Project Stakeholders PDF

3 PROJECT STAKEHOLDERS Stakeholders are a vital component of any project undertaking ranging from key stakeholders who initiate the project, the team that will perform the work, the leaders who will administer project efforts, regulatory bodies who will ensure compliance, customers or end-users who...

3 PROJECT STAKEHOLDERS Stakeholders are a vital component of any project undertaking ranging from key stakeholders who initiate the project, the team that will perform the work, the leaders who will administer project efforts, regulatory bodies who will ensure compliance, customers or end-users who will benefit from the deliverable and many more. Their multiplicity requires different levels of management and engagement strategies to manage their connection to the project and ensure the project’s success. Working with people is not an easy, straightforward endeavour. People are a make- up of emotions and motivations. In order to achieve the best of people you have to lead from the head and the heart. You have to understand people’s fundamental bearing, reason they do what they do, what will make them buy into your project, and grant them that psychological safety to commit. People succeed and the project succeeds.  Who is a Project Stakeholder?  Project stakeholders come in many forms and in many broad categories. Stakeholders can be individuals, groups, agencies, departments and organizations. A stakeholder is one who: has an interest in the project. has an influence on the project, positively or negatively. can be affected by the project or the project’s outcome, positively or negatively. benefits from the project. 1|Page A sponsor is a stakeholder because he provides the financial resources for the project. Business partners are stakeholders because they contribute towards the project vision. Customers and end-users are stakeholders because they benefit from the project. A functional manager is a stakeholder because the project is being done for her department. A project manager is a stakeholder because he leads the project. The project management team are stakeholders because they administer project efforts. The project team are stakeholders because they work to create the project’s deliverables. A vendor is a stakeholder because she provides supply or support services for the project.  Stakeholder Identification and the Stakeholder Register  The stakeholder register, an output of the stakeholder identification process, is updated throughout the project. It begins as an offshoot of the project charter process, identifying key stakeholders. This document lists stakeholders in rows, with columns detailing their interests, involvement, interdependencies, influence, and impact levels. The register is regularly updated to add new stakeholders or remove those no longer involved, such as a vendor who is withdrawn from an agreement.  Stakeholder Analysis  Stakeholders come in many forms, necessitating detailed information to manage their expectations effectively. For example, if a stakeholder has an interest in the project, to what degree is this interest? If the stakeholder can affect the project, to what degree can she do this? Understanding the degree of stakeholders’ interest or influence helps differentiate among them and design appropriate engagement strategies. Stakeholder analysis examines the degree of influence, interest, or potential impact of stakeholders 2|Page on a project. Project teams often use models like Aubrey Mendelow's Power-Interest Grid, which classifies stakeholders based on their power and interest on the x-y axis. Aubrey Mendelow’s Power/Interest Grid On the power-interest grid, the following stakeholders may be derived on a given project: o High Power, Low Interest: Keep satisfied, meet requirements. o High Power, High Interest: Manage closely, regularly engage. o Low Power, High Interest: Keep informed, maintain interest. o Low Power, Low Interest: Monitor, can be informed using public media. Most regulatory bodies have high power but low interest in a project. For example, a metropolitan office that grants building permits can greatly affect your project but may not be invested in its success. Project managers, sponsors, CEOs, and functional managers typically have high power and high interest. Project team members usually have low power but high interest, while end-users often have low power and low interest. These examples may vary, and project teams must analyze their specific projects since no two projects are the same. The salience model is another notable stakeholder analysis tool that classifies stakeholders into power, urgency and legitimacy. 3|Page The salience model identifies three key attributes to determine the importance of stakeholders, reducing system noise. It highlights that some stakeholders share two or three attributes and uses a Venn diagram to interpret their behavior. "Salience" refers to the quality of being important or relevant to the current situation. The 3-Dimensional Labels: Power – stakeholders who have an ability to influence the project. Urgency – stakeholders who demand immediate attention or action. Legitimacy – stakeholders who are genuinely involved or have a sense of ownership. The Stakeholders on the Venn Diagram: o Dormant Stakeholders – Only power but no urgency or legitimacy. Being aware of their presence is enough. No need for involvement. o Discretionary Stakeholders – Only legitimacy but no urgency or power. Keep informed. o Demanding Stakeholders – Only urgency but no power or legitimacy. Easy to ignore. Can be vocal. Manage carefully. Meet requirements. o Dominant Stakeholders – Have power and legitimacy but no urgency. Must involve them throughout the project life cycle. o Dangerous Stakeholders – Have power and urgency but no legitimacy. Keep them satisfied. Meet all requirements. 