Project Management Manual

PROJECT
MANAGEMENT
MANUAL
Project Management Manual
Government of Romania
Department for European Integration
prepared by
13 RUP
Saal!5
financed by the
European Commission - Phare Programme
Phare

Message from the Minister
Message from the Minister
As the policy of reform is now well developed and we continue our

preparations for membership of the European Union, we recognise the
utmost importance of the value of our human resources. Training our
most valuable asset, Romanian personnel, will continue to be one of
our highest priorities.
The material of this Manual is based on the Project Management
Training 1997 courses run in Sinaia by the Departml3ntfor European
Integration widely acclaimed by participants from aII our ministries as
relevant, interesting and useful. Through this Manual the benefit of this
training can now be available to a much wider audience to be used as
a resource for self-Iearning, a reference book for updating knowledge
and a guide to project management.
We are grateful to the Phare funded training experts, both foreign and
Romanian, organised by SOGES of Italy who have contributed
significantly to our efforts to "reach for the heights".
Alexandru Herlea
Minister for European Integration
. ----- ------ProjectManag,ment .NJanual

COr'ltents
Contents
1.
Introduction to the Project Management Manual
II.
Introduction to Project Management
11
1.
General
1.1
1.2
1.3
12
13
14
16
overview of Project Management

Definitionof a Project
Definitionof Project Management
The difference between Project and Organisational
Management
1.4 Role of the Project Manager
17
2.
The Project LifeCycle
20
III.
Programming - Design &Preparations
24
1.
Introduction
25
2.
Identification,Analysis and Formulation

2.1 Needs analysis and setting objectives
2.2 Identificationof Potential Projects
2.3 Analysis of Projects
2.3.1
Example
2.3.2
Feasibilitystudy
2.3.3
Risks Analysis
2.3.4
LogicalFramework Method
26
27
30
31
32
36
41
43
3.
Documentation of proposals
52
53
57
57
58
62
63
64
64
64
64
3.1
Overviewof the Decentralised ImplementationSystem (DIS)
3.2
Financing Proposal
3.2.1
Purpose
3.2.2
Format
3.2.3
Approach
Financing Memorandum
Strategic Plan
3.4.1
Purpose
3.4.2
Format
3.4.3
Approach
3.3
3.4
~...
ProjeCt Manage~ent
Contents
3.5
3.6
--
"""""""'-"".-,
Manual
65
65
65
66
66
66
67
Work Programme
3.5.1
Purpose
3.5.2
Format
3.5.3
Approach
Terms of Reference
3.6.1
Purpose
3.6.2
Contents
IV.
Implementation - Management & Techniques
70
1.
Introduction
71
2.
Preparation, Appraisal and Commitment

2.1 Identifying Resources needed and available
2.2 Planning
2.2.1
Packaging of projects
2.2.2
Activity and Resource Planning
2.2.3
A final word about Planning
2.2.4
Case study
72
73
74
74
76
78
79
3.
Management, Monitoring and Reporting
- what
3.1
Preparation for a project
3.2
3.3
3.4
The tendering process

Conclusion of contracts
Implementation
3.4.1
Project marketing
3.4.2
Monitoring
3.4.3
Quality assurance
3.4.4
Reporting
3.4.5
Problems with implementation
do we need?
84
85
86
94
95
95
98
102
104
104
4.
Evaluation
4.1 Definition - Why, Who, What
Example
4.2 Types of Evaluation
4.3 Project sustainability
109
110
113
115
116
5.
Consultants and Stakeholders

5.1 Use of consultants
5.1.1
Use of Consultants in General
5.1.2
Why use consultants?
5.1.3
Use of consultants in different stages
of the Project Cycle
5.1.4
General Comments on Use of Consultants
118
119
119
121
123
125
Project Management Manu~1

Contents
5.2
Consultation with stakeholders

5.2.1
Identification of Stakeholders
5.2.2
Why/when to consult with Stakeholders?
5.2.3
Why do Stakeholders promote Proje,cts?
126
126
126
6.
Getting the Best out of the System
130
v.
project Management Skills
133
1.
Development of Management
1.1 Perspectives in Management
1.2 Traditional Perspective
1.2.1
Principles of Management
1.2.2
Critique of Traditional View
1.3 Human Relations School (Semi - open System)
1.4 Open System Approach
1.5 Human Resource Development and Management
1.6 What Skills are Necessary for Effective Managers?
Exercise
134
137
140
140
142
143
144
146
150
152
2.
Managing self, Interactions and Achieving Results

2.1 Self in Interaction with Others
2.2 Assertiveness
Exercise
2.3 Achieving Results
2.4 Negotiations
2.5 Qualities of Successful Managers
2.5.1
Learning
2.5.2
How to Manage Your Time
Exercise 1
Exercies 2
2.5.3
Improving Time Usage
155
156
162
170
174
178
183
183
184
185
186
188
3.
Information, Communication, Meetings and Personal Skills

3.1 What is Communication? Some Definitions
3.2 Creating the Right Channel for Communication
3.3 Barriers to Effective Communication
3.4 Communication Styles
3.5 Listening skills
3.6 How to Manage Meetings Effectively
3.7 Effective Communications
189
190
193
194
196
198
200
204
oi J
Proje~t ~nagement
..,Gontents
3.8
Manual
206
209
211
212
Planning your Presentation

Exercise 1
Exercise 2
Case study
4.
Motivation, Leadership and Delegation

4.1 Approaches to Motivation
4.1.1
Need Theory
4.1.2
Incentive Theory
4.1.3
Expectancy Theory
4.1.4
Guidelines for Managers
4.2 Leadership in Organisations
4.2.1
Traditional Approach
4.2.2
Behavioural Approach
4.2.3
Contingency (Situational) Approach
4.3 Guidelines and Action Levers
4.3.1
Objectives of a Leader
4.3.2
Factors Influencing Success
4.3.3
Leadership Roles
4.3.4
Leadership Skills
4.3.5
Select an Appropriate Management Style
4.4 Delegation
4.4.1
Choosing who does the Work
4.4.2
Giving out the Work
4.4.3
Guidance and Development
4.4.4
Monitoring Performance
Case study
214
216
216
218
219
220
220
221
222
225
227
227
228
229
230
232
233
234
235
236
236
238
5.
Conflict, Culture and Problem Solving

5.1 Organisational Conflict
5.2 Management of Conflict
5.2.1
Peaceful Co-existence
5.2.2
Compromise
5.2.3
Problem - solving
Case Study
Exercise
5.3 Organisational Cultures and Conflict
5.4 Modes of D~aling with Conflict
5.5 Encouraging Creative Thinking and Generating Solutions
Exercise
Case study
240
241,
244
245
245
245
246
248
254
256
258
260
261
Management of Change
6.1 The Process of Change
6.2 The Consequences of Change
263
264
266

Contents
6.3
6.4
6..5
7.
Resistance to Change
Managing Change
Exercise
Action Plan: A ManagerialTool
266
268
274
279
Working With Others in a Team

7.1 Introduction
7.2 Developing Teams for Projects
7.2.1
Effective Team Development
7.2.2
Team building in Project Management
7.3 Who Does What in a Group (Team Roles)?
7.4 Quality Circles
Case Study
283
284
287
288
290
293
296
298
Addresses of the National Co-ordinator for foreign Assistance, PMUs and

other aid co-ordinating units
301
Contributors to the Project Management Manual
327
Acknowledgements
332
Glossary
333

Abbreviations
Abbreviations
C~P
Country Operational Programme
CRIMM
Romanian Centre for Small and Medium Size Enterprises
CV
Curriculum Vitae
DG
Directorate General
DIS
Decentralised Implementation System
EC
European Commission
FIDEL
Local Development Initiatives Fund
FM
FP
Financing Proposal
FS
Feasibility Study
ITT
Invitation to Tender
LFA
Logical Framework Approach
LDF
Local Development Foundation
MIP
Multi-Annuallndicative Programme
NGO
Non-governmental Organisation
PAEM
Programme for Active Employment Measures
PAO
Programme Authorising Officer
PMU
Programme Management Unit
SME
Small and Medium - sized enterprises
SMELDC
SME/Local Development Centre
S~P
Sector Operational programme
SP
Strategic Plan
TA
Technical Assistance
TOR
Terms of Reference
USAID
United States Agency for International Development
VAT
Value added tax
WP
Work Programme
7
-....-
Introductionto the Project Mana"
. .- -- -- - -1.
Introduction to the Project Management Manual

Introduction
to the ProjectManagement
Manual
Introduction
to Project
Management
Programming
Design &
Preparations
Implementation
Management &
Techniques
Project
Management
Skills
7"
Introductionto the Project ManagementManual

..
---. - - -
Who is this Manual for?

This manual is intended for Phare Programme Management Units
(PMVs) and other aid co-ordination units,'more specifically for
new members without any idea about project management or

Phare procedures who need basic training
members with some experience in project man'agementwho need

a source of information
experienced members who need checklists and guidelines
Why do we need another Manual?
MostPhare activities are involved in projects and therefore project

management is a ~ey discipline within PMUs. It is important that
members of PMUs do not just know Phare procedures in a mechanical
way but also understand the management techniques required for
eftective management of projects, the purpose of documents and the
interactions between project management techniques and Phare
documentation.
How should this Manual be used?
We hope that the manual will not be left on the shelf, but will be used
on a regular basis. We intend that this manual should be:
.
.
a resource for self-Iearning
a reference-book with Romanian project examples for better

understanding
a practical guide for managing projects.
a reference-book for updating of knowledge
It is not the intention just to write another general, theoretical book on

project management, but to provide the target groups with a Manual
which provides the beneficiarieswith
a theoretical introduction and explanation of what is project

management
a detailed explanation of aII relevant instruments and techniques
-..--Introductionto the Project ManagementManual
---
practical advice on how to workwiththese instruments and

techniques
examples of Romanian projects for each phase of the project cycle

and withcomments
details of the skills required for project management and how they
can be developed
What is in this Manual?

