Future Development in Project Management - Essay Example

FUTURE DEVELOPMENT IN PROJECT MANAGEMENT By Future Development in Project Management Organizations have different portfolios with each project having a management team that ensures its success. In modeling the correct team to work on a project, the management should ensure that a flexible yet detailed strategy is developed to ensure the attainment of the objectives. Flexibility is critical due to the dynamic nature of the operating environment (Peters & Savoie 1995). With the current project strategy based on quality and cost-effectiveness, each member of the highly performing team is awarded a task based on their qualifications. Task assignment is important in ensuring specialization and efficiency in undertaking every work brought to the group. Within the Project team, teams are formed based on the interdependence of tasks to be performed. The composition of groups is to ensure that time is not lost in processing of information and consequently the decision-making process (Chapin & Huber-Sannwald 2001). The current project team performance has been enhanced by creating a scenario where each member of the group has sufficient understanding of the tasks expected concerning performance. Such is the clarity in task assignment that the team members can self-monitor their performance and daily progress. Another feature of the group is the communication channels that exist and must strictly be adhered to. These channels are developed to ensure the shortest time lapse between the sender, the receiver, the feedback and the implementation of available information. The channels ensure that the departmental heads get a periodic briefing on the progress of their groups and can be prompt in their responses and effectively manage situations before they get out of hand. Under communications and information processing, the project management team has a program design that demands regular meetings with the primary objective being performance evaluation and charting the way forward. With short term goals being the norm, these impromptu meetings serve to ensure that the activities are on track as per procedure requirements. For those activities not at par with their projections, necessary steps are taken to ensure that any disruption erupts in relation to the progress of the organization (Project Management Institute 2013) The limits of authority are currently clear such that team member is aware of the boundaries of their authority. Such limits are set to ensure that there are no overlapping duties that may raise conflicts of interests among the team members. Additionally, to ensure accountability, each level of the chain of command has well defined powers and duties such that rewards and punishments are awarded fairly and equitably. The limits of authority also reduce chances of insubordination that may breed conflicts and deter individuals from achieving the set goals. The current project team has unique training system. This system is conducted and supervised by senior managers from different departments of the organizations. The training is to ensure that the team members are adequately prepared to face the underlying with technical awareness. Training also motivates workers to learn more and bring this expertise into their daily operations. Since the trainings are instructions tailored according to project requirements, the team involved becomes knowledgeable and understands the need for fulfillment of the tasks as required. Training is therefore, a blueprint through which such project supervisors’ hedge against any potential risks or losses as a result of incompetence arising from lack of required training. The team currently has a design model of operation that ensures it achieves the required returns and smooth operations are the norm. Certain conditions though, are certain to change in the near future as the environment is never static. For its survival, the project managers must be aware of such changes and provide solutions to any alterations to the normal operations. Discussed blow are five future developments that will affect the project management team performance. The position of a project manager will cease to exist Most organizations are adopting a management model whereby each employ is given a chance to leadership. This opportunity involves a rotational system under which the team members operate in the position of a project manager for a specific period. The team member then hands over to another member who then serves for a similar period, and the cycle continues. The rotational system is developed to ensure that there are equal opportunities for all the employees. An additional advantage of engaging all employees in management is based on the fact that new ideas are inculcated to the firm. Each team member has a unique mode of operation that brings a new idea to the project management. This mode of operation facilitates innovation and cohesion within the group involved in a particular project. Moreover, the morale is high, and this is translated to the productivity. This development therefore, focuses on the position and not the individual that occupies the position, that is, positional power. Powers are bestowed upon the seat rather than the individual since there is rotation and as such no specific member of the team hold the position on a long term basis (Berkun & Berkun 2008). Therefore, during recruitment every employment candidate will be required to have certain specific skills that will guide him/her in decision-making when it is their turn to the rotation policy. Such a system also decreases the cases of misuse of offices by their holders. This reduction is as a result of accountability involved in handing over to the next member of the team. The solution to this development is to have a strategy in place that guides in recruitment and training of new employees. The policy should also provide for cases when the implementation of the new system commences. In addition to this, it also at the same time defines the constitution of the system in terms of duties and responsibilities of every holder of the position (Morgan 2012). Technological Changes The technology reduces the cost of production while it is credited with the improved quality of products, efficiency in production and development of customer tailored products. For this season, incorporation of technology is essential for every project management team in ensuring it competes fairly with fellow operators who have an edge in the market (Thomsett 2002). Due to its importance in project implementation, technology becomes obsolete over time, and there is therefore to upgrade and develop better means of operation. Therefore, a project management team should create a provision in the project’s budget to make funds available in case there is the need to improve on the existing technology (Austin 2000). Additionally, before adopting any technology, the project management should conduct a Cost-Benefit Analysis based on the life of a technology. If technology becomes redundant after a short period, the there is no need for massive financial investment as the