4|Page o Dependent Stakeholders – Have legitimacy and urgency but no power. Can be beneficial in your connection to the organization. Don’t forsake them. o Definitive Stakeholders – Have a good mix of power, urgency and legitimacy. Keep them involved, satisfied and informed throughout the project life cycle.  The Stakeholder Engagement Plan  The Stakeholder Engagement Plan outlines strategies for engaging different stakeholder categories throughout the project, based on their needs, expectations, interests, and potential impact. The plan is informed by the initially identified stakeholder community but must be reviewed as new stakeholders are added and old ones are removed to remain relevant. Stakeholder management and communications management are closely related, with the Stakeholder Engagement Plan detailing how stakeholders are to be engaged, and the Communications Management Plan guiding project communication. Both plans iterate on each other to improve project communications and stakeholder satisfaction. Effective engagement includes addressing difficult and resistant stakeholders. When new stakeholders join the project, both the Stakeholder Engagement Plan and Communications Management Plan need updating. Scheduling meetings with new stakeholders to understand their priorities is essential for these updates.  Stakeholder Involvement: Stakeholder Engagement Strategy & Stakeholder Engagement Assessment Matrix  Projects require a stakeholder engagement strategy to effectively involve stakeholders throughout the project. This strategy considers variations in stakeholders and addresses their specific involvement needs. A stakeholder engagement assessment matrix also compares current engagement levels to desired levels. Discrepancies can be analyzed, adjusted, and optimized to achieve the intended objectives. 5|Page   The Project Manager  The project manager, assigned by the performing organization, leads a team to accomplish project objectives. They manage project work, coordinate efforts, and integrate components, but their most fundamental role is leadership. As a leader, the project manager guides and motivates team members to achieve their objectives. In terms of skill, 90% of their job involve communicating, making communication the most crucial skill for a project manager. The skill and experience of a project manager enable them to coordinate resources for successful outcomes, even with limited technical expertise in a specific field. While domain knowledge is a plus, it is not necessary to write software code to manage software projects effectively. Project managers from the past often had domain expertise, making it hard to separate the two. However, a project manager works alongside domain experts who provide technical expertise, while the project manager brings project management expertise. Their role includes translating business value into tasks, leading meetings, motivating the team, managing resources, integrating efforts, aligning execution with plans and objectives, measuring performance, addressing risks, managing vendors, handling changes, and documenting results. The project manager ensures project objectives align with the organization's program, portfolio, and strategic goals. They advocate for sound project management practices, guide the organization through stages of project management maturity, and stay informed about industry trends. The project manager's competencies and behaviors align with the PMI Talent Triangle. 1 1 “The PMI TALENT TRIANGLE and the PMI Talent Triangle logo are marks of Project Management Institute, Inc.” The PMI’s talent triangle showcases a combination of behaviour and expertise that is required for modern-day professionals to excel in the field of project management. 6|Page WAYS OF WORKING describes the knowledge, skills and behaviours needed to select and apply appropriate project management processes. POWER SKILLS demonstrates the knowledge, skills and behaviours needed to guide, motivate, and direct others to achieve organizational goals. BUSINESS ACUMEN depicts the knowledge and business intelligence needed to contribute to strategic alignment, innovation and to deliver business value.  The Project Management Team  The project management team supports the project manager in administering project work. For small projects with low budgets, a project manager may handle all administrative and oversight tasks alone. Larger projects might have additional managers, such as risk, procurement, schedule, and quality managers, depending on where risks are concentrated. This distribution helps share the project manager’s burden and provides focused attention. Ideally, subsidiary managers attend to each project management domain and report to the project manager, who integrates their efforts and manages interdependencies to enhance business value. 7|Page Sometimes, an organization may handle certain tasks at the organizational level, integrating them with project efforts. For example, a centralized procurement department may manage all project procurement, benefiting from accumulated experience and established standards. However, the downside is that this department may divide its attention between the project and other organizational concerns.  