Student Publications


Author: Ghadeer Al Wahaibi
Title:
Causes Of The Failures In Engineering Projects And Proper Solutions
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Acknowledgements

It is my pleasure to have some people who gave me great assistance,
support, advice and they shared experiences with me, which support me
during my DBA study with this in mind that I take the opportunity of
acknowledging the following people, either personally, or through their
organization or department.
First, I thank my supervisor, guide and mentor (Dr. Franklin Valcin) for his
generous invaluable advice and positive direction throughout my DBA study.
I acknowledge (Mrs. Cristina Tohill) for her continues support from time to
time through out the course. In addition, all the professorial and teaching
facilitators of the ATLANTIC INTERNATIONAL UNIVERSITY in HONOLULU,
HAWAII whom I approached were generous with their time and assistance,
being prepared to offer help and advice when I lacked the knowledge or
experience and I thank them all for their support.













2

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management



Abstract
The aim of this thesis is to identify the route causes for the failure in the
projects delivery and how the management education can help at best level
and make a significant contribution to small enterprise solvency.
Research by Williams (1986) indicated that over 60% of insolvent smal
projects owners gave one reason as ,,a lack of business/management
experience or skill.
This implies that significant percentages of projects insolvencies were
avoidable, had the project owner/managers acquired further business skill,
knowledge or support. That why we suggests that increased
business/management competencies may enable management blind spots
within the internal activity structure of some enterprises, to be brought into
focus and so controlled (Williams, 1984).
This thesis undertakes research, to identify the contribution of various
management education programs to most of the projects solvency. The
methodology used to test this contribution to business management
knowledge, comprised surveys of management education facilitators and
program participants, by education institutions from Government and private
Registered Training Organizations (RTOs) and Government and private non-
RTOs. The objective was to determine, with quantitative surveys, if a
significant difference could be established between educational facilities
offered and small project owner/manager requirements, with the intention to
make this an initial exploratory research.
The thesis examined perceptions of project owner/managers participating in
management education programs and whether there is a contribution to the
solvency of businesses from an educational framework that gives projects

3

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

owners who lack crucial business/management skills, direction towards
specific information, knowledge and abilities.
The intention was to bridge research gaps concerning levels of project
solvency and skill-education available using four major types of business
educational.
The study included interviews with project Engineers/managers participating
in business programs to identify their perception of the contribution by courses
to the solvency of their enterprises. The research examined whether there
was a significant difference in certain clusters and competencies between
researched management programs, to establish if completing any program
affected positively
Since this, theses focusing on the effect of project Engineers skills on The
project solvency, and checking the outcome positive and negative feedback of
the impact of project management solvency to change there behaviors
Generally, there is a positive affects on Engineering solvency, depending on
the degree of the project Engineer skill and experience the in field that is why
we found during the research the following important points.
Predominantly male with education levels above high school level up to
University certificate, aged between 26-47 years, having enough theoretical
knowledge and some skill in their solvency and management, and wanting to
focus on assistance from consultants on goals and business plans.
The negative points which revealed from this study:
Predominantly female with primary school or trade qualifications, bur not
having university certificate, up to 25 years old or between the ages of 48 and
55 years, are not interested in building business or management skills. And
they did not focus on goal setting and the experience in project management
with a little interest in working with mentors or consultants.



4

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management



Indexes


Acknowledgements
2
Abstract
3
1- Chapter 1
10
Introduction
10
1.1 Thesis focus:
11
1.2. Background to the research
13
1.3. Research problem
18
1.4- Research model
21
1.5- Methodology
21
1.6- Research process
22
1.7- Data collection
24
1.8- Quality of this research
25
1.9- Definitions
26
Chapter 2
32
2- Research Methodology
32
2.1 Introduction
32
2.2 Research design
34
2.2.1 Research design alternatives
35
2.2.2- Exploratory
36
2.2.3- Descriptive
36
2.2.4- Explanatory
37
2.2.5- A combined quantitative and qualitative study
38
2.3- Research strategy
39
2.3.1- Assessment of research quality
40

5

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

2.3.2- Validity
40
2.3.3- Face validity
41
2.3.3.1- Content validity
41
2.3.3.2- Construct validity
42
2.4- Data collection
43
2.5- Survey questionnaire design
45
2.5.1- Interview instrument
46
2.6- Research justification
51
2.6.1 Benefit of this study
2.6.2 Outcome of research
52
2.6.3 Research gap
54
2.6.4- Limitations of this study
55
2.7- Chapter 2 Conclusions and Summery
56
Chapter 3 Background to and justification of research
58
3.1 Introduction
59
3.1.1 Overview and objectives of this study
59
2.1.1.1 Chapter 3 objectives
60
3.2- Project Engineer demographics
62
3.2.1- Projects managements entity demographics in Oman
65
3.2.2- Projects skills and failures
68
3.2.3- SE failure demographics
71
3.3 -National Project Management competency standards
73
3.3.1 Competency conversion into education programs
75
3.3.2 Application of competencies to management education
78
and development
3.4- Management education requirement:
82
3.4.1- Management competency
84
3.5- Support for education-competency development
85
3.5.1- Specific to required competencies
86

6

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

3.6- chapter 3 Conclusion
87
Chapter 4- Organisational culture and behaviours
88
4.1- introduction
88
4.1.1 - Project Management background
91
4.2- Parental influence
91
4.2.1- Career change
91
4.2.2- Political / Legal forces
93
4.2.3- Economic factors
93
4.2.4- Social/competitive forces
94
4.3- Industry forces
95
4.3.1- Endogenous factors
95
4.3.2- Business opportunity
96
4.3.3- Adequate capital and credit
96
4.3.4- Businesses/management competencies
97
4.3.5- Project management owner personalities
98
4.4- High energy level
99
4.4.1-Tolerance of ambiguity
99
4.4.2- Self-confidence
99
4.4.2.1- Awareness of passing time
100
4.5- Entrepreneurial business and management development
102
4.5.1- Knowledge of business methods
104
4.5.2- Project management competencies
105
4.6- chapter 4 Summary
106
Chapter 5
109
5.1- General Project Management competencies
5.2- Project Management Process
111
5.3- Organizing
112
5.3.1- Planning
112
5.3.2- Control
112

7

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

5.3.3- Leadership
113
5.4- Contribution of management competence in the project
113
5.4.1- Management skill
114
5.4.2- Technical and Experience skill
114
5.5- chapter 5 summery
115
Chapter 6
116
6.1- Management competency and education
6.2- How to improve the project management learning?
119
6.2.1- Self-help information dissemination
119
6.2.2- Adviser-assisted information
119
6.2.3- Education practitioner development.
119
6.2.4- Expert-driven general business management
120
6.2.5- Business management
120
6.3- Improving on competencies
121
6.4- Chapter 6 Summery and review
122
Chapter 7- Effect of project management education
125
7.1- Pedagogic approach
125
7.2- Androgenic approach
125
7.3- Result of available education
125
Chapter 8
127
8.1- The research finding
8.2- The survey result
129
8.3- Recommendation to reduce the Project failures
131
132
8.3.1- Project Initiation
8.3.2- Project pre start
134
8.3.3- Initiation Report
136
8.3.4- Project Outset
136
8.3.5- Project Schedule and Budgeting
137

8

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

8.3.6- Stage and Step Product Workflow
139
8.4- Project Organization
140
8.4.1- The Project Board
140
8.4.2- Project Manager
141
8.4.3- Project Engineer
141
8.4.4- Project Coordinators
142
8.4.5- Planning coordinator
142
8.4.6- Client Coordinator
142
8.4.7- Technical Coordinator
143
143
8.5- Determine Training Requirements
8.5.1- Project Control
144
145
8.5.2- Allocate Resources
147
8.6- Analyze the Risk in the project
Chapter 9- Conclusion and recommendation from this study
148

References
154











9

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Chapter 1
Introduction:

Knowledge gathering for a project management remains solvent is achieved
within the current business environment and influenced by contemporary
global management developments (Frey, 2001, p.38). On that premise, this
review begins with a brief history of management taking particular note of the
environment relating to project holder/managed business. The review
continues by assessing knowledge and skill information available to owners
and managers to build and develop management skills.
Exogenous and endogenous influences requiring management competencies
for continued solvency follow, before general enterprise and personal
management competency skill identified in the literature are then broken down
with an introduction to competency education facilities in 2003. The literature
relates to both general business and industry specific.
Griffin (1999) suggests management knowledge requires continuous learning.
Indeed, keeping abreast of current research and information, may prevent
repeating mistakes made by others in the past. In addition, root causes of
under-performance are often hidden behind core management blind-spots.
Organizations should therefore regularly examine the existing assumptions of
their structure and management practices (Drucker, 1994).








10

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.1 Thesis focus:
The focus of this study is projects management. This research examines the
ability and capability contribution of management and project engineers of
completing the project with fewer problems, concentrating on perceived
participant requirements of the facilitating their education and experience to
reach the aimed task and target
Because the important things which the managers and project Engineers
should understand is that the projects always are around 50% of all work
which can be carried out.
Due to that they can therefore be very important from economical view. That
makes the subject of the project failures and analysis is worth studying,
however it is not unusual the hear the question from some manager and
engineer who are just starting there carrier (it is common sense) we can they
are right to some extent because in general there is nothing in herently difficult
about any concept, but the difficulties always appearing when we are phasing
that in reality because the theory always different from practical from this point
the reader will find the following objectives in this thesis:
I will demonstrate the importance of project management
understanding as a project Engineer specialist and how they can make
there own right, not forgetting the potential for the positive contribution
which can improve the project out put.
I will demonstrate the systematic way of approaching the project
management.
The good and effective solution of progression from the starting of the
project like making the plans, strategy, formulation up to execution of
the project and subsequent activities.


11

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Explaining the correct way of using the available tools and techniques
which can applicable by the project manager at different stage in the
project life cycle.
Well defining of the project manager and project engineer role in the
organization and how they can be integrated.

Why all these study and research about the project management?
From the history we found it was a lot of change in the industrial behavior for
example in late 18th century, national economies were dominated by feudal
agriculture and, in matters of domestic and international economic trade, after
that the merchants (Galbraith, 1994). The Industrial Revolution utilized
application by power-driven machinery and as detailed evaluation of new
business ideas and methods became known, more entrepreneurs were able
to follow suit the development of cheap electricity.
In 19th century, the Modern Industrial Capitalist (MIC) age was established
(Galbraith, 1994, p.1). Then from the beginning of the 20th century, studies of
business structures and management procedures were carried out and
business managers increased their knowledge and understanding of how to
achieve results beneficial to both shareholders (owners) and employees.
The MIC system has developed with significant advances from that time,
developing organizational structure, management skill and culture systems
within enterprises (Daft, 1997).

This research I will try to examine the contribution of management and project
Engineer education and experience to execute the aimed projects and how
they can facilitate the educational out come.
As it appear from the research the small enterprises are play a major role in
the industrial are where they can provide both employment and
goods/services.

12

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


The rationale for this study originated from major concerns displayed by oil
companies since 960s, regarding the financial stability and long-term
solvency. For example the Australian Bureau of Statistics (ABS) data
regarding Australian private sector solvency (2001c, Section 8127.0, pp 10),
indicate that on average, over 90 000 small enterprises deregister from the
Australian economic market each year, with 75% or over 67 500, having
traded for less than 5 years (Berryman, 1993).

In this research also I will examine the amount if any that various
management courses and how this can impact on small enterprise solvency.
Initial motivation for this research was to discover if it was possible to identify
whether the high failure rate of projects, was caused through business
education deficiency.

Management understanding and education development since the end of the
19th century has had an important influence on management activity.
Growth in understanding offered project owner/managers opportunities to
learn how to control and operate enterprises. The purpose of this section is to
examine evolution of management concepts. In particular, development of
management knowledge and style is reviewed, together with approaches in
exercising authority.

Literature reviewed in this section, followed progress of management research
leading to contemporary studies cantered on management education and
management development. This comprised history of enterprise development
and internal mechanisms of enterprises over the 20th century.
Whilst this study cantered on project management, research carried out for
this study relates to entities of all sizes. Regardless of entity size this study

13

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

demonstrates that while each entity may be unique, there are certain common
management features that is, in greater or lesser degrees, observable
amongst them all (Daft, 1997).

Knowledge of organizations and management evolved, and theories
espoused reflect this development. To understand contemporary theory of
organizations and how perspectives evolved, Robbins and Barnwell (1994)
suggested researchers should analyze the history of management styles and
philosophies.





















14

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

1.2. Background to the research

Robbins and Barnwell (1994, p.5) defined organization theory as: ,,The
discipline that studies structure and design of organizations. To date over the
last hundred years, researchers have studied the structure of organizations
and suggested improvements through studying an enactment of
organizational design.

To keep the research relevant, this review of organizational theory
concentrated on the post-industrial revolution period that brought scientific
studies into the area of management and production of goods and services
(Hatch, 1997). The period under review began in the mid 19th century when
thousands of people left the countryside and moved to the city. Labour was
plentiful and some organizations offered workers very poor wages and
facilities, which inspired Karl Marx (1888) to predict that the chasm between
rich owners and poor workers would revolutionise the social status quo
forever. Whilst some of his predictions were realized, for example, creation of
a strong middle class, many of his conclusions were not, such as a workers
revolution (outside of Russia). However, this study is not concerned with
sociological roles, influences and their consequences on industry.

This research concentrates on ,,classical management theory, which focuses
on practical problems faced by owner/managers organizations and how
theories then became increasingly concerned with human behaviours in
organizations.





15

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


From 1900 to 1930, the first general academic theories of management began
to appear. Frederick Taylor, a mechanical engineer in an American steel
company, searched for the ,,one best way for manual work to be done in order
to increase productivity (Robbins et al., 1998, p.713); this was later called
"scientific management." Taylor believed, using a standard technique or tool
increased efficiency, and people were motivated primarily through financial
incentives (Griffin, 1999, p41). Taylor concentrated on improving management
activities through his own scientific study and calculated that with better tools,
sequencing and operator movement, productivity could be improved (Robbins
et al., 1998, p.714). Whilst Taylor demonstrated importance of compensation
as motivation and initiated careful study of jobs and tasks, he did not consider
social aspects of jobs, or the fact that people had different attributes.

Moreover, Taylors theory ignored individuality of workers (Daft, 1997, p.43).
Insolvencies are a substantial cost to the oil companies is differ from one
country to other depend on the tax revenue, increased social security benefit
outgoings to redundant employees and financial losses to unpaid creditors,
which may in turn affect the solvency of those creditors (Berryman, 1993).

Figure 1.2 (page 5) sets out both numbers and percentages of businesses
and employees in some countries especially in small enterprise according to
(ABS Cat. No 1321.0 1999b). Businesses and employees in that sector,
including agriculture, forestry & fishing, number 1 051 500 or 94.55% of
entities and 3 368 200 or 39.86% of employees as cited Perry & Pendleton
(1990, p. 7) note that within two years of registering an entity, about 50% of
enterprises de-register. Failed small enterprise projects give many causes for
insolvency including lack of funds, bad management or bad leadership.


16

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Perry & Pendleton (1990, pp. 7-8), also cite research by Professor Alan
Williams (1986), who suggests major causes of insolvency as financial
mismanagement (32%), management incompetence (15%), poorly kept
records (12%) and sales/marketing problems (11%). Williams asserts that
overall, 60.5% of insolvent owners questioned in his study, gave one of the
reasons for their insolvency as, ,,lack of business/management experience and
skill (Perry & Pendleton, 1990, p. 8).

And we can found a lot of books which have publications explaining how to
remain solvent, for example like what been written by authors prepared to
share successful strategies, (such as Hardy, 1987, Harvey-Jones, 1994,
Gerber, 1995) or management and strategy scholars (such as Ohmae, 1982,
Porter, 1985, Daft, 1997, Drucker, 1998, Griffin, 1999). With all this available
knowledge, together with assistance from accountants, bank managers,
business consultants and business courses, we have seen tens of thousands
of businesses continue to become insolvent each year (Drucker, 1998).













17

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.3. Research problem

Every Project Manager and project Engineer has distinctive personal
characteristics, individual management styles, and their own personal goals,
thus making each project unique. So it is suggested in the research that the
proficiency in both general and specific project Engineer competencies,
required by any small or medium project owners, may be found in generic
management courses (Carland & Carland, 1990). It is also suggested that
these courses may remove business project holder ,,blind spots, enabling
small and medium project owner/managers to see clearly what is needed for
their enterprise to function profitably and trade slovenly (Bureau of Industry
Economics, 1990).

Essentially this thesis examines the argument that for project owners lacking
business/management skills, consideration of the different styles and content
of management development courses may offer guidance and direction to
correct these inadequacies. In particular, this study considers the perception
of course outcomes from participants and the quality and benefits resulting
from androgenic and pedagogic teaching methods within available
management courses for specific industry types and needs.

From the research we can identify some major project in the oil company
revealed over 94% of all entities and employ more than 39% of the working
population. It was also pointed out entities are "fragile" in their first five years
of existence (Berryman, 1993). According to reports by Bailey and Royston
(1981) Beddall (1990) and Karpin (1995), to avert this high level of early
deregistration, management education is regarded as desirable. Projects
owner/managers are able to access a diverse miscellany of project

18

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

management education courses delivered currently in the market place from
Government and non-government facilities.

However, according to reports produced by Meredith (1984), Dawkins (1991)
and Williams (1992) and noted in section 3.6.1 and Table 3.2 (page 111), the
traditional pedagogic classroom based courses are largely unpopular with
projects owner/managers, as they are too time consuming and too generic, in
contrast to the more adult-oriented andragogic knowledge sharing project
owner/manager courses, which are generally focused on the topic of interest
to the participant and timed to be within the available period that a projects
owner/manager can absent themselves from their enterprise (Carland &
Carland, 1990).