The manual consists of the following sections:
.
.
..
a general introduction to Project Management and the Project LifeCycle

a section on programming, design and preparation including both
general idea of identification and analysis of projects, and details of
relevant Phare documentation
a sectionon implementation,
managementand techniques
including both the theoretical background of planning and project
appraisal and more detailed examples of the procedures for
management, monitoring and reporting, and evaluation, as well as
some guidelines for use of consultants and consultation with
stakeholders
a section on the necessary management and personal skills

involved in project management
Chart : Purpose of the Project Management Manual
10
Introductionto Project Management
II.
Introduction
to the Project
Management
Manual
Introduction
to Project
Management
Programming
Design &
Preparations
Implementation
Management &
Techniques
Project
Management
Skills
11
---
-- -
Introducti()nto.Pl'<,)j~ctManagement
General ovijtviewof Projecl Maoagt:i!TIent
... .. - - - - ~-~
1.
... ...~
General overview of Project Management
ThfS chapter includes
definition of a project
.
.
definition of project management
difference between project and organisational

management
role of the project manager

1.1
Definition of a Project
To talk about project management, we first need to be sure we know
what we mean by a project. Although the term is widely used, and we
aII think we know what it means, producing an adequate short
definition is very difficult. This is because the border line between
something which is a project and something which is not is rather
poorly defined.
We can therefore use a very general definition such as the Oxford
English Dictionary which defines a project as:
Plan, scheme
This is so vague as to be unhelpful in trying to look at project
management.
Alternativelywe cantry to makethingsas specificas possible.Some

examplesof definitionsfromliteratureon projectmanagementare:
An activity (or, usually, a number of re/ated activities) carried
out according to a plan in order to achieve a definite objective
within a certain time and which will cease when the objective
is achieved.
A collection of linked activities, carried out in an organised
manner, with a c/early defined start point and end point to
achieve some specific results desired to satisfy some c/early
defined objectives.
A group .of activities that have to be performed
in a logical
sequence to meet pre-set objectives outlined by the client.

It may make it easier to define if we instead list the characteristics of a
project, which would include:
a start and a finish date
a budget
.
.
activities which are essentially unique and not repetitive
roles and relationships which are subject to change and need to be

developed, defined and established
a life cycle (which we will examine later)
13

General overvew of Project Management
This s a very general definition. Phare has a 'fery specific definition of

programmes and projects as follows:
Definition of a Programme
A programme is a measure decided by the European

Commission in favour of a recipient country or agroup of
countries to be translated into a number of activities to be
performed, and supported by a financiaJ commitment made out of
the EC budget. A programme is the subject of an individual
financing memorandum and is aimed at implementation of the
aide from the EC in a certain field.
Definition of a Project
A project is the first level of subdivision of a programme. and
normally comprises a number of sub-projects.
1.2
Definition of Project Management
Definition of Project Management

One definition of project management could be:
Project Management
is a dynamic process, conducted
within a defined set ofconstraints, that organises and

utilises appropriate resources in a.c;ontrolled and structured
manner in order to achieve some clearly defined
objectives.
Alternatively, we can be more concise:
Making
the project happen.
"14J

As with projects, it may be clearer to define some of the characteristics

of project management, rather than trying to make a single definition.
Project management should be:
.
.
.
objectives-orientated
innovative (seeking new ideas and solving new problems)
.
.
control-orientated (to ensure it actually finishes)
change-orientated
multi-disciplined
performance-orientated
fIexible (quickly adapted to changes)
This requires a w;de var;ety of management and personal skills, wh;ch

we examine in greater detail in section "V. Project Management SkiIls"
of this manual.
Key areas to consider when looking at project management are
management of time, people, and other resources. In general terms,
these activities can be described as follows:
Management of rime
Ensuring that the project completes its work on time
Scheduling use of resources
Rescheduling the project in the light of experience
Predictingproblemsbeforetheyarise
Management of People
.
.
.
.
.
Ensuring that people are available at the right time

Ensuring that personnel know their roles and can perform their
functions properly
Managing people's expectations
Resolving conflicts between people
Changing people's roles in the light of experience
15
-- ----Introductionto Project Management

General overview of ProjectManagement
Management of Other Resources
Ensuring that approp~iateresources are allocated

Ensuring that the appropriate resources are available at the right
time
Reallocating resources in the light of experience
Tailoring activities to limited resources

Making maximum impact with available resources
Does your PMU have the skills to manage these resources and make
the project happen? The next chapters present in more detail the
exact techniques, but you may tind it useful to look at the management
and personal skills section to see what othei work you need to do to
increase your performance.
1.3
The difference between Project and Organisational Management

Of course there are many similarities between project and
organisational management, but the nature of projects means that
there are some differences of approach as well. These include:
the lack of permanence of staff: people might be employed on a

temporary basis or as consultants
the lack of permanence of roles of staff: people involved in the
project may play very different roles at different times; the hierarchy
is not so clearly set
These two points mean that management of people and personal skills
are very important. Too otten project management is seen as a purely
technical subject connected with planning techniques: to be effective
skills in dealing with people are just as important
there is a clear plan, time frame, and budget for the project and
thereforeplanningwithinthis is importantin organisational

managementtheconstraintsarefrequentlynotso clearlyset
there are clear overall objectives and a time frame in which to

achieve them success will be measured against the ability to meet
objectives

1.4
stakeholders play a more important and direct role a project

manager should take into account the specific desires and interests
of donors, target groups, and aII institutions co-operating in the
implementation,whereas a manager in an organisation is primarily
interested only in direct clients and shareholders.
Role of the Project Manager

As a project manager you have to devote yourself to maintaining a
balance between the demands and needs of:
.
.
.
the project and aII its ultimate beneficiaries
.
.
the Ministry in which the PMU is situated
the Project Management Unit (PMU) and the team in the PMU
any outside support (technical assistance) contracted to support
the project
the European Union and its procedures and constraints
This oroduces very wide expectations from aII the actors above which
will require you to demonstrate:
your ability to use project management tools and techniques

(includ ing very specific ones demanded by Phare)
.
.
effective team leadership skills
ability to maintain control in a situation subject to great risks and

where aII kinds of unpredictable issues can arise.
ability to conform to established procedures, even when the project

is new and experimental
A major part of project management is related to dealing with

"stakeholders" by which we mean someone who has an interest in the
project. This is a much wider set of actors than the immediate
beneficiaries of the project. An absolute definition is difficult to make,
but could be between:
17
-..--
"""--

Definition of Stakeholders
- --
,...""'"__ _000
Any person, group of people or organisation who has CiVested

interlilst in the project now or in the future-
or the broader definition of

Anybody who is affected by or can affect the project
It should be noted that:
stakeholders' attitude can be both positive (supporting a successful

outcome) or negative (trying to stop the project)
stakeholders can be both individual and collective (e.g. individual

enterprises and associations of enterprises can both be
stakeholders in a project and do not necessarily have the same
interests and opinions)
Why Are .Stakeholders important?

Stakeholders are important to a project because:
they can be critical in its success or failure
they can have a much better understandingof the feasibility of
differentactionsandthe resourcesrequiredto reachcertain

objectivesthanan outsiderto the project
their expectations need ta be managed
they can provide important information on the progress of the
project
As a project manager you therefore need to:
manage the team of people who will be part of the project for its
whole duration
identify and manage stakeholders of aII descriptions
18

manage the risks involved in the project and plan the project in an
appropriate way
.
.
resolve problems as they occur

ensure an acceptable outcome of the project.
This means that you need skills in:
project management tools and techniques (see sections "IV.

Implementation - Management & Techniques")
understanding of how to deal with consultants and stakeholders

(see section "IV. Implementation- Management & Techniques:
Consultants and Stakeholders")
appropriate personal and management skills (see section "V.

Project Management Skills")
19
Introductionto. Project Management

The ProjectLifeCycle
I, 2.
-...............
----
"" ..-........
The Project Life Cycle
Thls chapter includes
The different phases of the Project Life Cyde

Identification, Analysis and Formulation
Implementation, Monitoring and Reporting
Evaluation
20

The Project Ufe Cycle
As already mentioned, every project has a life-cycle: in other words,
very different types of activities take place at different times during its
execution.
Clearly, every project is different. The following is an attempt to break
down the project life-cycle into different phases for the purpose of
discussion. This model is in some ways too simple, since there is
some interaction between these phases (for example, the preparation
phase may cause the identification of new project~ or redesign of the
existing one). For each stage of the project life cycle we indicate the
documents which are used by Phare in planning and monitoring.
These documents are described in greater detail in chapter
"Programming - Design & Preparations: Documentation of Proposals"
Identification,
Analysis and Formulation
This phase is one of identifying the problems which need to be

addressed and analysing the ways in which they can be addressed.
This would include, for example:
.
.
analysis of existing situation
problem analysis
.
.
prioritisation of issues
decision on whether a project is appropriate
definition of the project idea
consultation with stakeholders
establishment of overall objectives
problem/needs identification
In terms of Phare, this phase corresponds to the preparation and use

of the Multi-Annuallndicative programme (MIP) and the Country
Operational Programme (COP). The COP itself is formed of a number
of Financing Proposals/Financing Memoranda.
21


This phase is one of defining more clearly the actual project, who will
do it, what resources are available, and how it will be divided into
diffe'renttasks, This would include:
specification of objectives and results
identifying resources available for the project
identifying resources needed for the project
.
.
design of the project

packaging and planning of the project
For Phare this includes producing initial TORs and tendering,

contracting TA for the programme, and launching the project. This
phase corresponds to the preparation and use of the following
documents: Financial Proposal and Financing Memorandum in detail
(if appropriate), TOR for the project, initial Strategic Plan (SP) and
Work Programme (WP),
This phase is one of actually performing the project and ensuring that
the objectives are met and the outputs made, inasmuch as this is
possible. This include:
.
.
.
.
.
.
mobilisation of resources for each task and objective

project marketing
ongoing monitoring and reporting arrangements
identifying problems
addressing failures
modification of the planned results and project objectives as
appropriate
For Phare this phase leads to the production of successive Strategic

Plans and Work Programmes as well as other reports on the
implementation of the project.
22

Evaluation
Evaluation of the results of a project is important for several reasons,

including:
.
.
.
.
assessing whether the contractor has truly completed the task

identifying best practice for further projects
identifying what resources are required for the flJture (if something
goes wrong this may mean that more resources are required rather
than that the project has failed)
identifying the need for future projects
Evaluation should be a natural part of the process and not seen as a

