The Role of Project Managers in Improving Project Performance in Construction - Abu Hassan Abu Bakar...

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INTERNATIONAL JOURNAL Of ACADEMIC RESEARCH Vol. 3. No. 6. November, 2011, I Part

THE ROLE OF PROJECT MANAGERS IN IMPROVING PROJECT PERFORMANCE IN CONSTRUCTION: AN INDONESIAN EXPERIENCE

Abu Hassan Abu Bakar, Arman Abdul Razak, Nurkhuraishah Abd Karim,

Mohamad Nizam Yusof, Ira Modifa

School of Housing, Building and Planning Universiti Sains Malaysia (MALAYSIA) E-mails: [email protected], [email protected],

[email protected], [email protected]

ABSTRACT

The project managers responsibilities are to plan and control company resources efficiently and to complete the project on schedule, within the budgeted costs and specified quality towards making the project a success. However, many reports have shown the opposite results. Studies on this issue are pointing towards the poor understanding of good practice as a basic problem for the failures in project management. The objective of this paper is to identify the competency skills that a project manager should have to influence a successful project performance. Using the case study approach carried out in Medan, Indonesia, two large projects were chosen, namely RSU Pirngadi and Plaza Medan Fair. The data was collected as well as obtained from and through project reports, questionnaires and interviews with the project managers and project teams of the relevant projects. The variables were then separated into two classifications that could be defined as either success or failure. The findings of the research show that good project management practices result in a higher project performance.

Key words: Project Management, Project Manager, Construction Industry, Performance, Medan, Indonesia

1. INTRODUCTION

Interest in project management is growing significantly and of late, the construction industry is evolving around project management training and education (1). The most common constraints in the construction industry within developing countries are the oversupply of unskilled labor and a restricted supply of management manpower. According to Abu Bakar (2) what is vital in management is the ability of managers who are able to manage risks that occur in the construction sector. It is important to take note that upgrading and enhancing the management capability is vital for growth and expansion in the construction industry. There are some companies that have built reputations for being able to consistently manage projects effectively (3).

Effective project management techniques are important to ensure successful project performance. A poor strategy as well as incorrect budget or schedule forecasting can easily turn an expected profit into loss. This is especially true for the construction industry where projects have a relatively short life cycle and the project activities are non-repetitive with rather complex interrelationships, so that there is little opportunity to improve on a wrongly chosen or adopted strategy.

The appointment of the best project team will better ensure the success of the project, but the best project team must be led by a good leader, which is undoubtedly the project manager. Edum-Fotwe and McCaffer (4) affirmed that project managers in construction play a crucial role. This is as project managers are responsible for the overall success of delivering the owner's physical development within the constraints of cost, schedule, quality and meeting the requisite safety requirements.

1.1. Research Objectives The objectives of this study were to:

i. Identify the project performance in practice; and ii. Identify the competency skills that a project manager should have to influence a successful project perfor-

mance.

1.2. Project Management The Project Management Institute (5) defines project management as a set of processes that are applied to

a project to deliver a product or service. Project management is designed to provide sustained, intensified and integrated management of complex ventures and to pull together a combination of human and non human resources into a temporary organization to achieve a specified objective (6). Whitty and Maylor (7) added that project management is recognized to be the key enabler of business change and a vital contributor to future business success.

Cooke-Davies and Arzymanow (8) concluded that every aspect of project management has two dimensions-a technical dimension and a human dimension. Project management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to the constraints of resources (9).

1.3. The Role of the Project Manager As aforementioned, it has been recognized that an assignment of a project manager is very crucial to

ensure the success of any design or construction project. In most cases, a single project manager is accountable

B a k u , A z e r b a i j a n | 165


for the success of a project and is responsible for its planning, allocating, directing and controlling functions. Ideally, each project manager would be assigned one and only one project and each project manager would have ample opportunity to use his skills to resolve all project issues.