Justifies the study of teaching constructs involved in researching management
education programs and their contribution to sustaining projects solvency.
There are many project management courses and books available to deliver
the information regarding necessary business skills. However, in order to
ensure attendance/sales in sufficient numbers for a course/text to be viable,
management courses and textbooks chosen for publishing tend to be generic
and not industry specific. For that reason, using available education or reading
existing literature alone, may not give projects owners a complete range of
specific tools for the requirement of their unique businesses Importance to
every project engineer

The academic reports such as Beddall (1990), Berryman (1993) and Perry
(2001b) have identified a core reason for SE failure, as lack of appropriate
management competencies. This study investigates competencies required
and possible means by which project owner/managers would be able to
improve their management competencies.

19

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Literature reviewed indicates that major projects in the oil companies are
significant contributors to any national economy through job creation and the
sustainable delivery of goods and services (Berryman, 1993). Since the
1970s, the oil companies are recognition that educational support was a
necessary adjunct to project Managers,

Engineers and project holders sustainability, saw the allocation of these
companies resources towards various project managements development
programs as beneficial (Bailey & Royston, 1981, Beddall, 1990, DEETYA,
1998, QDSD, 2000, ANTA, 2001b, DETYA, 2002).
The area where I think it needs more to be improved is to identify the
difference between the perception of business management course
developers understanding of what is required by projects owner/managers
and the needs and expectations of the projects Owner/managers that
participate in educational programs.

National standards identify competencies required for effective management
performance. Competency standards are industry-based or general business-
based.











20

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.4- Research model

The basic of this research which I am going to follow to make the required
improvement to make effective management of this programs, contribute to
maintaining solvency. The provisions of this study lead to classifications of
core competencies, differentiation between general and specific skill,
identification of effective methods of teaching the new project engineers, and
assessment of their effectiveness. A map of the model will shows sources of
project management and project Engineer competencies, specific and general
skill and results culminating in a conclusion relating to activities ensuring
solvency. This model is created following the detailed literature review

1.5- Methodology

Research methodology will includes systematic and objective effective data
gathering, recording and analyzing, then evaluating the different between
concepts and theories to expand limits of knowledge. The research design
method was to establish a means of knowledge transference acceptable to
Engineering projects Management owner/managers while providing enhanced
management and project Engineers the required education through training.
The approach involved quantitative statistical analysis to draw conclusions
and qualitative assessment of interviews to consider issues resulting from the
conducted research.






21

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.6- Research process

This study proceeded through eight stages Operational steps
1- Studying and defining the a research problem
2- conceiving a research design
3- Finding an instrument for data construction
4- Selecting a practical and day to day example
5- Overall plan for research thesis
6- Collecting and analyzing the available data
7- Making all data in process
8- Finalizing and writing a report
Once the first step formulated, I will conduct appropriate investigation as
mentioned above. When after the survey is ready for action. Participant choice
of research was a cross-sectional design. This is ,,best suited when aimed at
finding out the prevalence of a phenomenon, situation, problem, attitude or
issue, by taking a cross section of a population (Babbie, 1989. p. 89). The
result gives an overall picture of the situation as it stands at the time.
To identify the benefit of the education and practical experiences for the
projects management and project Engineer to make this benefit is contribution
to the task and target of the success of related medium and small projects.









22

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


There are two surveys testing the components of the type of education which
given to the project holder and project Engineer:

1- First survey carried out an assessment of management courses offered
through available management educational institutions

2- Second survey using graduates who completed management courses of
institutes from the first survey, was also completed to assess perceived
performance and benefits in improving there type of working skill.




















23

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.7- Data collection

Research undertaken, involved a survey of designed and delivered to Project
management and Project Engineer and how to evaluate this courses defining
if there is any different whether delivered in line with the perceived
competency expectations of their candidates or not. In addition to that we will
find the added value to the course participants make sure they have gain an
insight clear picture from the point of view of project owner/managers and the
impact of courses on improvement in business competencies and the
solvency of their entities.

First we will try to establish if there a gap between project management
training which currently available and competency-skills required. Through the
second survey, comparisons and establishing reasons if any, for the gap of
the parties involved was carried out. The purpose of this survey was to obtain
information from defined populations, then collect data to quantitatively
measure and compare results.

Through this, it was possible to resolve issues that were developed at
commencement of the Study. In addition, this study selected across all areas
of the project levels starting from project engineer up to project management -
known as a cross-sectional design approach.







24

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.8- Quality of this research

Issues of the research quality and research findings are underpinned to type
and methods used. Quality was assessed through benchmarking my work to
the two questions.
1- "Will the measure and control of this research to similar results on
different occasions?"
2- "Will different researchers make similar observations if they copy this
method on a different occasion with different participants?"

These questions are satisfied where conclusions offer correlated proof
sampled from a significant number of entities, that certain management
educational courses, an appreciably higher positive attainment of
management skill retention was possible.

Then we need to make sure from the validity and practically can be used in
the real live by given clear and satisfied answers. Like if the new project
engineers are given the right training by good institutions, the quality of the
course provider was what the recipient believed they received.

In final step to generalizing the research results regarding abilities and
capability for each group together depending of age and experiences from
previous jobs through asking different questions it is possible that a new
approach to management courses could make a significant difference that
was able to be generalized.




25

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


1.9- Definitions


Definitions
What follows clarifies definitions of terms in this research

Downsizing
The systematic reduction in managers and staff to
become more cost effective

Entrepreneurial
The radical transformation by entrepreneurs of national
revolution
economic and social structures over the last thirty years


Endogenous
Internal strengths and weaknesses relating to structure
factors
and culture, and resources of the entity, such as
knowledge, raw materials and labor

Dependent
This is the main variable that is the main factor of
variable
investigation

Epistemological
Theory of method on grounds of knowledge

Benchmarking
Through research the average performance indicators of
businesses in an industry. Used at gauge the position of
ones company against peer companies

Ethnography
To interpret the world of the research subjects in the way
in which they interpret it

26

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management



Entrepreneur
A catalyst for change, optimistic, committed and
purposeful with certain abilities that appear significant
regarding project engineering operating success
Exogenous factors Opportunities or threats that include elements or groups
such as local and federal taxes, foreign government
tariffs, changing raw materials prices, competitors and
changes in customer demand

Independent
Cause, influence or affect outcomes of the dependent
variable
variable either positively or negatively

Competency-
Clusters of related knowledge, attitudes and skill that
based skill
affect a major part of ones job; that can be measured
against well- accepted standards and be improved via
education and development


Case studies
Study involving details study of a small example of the
subject

Competency
A combination of traits, skill, motivations, knowledge and
focus which result in a performance outcome

Andragogy
Where teaching is a process of active enquiry



27

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Adhocracy
A hierarchal project team implemented when considered
suitable by organizations that wish to establish and
disband project teams
in an ad hoc fashion


Ethno
The study of the way in which people create and
methodology
construct their way of life
Inferential
The methods used to find out something about a
statistics
population, based on a sample

Insolvency
A firm unable to meet financial obligations

Leadership
The ability to influence people toward the attainment of
goals

Locus of control
Belief in ones future accomplishment

Internal Business
Activities carried out by managers to develop their
department or enterer prize.

Mechanisms
These are derived through
learning how to plan, lead, organize and control their
work place
Ontology
Fundamental beliefs



28

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management




Organization
A consciously coordinated social entity, with a relatively
identifiable boundary, that functions on a relatively
continuous basis to achieve a common goal or set of
goals



Moderating
This variable moderates the original relationship between
variable
the independent and dependent variables

Organizational
The study of human behavior, attitudes and performance
behavior
in organizations

Pedagogy
Indoctrination method of teaching by stating facts and
spaced
repetition

Organizational
The discipline that studies the structure and design of
theory
organizations


Phenomenology
An approach concentrating on presenting the quality of a
situation rather than a statistical presentation



29

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Organizational
The set of values, beliefs, behaviors, customs and
culture
attitudes that help an organizations members
understand what it stands for, how it does things and
what it considers important
Paradigm
A mind-set that presents a fundamental way of
perceiving and understanding the world



Quality Assurance Systemized documentation of management, production
and communication procedures, designed to achieve a
standardized performance or product

Positivist
An objective scientific approach, as applied to the
paradigm
measurement of a concept

Qualitative study
An inquiry process understanding social or human
problem, based on building complex holistic picture,
conducted in natural environment

Quantitative study Consistent with the quantitative paradigm, is an
inquiry into a social or human problem, based on testing
a theory composed of variables, measured with numbers
and analyzed with statistical procedures, In order to
determine whether the predictive generalizations of the
theory hold true


30

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Variable
A discrete phenomenon that can be measured or
observed in two or more categories. For example,
gender, age social economic status, attitude or behavior

Total
Quality Continuous improvement through positive management
Management
activity and gaining of relevant knowledge

Theory Z
The application to western organizations of Japanese
management approaches

Theory Y
The assumption that people can enjoy work and
exercising responsibility

Theory X
The assumption that people dislike work and avoid
responsibility

Statistics
The science of collecting, organizing, presenting,
analyzing and interpreting numerical data for the purpose
of assisting in making a more effective decision

Solvency:
A situation where a firm is able to meet its financial
obligations

Reengineering:
Radical redesign of business processes to achieve
dramatic improvements in cost, quality, service and
efficiency



31

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Chapter 2

2- Research Methodology

2.1 Introduction
The literature led to five research issues to investigate the project
management root causes failures and participants using combined
quantitative and qualitative research methodology

The first issue related to surveys of Management Education Courses (MEC)
and development program facilitators refers to the extent to which
participating education institutions design and delivered for project
management programs reflecting the needs of participants.

The resulting analyses of that situation led to three further issues linked to
users.
These were first, to identify whether project owner/managers chose courses to
develop competencies set programs.

Second task was to determine if those project owner/managers benefit from
these courses.

Third, an assessment was made to see if courses developed competencies,
and finally to examine whether the courses were perceived to contribute to a
measurable increase in solvency.

Methodology used in this research was a systematic and objective process of
gathering, recording and analyzing data. The research was conducted to

32

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

develop and evaluate concepts and theories and expand the limits of
knowledge (Zikmund, 1997).

Research can be either pure research, which is conducted to verify
acceptability of a given theory, or applied research undertaken to answer
questions about specific problems.

Both pure and applied research use techniques or procedures that are
systematic and logical to help researchers confirm or disprove prior
conceptions (Zikmund, 1997). The design of this research project and the
techniques used to analyze data.



















33

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.2 Research design

Once the research objective is defined, the research design can be planned
(Cavana et al., 2001), a theoretical model was developed and variables
identified to find a solution for the business problem at hand, examines the
elements of the research design to demonstrate how data was gathered and
analyzed (Sekaran, 2003, p.117).

Research is defined by Clover and Balsley (1974, p. 1) as ,,The process of
methodically obtaining accurate answers to significant questions by the use of
scientific and systematic gathering and interpreting information. As the
outcome of any study is influenced by the choice of research design,
determining the characteristics is a significant factor in the quality of the
conclusion (Miller & Salkind, 2002, p.18)

The nature of information to be surveyed was both innately quantitative, for
example the percentage of projects owner/managers that were being
instructed or guided in the use of and preparing business plans and the
demographics of participants; and also qualitative, relating to the level of
course participant satisfaction perceived greater by educational institutions.









34

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.2.1 Research design alternatives

Social phenomena are generally complex, therefore choosing the right design
for a research project is vital when looking for answers to research questions
and controlling relevant variables.

How the study goes about answering the questions will determine the
outcome of the study and ,,the more variability, the more likely differences
between groups will be detected (Miller & Salkind, 2002, p.19).

Research design is a master plan which specifies the methods and
procedures for collecting and analyzing data (Zikmund, 1997, p.48).

There are three main types of research: exploratory, descriptive and
explanatory or causal. The nature of research is a consequence of the type of
or combination of studies to be carried out (Cavana et al., 2001).













35

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.2.2- Exploratory
Exploratory research is ,,initial research conducted to clarify and define the
nature of a problem (Zikmund, 1997p. 37). Exploratory studies are a ,,valuable
means of finding out what is happening and gaining insights to assess
phenomena in a new light (Saunders et al., 2000, p.97).

This research does not look for conclusive evidence to determine a course of
action. Rather an indication was sought, that by examining the contribution to
project management solvency of management education could lead to further
causal research that could be used to increase the knowledge and ability of
management in projects organizations.


2.2.3- Descriptive
Descriptive research is ,,designed to describe the characteristics of a
population or phenomena (Zikmund, 1997p. 38). The object is ,,to portray an
accurate profile of persons, events and situations (Saunders et al., 2000,
p.97). This is often carried out to describe characteristics of groups within an
organization or community (Sekaran, 2003, p.121).
This research measured the management education for a target population
and created a picture of its contribution to project management solvency.
Although errors cannot be eliminated, the aim was precise description and
results based on statistical testing.






36

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.2.4- Explanatory
Finally, explanatory or causal research establishes that an activity occurs as a
direct consequence of a particular activity (Zikmund, 1997, p.40).
This type of study is carried out to explain the nature of relationships between
variables (Saunders et al., 2000, p.98) or establish differences amongst
groups, or the independence of two or more factors in a situation (Sekaran,
2003, p.124).

In this particular study, the relationship of variables considered, was the
contribution of business management education to project management
solvency. Thus the type of research carried out was both exploratory and
descriptive.

















37

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

2.2.5- A combined quantitative and qualitative study

Combined approaches within the same piece of research may be possible
and often advantageous (Saunders et al., 2000, p.90). Table below
summarizes some major differences between deductive and inductive
approaches to research.
Differences between quantitative and qualitative approaches

Quantitative emphasizes
Qualitative emphasizes

Scientific principles
Gaining an understanding of the

meanings humans attach to events

Moving from theory to data
The
need
to
explain
causal

relationships between variables


A close understanding of research
The collection of quantitative data
context

The collection of qualitative data


The operating of concepts to ensure

clarity of definition
The application of controls to ensure
validity of data



A highly structured approach
A more flexible structure to permit
changes of research emphasis as the
research progresses

Researcher independent of what is
A realization that the researcher is
being researched
part of the research process


The necessity to select samples of
Less concern with the need to
sufficient size in order to generalize
generalize
conclusions



Source: Adapted from Saunders, Lewis and Thornhill (2000) p.91


38

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management



2.3- Research strategy
Ticehurst & Veal (2000, p2) quote Bennets (1991) definition of research as: ,,a
systematic, careful inquiry or examination to discover new information or
relationships and to expand / verify existing knowledge for some specific
purpose.

There are a number of ways to carry out social science research, such as
experiments, surveys, case studies, action research, histories and secondary
analysis (Yin, 1994, p.1).

However, exercising the spirit of Bennets definition is important when
choosing and designing the research strategy.

To determine the type of investigation being carried out, consideration is given
to what result is required. If it is to discover that variable X caused variable Y,
then a causal study is required. However in this study, a consideration of
variables associated with the problem are under review, thus this becomes a
study of correlation (Sekaran, 2003, p.126).

There are occasions when more than one strategy may be relevant (Yin,
1994, p.9).
In this study, the purpose is to generalize from a population so that inferences
can be made about various characteristics, attitudes and behaviors of another
population being researched (Creswell, 1994, p.118).
The first survey assesses attitudes of project owner/managers, changes to
business practices as a result of courses and benefits gained by projects that
affected their solvency.

39

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.3.1 Assessment of research quality
This section examines assessments of research quality, establishing the
validity of results, reliability of data and practicality of the measurement tools
(Cooper & Schindler, 2001, p.210).

The instruments are requested to measure concepts accurately and
constructs measured are relevant to the tested issues (Cavana et al., 2001,
p.209).

2.3.2- Validity
Validity of a measurement instrument is ,,the extent to which the instrument
measures what it is supposed to measure (Leedy & Ormrod, 2001, p.31).

The criteria for judging quality issues relating to method according to Yin
(1994, pp32-38) are the construct validity, establishing correct optional
measures for concepts being studied. Validated measures of high quality
negate the necessity to re-establish their validity for each study (Cavana et al.,
2001, p.322).
To achieve this level of validity, several validity tests may be used before
carrying out the survey, to test the goodness of measures. Four validity tests
follow to test the goodness of measures.
They are ,,face validity, content validity, criterion-related validity and construct
validity (Cavana et al., 2001 p. 212).






40

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.3.3- Face validity
This is an assessment of the survey in regard to it being clear and
understandable to the subjects and is tested through a pilot survey (Cavana et
al., 2001, p.212)


2.3.3.1- Content validity

Content validity is a function of how well the dimensions and elements of a
concept have been delineated (Sekaran, 2003, p. 206) content validity
ensures the survey contains sufficient measures to represent the construct of
interest (Gauld, 2002, p.112). There are three tests for this first from the
literature, secondly qualitative research and finally from the judgment of a
specialist panel (Cavana et al., 2001, p.213).

Criterion-related measurement
Criterion-related validity is where the measure differentiates that is either
known to be distinct, or can be measured to categorise entities on a predictive
basis (Sekaran, 2003, p. 206).

This may be done through concurrent validity or predictive validity (Cavana et
al., 2001 p.213).

Concurrent validity is established where the scale discriminates between sets
that are known to be different (Sekaran, 2003, p.206) such as competency-
based RTOs and non competency-based non-RTOs.
Predictive validity indicates the ability of the measuring instrument to
differentiate among individuals regarding future criterion.

41

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.3.3.2- Construct validity
Construct validity measures either where the data obtained using the two
populations or instruments are highly correlated or highly uncorrelated
(Sekaran, 2003, p. 207).

This validity testifies as to the correlation of the results to the theory from
which the issues were designed.

