Table of Contents

Project Human Resource Management 1

Processes involved in Process Human Resource Management 1
Develop Human Resource Plan 1
Acquire the Project Team 4
Develop Project Team 5
Key of Managing People 12
Motivation Theories 12
Maslow’s Hierarchy of Needs 13
Motivation-Hygiene Theory 15
McClelland's Theory of Needs 16
Douglas McGregor's XY Theory, and William Ouchi's Theory Z 17
Thamhain and Wilemon’s Ways to Have Influence on Projects 18
Power and Types of Power 19
Improving Effectiveness: The 7 Habits of Highly Effective People 21
Developing the Human Resources Plan 22
Acquiring the Project Team 28
Resource Loading 28
Resource leveling 29
Developing the Project Team 30
Tuckman Model of Team Development 30
Myers‐Briggs Type Indicator (MBTI) 32
Managing the Project Team 34
Summary 36
References 37
What is the Project Human Resource Management?

Project Human Resource Management includes the processes that organize, manage, and lead
the project team. The project team is comprised of the people with assigned roles and
responsibilities for completing the project. Project team members may have varied skill sets, may
be assigned full or part-time, and may be added or removed from the team as the project
progresses. Project team members may also be referred to as the project's staff. Although specific
roles and responsibilities for the project team members are assigned, the involvement of all team
members in project planning and decision making is beneficial. Participation of team members
during planning adds their expertise to the process and strengthens their commitment to the
project.

Processes involved in Process Human Resource Management

Develop Human Resource Plan

Human resource management is a plan to organize and lead the project team. Human resource
plan process describes how the project manager will manage the staffs, team building, assess and
improve the project team. It includes project organization charts and the timetable for staff
acquisition and release, and may also include identification of training needs, team-building
strategies, recognition programs, compliance considerations and safety issues.

Develop Human Resource Plan -Inputs

 Project Management Plan
Project Management plan is a document which tells about how a project is to be managed,
executed and controlled. It may be a summary level or detailed plans depending upon the
requirements of the project. In the subsidiary plans, the project management plan integrates the
entire baseline from the planning processes.
The subsidiary plans include, but are not limited to:
• Scope Management Plan
• Schedule Management Plan
• Cost Management Plan
• Quality Management Plan
• Human Resource Plan
• Communications Management Plan
• Risk Management Plan
• Procurement Management Plan
Activity Resource Requirements
It provides information on what resources will be needed to complete the work on each of the
activities within the project. When carrying out the time management planning processes,

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general estimates were created for human resource needs, and they will now be more thoroughly
evaluated and estimated within this process.
Enterprise Environmental Factors
This will give information about organizational structure and infrastructure of company. These
provide vital background when performing the develop human resource plan process
Organizational Process Assets
These will include aspects such as examples for previous similar resource project plans,
organizational policies procedures and guidelines with regard to human resources, or special
corporate or competences for the provision of key knowledge skills and experience for the
project.
Develop Human Resource Plan -Inputs
 Organizational Charts and Position Descriptions
Organizational charts are the graphical diagrams to explain the authority and reporting lines
in the project. Human resource management plan is the staffing management plan it describes
about when the staff will recruit in the project, how the staff will be trained and when the staff
will be relived from the project.
Matrix
The type which is used most often is called the responsibility assignments matrix (RAM).
These can be shown as a table with the left hand column listing the various work packages, and
the remaining columns describing the various roles.
Text
Text is a simple document which describes the position role within the project, what their
responsibilities will be, what the job involves and the qualifications needed to fill such a
position. This particular format is particularly useful when recruiting appropriate individuals for
roles within the project.
Networking
This is the second main outputs of develop human resource plan process, and describes the
communication process with others within your network of contacts. The main purpose here is to
gain an understanding of the political and organizational forces that may influence the project.
Organizational Theory
Teams or groups behave differently than when they work as an individual, and it is vital that the
project manager understands how such teams behave. There have been various studies and tools
developed to help understand organizational theory, and it is important that the project manager
up next themselves familiar with these as they will have a huge positive impact on the project in
helping it to be successful.
Expert Judgment
When developing the human resource management plan, expert judgment is used to list the
preliminary requirements for the required skills. Assess the roles required for the project based
on standardized role descriptions within the organization. Determine the preliminary effort level
and number of resources needed to meet project objectives. Determine reporting relationships

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needed based on the organizational culture. Provide guidelines on lead time required for staffing,
based on lessons learned and market conditions. Identify risks associated with staff acquisition,
retention, and release plans. Identify and recommend programs for complying with applicable
government and union contracts.
Meetings
Meeting is the best opportunity for a project manager to distribute information and communicate
with the team and stakeholders. Meetings enables project team members to agree how the human
resource management plan will be implemented.
Develop Human Resource Plan -Inputs
 Project Management Plan
Project Management plan is a document which tells about how a project is to be managed,
executed and controlled. It may be a summary level or detailed plans depending upon the
requirements of the project. In the subsidiary plans, the project management plan integrates the
entire baseline from the planning processes.
The subsidiary plans include, but are not limited to:
• Scope Management Plan
• Schedule Management Plan
• Cost Management Plan
• Quality Management Plan
• Human Resource Plan
• Communications Management Plan
• Risk Management Plan
• Procurement Management Plan
Activity Resource Requirements
It provides information on what resources will be needed to complete the work on each of
the activities within the project. When carrying out the time management planning processes,
general estimates were created for human resource needs, and they will now be more thoroughly
evaluated and estimated within this process.
Enterprise Environmental Factors
This will give information about organizational structure and infrastructure of company.
These provide vital background when performing the develop human resource plan process
Organizational Process Assets
These will include aspects such as examples for previous similar resource project plans,
organizational policies procedures and guidelines with regard to human resources, or special
corporate or competences for the provision of key knowledge skills and experience for the
project.

