Methods of Risk Assessment and Leadership and Team Work in Projects - Literature review Example

 METHODS OF RISK ASSESSMENT AND LEADERSHIP AND TEAM WORK IN PROJECTS Part 1 Methods of Risk Assessment in Projects Introduction Projects are exposed to undesirable external influences or risks that affect the cost, completion time and the quality of the final product. Without risk assessment, a project may collapse or fail to be competed to the fullest gratification due to the effect of unplanned challenges. Hence, risk management is essential since it provides a developer with an opportunity of determining risks that challenges the project; hence, planning for them accordingly. However, risk management should apply a systematic and formal procedure of cost estimation to develop a realistic plan. Therefore, this literature review discusses approaches pertaining to risks assessments in projects. Numerous scholars have examined various methods of assessing risks in projects. As such, the topic of methods of risk assessment is well presented. The authors selected by this study present imperative publication that can help one explain the subject of risk assessment comprehensively. Concept of Risk and Risk Assessment Risk virtually refers to the possibility of loss, disadvantage, destruction or injury that may accompany a project. Risk assessment entails identifying a qualitative and quantitative cost of risks associated with the situation. The quantitative aspect examines the magnitude of the probable loss and the chances that the risk will occur. Risk assessment should be an evolving and learning practice, capable of adjusting to novel and dynamic demands of the project. According to McManus (2004), an ideal risk management plan should employ tactical procedures, methodologies and tools effective for predicting all probable risks accurately. Ideally, studies argue that the risk management refers to a concept of identifying risk, examining the risk and outline policies or approaches for lightening the risk. Ammar, Kayis and Amornsawadwatana (2012) state that risk assessments approach should involve analyzing the experiences of successful projects and engaging reliable professionals and analysts in the field. Risk Assessment Methods Methods of analyzing risks vary with the industries and the purpose of the assessment. An analysis may have a financial purpose, environmental or healthy impacts purpose. Studies have identified numerous methods of assessing risks. Risk assessment methods can be grouped into three broad categories: the qualitative, semi-quantitative, and quantitative (McManus 2004, p. 23). According to Wysocki (2012), qualitative assessments enable one to identify assents of priority and classify one that demands simple and rapid evaluation. The method is applicable often in situations where numerical data are unavailable and the time for analysis is limited. Initially, the model obtains information on risk attributes to classify them as tolerable or intolerable. Occasionally, the model may categorize the risks according to their magnitude by assigning them a “low, medium or high key” (Anderson 2010 p. 24). Factors identified as having high risks take the mitigation approaches while the remainder undergoes further analysis. Qualitative tests are applied according to project’s activities and their associated risks (Wysocki 2012). Qualitative assessment does not examine the probability of data, but predicts the potential losses. Qualitative methods include brainstorming or the “what if approach”, SWOT analysis, Maps, Checklists and questionnaires and peer interviews among other. Threats, vulnerability and controls are three main components that guide a qualitative assessment. Initially, threat analysis seeks to examine what may go wrong or confront the project. Lastly, the control test explores the vulnerability of risk control strategies (Wysocki 2012). Semi-quantitative is an intermediary level that falls between textual and numerical examination of the situation. The model uses a score system that has different scales to characterize the likelihood of undesirable events and their consequences (Anderson, 2010). A semi-qualitative model provides a more consistence and precise approach of examining and relating risks. Indeed, studies argue that a semi qualitative model outweighs a qualitative model in assessing risks since it eliminates some serious ambiguities associated with a qualitative plan. Consequently, a semi-qualitative is effective in examining risks and strategies where accurate data is missing (Ammar, Kayis & Amornsawadwatana 2012). Various specialists have in the past dates tried to develop a quantitative model of assessing risk. The idea has been successful, and presently there exists numerous quantitative approaches for analyzing risks. The common quantitative methods involve the variance method, the Delphi method, the Value at risk method, the Belief Function method, and the Bayesian method among others (McManus 2004). Applying a quantitative model in predicting risks may be challenging; however, the prediction attained from the procedure has high degrees of accuracy. Categorization of Risks Initially, project schedule risks may occur when project’s activities and time fail to match accordingly. These risks delay the accomplishment of the project and sometimes a project ends up collapsing. Schedule risks may occur in situations were there is wrong estimation of time, poor planning of resources, poor identification of main project functionalities and their appropriate time (Anderson 2010). Another category includes the budget risks that occur due to poor budget approximation, cost overruns and due to extension of the project. Additionally, there is the operational risks; the hazards caused by improper implementation of procedures or due to system. Another category includes the technical risks, the category that may lead to operational risks while the last category entails the programmatic risks, which refers to external risks that surpass the operational limits. They principally includes all uncertain risks that cannot be managed by the program such as funds shortage, change of customers’ priority or changes in government policies. Conclusion Conclusively, conducting risk assessment is essential, since it helps one plan for the uncertainty hence improving the performance of the project. An effective assessment can fuel a project to a great success; however, establishing an accurate assessment may be challenging. This states that individuals tasked with an activity of developing a risk assessment test should employ critical and informed minds to develop a comprehensive plan. Importantly, various approaches of conducting effective risk assessments have been developed; however, their applicability varies. Consequently, evaluators should be keen when selecting the method to employ in their examination to ensure that they choose the best method suited for their project. Part 2 Leadership and Team Work in Projects Introduction Leadership is the act of influencing a group to attain the intended results. A leader must win confidence, respect and willingness to cooperate with the followers. Therefore, he/she ought to have leadership skills that are essential to promoting productive teams. The plan of this inquiry is to correlate leadership and team interaction with their impact