"punishment" for a project which has failed to perform.
For Phare, there are a number of sides of evaluation including financial
reporting, independent evaluations and auditing.
For the remainder of this manual we do not go into the details of the
different stages in the way shown above. Instead, we wish to
concentrate on the practical side of Phare project management.
Accordingly, in section II. we consider design and preparations for a
Phare project including how to produce individual documents required
by Phare for identification, planning, and starting in implementation. In
section III. we consider the problems of actual implementation. In
some sense, therefore, we cover phases 1 and 2 of the project lifecycle in section II. and phase 3 in section III. We consider evaluation in
section III., but not in detail, since this phase is not formalised by
Phare, even though it is clearly very important.
23
---
-- ----------
Programming-.Design
------III.
&. Preparations
--
--Programming
Design& Preparations
Introduction
to the Project
Management
Manual
Introduction
to Project
Management
Programming
Design &
Preparations
Implementation
Management &
Techniques
Project
It
Management
Skills
Programming - Design & Preparations

Introduction
1.
Introduction
In this section we consider aIIthe activities which have to be
performed before the project starts the implementation phase.
We therefore consider first of aII how projects (and programmes, in the
case of Phare) are identified, and the analysis necessary for initial
project design. Even if this model of project selection is not always
followed in Phare, it is a useful guideline, since it forces consideration
of a lot of different questions, and helps in the clear setting of
objectives and design of a project - which is essential for successful
implementation.
After identifying the project, we consider how it should be planned in
the Phare system, in particular regarding the preparation of different
documents:
the Financing Proposal,which proposes a Phare programme to the

European Commission for funding, and the Financing
Memorandum which is the contract for using the money which is
produced as a result of a Financing Proposal;
. the Strategic Plan which is the overall operational plan for the
programme;
the Work programme which is a progress report used to justify

advances of funds from Brussels to the PMU;
Terms of Reference which is the essential part of a Tender

Dossier, used to select contractors for particular tasks and to form
a contract with the winning contractor.
The actual use of these documents in monitoring and evaluation

during the implementation phase of the project is explored in more
detail in Section 3.
25
Programming - Design &.Preparations

Identification, AnalY$is and Formulation
2.

This section includes background information on the first phase of the
project life cycle.
To reiterate, this phase consists of.
establishment of overall objectives
analysis of existing situation
problem/needs identification
problem analysis
prioritisation of issues
decision on whether a project is appropriate
definition of the project idea
consultation with stakeholders
These techniques will allow you to identify the information which is

required for the production of a Financing Proposal (described in
detail in the next chapter)
Setting objectives and analysing the real needs is an essential part of
project design, particularly since it is at this stage that alternative
designs and formulations are considered. In many cases, Phare
programmes are designed on the basis of justifying an existing project
idea by finding objectives which are acceptable to Phare, rather than
considering the real objectives and consequent alternative projects
and sub-projects. We therefore urge you to read this section, even
when the programme seems already well defined, in order to ask
appropriate questions before the project is finally designed.
26
Programming -Design &Preparations

2.1
Needs analysis and setting objectives

Most literature on project management indicates that project selection
should proceed mainly on the basis of financial objectives and there
are a number of different procedures for examining the best financial
solution. Projects under the Phare programme can be more
complicated since, in particular:
the objectives are set by outside agents (typically the government

or the EU)
the objectives are often not financially quantifiable and the budget
is a constraint rather than an objective (Le. the question is how to
do the most with a given budget rather than how to achieve a
specific objectives with the lowest amount of money).
Project management typically consists of balancing three different

factors: time, money/other resources, and quality/specification. In
many commercial projects the specifications are clearly laid out (the
exact specifications of a new road, the requirement of a new computer
system etc.), and the time is a constraint (there will be damages ta pay
if the road is not built by a certain deadline, the computer system has
ta be up and running for the new financial year etc.) and therefore the
major management issue is managing the budget ta keep it as low as
possible whilst meeting the fixed specifications and the time
constraints. In Phare projects the situatian is different. The exact
objectives are set by the PMU and can be varied. The budget is
generally not at aII variable (certainly it cannot be.increased)and the
time is a constraint, but normally not a very significant one. This
means that setting the specifications and objectives is extremely
important, since these are the flexible part of the system. If the
objectives are not well set, the value for money will not be as good as
it could have been.
27
,..".---Programming-<Design&Preparations
Identification, f'nalysis and Formulation
Chart : Factors of Project Management
Time
Project
Money/Other resources
Q uality /Specification
As a result, analysis of needs and setting of objectives deserves more

attention than is often the case with commercial projects.
Understanding
Overall Objectives
In order to identify problems (and even beneficiaries) it needs to be

clear what the overall objectives of the project are. If the objectives are
practical and immediate, it may be possible to leave much work to a
consultant appointed and an institutional beneficiary is of little
significance. Conversely, if institutional development and selfsufficiency are objectives, it is important that an institutional
beneficiary is involved from the beginning.
Objectives at this level are generally not set very well by potential
beneficiaries who willlook first of aIIto protect their own interests.
From the point of view of Phare, it is important to understand:
what overall objectives are set for the programme in Phare's

planning documents - the MIP and related documents (COP from
the previous year, S~P etc.)?
what indications are contained in Agenda 2000, the European

Commission's opinion on the Accession of Romania into the EU?
in the context of the MIP and C~P and the potential integration of
Romania into the EU, what are the key objectives in this sector?
what is the stated government policy for the sector and the
government's stated objectives?
has the government any stated objective on the use of Phare funds
in this sector?
---
Programming Design &Preparatlons

Identification, Analysisand
Formulation
In this analysis, it should be noted that there are different types of

objectives and in particular:
there is a difference between quantitative and qualitativeobjectives
there is a difference between longer term (wider)objectives and

short term (immediate)objectives.
Any normal project will have a mixture of different types, of objective

and these will need to be measured separately.
Phare makes a clear definition of different types of objectives as
follows:
A wider objective defines
the overall deveJopment orientation to which the programme
shouJd contribute
(normally defined in the Financing Proposal).
An immediate objective defines

the positive impact of the programme for the beneficiaries
withina particularsector and / or region
(again normally defined in the Financing Proposal)

Results are
the direct benefits of the project in the form of a change in
physical parameters, potential of institutions, behaviour of
target groups etc.
Outputs are
tangibJe products and /or services provided by the project to
the direqt target groups.
29

A quantity (for a quantitative objective) is definl;!das a

target value to be achieved in a particular .time (i.e. how
much).
A quality (for a qualitative objective)

is a description of characteristics (i.e. how well).
Finally, we should not forget considerations of quality, and therefore
ensure that objectives relate to quality and notjust time and budgets.
2.2
Identification of Potential Projects

Often within a Phare PMU, the problem would seem to be too many
potential projects rather than too few. Even 50, it is worth considering
whether there are additional projects to consider before starting to
prioritise and select them. Moreover, it is important to consider
alternative ways of reaching the same objectives as different projects:
at this stage the exact method of implementation should not be set.
Ideas and sketches of projects can come from a number of sources,
including:
Project sponsors (in which case the question.is who benefits: the
sponsoror the ultimatebeneficiary?)
Government and Ministries (in which case: is this project relevant

on the ground or is it merely a political necessity to be seen as
doing something?)
Outside experts and their experience (in which case: is this project
as relevant to the needs and situation in Romania as it is in other
countries?)
Analysis of the needs in a particular sector

is a project in itself.
30
- possibly
this analysis
Programming-D~ign$Pt~par~ns
- - ---
Identification,Analyslsand Formulation
2.3 Analysisof Projects

When potential projeets have been identified, they need to be further
analysed before being adopted. Some suggestions for the way this is
dane are presented below:
Prioritise Project Proposals

It is impossible ta do adequate researeh and eonsultation regarding aII
possible problems and projeetswhieh appear. Prioritisation needs to
be dane. This should be dane on:
.
.
.
the degree ta whieh projeets fit wider objeetives,

the immediate appearanee of value for money of projeets (in other
words, projeetswhieh do not even claim ta have any major benefit
relative ta the eosts should be eonsidered last),
the appropriateness of the size of the budget relative ta the
resourees available from Phare. The budget for a single projeet
should not be too high a proportion of the overall budget, but in
addition, a PMU eannot eope administratively with too many very
small projeets, sa that projeets need to be a reasonable size. It may
be possible ta amalgamate several smaller projeets into a larger
one, ar ta define a new projeet as the management of a large
number of small projeets.
Do Research
Nobody gets a reward for re-inventing the wheel. Has the projeet been
dane before, perhaps in another eountry? What experienees in othef
eountries/ regions/ seetors do you know about and ean find their
experienee?
What basie statisties do you have an the problems you are trying ta
address? If they don't exist, what estimate ean you make? This is
important partieularly in estimating resourees and the size of the target
audienee ar number of ultimate beneficiaries. Researeh needs ta
clarify what the problems are. For example, it is not suffieient ta say
"SMEs have problems with finanee: therefore we should support a
eredit tine for SMEs": the problem needs ta be better speeified (What
problems with finanee? Are the problems eonneeted with other
defieiencies sueh as marketing? Is this a temporary problem we are
trying ta salve, ar is it an institutional one in the banking system?), the
size of the problem needs ta be better quantified (how many SMEs
31
- - -----Programming-Design&P"epa..ations
Id$otification,Analysisand
FormulatiOn
have viabie business plans which the banks will not finance? How
many of these would go to a government-spol)sored scheme?) and
the expected improvement needs to be considered (if an SME was
given free money, would the business expand or would the owner
have a better house?).
2.3.1
Example:
In 1994, the Government of Romania decided to submit to the

European Commission a Financing Proposal for a new Programme for
SME and Regional Development. As a prerequisite, a sectorial
analysis sector was elaborated and it is briefly described in the
following chapter:
Analysis of the SME/Regionai Development Sector in Romania

(1994)
1. SMEs in Romania: Curreht Situation and Policy Support
1. The Situation ofthe Small and Medium Enterprises
Romania in 1994
.
.
(SME) in
no private sector in Romania before March 1990

explosive growth in the succeeding four years - 533,757
private companies by January 1994; 65% in trade and
services compared to 35% in productian
28% of exports and 23% of imports provided by private

companies
.
.
one million employees working in the private sector

the major factors which inhibit growth:
lack of finance on resonable terms
lack of services to entrepreneurs
unclear govemment policy towards the private sector
32
- --Programming - D.ign<&PreparatiOns
Identification, Analysisand Formulation
2. Progress of the 1992 SME Development programme
a total budget of 10 MECU has been implemented through the