Gransberg (10) in his journal article highlighted the issue of roles and responsibilities of the project manager as follows: Construction management is literally, where the rubber meets the road. All the planning, preparation, design and cost estimating is put to the test in this fast paced phase of the projects life cycle. This phase begins after the award of the construction contract and continues through construction close out. Most researchers believe that the most important responsibilities of a project manager are project evaluation, setting up the team, setting up systems, planning, monitoring, control, negotiating contract conditions, training and communication. In their study, Turner and Muller (11) found that a project managers success at managing his or her project is dependent on his or her competence, particularly the leadership style comprising emotional intelligence, management focus as well as intellectual capabilities.

1.4. Essential skills of a Project Manager In order to meet the objectives of modern projects, which are increasingly complex in nature, it is essential

for project managers to be able to use a variety of managerial skills (12). To conclude as to what are the most important knowledge and skills that a project manager should have the following will be discussed:

a. Management knowledge and skills: finance and accounting; sales and marketing; research and development; manufacturing and distributions; strategic planning; tactical planning; operational planning; organization structures; organizational behavior; personnel administration; managing work relationships (13).

b. Technical knowledge and skills: defined as an understanding of and proficiency in, a specific kind of activity, particularly one involving methods, processes, procedures, or techniques (14).

c. Business knowledge and skill: on small projects, this can be a tough challenge because project managers are also managing the project control function (15).

d. Human knowledge and kills: the ability to work with and through other people (14).

1.5. Project Performance Projects can be considered as a set of activities that must be completed in accordance to specific objectives

which involve the utilization of a companys resources. A project also can be defined as a temporary endeavor, having a definitive beginning and definitive end, undertaken to create a unique product or service (16).

Naaranoja et al. (17), states that the objectives of a project are set for the content, quality, time, cost as well as related resources of the project. Pinto and Slevin (18) added that project success can be described as a complex and often illusory construct, but nonetheless it is of crucial importance to effective project implementation. It is also seen as a strategic management concept where project efforts must be aligned with the strategic long term goals of the organization (19). Rad (20) noted that to put the issues in perspective, when a project is deemed as being a success or failure, the judgment is usually based on some factual evidence, although not every project would be gauged by the same data. According to Munns and Bjeirmi (21) a project can succeed despite the failure of project management but successful project management implementation can increase the potential for success on an overall project scale.

1.6. Method This paper is based on a case study approach. This study used questionnaire survey forms as the main

approach, which were distributed to the selected project teams (constituting 28 respondents). Only 22 or 79% of the returned questionnaires were useable. To further support the findings, structured interviews with the project manager for each project was also subsequently carried out. This was mainly to obtain complementary information on the project performance details, and the tools and techniques utilized for project control. The case study was conducted on two large construction projects in Medan, Indonesia as follows:

a. Case study A, Hospital Pirngadi: Questionnaire respondent is represented by the contractor. b. Case study B, Plaza Medan Fair: Data was collected through the clients organization.

2. ANALYSIS AND FINDINGS

2.1. Respondent background From the analysis, the job designations of the respondents were mainly engineers (36%), followed by site

supervisors (32%), design team (18%), secretary (9%) and finance (5%). Most of the respondents were university graduates (72.7%) while the rest were not. In terms of years of experience, most of the respondents were fresh graduates, followed by employees who had experience for over 20 years, followed by those with 16-20 years experience, and finally respondents with 11-15 years of experience.

2.2. Objective 1-Project performance in practice Hypothesis: Ho: Population Variance between case study A and B is significant in achieving project success, meaning

both case study A and B achieved success in project performance. The hypothesis was analyzed using an independent sample t-test, where if the significant value > 0.05,

means HO is acceptable. According to Table 1, statements a, b and c are significant. Thus, the hypothesis saying both case studies A and B achieved success in project performance is acceptable.