returns will not match the initial cost of investment (Choudhury 1988). However, with the development of better and cost-effective technologies, the level of creativity and innovation is at its peak. Therefore, projects need to encourage incubation centers where ideas are turned into reality through extensive research and development while using the best technology available (Bazzaz 1998). Outsourcing and sub-contracting Outsourcing involves a company or organization seeking service providers from the external market and having them carry out operations on behalf of the employing firm. Outsourcing is mostly to reduce cost implications while increasing the value of returns. With increased payment packages required in cases of permanent employments, most companies are turning to outside entities in order to enhance service provision at more cost-effective rates. Usually with permanent employment, an organization has several additional costs to meet in terms of wages and salaries to the employees (Mankin 2004). The payment packages usually include overtime payments, medical insurance covers, and compliance with certain regulations such as Equal Employment Opportunities (EEO) Act. These additional costs usual balloon the wage structure of organizations. Wages being part of operating expenses have a direct relationship with net profits and gross profits of companies. However, with outsourcing, some of the costs are reduced significantly. The reduction is because the company is no longer in charge of overtime bonuses. Moreover, a company does not incur costs relating to remuneration of permanent employees. The wage bill therefore, suffers a significant cut that substantially increases profits (Braithwaite 1988). The main advantage of outsourcing and sub-contracting is that the project certainly enjoys the services of professionals with specialization in their relevant fields of operation. As such, production is of quality and it done efficiently. When it comes to outsourcing, a project can compare various service providers and then go with the best alternative that present the project with the greatest returns and the best service (Levins 1969). With sub-contractors, the project will have the benefit from the fact that there shall be risk transfers. The project’s risks are transferred to the contractor. Any contractual agreements, entered into by the contractor on behalf of the project, will not have any implication on the project management because all the losses that accrue are not transferred to the project; rather they are catered for by the sub-contractor. These advantages associated with sub-contractors and outsourcing make it the most viable option for most businesses and project management teams. It saves on both cost and increases the quality of final products (Heldman 2011). Collaborating with other companies Collaboration involves the merger of two organization working together towards the achievement of a common goal. It is a common trend that different business ventures join forces in order to increase their market share, reduce the cost of production and, as such increase productivity in the long run (Burkholder 2006) The global competitiveness has made joint ventures the most attractive strategy in improving a project’s market portfolio. Project management teams are working in collaborations with financial to provide funds for the accomplishment of the company’s goals. These partnerships increase the financial muscle of a company. Within the financial portfolio, there is a risk hedging technique known as ‘swap options’. These are financial instruments used to provide businesses with an opportunity to avoid exchange rates risk in the operating market. Swap options require collaborations between two companies to offset debts. Such an arrangement usually provides management with confidence in business transactions (Harvard Business Review Press 2013). In order to save on costs, companies can merge to form a consortium of companies to bid for tenders that require massive capital input. A single company usually lacks such financial capability and therefore by joining up, they have a greater bargaining power (Bragg 2006). Environmental factors Business environment refers to the factors that affect the business operations. Such factors are either internal or external. This analysis is based on whether the factors can be controlled, or they need to be managed by the management. Since the factors involved in an environment are numerous, there is need to develop a plan that survives all the likely changes. The societal needs are essential components of any project. The focus is has been on Social Corporate Responsibility (CSR). CSR involves a business has to give back to the society within which it operates. Business organizations are required to develop strategies that ensure the society benefits (Binder 2007). Another factor under environment is the changing organizational culture. With the changing dynamics, organizations have to implement a culture that has a positive attitude towards work. A positive culture encourages determination and respect for every individual. This appeal to many employees and acts as a motivating factor (Sandy 1988). The legal landscape is changing. Different corporate laws are being passed to ensure fair competition and promote trade within the economy. Therefore, the project management should be prepared to adjust its operations to comply with the set laws and regulations. With the globalization of the trade market, laws are bound to change to accommodate various ventures based and operating globally. The business world is nowadays referred to as a ‘global village’. This term arises out of the ease with which international trade occurs today. All the above-mentioned points are a manifestation of the constantly changing situations. In the analysis of a project management team performance, current performance is considered and, any shortfalls noted. The next step involves the determination of problems that are likely to occur in the future. The top-level management is, therefore, faced with the task of formulating and implementing policies that ensure profitable and sustainable operations (Kerzner 2013). Bibliography Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form Austin, J. E. (2000). The Collaboration Challenge How Nonprofits and Businesses Succeed through Strategic Alliances. Hoboken, John Wiley & Sons. http://public.eblib.com/choice/publicfullrecord.aspx?p=588954. 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(2012). The collaborative organization a strategic guide to solving your internal business challenges using emerging social and collaborative tools. New York, McGraw- Hill. http://proquest.safaribooksonline.com/?fpi=9780071782302. Peters, B. G., & Savoie, D. J. (1995). Governance in a changing environment.Montréal, McGill-Queens University Press. Project Management Institute. (2013). Guide to the project management body of knowledge: pmbok guide. [S.l.], Project Management Inst. Thomsett, R. (2002). Radical project management. Upper Saddle River, N.J., Prentice Hall PTR. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More