Projects & Systems Theory - Coursework Example

PROJECTS & SYSTEMS THEORY PROJECTS & SYSTEMS THEORY Historical background The Systems Theory as an area of study thatcame into light in 1940’s.Primarily, it is concerned with the way an organization interacts with the environment, interaction or cooperation of two or more organizations. Additionally, the theory analyses the means organizations interconnect, depend and interact with the internal and external business environment (Joslyn, 1992, 9). Some of the contributors to the system theory include Hegel, Von Bertalanffy, Darwin and Marx among other remarkable people who made an immense contribution to the study. Von Bertalenffy opposed the practice of analysing and describing a complex phenomenon in terms of its fundamental constituents so as to arrive at sufficient conclusions. Furthermore, he wanted to bring all scientists on board to collaborate in trying to unearth scientific mysteries. Moreover, he gave prominence to the premise that actual systems are usually open. An open system is exposed to the environment and interacts with it continuously. Since open systems are exposed to the environment, they are vulnerable to the threats and opportunities that emerge from the environment. Consequently, open systems are flexible and cope with the dynamism in the internal and external environment. The systems theory is not concerned with the individual components that make up the entire system. It is concerned about the compound set of things working together as a mechanism or interconnecting network (Hamilton, 1997, 35). In organizational context, system theory focuses on the set of interlinked units that are found in an organization. It may include departments, processes and operational activities within and outside an organization (Joslyn, 1992, 10). Key fundamentals of systems theory The concept of systems theory attempts explicitly to describe the constant change of activities in a process or a system. There a number of systems that surround that exist. Precisely, the dissertation is concerned with the open systems. An open system interacts with the environment on a daily basis, exchanges information and adapts to environmental changes. Consequently, systems theory is a concept that is widely applicable in the field of project management. Project managers understand some of the risks that the external and internal environment poses to successful project implementation (Joslyn, 1992, 11). Complex systems survive through organizing the components that make up the whole system carefully. A stable system is composed of smaller units that are also firm. Similarly, successful project management entails proper coordination of systems of an organization. Consequently, the concept of system theory remains very relevant to the field of project management. It is useful since an organization is treated a system, attention must be paid on some of the components that make the complex system. Some of the stakeholders that make up a system within an organization in project management include the project managers, suppliers, project sponsors, employees and customers (Hamilton, 1997, 35). Additionally, it comprises other activities that are very imperative to the successful project implementation. Allocation of resources for a project is usually a daunting task that project managers find it to be a challenge. They have to be prudent in resource allocation otherwise the whole system might crumble. Furthermore, effective communication is one of the most vital ingredients for any project to achieve its objective. Communication in a project may take a horizontal approach or a vertical approach. Project managers must continually keep in touch with stakeholders in order to address setbacks that emerge in a project. Projects must beat the set deadline otherwise it may lead to cost overruns. For projects to be completed within the set timeframe, the system must have to overcome some of the challenges that arise from the external and internal environment. Conversely, the above components interact with each other in any project. The interaction that arises from the elements makes a project management to be a complex system. Project managers have to find means of balancing them according otherwise a project may terminate prematurely (University of Twente n.d.). Although an organization can be viewed as a complex system, it is a subset of a much more complex system. One of the characteristics of a system is that it is always part of a larger system. Consequently, is interdependent with other systems hence cannot exist in solitude. However, each subsystem is unique in its way. Moreover, each has its hierarchical structure that is very distinct from the rest. The subsets of an entire system fulfil individual activities. The interrelated sets of activities that work together are primarily affected by events that take place at the subgroup level and the super-system level. Identifying a subsystem in a project is a simple task. It entails observing activities that are taking place at the site and trying to establish their source (Hamilton, 1997, 36). For instance, suppliers can be identified by monitoring the stocking activities that take place within the stores department. Despite the fact that some activities are considered to be a subsystem of a project, they must be incorporated into the strategic plans of a project. However, if the strategic plans of a project are changed, it can have severe effects on a project (Kerzner, 2013, 5). Systems theory advocates for the analysis of the elements that make up the entire system separately. Separating the elements helps in the understanding of the complex system. In order to understand how the whole system operates, a holistic approach has to be taken. Additionally, to understand the whole system, combinations of components that form the system have to be evaluated. The concept is also known as a synthesis process (Kerzner, 2013, 8). Managing a project is a very hectic and complicated task. It entails incorporating different activities that take place in a project. Since tasks in a project are carried out by various teams, the work of the different groups has to be harmonised to contribute to the overall task that has to be accomplished within a specified timeframe. Project managers must consequently understand how change of an element affects the progress of a project. In as much some elements may affect project implementation; some do not have a direct influence on the overall status of the project (Sterman, 2000, 8). Managers should acquaint themselves with the risks that their plans are exposed. Consequently, they must be aware of risk management techniques. Risk management is concerned with mitigating some of the risks that arise from the environment. Projects are exposed to political, economic, socio-cultural, technological, legal and ecological