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Develop Human Resource Plan -Outputs
 Human Resource Plan
Project management plan provides guidance on how project human resources should be
defined, staffed, managed, controlled, and eventually released.
The structure of this important document consists of:
• Roles and responsibilities
• Organization charts
• The staffing management plan
Roles and Responsibilities
Roles and responsibilities explain each role that is needed on the project, provide their
title, and describe their level of authority, responsibilities, and their knowledge, skills and level
of competency needed in order to carry out their role within this project.
Project Organization Charts
Organization chart is a graphic display of project team members and their reporting
relationships.
Staffing Management Plan
Staffing management plan is a part of the human resources plan within the project
management plan and describes when and how human resource requirements will be met. It
includes:
• The staff acquisition processes
• A timetable for staffing requirements
• A description of how and when staff will be released from the project
• Staff training and development needs
• Health and safety policies

Acquire the Project Team

The process of acquiring project team is an activity that allows selecting and approving human
resource availability according to the list of required skills and criteria for choosing human
resource for the purpose of obtaining the team necessary to accomplish project work.

There are three inputs to the acquire project team process:

Project management plan.
The human resource plan contained within the project management plan is the main focus for
this particular process as it will document when resources will be needed, how long they will be
needed, and details of the roles and responsibilities for each.
It is important to remember that the project environment and availability of particular resources
will place constraints on your human resource plan, in addition other aspects such as your
culture, and whether your organization is a matrix or financially driven environment. Your
organizations human resource policies and procedures will need to be adhered to.

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As such, the main components of the human resource plan relevant to acquire project team
are:
Roles and responsibilities. As you might expect this describes each role, authority,
responsibility, and relevant competency for each individual or role on the project team.
Project organization charts. This is used to describe the reporting relationships within the same
and is often represented as a hierarchy chart or a responsibility assignment matrix (RAM).
acquire project team – The staffing management plan.
Staff acquisition, describing how new team members will be introduced both internally and
externally.
Resource calendars, which identify where each role is plans to be used as well as the
individual’s availability. Often a planning to all can be helpful here in setting up an individual’s
availability in the form of a histogram.
Staff release plan, describing how the members will be released from the team.
Training needs identifies segments of the work that will require some form of training.
Recognition and rewards defines the criteria for such reward and recognition.
Compliance lays down any licensing or regulatory requirements.
Safety describes any applicable safety policies or rules.
Enterprise environmental factors.
This input picked up on some aspects already mentioned above such as your organizational
infrastructure, values, work ethic, laws and regulations, and in addition your organizations
appetite for risk.
Organizational process assets.
With regard to human resources these would focus on organizational policies procedures and
guidelines, knowledge and competence bases, and any historical examples from previous similar
projects.

Develop Project Team is the process of improving competencies, team member interaction, and
overall team environment to enhance project performance. The key benefit of this process is that
it results in improved teamwork, enhanced people skills and competencies, motivated employees,
reduced staff turnover rates, and improved overall project performance. The inputs, tools and
techniques, and outputs of this process are depicted in the following figures below which depicts
data flow diagram of the process.

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Develop Project Team - Tools and Techniques
 Interpersonal Skills
Interpersonal Skills mean Communication and leadership skill among the persons.
Interpersonal skills, play a vital role in a project management. In a project management,
interpersonal skills are expected for improving the works among the team to achieve objectives.
There are some key behaviors that a project manager should demonstrate
Leadership
Project manager should have a skill to lead the team members and stakeholders. Project
manager has to know how to get things from the project team members. Project manager must
keep trust on their team members they will achieve the team goals. Project manager should also
treat their members with respect it will leads the team members to do work effectively to achieve
the goals of the project. Project manager should communicate with the team members about all
the project work stages and motivate the members to do their work. Project manager should

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know about all the finished work in the team and he has to evaluate all the finished work by their
team.
Motivation
Success of the project is depends on project team commitments. Project team
commitments based on the motivation. Motivation means self-satisfaction of the team members.
The project manager should explain to the team members about their job and nature of the job. If
they know about the job means team members will work according to that it will leads to job
satisfaction of the team members. Team members should motivate with the valuable payment of
salary according to their job it will increase the performance of the members. Project manager
should create a safety environment of members to work. By giving rewards and
recommendations also the project manager can motivate their team members.
Communication
Success of the project based on communication. Effective communication leads to the
higher performance. Project manager should maintain open communication with the team
members it improves relationship with the project team members. Listening is the part of
communication so the project manager should listen the team member’s opinions and
suggestions to achieve the goals. The project manager should follow the communication
channels then only the information will be passed to all the members in the project. Manager
should clearly communicate with the stake holders. Project manager should communicate right
people with right information at right time.
Influencing
Influencing is a strategy of sharing power and relying on interpersonal skills to get others
to cooperate towards common goals. Project manager should expand their influence within their
organization, learn to overcome obstacles and discover influencing strategies to help build
relationships. Through highly interactive activities and discussions, project manager can learn
how to assess influence situations, practice using a variety of influencing behaviors, and build
networks.
Decision Making
The ability to make decision skill is a most valuable skill in the project manager skills.
Strong decision making skills are necessary to choose the best options and choose the best
options. Poor decisions spoil the team goals.
Political and Cultural awareness
The project manager should have a skill of politics and power helps in project success.
Ignoring or avoiding politics and inappropriate use of power lead to difficult projects. Project
manager should have skills of global project environment, cultural diversity, mutual trust and use
of good communication planning.
Negotiation
Negotiation means get other parties to reach an agreement. Negotiation is an integral part
of project management. Negotiation increases the probability of success. Project manager should
have a capacity to analyze the situation. Project manager should able to differentiate between