Two forms are convergent and discriminated validity (Cavana et al., 2001
p.213).

Convergent validity is established where the results of two different
instruments measuring the same concept return results that are highly
correlated (Sekaran, 2003, p.207).















42

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.4- Data collection

The types and sources of data for the realism method of collection Saunders,
Lewis and Thornhill (2000, p.224) cite the categorizes defined by Delbridge &
Kirkpatrick (1994) by types of data generated through participants as
,,primary, ,,secondary and ,,experiential.

Primary observations are those activities noted as they happen. They are data
specifically collected in research where the researcher is the primary user
(Ticehurst & Veal, 2000, p.82).

This is the firsthand collection of data by the researcher on variables of
interest for the specific purpose of the study (Sekaran, 2003, p.219).
That is information from focus groups or respondents relating to the study,
whose opinions on the topic are sought.

The secondary data are sources in existence, such as company records,
government publications or academic papers (Sekaran, 2003, p.219).
Secondary data could also be collected from earlier primary research but may
be used a second time in current research. For this research, it was possible
to approach data not fully exploited by original collectors of the data and from
a different aspect.

There are a number of reasons for this, it is possible that the original study
was researching a different aspect of the topic, or not in the field that the new
researcher is studying, or that available data are open to alternative
interpretations. It is the further analysis of this data that are referred to as
secondary research (Ticehurst & Veal, 2000, p.82).

43

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Finally, experiential data are the observations and feelings of the observer
(Saunders et al., 2000, p.225). These experiential factors may be collected as
a result of observations and discussions with multiple participants (Cavana et
al., 2001).

An important factor in choosing a data collection method is dependent on the
level of personal involvement of the researcher, rather than a desire to
produce quantitative or qualitative data (McNeill, 1986, p.113)

Data analysis
The data analysis was completed in a series of steps and is explained in
detail, section by section (Siegel, 1997, p.515).
These steps were first preparing for analysis, second getting a feel for the
data, third testing "goodness" of data, and finally testing issues (Sekaran,
2003, p.301)

The steps covered type of data required, manner in which data are collected
and how data are reported (Saunders et al., 2000, p.327). The results have
been presented in table form indicating information as output, thus
familiarizing the researcher with recorded data (Jankowicz, 1995, p.190).
The report then broke down results, tabulates information, and discussed the
dependent and independent variables, explaining their significance
(Jankowicz, 1995).

Finally the responses verified conclusions (Cunneen, 2002, p.180).
Data collection and analysis used a survey research study protocol and
interview instrument. The techniques employed were designed to support
statistical data analysis, for a methodology appropriate in support of a small
number of cases.

44

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management




2.5- Survey questionnaire design

A well-designed questionnaire will provide accurate and usable data to
maximize the potential to provide accurate and usable data; the
questionnaires were designed using three principles.

First careful questionnaire wording, second, applying categorization, scaling
and coding of the responses and finally overall appearance of the
questionnaire was of the highest quality (Cavana et al., 2001, p.227, Sekaran,
2003, p.237).

These three aspects show the breakdown of the process the purpose of each
question considered the adequate measurement of that variable. The type
and form of question depended on whether the information related to an
objective variable













45

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.5.1- Interview instrument

The survey questionnaire was in two parts. The first part of the questionnaire
was answered by MEC facilitators, seeking details of institutional type,
background of trainers including relevant business experience, education
content of courses offered and method of delivery.

Showing different aspects of a questionnaire design and administration
process (Cavana et al., 2001, p.228), breaking the preparation of the survey
into three steps for each population the first step of the design was to
determine the wording needed to achieve the research objectives.

To accomplish this, it was developed to indicate the Constructs/relationships
in the research model to the questions in the survey like:

Q 1: Please describe your own project.

Q 2: Where are they located?

Q 3: What is the subject matter being addressed?

Q 4: As a project manager what do you consider to be your main roles and
responsibilities?

46

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Q 5: What kind of training or professional development have you undertaken
in the past that fits you for this role?

Q 6: What kind of training or professional development do you think you still
need?

Q 7: What techniques or processes did you use to carry out a needs analysis
for your project?

Q 8: What kind of challenges or difficulties did you face in conducting the
needs analysis and how did you overcome them?

Q 9: What is your experience in specifying and scoping a project with a client?

Q 10: Who was the client?

Q 11: How did you go about the scoping process?

Q 12: What difficulties emerged?

Q 13: Where these difficulties fully resolved? If, YES, how; if NO, why not?

47

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Q 14: What is your experience in developing a Project Proposal?

Q 15: How did you go about the process?

Q 16: What issues/subjects did it address?

Q 17: Consider your own project. What kind of risks did you anticipate?

Q 18: What actions did you take to control or allow for these risks?

Q 19: What kind of organisational structures have been used to support your
projects? How effective has this been?

Q 20: What kind of skills or competencies does a project manager need to
have in dealing with such structures?

Q 21: What kind of project management software have you used? What have
been the advantages of using this software?

Q22: How would you go about launching future projects?


48

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Q23: What evidence can you provide of senior management ,,buy in to
facilitate the development and integration of e-learning?
Given your experience, what advice would you give to a project manager?

Q 24: What kind of difficulties or arguments arose in selecting your
development tool?

Q 25: Given your own experience, what would you advise a project manager
choosing a development tool for the first time?

Q 26: Make a list of development roles and names for your project to show the
extent of specialisation or use of multiple roles eg.
Lead designer or Course integrator

Q 27: What were the main issues or problems that emerged in getting the
team that you wanted (e.g size of team, balance of skills, level of skills, etc?)

Q 28: How easy or difficulty was the recruitment process?

Q 29: Did you make use of trainers in the project? If so, at what stages?


49

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Q 30: What kind of issues or problems emerged in terms of managing your
team? Did you manage to solve them and, if so, how, and with what degree
of success?


























50

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.6- Research justification

A basic justification of this study derives from the significant increase in
projects in the last 10 years, the high failure rate of projects failures managers
to manage their enterprise solvent and the alleged reluctance of project
owner/managers to participate in management competence training
Most of reports such as Beddall (1990), Berryman (1993) and Perry (2001b),
concluded that the core reason for projects failure, to be lack of appropriate
management competencies.

This study investigates competencies required and possible means by which
project engineer/managers would be able to upgrade their management
competencies.

This research deals with the project management sector, shown earlier to be
significant to the national economy. The focus is the importance of
management competencies and demonstrates the impact of commercial
management educational programs. This study evaluates project
management education programs and providers and considers the
implications for governments, advisors, academics, and individuals.

The aim of this research is to fill a gap in both project management solvency
research and literature, contributing to knowledge on management
competencies and increasing the chance of project management remaining
solvent.




51

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.6.1 Benefit of this study

This study considers Modern Industrial Capitalism since the beginning of the
20th century, where researchers have analyzed enterprises; their structure,
management of resources and the manner of carrying out activities.

The significance of past research shows that through the investigation of
learning and teaching methods, it may be seen that there are flaws, not in the
competencies but the method of knowledge and experience transference.

Large corporations developed over the 19th and 20th century, however in the
late 20th century, when circumstances arose that caused higher costs of raw
materials and labour, management practices encouraged ,,flatter management
styles, removing middle management positions and ,,excess labour.

In addition technology developed causing manufacturing tasks to be less
labour intensive and computers capability, with accounting programs
becoming more sophisticated, so the number of office staff required
diminished greatly (Champy, 1995).

As a result of the high level of unemployment, managements encouraged
start-up project management and this may be seen by increase in numbers of
enterprises one consequence of this huge proliferation of projects since the
1980s, without time to assimilate knowledge or education of the methodology
required to develop a solvent entity, may be seen in the reports of high
percentages of failure.

52

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Companies however could not tolerate these high levels of unemployment, as
paying unemployment benefit to 7 per cent or more of employment-aged
labour was untenable.

However with all the courses, books, accountants and education programs,
over the last 30 years no significant reduction can be seen in the proportion of
enterprise failure.

The significance of this research was to annotate and articulate progression of
activities relating to management education and education styles.

This paper shows where positive results are being felt and possible long-term
benefits through certain types of programs. In addition a comparison of what
was being asked for, what was offered, and finally an assessment of
educational methodologies to clarify how the requirements of project
management may be met and transferred, either by competent consultants or
through conventional education methods.













53

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.6.2 Outcome of research

This study considered and evaluated activities of both privet and government
programs, assessing programs and users, concluding with a new proposal to
the education approach.

Programs were evaluated and the concept of continuous improvement to its
systems was implemented the changing nature of business could be seen to
require a mindset that accepted future managers would need to constantly
upgrade their business and management knowledge.

This is considered as necessary, not only for the benefit of project
owner/managers as they commence their entities, but also to keep abreast of
current procedures as they progress through levels of business growth.
The intention of this research was to identify how to reduce the number of
insolvencies













54

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

2.6.3 Research gap

The objective of this study was to consider the project failure and how
management education can reduce this failure and enhance the project
management solvency and evaluate gaps in research leading to current
government and private competency and management education programs
for project management, the research assessed what education programs
were offered, who accessed them and why.

Finally, the research considered the perceived effect on solvency by project
owner/managers, to assess the gap between what knowledge and information
they require and what they receive.

It is the aim of this research to clearly indicate the gap between areas of
competence required for a strong solvent position and means of developing
required skill available to all project holders/ management prepared to learn
and understand the study required, with appropriate comments.













55

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.6.4- Limitations of this study

The strategy of this research which been used in this thesis was determined
by analyzing and using the available information.

Most of this information from literature, current available courses being offered
in this field/ surveys / interviews with projects owner/managers

Projects that contributed to the first survey agreed to give the researcher
access to graduates of their courses for the second survey.

Referred enterprises gave greater reliability as they came from identifiable
groups this grouping of participating enterprises was reliable as they could be
compared to similar populations.

Most of course organizers in this field have philosophies regarding strategies,
and these were examined using the above methodology and you can find
gaps in their intended beneficiaries attaining strong solvency skills.

The research outcomes will only result from careful preparation, the
questionnaires were meticulously planned in order to reduce the possible
limitations of result clarity. Data requirements were specific in the preparation
and careful planning and organization of the questionnaire helped to achieve
adequate results.

Quantified information was specifically focused on competency requirements
and gaps in education and knowledge needed for solvency of various
enterprises, in order to prepare a skill / enterprise type matrix.

56

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Analysis in the second survey had a number of limitations, for example, all the
surveys were carried our directly by the researcher, therefore the cost in terms
of available time and financial loss in earnings.

Although a random sample of graduates was used, one consequence of the
limited location may have caused bias in selection

Types of enterprises to be surveyed were diverse, but attitudes and work
ethics were limited in different projects especially in the oil fields.

The economic and political bias of populations may have been a main drive
factor However, diversity of enterprise type and national characteristics of
some projects and companies where the offering courses was a positive
factor helping to balance learning and experiences bias.















57

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


2.7- Chapter 2 Conclusions and Summery

The main purpose of this research is to extend the body of knowledge
regarding project engineering in the oil companies through examining the
contribution of management education to project engineering solvency.

In this chapter we try to establish the research problem, research issues and
objectives. By giving the preliminary literature review, a gap in research
outcomes reported has been noted, justifying the project.

To accomplish this, a theoretical framework was developed to examine
different business competencies required and demonstrate how they are
addressed through management education.
This study argues that programs should be fashioned to develop personal
skills, planning activities and business competencies in which project
engineering holders/managers may participate, or that an enterprise in times
of growth or decline can use to work through their issues.
In general, to meet demands of viability, business management courses are
generic in their coverage of business skill requirements; they do not focus on
outcome requirements or individual business solvency issues.
The chapter continued with details of objectives of terms and abbreviations
used, with comments on research limitations and an outline.
Further justification for the work was presented and an outline of the
methodology, documented in detail, was briefly reviewed.
Thus the chapter has documented what is to be carried out, how the project
will proceed, and an outline of why the research contributes to the body of
knowledge.


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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management



Chapter 3

Background to and justification of research
3.1 Introduction

The purpose of chapter 2 is to elucidate the background of the research
disciplines and justify this research study. This shall be accomplished by
defining and identifying the relevance of outcomes from this research into Oil
companies management courses available for projects holders/managers.

The study focuses on examining projects Engineer/Managers taking part in
management education programmes and the outcomes from those courses in
terms of their contribution towards engineering projects solvency.

We will try in this study the possible studies Solutions to the project failure
reports, all identified the importance to the economy of project management
and allude to the inadequacy of management education and development
courses, in coping with projects failure.
Overview of the national management competency standards program which
was initiated to assess and advance the quality of business management in
order to reduce projects failure and insolvencies
The accessed information for this study was through a review of research into
project management competency standards, education formats and skill
development programs in Oil companies and by identifying statistical data
regarding project management solvency and failure. Information regarding
national engineering projects competency standards is documented and
incorporation of these standards into courses offered by education institutes

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.1.1 Overview and objectives of this study
French industrialist Henri Fayol examined roles of organizational management
and published General and Industrial Management in 1919, which described
his management philosophy as a code of fourteen principles ( Division of
work, authority, discipline, unity of command, unity of direction, subordination
of individual interests to general interests, remuneration, centralization, scalar
chain, the unbroken line of authority, order, equity, long tenure of employees,
initiative and team spirit) (Robbins & Barnwell, 1994, p.31).

These principles focused on management of an entire organization rather
than individuals within one organization. Fayol also analyzed performance of
managers and concluded that they perform five tasks: planning, organizing,
commanding, coordinating and controlling (Robbins et al., 1998, p.5), which
are considered by current management text books (such as Daft, 1997, and
Griffin, 1999) to be classical management processes, focusing on
administrative management and individual employee productivity.

The third key theory from this time was developed by Max Weber, a German
sociologist, whose work was neglected in English speaking countries until
1947, when translated into English (Daft, 1997).

Webers theory for an ideal form of organization was bureaucracy, which laid
foundations for contemporary organisation theory. Weber was an early
academic in the field of examining management and organisational behaviour
from a structural perspective.


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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

His theory of bureaucracy was in fact, a construct with all the ideal
characteristics of a generic organisational hierarchy that could be related to all
sizes of enterprises from small to corporate (Robbins & Barnwell, 1994).

Webers hierarchal enterprise concepts continue to be used in 21s t century
organisations, along side more contemporary structures such as adhocracy
(Robbins & Barnwell, 1994, p.37).

Thus, over the last century, studies of organisational structure have enabled
enterprises to understand and plan different types of hierarchy.
We will examine development of national projects managements competency
standards, how competencies are converted into education programs and
how programs apply to projects engineers competencies.
Then we will reviews management education institutes and current education
programs which provided to establish how education is incorporated into
management programs.
And also in this chapter the documenting companies support for institutes
offering competency courses and a review of whether educational institutes
acknowledge international standards.
Then we will assess the significance of this study by a detailed research
justification. Where the summaries, indicating an awareness of the companies
regarding report outcomes relating to quality of projects engineer competency
skill and action taken to benefit this important sector of the economy
The justification is extended to consider outcomes gained from the
considerable sums of time and money spent by companies on competency
programs.
Finally, justification of this research indicates the gaps that exist in the
literature between management studies and conclusions drawn, regarding
education courses that address those research findings.

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.1.1.1 Chapter 3 objectives

The objectives of this chapter are to consider:

Project Engineering solvency and failure in the Oil companies
Project Engineer competency standards
Project Engineer business education providers
Oil companies support for competency education
Research justification
Potential implications for this study



3.1.2- Project engineering international definitions

Agreement on an acceptable definition of a small and medium projects has
proved as been indicated by elusive in his book issued (Howard, 1996, p.47),
and Neck (1977) found 50 separate definitions from 75 countries.

Watson and Everett (1996) quote White, Bennett and Shipleys report (1982)
that 700 definitions were presented to a Congressional Committee in the
United States of America (USA).

A variety of criteria have been used in an effort to find a universal definition of
a projects including total worth; relative size within an industry number of
employees; value of products produced/sold; annual sales or receipts and net
worth (Cochran, 1981). Areas of consensus relate to relative size in terms of
influence within a firms macro-environment (Howard, 1996). In 1953 a

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

definition within the Small Business Act in USA focused on a firm
,,independently owned and operated and not dominant in its field of operation
(Hodgetts & Kuratko, 1989, p.3).

For example in Australias Wiltshire Committee (1971, p.7) defined small
business as ,,a business in which one or two persons are required to make all
critical management decisions, without the aid of internal specialists. Section
249 of the UK Companies Act 1985, identified projects according to the
following criteria (Bridge et al, 1998, p.102)

A small firm in the UK must satisfy at least two of the following criteria:
· Turnover of not more than £2.8 million
· Balance sheet totaling less than £1.4 million
· Not more than 50 employees

Watson and Everett (1996, p. 46) cite Ang (1991) who used characteristics to
define small business: including not being publicly traded, involving
incomplete management teams, and lack of formality in stakeholder
relationships.











63

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.2- Project Engineer demographics


The oil companies are fully sponsored studies into all the projects which been
carried out, such as Petroleum Development of Oman, OXY and Alfa all
these companies which having concessions to explore and produce crude oil
in Oman are concerns about project operating and as it said by ABS (CAT.
No 8127.0 2001c, pp 3-4)

As persons that ,,own and run a business, ranging from proprietor to working
director of an incorporated company

These companies sponsored studies above, resulted in ABS committing itself
to increasing information regarding the project management sector business.
















64

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.2.1 Projects managements entity demographics in Oman

Number of enterprises and employees in Oman working in project sector,
including agriculture, enterprises and (39.86%) employees indicated that
there were a lot of project holder/managers, thus 12.36% of all Oman workers,
choose to be project-employed.