The Project Team  The project team, supported by the project management team, works on tasks to create deliverables. Coordinated as part of project resources, they are managed under the resource management plan, which outlines how resources are planned, acquired, and used. This includes detailing how personnel are brought into and signed off the project. Human resource planning estimates roles and responsibilities, identifying necessary human resources and planning their acquisition. Personnel who work together on certain types of projects within an organization may be assigned by default or mentioned in the charter to new projects of such nature. Large and projectized organizations may have dedicated project personnel, while other situations may require ad hoc teams from various functional units, who return to their original roles after project completion. Part-time team members, who balance project and operational tasks, may also be utilized. In matrix organizations, resources are typically contributed by functional units. Project managers prefer fully dedicated personnel, but this isn't always possible, especially in matrix organizations where time is shared. Context-switching reduces output, making dedicated team members ideal. When this isn't feasible, negotiating with their managers to secure more commitment to project work is the next best option. Similarly, if a project manager needs support from resources assigned to other projects, they should negotiate with the respective project managers. It is unethical to directly engage resources without their project manager's consent. 8|Page In situations involving mergers, partnerships, and joint ventures, team members are contributed by each participating organization. In these unions, it is essential for the team members to establish a mutually agreeable way of working. Team members may also be recruited from external sources such as professional bodies or job markets. Project managers have the responsibility to ensure that each team member is placed in the role where they can be most productive.  Working with Virtual Teams  In today’s advanced world, projects can have both co-located physical team members and virtual team members who contribute remotely. Advancements in virtual systems enable remote contributions regardless of location. Virtual team members often use electronic Kanban boards to visualize workflow and collaborate. They share common objectives united by the project vision. When located in different countries or continents, face-to-face meetings may not be feasible, so virtual tools are essential for communication and collaboration. The project manager must ensure appropriate systems are in place to manage and support virtual team members if they are part of the project plan.  Project Team-Building and the Tuckman’s Model  Project teams are formed to achieve results through teamwork, which is not easy to accomplish. Teamwork is built through conscious and concerted efforts, requiring the application of various skills. A group of people working together does not automatically become a team; they must develop into one. Several features characterize a team, right from its formation. Various practices are advanced to help the team harmonize quickly and fully benefit from teamwork. The Tuckman model illustrates how teams progress through various stages to become fully functional. 9|Page Forming Stage: Members first come together, get to know one another, and learn about their various roles and responsibilities. Storming Stage: This is the most challenging stage when team members clash due to individual differences in culture, upbringing, temperament, perspectives, prejudices, and biases. Norming Stage: This stage represents a successful transition from the storming stage. Team members begin to understand and appreciate their differences, recognizing that these differences strengthen the team. They adjust their mindsets and behaviors to accommodate others, appreciating diverse opinions and prioritizing the team's objectives over individual preferences. Performing Stage: The team works in remarkable harmony and achieves peak performance, which is the ideal state for any project manager. Adjourning Stage: Team members complete their objectives and then disperse or move on to other endeavors. Every team goes through all the stages, progressing faster for teams that have worked together frequently. The Tuckman model helps in understanding team development dynamics and guides leaders in supporting their teams through each stage.  Defining the Work Culture  Culture is crucial for team harmony and defines acceptable behaviors. A team charter outlines the ground rules, dos and don'ts, norms, values, and the team's manifesto, embodying the team's spirit and uniting members. 10 | P a g e   Ground Rules  Ground rules are established in a project environment to ensure conformance and promote harmony. They align everyone on how to interact and relate within the project environment. In chaotic situations, ground rules restore order. Commonly agreed-upon ground rules reinforce a social contract, making the team more independent, self- organizing, and self-servicing. This reduces pressure on the management team and frees up leadership to address other priorities. Ground rules also clarify work distribution and responsibilities, making teamwork easier and more productive, and focus on official duties and work hours.  