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wants and needs. Project manager should focus common project goals. Project manager want to
maintain good rapport and relationship with team members
Training
The purpose of training is used to allow the individual to acquire new skills and hence
increase their ability to carry out the tasks within the project. Training will be give by specialist
in the particular field. Training increases the human assets of an organization which is normally
be paid for by the performing organization and should not be funded by the customer or the
project.
Team Building
With the good team building skills project manager can gather the members around a
common team objectives. Team building increases the performance of the team members.
Project manager can get the ideas for achieve the goals of the team it also leads to increase the
members performance. Project manager should keep open communication with the members
then only members will express their problems and feelings. Project manager should maintain
the trust on their team members it will leads the project to achieve the goals.
Team Building Activities
Team events encourage positive team dynamics to develop and mature. Engaging people
in activities other than the project work allows them to get to know each other in a more relaxed
setting and is quite effective in building team esprit de corps. In addition, this allows people to
find ways to work together in a non-stressful environment that can then be carried back to the
workplace
There are many types of team building programs in use. Each type is suitable for
addressing certain types of team building requirements. Following are some of the most common
types of team building programs
• Corporate conferences
• Executive team building and guidance programs
• Adventure programs
• Outdoor sports
• Game shows
• Youth programs
• Religious or charity programs sponsored by the organization
• Management training programs
• White-water rafting
• Residential workshops
Ground Rules
Ground rules are the rules lay down the boundaries of behavior on a project. Guidelines
are used to decreases misunderstandings and increases productivity.

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Co-location
Co-location refers to locating as many project members as possible in the same place. Co-
location makes communication easier. It engenders a sense of team identity that is difficult to
develop when people cannot socially interact with each other.

Manage Project Team

 Manage Project team process is also done during project executing. Manage
Project Team involves tracking team member performance, providing feedback,
resolving issues, and coordinating changes to enhance project performance. The main
task of the process is
• To observe the team behavior
• To manage conflicts
• To resolve issues
• To appraise team member performance
Manage Project team-Tools and techniques
 Observation and Conversation
It is the main tool used by the project manager to get closer with the team members. By
this method project manager can engage with the team to determine any problems in particular
morale so that it can be resolved.
Project Performance Appraisals
Performance appraisal is the systematic evaluation of the performance of team members in
the project. Performance appraisal is used to understand the capabilities of a team member for
further growth and development.
Interpersonal skills
Effective project manager should have different types of skills like management skills,
technical knowledge and interpersonal skills. Project manager work closely with the team
members and stake holders so the project manager should have skills to maintain them and
reduce the conflicts in the team. Interpersonal skills assist project managers to make project
effectively. Interpersonal skills play a vital role in the success of the project. There are three
important skills for the project manager, and these are leadership, influencing skills, and
effective decision-making.
Leadership
Project manager should have a skill to lead the team members and stakeholders. Project
manager has to know how to get things from the project team members. Project manager must
keep trust on their team members they will achieve the team goals. Project manager should also
treat their members with respect it will leads the team members to do work effectively to achieve
the goals of the project. Project manager should communicate with the team members about all
the project work stages and motivate the members to do their work. Project manager should
know about all the finished work in the team and he has to evaluate all the finished work by their
team.

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Influencing
Influencing is a strategy of sharing power and relying on interpersonal skills to get others to
cooperate towards common goals. Project manager should expand their influence within their
organization, learn to overcome obstacles and discover influencing strategies to help build
relationships. Through highly interactive activities and discussions, project manager can learn
how to assess influence situations, practice using a variety of influencing behaviors, and build
networks.
Decision Making
The ability to make decision skill is a most valuable skill in the project manager skills.
Strong decision making skills are necessary to choose the best options and choose the best
options. Poor decisions spoil the team goals.
Conflict Management
Managing conflict in a project team will ensure that team morale and performance remains
high. Whenever conflict cannot be resolved it should be escalated to a level of management
where it can be dealt with. Conflicts may occur between the project manager and other functional
managers or with, or within, the team. In severe situations, conflict may need to be escalated to
human resources department. There are five conflict resolution techniques. These techniques are
as follow.
• Withdraw/Avoid
• Smooth /Accommodate
• Compromise/Reconcile
• Force/Direct
• Collaborate/Problem Solve
Withdraw/Avoid
In this technique project manager will avoid the conflict. Project manager will let this issue
be solved by itself or just forget it. This technique saves project manager previous time that
project manager can invest in some other productive activities. Project manager can use this
technique in the following cases when there is a heated argument among parties and project
manager want to give them some cooling time, when there is limited information available about
conflict.
Smooth/Accommodate
Smooth or accommodate is a technique to avoid tough discussion in a project team. In
smoothing project manager give importance to other parties. This technique can be used when a
project manager need a temporary solution to the problem. This technique creates goodwill and
gives sufficient time to find a permanent solution.

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Compromise/Reconcile
In this technique project manager take suggestions from both sides and try to make a
compromise. This technique brings faster result, lowers the stress, keeps all parties cool and find
the permanent solution for the problem. Project manager can use this technique when all parties
involved in the conflict need to win and need a temporary solution to move forward quickly.

Force/Direct
In this technique project manager agree with one party's suggestion and enforce their
wishes. This is a win-lose situation and can demoralize team members. Project manager can use
this technique when project manager know one party is right and don't have time to investigate.
This technique provides a quick solution to the problem.
Collaborate /Problem Solve
There is where the problem is confronted with the objective of determining the root cause
of the problem so that it can be resolved. In this technique root cause of the problem will be
diagnosed and resolved.

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 Key to Managing People

The purpose of project management is to bring together people, processes and tools to
accomplish a common objective. It follows, then, that one of the most important elements of
project management is managing the resources that actually do the work. In practice, however,
many PMs focus on measuring resources rather than acting as a force multiplier that understands
and motivates their team. The Psychologists and management theorists have devoted much
research and thought to the field of managing people at work.

Important areas related to project management include:

Motivation theories
Influence and power
Effectiveness

Motivation Theories

Extrinsic motivation refers to behavior that is driven by external rewards such as money, fame,
grades, and praise. This type of motivation arises from outside the individual, as opposed to
intrinsic motivation, which originates inside of the individual.

