Managing Human Resources in Projects Unit 1

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Unit 1 Developing Competencies for Project management

Structure

1.1 Introduction:
Objectives:
1.2 Concept of a Project
Self Assessment Questions: 1
1.3 Developing a competent organization
Self Assessment Questions: 2
1.4 Need for competencies
Self Assessment Questions: 3
1.5 Summary
1.6 Terminal Questions:
1.7 Answers to SAQ’s and TQ’s

1.1 Introduction:
Project management is fast becoming an exciting new profession. Project managers are
in great demand. They may be required for a publishing house, a university, agricultural
rural development, social work or industrial construction projects. It appears they are
required wherever there is work. Project management seems to have captured the
attention of all those who are looking for results. Today anyone holding a responsible
position in a project is a Project Manager and he pursues his own style in discharging his
so – called project management responsibilities.

Objectives:
 To understand the concept of project management
 To understand the key characteristics of project
 To know about competency and competent organizations
 To know the need and importance of competency for an organisation

1.2 Concept of a Project

To understand project management we first understand what a project really is. We hear
of cement projects, power projects, refinery projects, fertilizer projects, etc., but while the
term project is common to all of them, the plant is operational, the project is deemed to
be completed. Similar is the case with any other project – say a project for methods
improvement. The project is complete when methods improvement has been achieved.
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A project, therefore, is not a physical objective, nor is it the end-result-it has something
to do with the goings-on in between, which must be same, whether we build a high
technology process plant or merely hold an election, to deserve a common name and to
be termed as a project. Thus, a project is an activity with specific goals which takes
place over a finite period of time.

A project can thus be defined in terms of its distinctive characteristics—a project is a

temporary endeavor undertaken to create a unique product or service. Temporary
means that every project has a definite beginning and a definite end. Unique means that
the product or service is different in some distinguishing way from all other products or
services.

Project Management is the art of maximizing the probability that a project delivers its
goals on Time, to Budget and at the required Quality. Project management is the
application of knowledge, skills, tools, and techniques to project activities to meet project
requirements. Project management is accomplished through the use of the processes
such as: initiating, planning, executing, controlling, and closing. Examples of projects
include:
 Developing a new product or service.
 Effecting a change in structure, staffing, or style of an organization.
 Designing a new transportation vehicle.
 Developing or acquiring a new or modified information system.
 Constructing a building or facility.
 Building a water system for a community in a developing country.
 Running a campaign for political office.
 Implementing a new business procedure or process.

Following table explains the key features of a project

Sl.No Features of a project
1 Objectives A project has a fixed set of objectives to be achieved.
2 Lifespan A project cannot continue endlessly. It has to come to an end.
3 Single entity A project is one entity and is normally entrusted to one
responsibility while the participants in the project are many
4 Teamwork A project calls for team work. It is constituted of members
belonging to different disciplines, organisations and even
countries.
5 Life cycle A project has a life cycle reflected by growth, maturity and
decay.
6 Uniqueness No two projects are exactly. The location, the infrastructure,

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the agencies and the people make each project unique

7 Change A project sees many changes throughout its life. There can be
some change which will change the entire character or course
of the project.
8 Successive More is known about a project when it enters the construction
principle phase than what was known, say, during the detailed
engineering phase
9 Made to order A project is always made to the order of its customer.
10 Unity in A project is a complex set of thousands of inter-related
diversity varieties, in terms of technology, equipment and materials,
machinery and people, work culture and ethics.
11 Outsourced A high percentage of the work in a project is done through
contractors.
12 Risk & Every project has risk and uncertainty associated with it.
uncertainly

Self Assessment Questions: 1

(1) Characteristics of a Project are:
A. It has an end
B. It is temporary.
C. It has budgets
D. All of the above

(2) The following is not a project:

A. Constructing a house
B. Producing a car
C. Developing a course
D. Civilization

1.3 Developing a competent organization

Competency
Competency is a capacity of an individual that leads to the behavior, which meets the job
demands within the parameters of the organizational environment and in turn brings
about desired results. The competency mix comprises knowledge, skills and attitude.
Competencies are the characteristics of a manager. This goes along with characteristic
of a person.

