The underlying chapter develops the analysis of the data collected and assessed for the study entitled in “Organizational Change to a Project Management Culture in an Organization”. Analysis of the data is critical and is among most important segments of the study for the fact that analysis provides inference from the data providing direction to the conclusion and level of achievement of research objectives.
- First, the assessment of top management’s interview including General Manager and other from Operations Manager’s views.
- Second, the assessment of questionnaire based survey from Project Managers, Construction Managers and Site Engineers
- Third, comparison of responses from two tiers of employees.
- Fourth, assessment of results with respects to theory employed.
- Last relationship assessment of factors using regression tools.
ANALYSIS OF THE TOP MANAGEMENT INTERVIEW
Interview responses from the top management had significant positive notes related to the AGI Kuwait’s orientation towards the project management practices in the culture of AGI. GM pointed to the scientifically introduced project management practices in the organization. Scientific method referred to the introduction of personnel in the organization that are well experienced in the field. The similar personnel integration was emphasized by the CEK. Top management was considering the empowerment and transparency as key elements of the AGI Kuwait’s culture. Top management of AGI has perceived resistance in the unfreezing the organizational cultural and has made efforts accordingly whereas the situation is in contrast. Management is required to emphasize on the communication factor as employees have shown much readiness for change and so less or no friction is expected from second tier employees. Once the communication factor is addressed the change implementation as regarded as most important areas from both sets of employees would be an easier and readily achievable objective. Study results have asserted the relationship of organizational culture with strategic decision making as discussed in the study of Linnenluecke and Griffiths (2010).
In the perception of Top management it is the cultural practices that enable AGI to complete the project within trio factors in contrast to the other peer in the industry that are unable to do so. Furthermore, Top management also believes that higher priced service of the business is also acceptable by clients in comparison with competitors is also the result of competency of the business developed as a result of culture of efficient integration of project management practices.
Top management is also well aware of the implementation importance and level of resistance from the employees. Engineers as well as top management are has asserted the relationship of organizational culture with strategic decision. Top management has perceived the implementation of change management in a scientific manner with employment of manager that is qualified in the domain. Engineers on the other hand have also declared the clear relationship between the two factors as improvement in resource allocation, decision making, emphasized implementation of policies and procedures are to contribute significantly in changing the organizational culture. Kendra and Taplin (2004) study referring to the project management culture for success has also been well affirmed in responses from both sets of employees. Top management considers its culture of empowerment and transparency being the project management culture and key to success in the industry.
In the view of the top management the resistance can be overcome by meticulously addressing and buying in the concerns of the employees. The factor that has been evident in the responses from the top management level employees is the need of effective implementation in more standardized format. To mention role of Lewin’s (1939) is central in this domain as already highlighted in terms of communication. Top management is considering the change had already been started to implement whereas engineers perceives organization must undergo a revolutionary change. To bring both sets of employees on same frequency of change implementation the factor of communication is highly important. Moreover, it is noteworthy that top management is totally inclined and has accepted the need of change that has been introduced in the project management culture of AGI Kuwait to be of scientific level and centrally accepted by lower level employees.
ANALYSIS OF THE QUESTIONNAIRE
Questionnaire responses have significant deviation from the comprehensive and committed to change management in project management culture picture developed from the responses of top management. Engineers do not see that the company really adopts project management processes or there is a project management culture in the company.
Defining the organizational culture, employees like top management also feel company is aligned to key success factors of industry. Employees perceive organizational culture with mixed expressions. For high percentage of the employees believe the culture of AGI to be driven by both internal and external factors. For type of management style gauged as being authoritarian or diplomatic reveal significant single voice from most of the employees being around nearly three quarter (68%) of employees declared former method rule prevailing in organization.
Questionnaire responses related to organizational culture are defined below:
- 60% of the employees of AGI feel that the key success factor of organization in the competitive industry is the culture and structure of AGI. Whereas as 28% employees do not agree with this thought. It means that the impact of change will be very high in driving the organizational success.
- 56% of the employees believe that the culture of AGI completely follows and derive its mission. 20% in the neutral category and 24% disagree. It means that the company is consistent in following its mission in the surrounding of its culture.
- 68% of the employees believe that the culture of AGI is driven by its internal values and some disagree along with some are in neutral side. It identified that internal values are a major factor in driving the culture of AGI.
- 64% employees think that the culture of AGI is shaped by external and market factors. But 20% employees don’t agree with this thought. The major portion of employees believe that the external and market factors influence the organization culture a lot.
- 68% of the employees believe that the culture of AGI is structured with Authoritarian method to deal with the organizational methods. The remaining 32% thinks the organization follow diplomatic method. In evaluating the success of organization it seems that the authoritarian model is well suited for organizational methods.
Linnenluecke and Griffiths (2010) implemented in the stage of change in the organizational culture, for the assessment of the change in the organizational culture in AGI Kuwait employees responded for the need of revolutionary changes in the organization. However, employees despite self understanding of the needs of high level changes in the organizational culture were not sure of fact about the percentage of others sharing opinion. For the requirement of transformational (36.00%) and revolutionary changes (44.00%) in the organizational culture 68.00% employees perceived that only some will share voice.