threats. It is impossible for those concerned with designing and implementing projects thoroughly to eliminate some of the risks that have been outlined above (Lyneis, and Ford, 2007, 14). According to the systems theory, a system tries to balance itself and becomes rigid to any changes that may pop out. A state of equilibrium is achieved when there is a successful interconnection of all the components that make up the whole system. However, in case there is a slight imbalance of the systems it may collapse. Frequently, if there is a change in the elements that make up a complex system it becomes adversely affected (Kerzner, 2013, 9). The fruits of a project that has been successfully implemented are usually realised after the activity has been wound up. Due to the uncertainty that is associated with the surrounding environment. Any slight developments might have severe effects to the overall system in a project (Hamilton, 1997, 37). Human Resource Management is a factor that can contribute to the success or failure of a project. Human resource management falls under the internal environment of a business entity. An organization can control its internal factors, unlike the external environment that they only have to cope. Issues relating to the welfare of employees should be addressed adequately to avoid labour crisis that may result to snarl up of a project (Meredith and Mantel, 2011, 9). On the hand, poor communication can create conflicts among stakeholders of a project. For instance, inadequate communication between project managers and suppliers can lead to a misunderstanding in the provision of materials needed by the project. Consequently, suppliers may fail to deliver materials according to the recommended specifications something that may compromise the quality standards of project deliverables. Most projects fail due to poor communication between project stakeholders and failure by most project managers to address the welfare of the employees (Meredith and Mantel, 2011, 15). According to the systems theory, a risky environment is likely to lead to project failure. A project manager usually seeks to exploit the opportunities that exist in the environment. Therefore, they should employ their competitive strengths to ensure that they succeed in the venture that they wish to undertake. Consequently, organizations must systematically monitor the external and internal environments and must evaluate its competitive abilities. The set of forces that threaten implementation of projects can be divided into six broad segments as it was earlier indicated. The economic, political, legal, socio-cultural and legal environments fall under the external environment domain. On the other hand, Marketing and distribution, production and operations, research and development and finance and accounting fall under the internal environment domain. A project as a system must be able to adapt to changes in both the internal and external environments otherwise the project will collapse (Meredith and Mantel, 2011, 18). Part II-Practical Application Description of a project The construction of roads especially highways in towns is always a mega project for many governments and other development partners. Furthermore, the cost of construction associated with the development is usually very high. Consequently, rather than developing new highways, most government agencies prefer improving the existing road networks. Improving roads among major town centres is always aimed at ensuring that there is free flow of traffic in major city centres. In addition road repair also seeks to improve road safety, enhancing the mobility of traffic, and developing the infrastructure that is necessary for economic prosperity. There are number of bodies that have been mandated to come up with master plans that are used for improving the road networks in a country. The body liaises with contractors to ensure that a project is completed within the required timeframe and attains the expected quality standards. Consequently, during the planning stage a lot of decisions have to be made on how land can be effectively utilized to decongest major urban roads. All the teams involved in the implementation process must always coordinate to ensure that the project becomes a success otherwise the activity may be doomed to fail if there is a lack of cooperation. The implementation process for road construction usually takes a number of stages that are interdependent. Therefore, if one process fails, the project will have to come to a grinding halt (Bassam and Munns, 1996, 18). List of systems The following are the systems involved in a road construction activity: 1. conducting a feasibility study 2. Preliminary engineering planning 3. Final engineering planning 4. Implementation 5. Monitoring and evaluation The process of planning for a road construction becomes more complicated as activities advance. The accuracy level at each stage has to be very high otherwise undesirable results may be achieved at the end of the construction. Feasibility studies are primarily concerned about the time factor in a project. Project managers have the responsibility for ensuring that the building of roads and highways is economically viable. Therefore, they must plan on how roads and traffic can be used appropriately to reduce traffic in central business districts. During a feasibility study, issues such as Environmental Impact Assessment (EIA) are conducted to evaluate the environmental impacts of a project. During the process, some of the threats that may surface as a result of the construction of a highway are carefully investigated. It is at the feasibility stage that a decision can be made on whether to start a project or terminate (Bassam and Munns, 1996, 8). The last process in planning for a road construction entails final engineering plan. There various task that are carried out in this stage. They include determining the actual location of the roads, road intersections, catering for the welfare of all road users and other nit-grits. The final engineering plan must abide by the required environmental standards. Hence, an Environmental Impact Analysis must be conducted on the final design plan. Environmental Impact Analysis seeks to ensure that a project does no cause adverse effect to the environment. In conclusion, a feasibility process and the final engineering plan are subsystems that are part of an elaborate system in a road construction industry (Bassam and Munns, 1996, 8). How project systems are interdependent The processes of a project are interrelated and systematic. One activity has to be executed before another starts. Precisely, if a preceding task fails to be accomplished, the succeeding work cannot be initiated. In a project, the processes are allocated a timeframe that are supposed to be started and completed. Each task is conducted in an orderly manner