For the benefit of these entities, the oil companies and governments since the
1970s, desired project management skills to be developed and transferred to
project Engineer and project manager.

And we can see starting from the early 1980s, the number of small and
single-operator non-employing firms increased significantly.

From 1983 to 1999, an increase in the number of small and single-operator
no employing businesses averaged 2.5% per annum, resulted in a net
increase of 56.9% entities in a 25 year period.

Statistics shows that new enterprises numbers with the greatest annual
growth were single-operator non-employing firms, in addition, overall there
has been an 0% increase in the number of projects enterprises between 1999
and 2006 with the lowest annual growth for micro enterprises, employing from
10-49 staff.

The numbers of firms employing between 31-90 employees had a
significantly smaller growth rate than the average growth in numbers for
projects. Social clubs, non-business entities such as personal superannuation
funds and charities that do not employ anyone, have also had to register to

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

comply with the new regulations. This will distort future statistics, as not-for-
profit and non-business entities will probably stay in the sector and appear to
show that the percentage of entities deregistering is declining.

Change in annual growth of business is not equally spread over all industry
sectors, indeed not all sectors increased in terms of numbers of enterprises.
Agriculture declined steadily peaking in 1985-86, and the four-year period to
1989-1999 saw the number of firms in that sector drop by 4.4%. From 1994 to
2000, numbers of operating businesses in mining fell 25.7% and
manufacturing industry had 13.5%

As per the location of these projects around Oman we can say:

Population size had an affect on the numerical distribution of operators across
States and territories; indeed there was a mean growth of 11% nationwide.
The distribution of means was spread across the nation with all projects
around Oman which having an above-average growth of 10% around the Oil
concession area the number of projects increased by 9%.

If we check the age of operators in these projects we will find the following:
· 23% of operators were under 30 years old

· 45% of operators were between 30 to 50 years old

· 32% of operators were over 50 years old

Whilst percentage of project Engineers between 30 to 50 is a majority, the
number of operators under 30 and above 50 increased significantly in 2000 to
June 2005 period.

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

If we compare the Education of these projects holder and engineers who are
operating these projects we will find they have been classified as educated up
to school level (grade 12)

39%; post-school certificate level and trade certificate 30%; and those
attaining advanced diploma and above 31%
























67

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.2.2- Projects skills and failures

The large number of new projects established, attracted most of the big
companies attention due to a significantly high percentage of failures
especially in implementation of these projects.

If you compare failure rates of larger companies which are executing tens of
thousands of projects in each year you will find these figures are a concern to
the managements in terms of effects on fluctuating unemployment rates,
unpaid debts due and taxes due from failed entities.

However, keeping losses in perspective, total numbers of enterprises at any
point in time remains relatively stable, as an inflow of new enterprises
significantly replenishes exiting entities, while we are in this research we are
not concerned directly with the number of entities registering and
deregistering

It is relevant to focus on effects on the economy of tens of thousands of failed
enterprises and to comment on whether some could be avoided. These
failures cost these companies millions of dollars through default to creditors,
banks, representing an average of $1, 56 million per enterprise in gross
domestic product each year

Studies of project management ownership show that a perception of personal
autonomy is a major reason potential entrepreneur establish businesses. The
same studies show that whilst project management is autonomous, they are
reliant on others through limitation of skill and resources, expertise and
finance. Owning a small enterprise offers both benefit of individual authority

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

and disadvantage of personal risk. Project management are able to take
advantage of opportunities available, yet are required to deal with financial
and organizational threats consequent to their decisions or autonomous
decisions over which they have no control.

Whilst there were a few isolated studies regarding management skill
undertaken in Australia pre-1960, in 1969 F. M. Wiltshire chaired a Committee
on Small Business, studying Oman project engineer sector.

The Committee released findings in 1971 concurrent with the more
comprehensive UK ,,Bolton Report (Dunlop et al., 1992, p3). The
consequence of Wiltshires report was a groundswell of interest in skill
requirements of small firm owners. From 1974 a National Small Business
Bureau and later State advisory services and agencies, promoted, developed,
and then distributed management-education programs (Dunlop et al., 1992,
p.5).

During the 1980s, interest in assisting growth of skill education to project
management developed around the world , particularly through business
management courses delivered by both higher education sectors in addition
to private education sectors.

Twenty years after the Wiltshires report (1971), the Beddall Committee (1990)
recommended an active role by government to positively identify the
significance of project management for the economy and how government
could benefit the project management field and internationally through
appropriate action (Beddall, 1990). Beddall concluded that addressing
questions relating to success factors, failure patterns and the effect of project
management on the economy was and would always be, important.

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

The Parliamentary Committee found that two major factors inhibiting the
success and growth of small firms are lack of management skill by project
engineer holders/managers and low use of management education and
advisory services by small business people despite the range of services
available.

The Beddall Report (1990) recommended a program of information and
awareness development for project management, incorporating business
education into secondary education curriculum. Dunlop, Moir and Williams
(1992), suggested at the time of their paper that the quantity of project holder/
managers research indicate it was still inadequate as a per capita proportion,
with less than half the number of UK researchers and under a quarter of USA
researchers involved.

Their investigation showed that most project management studies carried out
by researchers had revealed only a peripheral interest in the small business
sector.

From the middle 1980s to 2002, many studies developed relating to
identification of success vs. failure prediction variables and issues.
These include: researchers Berryman (1983); Haswell and Holmes 1989
(1989); Perry and Pendleton (1990); Watson and Everett (1992); Berryman
(1993); Posner (1993); Kyambalesa (1994); Aderman (1995); Eidleman
(1995); Watson and Everett (1996); Cunningham (1998); Watson and Everett
(1999); Lussier and Pfeifer (2000, 2001); and Perry (2001b).





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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.2.3- Project failure demographics

Insolvency by definition occurs when firms are "unable to meet their financial
obligations" (Bruns Jr, 1999, p.1-57). Research has identified major causes of
a significant number of failures as a lack of business/management skill (Perry
& Pendleton, 1990, p.8).
This research focuses on project management skill and competencies
required to prevent insolvency.

Attributes of failed project management due to a lack of appropriate
management competencies, aldermans thesis on failure processes of small
business (1995, p 132), suggests business failure is a process covering
apparent and/or underlying causes. Failed project reveal many causes for
insolvency including lack of funds, bad management or bad luck.

Whilst many reasons can be given for failure in business, the majority of
studies into project management failure, report that difficulties of small
business generally return to the same basic cause: blind spots in
business/management competence by project holders/managers (Posner,
1993, p.102).
Major causes of the project failure
70
60
lack of management skill
50
40
financial mismanagement
30
management incompetence
20
poorly kept records
10
sales/marketing problems
0


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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


Perry & Pendleton (1990, p.8) also cite research by Professor Alan Williams
(1986), who suggests major causes of insolvency in more detail are: lack of
management skill (61%) financial mismanagement (32%), management
incompetence (15%), poorly kept records (12%) and sales/marketing
problems (11%). Williams (1986) asserts, overall 60.5% of insolvent owners
questioned in his study, included in addition to other reasons for insolvency, ,,a
lack of business/management experience and skill.

Therefore it may be suggested that a significant percentage of project
management insolvencies may have been averted had owner/managers
known which business and management skills were required in advance of
commencing business, or before a challenge became a crisis (Perry &
Pendleton, 1990, p.8).

The owner/managers of that project did not have the management skill to
perceive the management blind spots within the internal activity structure of
their projects, required to control their projects.

Watson and Everett (1999, p 4-5), concluded, that failure can be the result of
one or a number of factors: bankruptcy, discontinuance of ownership for any
reason with business ceasing to operate, and ,,failure to make a go of it.
However causes are overwhelmingly due to poor management (Carland &
Carland, 1990, p. 29).






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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.3 -National Project Management competency standards

The Crawford et al (1979), Ralph (1982) and Williams (1984) Reports, are
examples of government enquiries concluding project management
competencies were ,,embryonic, ,,inadequate and ,,generally resulted in
business failure.

If this suggested link between failure of enterprises and lack of management
competencies exists, the need for development and education in project
engineer/ manager competency standards becomes apparent.

Field and Ford (1995, p. 4) cite Peter Drucker: ,,Knowledge is the only
meaningful resource today and is fast being recognized as the primary
resource for many of todays enterprises Organizations constantly increase
knowledge, learn new ideas and address educational needs (Field & Ford,
1995, p.95).

This is due to reduced time frames, international marketplaces, speed that
current knowledge becomes obsolete and a need for integrated approaches to
new business challenges.

The international research into business services since 1980s and
investigation in 1999 of management competencies was instructed to identify
management competencies required by firms in the private sector and provide
relevant business service education and development opportunities for
owner/managers through management competency courses.


73

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

As the lead agency for business service education and development, role was
to ensure the skill of project holders/managers invested in valuable education
and development by preparing suitable learning packages that were of a high
quality, beneficial, interesting and cost-effective.

Holmes and Butler (1995) identified an area of concern regarding the
attraction of courses to project engineer/managers.

The research found a reluctance of many project engineer/managers to avail
themselves of education opportunities, as surveyed project engineer
owner/managers saw structured courses as ,,irrelevant and consequently only
a small number participated. However the Holmes and Butler research (1995)
concluded that ,,management education increased chances of remaining
solvent for small enterprises and the ,,higher their education qualifications, the
more likely operators were to seek education and train their staff (Holmes &
Butler, 1995, p.287).

The programs were prepared during the early 2000s, offering courses that
were to a recognized educational level in line to achieve national
implementation. The aim was to have a national wide qualification, recognized
by both managers and enterprises.









74

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.3.1 Project Management competencies

Surveys of insolvent firms showed that the apparent cause of 64% of
bankruptcies was lack of adequate management skill (Crawford et al., 1979,
section 7.37).
In the course of its research, Crawford et als Study Group (1979) on
,,Structural Adjustment became aware of concerns regarding quality of
management practice in national industry.

Crawfords Group concluded that management standards should be raised
through ,,a comprehensive program of management education that should be
available to all areas of management (Crawford et al., 1979, section 7.37). In
addition it recommended that the Tertiary Education Commission (currently
TAFE), should report on progress in the field.

Meredith (1984) cites Alan Williams paper (1984), on establishment of small
business management education centres, where Williams agrees with the
Gibb report (1981), referring to Small Business Education and Training
(SBET) study of 1980, which concluded that ,,a large majority of the project
owner/managers are not oriented towards conventional education and
education programs.

In addition ,,management educators need to understand the process that
successful managers acquire and how to develop expertise (Meredith, 1984,
p.17).



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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

Williams asserts that these programs were ,,failing to attract projects
holder/managers with little skill or knowledge in even rudiments of starting-up
and running a solvent enterprise (Williams, 1984, p. 3).

In North America, competency standards were developed in 1982 by Richard
Boyatzis with the personal qualities/characteristics approach (Boyatzis,
1982a). During 1980s and 1990s, a number of European countries, such as
France, Sweden, Germany and Britain, developed their own competency
standards, each in line with each countrys unique approach to
business/management, which evolved from their countrys history and culture.

Key differences between European and North American aspects of
competency standards approach are the European ,,aspects of people that
enable them to be competent and North American ,,the job at which the
person is competent (Miller, 1998, p. 4).

Beddall Report, John Dawkins, Federal Minister for Employment, Education
and Training in Australia commissioned a study: ,,Australian Mission on
Management Skill (Dawkins, 1991) to research how project managements
,,enterprise and industry management education, education and development
could be further enhanced.

In 1991 the report, subsequently known as the ,,Dawkins Report, was
presented where it discussed ,,enhancing management education through a
national strategy (Miller, 1998).

Dawkins examined international management education in countries such as
Germany, Japan, United States of America and Britain. This pointed a way
Australian management courses for project managements could ,,improve

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

performance in areas of management development and thus compete
successfully within international environments (Dawkins, 1991, p. 3).
Findings of the ,,Dawkins Report, pointed to the need to establish competency
standards.

Dawkins Report recognized a key factor in successful economies as a
,,commitment to a high level of management skill within the workforce. In
addition, it was noted that where there was ,,cooperation between business,
industry, unions, education providers and government, opportunities and
outcomes were optimized (Dawkins, 1991).

Midgley (1995, p.35) concluded in his paper on the need for leadership and
management skill, ,,Managers receive low levels of education where business
knowledge is increasingly the key to competitive success.

The Department of Employment Education and Training (DEET) established a
national skill curriculum in 1995 and in the same year a report from Karpin
called for ,,promotion of management competencies at all levels in commerce
(Miller, 1998, p. 2).

In the conclusion of an analysis into surveys regarding education needs for
project management sector, Holmes and Butler (1995, p. 274), identified
,,forms of education preferred by project engineer/managers are at variance
with conventional approaches.






77

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.3.2- Competency conversion into education programs

Competencies are the application of knowledge, experience and skills (Field &
Ford, 1995, p. 100), being investigated in this research.

Competency standards are understood to be the level of knowledge,
experience and skill required to be proficient in the workplace.

Training packages are a grouping together of competencies into units of
education components designed to assist in achieving proficiencies for a
specific industry or industry sector. Units of these components are then
combined to form recognized qualifications as awards through certificates to
degrees.

Key features of the National Training Framework are a staged development of
nationally endorsed education packages developed to deliver workplace
competency programs for a particular industry or industry function and result
in nationally recognized.

Throughout the 1990s to 2003, other providers comprising public, private,
association and industry specific, supplied competency education packages
available.

Newly developed Training Packages for Business Services Sector, having
absorbed Administration Training Package and the Frontline Management
Initiative, contain specific competencies, derived from a number of sources
including (BST Package, 2002b):


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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

1. Existing business services competencies
2. Competencies from other packages, either with/without adaptation
3. New competencies that have yet to be developed or obtain a national
competency standard.

Although initially adaptations of original competencies were undertaken
priorities for management courses were a consequence of the above criteria
and projected client demand to convert a group of competencies into a course
unit, elements of each course unit contain four components (BSTA, 1999,
Para. 2.1.3.1):

Task skill
Task management skill
Contingency management skill
Job/role environment skill

Standard unit format covers various issues, for example a descriptor that links
a relationship with another unit and performance criteria that describes the
required outcomes for each level.

Each unit of competency education considers evidence to indicate outcomes
of the course and provide a clear link to other requirements such as levels of
literacy (BSTA, 1999, Para 2.1.4.6).







79

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.3.3- Application of competencies to management education and
development

Prior to preparing education programs, BSTA surveyed providers of support
material, accessible course providers of existing programs and potential users
of proposed programs.

In the third interim report, relating to the projects stage findings indicated a
significant shortage of resources for identified courses.
This resulted in quality deficiencies and relevance of available program
materials (BSTA, 2002c, p 42).
BSTA investigated gaps in education in 2002 to establish necessary
education and support materials required (BSTA, 2002b, p.13). To achieve
this, BSTA has worked with Industry Training Advisory Boards and initially
most material was industry specific.

The BSTA team identified where support material was available and where
recommendations to ANTA regarding the development of support material
should be priorities (BSTA, 2002b, p.5).

All reports recognized the importance of project management studies for the
economy.
The reports pointed out the apparent inadequacy of management education
and development available at all levels of management, from the project
engineer of any projects to CEOs of corporations.

Since the publication in 1971 of the Wiltshire report, all the major companies
have been trying to encourage the use of business and management

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

competency
programs
administered
through
Recognized
Training
Organizations for all levels of management.
As a direct result of reports by (Cyert Report, 1970, Wiltshire Committee,
1971, Beddall, 1990, Karpin, 1995), major companies supported programs
such as ANTA, interpreted the requirements and developed pedagogic,
generic one size fits all business programs.
These were prepared as a means to increase knowledge and skill of projects
owners with the intention of reducing insolvency






















81

Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management


3.4- Management education requirement:

As established ANTA in 1994 to provide a national focus using VET
qualifications, to enhance management education courses for the workplace
through every aspect of business from pre-employment awareness to work
practices and responsibilities of company directors (ANTA, 2001d, p.1)

The mission was to ensure ,,skill of the labour force were sufficient to have
internationally competitive commerce and industry to accomplish this, A
Bridge to the Future: National
Strategy for VET to 2003 was written, instituting five objectives (ANTA,
2001d).

1. Equipping managers for the world of work
2. Enhancing mobility in labour market
3. Achieving equitable outcomes in vocational education and education
4. Increasing investment in education
5. Maximizing value of public education and education expenditure.

There are currently over two thousand Registered Training Organizations
(RTOs) offering courses using packages of management competency
programs, for all entities from micro enterprises, through project management,
to corporations

The RTOs include traditional management education organizations such as
universities, adult education centres and private management education
schools such as the Institute of Business Management; Russo Institute of
Technology and Frontline Management Institute. Registered providers also

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Ghadeer Rashid Al Wahaibi
ID: UD4431BMN10017
Subject: Project Management

include many state schools and associations such as Australian Institute of
Environmental Health; Construction Industry Training and Employment
Association; Chambers of Commerce from every State and Territory;
National Insurance Brokers Association and the YMCA Institute of Education
and Training

Small business management courses available are accessible through both
government and non-government institutions, and general courses gained in
one industry may be transferable for use in a project management. It was
evidence of poor quality implementation of education. A review considers
integrity of courses and the VET system could be questioned regarding this
issue (ANTA, 2002a, p.4).

Many industry bodies offer or insist in education through organizations
Finally, all the above and hundreds more are registered business service
providers to their students, clients, members or staff.

The diversity of providers indicates a desire for management knowledge, skill
and experience opportunities. Through these providers, individuals can gain
from hundreds of business/management skill education programs offered by
business services education packages.