Extrinsic Motivation Can Involve Tangible or Psychological Rewards

Extrinsic motivation is usually defined as our tendency to engage in activities in order to gain
some type of known, external reward.
It is important to note that these rewards can be either tangible or psychological in nature. Money
and trophies are two common types of tangible rewards. People engage in activities that they
might normally not find terribly enjoyable or rewarding in order to earn a wage. Athletes often
engage in strenuous and difficult training sessions in order to be able to compete in sporting
events in order to win trophies and awards.
Psychological forms of extrinsic motivation can include praise and public acclaim. A child might
clean her room in order to receive positive praise from her parents. An actor might perform in a
role in order to obtain attention and acclaim from his audience. In both of these examples, while
the reward is not physical or tangible, it is a type of motivating reward that is external to the
actual process of participating in the event.

External factors like tangible rewards or managerial pressure are examples of extrinsic
motivators in the workplace. Extrinsic motivation isn't sufficient to motivate employees alone,
because external factors have a variable meaning amongst different people.

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Intrinsic motivation refers to behavior that is driven by internal rewards. In other words, the
motivation to engage in a behavior arises from within the individual because it is naturally
satisfying to you. This contrasts with extrinsic motivation, which involves engaging in a
behavior in order to earn external rewards or avoid punishment.

The factors they identify as increasing intrinsic motivation include:

 Challenge: People are more motivated when they pursue goals with personal meaning
and when attaining the goal is possible but not necessarily certain. These goals may also
relate to their self-esteem when performance feedback is available.
 Curiosity: Internal motivation is increased when something in the physical environment
grabs the individual's attention (sensory curiosity). It also occurs when something about
the activity stimulates the person to want to learn more (cognitive curiosity).
 Control: People want control over themselves and their environments and want to
determine what they pursue.
 Cooperation and competition: Intrinsic motivation can be increased in situations where
people gain satisfaction from helping others. It also applies to cases where they are able
to compare their own performance favorably to that of others.
 Recognition: People enjoy having their accomplishment recognized by others, which can
increase internal motivation.

Imagine two administrative assistants: Chris, who loves the written word, and Pat, who dislikes
writing. Chris would likely be intrinsically motivated to write the company newsletter each
month but Pat wouldn't be. If you incentivized the writing, Pat might respond if the reward were
worth it, but then again, might not.

Maslow’s Hierarchy of Needs

A Theory of Human Motivation, the American psychologist Abraham Maslow proposed that
healthy human beings have a certain number of needs, and that these needs are arranged in a
hierarchy, with some needs (such as physiological and safety needs) being more primitive or
basic than others (such as social and ego needs). Maslow’s so-called ‘hierarchy of needs’ is often
presented as a five-level pyramid, with higher needs coming into focus only once lower, more
basic needs are met.
Maslow called the bottom four levels of the pyramid ‘deficiency needs’ because a person does
not feel anything if they are met, but becomes anxious if they are not. Thus, physiological needs
such as eating, drinking, and sleeping are deficiency needs, as are safety needs, social needs such
as friendship and sexual intimacy, and ego needs such asself-esteem and recognition. In contrast,
Maslow called the fifth level of the pyramid a ‘growth need’ because it enables a person to ‘self-
actualize’ or reach his fullest potential as a human being. Once a person has met his deficiency

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needs, he can turn his attention to self-actualization; however, only a small minority of people
are able to self-actualize because self-actualization requires uncommon qualities such as honesty,
independence, awareness, objectivity, creativity, and originality.

A satisfied need is no longer a motivator

Specific examples of these types are given below, in both the work and home context. (Some of
the instances, like "education" are actually satisfiers of the need.)
Need Home Job

self- education, religion, hobbies,

training, advancement, growth, creativity
actualization personal growth

approval of family, friends,

esteem recognition, high status, responsibilities
community

teams, depts, coworkers, clients,

belongingness family, friends, clubs
supervisors, subordinates

freedom from war, poison,

safety work safety, job security, health insurance
violence

physiological food water sex Heat, air, base salary

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Motivation-Hygiene Theory

Herzberg's findings revealed that certain characteristics of a job are consistently related to job
satisfaction, while different factors are associated with job dissatisfaction. These are:

Factors for Satisfaction Factors for Dissatisfaction

Company policies
Achievement
Supervision
Recognition
Relationship with supervisor and peers
The work itself
Work conditions
Responsibility
Salary
Advancement
Status
Growth
Security

Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existant at workplace, then they lead to
dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable
in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to
work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are
required to avoid dissatisfaction. These factors describe the job environment/scenario. The
hygiene factors symbolized the physiological needs which the individuals wanted and expected
to be fulfilled. Hygiene factors include:

 Pay - The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
 Company Policies and administrative policies - The company policies should not be too
rigid. They should be fair and clear. It should include flexible working hours, dress code,
breaks, vacation, etc.
 Fringe benefits - The employees should be offered health care plans (mediclaim), benefits
for the family members, employee help programmes, etc.

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  Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipments should be updated and well-maintained.
 Status - The employees’ status within the organization should be familiar and retained.
 Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
 Job Security - The organization must provide job security to the employees.

Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are called
satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include:

 Recognition - The employees should be praised and recognized for their

accomplishments by the managers.
 Sense of achievement - The employees must have a sense of achievement. This depends
on the job. There must be a fruit of some sort in the job.
 Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
 Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control but
retain accountability.
 Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.

McClelland's Theory of Needs

In his acquired-needs theory, David McClelland proposed that an individual's specific needs are
acquired over time and are shaped by one's life experiences. Most of these needs can be classed
as achievement, affiliation, or power. A person's motivation and effectiveness in certain job
functions are influenced by these three needs. McClelland's theory sometimes is referred to as
the three need theory or as the learned needs theory.

Achievement
People with a high need for achievement (nAch) seek to excel and thus tend to avoid both low-
risk and high-risk situations. Achievers avoid low-risk situations because the easily attained
success is not a genuine achievement. In high-risk projects, achievers see the outcome as one of

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chance rather than one's own effort. High nAch individuals prefer work that has a moderate
probability of success, ideally a 50% chance. Achievers need regular feedback in order to
monitor the progress of their acheivements. They prefer either to work alone or with other high
achievers.

