PMGT 402 W2 Su10

PMGT 402 Project Leadership: Skills for Project Managers
Mario Vasilkovs
School of Business
1
Week 2 Agenda
PMGT 402 Summer 2010
Housekeeping Update Management Yesterday and Today:
Scientific Management General Administrative Theory Quantitative Approach Organizational Behavior Systems Approach Contingency Approach Current Trends & Issues Projects in an E-Business World
2
Week 2 Management Yesterday and Today
Housekeeping Update
mvasilk1@my.centennialcollege.ca Office New
Hours:
Wednesdays: 1030-1230
to Section:
Exam week of Aug. 16 Exam and Academic Honesty Policies Blackboard & E-mail Introductions
May
25 Class cancelled
3
Management Yesterday and Today
School of Business
4
Scientific Management
Fredrick W. Taylor Principles of Scientific Management: 1911 Work at Midvale & Bethlehem Steel First to optimize industrial operations, based on facts:
Objectively-determined rates Standardized work instructions Worker qualification Incentive pay: piecework and bonuses
Principals:
Develop a science for each element of an individuals work
Replacing rule-of-thumb
Scientifically select and then train, teach, and develop employees

Instead of letting them find a job and train themselves
Heartily cooperate with employees to get work done using scientific methods
Replacing force and persuasion
Divide work and responsibility almost equally between management and workers
The management take over all work for which they are better fitted than the workmen, while in the past almost all of the work and the greater part of the responsibility were thrown upon the men.
Claude S. George, The History of Management Thought (Englewood Cliffs, NJ: Prentice-Hall Inc., 1972) P. 93
Taylor called for a mental revolution Intended as a win-win
Ripped from todays promotional e-mail, from Supply Chain Digest:

Fortna White Paper The Secrets of Applying Lean to Distribution Operations In 2007, a major U.S. big box retailer implemented lean across its network of distribution centers. Within a year, and coupled with a full labor management implementation, the retailer realized $1 million in savings at each facility--and annually thereafter. Impressive -- but not uncommon. Typically, companies that implement lean in their distribution centers can expect to see a 10-20 percent increase in productivity. Improvements as high as 30 to 50 percent are not unusual with a comprehensive labor management program that includes
lean, engineered labor standards, labor management software and incentives.
Click here to learn more about the Six Secrets of Success and how Lean Principles could bring double digit gains to your operation!
Frank
(1868-1924) & Lillian Gilbreth Accepted to MIT, but laid bricks Reduced physical motions required by ~300%
Improved tools & methods
Time/Motion Basis
study
Therblig basic hand movements
for process and flow charting

8
General Administrative Theory

Henri
Fayol Concept: management a function

Universality of Management Definable and teachable Plan, organize, command, coordinate, control
Published
in 1916, virtually ignored outside of France until 1949


Fayols
Authority Discipline Unity of Command Unity of Direction Subordination of Individual Interests Remuneration Centralization Scalar Chain Order Equity Stability of Tenure Initiative Esprit de Corps
14 principles:
Specialization Efficiency Gives managers the right to give orders Obedience and respect for rules One man, one boss Organization has single plan to the General Interest Fair rewards for service Degree employees involved in decisionmaking Line of authority Place for everyone and everyone in place Kindliness and Justice Orderly personnel planning Harness worker initiative Team spirit builds harmony 10
Division of Work

Max Weber Scientific Management for the Information Factory Theory of authority based on an ideal type of organization (bureaucracy):
Rational Predictable Impersonal Technical competency Authoritarian

11

Jobs broken down into simple, routine, and well-defined tasks Managers are career professionals, not owners of units they manage Positions organized in a hierarchy with a clear chain of command
Division of Labour Career Orientation Authority Hierarchy
A bureaucracy should have Formal Selection Formal Rules and Regulations
Impersonality
Uniform application of rules and controls, not according to personalities
People selected for jobs based on technical qualifications
System of written rules and standard operating procedures
Exhibit S1-2
12