In other words, competencies are characteristics that individuals have and use in
appropriate, consistent ways in order to achieve desired performance. These
characteristics include knowledge, skills, aspects of self-image, social motives, and
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traits, thought patterns, mind-sets, and ways of thinking, feeling and acting. A
competency is measured by identifying the behaviors or tangible results (outcomes)
produced by their use in the context of the work performed. Some of the main features of
competencies are:

• A behavior is an observable action that is taken to achieve results or that

contributes to an accomplishment.
• Competencies could be measured by using behavioral indicators.
• A behavioral indicator is a statement of an action, or set of actions, that
one would expect to observe when a person successfully uses a
competency to perform work.
• Behaviors may be both skills/knowledge (extrinsic and teachable) and
traits (intrinsic and less easily taught).
• Competency describes behaviors that excellent performers exhibit much
more consistently than average performers (mastery level ability as
compared to basic level ability).

• A competency model is a written description of the competencies required for

fully successful or exemplary performance in a job category, work team,
department, division, or organization. Competency identification and modeling
can be beginning point for strategic development plans linked to organizational
and individual needs.
• Competencies may be ―backward looking‖ in that they give people information
about what they need to do to prepare themselves to succeed at their current job.
• Competencies may be ―forward looking‖ in that they give people information
about continued success in an occupation when the requirements for the job are
changing, or so the person can prepare for a different job.

Competencies are what make your organization unique. They are the skills your
organization possesses that set it apart from its peers. They are the sources of
competitive advantage. They are the building blocks to future opportunities.
Understanding and exploiting the organization’s core competencies are critical if these
ventures are to be successful.

Development of core competencies takes time and continuous development. A

competence is a bundle of skills rather than a discrete skill. It is this integration of skills
that that define a core competence. Because a core competency is the sum of learning
across individual skill sets and organizational units it is unlikely to reside in a single
individual or small team. Understanding and developing core competencies is
necessary to enable the organization to exploit the opportunities they provide.

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Definition of organizational competencies

Every organization consisting of more than one person requires integrating the skills of
others. Organizational competencies are functional capabilities and experience a firm
possesses by virtue of the way it integrates and blends the individual skills of its
employees to achieve a client benefit or make a significant contribution to the
organization’s financial health. Examples of organizational competencies are:

 Workers with knowledge and experience in the implementation of drug and

alcohol treatment programs.
 Workers with knowledge and experience in client case management.
 Workers with knowledge and experience in planning, budgeting, and
controlling costs.
 Workers with knowledge and experience in attracting, developing, and
retaining a highly competent workforce.
 Workers with knowledge and experience in providing youth recreational
programs.
 Workers with knowledge and experience in fund raising.

Each of these competencies requires integrating the skills of a number of people.

Because they integrate these skills across departmental and functional lines they are not
likely to be possessed in a single individual. The effectiveness of these competencies is
determined by the personal skills required and how well the organization integrates
them.

Defining a core competency

A core competence is a bundle of skills that enables an organization to provide a
particular benefit to customers or the organization. A core competence is not product or
service specific. Core competencies contribute to the development of a range of
products and services which is why understanding and exploiting them is important for
successful growth. Examples:

 Sony- customer benefit is pocket ability and core competence is miniaturization.

 Federal Express- benefit is on time parcel delivery and core competence is
logistics management.
 Rosecrans- benefit is freedom from addictive behavior and core competence is
adult and adolescent education.
 Carpenters Place- benefit is a changed lifestyle and the core competency is
customized client case management.

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These core competencies are not product or service specific. They enable these
organizations develop a number of products and services which explains why they are
important in developing their competitive strategy.