Table 1. Project Performance

Sig.1 Sig.2 Levene Test T-Test Result a Project Schedule

Performance Equal Variances

assumed

0.059

0.00

0.059 > 0.05

0.00

Ho is accepted b Project Quality


assumed

0.751

0.875

0.175>0.05

0.875>0.05

Ho is accepted c Project Safety


assumed

0.179

0.508

0.179>0.05

0.508>0.05

Ho is accepted

According to Table 2, statements b, c and d are significant. Thus, hypothesis Ho for these statements is accepted. Project teams from both case studies A and B have a clear understanding that the concept of completion within quality standard, on schedule, and budget are important in achieving successful project performance.

Table 2. Project objectives and management aspects

Sig.1 Sig.2 Levene Test T-Test Result a Fulfill Project

Objectives Equal variances

assumed 0.00 0.02 0.0000.05 Ho is accepted

c Completion on Shedule

Equal variances assumed

0.92 0.17 0.923>0.05 0.719>0.05 Ho is accepted

d Completion on Budget


0.57 0.11 0.574>0.05 0.114>0.05 Ho is accepted

e Future References


0.03 0.00 0.0320.05 Ho is accepted

b Cooperation Equal variances assumed

1.000 1.000>00.05 HO is rejected

c Attendance Equal variances assumed

0.23 0.941 0.23>0.05 0.941>0.05 Ho is accepted

d Professionalism Equal variances assumed

0.023 0.060 0.0230.05 Ho is rejected

From Table 4, it can be seen that statements a, b and d are significant. Thus, hypothesis Ho for these

statements is accepted. Project teams of both case studies A and B consider that the project teams show of responsibility and discipline as well as earning the trust of the client is definitely important to achieve success in project performance.

Table 4. Client aspects

Sig.1 Sig.2 Levene Test T-Test Result a Responsible Equal variances

assumed 0.165 0.366 0.165>0.05 0.366>0.05 Ho is accepted

b Discipline Equal variances assumed

0.560 0.760 0.560>0.05 0.760>00.05 Ho is accepted

c Professionalism Equal variances assumed

0.032 0.036 0.032



success in project performance. The respondent project teams assessed that both the project managers were good and skilled project managers. Statements a, b, c, d and e are significant. Thus, hypothesis Ho is accepted.

Table 5. Management knowledge and skills

Sig.1 Sig.2 Levene

Test T-Test Result

a Time Management


0.192 0.001 0.192>0.05 0.0010.05 Ho is accepted

c Negotiation Equal variances assumed

0.179 0.000 0.179>0.05 Ho is accepted

d Strategic Planning


0.405 0.000 0.405>0.05 Ho is accepted

e Motivation Equal variances assumed

0.168 0.000 0.168>0.05 Ho is accepted

f Promotion Equal variances assumed

0.039 0.01 0.0390.05 Ho is accepted

c Technical Writing Equal variances assumed

0.699 0.000 0.699>0.05 Ho is accepted

d Planning and scheduling


0.128 0.000 0.128>0.05 Ho is accepted

e Productivity and cost control


0.128 0.000 0.128>0.05 Ho is accepted

f Quality Control Equal variances assumed

0.384 0.000 0.384>0.05 Ho is accepted

According to the findings in Table 7, the competencies of project managers regarding marketing/sales and

knowledge of market demand are definitely important to achieve success in project performance. Project teams have noted that both the project managers are good and skilled project managers within these aspects. Statements a and e are significant. Thus, hypothesis Ho for these statements is accepted.