before another can begin. The idea of interdependence of activities in a project is therefore very imperative and cannot over-look. Teams have to work harmoniously to ensure that the project the tasks in a project have been fulfilled (Sterman, 2000, 6). Changes in the Final engineering planning/design stage will affect the implementation phase of a project. During the design process, engineers of a road construction company come up with specifications for a project. The specifications are developed to ensure that the road meets the quality standards that have been set by government agencies/regulators. One the engineers recommend their specifications; the procurement department is given the mandate of going on with the tendering process to purchase the materials that can meet the standards proposed by engineers. Additionally, the department must ensure that the materials needed are supplied within the specified period otherwise the project may stall. If the materials purchased do not meet the recommended quality, the implementation process may be delayed or even cancelled since the roads under construction will meet low-quality standards (Sterman, 2000, 7). Description of management techniques Previously, role of the organization in project management. However, with time, project management became a complex system that required administrative structures to provide leadership to complicated decisions. In the recent years, Project management has evolved to incorporate the administrative roles assigned to stakeholders of a project. Project management, therefore, entails the application of management tools and techniques that are aimed at ensuring the successful implementation of a project. The tools and techniques are used to ensure that an organization utilizes its resources adequately to accomplish the mission of a project within the designated time at a minimal cost. The activities in a project depend on tools and techniques that are used by the management to run the project (Sterman, 2000, 8). A strategy that can be applied to ensure that interrelated systems work together effectively is the use of the management techniques and tools that project managers should be aware. The most notable tools that can be applied include the Program Evaluation Review Technique and the Gantt charts. Given that project management is a very dicey activity with a complex system, managers can use some of the tools that are effective. The Gantt chart and the PERT technique are very useful tools and techniques respectively that can be applied in planning for accomplishing activities. The PERT tool can be utilised to plan and control the systems of a project. The tool is also referred to as the Critical Path Method (CPM).PERT is used to indicate how the tasks of a project have been scheduled. In addition, it also indicates the expected variable of a project (Sterman, 2000, 7). Implications of the external environment The external environment entails the outside forces that affect a project system. It includes the Political, Economic, Social-cultural, Technological, Ecological and Legal sectors. All the above forces present opportunities and threats to the project system. Political situations in a country may create opportunities or threats to a project system. For example, political turmoil can cause instability to an economy. Consequently, if the political chaos becomes very rampant, the implementation process of a project is likely to abandon because project teams may run away to seek asylum in other countries. On the other hand, a favourable political environment may create a lot of opportunities to project stakeholders. Economic trading blocs that are formed between different countries may offer an opportunity for contractors to outsource for cheaper raw materials from the trading partners (Bassam and Munns, 1996, 19). The economic environment has a lot of influence on the success of project systems. The economic environment is very dynamic and volatile. Interest rates, inflation rates, levels of unemployment and other economic variables affect the implementation of a project. For instance, increased interest rates will translate into increased cost of borrowing. Consequently, the accessibility of funds that may be needed to complete a project may be much limited. Moreover, increased inflation rates will lead increased cost of raw materials. On the other hand, favourable economic environment will offer ample time for projects to be completed (Sterman, 2000, 9). Part III Reflection The application of the system theory is real in project management is real. An organization is considered to be a complex system that is surrounded by the external environment and the internal environment. The complex system is made up of subsystem that supports it. Activities that take place in the subsystem affect the complex system. In addition, all the subsystems relate with each other. However, the complex system is concerned with activities that take place in the external environment. An organization cannot control the external environment. It must find ways to adjust to changes in the environment. Since systems are exposed to the threats and opportunities that emerge, project managers must find ways to control threats from the environment. In addition, they can apply some of the management tools and techniques that can help them plan for execution of projects within the set period. A processing a project is intertwined with other activities. In many instances, the deliverables of one process have to be attained so as to be used in a succeeding task. Therefore, a change in one of the subsystems affects other elements that make up the whole system. Project managers must, therefore, ensure that they manage the project holistically as a system rather than dealing with separate subsystems. Bibliography Bassam F. Bjeirmi and Munns, A. Kennedy."The role of project management in achieving project Success." International journal of project management 14.2 (1996): 81-87. Joslyn, Heylighen. “What is Systems Theory?”Cambridge University Press.1992.Accessed 12.3.2015. < http://pespmc1.vub.ac.be/systheor.html> Hamilton, A, "The need for understanding systems." In Management by Projects: Achieving success in a changing world, 33-58. London: Thomas Telford, 1997. Kerzner, Harold R. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons, 2013. Lyneis, James M., and David N. Ford. "System dynamics applied to project management: a Survey, assessment, and directions for future research." System Dynamics Review 23.2‐3 (2007): 157-189. Meredith, Jack R., and Samuel J. Mantel Jr. Project management: a managerial approach. John Wiley & Sons, 2011. Sterman, John D. Business dynamics: systems thinking and modeling for a complex world. Vol. 19. Boston: Irwin/McGraw-Hill, 2000. University of Twente. “System Theory.”University of Twente. Accessed 12.3.2015. Read More