Organizational competencies must pass three tests to be considered core

competencies.
1. The competency must make a significant contribution to customer perceived
value or to the financial health of the organization.
2. The competency must be unique or performed in a way that is substantially
superior to its peers.
3. The competency must be capable of being applied to a range of new products
and services.

Fundamental organizational competencies

Business and nonprofit organizations or project organistions require many competencies
covering a range of functional activities (production, marketing, distribution, etc.) in order
to function. Certain fundamental competencies are required by all organizations in order
to operate effectively and carry out their mission. These competencies are called ―table
stakes‖ and define the standard level of competency the organization needs to sustain
operations. Some examples of these fundamental competencies and skill sets all
organizations require are:

 Marketing:
All organizations produce a product or service for a client and marketing is the function
that creates the paying client. Without some competency in this function the
organization would not have any clients. The marketing function includes the following
skills:
 Identifying the product characteristics and service attributes to provide the
desired client benefit and how to package these into the product or service
offering.
 Determining the price for the products and services offered including
discounts, sliding scale fees, etc. and how payment will be accepted.
 Determining how and where the products and services will be offered and by
whom.
 Promoting the products and services, communicating with the prospective
clients, and selling. This function can be a source of core competency if the
organization’s success is created by its marketing expertise. Examples are
organizations that must continually upgrade and improve their products and
services.
 Production or operations. This function includes all the skills required to
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produce the product or service to the requirements and specifications

determined by the organization’s marketing effort and making them available
for purchase or delivery. This function is the most likely source of core
competency if the organization provides a unique product or service.
 In service organizations this function consists of the development and
delivery of the service to the client.
 For organizations that produce or sell a product this function may include
purchasing and inventory management skills. Depending upon the scope of
purchasing required these activities may be separated into separate
functions.
 For distribution, retail, and food service type organizations this function
should include procurement and inventory management skills.
 Human resources. The work of the organization is accomplished by people
and competency in hiring and training employees is needed by all
organizations employing more than one person. This function may be a
source of core competency if the organization is consistently able to develop
and retain exceptional employees. This function includes the following skills.
1. Interviewing prospective employees and managers.
2. Hiring and indoctrinating employees and managers.
3. Determining the compensation for employees and managers and
establishing the process to pay employees and managers.
4. Determining the employee and manager training requirements
needed to perform their jobs and providing or making arrangements to
provide this training.
5. Reviewing employee and manager performance and discharging
ineffective personnel.

 Fund raising:
All non profit organizations need to raise funds. This function can be a source of core
competency if the organization is consistently able to obtain sufficient contributions to
fund its activities. This function includes skills in developing the Case for Giving,
cultivating prospective donors and contributors, making ―the ask‖, planning and
implementing fund raising events, donor recognition, etc.

 Administrative:
This is a catch all function that includes customer service, invoicing and bill paying,
answering the phones, facility maintenance and repair, etc. Since these functions tend
to be relatively routine they are not likely to be a source of core competence unless their
facilities and customer service make a significant contribution to customer perceived

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benefits. Examples are hospitals, schools, and marketing organizations. In these cases
these activities may be expanded into separate functions.

 Accounting and Bookkeeping:

All organizations must record and monitor the organization’s income and expenses and
most must prepare financial reports periodically. As a minimum all organizations must
be able to record and categorize these transactions consistently. It is common for
nonprofit organizations to contract these tasks to specialists and these competencies are
not likely to be a source of core competency.

 Payroll:
Businesses need people to do the work and these people must be paid. All businesses
must record the hours that workers provide to the business, the wages they are entitled
to receive for their work and the salaries due to the salaried workers. This function
includes paying these wages and salaries and the payroll taxes that are required by law.
Usually nonprofit organizations contract this function to specialists and it is not likely to
be a source of core competency.