Table 7. Business Knowledge and skills

Sig.1 Sig.2 Levene Test T-Test Result a Marketing and

sales Equal variances

assumed 0.298 0.003 0.298>0.05 0.003



Table 8. Human knowledge and skills

Sig.1 Sig.2 Levene Test T-Test Result a Social/moral

sensitivity Equal variances

assumed 0.022 0.123 0.0220.05 Ho is rejected

b Integrity Equal variances assumed

0.071 0.053 0.071>0.05 0.053>0.05 Ho is accepted

c Team player Equal variances assumed

0.071 0.053 0.071>0.05 0.053>0.05 Ho is accepted

d Dynamic Equal variances assumed

0.881 0.001 0.881>0.05 0.0010.05 0.324>0.05 Ho is accepted

f Open Minded Equal variances assumed

0.980 0.031 0.980>0.05 0.0310.05 0.0340.05 Ho is accepted

i Diplomatic Equal variances assumed

0.405 0.339 0.405>0.05 0.339>0.05 Ho is accepted

j Creative Equal variances assumed

0.384 0.000 0.384>0.05 Ho is accepted

3. DISCUSSION OF THE RESULTS OF THE ANALYSIS

Based on the analysis, it can be stated that the hypothesis which the researchers proposed were significant.

As for the performance of the projects, both of the case studies achieved success. The findings also identified that fulfilling the project objective cannot be used as future references as the major criteria to achieve success in project performance. Four measurement criteria were used, namely time, cost, quality and safety requirements. Both of the project costs were 5% less than the estimated budget. Even though both of the projects completed behind schedule, however, in terms of project quality both projects were completed in good quality and adhered to the standard of the contract. Moreover, the project safety standard and performance was also considered to be excellent. The analysis also identified other aspects that is definitely important to achieve project success, which are; team aspects (productivity and attendance of project team at site); client aspects (project teams show of responsibility, discipline and earning client trust).

This research ascertained that project managers, who are eager to enrich their knowledge and skills of good project management practices will better influence the success of a project compared with a traditional project manager. These practices can be divided into four main criteria: management (time, decision making, negotiation, strategic planning, motivation); technical (basic knowledge, material procurement, technical writing, planning and scheduling, productivity and cost control, and quality control); business (marketing and sales, and ability of market demand); human (integrity, team player, dynamic, maturity, specific, intuitive, diplomatic, and creative).

This in line with Edum-Fotwe and McCaffer (4), who stated that professional competency in project management, is attained by the combination of knowledge acquired during training, and skills developed through experience and the application of the acquired knowledge by the project manager. They also verified that developing the requisite competency to ensure efficient performance on the part of the managers who run projects, is essential to its success.

Furthermore, Paton et al. (22) also provide evidence that increasing cotemporary importance of the project management role relies in part on a broader post-bureaucratic discourse as it is needed for flexibility, for delivering change, and the restructuring of organizations around the project form, which legitimize the project manager and the discipline that he or she embodies. These findings provide important implication for the crucial role of the project manager in the construction industry, especially in the Indonesian scenario.

This study also affirms that the findings of this research had indicated that the role of a good and educated project manager who possess the competency skills and is able to apply the right tools and techniques of project management, will beyond doubt influence the project objectives and success of project performance.

4. CONCLUSION

From the analysis, all hypothesis testing proved that the research objectives were significantly realized by the findings. Therefore, it can be concluded that the research objectives have been successful accomplished.

From this study, it can be concluded that most of the findings affirm the statements in existing literature on the role of the project manager in improving project performance in the construction industry. This is in line with Thomas and Mengel (2008) where they also stress that deficiency in the project management practice are the main contributors that cause such issues. The objective of project management is to apply skills and techniques to the organization and control all aspects of the project and to optimize the use of resources to produce a well designed and soundly constructed facility which will meet the clients requirements of function, cost, time and future operation as well as maintenance. Thus the findings of this study provide important contribution especially in the Indonesian construction industry whereby it can provide some guidelines for project managers to identify the crucial role of project management good practices (tools and techniques) in order to achieve project success.



The limitation of this study is that the data collection only represents a few current project developments in Indonesia. On top of that, due to the constraint of privacy and confidentiality regarding the developments firms and contractors, some project information was not made available for this research. Hence the findings of this research might not be representative to other part of the nations but may still be of use as a research basis or premise in these countries.

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