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Subject: Project Management


3.4.1- Management competency

Management competency educational programs relating to standards as at
2002, consist of packages composed of units designed to assist in achieving
competencies for a specific industry or section of industry, such as frontline
management

In early 1990s, a number of management programs. Evaluated available
programs against current requirements of that time, the size of its task and
has instituted a continuous improvement process to ensure that education
packages are seen by the National Association of Workplace Training (AWT)
as ,,relevant, current and appropriate in industry requirements and education
qualifications (NAWT, 2002, p.1)

Prior to commencing Phase 1 ,,Businesses Services Training Package, there
were 310 recognized competency units, which gave rise to 37 qualifications.
As at 5 July 2002, this was revised under Phase 1 to include other disciplines
such as legal services and frontline management. These disciplines added 91
units and resulted in changes and amalgamation that gave a total of 369 units
of competency endorsed
Whilst ,,continuous improvement is the key to growth the Packages were
organized around "Fields" and "Domains".
"Fields" are defined as ,,broad areas of activity carried out within the coverage
areas. "Domains" are ,,discrete areas of activity within each field. Fields
include common business, business administration, information and
management services, human resource management, business development
and e-business Continuous improvement developed programs, where "Fields"
used in the first phase development program, were refined from the original

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Subject: Project Management


3.5- Support for education-competency development

Normally the project management have shown an interest in project
managements development through reports, longitudinal studies and ongoing
data collection by organizations such as national and State management
education authorities working through RTO organizations, have prepared
programs designed to assist project management and engineer to develop
competencies to reduce the percentage of enterprise failures.

Since the 1980s and 1990s when the number of projects began to grow
substantially established projects management education facilities. In 1996
DEETYA prepared a report on small business development (DEETYA, 1998)
and in 1998 DETYA introduced a Small Business Professional Development
program (SBPD) (DETYA, 1998).

In addition to that most of major companies began to promote the concept of
sustainable development within project management through a business skill
development program. This program was introduced and strategic plan was to
work closely with small businesses to strengthen the economy.

Both privet sector and governments have been interested in developing
competence of projects management skill for over three decades, as they are
cognizant of the significance to the economy that projects represent. In
addition, as large corporations continue to shed staff and redundant
employees establish in these projects we are finding the privet sector and
governments appreciate importance to their economies of new entities
remaining solvent


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Subject: Project Management


3.5.1- Specific to required competencies

Not all the needs of projects owner/managers were met by the outcomes of
research referred to above, in the structured and accredited, management
education courses understood a ,,one size fits all approach to project
engineer/managers would be counter-productive and alternative approaches
could be appropriate.

For that reasons some countries introduced a Small Business Professional
Development Best Practice Program to management education course
regimes for project management and each organization found its own method
of implementing these policies and continuous progress is currently
encouraged with a focus on management competencies over a wide range of
activities.

The concept of continuous improvement was correct and that it should evolve
in Conjunction with operators themselves Strategic Plan, with programs to
provide project management with easier access to required information,
department advice and comprehensive support, so the project
holder/managers are given an opportunity to develop business skill at
structured workshops developed to focus on specific elements of business,
including customer maintenance, competitive advantage and cash flow
management. In addition areas of formal management competency education
are available





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Subject: Project Management


3.6- chapter 3 Conclusion

The government and privet sector have aimed to assist the project
management through education programs and seminars, yet reports such as
Meredith (1984) Williams (1984) and Holmes and Butler (1995), agreed that
projects owners appeared to reject conventional education courses or skill
development programs, project management that reject the conventional
programs continue to use private enterprise courses, or numerous
independent consultants with varying levels of competence, none of which link
to the government programs.

This research therefore will investigate not only competencies and linked
education provided but also a number of those institutions offering alternative
services.

The literature review following in encompasses in detail, literature available to
cover all aspects of competencies, government sponsored reports,
management education courses and management skill development.
Literature relating to education includes all aspects of project management
education from conventional government courses to group and individual
consultant mentoring.








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ID: UD4431BMN10017
Subject: Project Management

Chapter 4

Organisational culture and behaviours

4.1- introduction
The root of organisational culture is in anthropology, focusing on human
behavioural norms, values and beliefs at every level of society (Cheong,
2000).

Every organisation has a culture, defined as ,,the way in which that particular
organisation is seen by its members to be unique (Robbins et al., 1998, p.
562).
Organisational culture is also defined as: The set of values, beliefs,
behaviours, customs and attitudes that help an organizations members
understand what that organisation stands for, how things are done and what is
considered important by the organisation (Griffin, 1999, p. 168).

Owner/managers, who understand organisational culture, take appropriate
action, with support of their personnel, because organisational culture guides
and directs the manner in which internal activities are undertaken (Robbins et
al., 1998).

As an enterprise grows, the owner/managers job description and the
organisational structure of the enterprise should evolve, affecting both
management of an organisation and culture (Gerber, 1995).

Simultaneously, responsibility of owners change and seeking suitable
management education is beneficial to keep momentum of the organisation
moving (Schlutz, 1995).

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ID: UD4431BMN10017
Subject: Project Management

Culture, ,,norms and shared attitudes that pervade an organisation (Pass et
al., 2002, p119) remain constant whilst functional arrangements within might
change, for example incorporating application of new technology, with
contemporary organisational structures, procedures and authorities (Robbins
et al., 1998), may change operating systems but not the culture.

Study of organisational culture further developed managerial understanding
and increasing awareness regarding the internal workings of enterprises.
Organisational behaviour is based on relationships between individuals in
organisations with a particular interest in manager/subordinate relationships
(Robbins et al., 1998). An editorial in Management Today (1999, p. 8) argued
that ,,managers should be analysing relationships between managers and their
team, because that is where collaboration is taking place.

Study of organisational behaviour is defined as ,,studying human behaviour,
attitudes and performance in organisations (Hellriegel et al., 1995, p.5).
These studies are carried out to find consequences of management actions
and behaviour on organisations. Motivation is defined as ,,forces that arouse
enthusiasm and persistence to pursue a certain course of action (Daft, 1997,
p.526), which achieve common goals.

Study of organisational behaviour developed during 20th century, when
Maslow and McGregor introduced theories suggesting employee satisfaction
as key to productivity (Griffin, 1999, p.46).

Rather than structural theories turning employees into machines, McGregor
(1966) supposed that organisational behaviour of trust and teamwork could be
supported and developed the polemic Theory X and Theory Y, whilst Ouchi

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ID: UD4431BMN10017
Subject: Project Management

(1981) took this further in developing Theory Z (Daft, 1997), linking eastern
and western management/staff communication philosophies.
Maslows hierarchy of needs to understand workforce motivation (1970), i.e.
psychological, safety, social, esteem and self-actualisation, may be used to
recognise the culture of a workforce within an enterprise (Kotler, 1997). The
entitys culture embodied in management procedures, will determine how the
whole workforce is managed.

It is not possible to effectively manage people unless you have some
basic understanding of what makes them tick, such as their motivation,
team skill and leadership skill (Lysons, 1999, p.3).

Work has a different meaning for different groups of people. McGregor
examined what he called the ,,Hard or Soft Approach to management (1966,
p.42). McGregor suggested that ,,hard approach management involved
coercion and threat, resulting in antagonism and subtle but effective sabotage
of management activities.

Alternatively, ,,soft approach management focused on satisfying demands and
achieving harmony, leading to abdication of management and taking
advantage of the stance by staff. Effective management would have to lie
somewhere between these two approaches (Robbins et al., 1998).

Study of organisations developed, and shows that as the 21s t century came
closer, management and staff became multi-skilled and more flexible in their
work practices, to accept continuous change and development within their
industry and the global economy (Robbins et al., 1998, p.18).



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Subject: Project Management


4.1.1 - Project Management background

Most texts on small business start-ups or entrepreneurship list personal
characteristics which they consider beneficial when initiating the start-up of a
business (such as Newell, 1985, Hodgetts & Kuratko, 1989, Carland &
Carland, 1990, Kyambalesa, 1994, English, 1998, and Trench & Judge, 2002)
Identifying specific characteristics in the make up of the ,,definitively successful
entrepreneur is difficult as they are so varied (Carland & Carland, 1990, p.26).

The projects management come from diverse cultures, estimated
owner/managers a percentage that was growing at the rate of about 2% per
year, in the States and Territories of Australia, Western Australia reported
37% of owner operators born overseas, New South Wales and Northern
Territories both 33%. The lowest proportion of overseas-born operators was
recorded in Tasmania with 18% of all entrepreneurs.

4.2- Parental influence
Research by Carland and Carland (1990, p.26) found that children of parents
who owned their own business, were more likely to start a business and were
encouraged to do so by parents. The same research indicates that progeny of
non-business oriented parents are less likely to be encouraged to start an
enterprise

4.2.1- Career change
Individuals dissatisfied with their work, who have been made redundant or had
ideas that were ignored and want to test them, are likely to start their own
enterprises where they have support from family, friends and often help from a

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ID: UD4431BMN10017
Subject: Project Management

mentor (Carland & Carland, 1990, and English, 1998). 3.4.1 Exogenous
failure for project:

Exogenous variables are outside direct control of project owner/managers.
Exogenous factors are opportunities or threats that include elements or
groups such as local and federal taxes, foreign government tariffs, changing
raw materials prices, competitors and customer demand.
Autonomous forces noted by the exogenous environment in significantly affect
organisations and management practice.

They affect entities and their ability to change over time. These forces have a
positive or negative impact on business and include activities of competitors in
markets, fundamental changes within markets, and the abilities of
management and staff to control actions of enterprises (Day, 1991, p.111).
Enterprises are expected to facilitate learning ,,consciously transforming
themselves and their context (Pedler et al., 1997, p.3)

The task of project owner/managers is to detect forces as early as possible
and interpret their consequences (Porter, 1985). Also how they may affect
business (Thompson & Strickland III, 1999), and prevent them becomes blind
spots.









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ID: UD4431BMN10017
Subject: Project Management

4.2.2- Political / Legal forces
Relationships between business and government in regard to regulations and
legal requirements constantly change, and project owner/managers are
required to keep up to date (Griffin, 1999, p.77), in order to have sufficient
data to continue trading.
Three reasons for this are, first the legal system defines environment in which
firms can work. Second government activity can affect all businesses through
consequences of legislation or government activity, such as interest rate or
taxation changes (Griffin, 1999, p.78).
Finally, political pressure groups could be advantageous as they focus on an
agenda. For example environmental or tobacco lobbyists could
increase/decrease trade and it is up to project management to take advantage
of these opportunities and be aware of threats

4.2.3- Economic factors
Knowledge of consumer purchasing power, unemployment rates and bank
interest rates are all useful areas of information for successful project
owner/managers to recognize
There are benefits from having cognizance of important economic factors
such as national or regional economic growth, inflation, changes in bank
policies and the effect on consumer market numbers and their spending
activities.
This knowledge is useful in order to be in a position for the project
owner/manager to take advantage of a situation that is favorable to entities
when it becomes appropriate.
These exogenous factors are all important indicators for project owners to
help them be aware of market activity and pro-active in decisions as opposed
to reactive to trends.


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ID: UD4431BMN10017
Subject: Project Management


4.2.4- Social/competitive forces

Markets modify through changes in demand, growth in technology, or
developments within industry. SE owner/managers are expected to be in a
position to take advantage of the market environment (Timmons, 1999) as a
part of their action to remain solvent.

Project owners are aware of dimensions relating to characteristics of their
market place, consisting of geographical distribution and population density
together with socio-economic mix of market places Michael Porter (1985),
contends that exogenous competitive advantage is the heart of a firms
performance in the market place.

,,It is at the core of success or failure for firms. The five forces affecting
competitors are seen as: the entry of new competitors, a threat of substitutes,
bargaining power of buyers and bargaining power of suppliers, then finally
rivalry between firms
Porter argues that these five forces influence prices and costs. These are
exogenous forces within the market environment yet through monitoring
closely, they may be used advantageously (Porter, 1990).









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ID: UD4431BMN10017
Subject: Project Management


4.3- Industry forces

Project owner/managers benefit from being aware of industry driving forces,
which are the major underlying influences of change, as this gives them an
opportunity to make or plan positive discussions based on knowledge, these
forces relate to changes such as trends, product innovation, entry or exit of
major companies and changes in government regulations (Thompson &
Strickland III, 1999, pp85-90).

4.3.1- Endogenous factors

Endogenous factors are internal strengths and weaknesses that relate to
structure and culture as resources of the entity, such as knowledge, raw
materials and labour (Kuratko & Hodgetts, 2001).

These strengths and weaknesses are components of the entity, Hodgetts and
Kuratko (1989, p.31) identified the following elements as beneficial to help
enterprises remain solvent: existence of a business opportunity, a sufficiency
of businesses/management competency-skill, adequate capital and credit,
finally knowledge of current business methods.

Crucial endogenous factors examined in this section, are competencies
possessed by owner/managers and organisations affecting current operations
and the level of ability to foresee future changes required to equal or exceed
that of competitors (Turner & Michael, 1992, p.2).




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Subject: Project Management


4.3.2- Business opportunity

Endogenous factors of project management entities commence with a
verifiable business opportunity, defined as something that is ,,attractive, timely
and durable, in a product or service that creates or adds value for its buyer or
end user (Timmons, 1999, p.80).
To assess what customers will purchase, active project owner/managers
regularly monitor the market environment (Kotler, 1997, p.109). This results in
information, which may be evaluated to assess opportunities and target the
market profitably.

4.3.3- Adequate capital and credit
Adequate funding available to meet financial obligations means it is easier for
an entity to trade slovenly (Kay, 1952, Newell, 1985, Kyambalesa, 1994, and
English, 1998). For a greater opportunity to achieve this, complete financial
plans with realistic cash flows prepare owners for future financial situations
(Hodgetts & Kuratko, 1989, p.36).
Business entities have financial strategies incorporated in business plans as a
means of setting goals and strategies to achieve objectives (Langfield-Smith
et al., 1997, p.905). Part of organizing capital and credit is taking strategic
decisions. These decisions are fundamental within business and financial
plans to consider amounts of funding required, ensuring sufficient capital is
available and credit facilities accessible from suppliers to meet all financial
obligations (Hodgetts & Kuratko, 1989, p.35).
Established business entities have an advantage over new firms (Bridge et al.,
1998, p.153), for as firms remain solvent longer, so financial credibility grows
and a process of ,,due diligence offers better credit facilities to firms with a
longer record of solvency.

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Subject: Project Management


4.3.4- Businesses/management competencies

Research by English (1998, p.6) reports business/management competencies
fall into three categories: marketing, finance and operations covers the
competencies from which project owner/managers would benefit, if acquired
before commencing business, or assessing what skill are lacking and address
this situation as soon as possible (English, 1998, p.7).

This may be through personally attending management education courses or
employment of suitable personnel either permanently or as required, writing a
complete business plan offers the opportunity to cover all the points in before
establishing an entity.

Thus initial exogenous and endogenous structural and financial organization,
marketing, site location, customer requirements, competitive forces and
market size can all be considered with proper planning (Carland & Carland,
1990, p.31). This exercise is an opportunity of working through all aspects of
organizing and operating a project management (English, 1998, p.136).

The importance of a plan cannot be overemphasized, for time taken to think
through a business is of prime importance (Busch, 1997, p.3). In his paper on
relationships between written business plans and failure, Perry (2001b, p.201)
concluded proportionately more firms writing business plans remained
solvent, than those that did not. He found the extent a business plan was
used, had significant effect on company solvency. Perrys findings were ,,not
using a written business plan had a significant influence on the probability of
enterprise failure.


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ID: UD4431BMN10017
Subject: Project Management


4.3.5- Project management owner personalities

Research carried out over many years has determined that due to external
autonomous actions such as market or competitive activity and other
extraneous activities beyond the control of management, specific personal
characteristics that result in assured solvency for a project enigineering
operator, has not been empirically proven.

However, it is suggested that some personal characteristics increase the
chance of an entity succeeding more than others (English, 1998, p.5).
Solvency requires a well-rounded competency in management, financial and
operational skill as well as technical understanding (English, 1998, p.5). This
combination plus a thirst to increase knowledge, benefits of project owners in
their quest for survival and success (Gerber, 1995).

A number of studies (Marshall, 1996, Vernon, 1997, Koch, 1999, Trench &
Judge, 2002) have established that specific personal characteristics are
consistent for entrepreneurs having a greater chance of business success.
Whilst over 40 traits have been suggested,

Internal locus of control Daft (1997) advocated the internal locus of control
(belief in self) displayed by an entrepreneur, was an important determinant to
success or failure. Motivational and personal success researchers, such as
McClelland (1976), Lumsden (1984), Newell (1985), Hardy (1987), Roberts
(1989), Robbins (1992), Chu (1992), Harvey-Jones (1994), Gerber (1995),
Krause (2002), claim that belief in personal future accomplishment is central
to success.


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ID: UD4431BMN10017
Subject: Project Management


4.4- High energy level

A high energy level and persistent energy is required for successful
entrepreneurs to cope with stress, frustration and disappointment faced in
business (Day, 1991, p.8), (International Council for Small Business,1995),
(Fleck, 1999), (McGrath & MacMillan, 2000).

Need to achieve Harvard psychologist David McClelland (1976) demonstrated
a primary factor in deciding to start up an enterprise is personal need for
achievement. As conditions in projects are constantly changing and
unpredictable, project management operators that tend to be ,,risk averters
are able to make consistent decisions (Kyambalesa, 1994, p160).

4.4.1-Tolerance of ambiguity

This psychological characteristic prevents disorder and uncertainty being an
overwhelming concern. The importance of this trait is that setting up a new
entity is rarely straightforward and normally has a certain level of unknown
factors linked to the enterprise that have a degree of risk and uncertainty
incorporated within the entity (Daft, 1997, p.182).