Identify your organization’s core competencies

Core competencies require continuous improvement and development. Demands on
organizations continue to escalate and today’s core competencies may be tomorrow’s
table stakes. Because they are long term and resource intensive not all organizations
possess core competencies. Very small organizations and organizations that provide
standard services that are in high demand will usually not possess or need core
competencies.

Organizations that do not operate in a highly competitive environment such as

government funded organizations or monopolies do not need to develop and exploit core
competencies. Table stakes are more than adequate for their success. The clients
using these organizations value adequacy not uniqueness. Examples are food pantries,
homeless shelters, and soup kitchens.

Inventory your organizational competencies

The first step in identifying your core competencies is to develop an inventory of your
organization’s competencies and skills.

 Use the fundamental organizational competencies listed previously to identify the

skills needed to enable your organization provide its products and/or services.
Combine these skills into organizational competencies. Organizational
competencies are bundles of skills possessed by a number of individuals many
times across functional lines. They are more than the skills of a single person.
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 Every organization consisting of more than one person requires integrating the
skills of others. Organizational competencies require the integration of skills
across functional lines. Example:
 Skills in obtaining food donations and qualifying eligible clients
(marketing)
 Skills in receiving and inventorying donated food, packaging and
distributing the food, and disposing of spoiled food (operations).
 Skills in recruiting and supervising employees and recruiting and
scheduling volunteers (human resources).
 Skills in customer service, paying bills, answering phones, and
maintaining and repairing the facilities (administrative).

 Other examples of organizational competencies:
o Workers with knowledge and experience in providing youth recreational
programs.
o Workers with knowledge and experience in supervising and maintaining
overnight shelters.
o Workers with knowledge and experience in controlling costs.
o Workers with knowledge and experience in fund raising.

Determine the organizational competencies that are core

A core competence is a bundle of skills that enables an organization to provide a
particular benefit to customers. For each competency listed in your inventory, identify
the customer benefit that results from that competency. The competency is not core if it
cannot be associated with a customer benefit or a significant contribution to the financial
health of the organization.

 Identify the benefit from each competency. Examples:

o The customer benefit from knowledge and experience in the collection
and distribution of donated food is free food.
o The customer benefit from experience in providing youth recreational
programs is constructive youth development.
o The benefit from knowledge and experience in controlling costs is a
reduction in operating expenses.

 Separate the competency from the product or service. Examples:

o The competency associated with the collection and distribution of donated
food is assistance to the needy. This is the purpose for distributing
donated food.
o The competency associated with providing youth recreational programs is
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youth education and development. The purpose of education is to

change and shape behavior and that is what the recreational programs
want to achieve.
o The competency associated with experience in controlling costs is
financial management. The purpose of financial management is to
control the financial health of the organization.

 Combine the benefits and competency into a single statement. Examples

o Competency: Workers with knowledge and experience in providing youth
recreational programs.
 Benefit: constructive youth development.
 Competency: youth education and development.
o Competency: Workers with knowledge and experience in controlling
costs.
 Benefit: reduction in operating expenses.
 Competency: financial management

Developing core competencies

Developing core competencies requires time and resources. They do not happen
accidently. They must be planned and cultivated. This requires a strong management
commitment to their planning and development. Core competency development must
address the following issues.

 Determining the core competencies desired. Most organizations do not have the
resources to develop core competencies in a multitude of areas. They must
select the competencies needed to pursue the organization’s competitive
strategy and growth goals.
 Acquire people with the needed skills. The least expensive way to do this is to
develop and train existing personnel. The alternative is to recruit people that
have the needed skills. This could be a more expensive option but may be
needed when the core competency must be developed quickly.
 The integration of these skills is usually a function of management to create the
environment needed. The organization’s management must recognize this need
and plan how it will be accomplished.
 The core competency must be institutionalized through the organization’s
processes and procedures to become the natural way the organization acts.

Core competencies become one of the hallmarks of the organization. They are the
driving forces of its competitive strategy and competitive advantage.