Romanian Centre for Small and Medium Size Enterprises
(CRIMM) Foundation, including:
support to CRIMM and SME Development Centres,
including actions in support of policy
favourable atmosphere for SMEs
pilot projects: Business Innovation Centres
pilot projects: conditionat grants
3. Policy support for SMEs
needs:
a clearer policy towards the SME sector within the
government
development of an efficient system for cOnsultationwith
the private sector
development of a system of consultation with other
government institutions
development of capacity for coordinating the network of
business advisory centres
improve background activity for policy development and
reporting capability on the SME sector
development of capability to collect and disseminate
information on the SME sector
specific policy proposals to be mae in the following areas:
tax policy, relationship between the State and private
enterprises, financing for SMEs
33
--_11II_-- __ .......__
Programming - Design &Preparatlons
Identification,Analysis and Formulation
II.Local Development Situation in Romania
1. Socio-economic context of local initiatives
eonstraints:
laek of information:statistical data, surveys, indicators of
needs
lack of support and effective financialand administrative
capacity to develop local economic and employment
initiatives
laek of elear regulatory environment eoneeming
eommerce, finance and banking
priorityareas for aetion:

to support the development of reliable indicators of local
need and development potential
to support detailed poliey development in the field
2. LocalEconomic and Employment Jnitiatives

. a widerangeofactorsare operatingat locallevelin Romania
local govemment bodies have begun to assert a separate role

in development efforts from the central state authorities
.
.
there is a specific support offered by Phare Programme and

other donors to NGO-typebodies at loeal/regionallevel in the
fields of economic and employment development
support from local centres and initiativeshas started to sow
the seeds of a potentiallyimportantcountry-widenetwork of
intermediarystructures whichwould facilitateand assist local
actions
eonstraints:
the lack of loeal/regionallevel strateg ies and the lack of
cohesion between aetions to support SME development
and other loeal/regional development actions
an ambiguity in existing legislation concern ing
decentralisation of responsibilities and finance
a potential overlap and duplication of structures and efforts
the laek of effective financial instruments and generally
insufficient provision of funding for local actions
34
---Programming...D_ign&Preparations
Identification,Analysisand Formulation
1iII...'.~,,*,
Consult with Stakeholders

After doing basic research, it is important to g0 to the main
beneficiaries and stakeholders of any project to determine their
opinion and negotiate with them regarding what they see as the most
importantproblemsandthe mosteffectivesolutions.....
Example (continuation):
What are the potential stakeholders in a SME and Regional
Oevelopment Programme?
Following the aforementioned analysis, the~e stakeholder$ might
be:
.
.
The European Commission (the donor)
.
.
The Project Management Unit (the implementing agency)
SME/Local OevelopmentCentres (beneficiaries/implementing

bodies)
.
.
.
entrepreneurs associations (beneficiaries/implementing bodies)
others: local non-govemmental organisations, large companiesit
The Government of Romania (the recipient), and its specialised

bodies (Council for Reform, National Agency for Privatisation,
Romanian OevelopmentAgency)
SMEs (beneficiaries)
trade unions (beneficiaries)

local government (beneficiaries)
15 it a project?
Before commencing with the detailed design and packaging of

projects, it is important to be clear whether what we have come up
with is a project or a plan for a new organisation or institution.
A project is usually needed in order to :
.
.
.
test something new (an idea, a mechanism, a service)

promote something new
solve a specific problem (train a given number of people,
privatise/restructure a company, build a raad)
35
................-..
PrQgramn1i...g...D8IJign&Pteperatkms
Identification,
AnalY$isand
FOl1'1)ulatiOn
Conversely, an institution is needed to:
offer regular services (maintain a road)
carry out an ongoing activity (a business, policy-making etc.)
We should return to the definition of a project and consider:
.
.
.
.
.
does it have a defined start and finish date?

does it have a defined budget which is sufficient?
wiUthe actions be repeated in the future?
are the roles of the people involved temporary or permanent?
is there a reallife-cycle to the project or does it have a life of its
own?
If we have gone through the stages above as a PMU, we should now

be in a position to identify the wider abjectives which we want to
achieve and the projects which will support these wider objectives.
This is effectively the informationwhich is put in the Financing
Proposal for Phare (see belaw). To complete the informatian required
for a Proposal, there may be a need for two further actions:
2.3.2
Feasibility Study
Purpose
The Feasibility Study (FS) is a preparatory document. It is not
compulsory for any Phare programmes, but whenever used is
instrumental to properly define a future programme.
A Feasibility Study is usuaUyrequired when a programme is identified,
but a significantly large number of key issues are stiUunclear. Under
such circumstances, different approaches might be considered. The
aim of the Feasibility Study is to check the basic hypatheses, to
assess the major assumptions and risks, to explore the possible
approaches and to suggest which one is the most appropriate to the
respective programme. In other words, a Feasibility Study is meant to
recommend to the decision makers which is the best way to take in
order to reach the objectives and to effectively address the needs of
the sector/target group/region. It has a major role in defining the set of
actions to be undertaken, the implementation arrangements and the
budget.
36
--~
- -.. ..--
- --
... _.
,,~
Programming-Design
& .Preparatlons
Typical areas where the feasibility of Phare projects is questionable

are as follows:
the question of whether the proposed beneficiary institution is

capable of managing the project (it may be appropriate to have
training and institutional devel~pment as an initial stage before the
main project is implemented)
the actual time it takes to spend money on a large number of small

actions (there may be a need to produce some form of "cascade",
for example training trainers in order to train a much larger number
of people)
the ultimate beneficiaries need convincing of the benefits of the

project (there may be a need for a promotional and awareness
campaign early in the project)
the project assumes changes in rules and regulations which are not
certain (consideration should be given to ways of implementation
which do not depend on this, or the project should be made very
clearly conditional on adoption of new laws)
the need for accountability and bureaucratic checking means that

the proposed project does not meet its objectives of moving quickly
and efficiently (this is a particular problem with financial
instruments)
Responsibilities
The Feasibility Study is normally carried out by an independent
prof9ssional team of consultants, especially contracted for this task.
Both characteristics (independence and professionalism) are
important, provided that the Feasibility Study should come out with
unbiased and viable solutions. The Terms of Reference based on
which the consultants will perform the required activities are a key
element. They should clearly indicate at least the following :
.
.
.
.
the intended target groups of the future project

the needs which led to the identification of the programme, and
which are to be addressed entirely or partially
the main hypotheses to be explored
the possible approaches considered by the national authorities and
the Commission
.
.
the objectives and outputs of the assignment

an indicative programme budget
37
----
...
Progtamming - Design &Preparatlons
--..
Identification, AnalY$sand Formulation

Format
Although a standard format doesn't exist, any Feasibility Study would
have, in generallines, the structure presented below :
1. Executive Summary
2. Approach of the Consultants
2.1. Context of the Feasibility Study
2.2. Main tasks undertaken
3. Sector Background
3.1. Environmentof the sector (economic, social, political)
3.2. Provisions of the Multi - Annuallndicative Programme for the
sector
3.3. Sector policy and strategies
3.4. Institutional assessment
4. Main Findings
5. Recommended Approach to the Programme
5.1. Key issues to be addressed ( assumptions, risks,
prerequisites)
5.2. Programme description and implementation arrangements
Annexes
Programme annexes
General annexes
Content
The sections mentioned in paragraph 3 are briefly explained below.
However, one should keep in mind that both the format and the
content of the Feasibility Study presented in this chapter are only
indicative.
38
Prqgramming-Q
Identification,Analy
&>Pr~t?!i'ratlqns
and Formulation
1. Executive Summary
As in any Executive Summary, the main elements of the document are
briefly described. It is recommendedto touch at least the following
items:
.
.
position of the future programme in MIP or C~P
.
.
.
main activities undertaken by the consultants
objectives of the FS
main findings
main conclusions and recommendations
The Executive Summary will not exceed 1-2 pages.
2.
Approach of the Consultants
2.1. Context of the Feasibility Study

Within this paragraph, the needs based on which the programme was
identified are stated (if possible with reference to MIP of COP), as well
as the main hypotheses and scope of the work.
2.2. Main tasks undertaken
The approach of the consultants to the Terms of Reference and the
main activities undertaken are described. Main findings of each activity
are briefly presented. The results of Phare programmes in the same
field in other countries, as well as similar programmes funded by other
donors may be mentioned.
3.
Sector Background
3.1. Environment of the sector (economic, social, political)

This is a brief description of the general environment in which the
programme will take piace. It approaches the major fields of the
transition/reform process, presenting the most important
achievements, delays or failures and the way they might influence the
programme.
---
--...-
Progl"amming-I)esign&'Preparatlons
Id~ntification, Analysisand
Formulation
3.2. Provisions of the Multi - Annuallndicative
sector
Programme
for the
The sector is positionedwithin the MIP. The links of the programme

with other programmes mentioned in the MIP and possible interactions
among these are outlined.
3.3. Sector policy and strategies

This paragraph describes the sector policies and strategies developed
in the past years, as well as the measures that are expected to be
undertaken in the coming period. Actions funded by the national
authorities are spelled out, and the complementarities between these
and the programme are brought into light.
3.4. Institutional assessment
A review of the national institutions operating in the sector is done, and
their capacity of implementing the national policy or their potential
support to the programme is assessed. If new institutions are required,
this is the place to mention them.
4. Main Findings
The findings of each activity carried out by the consultants are
extensively presented, in relation to the main hypotheses and possible
approaches stated in the Terms of Reference.
5.
Recommended
Approach to the Programme
5.1. Key issues to be addressed (assumptions, risks, prerequisites)
8ased on the previous paragraphs, the key hypotheses are checked

and assessed. An approach to the programme is proposed, and the
main assumptions and risks which might influence the programme are
stated. A special view ought to be given to long term sustainability of
the results of the programme.
40
,....-
Programming-Design &.Pieparations
.,
IdentificatioJ\, Al"Islyslsal"ldFormulation
5.2. Programme description and implementation arrangements

The objectives, proposed budget and final approach of the programme
is presented. The mechanisms and procedures are described. The
roles of the main actors are explained in detail. This paragraph is the
basis for the Financing Proposal.
Annexes
Programme annexes
Any further details concerning the programme, such as management
structure, justification for the division of budget, in depth explanation of
the implementation mechanisms may be presented in these annexes.
General annexes
The General Annexes are a detailed presentation of the work of the
consultants, containing items like:
Terms of Reference
Detailed conclusions of various activities carried out by the

consultants
.
.
Lists of persons and organisations which have been met
.
.
.
.
Legal framework
List of documents consulted
Details about related Phare programmes