Code of Ethics and Professional Conduct  A defined code of ethics and professional conduct outlines the issues of responsibility, proper behavior, respect, fairness, and honesty within the project environment. Project team members are expected to exhibit and promote proper behavior at the workplace, maintaining their integrity under all circumstances. No project activity should violate the organization's code of conduct. Team members must be responsible for their actions, taking ownership of their decisions and accepting the consequences. They must deliver on their promises and show commitment to their job. Honesty about their skills, expertise, and experience is essential, as is taking actions in the best interest of society and the environment. Responsibility extends to the properties entrusted to them, and they must approach directly those with whom they have conflicts or disagreements, while reporting any unethical or illegal conduct. Abusive behavior or actions are unacceptable, and team members must respect the property rights of others, exhibit tolerance, and respect diverse opinions and cultures. Encouraging discussions about cultural differences promotes understanding and harmony. Transparency is crucial, and equal opportunities should be provided to all qualified individuals, avoiding any form of discrimination. 11 | P a g e Team members must steer clear of bribery, corruption, favoritism, nepotism, dishonesty, and unlawful practices. They should avoid conflicts of interest and always strive to be sincere, fair, and honest, without misleading or engaging in half-truths. This code ensures a harmonious and ethical project environment, fostering trust and collaboration among team members, and aligning everyone with the organization's values and standards.  Stakeholder Tools  A Project Team Directory is a documented list of project team members with their roles and responsibilities. A Resource Calendar shows the availability of resources to be allocated to tasks. It also indicates when each resource will start their portion of the project and when their part will come to an end, including on-time and off-time moments. A Resource Histogram is a visual representation tool – a bar chart – that shows resource allocation by time unit. A resource histogram reveals if a particular resource has been over or under-allocated. A Resource Levelling Chart is used to balance or keep resource usage at a constant level or consistent pace so resources are not over or under-whelmed. Over-utilizing resources typically lead to burnout, fatigue, breakdown and errors. Under-utilizing resources, particularly the human resources, typically leads to loss of morale. Responsibility Assignment Matrix (RAM) is used to assign tasks or activities of work packages to team members and other stakeholders in order to clarify their participation or level of involvement in completing project deliverables (who does what). A typical example is the RACI chart that shares tasks in the order of: Responsible – who does the work to complete the task; Accountable – who will review the work and confirm completion; Consult – who will provide input to the work; Informed – who must be continually informed on the project’s progress. 12 | P a g e  Hierarchical charts are used to communicate reporting relationships and lines of authority. PM Role 1 Role 2 Role 3 Role 4 Role 10 Role 12 Hierarchical Chart Sample An Organizational Breakdown Structure (OBS) shows which departments will be responsible for specific portions of a project. This is mostly helpful when departments are included to complete project tasks. An OBS can be used together with a WBS to allocate project tasks and show responsibilities by departments. A Resource Breakdown Structure (RBS) shows a breakdown of project resources by types or categories. During project resource estimation we use bottom-up estimation techniques to determine the types and quantities of resources such as people, machinery, equipment, supplies, etc. needed to complete project work. An RBS is usually done during the preliminary stages of resource planning before we assign resources to task and estimate for their time. An RBS identifies and breaks down the resources needed to complete project work by their types and categories. Supposing you are developing a web application, what do you do? You pick the human resources element and further break down the categories of human resources you need in order to complete project work just as in the illustration below. Human Resources Frontend Developers (4) Database Admin (1) Content Writers (2) Backend Developers (2) Graphic Designers (2) Testers (3) 13 | P a g e   Issue Log  An issue is a negative risk event that has occurred. The issue log is a document where issues are captured, tracked, monitored and addressed to resolution. It also captures a description of the issue, status or priority, who is responsible for resolution, target date for resolution and finally updated with the date and time the issue is resolved. Concerns of team members and other stakeholders are also updated to the issue log and tracked to their final resolution.  Creating a High-Performing Team  Creating a high-performing team is crucial for project success. Such teams thrive in environments of trust and self-awareness, driven by the adopted leadership philosophy. Modern project management is shifting from autocratic to servant leadership, fostering creativity. In agile development, servant leadership is essential, providing psychological safety for team members to tackle challenges and innovate without fear of mistakes. Creativity and innovation flourish in environments that prioritize psychological safety. High-performing teams are self-servicing and work effectively with minimal supervision. Proper rules of working establish a social contract that enables team members to be productive without the need for micromanagement. Negative rumors and hearsay can disrupt high-performing teams. Project managers should not act on unverified information. Therefore, leaders must establish close relationships with team members, verify facts in private meetings, and help them reach their full potential. Additionally, project leaders should find ways to discourage behaviors that negatively impact the team. High-performing teams are diligent and responsible. Non-responsive team members need to be motivated towards active commitment. If a team member remains unresponsive, unreachable, or inactive, new resources may need to be assigned immediately to ensure timely completion of work. 14 | P a g e If a team member decides to leave the project before it is completed, a knowledge- sharing workshop or an interview that allows her to transfer knowledge and experience gained on the project becomes necessary.  