4.4.2- Self-confidence

The knowledge of managerial functions such as planning, organizing,
leadership and control, and technical expertise offers a degree of confidence
to start an enterprise. Knowledge is usually gained through a combination of
education and experience (Carland & Carland, 1990, p.31)


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Subject: Project Management




4.4.2.1- Awareness of passing time

Business activities take time and therefore should be planned and
implemented to enable all sectors of an enterprise to be functional. How the
projects owner/manager uses time can determine level of success
(Kyambalesa, 1994, p170).

Researchers consider a combination of the above characteristics beneficial to
start-up entrepreneurs (Daft, 1997).
Concerns regarding specific empirical constructs of these characteristics are
due to permutations of project owner demographics

A range of project owner/managers characteristics have a bearing on the level
of an enterprises success (Daft, 1997).
The general conclusion of studies is that whilst some qualitative researchers
such as McClelland (1976), Lumsden (1984), Newell (1985), Hardy (1987),
Roberts (1989), Robbins (1992), Chu (1992), Harvey-Jones (1994), Gerber
(1995), Krause (2002) determine that personal characteristics are significant,
quantitative researchers such as Perry, Meredith and Cunningham (1988)
consider that the statistical data of specific personal characteristics, show little
or no direct bearing on either success or failure of an project enterprise.

The entrepreneur is defined by Kuratko and Hodgetts (2001) as a catalyst for
change, optimistic, committed and purposeful with certain abilities that appear
significant regarding project management operator success. These are
technical competence, relevant education, human relations skill, and a high

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Subject: Project Management

drive to learn and achieve (Hodgetts & Kuratko, 1989, p.43). Therefore,
people who are exceptionally good in business arent so because of who they
are, where they come from or what they know, but because of their insatiable
need to know more.

Following from the reviews studies into project failure, which became a
significant area of research due to the growing role of project management
within the companies economy (Watson & Everett, 1992, p.335),

Reports proportions of business failure have increased considerably, which
conclude the first section of this review, indicating entrepreneurial knowledge
development would be beneficial to continued solvency


















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Subject: Project Management


4.5- Entrepreneurial business and management development:

Cole and Ulrich (1987) report that successful entrepreneurs have a high need
for success and internal locus of control whilst Kuratko and Hodgetts (2001,
p.30) point out that entrepreneurs are ,,agents for change; provide creative,
innovative ideas for businesses and help businesses to grow and prosper.
Bridge, ONeil and Cromie (1998) explain that experience, observation,
conceptualisation and experimentation are competencies required for problem
finding and solving, required for developing project management knowledge.

An article in the Journal of Management Development (Grieves, 2000, p346)
noted that three central issues of management were and remains the essence
of successful management focus, those of control, application of technology
and organisational managerial competence.

One problem for the failure of some useful management programs such as,
the use of business plans, Total Quality Management (TQM) and Quality
Assurance (QA), is that these programs require a commitment to continuous
improvement and are not a panacea in them (Grieves, 2000, p371).

To use business plans, TQM or QA systems, project owner/managers are
expected to continuously question their actions and to increase their relevant
knowledge base. For a benchmark test of action, Bhide (1996) developed a
three stage sequence action question guide to focus on chosen business
activities the questions included: "Are goals well defined?", secondly, "Is
strategy correct?"


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Subject: Project Management

Finally, "Can the owner execute this strategy?" the framework, clarifies the
owners current goal position, then the strategies are evaluated and finally an
assessment is made of capacity to execute the strategies (Bhide, 1996, p.5).
At any point, action taken depends on answers to questions being ,,yes or
,,no.

The hallmark of a successful project owner is a never-ending desire to learn
and improve (Gerber, 1995, Isachsen, 1996, and Drucker, 1998).
Project owners know that true goal setting requires reaching for an objective
that is never quite within their reach (Isachsen, 1996).

To think in this manner Ohmae (1982, p4) writes that a particular state of mind
which he calls the ,,mind of the strategist is required. Twenty-first century
strategies for project owner/managers were outlined by Kanter (1994) where
entities were seen to ,,think long- term but deliver today. To achieve this,
Kanter (1994, p.130) suggests project owner/managers are to be flexible,
reduce bureaucracy and act in an entrepreneurial fashion.













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Subject: Project Management


4.5.1- Knowledge of business methods

Product knowledge alone is not sufficient to commence trading. There are
many areas of business to control and organize. Project owner/managers are
required to deal with sales, stock management, accounts, production, delivery
and cash flow.

Business management systems used by firms of all sizes, are implemented in
order to strengthen the entity with systems such as TQM or QA (Kuratko &
Hodgetts, 2001). These are people-focused management systems aimed at
continuously increasing customer service and owner/manager competence.
The aim of both these systems is to achieve desired results through
elimination of unnecessary repetition, by ,,doing it right the first time (Kuratko
& Hodgetts, 2001).

The aim is to produce defective-free products or services and save the
preventable expense of correcting mistakes, for business management
systems are based on the importance of people thinking about product, firm,
customer and themselves (Kuratko & Hodgetts, 2001).










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Subject: Project Management


4.5.2- Project management competencies:

Influence on projects solvency competencies project owner/managers must
adapt to changes when required, for it is a lack of general and personal
competence and an inability to adapt as situations require, that is a principal
cause of insolvency (Banfield et al., 1996, p.94).

Competence is defined by Turner and Michael (1992, p.4) as ,,a combination
of traits, skill, motivations, knowledge and focus which results in a
performance outcome.
Thus competencies are ,,elements of the ability to perform (Cave & McKeown,
1993, p.3).

This is in contrast to the with their definition of competencies, which is more
appropriate to employees than employers, being ,,an application of specific
knowledge and skill to a standard required in a workplace, where
competencies include ,,cleaning a kennel or ,,notification for not turning up for
work
Organization development has evolved over the 20th century and deduced
that for change to happen, it is necessary to examine present behaviour and
find alternative ways to deal with new problems (Beckhard, 1969, p.16).
Many government reports, such as Cyert (1970), Crawford (1979), Ralph
(1982) and Karpin (1995) suggested establishment of accessible
management education to teach competency skill. Crawford (1979),
recommended that ,,the Tertiary Education Committee should report from time
to time on progress one being the Meredith Report (1984). Meredith
suggested a need for further project owner/manager education and agreed
with the Bolton Report (1971).

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Subject: Project Management

The Bolton Report highlighted the ,,dichotomy between need and demand by
project/managers, for management education courses (Banfield et al., 1996,
p.94).
From 1971 to 2003, privet and governments have taken a stand to assist
project by establishing educational programs through departments.
The influential factors discussed that affect abilities of project owner/managers
to operate an entity and make Significant changes to operations of
enterprises. As business situations develop and change, a set or range of
competencies may be appropriate for current purposes, yet a different set or
range may be required a decade later (Turner & Michael, 1992). This is similar
to the ,,Theory of Business concept of Drucker (1994) competencies apply to
combinations of skill that give a company a competitive advantage (Turner &
Michael, 1992), such as competencies required for a competitive edge in
planning, organizing or human relations

4.6- chapter 4 Summary
Given the significance as demonstrated by previous researchers of knowledge
and management competencies acquired by entrepreneurs from the
workplace Management research into project management entrepreneurial
competencies, developed to offer a broad and deep understanding of
organisations and how they operate (Daft, 1997). Further research
demonstrated that management education for project owner/managers to
address the lack of management competence is essential to address tens of
thousands of entities exiting the economic pool each year (Robbins et al.,
1998).
The elements of business influence both exogenous and endogenous that
affect solvency, indicating the need for management education increases as
the number of entities increase and the percentage of exits increase
Management skill requirements (Source English J, 1998, How to Organize

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Subject: Project Management

and Operate a Small Business 7th Edition Allen & Unwin Sydney page: 6-7

Financial competencies

Balance sheet analysis
Advertising and promotion
Bookkeeping
Competitor evaluation
Business planning
Distribution channels
Cost control
Marketing research and strategy
Debtor control
Personal selling
Payroll
Product life cycle
Profit planning
Purchase planning
Types of finance
Sales forecasting
Banking
Choice of business location
Budgeting
Credit terms
Cash flow management
Guarantees and service
Creditor control
Packaging and presentation
Finance application
Pricing and discounts
Profit & Loss analysis
Product positioning
Tax control & planning
Quality assurance
Use of financial professionals
Shop layout



Operating competencies

Business planning

Improving productivity

Plant & equipment control

Purchasing

Recruitment and selection

Scheduling and workflow

Stock control

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Transport and freight

Decision-making

Negotiations

Problem-solving

Quality control

Regulations and awards

Staff education

Supervising

Warehousing and storage
























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Chapter 5

5.1- General Project Management competencies:

Peter Drucker (1998, p.152) argued that in a fast-changing world, the
concepts of Taylors ,,one right way or a fixed set of management activities or
way of dealing with people were obsolete.
He stated the ,,social universe has no "natural laws" as physical sciences do
and thus is subject to continuous change.

Indeed assumptions that were valid, may be invalid now or will be in the
future (Drucker, 1998, p.153). Robbins et al (1998, p.8), cite Robert Katzs
assessment of essential business competences concurring with Drucker and
suggesting that these are central to positive performance of key management
tasks being, planning, organizing, leading and controlling.

Individuals that comprise an enterprise, determine its success through quality
and joint activity of combined competencies (Likert, 1967, p.1). Company
competencies, embedded in organizational characteristics, skill and
knowledge, are well-established in culture, behaviour and structure of the
enterprise and will persist over a period of time, to a greater or lesser extent
regardless of the personnel turnover (Turner & Michael, 1992).

The project owner/manager should possess, employ or contract out a
balanced competency structure covering all aspect of business (Timmons,
1999). Timmons proposed that management skill in a business affect the
manner in which an entrepreneur approaches and operates that business.

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Subject: Project Management

Caution is well founded, with changes happening daily, ,,what worked for a firm
yesterday, probably doesnt work today or will not in the future (Drucker,
1998).

The result of global competitive marketing, immediate global computer
communication, shorter product life together with knowledge and technical
explosion, a need for project management, to be able to change and
implement product or service as the market demands (Beckhard, 1969)
,,success in the marketplace increasingly depends on learning, yet most
people do not know how or what to learn (Argyris, 1997, p.148). To succeed,
a commitment of conscious action or learning was required to use and benefit
from the programs (Grieves, 2000, p.368).


















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Subject: Project Management

5.2- Project Management Process


Planning
Organizing
Control
Leadership
1-
Preparing, 1-
1-
Operational, 1- Understanding
Organizing and
Departmentalising financial,
and
implementing
and
structural and strategic directing people
business
coordinating
control
2
-Employee
plans
internal
2 -Control on going motivation
2- Formulation and structures
standard
and performance
implementation of 2- Organisational of product or service
3-
Control
of
business
strategy and
through
productivity influence and
strategy
design
and
power
3-Problem solving 3- Dealing with operations
4-
4
- organizational
management
Communication
Entrepreneurship
structure issues
3 -Managing internal and
4-
Human and
interpersonal ski ll
resource
external information
5- Working wit h
management
groups and teams
(Pedler, Burgoyne and Boydell 1997 p.23)

Every firm is unique and requires business, human and technical
competencies within the entity to remain solvent. These are found in the ability
of owner/managers, or within a business team. Competencies may be in-
house or outsourced, for example accounts, manufacturing and sales can all
be carried out in-house or by specialist companies; however skilful
management by project owner/managers, is still required to develop a
successful enterprise (Banfield et al., 1996).


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Subject: Project Management

Encompasses processes that develop a collective flow of management
(Pedler et al. 1997) and these processes link to form four fundamental
management functions of an enterprise: planning, organizing, leadership and
control (Griffin, 1999) Whilst logic of the flow follows the above sequence, in
practice the order of engagement of these tasks by managers is
unpredictable. Each component is discussed below.

5.3- Organizing

Organizing reflects how an enterprise endeavors to accomplish a planned
exercise (Daft, 1997, p.9). Thus to enact planning policy, tasks are assigned,
resources allocated and responsibilities awarded.

5.3.1- Planning

,,Planning defines where enterprises want to be in the future and how to get
there (Daft, 1997, p8) Perry (2001b, p.201) found that ,,non-failed firms did
more planning than similar failed firms and Perry cites Peter Drucker
,,Everything that is planned becomes immediate work and commitment.

5.3.2- Control

Monitoring progress towards goals and ensuring performance is achieved, is
the final phase of general management competency skill (Griffin, 1999, p.11).
This may be top-down management or self-management (Daft, 1997, p.12)
but at all times the project owner/manager control of an entity is aimed at
achieving their goals.

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Subject: Project Management

These goals are the entrepreneurs vision and the owner/manager cannot
achieve those goals where strategy, operational and/or management control
of the enterprise is abdicated (Gerber, 1995).

5.3.3- Leadership

Leadership is both the most important and challenging activity of managers
(Griffin, 1999, p.11). There are many definitions of leadership, leadership may
be defined as the ,,processes required toget people to work together towards a
common goal (Griffin, 1999, p.11), or ,,articulating visions, embodying values
and creating the environment within which things may be accomplished (Yukl,
1998, p.3).

Leadership in any project is the means by which events are interpreted and
the choice of objectives and strategies (Yukl, 1998, p.5) and in project
management skill required for an owner/manager are considered to be
technical, interpersonal, conceptual and administrative (Yukl, 1998, p.235).

5.4- Contribution of management competence in the project:

Personal characteristics, skill and knowledge will operate so long as that
person remains with the enterprise (Beckhard, 1969). For project
owner/managers, these include interpersonal competence, problem-solving
knowledge/skill, business planning/goal setting skill and understanding the
process and management of business change (Beckhard, 1969, p.41).

To carry out tasks annotated a number of fundamental managerial skills are
required to implement elements within management competency
requirements of planning, organizing, leadership and control. These

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Subject: Project Management

management skills are primary to success of enterprises (Griffin, 1999, p.18).
Whether an enterprise is large or small, internal organizational structures
remain constant and must not be abdicated (Gerber, 1995).

The difference between large and small entities reflects who carries out that
work. There may be a full department for each task or with a project
management; one person may perform all tasks. Whichever the situation,
these jobs must be undertaken at some level of competency (Griffin, 1999,
p.14).

5.4.1- Management skill

Interpersonal skill communicates and motivates people covering subordinates,
peers, higher management or professional bodies such as accountants,
solicitors and bank managers (Griffin, 1999, p.19) through effective
communication skill, an owner/manager conveys and informs ideas to others
(Daft, 1997, p.16).

5.4.2- Technical and Experience skill

Technical skill undertaken requires an understanding of tasks relevant to an
enterprise (Griffin, 1999, p.19). This specialized knowledge and analytical
abilities to solve problems, being practical skills, are required at higher
management decision levels (Daft, 1997, p.16).






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5.4.3 The benefit of Conceptual skill in project management:
The project owner/managers understand overall workings of enterprises. Daft
argues project owner/managers think strategically and decide as a result of
abstract thought (1997, p.15). The benefit their enterprises by analysing
problems and symptoms to determine cause and establish resolution (Griffin,
1999, p.20)

Recognizing and defining problems and selecting an appropriate course of
action to remove problems and capitalizes on opportunities is an important
skill to accomplish, and this important skill allows a manager to priorities work
for efficient work practices to be carried out (Griffin, 1999, p.20).

5.5- chapter 5 summery:

Project Management has a complex multidimensional job to ensure that
general management competency skills are performed within the enterprise.
This requires a combination of skill, knowledge and competencies to remain
solvent (Daft, 1997, p.15).

The four management functions require individual management
competencies, which are specific and deal with both exogenous and
endogenous aspects of the enterprise. These are dealt with the personal skill
are annotated and later in light of available government and non government
education available.

The organisations and personal competencies are incorporated, due to the
necessity of project management entities focusing on personal and
organisational development (Grieves, 2000, p.293).

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There is often confusion between competence, knowledge and skill, and it is
by comparison that a distinction is found. Whilst the project owner/manager
may have knowledge/skill, they may not be competent in the activity.
However, if an owner/manager is competent they can be expected to have
knowledge/skill (Cave & McKeown, 1993, p.2).

The combination of a competent workforce, skilfully managed and a positive
support climate, combines elements of required competencies and
management skill (Banfield et al., 1996), which determine a return on both
human and capital resources (Boyatzis, 1982b, p.1), and therefore managerial
competence is a primary component of success (Banfield et al., 1996, p.95).

The above literature has shown researchers agreement that both general and
specific personal competencies are necessary for project management. The
relevance and importance of business competencies to the project
management














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Chapter 6

6.1- Management competency and education

Inclusion of business competencies is justified, as project management
requires these competencies and skills, to deal with influences affecting the
enterprise. The following section introduces literature that identifies project
management education.

Learning is an ongoing process of gaining knowledge and experience, whilst
training is the flow of information from one to another (Field & Ford, 1995,
p.95
Learning comes from a combination of education, experience and knowledge
(Field & Ford, 1995, p96) teaching was originally androgenic, where it was
accepted that students were adults and should be respected as such
(Knowles, 1990, p.27).

Hebrew prophets used case methodology, describing situations in parable
form, exploring characteristics and solutions. Greek teachers taught through
Socratic dialogue, where leaders posed a question or dilemma for the group
to work together to find a solution, while Romans preferred a confrontational
method, where groups stated a position and then defended it.

Hundreds of years later, monks were taught to write by rote and since then
teachers have continued to educate through pedagogic indoctrination, stating
facts and using a methodology of continuous spaced repetition (Knowles,
1990, p.28).


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Subject: Project Management

As noted above, some theorists contend the majority of project
owner/managers are not enthusiastic about school-room conventional rote
pedagogic learning (Meredith, 1984, Dawkins, 1991, Christie, 1992, and
Williams, 1992).