Details of other donors related programmes
Details concerning the experience of other countries in the same
field
2.3.3
Risks Analysis
Even after aII this identification and analysis, there is a certain risk that
the project will not work: much of Phare work is new and innovative
and the reason for projects may well be related to pilot or experimental
activities. Nonetheless, the project manager is responsible for adapting
the project as it progresses. It is therefore important at the outset to
identify as much as possible what assumptions have been made and
41
~"
Progtamming D
Identification, Anal
n &,Prepar~tions
nd Formulation
what risks are there of project failure. It is always easier to deal with
problems which have been predicted.
Assumpt[ons and risks should relate to factors external to the project
and not include, for example,
government support (which should be clear as far as Phare is

concerned: in any case the project is officially proposed by the
government)
ability of the PMU to manage the project (this should be clear: if it is
not true, the project should not be proposed)
Typical risks for Phare projects relate to the support and reactions of
other institutions (stakeholders) to the project, feasibility of activities
happening in time (although the feasibility study should give the
answer to this), positive effects of promotion and awareness
campaigns on a populationwhere impact is difficult to assess.
-~.
- .
Progral'rJ01ing
Identification, Ana
2.3.4
& Pr~parations
and Formulation
Logical Framework Method
Introduction
It is clear now that a project is a very complex exercise, manipulating a
lot of Information and people. HOINto put aII these together in a
coherent and controllable way? One powerful method is the Logical
Framework Approach (LFA), compulsory in the Phare system. This
chapter will present the method and its application in elaborating and
implementing Phare programmes.
Description of the Logical Framework Method

The Logical Framework Method (Iogframe) is a management tool
which was originally developed in the early 70's for the USAID and
which consists of a set of interlinked concepts. The approach
facilitates the formulation of consistent and realistic programme /

project design
functions as a guide for the management of programme / project

implementation
lays the foundation for monitoring and evaluation of the

programme/project achievements
Its main element is the "Iogframe matrix" which summarises aII the
essential aspects of the programme / project design in a table with four
columns and four rows (4 x 4 matrix)
The four columns of the programme and project logframe matrices
specifies the major cause-effect relationships between objectives at

different levels (Narrative Summary)
elaborates precise operational definitions and targets for every

important objective (Indicators of Achievement)
provides data sources in order to measure the achievements of the

programme/project (Sources of Information)
includes a clear definition of the "boundaries" of the programme /

project relative to other significant factors (Assumptions and
Risks)
Programring
-Design &Preparatlons
Identificr Jon, Analysis and FOrrnulation
--- ---
----
Structure of a logframe matrix (at programme level)

Table: Structure of a logframe matrix (at programme level)
Narrative
Summary
Indicator of
Achievement
Source of
Information
Wider
Objective
Indicator of
Achievement
Source of
Information
Immediate
Obiective
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Results
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Source of
Information
Assumption
and Risks
Inputs
Assumption
and Risks
Within the Plan of Operations for Phare programmes a logframe matrix
is elaboratedfor the programmeas a whole1 whichis furtherspecified

and detailed for each project of this programme through a separate
project logframe matrix with a slightly different format.
I This logframe matrix for the programme is based on the M&E Matrix attached to the
Financing Proposal which is completed, further elaborated and/or adjusted if required.
44
Programming -iD8$ign.&P~eparatiOns
Identification. AnalYSs and ForrpulatiQn
Structure of a logframe matrix <Oltproject level)

Table: Structure of a logframe matrix (at project level)
Narrative
Summary
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Immediate
Objective
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Results of
Project
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Outputs of
Sub-Projects
Indicator of
Achievement
Source of
Information
Assumption
and Risks
Implementation Schedule of SubProjects
Budget of Sub-Project
When defining the logframe matrices for different projects within a

programme the content of the objective levels of "Immediate
Objective" and "Result" that is relevant for the respective project is
transferred to the project matrix an,dfurther broken down into
"Outputs" of sub-projects and a corresponding implementation
"Schedule" that specifies the phases of activities for each sub-project.
The following diagram shows this relationship between the different
logframe matrices.
45
Prog'ramming .'0.
Identification, Ana~y
- -.-
&"Preparations
nd Formulation
_ __IIM __
Relation between logframe Matrix at Programme and at Project

level
Chart: Relation between Logframe Matrix at Programme and at
. Project Level
Programme
Wider
Objective
Immediate
Objective
Results
Inputs
Programme
+
+
Immediate
Objective
Results
Outputs
Implementation of
Sub-Projects
(Activities)
The first column of each matrix describes the strategy of the

programme/project and its objectives Le. the hierarchy of inputs,
schedule of implementation (of activities), outputs, results, immediate
objectives and wider objective through a brief IINarrative Summary".
In this context every level or row has a precisely defined content which
guarantees a strict logical means-ends-relation and consistency within
the programme/project strategy without any logical"loops".
Programming-Oesign &.Pr~paratiomJ
Identification, AnalYSis and Formulation
----
- -- ---
Wider Objective
overall development orientation to which the programme should
contribute
Imme~iate Objectives
positive impact of the programme for the beneficiarieswithin a
particular sector and/or region
Results
direct benefits of the project in the form of a change in physical
parameters, potentials of institutions, behaviour of target
group(s), etc.
Outputs
tangible products and/or services provided by the project to the
direct target groups
Implementation Schedule
sequence of necessary activities for each sub-project in order to
produce the outputs
Inputs
means and resources (physical, financial and personal) which are
required in order to implementthe sub-projects as specified in the
implementation schedule of activities
--"" -
Programming Desigl) .&Preparatipns

Identificatibn,Analysis and Formulation
Hierarchy of programme I Project Strategy

Chart: Hierarchy of Programme / Project Strategy
Wider
Objective
Project 1
Project 2
1
Output
Sub-Project
Activities
Sub-Project
Activities
Sub-Project
Activities
Output
Sub-Project
Activities
No programme or project exists in isolation. External factors often

have a decisive influence on the implementation and the success of a
programme/project. Therefore the logframe approach specifies the
most important of these factors already in the planning stage and
includes them in the programme/project design. In the fourth column
those "Assumptions and Risks" are listed which are:
outside the strategy of the programme/project and beyond the
controlof the projectmanagement;
48
Programming-D8flign&.Ptep~tations
Identification, Analy$is and Formulation
crucial for the successful implementationand achievement of

positive impact;
and whose occurrence is likely, but can not be taken for certain.
Assumptions therefore indicate areas which require close attention

during the implementationand are often the underlying cause for the
need of corrective actions and/or re-planning2
The hierarchy of objectives (first column of the matrix) together with
assumptions form the "vertical logic" of the logframe as shown in the
following diagram.
Vertical Logic of Logical Framework Matrix (Project Level)
Chart: VerticalLogicof LogicalFrameworkMatrix(ProjectLevel)

Immediate
Objective
Results
]
Outputs of
Sub-Projects
achieve
---
wlth
togther
----.
contribute
---
together
With
Assumption
and Risks
I
produce
of
Sub-Projects I
Implementation
allow
together
with
Assumptions
and Risks
Assumptions
..::::
and Risks
I
Inputs
2 If during the planning p~ase it becomes obvious that a crucial assumption is unlikely to
develop as required this,will indicate the need for a change in the strategy (Le. the
parameters in first column of the logframe matrix) - not an easy excuse for a failure of
the project and programme which is already anticipated!
49
Programming Design &Pr~p.rations

Identification,AnalysisandFormulation
"" ---
In addition to the narrative summary in the tirst column the logframe

matrix includes in the second column a more precise description of
each objective. result and output.
These "Indicators of Achievement" specify each parameter3 in
terms of
Quantity
target value to be achieved at

a particular time
(= how much)
Quality
description of characteristics
(= how well)
Target Group
user of an,output or beneticiary

of an impact
(= for whom)
Location
area in which outputs/impacts

are achieved
(= where)
Time
date(s) at which outputs /

impacts are achieved
(= when)
and if applicable
Indicators thus set targets at the different levels of the

programme/project design and provide a basis and reference point for
monitoringandevaluationof achievements.4
3 An indicator is a description of an output or objective Le. it has to be specitied at the

same logicallevel as the corresponding parameter! Therefore, an indicator must
neither be
the prerequisite for achieving an objective (= that would mean the next lower level
in the hierarchy of objectives) nor
the consequence of achieving the objective (= that would mean the next higher
level in the hierarchy of objectives)
4
Note:
For monitoring purposes it is advisable to specify target values for different points in
time to allow periodic assessment of progress
If indicators are very complex and costly to verify or if changes will show only afier
a long time, proxy indicators' can be used to specify targets and for monitoring
purposes
Progr8mmi,.g
-Design &,Preparations
--
--.
Finally the third column of the logframe matrix lists those "Sources of
Information" where the data can be found in order to verify and
measure the development of the indicators. This can be internal
project documents, secondary sources (e.g. official statistics, etc.) or
special studies. 5
Indicator and source of information together with the corresponding
parameter (output, result or objective) are often called the "horizontal
logic" of the logframe.
A final note on identification of projects

Setting clear objectives and considering alternative ways of designing
the project is not an academic exercise: it is essential for project
success. Objectives are used not just in project selection and design,
but also in monitoring and evaluation. Moreover, careful consideration
of the objectives can lead to better design: projects which more clearly
meet the needs of the beneficiaries. If you are writing a Financing
Proposal but you have difficulty setting clear and measurable
objectives, stop and think again. If you cannot make things clear at this
stage, you will certainly have problems when it comes to
implementation.
If information is lacking to verify the value(s) of a particular indicator it might be

necessary to add new sub-projects and activities (e.g. base line studies)
Note: If no practicaland reliablesourceof informationcan be found for a particular
indicator, this indicator has to be changed. Otherwise the programme/project design

would include an objective which can not be monitored and verified!
51
--
Programming - Design &Prepartions

Documentation of Proposals
3.
Documentation of proposals
T-hlSchapter iiiciudes -
Overviewof the Decentralised Implementation

System
The key documents withinthe Phare system as
there are
Financing Proposal
Strategic Plan
Work Programme
Terms of Reference
52
- - -...
---Programming - Design & Preparations

