Friday, December 20, 2013

Mahaney and Lederer (2009) found that based on the agency theory, monitoring as an integral part of project planning and meetings as a means of monitoring could address shirking, particularly loafing and poor focus (p. 2). Improving poor focus has a significant effect on project success (p. 22). The study was able to confirm its hypotheses for some dimensions of monitoring and shirking. The study identified planning, responsibilities, comparison and meetings as the dimensions of monitoring (p. 12). Loafing and poor focus are the dimensions of shirking (p. 12). The results have implications for effective project management.
One implication is the importance of project context in determining effective project management activities and practices. A number of project management theories and best practices or standards have developed. The project management process goes through these phasesdefining, planning, executing, controlling, and closing (Wysocki et al., 2000, p. 79) to coincide with the project management life cycle. These phases comprise the stages to manage, especially the progress and completion of one stage to the other. These stages are continuous, successive, and cyclical to require effective project management. The phases also identify the various requirements and issues addressed through different management strategies such as cost control, contingency plans, quality control, and resource levelling (Wysocki et al., 2000, p. 263). Employing certain practices and implementing activities for each of the phases reflects effective project management. Strategic project management also emerged to explain effective project management as the development and use of strategies throughout the stages of the project in a manner that links the goals of the project with the expected outcomes (Callahan and Brooks, 2004, p. 17). This applies by requiring the identification of practices and activities that if implemented would usher the achievement of the expected project outcomes.
These project management principles have general application. However, the effective management activities and practices appropriate to actual projects depend on context. The study focused on IT project management. IT projects operate in a fast-paced environment. The rapidly changing technology requires that IT projects are completed on time, within the cost limitations, and with quality. Delays not only mean higher cost but could also mean losses for the client. IT projects also cater to diverse needs and addressing complex needs involves varying expectations on the output of the people involved in the project. IT projects are mostly pioneer activities that comprise a first in the industry or done by a firm for the first time. There are limited industry benchmarks or best practices to use in measuring project outcomes. (Mahaney and Lederer, 2009, p. 2) The context of IT projects means that the effective project management activities depend on the specifications of each IT project.

The study found that responsibilities and comparison, as dimensions of the monitoring phase, may have no significant effect on the shirking dimensions of loafing and poor focus. The explanation for this is the lack of benchmarks for responsibilities and there is an expectation that schedules are rarely met in IT projects. As such, there is little expectation for stringent repercussions for not completing tasks and fulfilling tasks on time. (Mahaney and Lederer, 2009, p. 2) This could be true when there is a high degree of flexibility on these aspects in a given project. An alternative explanation based on the context-based perspective is the different notion of loafing in IT projects. Loafing ordinarily means idleness. In IT projects, such as software development or computerisation, there are usually periods of testing and processing that involves idle waiting time but which forms part of the process. Loafing requires qualifications when added to the factors monitored. Organisational culture, work relations, and group dynamics (Callahan and Brooks, 2004, p. 144) can be used to qualify the items monitored in project management.

In projects implemented within an organisational culture that allows flexibility in work schedules as in some IT companies, the monitoring process may not need to consider loafing as a significant factor. However, work output from individuals or teams could be used as a means of monitoring work progress relative to project objectives and schedules. The project management strategy in this context could involve incentives for group performance and outcome-related motivation (Wysocki et al., 2000, p. 43, 240). The project manager could exercise flexibility in monitoring individual obligations and benchmarking individual performance but express strong expectation for the delivery of output that reasonably aligns with the plan and presented in meetings.
In other projects implemented within an organisational culture that require the accomplishment of individual responsibilities, loafing could be a significant consideration in the monitoring process. This takes a bigger importance when the industry context, within which the project is implemented, provides benchmarks for individual obligations. There are considerable best practices in construction projects and there are obligation delineations even for subcontractors. As such, the monitoring of loafing could comprise a reasonable project management practice. The project management strategy then involves incentives for the fulfilment of obligations and use of benchmarking to compare expectations with actual results (Wysocki et al., 2000, p. 244). Motivational practices then foster the use of certain processes in achieving results.