Affiliation
Those with a high need for affiliation (nAff) need harmonious relationships with other people
and need to feel accepted by other people. They tend to conform to the norms of their work
group. High nAff individuals prefer work that provides significant personal interaction. They
perform well in customer service and client interaction situations.

Power
A person's need for power (nPow) can be one of two types - personal and institutional. Those
who need personal power want to direct others, and this need often is perceived as undesirable.
Persons who need institutional power (also known as social power) want to organize the efforts
of others to further the goals of the organization. Managers with a high need for institutional
power tend to be more effective than those with a high need for personal power.

Douglas McGregor's XY Theory, managing an X Theory boss, and William Ouchi's

Theory Z

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his
1960 book 'The Human Side Of Enterprise'. Theory x and theory y are still referred to commonly
in the field of management and motivation, and whilst more recent studies have questioned the
rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to
develop positive management style and techniques. McGregor's XY Theory remains central to
organizational development, and to improving organizational culture.
McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing
people, which under the pressure of day-to-day business are all too easily forgotten.
McGregor's ideas suggest that there are two fundamental approaches to managing people. Many
managers tend towards theory x, and generally get poor results. Enlightened managers use theory
y, which produces better performance and results, and allows people to grow and develop.
McGregor's ideas significantly relate to modern understanding of the Psychological Contract,
which provides many ways to appreciate the unhelpful nature of X-Theory leadership, and the
useful constructive beneficial nature of Y-Theory leadership.

Theory X ('authoritarian management' style)

 The average person dislikes work and will avoid it if he/she can.
 Therefore most people must be forced with the threat of punishment to work towards
organisational objectives.

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  The average person prefers to be directed; to avoid responsibility; is relatively
unambitious, and wants security above all else.
Theory Y ('participative management' style)
 Effort in work is as natural as work and play.
 People will apply self-control and self-direction in the pursuit of organisational
objectives, without external control or the threat of punishment.
 Commitment to objectives is a function of rewards associated with their achievement.
 People usually accept and often seek responsibility.
 The capacity to use a high degree of imagination, ingenuity and creativity in solving
organisational problems is widely, not narrowly, distributed in the population.
 In industry the intellectual potential of the average person is only partly utilised.

Theory Z - William Ouchi

First things first - Theory Z is not a Mcgregor idea and as such is not Mcgregor's extension of his
XY theory.
Theory Z was developed by William Ouchi, in his book 1981 'Theory Z: How American
management can Meet the Japanese Challenge'. William Ouchi is professor of management at
UCLA, Los Angeles, and a board member of several large US organisations.
Theory Z is often referred to as the 'Japanese' management style, which is essentially what it is.
It's interesting that Ouchi chose to name his model 'Theory Z', which apart from anything else
tends to give the impression that it's a Mcgregor idea. One wonders if the idea was not
considered strong enough to stand alone with a completely new name... Nevertheless, Theory Z
essentially advocates a combination of all that's best about theory Y and modern Japanese
management, which places a large amount of freedom and trust with workers, and assumes that
workers have a strong loyalty and interest in team-working and the organisation.
Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas
Mcgregor's XY theory is mainly focused on management and motivation from the manager's and
organisation's perspective.

Thamhain and Wilemon’s Ways to Have Influence on Projects

Thamhain and Wilemon have identified nine project influence factors project managers can use
to influence support staff and project team members:
1. Authority: the legitimate hierarchical right to issue orders

2. Assignment: the project manager’s perceived ability to influence a worker’s later work
assignments

3. Budget: the project manager’s perceived ability to authorize others’ use of discretionary
funds

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 4. Promotion: the ability to improve a worker’s position

5. Money: the ability to increase a worker’s pay and benefits

6. Penalty: the project manager’s perceived ability to dispense or cause punishment

7. Work challenge: the ability to assign work that capitalizes on a worker’s enjoyment of
doing a particular task

8. Expertise: the project manager’s perceived special knowledge that others deem important

9. Friendship: the ability to establish friendly personal relationships between the project
manager and others.

Ways to Influence that Help and Hurt Projects

• Projects are more likely to succeed when project managers influence people using:
– Expertise
– Work challenge

• Projects are more likely to fail when project managers rely too heavily on:
– Authority
– Money
– Penalty

Power is the potential ability to influence behavior to get people to do things they would not
otherwise do.

Types of power

1. Coercive Power
This form of power is based upon the idea of coercion. This means that someone is forced to do
something against their will. The main objective of coercion is compliance. This form of power
illustrates what happens when compliance is not obtained. According to French en Raven there
are also other forms of power that can be used in a coercive manner such as withholding rewards
or expertise or using referent power to threaten social exclusion. The force of power is also
associated positively with punitive behaviour and negatively associated with conditional reward
behaviour. This form of power often leads to problems. In many cases this form of power is
abused. Coercive power can lead to unhealthy behaviour and dissatisfaction at work. Leaders

19
who use this leadership style rely on threats in their management styles. Often these threats relate
to dismissal or demotion.

2. Reward Power

This type of power involves the ability of individuals to delegate matters they do not wish to do
to other people and to reward them for this. For managers in an organization it is a perceived
possibility to value or reward their subordinates’ good results in a positive manner. This form of
power is based on the idea that as a society we are more inclined to do things well when we are
getting something in return for this. The most popular forms are raises, promotions or
compliments. The problem with this form of power is that when the reward does not have
enough perceived value to others, the power is weakened. One of the frustrations when using
rewards is that they often need to be bigger than the last time if they are to have the same effect.
Even then, when they are given regularly, employees can become satiated by the rewards and as
a result, they will lose their effectiveness.

3. Legitimate Power
This form of power gives the ability to link certain feelings of obligation or notion of
responsibility to the management. Rewarding and punishing employees can be seen as a
legitimate part of the formal or appointed leadership role. Most managers in organizations
execute a certain degree of reward and punishment. Legitimate power is usually based on a role.
People always run with the pack and traditionally obey the one person with power which is
solely based on their position or title. This form of power can easily be overcome as soon as
someone loses their position or title. This power is a weak form to persuade and convince other
people.