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Successful project management takes more than skilled individuals. It takes individuals,
teams, and organizations all working together to achieve excellence. project
management organization-describes the individual, team, and organizational
competencies necessary for overall competitiveness. Project managers provides
methods for increasing skills in each area and tools to help organizations assess
whether they're being achieved.

Individual project managers will learn the key traits they need to excel in their field. They
will read about the best ways to strengthen their skills through a variety of channels,
including formal education, on the job training, and self instruction.
Senior managers, executives, and CEOs will learn about different types of teams, why
they are so important to today's businesses, and how to gauge their effectiveness. They
will discover the seven most important characteristics of project based organizations.
And they will be given checklists and scoring sheets to evaluate how well their
organization is enabling its individuals and teams to do their jobs.

Project management has become the dominant way of getting things done in all kinds of
businesses because it gives companies the ability to put staff and resources where
they're needed, the flexibility to change direction quickly, and the means to monitor costs
and schedules more closely. Project Management Competence is the best way to
increase project management effectiveness because it gives readers the ability to build
and measure project related strengths at every level of the organization.

Self Assessment Questions: 2

(1) Competency is
A. An art
B. Strength of an individual
C. Capability
D. Qualification

(2) Core competence is a bundle of

A. Skills
B. Staff
C. Operations
D. Strategies

1.4 Need for competencies

Monitoring the output and checking the consequences of work are normal parts of
management. The project manager should inspire the staff to go for personal
development and care about retraining of the personnel. People are the key to the
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success of an organisation. A project manager will not focus only on getting the best
people, but on getting the best from them. Modern project management is process
driven and will provide the mechanism for getting the best results from best people.

Implementing modern project management will allow employees to perform multiple

projects in an increasingly complex environment and measure performance
improvements. The important areas where a project organizations needs to develop its
competencies are shown in the following diagram.

Scope Risk
managem managem
ent ent

communi Quality
cation Project managem
organisation ent
competency
areas
Contract Human
managem resource
ent managem
ent

Cost Time
managem managem
ent ent

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Project Management Subject Areas Major competencies

Scope management Scope Document
Work Breakdown Structure
Cost/Benefit Analysis
Change Management
Configuration Management
Quality management Quality Assurance Procedures
Quality Plan
Quality Control Procedures
Cost management Project Budget
Earned Value Reports
Project Cost Plan
Time management Schedule Update Process
Schedule Reports
Project Estimate
Risk management Risk Management Plan
Risk Response Document
Communications Project Communications Plan
Issue Resolution Procedure
Human Resource management Resource Planning Process (identify, plan,
acquire)
Conflict Resolution Procedure
Contract/Procurement management Procurement Plan
Dispute Resolution Procedure

A strategy is required for developing, supporting, and rewarding the development of

above said competencies in employees to perform the required job. The following are
some areas that need to be examined as part of the strategy which requires coordination
across the organizations traditional functional areas and management commitment.

Developing Skills to be measured - test, assessment of deliverables, peer

review.
New skills to be developed - project workshops, external training,
on the job training
Supporting Infrastructure - training, project support, functional support
Management - involvement as sponsors, line managers, and
leaders
Rewarding Infrastructure - formal, informal, ties to existing company system

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It is generally accepted that employees will need to broaden their knowledge, skills and
competencies through a lifetime of learning if they are to remain employable, and if
enterprises are to maintain their competitiveness in a knowledge-based global economy.
However, identifying and developing skills and competencies for future challenges,
employability in organizations will become a challenging task. Following table gives you
the description of competencies needed by the employees of an organization.

