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School of Business

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PMGT 4 0 2Project Leadership:Skills for Project

ManagersMario Vasilkovs

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W eek 2 Agenda

Housekeeping Update

Management Yesterday and Today:

Scientific Management

General Administrative Theory

Quantitative Approach

Organizational Behavior

Systems Approach

Contingency Approach Current Trends & Issues

Projects in an E-Business World

Week 2 Management Yesterday and Today

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Housekeeping Update

[email protected]

Office Hours:Wednesdays: 1030-1230

New to Section:Exam week of Aug. 16

Exam and Academic Honesty Policies

Blackboard & E-mail

Introductions

May 25 Class cancelled


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Managem ent Yesterday and Today

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Scient ific Managem ent

Fredrick W. Taylor Principles of Scientific Management:

1911Work at Midvale & Bethlehem Steel First to optimize industrial operations,

based on facts: Objectively-determined rates Standardized work instructions

Worker qualification Incentive pay: piecework and bonuses


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Principals: Develop a science for each element of an individuals work

Replacing rule-of-thumb

Scientifically select and then train, teach, and develop employees Instead of letting them find a job and train themselves

Heartily cooperate with employees to get work done usingscientific methods

Replacing force and persuasion

Divide work and responsibility almost equally betweenmanagement and workers

The management take over all work for which they are better fittedthan the workmen, while in the past almost all of the work and thegreater part of the responsibility were thrown upon the men.

Claude S. George, The History of Management Thought(Englewood Cliffs, NJ: Prentice-Hall Inc., 1972) P. 93

Taylor called for a mental revolution Intended as a win-win

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Ripped from todays promotional e-mail, fromSupply Chain Digest:

Fortna W hite PaperThe Secrets of Applying Lean to Distribution Operations

In 2007, a major U.S. big box retailer implemented lean across its network ofdistribution centers. Within a year, and coupled with a full labor managementimplementation, the retailer realized $1 million in savings at each facility--and

annually thereafter. Impressive -- but not uncommon.

Typically, companies that implement lean in their distribution centers can expectto see a 10-20 percent increase in productivity. Improvements as high as 30 to50 percent are not unusual with a comprehensive labor management program

that includes lean, engineered labor standards, labor

management software and incentives.

Click her e to lea rn m ore about the Six Secrets of Success and how LeanPrinciples could bring double digit gains to your oper ation!


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Frank (1868-1924) & LillianGilbreth

Accepted to MIT, but laid bricks

Reduced physical motions requiredby ~300%Improved tools & methods

Time/Motion studyTherblig basic hand movements

Basis for process and flow charting

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Genera l Adm inistrat ive Theory

Henri Fayol

Concept: management a function

Universality of Management

Definable and teachable

Plan, organize, command, coordinate,control

Published in 1916, virtually ignoredoutside of France until 1949


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Fayols 14 principles:Division of W ork Specialization Efficiency

Authority Gives m anagers the r ight to give orders

Discipline Obedience and respect for rules

Unity of Com m and One m an, one bossUnity of Direct ion Organizat ion has single plan

Subordination of I ndividualI nterests

to the General I nterest

Rem unerat ion Fair rew ards for service

Cent ralizat ion Degree em ployees involved in decision-making

Scalar Chain Line of authority

Order Place for everyone and everyone in place

Equity Kindliness and Just ice

Stability of Tenure Order ly personnel planning

I nit iat ive Harness w orker init iat ive

Esprit de Corps Team spir it builds harm ony


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Max Weber

Scientific Management for theInformation Factory

Theory of authority based on an idealtype of organization (bureaucracy):

Rational

Predictable

Impersonal

Technical competency

Authoritarian


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Exhibit S1-2

A bureaucracy

should have

Division

of Labour

Formal Rules

and Regulations

Impersonality

Career

Orientation

Formal

Selection

Authority

Hierarchy

Managers are careerprofessionals, not

owners of units theymanage

Uniform applicationof rules and controls,

not according topersonalities

Positions organizedin a hierarchy with

a clear chainof command

People selected forjobs based on

technical qualifications

Jobs broken downinto simple, routine,

and well-defined tasks

System of writtenrules and standardoperating procedures


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Relevance to Project Management:Division of Labor Task definition

Authority Hierarchy Requirement for chainof command

Formal Selection Technicalqualifications

Formal Rules andRegulations

Written rules,Standard procedures

Impersonality Uniform application

Career Orientation PMP

Week 2 Management Yesterday and Today13

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Quant itat ive Approach

Synonymous: OperationsResearch, Management Science

Post-1945

Mathematical and statistical:

Linear programming

Network Optimization

Inventory scheduling

Simulations


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Cont ingency Approach

Contingency Approach Defined:

There is no one universally applicableset of management principles (rules)

by which to manage organizationsOrganizations are individually

different, face different situations(contingency variables), and require

different ways of managingEarlier thinkers believed in the

universality of their models


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Cont ingency Approach

Contingency Variables /Dimensions, a sample:

Organization Size

Routineness of Tasks

Environmental Uncertainty

Individual Differences

Many more identified


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System s Approach

SystemDefined

A set of interrelated and interdependent partsarranged in a manner that produces a unifiedwhole

Basic Types of Systems

Closed systems

Are not influenced by and do not interact withtheir environment (all system input and output isinternal)

Open systems

Dynamically interact with their environments bytaking in inputs and transforming them intooutputs, which are then distributed back into theenvironments