4. Referent Power
This form of power is about management based on the ability to administer to someone a sense
of personal acceptance or approval. The leader in this form of power is often seen as a role
model. Their power is often treated with admiration or charm. This power emanates from a
person that is highly liked and people identify strongly with them in some way. A leader who has
referent power often has a good appreciation of their environment and therefore tends to have a
lot of influence. Responsibility in this form of power is heavy and one can easily lose oneself in
this. In combination with other forms of power, it can be very useful. Celebrities often have this
form of power in society, but also lose a lot of power because of certain circumstances.

5. Expert Power
This form of power is based on in-depth information, knowledge or expertise. These leaders are
often highly intelligent and they trust in their power to fulfil several organizational roles and
responsibilities. This ability enables them to combine the power of reward in the right mode. The

20
fact is that if someone has a particular expertise within an organization, they can often persuade
employees, who trust and respect them, to do things for them. This expertise is greatly
appreciated and forms the basis of this type of leadership.

Improving Effectiveness: The 7 Habits of Highly Effective People

Habit 1: Be Proactive®
Achieve extraordinary results by consistently executing their R & I (resourcefulness and
initiative) to break through barriers.

Habit 2: Begin With the End in Mind®

Develop an outcome-oriented mindset in every activity they engage in—projects, meetings,
presentations, contributions, etc.

Habit 3: Put First Things First®

Eliminate energy and time-wasting tendencies by focusing and executing on the team’s wildly
important goals with a weekly planning cadence.

Habit 4: Think Win-Win®

Lead teams that are motivated to perform superbly through a shared expectation and
accountability process.

Habit 5: Seek First to Understand, Then to Be Understood®

Create an atmosphere of helpful give-and-take by taking the time to fully understand issues, and
give candid and accurate feedback.

Habit 6: Synergize®
Demonstrate innovative problem-solving skills by seeking out differences and new and better
alternatives.

Habit 7: Sharpen the Saw®

Tap into the highest and best contribution of everyone on a team by unlocking the total strength,
passion, capability, and spirit of each individual.

21
 Developing the Human Resources Plan

The project manager must define the skills and knowledge required for each role within the team
and then assigns the appropriate responsibilities to each role to ensure that he or she has a
cohesive team. Successful project human resources management will build and maintain a team
that can bring the vision to life.
All project team members must have a role and associated responsibilities, and it is the project
manager's job to define these roles. This step describes how the project manager will staff,
manage, team build, assess and improve the project team. Therefore this process is executed
early within the project and is performed iteratively and interactively with other aspects of
planning such as time, cost and scope.

The project Human Resources (HR) management plan details the roles, responsibilities,
required skills and reporting relationships required for project success. It includes project
organization charts and the timetable for staff acquisition and release, and may also include
identification of training needs, team-building strategies, recognition programs, compliance
considerations and safety issues.
A necessary prerequisite for developing this plan is a detailed description of
the activities required by the project and the skills required to complete them. The plan will need
to take into account the availability of, or competition for, scarce or limited human resources
because other projects or departments may be competing for resources with the same
competencies or skill sets.

22
A project manager will often be managing his or her project in a matrix environment, which
demands a clear strategy and plan for managing project communications between all relevant
parties. Individuals and their usual line-managers need to be reassured that their performance and
development is recognized within this dual-reporting relationship.

One of the most useful formats is the responsibility assignment matrix (RAM). This is used to
illustrate the connections between work packages or activities and project team members.

23
One of the most useful formats is the responsibility assignment matrix (RAM). This is used to
illustrate the connections between work packages or activities and project team members. Other
names for this type of matrix are:
RAM - Responsibility Assignment Matrix
RACI - Responsible, Accountable, Consulted & Informed
ARCI - Accountable, Responsible, Consulted & Informed
LRC - Linear Responsibility Chart
These can be developed at various levels, for example a high-level RAM can define which
particular team is responsible each component of the work breakdown structure. This can then
be decomposed within the group to designate roles, responsibilities, and levels of authority for
specific activities. The benefit of the matrix format is that it shows all of the activities associated
with each team member and all team members associated with each activity. This also ensures
that there is only one person accountable for any one task to avoid confusion.

24
At it's simplest the RAM diagram can indicate who is responsible for what (as above), or it can
be produced in a format referred to as RACI as shown below.

These designations are used to indicate who in the team has which specific function for each
deliverable.
R - Responsible for doing the work
A - Accountable for the work being done
C - Must be consulted for input
I - Must be kept informed of progress and results
This example chart shows the work to be done in the left column as activities with the assigned
resources along the top. The RACI is useful when the team consists of internal and external
resources to ensure clear divisions of roles and expectations.
Traditional organization charts like the one shown below can be used to show positions and
relationships in a graphical, top-down format.

25
It is usually a good idea to draw up an organizational break down structure (OBS) and a chart
specifically for each individual project and to show only those departments and functions that are
relevant. This will help to make responsibilities and reporting structures clear to everyone
involved. This is particularly important for outside contractors who may have no previous
experience of dealing with the organization.
A project organization diagram should clearly show the reporting structure for the project with as
many levels as needed to express the project organization clearly. At the very least it needs to
show whom the project manager reports to and who reports to the project manager for their
respective project activities.
Detailed descriptions of team member responsibilities should be specified in position
descriptions and role-responsibility-authority forms. These documents detail responsibilities,
authority, competencies, and qualifications and can be used as templates for future projects,
especially when the information is updated throughout the current project by applying lessons
learned. Some responsibilities are usually detailed in the relevant sections of theproject plan.
For example,
• Risk register lists risk owners,
• Quality plan designates those responsible for carrying out quality assurance and quality
control activities.

