Unit-7 Organizational Issues in Project Management MB0049 Dr.

Smita Choudhary

Unit -7 Organisational Issues in Project Management

Objectives :
Explain organizational change and its types Describe the need for change in project management scenario Describe how a professional manager can implement change

Explain latest developments in the process of

organizational change relevant to project management.

Unit -7 Organisational Issues in Project Management

Lecture Outline

Introduction Change Organisational Change

Evolutionary Change
Revolutionary Change Need for Organisational Change Traits of Project Manager

Performance Management
Change Management Model Summary Check Your Learning

Unit -7 Organisational Issues in Project Management

Introduction - Organisational Change

Change
What is Change? Change is making or becoming different. Why Change is necessary? Change for the better. Every organization must change to survive in a world of cutthroat competition, constant technological progress, and rapid

communication.
How would one benefit from Change? Change leads to Improved competitiveness, better financial performance,

and higher levels of customer and employee satisfaction.

Unit -7 Organisational Issues in Project Management

Organisational Change
Organisational change can be defined as a set of actions resulting in a shift in direction, attitude or process that affects the way an organization functions.

Evolutionary Change Organisational Change Revolutionary Change

Unit -7 Organisational Issues in Project Management

Evolutionary Change

Evolutionary
incremental

change
and with

is
a

gradual,
narrow

focus on one or a few processes. These changes take place as the

organization evolves.
Evolutionary off (protect changes against) are some implemented in an effort to ward

impending (coming) problems.

Unit -7 Organisational Issues in Project Management

Revolutionary Change
This Change occurs as a result of the following: drastic structural changes

new technology
new thrust(push) for a huge increase in capacity new business acquisition

implementation of a new strategy

Need for Organisational Change :

To cope with new challenges To introduce new products or services

To take up new opportunities

To take on competition

Unit -7 Organisational Issues in Project Management

Traits of Project Manager

Leadership People Relationships Integrity Quality Customer Orientation Innovation and Creativity Performance Management Identification Empowerment Coping with changes

Unit -7 Organisational Issues in Project Management

Performance Management
Relating progress achieved to cost status. The method identifies whether cost variances are due to differences in the value of the work being

performed, i.e. too expensive or under budget. From this, it is possible to

assess whether a project is ahead, on or behind budget and whether the trend is likely to continue. 7 Step Performance Model:

Set Objectives/Performance Standards

Communicate these to the employees Review/monitor Check actual performance Vs. Standards set

Identify gaps
Jointly decide on corrective action, if needed Reset objectives for next period
10

Unit -7 Organisational Issues in Project Management

Organisational Change in the Project Management

Sustaining Momentum

Creating Vision

Developing Political Support

Managing Transition

Motivating Change

Change Management Model Cummings and Worley (Organization Development and Change, 1995) describe a comprehensive, five-phase, general process for managing change as shown above.
11

Unit -7 Organisational Issues in Project Management

Summary
Organizational change can be defined as a set of actions resulting in a shift in direction, attitude or process that affects the way an organization functions. Evolutionary change is gradual, incremental and with a narrow focus on one or

a few processes.
Revolutionary change, occurs as a result of drastic structural changes, new technology, new thrust for a huge increase in capacity, new business acquisition, implementation of a new strategy. Performance Management is a method which identifies whether cost variances are due to differences in the value of the work being performed, i.e. too expensive or under budget. Cummings and Worley have described a comprehensive, five-phase, general process for managing change.

12

Unit -7 Organisational Issues in Project Management

Check Your Learning

1. What is Organisational Change? Ans. Organisational change can be defined as a set of actions resulting in a shift in direction, attitude or process that affects the way an organization

functions.
2. What is Re-Engineering? Ans. It is a process by which managers redesign a bundle of tasks into roles

and functions so that organisational effectiveness is achieved.

3. What is Evolutionary Change? Ans. Evolutionary change is gradual, incremental and with a narrow focus on

one or a few processes.

13