Knowledge Transfer: Skill Training, Coaching and Mentorship  High-performing teams exhibit exceptional skills in project work. Great results stem from teams with strong competencies and excellent motivation. Project leaders must continuously nurture their team's skills through training and empowerment to tackle complex challenges, with cost of training being a direct cost to the project. Training is the fastest method of knowledge transfer, enabling teams to acquire requisite skills quickly to meet tight deadlines. Identifying gaps requiring capacity-building is essential for achieving project objectives. Project managers also need to update team records when new skills are acquired. Coaching and mentorship are also essential. Mentorship helps team members relate their skills to practical situations, filling gaps, increasing speed and productivity. Sharing and engagement constitute knowledge transfer. The goal of mentorship is to direct and guide less experienced resources, with senior team members supporting, training, and coaching new and junior team members.  A Multi-Cultural Project Environment  In a global world, it is almost impossible to work effectively and meet global mandates without understanding multiple cultures. Projects benefit by utilizing skills and talents from around the world, but understanding the cultural diversity this brings is crucial for modern global leadership. Cultural sensitivity is essential in managing globally- distributed teams. It is now common for project teams to hold sessions where members share their different cultures. Project leaders should not shy away from multi- national projects that require cultural sensitivity. They should take up the challenge, devote to the study of other cultures, and grow into better global leaders. 15 | P a g e   Some Consciousness in Leading High Performing Teams  The Halo Effect: the assumption that because someone performed well at a task, forming your first impression of him, any task you put him to, he will equally deliver well. The Horns Effect: the assumption that because someone performed poorly on a task, forming your first impression of him, he can’t be good anywhere else you put him. The halo and horns effects are biases based on first impressions. The halo effect causes us to overlook weaknesses and focus only on strengths, while the horns effect does the opposite, highlighting weaknesses and ignoring strengths. Making conclusions about people on new tasks without substantial evidence is fallacious. Understanding these biases is vital for creating a high-performing team. The Peter Principle postulates that in promoting people, organizational leaders could land into error where people might be promoted out of their competencies into roles they are least prepared for. Sandbagging is a behavioral practice in which people deliberately under-promise in order to lower stakeholders’ expectations of them with the objective of overdoing in order to exceed stakeholders’ expectations. When people sandbag, they set expectations they know they can easily hit. A "Dropped Baton" refers to wasted time during a handover in a sequential workflow, occurring when a predecessor finishes work early but the successor is not ready to receive it, resulting in a lost opportunity. Student Syndrome refers to the behavioral phenomenon where people procrastinate tasks until the last moment before the deadline, when it is no longer possible to postpone. This term originates from the common behavior among students who intensify their efforts only when an exam is near or an assignment is almost due. Experts attribute this syndrome to the need for adequate motivation to complete tasks. In projects, Student Syndrome can affect productivity, consume any safety slack, and place undue pressure or stress on personnel. 16 | P a g e The Parkinson’s Law postulates that work expands magically to occupy the time allotted for it; work expands magically to consume the budget allocated for it. To illustrate, if the work could be completed in three days for $4,000; and you ask the team to complete in four days for $5,000, the team will use four days and $5,000. It is the same law that states that no matter how much people earn, they never have enough – their lifestyle changes to adapt to the rise in income. Social loafing refers to the behavioral concept that people are prone to exert less effort when working collectively in a group than when they work alone.  Co-location and the Use of Collaboration Tools  Co-located teams work from one physical space, unlike remote teams that are geographically dispersed or traditional teams working in separate cubicles. Many organizations are now creating large open spaces to facilitate open interactions, making communication easier, addressing issues quickly, and fostering faster team bonding. Co-location enhances team interaction, collaboration, and osmotic communication—where team members overhear useful conversations not directed at them. Co-located environments, similar to project war-rooms and tight matrix setups, are vital for team dynamics. It is best for the project team to create task boards to visualize and track the progress of their work. Task boards, also known as Kanban boards are information radiators. They can be set up on a flat surface, like a wall in a co-located environment, with columns representing different stages of the work. In today’s hybrid work system, electronic Kanban boards have become popular, allowing team members to collaborate and share updates away from the project site. Virtual team members can also use electronic boards to collaborate regardless of geographic distance. 