Relevance
to Project Management:
Task definition Requirement for chain of command Technical qualifications Written rules, Standard procedures Uniform application PMP
13
Division of Labor Authority Hierarchy Formal Selection Formal Rules and Regulations Impersonality Career Orientation
Quantitative Approach
Synonymous:
Operations Research, Management Science Post-1945 Mathematical and statistical:

Linear programming Network Optimization Inventory scheduling Simulations
14
Contingency Approach
Contingency
Approach Defined:
There is no one universally applicable set of management principles (rules) by which to manage organizations Organizations are individually different, face different situations (contingency variables), and require different ways of managing Earlier thinkers believed in the universality of their models
15
Contingency Approach
Contingency
Variables / Dimensions, a sample:

Organization Size Routineness of Tasks Environmental Uncertainty Individual Differences
Many
more identified
16
Systems Approach
System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole Basic Types of Systems Closed systems
Are not influenced by and do not interact with their environment (all system input and output is internal)
Open systems
Dynamically interact with their environments by taking in inputs and transforming them into outputs, which are then distributed back into the environments
17
Systems Approach
System Transformation Process Employees Work Activities Management Activities Technology and Operations Methods Feedback
Inputs Raw Materials Human Resources Capital Technology Information
Outputs Products and Services Financial Results Information Human Results
Exhibit S1-4
18
Organizational Behavior
Human Driven
Behavior at Work thinking into:
People are the most important asset Incentive Plans Designing work environment Communication styles
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Exhibit S1-3
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Hawthorne Study:
Elton Mayo and the Western Electric Hawthorne Plant, 1924 Intended to study relationship between lighting and productivity
Altered light levels, measured productivity No matter how light altered, productivity rose! Conclusion: attention to conditions improved productivity
Additional findings and learning:

Psychological performance factors Sociological performance factors Self-created norms and output standards Self-regulation of output A host of hitherto unsuspected factors
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Hawthorne
Study Update:
2008, original data rediscovered Original conclusion likely flawed Lighting always changed over the weekend
Historically: productivity high on Mondays
Productivity fell when experiments ended

Ended in summerhistorically low productivity
(2009, June 4) Questioning the Hawthorne Effect. The Economist.
22
Relevance to Project Management

Approach Detail Quantitative Engaged mathematics Modeling

Network optimization Decision Tree Sensitivity Analysis Simulation
Contingency
Adaptation
as counterpoint to
Optimization
One Size wont fit all Concept of Variables / Dimensions Framework for analysis
Systems
Systems
Thinking
Project as an Open System Project is a system Project has internal systems

23
Current Trends and Challenges

Globalization:
Communications:
Time-zones, holidays, language Cultural differences re: disagreement
Trust:
Value and contribution
Work Practices:
Ensure adoption of common practices
Tools:
Planning, monitoring, reporting, issue management Communications: Voice, image, data
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Ethics:
Professional Ethics
PMI code, applicable to members and/or credential holders http://www.pmi.org/AboutUs/Pages/Code ofEthics.aspx
Business Ethics:
Nortel, WorldCom, Enron, SOX Bernard L. Madoff Investment Securities LLC Bear Stearns, Lehman Bros. Basel II +
25

Workplace Diversity
Staff heterogeneous in terms of gender, race, ethnicity, physical disability, or other characteristics
A global issue Canada recognizes and celebrates differences Managers must make organizations more accommodating
Religious days Family responsibilities Harassment
An expat perspective
As manager As managee
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Entrepreneurship
Ability to achieve results, despite obstacles

Work Habits Self-Belief Risk taking Innovation Open mindedness Question status quo Idea generation: who, what, when, where, why, how
27

Entrepreneurship
Ownership
Treating the Project as your own business Understand why its a good product Spot more opportunities Sell:
To the organization To the team
http://www.icfi.com/Publications/Perspectives-2004/IT-implementation-management.asp
28

E-Business
World:
Theres a certification for that Recognizes the rapid evolution of the subject area PME: Project Manager E-business certification
http://www.icecc.com/
29
Learning Organization
Defined:
An organization that has developed the capacity to continuously learn, adapt, and change through the practice of knowledge management by employees
Knowledge
Management:
Acquire Share Apply