Indeed when working with business mentors or executive coaches, using an
androgenic methodology, a process where project managements are able to
become aware of and evaluate their experience, their business competencies
are enhanced. The teacher in this instance is not the "guru", but a guide who
participates in the learning experience (Knowles, 1990, p.30). As per Holmes
and Butler. (1995), p. 282
Conventional approach
Entrepreneurial approach ery

Focus is on process of delivery
Focus in on content
Trainer dominated
Training
expert
hands
down

knowledge
Emphasis on ,,know that
Trainer as fellow learner/participant

Participants to receive knowledge Emphasis on ,,know how
passively
Sessions heavily programmed to Participants generate knowledge
needs Sessions
Learning objectives imposed
flexible and responsive
Mistakes looked down upon
Learning objectives negotiated
Emphasis on theory
Mistakes to be learned from
Subject/functional focus
Emphasis on practice

Ownership of learning by participant
Problem/multi-disciplinary focus


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6.2- How to improve the project management learning?

This can be achieved by many ways and the following are playing the main
role:

6.2.1- Self-help information dissemination

Project Management required to have advanced management skill for the
benefit of any project on a large scale as it was expensive and did not offer
sufficient value to the participants to make it worth their while to continue.

6.2.2- Adviser-assisted information

Entrepreneurs did not generally feel confident in using unknown advisors were
used. This resulted in a lack of interest in the concepts and the participants
felt that the content was not appropriate.

6.2.3- Education practitioner development.

Education providers were able to direct the project owner/managers to
suitable education programs for them and their staff in this program and
therefore this project had a positive response. This was only a short term trial
and it remains to be established if it will have long term effects, however it was
considered positive. In general, little interest was shown by project
management to co-operate and share experiences as they believed this could
compromise their unique methodology, therefore whilst this system may be
beneficial to certain types of business and entrepreneurs


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Subject: Project Management


6.2.4- Expert-driven general business management

The project owner/managers should be an aware of the gap in their skill
matrix, the conventional education method acceptable. However, it was
inflexible therefore project owner/managers with little interest in a formal
learning culture did not find this method appealing.

6.2.5- Business management

The consultancy had mixed results depending on the consultants
methodology to address the particular situation of the firm a consultant will
work on a particular problem, therefore the benefit is not always sustainable
as the environment changes and a new solution is then required.

Whilst this method is generally accepted as a reasonable method of
knowledge transference, it is not considered a route for any education as the
requirement is problem specific and not sufficiently generic to warrant placing
this type of learning in the educational context of general business
management co-operative general business management improvement of
mentoring by experienced businesses to under-performing firms, focused on
the ,,sharing of experiences, information and growth knowledge.

It received a positive response as less experienced project engineers were
open to specific pertinent advice and were not opposed to discussing their
firm with senior project engineer.




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Subject: Project Management

6.3- Improving on competencies

The competencies in any project management can be improved by making
major and substantial changes especially in financial basics, cash flow
forecasts against profit and loss statements, customer service and business
planning, which offered a generic business approach but do not deal with their
specific or individual in each situations.

These are generic to all of type of projects, and it was determined in the
survey for these studies, that as the knowledge were short and aimed at
offering pertinent information to project owner/managers at a time they were
open to receive the information, attending, perceived a quantifiable benefit for
their organizations.

In 2003, the companies are looking to find a course that can be assessed for
both content and beneficial results
In 2004 there are over 2,000 private companies offering a variety of services
and courses to cover curriculum relating particular subject maters. Some
within industries offer courses that train and direct their members of staff
focusing on problems and situations that may be unique to that industry or
institution.
These cover enterprises such as McDonalds or industry specific groups such
as construction associations or the armed forces education of engineers,
drivers or pilots in careers that may be used on the job or may be transferred
to other jobs.
There are also many firms or individuals that offer help and assistance to
project owner/managers on basis, such as accountants, business trainers,
financial advisors, bank managers or specialist business coaches system with
a significant impact on reducing the proportion of insolvencies.

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6.4- Chapter 6 Summery and review:

,,Doubt was cast on the key assumption of vocational education policy makers.
Indeed the assumption that formal conventional education will meet the
nations needs appears to disregard the views of project management as a
result; the Government and privet sector are still exploring approaches that
could positively advance the business/management competencies of project
management.

This quest is global as well as Government and privet sector are concerned
to help, as a reduced insolvency rate offer significant financial benefits
nationally.

The business education programs cover every aspect of skill at work, from
answering the telephone to senior bookkeeping diplomas
Competencies cover all features of activities within an enterprise those
discussed in this section relate solely to management education methods
appropriate for any project.

The management education commences by reviewing different teaching
methods for mature students then discusses methods adopted by government
and non-government bodies to deliver the programs, showing the general
response by project owner/managers.

Needs and objectives of project management were established through what
topics or skills should be offered to cover needs? How should they be
presented to achieve their objective (Kirkpatrick, 1994, p.11)?

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Subject: Project Management

The quality of management education in has been critically reviewed by
dependent reports internationally, nationally and locally since 1971, where the
findings have generally shown a low standard of achievement (Karpin, 1995,
Miller, 1998).

As a result of the Crawford report (1979), the Ralph report (1982) was
commissioned to examine available management education, assess course
effectiveness, look at the funding of those courses, consider project
management special needs and make recommendations.

The report noted that project owner/managers should go to accountants,
solicitors and bank managers for advice and that additional research into
small business management considered a special area separate from
corporate activities (Ralph et al., 1982, p.19)

It was through the Karpin report (1995, p.38) that generic project management
education was recommended generic management competency standards to
be set out and delivered to project owner/managers.

Courses were not generally welcomed by project owner/managers as a
teaching method, for classical teaching methods were found to be an
anathema to entrepreneurs (Meredith, 1984, Dawkins, 1991, Christie, 1992,
and Williams, 1992).

A consequence of the use of pedagogic teaching methods resulted in the
majority of owner/managers having ,,grossly inadequate knowledge of
management before starting a business (Williams, 1992, p.142).


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Few small businesses participate in structured education, with research
showing 5% of project management considered conventional education
relevant, yet 65% believed in the benefit of building their own knowledge
through experience and the use of support groups such as management
coaching, as they value hands-on practical and relevant to their business
management education (DEETYA, 1998, p.2).

Methodology is the main difference between various types of education
associated with delivery.





















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Subject: Project Management


Chapter 7

Effect of project management education

7.1- Pedagogic approach
Both the small business professional development program or government
agencies acknowledged that the rigid pedagogic approach was unmarketable
to the project management sector

However, most of the Oil companies continue to focus on the easier to access
employee pool than the difficult to attract the project manager the result is that
comprising the vast majority of employers, but are not prepared to accept
standard education.

7.2- Androgenic approach

Literature shows confidence that the number of project owner/managers
prepared to work with non-government business coaches is increasing
(Holmes & Butler, 1995, p.274) and can boast of a high success rate in 1995
accounting firm Coopers and Lybrand, who have amalgamated with price
Waterhouse since 1997 and are now Pricewaterhouse Coopers, were
commissioned by the Industry Task Force on Leadership and Management
skill to prepare a report on project management education needs and extant
literature (Holmes & Butler, 1995, p.277).

The report indicated that project owner/managers preferred method of formal
learning, was in line with the entrepreneurial approach is important that
management educators understand the processes of the acquisition and

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Subject: Project Management

development of expertise by successful project owner/managers. This view is
supported by Meredith (1984) and Gibbs (1995).

Project owner/managers often use their own resources of family, friends,
industry associations and peers for advice due to the perceived
inappropriateness of courses offered and the high price of non-government
providers (Holmes & Butler, 1995, p.281).

7.3- Result of available education

Demonstrate that significant lack of suitable education is available for project
management this review has indicated that education methods offered to
project managements are inappropriate and consequences are that the
proportion of project owner/ managers failing remains undiminished over the
last 30 years

The literature has shown that this continues due to the manner in which focus
on rigid one size fits all inflexible programs for small enterprises and focusing
their education efforts on employees.











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Subject: Project Management

Chapter 8

8.1- The research finding

The literature review examined modern industrial capitalist management from
its inception at the industrial revolution to the entrepreneurial revolution of the
21s t century.
In addition, the various characteristics of Projects entrepreneurs and the
factors influencing insolvency as a consequence of management research,
the knowledge of project owner/managers and the competencies they require
became apparent and studies were able to annotate the exogenous and
endogenous influences on projects that required action.

The review continued with an evaluation of project management
competencies both general and specific and then considered competency
education offered by government and privet education bodies, organizations
and consultants.

Finally the literature discussing consequences of these education methods
was considered the literature review leads to the model framework of this
research developed throughout the literature review, where the study
considered organization and management of the industrial capitalist age.

Against this model is the outcome of research with reports that have found
repeated, the same results as summarized by Meredith (1984):
Despite the dominance of the small business sector, both in terms of
enterprise numbers and employment, the bulk of management education and
education resources were directed outside the sector.

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Subject: Project Management

What is called for is the availability of qualified and experienced presenters
and the need for market segmentation in the delivery of project management
education.

The design of research around the topic relating to establishing whether
tangible evidence exists to support the proposal that management
competency education has a significant effect on the solvency potential of a
project management business enterprise.













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Subject: Project Management


8.2- The survey result:
Construction industry executives were asked about the performance of their
project managers and their practices in four main areas:
1- Technology use
2- Personnel
3- Operations
4- Project coordination.
Some key findings from the survey include:
Experience and communication skills (written and verbal) are the most
highly important traits in project manager candidates.
Financial management tops the skills most lacking in new project
manager candidates.
Client/customer relations and building skills are the strongest skill sets
for current project managers.
Among the weakest skill sets of current project managers are cost-to
complete and profit projections.
Only 21% of respondents rated their project managers' effectiveness in
the area of documentation as "efficient, concise, and well documented."
The project manager is the primary contact and project leader from the
customer's perspective, according to 80% of respondents.
Better integration and coordination of trades, according to 85% of
executives responding to the survey, could result in an improvement in
schedule of 5% or more.
Only 11% cited construction experience as a concern, mostly because
that's the area on which they focus

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Subject: Project Management

When they hire project managers. Correspondingly, schools of
construction management teach technical skills more than business
management.
Separated out a group of top performers, only 6.6% of the survey
respondents who said they finished on time and on budget all of the
time. Many more respondents said they finish either on time or on
budget but not both a lot of the time.
Of the on time/on budget group, 46% of the contractors said their
project managers do a thorough job planning, and 54% said the Project
Managers do a moderately good job planning. In planning skills with
leadership, with a job plan being a leadership tool for directing people
and material. Many respondents complained that their Project
Managements don't lead.
"We see this scenario a lot in our work with a contractor which is why we say
that project managers should be project leaders not project witnesses or
project secretaries."
In the survey, 53% of the contractors said their project managers play some
role in estimating, and 35% said the Project Managers contribute more than
50%. Of the on time/on budget group, however, 50% of the projects managers
contribute more than 50% of the estimating process. The trade contractors
tend to get their project managers involved in estimating more than general
contractors.
Processes more important Project management performance can make or
break the profitability of a construction company
The focus for improving project management performance should be on the
company's project engagement processes and practices. While most help-

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Subject: Project Management

wanted advertisements focus on finding the perfect project manager, the
better headline for such ads might read "Wanted, the Perfect Project Manager
to Work in the Perfect Project Management System,"

8.3- Recommendation to reduce the Project failures

Form all above we can say the all study aim is how to provide an integrated
framework for project organization, planning and control which is designed to
ensure the following:

1- The timely and cost-effective production of all the end-products
2- Maintain acceptable standards of quality
3- To achieve for the enterprise the benefit for which the investment in the
project has been made.














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Subject: Project Management

And that can be achieved by making the right and effective decisions
especially in the following:

8.3.1- Project Initiation

At the start of any project, there will be a variety of ideas and opinions about
the purpose and scope of the project, what the final product of the project will
be, and how the project will be carried out. The Project Initiation Stage is
concerned with taking these ideas and intentions and developing them into a
formal, planned, resourced and funded project.

In order to define a project in this way, it is first necessary to clearly and
explicitly define what the project is intended to achieve and what its scope of
interest will be. By defining this first, a benchmark is created for assessing the
quality of what is actually produced at the end of the project.

It is also necessary to develop a process by which the project objectives can
be achieved this process will typically involve carrying out a number of tasks
and producing a number of products during the course of the project.

The tasks produce the products. For clarity of purpose and for control
reasons
It is useful to arrange these tasks in a top down structure, which
progressively specify the required work in more detail.
The Project Initiation Stage must also define what resources and
associated time commitment are required to carry out the project.
The work breakdown structure provides a basis from which this
estimation can be carried out.

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Subject: Project Management

The resource and time commitment can be used to calculate an end
date for the project and an estimate of its cost.
This information is key input into the establishment of a business
case for the intended project.
The way the project is managed and executed is the key to its
success.
The involvement of the right people for data capture and decision
making is also crucial.
It is necessary to identify and recruit these people at the start of the
project and to define the project organization structure.
It is also necessary to establish the procedures that will be used by
the people in the Project Organization Structure to carry out and
control the project work.

















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Subject: Project Management

8.3.2- Project pre start:

The project pre start step is concerned with carrying out a high level review of
the background to the project and of related initiatives, recruiting the
involvement of those senior people who will be the ultimate customers and
sponsors of the project, reviewing and customizing the standard work
breakdown structure for the Project Initiation Stage and setting up a small
team to carry out the Project Initiation Stage.

The manager for the Project Initiation stage may be different to the manager
of subsequent stages
When scheduling the Project Initiation activities, understand that there is great
deal of interdependency between the steps. Project pre start should be
carried out quickly. If Project Initiation Stage takes four weeks Review the
outline of the Project Initiation Report and determine the number and
sequence of interviews, workshops and investigations that are required to
create it.

It is possible that the stage schedule is not at a sufficient level of detail to
manage and control the project on a day to day basis. This level of control
may be achieved using a commitment calendar, which details each person's
work on the project for a rolling four week window.

This is initiated at stage start up and updated regularly as the project
progresses
The end result of the this step will be a Project Initiation listing deliverables,
techniques, committed resources and timescales for the Project Initiation
Stage. There is a great deal of interdependency between the Project Initiation

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Subject: Project Management

steps and tasks. However it is important to define the project objective and
scope first before attempting the remaining steps.

Attempts to create a detailed Project Initiation plan with estimates for each
and every task will take far too long. The WBS should be considered more of
a checklist. It is important to apply JAD to gather high quality information in a
reduced time frame. Review the activities in the Project Initiation stage and
the outline of the Project Initiation Report.

The steps equate to the sections of the report. It is recommended that the
work be organized around producing the sections of the report. Determine
what information is needed and assess the best means of gathering it. This
may be in the form of research, interviews and workshops. Identify the
number of workshops. For each one, specify the objective, deliverables and
participants.

Identify and recruit additional resources to perform the Project Initiation stage.
Business Analysts will be involved in defining objective and scope,
determining organization, requirements, approach and costs, coordinating
other resources, preparing the recommendation and ensuring the successful
completion of the Project Initiation stage. Clients will be primarily involved in
determining requirements and preparing the business justification. Systems
Analysts may be involved in determining the project approach and selecting
the appropriate template.

Identify resources that will be required to review and approve the Project




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Subject: Project Management


8.3.3- Initiation Report.
Estimate the effort and elapsed time for the remaining activities.
Create the Project Initiation Kick off Plan listing deliverables, technique,
committed resources, start and end dates.

8.3.4- Project Outset:
It is important to establish at the outset of a project, a precise definition of the
purpose and scope of the project to ensure that both Business Partners and
Technical personnel are clear about the field of reference.

Any project carried out by an organization should be addressing one or more
of the Business Objectives of the organization. If it does not, why is the
project being carried out?
Therefore to establish the objectives and scope of the project, it is first
necessary to identify the overall reason for the project by relating it to one or
more objectives of the organization.

This will put the project into context for the organization as a whole. It is vital
that the project objective be clearly stated and agreed before proceeding with
the rest of Project Initiation. If this is not possible, then do not continue.
The project objective can then be further defined in terms of scope. There are
two aspects to project scope, the scope of the investigation, and the scope of
the solution.

At the start of the project it is unlikely that the problems and requirements will
be fully understood. However, in order to avoid wasting time by analyzing
irrelevant areas, the scope of investigation will help focus on those areas
thought most likely to be impacted by the project. Therefore the scope of

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investigation may well expand as a better understanding of the problems is
achieved.

The problems and requirements must be fully understood before a range of
cost justified solutions can be proposed. This will avoid the risk of focusing on
preconceived solutions, which may well be constrained by current practices,
and facilitate creative solutions.

The clients will choose a solution based upon cost justification criteria which
may exclude some of the original requirements. This scope of solution will be
more closely defined and will determine the design and build stages of the
project.

8.3.5- Project Schedule and Budgeting:


It is necessary to determine what activities are required to be carried out to
meet the objective. The dependencies between these activities can then be
determined, which in turn allows resources and timescales to be estimated.
A Stage End Assessment should be held at the end of every stage in the
project. The project Manager and Project Team report their progress and
recommendations to the Project Board to gain the Board's approval to either
to proceed with the next stage, or to confirm that project has been
satisfactorily completed.

This assessment reviews the overall progress of the project and the plan for
continuing the project.
In the same way that a detailed schedule for the next stage of the project is
developed in Project Initiation, a detailed schedule for the next stage of the
project is developed in every other stage, except the last.

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The overall project schedule provides an overview of the activities in each
stage. These activities need to be further defined for the next stage to the
point where all necessary tasks have been identified.