DocumEmtation of Proposals
3.1
Overview of the Decentralised Implementation System (DIS)

Why DIS?
The purpose of the Decentralised Implementation System (DIS) is to
make the programme more efficient by allowing contracts for EC
Phare to be made in the beneficiary countries rather than through
Brussels. On one hand:
It is much more efficient administratively, particularly as regard to

the speed of contracting and payment for contractors
It gives the recipient country and its institutions experience in

managing such projects and contracts
There is greater input into projects from the side of the recipient
country and projects can be staged or divided more easily: this
creates more flexibility and a better concurrence of projects and
actual needs, as they develop
On the other hand, Phare still requires accountability for funds which
means that:
.
.
There is a rigid procedure which has to be followed

Any intermediary organisations (where PMUs are) do not share the
benefits of fast payment etc. expected by the people they contract

with.
Documentation
Phare requires considerable documentation to operate the DIS

system, mostly in a very strict format. This is laid out in detail in the
DIS manual. There are in general two purposes to these documents:
one is that Phare requires documentation of how money has been
spent and allocated in order to maintain accountability and audit trails,
and the other is that the documentation is required for planning and
forecasting use of resources 50 that funds can be provided when they
are required. In addition, the documents are used for monitoring,
evaluation and impact assessment.
Although the degree of form-filling may seem onerous, it can also help
the intermediary responsible for operating the DIS, particularly in the
planning process and in monitoring projects as they progress.
53
Programming Design & Preparations

Documentationof Proposals
Overviewof Documents
A complete breakdown of documents is presented in the DIS manual
including their required contents. This overview merely presents their
general functions and characteristics.
Multi-Annuallndicative Programme (MIP)

This document, which is updated yearly, gives on overview of how the
EU and the Romanian government have agreed to divide the budget
for Phare over the next years into programme areas, and describes in
general terms the objectives and types of projects which will be carried
out.
Financing Proposal (FP)
The Financing Proposal is a document for a particular programme or
sector which seeks to justify the budgetary allocation and the priorities
associated with the budget of a particular year. The Financing
Proposal is backed up by documentation on the progress of existing
programmes, the strategy for the sector, and general analysis of the
environment.
Country Operational programme (COP)
This document shows for each year when it is produced how that
year's PHARE budget will be divided between programme areas, with
what objectives and how different programme areas will be managed
(either by PMUs or from Brussels directly). The C~P consists of a
number of Financing Memoranda which are the specifications for
different areas of what has been agreed. The Financing Memoranda
are the result of Financing Proposals for each sector which include
more data and greater amount of justification for the priorities and
amounts of funding.
Strategic Plan (SP)
The Strategic Plan shows the expected way that a budget for a
programme area specified in the C~P will be broken down into
projects and disbursed over the length of time the budget is to be used
(typically 2-3 years). The Strategic Plan is updated at least once a
year.
54
Programming Design &Preparations

Work programme
(WP)
The Work programme is used to justify advances of funds from

Brussels to the PMU and is produced every six months. It is therefore
primarily to display progress in different projects and expected
requirements for commitments and disbursements for different project
in the next period. It is primarily a financial and reporting instrument.
Invitation to Tender (ITT)
This is the documentation which is sent to every tenderer who is

invited to bid for a restricted tender for a project in the Work
Programme.
Terms of Reference (TOR)
The TOR is the key part of the invitation to tender, specifying the work
to be done, the objectives to be fulfilled, and the way in which the
tenderer should approach the project.
The documentation used by Phare is not just useful for people in
Brussels. The documents the PMU produces should be useful for the
PMU itself in project management. Below we consider why the
different documents can be useful in project management as well as
summarising their use by Phare.
55
----Programming - Design & Preparations

Name
Use by Phare
Multi-Annual
Indicative
programme
(MIP)
Indicative budgeting
over a five year period
Agreement on general
direction, interaction
between programmes in
different sectors
Financing
Memorandum (FM)
A financial protocol
between the EC and
the recipient state
Basis for the strategic

planning
Financing
Proposal
(FP)
Justification for
allocation of the Phare
budget to a specific
programme, for
approval by the Phare
Management
Committee
Clear statement of overaII objectives, first level

division of budget between different components, assessment of
current situation, expected result, and
assumptions and risks;
specification of which
organisations will implement the programme and
how
Country
Operational
Programme
(COP)
Agreement between
the EU and the
recipient country on
use of the budget
as FP, but additionally

allows interaction
between different sectors
and programmes
Strategic
Plan (SP)
Plan for the whole

programme,
monitoring progress,
scheduling expected
commitments and
outputs
Plan for the whole

programme, monitoring
tool, evaluation of results
and of progress
Work
Programme
(WP)
Justification for
advance of funds to
the PMU; progress
report
Short term planning and

budgeting
Terms of
Reference
(TOR)
Clear basis of a
contract with a
contractor; transparent selection of a
contractor
Control over what a

contractor does and
should achieve, selection
of the best contractor
56
Use for Project

Management

Documentation
of Proposals
3.2
Financing Proposal
3.2.1.
Purpose
The Financing Proposal is t~e justification for Phare to allocate a

budget from a particular year's overall budget to a particular
programme in a particular sector. It forms the basis of the Financing
Memorandum6 (see below) which is the contract between the
European Commission and the Government of Romania for a
particular programme in a particular sector.
The Financing Proposal consists of two parts:
a. A short part (maximum twelve pages) which details the programme

and forms the basis of the Financing Memorandum in the future.
This part needs to be clear and concise and should be written very
carefully since it forms the basis of a contract;
b. A series of annexes which form the background to the proposal and
explain in detail why it is necessary for the sector and how it fits
into the Government's pre-accession strategy. This part should
include the LogFrame for the programme, but otherwise its format
varies widely between different programmes. If they exist, the
sector strategy and Sector Operational programme7should also be
included.
It forms the basis for the contract between the European Commission and the
.
Government (of Romania) regarding a specific programme in a particular sector. In the
early stages of Phare, this contract was concluded in the form of a Financing
Memorandum, which was referring to only one programme. Since 1996, the contract
takes the form of Country Operational programme (COP) and covers aII Phare
programmes for one year within a particular country, including the corresponding
overall Phare budget.
The SectorOperationalProgramme(SOP)is a relativelynewtermin Pharelanguage.

It is not used yet by everybody with the same meaning and, therefore, it often causes
confusion. In order to bring some more light on it, some possible approaches are
presented below. However, the list is not an exhaustive one.
In a wider sense, the SOP is a strategic document of a particular sector and should
touch at least the following aspects:
. the sector current status and expected evolution
. the Government sector policy and sector strategies
57
--
---
--
--

Below we consider the first part in detail since it has a common

structure and is the most important. However, you should consider that
the Financing Proposal is a document in whi'chyou "sell" your
programme, and therefore the more justification and background you
can provide, the better.
3.2.2.
Format
General
The Financing Proposal consists of the following sections:
.
.
.
.
.
1.
Identification- a standard front sheet
2.
Summary - a summary of the key points
3.
Background - the history of the sector and the origin of the

programme
4.
Policy and institutional assessment - the context in which the

programme will operate
5.
Objectives
6.
Programme description - divided into the most important projects
the sector priorities and related actions to be undertaken

the resources needed to implement the above strategies and actions
the resources available within the country
what resources are needed from the international donors and to which activities are
they going to be allocated
the reasons why the activities (programmes) mentioned above cannot be financed
by the Government
According to this approach, the S~P is a medium/long term strategy of the sector,
indicating both the actions to be implemented by the national authorities alone, and the
steps for which international assistance is required. In this respect, the S~P is a
document which lays the basis for one of several Financing Proposals, over a
multiannual period.
The S~P should be prepared by the national authorities, but nonetheless, foreign
technical assistance might be of help.
In a narrower sense, the S~P is considered to be the Financing Proposal, and most of
the people tend to use it with this meaning.
58
--
Programming Design & Preparatlons

7.
Cost and Financing plan - again dividingthe budget between the

most important projects
8.
Implementationarrangements - how the programme willbe

implemented
9.
Risk - any importantassumption and risk
10. Special Conditions including preconditionswhere appropriate

11. Audit,Monitoringand Evaluation - standard clauses required by
the Commission
As already stated, more informationshould be presented in the annex
includingthe LogFrame at programme level (and at project level as
well, if appropriate).
Apart from section 1, which is trivial, these sections are explored in
further detail below.
Summary
It is important to write the summary clearly and concisely, since the
Financing Proposal is essentially a document where you sell your idea.
The summary should include at least the following items:
objectives
outputs
activities
.
.
implementationarrangements
Background
This section provides the background to the programme, explaining
how it fits into the wider context of pre-accession and government
activities. It should include:
the socio-economic context

the place of the sector in the reform programme
--
- --
----

the Government priorities

the sector's importance in the economy
specific aspects of the sector in the context of pre-accession,

perhaps including references to Agenda 2000 and the preaccession strategy
sector's relationship with previous Phare programmes - if there

were previous programmes, results, assessment reports and
disbursement performance should be included in the annex
description of related activities financed by the Government and

other donors and co-ordination among them
Policy and institutional assessment

This section explains the political and policy context of the programme,
includ ing policies which are likely to change, as well as an assessment
of the existing institutions, including their capability to manage or
implement the programme. It should include:
analysis of the Government objectives, policies and strategies for

the sector, including reforms implemented
.
.
identification of major issues and constraints in the pre-accession

policy measures agreed with the Government as conditions in the
pre-accession
policy measures agreed with the Government as conditions for