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System s Approach

Employees WorkActivities

Management Activities

Technology andOperations Methods

TransformationProcess

System

Raw Materials

Human Resources

Capital

Technology

Information

Inputs

Products and Services

Financial Results

Information

Human Results

Outputs

Feedback

Exhibit S1-4


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Organizat iona l Behavior

Human Behavior at Work

People are the most important asset

Driven thinking into:

Incentive Plans

Designing work environment

Communication styles


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Exhibit S1-3


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Hawthorne Study: Elton Mayo and the Western Electric

Hawthorne Plant, 1924 Intended to study relationship between

lighting and productivity Altered light levels, measured productivity No matter how light altered, productivity rose! Conclusion: attention to conditions improved

productivity

Additional findings and learning:

Psychological performance factors Sociological performance factors Self-created norms and output standards Self-regulation of output A host of hitherto unsuspected factors


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Hawthorne Study Update:2008, original data rediscovered

Original conclusion likely flawed

Lighting always changed over theweekend Historically: productivity high on Mondays

Productivity fell when experiments

ended Ended in summerhistorically low

productivity (2009, June 4) Questioning the Hawthorne Effect. The Economist.


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Relevance to Project Managem ent

Approach Detail

Quantitative Engaged mathematicsModeling

Network optimization

Decision Tree

Sensitivity Analysis

Simulation

Contingency Adaptation as counterpoint toOptimization

One Size wont fit all

Concept of Variables / Dimensions

Framework for analysis

Systems Systems ThinkingProject as an Open System

Project is a system

Project has internal systems


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Current Trends and Cha llenges

Globalization:

Communications:

Time-zones, holidays, language

Cultural differences re: disagreement

Trust:

Value and contribution

Work Practices:

Ensure adoption of common practices

Tools: Planning, monitoring, reporting, issue

management

Communications: Voice, image, data


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Ethics:Professional Ethics

PMI code, applicable to members and/or

credential holders http://www.pmi.org/AboutUs/Pages/CodeofEthics.aspx

Business Ethics: Nortel, WorldCom, Enron, SOX

Bernard L. Madoff Investment SecuritiesLLC

Bear Stearns, Lehman Bros. Basel II +


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Workplace Diversity Staff heterogeneous in terms of gender, race,

ethnicity, physical disability, or othercharacteristics

A global issue

Canada recognizes and celebrates differences

Managers must make organizations moreaccommodating

Religious days

Family responsibilities

Harassment An expat perspective

As manager

As managee


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Entrepreneurship

Ability to achieve results, despite obstacles

Work Habits

Self-Belief Risk taking

Innovation

Open mindedness

Question status quo

Idea generation: who, what, when, where, why,how


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Entrepreneurship

Ownership

Treating the Project as your own business

Understand why its a good product Spot more opportunities

Sell:

To the organization

To the team http://www.icfi.com/Publications/Perspectives-2004/IT-implementation-management.asp


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E-Business World:

Theres a certification for that

Recognizes the rapid evolution of the

subject area PME: Project Manager E-business

certification http://www.icecc.com/


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Learning Organizat ion

Defined:

An organization that has developedthe capacity to continuously learn,

adapt, and change through thepractice of knowledge managementby employees

Knowledge Management:

Acquire

Share

Apply


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Exhibit 5 -1 0

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Characteristics:Team-based design to empower

employees

Extensive, open information sharingLeadership provides a shared vision of

the future, support, encouragement

Culture of shared values, trust,

openness, and a sense of communitySignificance:

Project Team

PMO32Week 2 Management Yesterday and Today

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Quality Managem ent

Defined:

A philosophy of management drivenby continual improvement and

responding to customer needs andexpectations


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Quality Managem ent


Characterist ic Applicat ion to PM

Customer Focus StakeholderManagement

Continual Improvement Project Delivery Tools

Attention to WorkProcess

Project Delivery Process

Improve quality ofeverything

All the steps

Accurate Measurement Actual vs. Budget vs.

Estimate

Empowered Employees Everyone contributes

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W hat w eve achieved

Management theories are differentways of looking at the same issue:

Ways of looking a the M in PM


Management Theories

Exhibit S1- 6

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Quiz Preview

Which of the following decisionsinvolves the management functionof controlling?

A. When is a performance deviationsignificant?

B. How should jobs be designed?

C. How difficult should individual goalsbe?

D. When is the right time to stimulateconflict?


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Quiz Preview

Richard is a manager at a large hospital. He has spenthis day arranging the work schedules of employees forthe next month. He had to ensure that there was aregistered nurse on every shift, and that each wasassigned to the area that best suited their qualifications.

He spent his day __________.

A. Planning

B. Organizing

C. Delegating

D. Controlling


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M/ T Preview

Name and describe two of the sixcharacteristics Max Weber used todescribe the ideal organization (4

Marks).


Exhibit S1-2

A bureaucracyshould have

Divisionof Labour

Formal Rulesand Regulations

Impersonality

CareerOrientation

FormalSelection

AuthorityHierarchy

Managers are careerprofessionals, not

owners of units theymanage

Uniform applicationof rules and controls,

not according topersonalities

Positions organizedin a hierarchy with

a clear chainof command

People selected forjobs based on

technical qualifications

Jobs broken downinto simple, routine,

and well-defined tasks

System of writtenrules and standard

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