30
Exhibit 5-10
31
Characteristics:
Team-based design to empower employees Extensive, open information sharing Leadership provides a shared vision of the future, support, encouragement Culture of shared values, trust, openness, and a sense of community
Significance:
Project Team PMO

32
Quality Management
Defined:
A philosophy of management driven by continual improvement and responding to customer needs and expectations
33
Quality Management
Characteristic Customer Focus Continual Improvement Attention to Work Process Improve quality of everything Accurate Measurement Empowered Employees Application to PM Stakeholder Management Project Delivery Tools Project Delivery Process All the steps Actual vs. Budget vs. Estimate Everyone contributes
34
What weve achieved

Management
theories are different ways of looking at the same issue:

Management Theories
Exhibit S1-6
Ways
of looking a the M in PM
35
Quiz Preview
Which
of the following decisions involves the management function of controlling?

A. When is a performance deviation significant? B. How should jobs be designed? C. How difficult should individual goals be? D. When is the right time to stimulate conflict?
36
Quiz Preview
Richard is a manager at a large hospital. He has spent his day arranging the work schedules of employees for the next month. He had to ensure that there was a registered nurse on every shift, and that each was assigned to the area that best suited their qualifications. He spent his day __________.
A. Planning B. Organizing C. Delegating D. Controlling
37
M/T Preview
Name
and describe two of the six characteristics Max Weber used to describe the ideal organization (4 Marks).
Managers are career professionals, not owners of units they manage Jobs broken down into simple, routine, and well-defined tasks
Division of Labour Career Orientation A bureaucracy should have Impersonality Formal Selection Formal Rules and Regulations
System of written rules and standard
Positions organized in a hierarchy with a clear chain of command
Authority Hierarchy
Uniform application of rules and controls, not according to personalities
People selected for jobs based on technical qualifications
Exhibit S1-2
38

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PMGT 402 Project Leadership: Skills for Project Managers

Housekeeping Update Management Yesterday and Today:

Week 2 Management Yesterday and Today

Week 2 Management Yesterday and Today

Management Yesterday and Today

Week 2 Management Yesterday and Today

Scientifically select and then train, teach, and develop employees

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

Week 2 Management Yesterday and Today

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

lean, engineered labor standards, labor management software and incentives.

Week 2 Management Yesterday and Today

Therblig basic hand movements

for process and flow charting

Week 2 Management Yesterday and Today

General Administrative Theory

Fayol Concept: management a function

in 1916, virtually ignored outside of France until 1949

General Administrative Theory

General Administrative Theory

Rational Predictable Impersonal Technical competency Authoritarian

Week 2 Management Yesterday and Today

General Administrative Theory

Division of Labour Career Orientation Authority Hierarchy

A bureaucracy should have Formal Selection Formal Rules and Regulations

Uniform application of rules and controls, not according to personalities

People selected for jobs based on technical qualifications

System of written rules and standard operating procedures

General Administrative Theory

Week 2 Management Yesterday and Today

Operations Research, Management Science Post-1945 Mathematical and statistical:

Variables / Dimensions, a sample:

Week 2 Management Yesterday and Today

Week 2 Management Yesterday and Today

Inputs Raw Materials Human Resources Capital Technology Information

Outputs Products and Services Financial Results Information Human Results

Behavior at Work thinking into:

Week 2 Management Yesterday and Today

Additional findings and learning:

Week 2 Management Yesterday and Today

Productivity fell when experiments ended

Week 2 Management Yesterday and Today

Relevance to Project Management

Approach Detail Quantitative Engaged mathematics Modeling

Project as an Open System Project is a system Project has internal systems

Week 2 Management Yesterday and Today

Current Trends and Challenges

Current Trends and Challenges

Current Trends and Challenges

Current Trends and Challenges

Ability to achieve results, despite obstacles

Week 2 Management Yesterday and Today

Current Trends and Challenges

Week 2 Management Yesterday and Today

Current Trends and Challenges

Week 2 Management Yesterday and Today

Acquire Share Apply

Week 2 Management Yesterday and Today

Project Team PMO

Week 2 Management Yesterday and Today

Week 2 Management Yesterday and Today

What weve achieved