Phare support
assessment of the existing institutional capacity to:

deliver the Government policy
implement the programme
necessary changes in the institutional framework
Objectives
This section should explain both wider and immediate objectives, with
an explicit description of the link betweenthem. As with the LogFrame,
objectives should be quantifiable and there should be some indication
of how success will be measured. Normally there should be only one
60

wider objective, although there may be more than one immediate

objective.
This section should, of course, correspond with the LogFrame
attached in the annex.
Programme description
This section should outline the outputs of each component of the
programme and the activities to produce the outputs. It stiould show
that the activities are part of a coherent strategy which meets the
objectives in section 5. Normally the components should correspond to
the immediate objectives.
Long term sustainability of the activities and follow-up should be
addressed, particularly for programmes which create new institutions.
Standard Environment and SME references should be included where
appropriate - see the DIS manual for further details.
Cost and financing plan
This should include a budget for each component and estimated
contracting and disbursement schedule on a quarterly basis. In
addition, there should be a distinction between running costs,
programme management costs and the actual programme costs (for
the basis of this, see the DIS manual).
You should bear in mind that these figures will form part of the
Financing Memorandum and will therefore be difficult to change in the
future. As a result, the breakdown should only be at the level of
projects and you should try to avoid too many projects or ones with
very small budgets.
If the budget requires further justification or description of subcomponents, this should be put in an annex.
Implementation arrangements
This is a description of the responsibilities of the parties involved and
the implementation arrangements, including a description of the tender
61
__
_ IRIIRI_
Programming-Design "Preparations
Docum~ntation of Proposals
and contracting procedures (DIS or non-standard) and the role of the
implementation units. There should be some demonstration of how
running costs will be phased out over the lifetime of the project.
For most cases, there are a number of standard clauses which can be
seen in the DIS manual.
Risk and Special Conditions

These sections identify the assumptions and risks on the same basis
as the LogFrame, but should also include indications of how actions of
the Government or recipient institution can minimise them.
Special conditions by their nature vary between programmes, but

should specifically include any preconditions which the government or
recipient institutions should meet before the programme commences.
Audit, Monitoring and Evaluation

This should also include special provisions for monitoring and
evaluation as well as standard sentences which relate to the
Commission (see DIS manual). In most cases the standard sentences
are sufficient.
3.2.3
Approach
The Financing Proposal is a serious document and needs to show that

it has been well thought-out and developed from real analysis. In order
to write the document, it would be best to identify the objectives and
from this the actual projects and components, proceeding by the
method indicated in Section 111.2
regarding.identification of projects.
Often the best objectives can be identified by fiIIing in the sections on
background and policy analysis, which provide the context for the new
programme. Filling in the Log Frame is a useful way of ensuring
consistency and that aII the questions have been answered.
Practically speaking of course, frequently the projects have already
been identified. In this case, after setting the overall objectives it is
important to review whether the projects still make sense and whether
they really are the best way of achieving the stated objective.
62
--
-...

3.3
A Financing Memorandum is a financial protocol between the two main
actors of the Phare programme, the European Commission and the
recipient state. It is based upon the Framework Agreement (signed
once per country by the Commission and the government of the
recipient state), which sets out the broad lines of the technical, legal
and administrative framework of the co-operation between the two
parties with a view to supporting the process of economic and social
reform in the recipient state. The Financing Memorandum is therefore
the document specifying the detalls of the implementationof each
programme as agreed by the two parties.
The Financing Memorandum contains:
a copy of the Framework Agreement signed once with each of the

recipient states
.
.
.
.
special provisions:
.
.
objective of the programme

programme description
cost estimates
implementationarrangements
audit, monitoring and evaluation
The expiry date of a Financing Memorandum may be extended by the

Commission, upon request and proper justification by the recipient.
Normally the period of extension granted will not exceed one year.
Changes in conditions within the recipient state during the
implementation period may.lead to modifications in the project
priorities as originally agreed upon at the moment of signature of the
Financing Memorandum for a given programme. This revision may in
its turn have to be translated through the reallocation of funds between
the different projects listed in the Financing Memorandum.
63
--- -Programming-Design &Preparations

DocumentatohofProposals
- --
3.4
StrategicPlan
3.4.1.
Purpose
The Strategic Plan (SP) is the basic document for planning the
different projects of the programrhe and their sub-projects. It is based
on the content of the Financing Memorandum and translates it into
more detailed terms. The SP serves as a reference for aII subsequent
planning, monitoring and evaluation documents. It covers the entire
duration of the programme but it is revised on a yearly basis.
3.4.2.
Format
The Strategic Plan has a standard content, as follows:
. executive summary
.
.
plan of operations
planningof programme implementation
1. logicalframeworkmatrixforthe programme
2. logicalframework matrix for each project
3. implementationschedule for the programme
4. commitment(contract) schedule
5. disbursement (payment) schedule
description of programme environment

description of sub-projects
The first Strategic Plan should be submitted by the PMU at least three
months before the start of the period planned together with the first
Work programme (WP).
3.4.3
Approach
The preparation of the first SP should rely normally on the information

provided by the Financial Proposal. A problem might arise if a major
change occured meanwhile in the specific sector. In this case the SP
should normallyconsider this change by:
. providing the relevant information on the specific change
- -64"

.
.
analysing the consequences in relation to the programme

adapting the approach to the new situation.
It is always better to take into consideration the reality than to ignore it

for the sake of previously elaborated plans (see the case at page XX).
3.5
Work Programme
3.5.1
Purpose
The Work Programme is a reporting and planning document, mainly of

a financial character, which translates the activities of the Strategic
Plan into more precise terms. It is prepared under the authority of the
PAO, with the support of the Technical Assistance to the programme.
The planning function of a WP normally covers a period of 6 months.
A Work Programme describes aII the activities carried out since the
beginning of the programme,taking into account the timing necessary
for contracting and paying, and specifying their financial translation
through commitment and disbursement. It also reviews activities
already planned and deals with the activities foreseen for the
forthcoming period. The presentation of the WP is the prerequisite for
the approval of the budget allocation and the transfer of an Advance
Payment by the Commission to the relevant PMU. The approval of the
WP constitutes also an authorisation for contracting the activities listed
in it.
3.5.2.
Format
A Work programme includes:
basic data concern ing the programme
a progress report on period n-1 (from the beginning of the

programme till the last ended-WP period)
a confirmation or revision of period n (the last approved WP)
a desc~iptionof activities foreseen in period n+1 (WP yet to be

approved)
a commitment situation
a disbursement situation
65
Programming Design &Preparations

3.5.3
Approach
The preparation of the Work Programme should rely normally on the

information provided by the current Strategic Plan. However, during
the course of the programme, some changes in the sector, or some
unexpected impacts might occur.
In this case the WP should normally consider this change by:
providing the relevant information on the specific change
.
.
analysing the consequences in relation to the programme

adapting the approach to the new situation.
Again, it is always better to take into consideration the reality than to

ignore it for the sake of previously elaborated plans.
3.6
Terms of Reference
3.6.1
Purpose
There are two purposes of TOR:

a) To ensure that the consultant is clear what he is doing and how
success will be measured, to be used as part of a contract;
b) To provoke a response from consultants to an invitation to tender
which allows comparison between different bids.
These two purposes are different and should not be confused. In some
ways they appear to produce a contradiction: the first purpose would
suggest a need for great detail in the Terms of Reference so that
everything is clear, whilst the second would suggest as little detail as
possible so that the different bids really are different. Phare gets round
this contradiction by making the Consultant's response to the Terms of
Reference also part of the contract. In a Phare contract (see below),
Annex A contains the terms of reference, whilst Annexes S, C, and D
(methodology, CVs, and financial proposal) are filled in by the
contractor. As a result it is important in the Terms of Reference to
concentrate on the objectives and constraints on the work and not the
detail of how it is going to be done: the contractor will propose this and
it will form part of the contract.
66
- -...--Programming -Design &Preparations

Documentation
of Proposals
3.6.2
Contents
TOR should be output-orientated.This helps measure success, but in

any case it is often not easy to be prescriptive about inputs. If inputs
are limited (e.g. amounts of money, maximum budget for equipment),
this sliould be included in the TOR.
The actual format of TOR need not be standardised (although Phare
includes certain requirements). Particular cases will require different
emphases and may require further information.
Below are listed typical sections and their contents.
Introduction
It helps the reader if you have a section which introduces the TOR,
explains the general idea, introduces other sections, and indicates
what is expected from the consultant in response to the TOR.
Background Information
This should be as clear as possible. Any major background
documents should be put in an annex for clarity. Background should
include details of:
.
.
.
any general information on the sector

background to the beneficiary institutions
current government policy
any relevant previous or parallel projects
identification of any key problems which the project is aiming to
solve
Objectives
A clear statement of what the project, is trying to achieve, if possible
broken down into concrete objectives which can be used to monitor
sub-projects. The clearer this is, the easier it is to measure progress.
67
- -----Programming - Design & Preparations

Dbcumentationof Proposals
Scope of Work
Statement of what general services are to be provided and details of
any specific tasks to be accomplished.
Inputs, Duration, Location
This should specify:
a. any constraints on the type of inputs to be presented by the

consultant:
if there are advisors specified (particularly long term ones), what

qualifications, experience, language capabilities and personal
characteristics they should have
any constraints on the way the project should be operated (e.g.

that there should be a project manager, that there should be
someone in the country at aIItimes, the short term experts
should be available at one month's notice)
maximum or specified budgets for certain requirements (e.g.

equipment, study.tours)
b. any inputs which will be provided by the beneficiary and specifically

which ones will not be:
oftice accommodation, telephone, fax, administrative support,

translation and interpretation
c. duration and time schedule
specify the maximum duration in the first instance, if possible

any milestones or critical dates should also be mentioned (e.g.
preparation of documents for submission to other authorities)
d. location
in as much as it is possible, the location where the services will

be delivered
e. budgeting
any indications of budgeting which are helpful e.g. relative

emphasis on different project components
68
Programmil'lg- Design & Prepa,rations

of Proposals
- ---Documentation
--I!IIIIII
Outputs
Required outputs from the project. Outputs should, if possible be
measurable. Many tenders issued by Phare are not clear enough
regarding the outputs, which makes measurement of project progress
very difficult.
Reporting
Reports which are required for reasons of the ultimate contractor, and
for project monitoring and management.Any long term project should
report in detail on what has been achieved and what is planned every
quarter.
69
Impi6mentation - Management & Techniques
--
IV.
Implementation
- Management
&Techniques
Introduction
to the Project
Management
Manual
Introduction
to Project
Management
Programming
Design &
Preparations
~ I
Implementation
Management &
Techniques
Project
Management
Skills
70
Implementation -iMana9emenb&~iI'"bnk4ues
Introdl:JCoon
1.
Introduction
This section contains information on the actual implementation of the

programme and the issues involved in this, not just the documents.
We start with some comments on the second stage of the project lifecycle and indications of how ta plan the project effeGtively.For Phare, this
planning corresponds to the work surrounding the writing of the first
Strategic Plan.
We then continue with issues in the third stage of the project life-cycle
and the issues of monitoring and evaluation. We conclude with some
comments on the use of consultants in general, and on consultation with
stakeholders - which has to happen throughout the project.
71