17 | P a g e   New Tools and New Ways of Working  Teams use a wide range of tools to facilitate project work. Typically, rules are incorporated to guide the use of these tools. Occasionally, a new tool may emerge that better serves the team's needs than those listed in the project management plan. When this happens, the best approach is to integrate the new tool into the project and enforce rules for its application. If the new tool or method is significantly disruptive, it should be halted immediately to allow the team to establish harmony and create necessary guidelines for its use. Tools are designed to facilitate work, and new tools and technologies will inevitably be introduced into the team's workflow. It is crucial to prepare team members for these new tools and ways of working. Most importantly, reassure the team of their value to the projects, especially when new tools may seem to threaten their relevance or undermine their manual efforts.  Emotional Intelligence for Team Performance  In today's complex world, emotional intelligence is crucial for effective leadership, including project leadership. People are increasingly self-aware and expect personalized treatment. Leaders must connect emotionally to bring out the best in their teams, recognizing that individuals perceive things differently. Face-to-face interactions are valuable, but emotional intelligence is key for understanding and gaining commitment. Project managers use emotional intelligence to lead, motivate, and coach team members, improving performance. They must discern which situations require technical solutions and which ones call for emotional intelligence. Even in situations of personal challenges, how a leader demonstrates empathy towards team members go a long way in helping them recover from the difficulties and positioning them back on the paths to becoming the best of themselves. Emotional intelligence guides communication, drives performance, and enhances leadership. 18 | P a g e Emotional intelligence begins with self-awareness. How well you know yourself and your own emotions in a variety of situations. Some people act in ways they never expected in the face of situations. They never knew themselves in that way until the situations triggered that part of their personality. In accurate self-assessments, we are able to identify our personality traits, our temperaments, our emotions in a variety of situations, our strengths and weaknesses, our personal values, our dreams and goals, our priorities in life, our habits, our passions and many more. Emotional intelligence continues with self-regulation elements – how well we can control our emotions and master these identified traits. If there is a situation that challenges your personal values, to what extent can you maintain those values. The next thing with emotional intelligence has to do with our motivations – what drives us to do the things we do. What makes us commit to things and what fuels our drive to follow through. What drives us to look to the brighter side of life in the face of adversity. One of the charges you have as a project manager is to understand each of your team member’s motivation on the project. This helps you know where to start from, how to improve their buy-in and how to drive their commitment. Empathy elements look at how well we are able to read, understand and appreciate the emotions of others. Empathy is enabled when we appreciate the differences in people and understand their personality traits, political, religious and ethnic backgrounds. Emotional intelligence ends with a mastery of social skills that enables us to build relationships and rapport with others; build emotional bonds, cooperate and collaborate with others, manage conflict, influence positively, listen actively and connect with people. Emotional intelligence shows you when to communicate, what to say and how. Emotional intelligence drives the zeal in others to perform. Leaders who are better able to connect with people on the emotional level become better leaders. When you touch the heart, you touch everything. 19 | P a g e   Theories of Motivation  Paying people and commissioning them for work does not guarantee optimum performance. As we have already mentioned, in order to get the best out of people, you will need to connect with them in a particular way. There are different motivational theories that have addressed human behaviours under different conditions and how project leaders can leverage those discoveries to motivate their team members. The Maslow’s Hierarch of Needs identifies human needs and fulfillment on five different levels. - The physiological stage which is the most basic stage represents the first fundamental needs in people: the need for food, clothing, shelter, etc. - The second stage refers to people’s need for safety. - The third level represents the need for love or association. - The fourth stage is the need for respect and esteem. - The final stage talks about the need for fulfilment or self-actualization. Maslow's hierarchy of needs suggests that individuals must satisfy their current level of needs before progressing to the next. As a leader, to effectively motivate your team, identify their current level in the hierarchy and use elements from that level. For example, providing basic needs like food to someone at the physiological stage will be motivating. However, once a person advances beyond a