Questionnaire responses related to change organizational culture are defined below:
- 44% employees prefer a revolutionary change is required to improve the performance of the AGI. 36% favor a transformation change and 20% feels that only alignment is required to improve the performance. It determines that most of the employees want to completely change the culture of the organization for improving the performance.
- 4% employees suggest that all the employees will agree with the suggestion of improvement, 68% believe that some will agree and 28% thinks a few employees will agree.
Segment attempted to reveal the importance of the project management culture to organization as well as project management culture of AGI had interesting responses. Nearly 70 to 80% of employees asserted the importance of factors developing culture of organization and their respective contribution in project success. These factors include organizational culture, skill, supporting system’s contribution in the project success except the role of performance management in the organization that was considered important by nearly 50% (40% for strong agreement and 32% for Agree) participants.
Interesting fact remains that despite the agreement on fact that collectively culture at AGI Kuwait is aligned with industry key success factors (response to question one) low tier employees of AGI are not satisfied with cultural factors’ contribution in the project success. 56% percent of participants have strong disagreement or disagreement on the contribution of AGI’s culture in the project success (Question 12). Employees rate project management practices at AGI informal (44%) while the resource allocation is considered as good to average but the communication has equal mix of people rating it good, average and bad. To mention, near to quarter percentage of people rating communication, decision making and problem solving as bad is main source of concern that has been explored in the study.
Questionnaire responses related to project management culture and its presence in AGI are defined below:
- 68% employees consider that organization culture is very important in making the project successful. While 20% feels it is important and 12% thinks it is unimportant. It determines that the culture of organization plays a vital role in success of any project. The culture of AGI supports every employee to achieve its task effectively and efficiently.
- 80% employees of AGI strongly believe that better project management skills give a competitive advantage to the firm in the industry. The majority of AGI employees believe that the improvements in the project management skills improve the competitive position of the organization. The theory of Kendra and Taplin (2004) should be implemented in the organization.
- 96% employees of the organization completely agree with this thought that policies, rules and supporting environment of the organization plays an important role in project success. The policies and rules of AGI support a lot the employees in the organization.
- 72% employees believe that the performance management system plays an important role in project’s success. While 12% disagree and 16% give neutral opinion. The successful projects of AGI are the result of its performance management system.
- 28% employees think that the culture of AGI is helping in giving surety that the project is completed successfully. Whereas 56% of the employees disagree with this thought. The culture of AGI leads the project to be successful at the time of completion.
- 20% employees think that project management practices at AGI are formal. 44% thinks are informal and 36% answered it is neutral. The data gives a perception that the practices in the organization are being informal in project management.
- 52% of the respondents employees rates the resource allocation practices in AGI are good. 36% says its average. The company is completely allocating the resources for their employees for the success of the organization.
- 36% rates the communication practice in AGI is as good. 40% thinks it is worst or bad. The communication in the organization plays a vital role in the employee’s productivity by clearing them their role in the organization.
- 30% employees rates the decision making practices in AGI are good. 40% thinks they are not good as it should be. The data tells that the practice of decision making in AGI should be improved for gaining the opportunities in a right time.
- 48% employees rated as bad the problem resolution practices in AGI. 36% says its average and 16% believe that it’s good. The organization needs to improve its process of problem solving to solve the issues as soon as possible.
According to Lewin’s (1939) theory change management with respect to the culture management and the implementation of this theory on the process, Employees perceive the great level need and possibility of the improvement in the process and cultural factors for project management at AGI. Change needs are perceived high in the following areas in accordance with priority on the basis of strong agreement are listed below:
- Training of employees – 92%
- Improvement in communication- 80%
- Changes in resources allocation, changes in policy and procedures and changes in the implementation processes – 76% each
- Improvement in areas other than cost – 72%
- Changes in decision making -56%
- Improvement in cost leakages- 56%
- Changes in Team orientation -48%
- 92% employees believe that changing in the communication practices will improve the project results. According to the Linnenluecke and Griffiths (2010) it has identified that the communication process in the organization should be improved to improve the overall performance of the organization.
- 80% employees feel that changes in decision making process will improve the project results. 12% with neutral thought and 8% disagree. Here is strong need of applying the quick decision making process model in every decision making process of the company.
- 76% employees strongly agree that the changes in policies, procedures and practices will improve the project results. 20% employees agree with this thought and 4% disagree wit it. The policies and procedures are the surroundings of the functions of the organization, good change in the policies impact positively on the organization’s performance.
- 76% employees agree that the changes in the team orientation practices will improve the project results. 8% disagree and 16% has neutral thoughts. Team orientation practices of AGI need to improve because most of the employees prefer to change it.
- 36% of the employees think that the probability of improvement from above measures is in between 25%-49%. 28% thinks between 50%-74% and 28% thinks between 75%-100% whereas 8% believe that it will be in 1%-25%. Majority of the employees thinks that by taking all the above measures the organization will improve its position in between 25%-49%.