The HR management plan provides guidance on how project human resources should be defined,
staffed, managed, controlled, and eventually released. The structure of this important document
consists of:

Role - Describes the portion of a project for which a person is accountable as well as their
authority, responsibilities, and boundaries. Examples include: engineer, business analyst, expert
user, etc. It also describes their knowledge, skills and level of competency needed in order to
carry out their role within this project.
Responsibility - Describes the work that a project team member is expected to perform in order
to complete the project's activities.

26
Authority - Levels of authority should match role responsibilities and include the right to assign
project resources, make decisions, and sign approvals.
Competency - Describes the skills required to complete specific activities.
Project Organization Charts - This is a graphic display of project team members and their
reporting relationships.
Staffing Management Plan - This is a part of the human resources plan within the project plan
and describes when and how human resource requirements will be met. It includes:
• The staff acquisition processes
• A timetable for staffing requirements
• A description of how and when staff will be released from the project
• Staff training and development needs
• Health and safety policies
The HR management plan can be formal or informal, highly detailed or broadly framed,
depending upon the needs of the project. The plan is updated continually during the project to
direct ongoing team member acquisition and development actions.

A resource histogram is a column chart that shows the number of resources assigned to a
project over time.

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 Acquiring the Project Team

Acquiring qualified people for teams is crucial.

 The project manager who is the smartest person on the team has done a poor job of
recruiting!
 Staffing plans and good hiring procedures are important, as are incentives for recruiting
and retention.
 Some companies give their employees one dollar for every hour that new people who
they helped hire works.
 Some organizations allow people to work from home as an incentive.

Why People Leave Their Jobs

• They feel they do not make a difference.
• They do not get proper recognition.
• They are not learning anything new or growing as a person.
• They do not like their coworkers.
• They want to earn more money.

Resource Loading
• Resource loading refers to the amount of individual resources an existing schedule requires
during specific time periods.
• Helps project managers develop a general understanding of the demands a project will make on
the organization’s resources and individual people’s schedules.
• Overallocation means more resources than are available are assigned to perform work at a
given time.

Example of Overallocated histogram

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Resource leveling is a technique for resolving resource conflicts by delaying tasks.
• The main purpose of resource leveling is to create a smoother distribution of resource use and
reduce over allocation.

Example of Resource leveling

Benefits of Resource Leveling

• When resources are used on a more constant basis, they require less management.
• It may enable project managers to use a justin‐time inventory type of policy for using
subcontractors or other expensive resources.
• It results in fewer problems for project personnel and the accounting department.
• It often improves morale.

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 Developing the Project Team

The main goal of team development is to help people work together more effectively to
improve project performance.
• It takes teamwork to successfully complete most projects.

Tuckman Model of Team Development

Dr Bruce Tuckman published his Forming Storming Norming Performing model in 1965. He
added a fifth stage, Adjourning, in the 1970s. The Forming Storming Norming
Performing theory is an elegant and helpful explanation of team development and behavior.
Forming
In this stage, most team members are positive and polite. Some are anxious, as they haven't fully
understood what work the team will do. Others are simply excited about the task ahead.
As leader, you play a dominant role at this stage, because team members' roles and
responsibilities aren't clear.
This stage can last for some time, as people start to work together, and as they make an effort to
get to know their new colleagues.

Storming
Next, the team moves into the storming phase, where people start to push against the boundaries
established in the forming stage. This is the stage where many teams fail.
Storming often starts where there is a conflict between team members' natural working styles.
People may work in different ways for all sorts of reasons but, if differing working styles cause
unforeseen problems, they may become frustrated.
Storming can also happen in other situations. For example, team members may challenge your
authority, or jockey for position as their roles are clarified. Or, if you haven't defined clearly how
the team will work, people may feel overwhelmed by their workload, or they could be
uncomfortable with the approach you're using.
Some may question the worth of the team's goal, and they may resist taking on tasks.
Team members who stick with the task at hand may experience stress, particularly as they don't
have the support of established processes or strong relationships with their colleagues.

Norming
Gradually, the team moves into the norming stage. This is when people start to resolve their
differences, appreciate colleagues' strengths, and respect your authority as a leader.
Now that your team members know one another better, they may socialize together, and they are
able to ask one another for help and provide constructive feedback. People develop a stronger
commitment to the team goal, and you start to see good progress towards it.

30
There is often a prolonged overlap between storming and norming, because, as new tasks come
up, the team may lapse back into behavior from the storming stage.

Performing
The team reaches the performing stage, when hard work leads, without friction, to the
achievement of the team's goal. The structures and processes that you have set up support this
well.
As leader, you can delegate much of your work, and you can concentrate on developing team
members.
It feels easy to be part of the team at this stage, and people who join or leave won't disrupt
performance.

Adjourning
Many teams will reach this stage eventually. For example, project teams exist for only a fixed
period, and even permanent teams may be disbanded through organizational restructuring.
Team members who like routine, or who have developed close working relationships with
colleagues, may find this stage difficult, particularly if their future now looks uncertain.

Tools and Techniques for Team Development

Training
 Training can help people understand themselves and each other, and understand how to work
better in teams.
 Team building activities include:
– Physical challenges
– Psychological preference indicator tools

Team-building activities
 Organizations can provide in-house team building training activities and use specialized
services provided by external companies specializing in this area.
 Using physical challengers and psychological preference indicator tools.
 A common tool for determining personality preferences is the Myers-Briggs Type Indicator
(MBTI).

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Myers‐Briggs Type Indicator (MBTI)
• MBTI is a popular tool for determining personality preferences and helping teammates
understand each other.
• Four dimensions include:
– Extrovert/Introvert (E/I)
– Sensation/Intuition (S/N)
– Thinking/Feeling (T/F)
– Judgment/Perception (J/P)
• NTs, or rationals, are attracted to technology fields.
• IT people vary most from the general population in their tendency to not be extroverted or
sensing.

