and experience of the team Nature of work (creative work, routine work, etc.) His/her preferred or natural style

7.3

Teamwork

Teamwork involves performing an activity or a group of inter-related activities by more than one person towards achievement of common objectives. The concept of teamwork is not new and has been in existence since the days of ancient civilization. However, it has gained significance as a management concept in recent times. Importance of Teamwork Teamwork is very important in a project scenario. Let us look at the example of the Tata Nano project.
[Source: Regional Report India February 2008, Published in PM World Today Feb 2008 (Vol X, Issue II) ]

Girish Wagh, the leader of the Tata Motors engineers who built the Nano, repeatedly used two words to describe how they helped turn Ratan Tatas dream into reality, Team work... team work ... team work,.
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The team work could be considered as a combination of innovation in design and development, component engineering, and the skilful management of vendors who are supplying components for the Nano. 7.3.1 Concept of synergy in a team environment The concept of synergy could be better understood through effective teamwork. According to the concept of synergy, the performance of the combined parts is much higher than the sum of the individual parts. In other words, the output from an effective team would be much higher than the sum of outputs of the individual members within the team. Let us understand the significance of synergy through the following illustration: Mathematical principles Concept of synergy 1 +1 = 2 1+1>2

In other words, the output of two individuals is much more when they operate as members within an effective team, rather than working in an isolated mode. 7.3.2 Building effective teams It is required to build effective teams since it is one of the key influencing factors in the successful outcome of a project. If a group of individuals need to function as a single cohesive unit, this transformation needs building of effective teams. It is important to consider the following while building effective teams: o Deploy the right leadership style during each stage of team building o Understand the styles of the various members of the team
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o Know how to leverage the style of each team member at the appropriate time for resolving problems Reference from PMBoK According to PMBok (Project Management Body of Knowledge), the Human Resource Management knowledge area has four processes.

The following diagram depicts the overall Project Human Resources Management knowledge area:

Figure 7.3: Project Human Resource Management (PMBoK)

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We would focus on two of them which are related to the topic under discussion, namely: Develop Project team Manage Project team Develop Project Team This is the process of improving the competencies, team interaction, and the overall team environment to enhance project performance Team building activities are encouraged during this process. Some aspects that facilitate team building include having an orientation meeting, facilitating communication between members, and engaging members in games designed to build a bonding between team members. When there is a conflict, it must be resolved. It is required to handle potential problems between resources early before they go out of control.
Manage Project Team The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance

According to this process, the project manager has to ensure that teamwork exists between all team members. The project manager also needs to ensure the productivity and efficiency of the team while performing tasks.

7.4

Conflict Management

It is necessary for project managers to deal with conflict. Some conflicts are easy to manage while others could be quite challenging to handle. Let us look at a real-life example for a totally challenging conflict.

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The Tata Nano project was initially declared at Singur. Subsequently a conflict arose related to land acquisition. Some farmers refused to provide land on account of their livelihood. The conflict increased with a demand for return of 400 acres of land from the acquired land for the farmers who were not willing to provide their land for the project. Dialogues and discussions did not help and the only resolution strategy was withdrawal, wherein the Tata Nano plant had to be shifted to Sanand in Gujarat, where the remaining portion of the work was completed. Why does conflict arise? Conflict could arise when a group of individuals come together as a team. It occurs in relationships of any kind. This is because there could be differences in terms of authority, values, and attitudes that give rise to conflict. The conflict could arise from internal sources or could be due to external factors. Conflict management A business scenario Let us consider a business scenario wherein a new product has to be rolled out within the next two months. A few team members in the project have been late with deliverables. Further team meetings degraded to sessions of argument and shouting. The features and functions required in the project have also got missed. Further, team members were not attending meetings or providing a report on the status. It was also known that some of them were working against the interests of the team. Positive Conflict Vs Negative Conflict Conflict could lead to a positive or negative outcome. Let us look at the differences between them. Positive conflict Negative conflict

Has a tendency to strengthen the team after Could destroy a team

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resolution of the conflict Forces people to identify causes and look Focus may shift away from the issue on for solutions; Leads to new ideas and hand approaches to organizational processes Facilitates bringing out important issues Important issues may get sidelined due to insignificant issues taking a priority Provides enhance opportunities for people to People begin to feel defeated; Increase in their communication and distrust and suspicion leading to a war-like environment

interpersonal skills

A positive conflict could lead to learning, A negative conflict creates an environment creativity, and growth of fear

7.4.1 Sources of conflict in a project The following are some of the sources of conflict in a project scenario: 1. Communication-related conflict 2. Project structure-related conflict 3. Conflict due to personal factors Communication-related conflict Conflict could arise due to communication-related aspects that include: Poor listening skills Inadequate sharing of information Interpretational differences Differences in perception Ignoring nonverbal communication (e.g. body language, signs, etc.)