stage, items from that stage 20 | P a g e will no longer motivate them. Different team members may be motivated by different things, such as a safe work environment, words of appreciation, or titles. Understanding these differences is crucial for effective motivation. McGregor Theory identifies two types of leaders. Theory X Managers believe workers are naturally lazy and will avoid work as much as possible, hence the need to micro- manage them for optimum productivity to take place. Theory Y Managers do not think workers are lazy. They believe workers will work if they are given more responsibilities and trust to get the work done. David McClelland’s Theory of Needs posits that people have three types of emotional needs: achievement, affiliation and power in different degrees of mix. Achievement is the need to set and accomplish goals; affiliation is the need to belong; and power is the need to be in control. Achievement is the kind of motivation that drive people to pursue challenging [but not impossible] tasks and overcoming difficult situations. Affiliation is the kind of drive that allows people to be motivated when they work with others in a group. There are some people who are productive when they work in a group. Power as a motivation is the kind of proactiveness people exhibit when they are put in charge. Herzberg’s Theory deals with hygiene factors and motivating agents: that poor hygiene and environment will lead to dissatisfaction but improving them will not necessarily lead to increased satisfaction. According to Herzberg, what motivates people is the work itself – there are elements of the work that motivate people: responsibility, fulfillment, self-actualization, professional growth, recognition, etc. Vroom’s Expectancy Theory states that employees will remain productive as rewards meet their expectations. The linkage between performance and reward must be made clear. Behaviour results from conscious choices and the theory is based on the assumption that people will choose to maximize pleasure and minimize pain. If an employee values the reward of an outcome, the more motivated they will be to achieve it. For example, if the employee values more time, there will be a disconnect between reward and expectations if you give him money as a reward instead of some days off. In the same way, if he values more money, there will be a disconnect between reward and expectations if you give him some time off instead of more money. 21 | P a g e Ouchi Theory Z states that job for life increases satisfaction. Theory Z makes a case for stable employment, high productivity, high morality and employee satisfaction. The theory states that the loyalty of employees is increased when there is security in the long-term and there is great concern for employee general well-being. Fringe Benefits and Perquisites (Perks): Fringe benefits are a form of non-wage compensation meant to supplement salary. Fringe benefits are typically made available to all workers and may include benefits such as medical allowance and educational benefits. Perquisites are usually given to some employees and typically include benefits such as company car, hotel suites and assigned parking spaces.  Team Performance Assessments  In team performance assessments, the project management team assesses how the team work together to produce results and the overall team’s effectiveness in order to determine what will need to be improved on – skills/capacity, teambuilding, communication, colocation, etc.  Conflicts  Conflict is a natural part of our human interaction. As long as we work together with different priorities and motivations, conflicts are bound to occur. Here are some truths about conflicts: - Conflicts are not necessarily bad. Conflicts provide some benefits to the project by revealing underlying issues that could potentially endanger the project’s objectives, providing opportunities for learning and improvement. - Conflicts are best addressed using face-to-face approaches. - Conflicts are best addressed through openness and transparency, and by identifying the root causes of the conflicts. 22 | P a g e - Conflicts are best addressed by the parties involved in the conflict, facilitated by their immediate managers. If the project manager is their immediate manager, the responsibility falls to her. If not, another manager who has primary responsibility over the personnel takes over. - In situations of conflicts, stakeholders and teams must work together to reach an agreeable solution in the best interest of the project. - A consensus document is an objective way of addressing conflicts and concerns raised by stakeholders on project requirements. The document becomes a reference point in providing directions in situations of conflicts. - The demands of key stakeholders override other stakeholders in situations of conflict. But even key stakeholders must have their objectives supported by facts that ultimately support the project objectives. - A project manager must protect the objectives of her project from adversity even in the face of scarce resources.  The 5 Levels of Conflict – Speed Leas Model  5. World War 4. Crusade 3. Contest 2. Disagreement 1. Problem to solve 23 | P a g e A conflict is like a small bruise; if not treated early, the wound festers. Conflicts often begin as small problems or minor disagreements but if left unmanaged, the problems get worse and the strategies required to address the conflicts at later stages become increasingly demanding. The Speed Leas model showcases various exacerbating stages by which conflicts are developed, helping organizational leaders assess the level of the conflict and selecting a strategy that fits the level. 