Wideman and Shenhar’s Views on MBTI & Project Management*

• Most suited for project leadership:
– 100 percent: INTJ, ENTJ, ISTJ, ESTJ
– 50 percent: INTP, ENTP, ENFP, ENFJ
• Best suited as followers:
– 100 percent: INFJ, ISFJ
– 50 percent: INTP, ENTP, ENFP, ENFJ, ESFJ

32
• Not suited for project work:
– 100 percent: INFP, ISFP, ESFP, ISTP
– 50 percent: ENFP, ESTP
*Wideman, R. Max and Aaron J. Shenhar, “Professional and Personal Development: A Practical
Approach to Education and Training,” Project Management for Business Professionals, edited by Joan
Knutson, 2001, p. 375.

Social Styles

33
 Managing the Project Team

o Project managers must lead their teams in performing various project activities.
o After assessing team performance and related information, the project manager must decide:
 If changes should be requested to the project.
 If corrective or preventive actions should be recommended.
 If updates are needed to the project management plan or organizational
process assets.

Project Planning & Management Tools and Techniques for Managing Project Teams

Observation and conversation

Observation and conversation are used to stay in touch with the work and attitudes of project
team members. The project management team monitors indicators such as progress towards
deliverables, accomplishments that are a source of pride for team members, and interpersonal
issues.

Project Performance Appraisals

The length and complexity of the project, organizational policy, labor contract requirements, and
the amount and quality of regular communication determines the need for formal or informal
project performance appraisals. Project team members receive feedback from the people who
supervise their project work. Evaluation information also can be gathered from people who
interact with project team members by using 360-degree feedback principles, which means that
feedback regarding performance is provided to the person being evaluated from many sources,
including superiors, peers, and subordinates. Objectives include defining roles and
responsibilities, structuring time to ensure team members resolve unknown or unresolved issues,
developing individual training plans, and the establishing specific goals for future time periods.

Conflict Management
Greater productivity and positive working relationships are the results of successful conflict
management; where as scarce resources, scheduling priorities, and personal work styles are
major sources of conflicts. Team ground rules, group norms, and solid project management
practices, like communication planning and role definition, reduce the amount of conflict. If
differences of opinion are managed properly then they can be healthy and can lead to increased
creativity and better decision-making. When the differences become a negative factor, project
team members are initially responsible for resolving their own conflicts. The project manager
should help facilitate a satisfactory resolution incase conflict escalates. Conflict should be
addressed early and usually in private, using a direct, collaborative approach. If disruptive
conflict continues, increasingly formal procedures will need to be used, including the possible
use of disciplinary actions.

34
Issue Log
A written log can document persons responsible for resolving specific issues as and when they
arise in the course of managing a project team by a target date which helps the project team
monitor issues until closure. Issue resolution addresses obstacles that can block the team from
achieving its goals. These obstacles can include factors such as differences of opinion, situations
to be investigated, and emerging or unanticipated responsibilities that need to be assigned to
someone on the project team.

General Advice on Teams

• Be patient and kind with your team.
• Fix the problem instead of blaming people.
• Establish regular, effective meetings.
• Allow time for teams to go through the basic team‐building stages.
• Limit the size of work teams to three to seven members.
Plan some social activities to help project team members and other stakeholders get to know
each other better.
• Stress team identity.
• Nurture team members and encourage them to help each other.
• Take additional actions to work with virtual team members.

Using Software to Assist in Human Resource Management

• Software can help produce RAMS and resource histograms.
• By using project management software for human resource management, you can:
– Assign resources.
– Identify potential resource shortages or underutilization.
– Level resources.

Project Resource Management Involves Much More Than Using Software

• Project managers must:
– Treat people with consideration and respect.
– Understand what motivates people.
– Communicate carefully with people.
• Focus on your goal of enabling project team members to deliver their best work.

35
 Summary

Project Human Resources Management essentially means ensuring that the proper people are
working on a project. Good human resources management means that everyone is working
efficiently and the right people have been scheduled for the tasks they are best adapted for.
Human resources management is a key to any successful venture - not just successful projects.

In processing the Project Human Resources Management, there are four parts. First is to Develop
Human Resource Plan, is planning the people who are required for the project team. It involves
how many people are required to get the job done. The Human Resource Plan is the project
charter of Project Human Resources Management. Second is Acquiring the Project Team, this
process includes hiring, interviewing, training and negotiating with people. It is the process that
depends if the Human Resource Plan is reliable and measuring the accurate estimate of duration
and costs of the project. If there are too many employees that are hired, overallocation might
occur, and if there are too many employees are brought on, the project will be scattered. Third, is
the Develop Project Team, is to develop the teamwork of the project team. Team building
activities are held to strengthen the team. Team building activities create a sense of community
where trust and communication can run rampant. Sometimes conflict resolution must be
practiced when team members clash. It is important to take care of potential problems between
resources early before they become out of control. Lastly, the Managing of the project team, it is
a process to ensure that the Human Resources plan is implemented correctly. It means that the
project manager has to ensure teamwork between all team members and that the team is being
productive and efficient with tasks.

There are other things that are discussed in Project Human Resources Management. In the Key
Managing People, there are a lot of theories, from two kinds of theory, Abraham Maslow’s
Hierarchy of Needs. McGregor’s X and Y Theory, William Ouchi’s Z Theory, Motivation-
Hygiene Theory, McClelland ‘s Acquired-Needs Theory and Types of Power. In Developing
Human Resource Plan, there is organizational breakdown structure (OBS), the Responsibility
Assignment Matrix (RAM) and Resource histogram. In Developing the Project Team, there are
tools and techniques to strengthen the teamwork of the project team, and identifying the
differences in personalities such as the common tool Myers-Briggs Type Indicator (MBTI).
Lastly, the Managing the project team, where is the tools and techniques on how to effectively
manage a project team.

In all of the processes, theories, tools and techniques in the Project Human Resources
Management, it is implied that to finish the project, Human Resources management is needed.
Also, in Project Human Resources Management, the creating, building and the managing the
project team is crucial that it must be implemented correctly because it is where the project will
be created and perfected.

36
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