- 88% employees agree with the thought that improvement in the implementation process will improve the company results. 10% are having neutral thought. Strategy implementation is the most difficult step in strategy implementation therefore if AGI makes improvement in this process then it will get good results in terms of performance improvement and increase in the productivity.
- 48% employees strongly agree that the process improvement must start from top to bottom. 24% agree it as well and the remaining 28% falls in neutral, Disagree and strongly disagree category. The high level management of AGI should implement the change in the organization from top level and then implement it to the other levels of the organization.
- 56% employees strongly agree that processes have cost leakages to be improved in the organization. 36% agree with this thought and 8% disagree with it. AGI is bearing a loss in its process because of the cost leakages. The company needs to improve its wastage elimination program to avoid such losses.
- 72% employee strongly agrees that process needs improvement in other areas then cost. 20% agree with it and 8% give neutral thought. Most of the employees also believe that the process needs improvement in the functions of the company instead of cost.
- 92% employees strongly agree training will improve performance of employees in the project management and the remaining 8% also agree with this thought. AGI requires arranging the training and development of programs for its employees to make their role effective in achieving the organizational goals.
Hence, employees have clearly highlighted the fact project management culture in AGI highly needs the change for improvement.
Anticipation with respect to the improvement in results related to projects with above changes incorporation are significantly positive as observable from the below factors:
Mention worthy is to note employees’ believe that process improvements must necessarily begin from top to bottom. This refers that employees want top management to adopt major changes as in employees view the project management practices had been highly authoritarian.
COMPARISON OF RESPONSES OF TWO SETS OF SAMPLE
The responses from the both sets of employees have some similarities while greater differentials. For similarities, both set of participants agree on the company’s success due to the culture of alignment with industry success factors implementation.
Apparently there is a big gap in perception between top management and 2nd tier of Engineers and that the top management. Top management perceives that change management had been integrated significantly and has also been communicated to the second tier engineers. Moreover, top management also conceives that there had been resistance from the employees for which top management had made efforts to buy in. On the other hand, second tier employees showed the readiness for change but the change implementations from the top management are in all not accounted as any measure by employees. Hence, there exists wide communication gap between the two tiers and cultural change must be implemented to close this gap between the two categories of management and create a culture that allows better communication between the two and strengthens the link for a better transfer of perception from top to bottom management.
Furthermore, both level employees believe improvement in the implementation of process as an important source of betterment in project management culture for the AGI. But two tiers of employees are also not on same page with respect to sharing of power as top management perceive that powers delegation forms the important characteristics of organizational culture whereas tier two employees have defined the culture highly authoritarian.
Another factor of deviation between two sets of employees was revealed in the cost factor. Top management considers that increased pricing of project service from as compared to competitors is the result of process that enables business to achieve success with respect to trio factors of cost, time and scope. However, tier of engineers believe the much possibility of cost reduction as in engineers view there are cost leakages in the system.
Based on the assessment results that reveal engineers perception about improvement in the project efficiency and effectiveness through improvement in project management culture the relationship regressed. Using regression tool it has been explored that project efficiency receive direct impact from improving project management cultural factors and prediction level or adjusted R square of 34% at 95% confidence interval.
Following relationship has developed:
y= a +bx
Y = -4.29 +1.56X
Where: Y is Change in Project Efficiencies and Effectiveness
- Is the intercept referring to the level of improvement in project efficiencies and effectiveness when none of the factors accommodated in X are present.
- Is beta referring to the level of change each unit of X will bring to Y.
And X is Change in Project Management Culture. Variable X contained weighted incorporation of variables including resource allocation (10%), communication (20%), decision making (40%), policy and procedures (20%) and team orientation (15%).
Negative value of intercept refer that improvement in the project efficiency and effectiveness of the project management will be none (negative) in case of absence of any variable. The equation refers that each unit of X will bring 1.5X change in effectiveness and efficiency of project success. To mention 34% of adjusted R square is a less in predicting the impact of factors at work due to small sample size of just 25 entries. Therefore, the results can further be tested for the reliability with greater sample size. The assessment results are attached in appendix.
The results assert the theory of Kendra and Taplin (2004) related to project management culture for success. The positive relationship result of underlying study asserts result of Linnenluecke and Griffiths (2010) study referring to the relationship of organizational culture with strategies and decisions. Hence, AGI can improve project performance with introducing improvement measures in strategic matters.
The underlying chapter develops the assessment of the data collected for the research related to the organizational change to a project management culture in an organization. The assessment reveals that organization can improve its project success with introducing measures for improving project practices.
List of References
Kendra, K., & Taplin, L. J. (2004). Project success: A cultural framework. Project Management Journal, vol. 35, no. 1, pp. 30-45.
Lewin, K. (1939). Field theory and experiment in social psychology: Concepts and methods. American journal of sociology, pp. 868-896.
Linnenluecke, M. K., & Griffiths, A. (2010). Corporate sustainability and organizational culture. Journal of World Business, vol. 45, no. 4, pp. 357-366.