1. Problem to solve is the early stage of a conflict’s development where we probably don’t even see it as a conflict; and a moment when the conflict can easily be addressed. It is when there are conflicting needs, values or goals. On this stage the conflicts are less personal. They are more problem-oriented. 2. Disagreement is the next stage of the conflict’s development where the parties have different views and begin to declare who is right and who is wrong. On this stage, personalities and issues are mixed up, and people take actions based on assumptions and perceptions. Personal emotions become visible. Self-protection becomes visible. Persons involved in the conflict talk to others to test strategies or seek advice and support. Language gets a bit nasty although attempts are made to sugarcoat but still gets to the other party as bitter. People interpret facts differently. 3. Contest: People switch to the next level where they assign importance to their position of being right and personal attacks begin. This is the stage when factions and camps are formed. The politics begin. 4. Crusade: This is the stage when people move into defensive and offensive mode and plan on how to inflict physical or emotional pain with the objective of winning or causing the other party to give up. On this stage, compromise counts as a loss. There is no communication or trust. Wild assumptions take over. Any action is hostile to the other party. People believe the only solution is to remove the other party from the team or get removed themselves. 5. World War: This is when energies are focused on separation, getting rid, destruction or termination. Winning is not enough. The other must be destroyed! 24 | P a g e   Conflict Management and the Thomas-Kilmann Model  Different people address conflicts with varying degrees of assertiveness and cooperation. Project managers, responsible for project success, play multiple roles in conflict resolution. Some situations require the manager to take charge, while others call for a facilitating role, allowing parties to use emotional intelligence to resolve differences. Ultimately, conflict resolution falls to the project manager, as it can significantly impact project goals. Let’s take a look at five different conflict resolution strategies as presented by the Thomas-Kilmann model: o Withdrawal/Avoiding: When the leader avoids, circumvents or shies away from the issue hoping it will resolve itself or ‘just go.’ This mostly happens with people who do not want to engage in the conflict and end up postponing the issue when responsibility is expected of them. The technique is also used in reference to genuine cases in which the leader postpones the issue in order to be “better prepared” or available for it. This approach is not feasible for situations that require urgent response. o Smoothing/Accommodating: When one party decides to concede or give up their own satisfaction by taking steps to satisfy the other party’s concerns in order to maintain harmony in the team. This “as you wish” approach leads to a win-lose situation. o Compromising/Reconciling: When an amicable solution is found that brings some degree of satisfaction to both parties. It’s a mutual way of settling a dispute in which each candidate forfeits some degree of satisfaction in order to reach an agreement. o Forcing/Directing/Competing: When one party satisfy themselves completely or force their opinion at the expense of the other – often emanating from a position of authority. This is another win-lose situation. This approach is useful when a leader needs to enforce his authority against illicit will or undesirable demands in order to protect, ensure wellbeing and safeguard the interests of the project. 25 | P a g e o Collaborating/Problem-solving: When a solution is found that satisfies the concerns of all parties. In this approach, the parties involved work together and incorporate multiple viewpoints to find a mutually agreeable solution. This is the best approach for addressing conflicts leading to consensus and a win-win situation. There is more inclination of offering a hearing from both sides. Even when geographically dispersed teams are engaged in conflicts, the use of conferencing tools to offer hearing to all parties to the conflict are used.  Managing with Power and Influence  Effectively using power and influence to achieve maximum cooperation from the team and stakeholders is crucial. Power drives action, but its proper use ensures project benefits while maintaining harmony and satisfaction among stakeholders. Today, it is not just important to solve problems but to do so in the most convenient way. Using personal influence, especially when prior relationships exist, is strategic for addressing challenges. Additionally, leveraging third parties who have influence over those we have difficulties with can benefit the project. This section aims to explore the different forms of power leaders use to drive influence and direct actions. o Coercive/penalty power involves the use of threats to force people to do your bidding, established in your ability to punish for non-compliance. o Reward power involves the use of incentives and benefits to motivate people to achieve certain desired results. o Formal/legitimate power is the authority you have to issue instructions because of the position you occupy. o Expert power is the credibility you have to drive actions due to your technical knowledge, expertise and experience in the concerned field. o Referent power is the natural influence you have over people because of your personality that inspires likingness, trust, respect and charisma. While expert and reward power present the best forms of power, coercive/penalty power is the least effective. 26 | P a g e