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Project structure-related conflict Conflict could also arise due to Project-structure related aspects such as: Size of the project Extent of participation within the team Systems for reward and recognition Extent of interdependence within the team Conflict due to personal factors Conflict could arise due to personal factors such as: Individual goals of team members Self-esteem of members within the team Values and needs of individuals within the team 7.4.2 Need for managing conflict Conflicts cannot be avoided as it could occur whenever a group of people are involved. This is true in a project scenario as well. Hence, it is important to manage conflicts. If conflict is managed adequately, it could provide benefits to the team. The negative consequences of a conflict could be avoided by dealing with disputes in a quick and open manner. If conflict is to be dealt with successfully, managers and team members must understand its unpredictability and its impact on individuals and the team as a whole. If conflicts are inappropriately handled, it could lead to dissatisfaction and demotivation within the team. 7.4.3 Conflict management approaches The following are some of the approaches for managing conflicts: Providing training on communication and interpersonal skills
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Emphasis on appreciation of the value of differences Increased volume of effective team communication, upward and downward Team meetings and status review meetings in greater frequency to minimize any inconsistency in the way the project goals and priorities have been perceived Focus on human relations and teambuilding skills Mutual respect for each other Willingness to resolve disagreements

7.4.4. Techniques for managing conflicts within teams The four aspects to be considered while managing conflicts within teams are:
[Source: Donald Weiss, president of Self-Management Communication, Inc.,, 1997]

1. Listen 2. Acknowledge 3. Respond 4. Resolve the remaining differences We will now briefly discuss each of the above principles for managing conflicts: 1. Listen This does not mean just hearing to what others say but means listening effectively. It is important to focus on the words spoken and also on the nonverbal gestures. 2. Acknowledge This does not mean agreeing with what is said by others but recognizing their point of view. Examples of these include statements such as We may need to explore your point of view further, If I have understood you right, you are indicating that we need to do it this way.
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3. Respond It is not sufficient to just listen and acknowledge. We also need to provide our response. It is required to provide constructive criticism, or if we are disagreeing with what has been said, we should readily provide an alternative. 4. Resolution of remaining differences The overall problem has to be looked at from an understanding of the causes of disagreement. It would also be required to decompose the problem into multiple manageable chunks. This enables generating alternative solutions to the defined problem.

7.5

Summary
A leader is one who sets the direction and exerts influence on the people to follow that direction. Some of the key characteristics of leadership include aspects such as focusing on the big picture. There are various leadership styles which include Autocratic leadership, Democratic leadership, Charismatic leadership, Bureaucratic leadership, Task-oriented leadership, People-oriented leadership, laissez-faire oriented leadership, Servant leadership, Transactional leadership and Transformational leadership. There is no specific leadership formula that would be suitable for all scenarios. Sometimes, a combination of leadership styles is used. Teamwork involves performing an activity or a group of inter-related activities by more than one person towards achievement of common objectives. The concept of synergy could be better understood through effective teamwork.

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Conflict could arise when a group of individuals come together as a team. It occurs in relationships of any kind. Hence, conflict management is also applicable while managing projects. The source of conflicts could be either internal or external. Conflicts are classified as positive and negative. It could be categorized as Communication-related, Project structure-related, and conflict related to personal factors. Conflicts within a team could be managed by applying the 4 principles, namely, Listen, Acknowledge, Respond, and Resolution of the remaining differences.

7.6

References

Recommended books Sl. No. 1 Text books / Reference books Project Management for Business, Engineering & Technology by Nicholas, Steyn Project Management - A Managerial Approach by Meredith, Mantel Jr. Year Publisher Edition

2008

Elsevieer (Butterworth)

3rd edition

2007

Wiley India

5th edition

Projects - Planning, Analysis, Section, Financing, Implementation & Review by Prasanna Chandra 2006

CFM-TMH

6th edition

Articles / Information for additional reading 1. Six ways to give proper project leadership -

http://www.projectsmart.co.uk/six-ways-to-give-proper-project-leadership.html 2. From Manager to Leader http://management.about.com/od/leadership/a/FromMgr2Ldr05.htm

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3. How to motivate your project team http://www.helium.com/items/1057583-how-to-motivate-your-project-team 4. Teamwork - http://www.effectivemeetings.com/teams/teamwork/teamwork.asp 5. Managing conflicts in projects http://www.expresscomputeronline.com/20071126/technologylife02.shtml 6. Conflict resolution http://www.mindtools.com/pages/article/newLDR_81.htm Web References 1. http://www.projectsmart.co.uk/articles.html 2. http://project-management.bestmanagementarticles.com/ 3. http://www.gantthead.com/ 4. http://www.pmi.org/ 5. http://www.maxwideman.com/ 6. http://www.allpm.com/ Videos 1. Jack Welch on leadership and management - http://work911.com/leadershipdevelopment/video/welch.htm 2. Leadership characteristics - http://work911.com/leadershipdevelopment/video/leaderscharacteristics.htm 3. Difference between project leadership and project management http://www.youtube.com 4. Conflict management www.youtube.com 5. Teamwork - www.youtube.com 6. Simple truths The power of teamwork Movie - www.powerofteamworkmovie.com
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