Competencies Definition
Ability to adapt & change Flexibility
Ability to sell your skills in a client Recognising & articulating personal competencies
environment and strengths
Business insight Good appreciation and knowledge of business
requirements
Communication Skills Listening, writing, interpreting, verbalising
Conflict Resolution Combination of negotiation and influencing to
resolve conflict
Creativity, Innovation, vision, Design, development and implementation of new
Intrapreneurship, Entrepreneurship, ideas or concepts
Customer Centric Skills - Execution Understanding, listening customer needs and
implementing customer requirements
Customer Centric Skills - Proactively addressing customer’s needs and
Relationships requirements
Decision Making under uncertainty Ability to make a decision without all facts and
Risk taking information
Effective Collaboration Ability to work within and across teams
HR Management Developing processes to facilitate people mgt
Influencing Ability to positively persuade groups of people to
achieve a desired result
Information Management Processing and managing information

Knowledge to customise a solution to Providing a tailored solution to meet the customer’s

a corporate customer requirement
Language skills Foreign Language
Leadership - Corporate Management Leading people to achieve the Corporate Goal
Negotiation skills To reach a win/ win outcome
Networking skills Building effective contacts and relationships
Presentation Skills To effectively design, develop and present
information to target audiences.
Priority Setting Differentiating and scheduling tasks based on
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business impact
Problem solving To use tools and techniques to effectively and
efficiently resolve problems.
Strategic Planning Looking and planning into the future
Stress Management Surviving pressure, managing self, balance
Supply Chain Management Managing all aspects of the Supply Chain -
purchasing, operations, logistics etc.
Understanding of supply chain and Understanding how to operate effectively within the
decision-making structures corporate business environment
Working in a virtual environment Working non face-to-face with teams/ individuals

Developing Competencies in the organization to create a better workplace for the

successful execution of the project requires the following elements to be kept in mind by
the project head.
 Development of key competencies in the workplace will require a number of delivery
strategies. In this context, a blended learning approach offers the most potential for
meeting both individual and organisational needs.
 Individuals must take responsibility for their own personal development to ensure
future employability.
 There is a need to reflect the changing emphasis of interpersonal and intrapersonal
skills in curricula at all levels in the education system.
 Acquisition of the key competencies must begin early in the education life cycle.

The success factors related to the acquisition of the competency for an

organisation are:
 Familiarity with the capabilities and limitations of the chosen
assessment method.
 Thorough inquiry into the information needs, nature of decisions and
actions to be based on research results, and the general operation of
the institution or organization sponsoring the assessment.
 Sponsors who trust the researcher(s); respect for sponsor ownership
of results.
 Ethical treatment of respondents to assessment; confidentiality of
responses. No harm to respondents.
 Genuine interest in hearing other people’s thoughts and feelings.
 Understanding of appropriate use and fit of methods/tools to research
questions.
 Understanding of group dynamics, particularly in focus group research

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Self Assessment Questions: 3

(1) The competency of Quality management includes
A. Quality Assurance Procedures
B. Quality Plan
C. Quality Control Procedures
D. All of the above

1.5 Summary
Enlightened companies soon recognized that old command and control process did not
work well with their shares strategies. Also companies faced pressures of rising costs,
product cycles, globalization, and a rapidly changing workforce and were forced to adopt
a more distributed, leveraged system of operation. In other words, they had to make
every employee count. A key enabler of this change was technology, which provided the
connectivity and the critical tools to make dramatic improvements in information sharing,
work productivity, communications, and rate of change, another key was building
organizational capabilities around one business and technologies.

1.6 Terminal Questions:

(1) Define ―Competency. Explain its meaning in the context of an organization
(2) What are some common competencies required for Project Management?
(3) What are the steps you would follow to create competencies in an organization?
(4) Explain the various organizational competencies.

1.7 Answers to SAQ’s and TQ’s

SAQ 1
(1) D- All of the above
(2) Civilization

SAQ 2
(1) C- Capability
(2) A - Skills

SAQ 3
(1) D – All of the above

Answers to Terminal Questions:

(1) Refer Section 1.1
(2) Refer Section 1.3
(3) Refer Section 1.2
(4) Refer Section 1.3
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