The monitoring process takes a different form depending on the project context. Monitoring can be done on an individual andor team level. The factors monitored could change in terms of priority and significance depending on the project context. The incentives and motivations to influence individual andor group work process also depend on the flexibility created by the context of the project. The expected outcomes and measurement of performance and project progress also depends on context. Project management effectiveness rests on the integration of context in management practices. 

Another implication is the importance of using multi-dimensional, multi-perspective, and multi-method approaches to effective project management. The multi-dimensional approach refers to the consideration of the various facets of a project, which comprise cost, time and performance (Wysocki et al., 2000, p. 8). The approach requires a three-way balance of the dimensions to achieve the desired results, which is the base measure of project management effectiveness. The multi-perspective approach considers more operational factors including the background of the project, the form, type and other substantive characteristics of the project, organisational behaviour and practices, and project comparison based on the dynamics of similar projects done (Callahan and Brooks, 2004, p. 144). By considering multiple perspectives, the plan is able to identify the directional focus of project management as well as plan for the possible issues or problems that could emerge from the project. A solid plan with the appropriate strategies and practices is a recipe for effective project management. A multi-method approach is necessary to match the multiple dimensions and perspectives involved in project management. The methods that require implementation in effective project management encompass leadership styles, stakeholder mapping, team management, change management, risk assessment, contingency planning, and problem resolution management (Wysocki et al., 2000, p. 244). The implementation of a combination of methods contributes to effective project management by providing a means of controlling project variables and guiding appropriate reactions to emerging conditions or situations.
In the study, the approach used is the agency model, which provides that a principal hires agents who contribute work to the project. The principal takes a supervisory role towards the agent to ensure the fulfilment of targeted results. The agents contribute work based on expectations of individual rewards. If the value of work contribution matches the value expected to be received by agents, then the value together with addition incentives ensures work outcomes. (Mahaney and Lederer, 2009, p. 3) By using a single model, the study was able to explain the planning and meeting dimensions of monitoring in addressing the loafing and poor focus dimensions of shirking. The study was also able to link poor focus as a determinant of project success. There were inconclusive results for the other dimensions of monitoring and shirking. 

The implication is that the agency theory is not sufficient to explain the factors explaining shirking and the impact on project success. Although this was only applied as a methodological model covering monitoring, shirking and project success as the variables, the use of only a single model accounted for the speculations to fill the inconclusive links between the some dimensions of the variables. To effectively manage a project and its stages, including the monitoring phase, multiple dimensions, approaches and methods are necessary to consider and tie-up the various factors affecting project processes and outcomes.

Knowledge management is one encompassing method and strategy that contributes to effective project management. Knowledge management refers to the management and beneficial use of the knowledge assets of organisations. Knowledge assets include information on the finances and cultural dynamics of the organisation, products and services offered, customer needs, and market dynamics. This also pertains to packaging information and delivering these to the appropriate individual at the right time. Information could be explicit and implicit based on experiences. Knowledge management facilitates effective communication and implementation. (Cope et al., 2007, p. 56) The research results provide that the diligent monitoring of task fulfilment does not necessarily reduce shirking and ensure project success because diligent monitoring needs to be accompanied by monitoring of task focus (Mahaney and Lederer, 2009, p. 24). Knowledge management facilitates the prioritisation of tasks to monitor. Experiences of project managers on the tasks to prioritise when monitoring under different project contexts contribute to knowledge management. The results also show that monitoring responsibilities and comparison do not significantly affect loafing and poor focus (Mahaney and Lederer, 2009, p. 22). Knowledge management could treat the lack of significant connection as a possible experience in some projects or that there are other monitoring dimensions that have an impact on the dimensions of shirking.

The results of the study have two implications on effective project management. One is the importance of context in managing projects under strategic project management. The context identifies the project requirements, processes, strategies and techniques to align project goals and outcomes. Although there are expected deviations in project implementation, the outcome should still be reasonably aligned with the goals of the project. The other implication is the significance of multiple dimensions, perspectives and methods in managing projects to address all possible challenges and problems. Knowledge management is one encompassing approach, perspective and method that contributes to effective project management.

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