This should use the same approach as for developing the overall project
schedule. That is, using a proven process, or developing the process if one
does not exist.
This needs to be done for the whole project (project plan), and then in more
detail for the next stage of the project (stage plan). This step is concerned
with the overall project. The project schedule is not intended to direct
resources to specific activities on certain dates.

The ideal situation is to have a proven process on which to base the tasks for
the project. This may be a standard IT process or an outside process
Once a process is chosen, this should then be customized to the particular
needs of the project if a proven process is not available, it will be necessary to
develop a process for use on the project which conforms to the stage, step,
task construct once this has been done, it is necessary to estimate the
resources, both client and technical, required for the project.

This should be expressed by resource type or role rather than by individual. It
should cover all personnel resources required, both full and part time.
The requirements for other types of resource, such as office space and
equipment, should also be determined a time line and cost estimate for the
project can then be developed the development of the project schedule is an
iterative activity during Project Initiation. The other steps carried out in Project
Initiation will affect the schedule.



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8.3.6- Stage and Step Product Workflow

Chart the sequence of stages and steps to reflect the intrinsic and
architectural dependencies inherent in the project.
An output of one step will be the input to another. Some inputs may be
sourced from outside the project.
These External Inputs (e.g., Standards, Project Initiation report of another
project, etc.) must be identified. The project products and external inputs will
primarily determine the step dependencies.
Define the dependencies, and dependency type, between the steps.

Steps within a stage are not necessarily finish-start, but may be in parallel or
phased. Stages may also run in parallel with one another. Do not specify
dependencies at the stage level.

Ensure that all dependencies with other projects are identified. Examine other
Project Initiation Reports to assess inter-project dependencies.


















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8.4- Project Organization

An important step in this planning is to identify the required roles and
responsibilities. This methodology provides a standard set of roles and
responsibilities for a project and it is necessary to review this list and
customize it for the particular project clearly identifies roles and
responsibilities,

Ensures that the best individuals to fulfill roles and responsibilities are
selected,

Identifies training required to enable individuals to fulfill their roles and
responsibilities on the project,

Gains the appropriate allocation of resource time to the project,

Ensures that all major interest groups are appropriately represented,

Updates the project and stage schedules in line with available
resources,


8.4.1- The Project Board
Is the most senior level of Project Organization and has the responsibility of
ensuring the continued integrity of the project from all points of view. The
structure of the Project Board reflects the tripartite responsibility that exists in
any project, namely the Business, Customer, and Technical interests. The
Board should be prepared to recommend termination of the project if
necessary.

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Subject: Project Management


8.4.2- Project Manager

Is recruited by the Project Board to ensure the successful completion of the
stage products, on time, within budget and to the specified quality standards
within an agreed tolerance

8.4.3- Project Engineer

May be recruited from any area concerned with the project, or may be from
outside the immediate organization. The Project Engineer may need help with
the business, customer, or technical aspects of the project. This help is
provided by appointing a coordinator for each of these areas. This ensures
that the main interests being served by the project are properly represented at
the working level, e.g. through participation in quality reviews. This also
provides continuity in the day to day coordination of the project especially
where there are to be changes of project engineer.

The time commitment required for the project will vary for each role and
responsibility identified. It is important that the individuals selected to carry
out the various roles can devote the time that the project requires.

Once the roles, responsibilities, and time requirements for each activity are
defined, it is possible to assign individuals to perform the activities. It will
often be necessary to assign individuals to the project who do not have all the
skills required to perform their roles. Therefore, it is necessary to identify what
additional training these individuals require.



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Subject: Project Management


8.4.4- Project Coordinators

Identify the need for coordination and control activities throughout the project.
These are supporting roles to the Stage Manager. They may be filled by the
Stage Manager if the project is relatively small. They may also be filled by
Key resources.

8.4.5- Planning coordinator:

Who will help the stage manager create the plans, capture actual work
and costs, update plans, etc.

Who is experienced with using the project scheduling tools?

Who has strong administrative skills?

Who has a detailed knowledge of the development project
management standards?



8.4.6- Client Coordinator:

Who will assist in obtaining detailed information about how a client area
works?

o Who knows how the client area is organized?

o Who can assist in identifying the best Key Resource from a
particular client area?










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Subject: Project Management


8.4.8- Technical Coordinator:

o Who can facilitate the identification of project tasks required to
produce the required products?

o Who is skilled in the techniques used to create products?

o Who can ensure the technical quality of products?

o Who can assist in identifying the best Key Resource for a
particular technical issue?


8.5- Determine Training Requirements

Assess the capabilities and skills of all those identified as part of the Project
Organization
Based upon this assessment establish a training plan to acquaint the project
team members with the methodologies, technologies, and business areas
under study.

It may the first time that some clients have been involved in a development
project so it is important that they are adequately briefed as to the project
management and development process, and especially their roles and
responsibilities.

The Project Organization step is intended to ensure that the clients,
development and operations are working as a single team on the project, and
that artificial organizational barriers are removed.



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Subject: Project Management


8.5.1- Project Control

During a project stage, the focus should be on carrying out the work planned
for the stage. However, there are many project management activities that
need to be carried out in addition to the project work itself. In this
methodology, these activities are arranged into a series of steps

Most of these activities are planned for in the project and stage planning. The
procedures that are defined during Project Initiation, and are revised during
further stage planning, are followed in these steps. The Project Management
activities include:

Monitoring and controlling project progress, through the use of regular
checkpoints involving the project team and formal reviews with the
Project Board,
Controlling the quality of products,

Controlling the way changes to baseline products are implemented,

Controlling and resolving issues that arise during the course of the
project.

Several of the activities will result in changes to the stage schedule. The
Project Engineer should ensure that these changes are made smoothly, and
that these changes are communicated to all concerned. Any changes made to
individual work assignments should be confirmed in the regular checkpoint
meetings.


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Subject: Project Management

In the event of a stage tolerance being exceeded, an exception situation will
arise. The Stage Plan will be replaced by an Exception Situation Report
which will explain how the exception arose, the options examined, and the
proposed actions.

8.5.2- Allocate Resources:

Assign roles and their associated responsibility to each task. In order to avoid
overwhelming the plan with complexity focus on the "produce", "consult" and
"review" responsibilities. The "approve" responsibility will generally apply only
to the Project Board. The responsibilities are defined as follows:

Produce: to create the product of the task. Usually applies to Project Team
Members like Business Analysts, Systems Analysts and Programmers. The
schedule will be simpler to balance if only a single role is assigned per task.

Consult: provide information required to produce the task. Usually applies
Coordinators and Key Resources.

Review: review the product for correctness, accuracy and completeness.
Usually applies Coordinators and Key Resources.

Approve: official signoff. Usually applies to the Project Board.

Assign resources to the roles and responsibilities. Apportion the total task
effort estimate to the resources.
As a tip, the schedule will be much easier to balance if the task effort estimate
is apportioned entirely to a single "produce" resource.

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Subject: Project Management

Therefore this estimate should include time for the other "consult" and
"review" resources, e.g., Client review, DBA review. Although this is a
simplification, it is still applicable if the non-project team costs are excluded
from the plan, since the estimates are primarily for the Project Team.

The "consult", "review" and "approve" resources still need to be assigned to
tasks, albeit at zero work, in order for them to be included in the schedule.

It should be clearly established control procedures for any piece of work. A
Project is not an exception to this rule, but due to the nature of projects, these
procedures are often not readily available. It is therefore necessary to identify
what procedures are required and to define these procedures.

Any established project control procedures that an organization has in place
should be incorporated into the project plan.

To ensure that all procedures required to carry out and control project work
are established, so all project work is carried out as effectively as possible.
Identifies all necessary procedures defines appropriate standards defines
necessary performance levels and tolerances

Any existing procedures should be modified if necessary for the project.
Additional procedures may be required, depending on the nature of the
project.










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Subject: Project Management

8.6- Analyze the Risk in the project

Determine the risks associated with conducting the project. Risks tend to be
factors which are not within the control of the project manager, but which
could nevertheless result in the failure to achieve the project success criteria.

Conduct a Risk Analysis.

Risks can be categorized as:

External Dependencies, Organizational, Planning, Business Case and
Technical
Evaluate each risk factor within these categories and determine a value.
Aggregate the risk values by category to determine low, medium and high risk
areas.

The real benefit of this exercise is not in determining a numeric value, but in
identifying areas of the project which are exposed to risk.
Identify the medium and high risk factors and determine appropriate
countermeasures to reduce, mitigate or eliminate the risks. Where
appropriate include these countermeasures as steps and tasks in the project
and stage plans. Document the assumptions in the task descriptions and
cross reference them back to the project risk factors.







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Chapter 9
Conclusion and recommendation from this study:
The mission of this study is to promote effective, efficient, and
economical operations of project management through audits,
inspections, investigations, and other reviews. The outcome the
important need for the project managers and engineers to utilize all
available recourses which affecting project performance

Recent reports have noted problems in the development and use of
performance measures in various management contracts to establish
performance milestones until the contractor had completed the work
because contract administration has many weaknesses established
mechanisms for controlling changes in the costs, schedules, and scope
of projects. Some projects were constructed without a full assessment
of alternatives, changes to the mission, or realistic budgets.
Cost estimate is a prediction about a future event, namely the final
project cost, and because future events are uncertain, they ought to be
described probabilistically. Cost estimates ought to reflect the
uncertainties and risks inherent in the project at the time the estimates
are made. Confidence factors or ranges should be included with all
cost estimates at all stages of a project, to give proponents,
participants, and sponsors a realistic idea of the risks and uncertainties
related to cost and schedule overruns. Point estimates should be
avoided because they give a misleading impression of precision,
especially when the reliability of the estimate is low.

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Subject: Project Management

Allowances for cost uncertainties and unknown cost factors can be developed
through risk assessments, scenario analyses, contingency assessments,
sensitivity analyses, and related methods. Sensitivity analyses and
independent external reviews of the assumptions used in the cost and
duration estimates should be used to assure that cost and duration estimates
are robust against changes in assumptions.
Projects took an average of three times longer to complete them
comparable projects by industry and other government agencies, and
the original schedules slipped an average of "about 22 months, or 52
percent" (IPA, 1996, p. 80), compared to an average of 17 percent in
industry. Thus, even though initial project schedules were very long
compared to similar projects done by others, they nevertheless slipped
more. The Project Performance Study Update of April 1996, Thus, the
1996 Update expected some improvements in costs and durations
compared to the previous studies, but these were extrapolations
because the projects in the study had not yet been completed. No
follow-up study has been made since April 1996 to determine whether
these expectations were realized, but even with these projected
improvements, project costs and schedules two basic types of
uncertainties may be identified. One type is internal to the project and
the other external.

The internal uncertainties or unknowns relate to such estimating factors
as labour rates or productivity, unexpected foundation conditions,
prices and quantities of commodities, such as concrete, steel, etc. Best
estimates of these factors must be included in the initial estimated cost
of the project, and allowances for changes to the estimated values
should be included in the contingency.

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External uncertainties are related to external influences and externally-
mandated changes beyond the control of the project. They include the
effects of political change, Congressional actions and changes in general
policies, local, state, or tribal influences, and all changes in cost or
schedule originating outside the project for reasons unrelated to the
project's purpose or objectives.

The different types of uncertainties have often been treated differently,
and estimates often do not include external unknowns, uncertainties, or
risks because cost estimators did not know how to estimate them and
because they are externally controlled, hence deemed not to be the
responsibility of the project. But not allowing for external risks is the
same as estimating them to be zero. This practice may be acceptable
in projects for which the external uncertainties are very small, but this is
not usually the case for DOE projects. DOE cannot apply conventional
thinking to unconventional situations. DOE should estimate both
classes of uncertainty and include all uncertainties in the contingencies
would be very much higher than for comparable projects in industry.

The stronger the culture that is, the more pervasive it is in the
organization the more inertia it generates. Strong cultures are more
resistant to managerial intervention than weak ones. The levers
creating strong cultures therefore lead to both effectiveness and
ineffectiveness in organizations. Strong cultures, on one hand, can lead
an organization to the "success breeds failure" syndrome in which
organizations refuse, or are unable, to adapt to changing environmental
demands


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In addition to the outcomes or dependent variables (project costs,
overruns, durations, and slippages) The cost growth of these projects is
distorted by the frequent use of scope as a contingency scope
adjustments are likely to bias project costs upward, on the average,
even if the original cost estimates were unbiased because its easier to
add reasons to spend any under runs


Those projects without good owner control perform distinctly worse as
a class than those with strong owner control. projects are usually led by
a project manager from the contractor organization and often have little
or no project owner representation on the project team

Enhance preconstruction planning, so that scope definition, baselines,
budgets, contingencies, and schedules are realistic, and everyone
involved understands what will be done, and when. After budgets are
fixed, design and construct the project to meet the budget.
Engage user managers early and require that users be committed to
project scope, requirements, budget, and schedule.
Ensure that user/client decisions are made in a timely manner to avoid
project delays.

Provide objective, standard methods for assessing project risks and
uncertainties, and assign realistic budgets, schedules, and
contingencies. The momentum toward improved project management
was attributable to the efforts undertaken by a number of influential
persons within department in various critical management roles. And

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also the new leaders or whether the remaining leaders are or will
become strong and visible champions of project management issues in
the project
The committee has previously taken the position that project
management should be expanded and professionalized through the
training of project directors and supporting staff. Nevertheless, there
has been internal opposition to project manager training and
professional certification, and funding for the training courses, project
management workshops.
Give the assigned project manager authority to control the project
budget and schedule (including contingencies).
Institute contracting methods that select contractors who are committed
to the goals of the project and the organization. Develop contract
management procedures that hold contractors accountable for
performance without creating a counterproductive adversarial
atmosphere.
Institute rigorous identification and control of changes, especially
changes in
Create a culture of excellence in project management and execution.
Establish the goal of becoming a leader in project management skills,
methodology, technology, systems, and performance.
Promulgate clear directions on project management policy, stressing
that completion of projects to scope, on time, and on budget is of the
highest priority.
Provide clear definitions of responsibility, authority, and accountability
for all personnel involved in projects. Prohibit interference from outside
the chain of responsibility. Clarify contractor roles, responsibilities,
authorities, and relationships.

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Scope. Make it clear that scope, budget, and schedule are inextricably
linked and prohibit changes in scope that cannot be accommodated in
the assigned budget.
Provide consistent, uniform methods for tracking projects (e.g., earned
value analysis) and disseminate this information so that all parties



































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References:

1. Exploring Corporate Strategy, VI edition, Gerry Johnson & Kevan
Scholes
2. Principles of Marketing, XI Edition, Philip Kotler
3. www.omasco.com
4. www.panasonic.com
5. Unlimited power (Anthony Robbins)
6. The feedback questionnaire
7. Management of Organizational Behaviour : Utilizing Human Resources.
by Paul Hersey, Kenneth H. Blanchard. Book - January 1982 - 4th.
Addition
8. Management and organisational behaviour
9. LAURIE J. MULLINS Seventh edition prentice Hall
10. M. Dominic Cooper, Robin A. Phillips . Killing two birds with one stone:
achieving quality via total safety management. Leadership &
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March 29, 1900), Annales de l École Normale Supérieure, 3 - 17, 21 -
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Chapter 2 in 10 Plus all its algebraically equivalent offshoots, such as
maximum likelihood estimation, principal component analysis, etc.
12. Dimson, Elroy and Massoud Mussavian (eds) (1998a). Foundations of
Finance Volume I: Market Efficiency, Dartmouth Publishing Company.
Dimson, Elroy and Massoud Mussavian (eds) (1998b). Foundations of
Finance Volume II: Asset Pricing,

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Subject: Project Management

13. Dartmouth Publishing Company. Dimson, Elroy and Massoud
Mussavian (eds) (1998c). Foundations of Finance Volume III:
Corporate Finance, Dartmouth Publishing Company.

14. Fama, Eugene (1965). "The Behavior of Stock Market Prices", Journal
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15. Blake, D. (1990). Financial Market Analysis. London: McGraw-Hill Book
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17. Gujarati, D.N. (1995). Basic Econometrics (3nd ed.). London: McGraw-
Hill Book
18. Company.


19. Fama, Eugene, Lawrence Fisher, Michael Jensen and Richard Roll
(1969). "The Adjustment of Stock
20. Prices to New Information", International Economic Review, pp. 1-29.

21. Fama, Eugene (1970). "Efficient Capital Markets: A Review of Theory
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Behavioural Finance", CRSP Working Paper 448, University of
Chicago.

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Subject: Project Management

23. Scholes, Myron (1972). "The Market for Securities: Substitution Versus
Price Pressure and the Effects of Information on Share Prices", Journal
of Business, 45, pp. 79-201.
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25. Fama, Eugene (1970). "Efficient Capital Markets: A Review of Theory
and Empirical
26. Work", Journal of Finance, 25, pp. 360-400.

27. Samuelson, Paul (1965). "Proof That Properly Anticipated Prices
Fluctuate Randomly", Industrial Management Review, 6, pp. 31-59

28. Treynor, Jack (1961). "Toward a Theory of Market Value of Risky
Assets". Mimeo.

29. Sharpe, William (1964). "Capital Asset Prices: A Theory of Market
Equilibrium Under Conditions of Risk", Journal of Finance, 19, pp 400-
452.

30. Grossman, Sanford and Joseph Stiglitz (1980). "On the Impossibility of
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31. Shiller, Robert (1981). "Do Stock Prices Move Too Much to be Justified
by Subsequent Changes in Dividends?", American Economic Review,
pp. 409-440.


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Subject: Project Management

32. Nabeel E. Al-Loughani (1999), "The Informational Efficiency of the
Highly
33. Speculative Emerging Stock Market of Kuwait", Working Paper 9917
Presented at the 5th Annul Conference of the Economic Research
Forum.



157

 

 
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