on a projects’ performance. This is to determine if leadership has an effect on performance when it is mediated with teamwork. For this reason, an assessment on leadership style, role of different people and communication have been analyzed. Leadership qualities improve with experience and skills. Additionally, Leaders coordinate the efforts of the team members in pursuit of a common goal (Woodward 2005, p. 45). Leadership and Team work in projects Human factors are essential to the success of projects. Their capabilities are the primary aspects that facilitate the success of projects. For this reason, teamwork is essential to capitalize on individual strengths. This study assesses the Elements of leadership qualities, leadership styles and the roles of different people in organizations. Moreover, the characteristics of a team leader are analyses based on behavior and results. A leader’s vision, integrity, communication skills and problem-solving strategies determine the success of organizations. Therefore, project drivers ought to be endowed with leadership traits that steer the followers to align themselves with the organizations dream thus facilitating teamwork and project performance (McManus 2004). Leadership style influences the performance of an organization. The styles centre on communication and management styles, which are imperative to conflict resolution in a workplace. Moreover, style ensures that there is order in the management and execution of duties. Accordingly, leadership style is correlated to a projects performance. For this reason, organization ought to employ the most radical and adaptive style. The stakeholders perform different roles in an organization. The organization structure reflects the communication and decision-making routes in an organization. Consequently, it displays the roles of different people in an organization. Interaction with employees ensures that the manager is able to identify gaps that need further consideration (Wysocki 2012 p. 34). This is essential to conflicts resolution within a project. Managers are obliged to lead their juniors thus they must acquire critical leadership skills to facilitate accomplishment of goals. Common virtues such as respect, persistence and integrity are vital traits that leaders must possess. Moreover, Team leaders should formulate a plan prior to project implementation. The projects plan displays commitment to the projects goal (Woodward 2005). The communication styles, leadership styles and members capability are essential to addressing the projects demands. Therefore, the entire team ought to uphold respectful grounds free from work place prejudices. Moreover, communication should be free of sarcasm or intimidation. Communication makes possible the exchange of facts in an organization. It influences the mood, energy and rapport between workers. Leadership styles aimed at giving a sense of direction in an organization. They provide a guideline to implement plans and motivate people. The most common styles entail the autocratic system, the democratic system and the delegate system. Each method has its specific benefits and demerits. Leadership is mainly situational; thus, a central part of leading is dependent on unique components of the organization. An effective manager is able to maneuver the style depending on environmental factors (Wysocki 2012). The autocratic system is essential for sensitive organizations where orders are given in top-bottom approaches. They are effective where the system cannot take autonomous decisions. This method is adequate when the leader has adequate information, limited time and motivated employees. However, it does not guarantee commitment and enthusiasm from employees. Consequently, the democratic styles are liberal because they accommodate incremental ideas from the team members. Moreover, they facilitate communication thus identify the gaps in knowledge essential to team development and organization’s growth. The employees contribute part of the information while the management contributes the other part. However, it is applicable where the workers have more experience and exposure with the employees. It is more participatory and effective in conflicts redressing (Margerison 2002). The delegate style is effective where the leaders have full confidence with the followers. They team members have full authority to make decisions on behalf of the management. Accordingly, the management is still responsible for the decisions they make. Therefore, this style is practical where the employees are self-driven with great value for accountability and efficiency. Effectively, a leader employs all the three methods depending on the situation (Margerison 2002). Consequently, there are specific approached to leadership related to projects management. This includes the transactional leadership and the transformational leadership. The transformational leadership is the most effective in organization management. This is because transformational leaders have a heightened ability to inspire and impart in their followers the organization’s vision. They are adaptive to situations and engineer regenerative ideas that fit into contexts. Moreover, they have the vital experience with insights on managing teams (Woodward 2005). Transactional leaders begin with the notion that team members take orders from their seniors. Transactional leadership is rather autocratic in nature. It clarifies the particular roles and responsibilities of the team members. Moreover, they assess the performance of people to gauge their worthiness. Therefore, members who are motivated by rewards often thrive in this system. The members have less opportunity to bargain their job description and satisfaction. However, many organizations employ the transactional method to maintain heightened control on the junior workers (Margerison 2002 p. 24). Conclusion Projects require constant monitoring in their implementation period. Therefore, they require the inputs of effective team leaders and a committed team. Team members need to receive adequate training on the technological information needed in the project. A solid communication strategy facilitates the storage and retrieval of data. Moreover, it ensures that all team members access the information when they need it. Therefore, it is imperative to maintain communication to address the challenges as they emerge. Nonetheless, the project managers should uphold leadership techniques that alleviate stress from the workers while capitalizing on their output. Welfare facilities such as guidance and counseling and work-life harmonizing strategies should be integrated in the project’s implementation. Reference List Anderson, W. E. (2010). Risk category 3 or 4. Journal of Electric and Electrical Engineers. New York: Electric and Electrical Engineers, Inc. 46(1), 326-330 Ammar, A., Kayis, B., & Amornsawadwatana, S. (2012). A review of techniques for risk management in projects. Benchmarking, 14(1), 22-38. Margerison, C. J., (2002). Team Leadership. London: Thomson. McManus, J., (2004). Risk management in software development projects. Amsterdam: Elsevier/Butterworth-Heinemann Woodward, J., (2005). Making Things Happen: A Theory of Causal Explanation. Oxford: Oxford University. Wysocki, K., (2012). Effective Project Management: Traditional, Agile, Extreme. Indianapolis, IN: Wiley. Read More