Theeffect of project management on the productivity of the business
Therehas been a heated debate on whether to use or not to use projectmanagement. As such, several analyzes have been performed to find outif there is any relationship that exists between the responsesconcerning the change in the productivity of the business, and theapplication of project management. Nonetheless, there is asubstantial relationship between the change in productivity of thebusiness and their utilization of the project management practices(Pollack& Adler, 2014). Therelationship, however, affects the management of the business in fewways, to back up, as well as foster the management of the project.
Theprojects that are properly managed will usually assign the tasks toevery resource that is available. Furthermore, the managers ofprojects do not simply assign the tasks, but they also assign thedeadlines. The deadline, unfortunately, is evil, but it is necessary.In most cases, there are those employees who fear the time frames,but ideally, the time limits act as motivation for the employees inthe business. As such, the deadlines usually get things done.Therefore, because of project management, the team will be able tomeet the deadlines of the assigned tasks. If these tasks areperformed perfectly, there is no doubt that the productivity of thebusiness will increase.
Onthe same regard, the management of a project will translate toincreased productivity of the business because there would be noambiguity regarding the utilization of a particular resource, at anygiven time. As such, the employees have less time to waste, and allof them will be doing something towards the productivity of thebusiness. In project management, there is no time for ambiguity asthe objectives, deliverables, and milestones are clearly defined.
Therelations between the success and the efficiency of the project
Whatis the sure way of measuring the success of the project? The successof the project has been measured in different ways. Additionally, thesuccess of the project has majorly been measured by the use of thetangibles. Despite this fact, the current point of thought is thatits stakeholders, particularly the chief sponsor, who can help bestto gauge the success of the project (Serrador& Turner, 2015). Theefficiency of the project, on the other hand, can be measured by theanalysis of the resources, the planning of the project, the constantmonitoring, and reporting by the project team and manager, as well asregular checks. As such, the project will be efficient if the projectis not falling out of the schedule, and there is no missing importantdeliverable.
Itis important to note that the overall success of the project is amuch wider aspect as compared to the project efficiency, irontriangle. The efficacy of the project is highly correlated with thesatisfaction of the stakeholders, as well as with the overall successof the project. In the investigation conducted to determine thiscorrelation, the efficiency of the project is correlated with thesatisfaction of the stakeholders by 60%. On the same note, theefficiency of the project was 56% correlated with the overall successof the project (Serrador& Turner, 2015). As such, theproject efficiency is a vital element that contributes to thesatisfaction of the stakeholders, and to the project general success.However, also, other factors substantially contribute to both projectsuccess and stakeholder satisfaction. Among these factors are
Performance of the output post-implementation of the projects
The environmental changes that were not the acts of God that are not within the control of the project team
Whether the results of the project were what the stakeholders anticipated, or whether there was a misinterpretation or the omission in the specification
Theoverconfidence of the project managers
Themanagers of the projects are the determinants of the manner in whichthe reflection of the risk is anticipated in the success of theproject. As such, the overconfidence of the project managers can leadthese managers to assess and evaluate the risk in a manner that isbiased. The risk awareness of the project manager functions as theintermediary between the risk assessment and the overconfidence(Fabricius& Büttgen, 2015). There is amyriad of ways in which the project can move, but the manager of theproject usually sets the pace and the tone of the movement of theproject. If the attitude of the manager lacks the listening skillsand is flippant, the project may wane at the mileposts, and fail torecover.
Apartfrom the risks that come along with overconfidence, it can also be adevice that is employed to comply with the outer restraints, whichrequire the performance of above-the-average. A team that is morecommitted is usually more motivated to hold on to the commitment. Ifthere is a commitment, even when the team is supposed to offer morethan its levels of productivity, it is more probable to do so. Thereis no any easy way or the cookbook to handle the issue ofoverconfidence because it is deeply rooted in the being of people(Fabricius& Büttgen, 2015). However,if it is acknowledged, and the actions and triggers are put tomitigate it, there will be a huge difference between the success andthe failure of the project.
Whatis the role of the project manager in addressing the phenomena ofoverconfidence? It is paramount for the manager to understand thatpersons are usually subject to estimations, or irrational decisions,often on the upper side. As such, the phenomena can be handled as arisk part of the plan of risk management. When this becomesapplicable, it will assist to have the standards of the industry forthe duration and the resources required for the specific tasks. Atypical example is the benchmarks concerning the software developmentproductivity, period. Such parameters usually compare the bottom-upapproximations. It is normal to anticipate some extent of deviation,but if the deviation is above 30%, it is worth to do furtherassessments and necessary corrections.
Procurementusually accounts for about 13% of the GDP in the developed republics.In project management, project procurement involves the designing ofefficient mechanisms of procurement and effective allocation of goodsand services. In project management, the project welfare is usuallybased on how quickly the materials and resources are delivered (Allen& Moody, 2015). For instance,when constructing the commercial building, the slow completion willinflict the negative externality on the owners of the building.Therefore, the project committee awards the contract using thescoring auctions that provide the contractors with some explicitincentives, which will accelerate the delivery. As such, the impactof the contract incentives is to speed up the project completion,within the scheduled timeframe. The contract penalties, on the otherhand, enable the contractors to be keen on the requirements of theproject, which results in fewer faults. Where the project employedthe scoring design, the contracts can be completed at around 40%faster, and the welfare exceeds the procurement expenses. For thefavorable contracts, the buyers need to understand the contract causeeffects they should understand the contract language, and more so,they need to understand the long and short-term goals of contract(Allen& Moody, 2015). Nonetheless,the programs of incentives should be in alignment with the goals ofproject management, to boost the supplier motivation.
Allen,H., & Moody., W. (2015). Project Procurement: The Impact of theContract Incentives and the Penalties, Vol.8(Issue2,), p1-26. 26p.
Fabricius,G., & Buttgen, M. (2015). Project managers overconfidence: how isrisk reflected in anticipated project success?. BusRes,8(2),239-263. http://dx.doi.org/10.1007/s40685-015-0022-3
Pollack,J., & Adler, D. (2014). Does Project Management Affect BusinessProductivity? Evidence From Australian Small to Medium Enterprises.ProjMgmt Jrnl,45(6),17-24. http://dx.doi.org/10.1002/pmj.21459
Serrador,P., & Turner, R. (2015). The Relationship Between Project Successand Project Efficiency. ProjMgmt Jrnl,46(1),30-39. http://dx.doi.org/10.1002/pmj.21468