2.
This section includes background information on the second phase of

the project life cycle.
To reiterate, this phase consists of:

!
.
.
identifying resources available for the project
design of the project
packaging and planning of the project
identifying resources needed for the project
In this chapter we examine first of aII identification of resources

needed and available, general techniques of planning, including
subdivision of the programme into projects and sub-projects and how
these should be packaged, and planning as related to resources and
assigning responsibilities for actions.
72
Implementation-Management &Techniques
Preparation,AppraisalandCommitment
2.1
Identifying Resources needed and available

Consideration of what resources are required can be divided into the
thre~ categories used to look at project management (time, people,
other resources). In each of these categories, it is important'to
consider:
What sources are there outside Phare? For example, can the
project beneficiary put in its own money or people? Can funds be
generated as the project commences (for example an advice
centre can charge for its services)?
What items are critical and which ones are merely helpful? Budgets
for equipment should be on the basis of a justified need and not on
the basis of wishes (for example computers should normally be
specified on the basis of the capability required not the number of
machines and exact software, even though this is difficult to fit into
Phare's supply tender regulations).
What deadline is crltical? The speed of a project may aftect its cost:
for example slower implementationcan make use of foreign
expertise in training Romanian staft for later stages of the project.
How is it possible to vary the budget and what eftect does this have
on objectives? For example if the project is to set up a regional
network, what is the cost per regional centre? How does this aftect
the manpower requirements?
What requirements will Phare insist upon (for example in tendering

for resources and in overall constraints)?
As a result of this consideration it should be possible to work out in

general terms what can be achieved within the budget available, a
rough breakdown of the programme into projects and some indication
of the flexibility of the budget for individual items. This budget will have
to be refined from the "bottom up" when the programme/project has
been divided into sub-projects and activities and estimated resource
allocations have been made for each individual sub-project or activity.
73
Implementation Management & Techniques

Preparation. Appraisaland Commitment
2.2
Planning
Planning of projects is a large subject and one which we cannot treat
in detail here. For PMUs. detailed planning is often not necessary, but
it is nonetheless useful to have some understanding of the general
principles and techniques.
In practice, planning consists of the following stages:
.
.
breaking the project down into tasks

deciding how long each task will take and what resources it will
require
deciding on the interdependency of tasks and a consequent logical

order
producing a Plan 50 that it is possible to see how well the project is

progressing generally this means that there are milestones during
the project where it can be seen whether the project is on target or
not.
2.2.1
Packaging of Projects
Division of a programme into projects and projects into sub-projects

and activities is often not an easy task. It is difficult to give exact
guidelines, but below we present some issues which are important
when trying to package projects and which you should consider in this
phase.
Administrative Efficiency is not the same as Technical Excellence!
Phare puts agreat pressure on PMUs to be administratively efficient

and this means, for example. trying to limit the number of contracts in
order to make them more manageable at an administrative level. You
should not forget that you have other objectives which may be
mitigated by administrative considerations. We suggest you consider
the following:
Don't put unre/ated projects together

This will merely make it more difficult ta tind a single tenderer and
difficult to deal with the contractor when one part performs well and
the other does not. Such projects are typically performed by a
consortia of otherwise unrelated companies which is not a recipe
74
Implementation Management &Techniques

for good project management. Time spent designing separate
projects separately may well be repaid later ono
Don't be afraid to break the project
into stages
If you're not sure of what the whole project willlook like, break it
into a first stage and then give the second stage to the same
contractor, making sure that new objectives are clarified in the
meantime and that the contractor is appropriate. Note that Phare
tender procedures do not encourage this approach, so some
thought may be needed.
Make
sure re/ated projects interact
If there are other projects you are contracting, or other projects

being performed by other bodies, which affect how well this project
will proceed, consider how they should interact with your project.
Place the creation of a steering committee in the TOR, for example.
It is surprising how often contractors only discover each other's
existence in the PMU oftice or by accident. It is to your advantage
that they exploit any synergy in their activity.
Ensure
that resource allocation is appropriate
Consultants will tender for almost anything. However, underresourced projects will perform less well than over-resourced ones.
Be clear how you can reallocate resources as the project
progresses. You should make an estimate of the resources
required for each sub-project and make sure this is reasonable
before tendering. There is a tendency to allocate budgets on the.
basis of what is available from the Financing Memorandum, even if
this no Ionger makes sense. You should consider that it may be
possible to make the budget more appropriate by reducing the
scope of activities. For example, it may not be so efticient to train
less people, but it probably costs less.
Be aware of Contracting Requirements
Phare currently decrees that projects'under 300,000 ECU go to the
framework contracts. This may leave less control over the choice of
contractor. Conversely, making projects big to avoid this limit may
not be very helpful (see above).
75
Implementation Management&Techniques
Use Short Term TA

Make sure you are clear what the objectives of the project are.
Time,spent in design of projects and clarifying the exact outputs
required will be repaid when the project is implemented. Do not be
afraid to delay the start just because you don't know enough
details. Use short term consultancy to clarify your thinking. There
are options such as the framework contracts for this purpose.
2.2.2
Activity and Resource Planning
Once a programme/project has been divided into sub-projects and

activities it is necessary to plan the time and resources to be allocated
to each one. An estimate needs to be produced for each sub-project or
activity, and this estimate should be done in detail. If there is to be
tender it is possible to estimate the number of man days and fees and
therefore an overall budget. For specific activities there may be
experience already (for example, your PMU may have already
performed such a task or there may be another PMU with similar
experience. Do not be afraid to ask). If the sum of the funds allocated
to sub-projects exceeds that allocated to the overall project, there
needs to be some iteration, either by reducing the budgets (preferably
by reducing the scope of activities) or by finding funds from elsewhere
(for example the beneficiaries are required to find funds themselves: is
this reasonable?).
Resources, do not just apply to funds, however, but also human
resources and time. There needs to be an estimate of the amount of
time the PMU will need to spend in design and monitoring of the subproject and the overall duration of the project. It should be emphasised
that at this stage these are purely estimates and to be used for
planning.
When there is an estimate for each sub-project for resources required
and duration, the next stage is to schedule the activities. The most
usual way of doing this is to produce a Gantt chart and it is a normal
requirement of the Strategic Plan (see below). There are many
different variations of such a chart, but the basic scheme is as below:
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Implementation Mam~gement & Techniques

Chart : Gantt Chart
Gantt Chart
Activity
Duration
Lengthof bar is
----------- ----Ustof aii
----------------dffir---....
-----------------------------dayslweeks
- Project- u - u
Activities
-----------
/-
. +- _ _ Milestone
-----------------------------------------------------------
uuu-/
-Rroj9Ct- - - u_
start date
---------------------
Calendar Bar
-----
------------------------------
-----
-----------------------------Project
----- - -end t9 - - --------------+
The bars give a graphical representation of the time it takes for each
activity and consequently it is possible for any given date ta work out
whether the overall project is stil! an target (by seeing whether the
required activities have indeed been completed) and what level of
activities are being performed at present (how many IIbars"are
current) and consequently what resources are required.
It is important ta make the Gantt chart meaningful and useful. This
means in particular:
Bars should not go aII the way from project start date ta project end
date (otherwise it is impossible ta tell whether the project is an
target until you reach the very end)
There should be IImilestones"at appropriate places. Milestones
represent events and outputs which should happen at a definite
time (for example the production of a report, the opening of a
centre, the completion of a road, the passing of a law). They
represent points where the results of the project can be assessed
(Le. the output is measurable in some way) and also present a way
of discovering whether the project is an time.
When the activity plan has been produced, it is important ta translate
this into a resource plan, showing for each period what resources are
required. Phare demands a resource plan in the format of six monthly
77
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--
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periods for funding purposes, but you should also produce a resource
plan internally to show the workload on the PMU and plan how
responsibilities for different sub-projects will be given to different PMU
members.
2.2.3
A final word about Planning
Reality is never very much like the original plan, and it is the plan
which has to be altered, not reality. Often there are very long delays in
project implementationwhich are not under the control of the PMU
(approval of documents by Brussels, for example). It is therefore
important to plan at a level which you can easily adapt and which
makes sense to you. There is a temptation, particularly with
sophisticated software packages, to plan down to the day, but this is
an illusion for most Phare projects, where planning on a monthly basis
would generally be adequate.
In addition, for projects with many inter-related sub-projects there are
techniques for putting them in order and identifying the most important
to keep the project on track time-wise (this is called Critical Path
Analysis). These techniques are not treated in detail here, although
they feature very strongly in project management literature, owing to
the fact that most Phare programmes consist of relatively few subprojects, the inter-relationship between projects is often not very
strong, and in general Phare is more constrained by the budget than
by time. If you have a project which does have time objectives and
many interconnected sub-components, you should investigate other
ways of planning as well.
78

2.3.4 Case study:

The Financing Memorandum for the programme for SME and
Regional Development in Romania 1994 was signed on 19th
Oct0ber 1995. A PMU was set up in February 1996 in a nongovernmental organisation, with"a view to administrate the second
component ("Information, Training and Advisory Activities") and the
third component ("Local Development Initiatives Fund") of the
Programme, under the name of FIDEL. Cristian, the Head of the
PMU, together with Ralf, the foreign Senior Adviser, started then to
prepare the first SP and WP for FIDEL, and they encountered the
first problem!
Normally, the SP should be elaborated based on the information
contained in the Financing Memorandum, and, according to the
FM, the funds under FIDEL should have been orientated mainly
towards strengthening and extending the existing SME/Local
Development Centres, and assisting the creation of new such
centres.
At the same time, recent information showed that:
. there were about 80 SMELDCs in Romania to date, and in only
2-3 counties such centres were missing
. a survey run by a foreign consultant on behalf of Phare
demonstrated that the major problems of the existing centres
were related to:
poor quality of the services otfered by SMELDCs to their
clients
poor relationship with the local commu"nity(most of the centres
were almost unknown in their area)
. experience of another Phare Programme for Active Employment
Measures demonstrated that people and organisations at the
locallevel were mainly interested in investment type of projects
than in setting up such new centres.
What to do? To design the programme as it was recommended by
the FM, or to try to modify the approach according to their findings?
79
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Implementation
-Case study fcontinuation):

Cristian and Ralf analysed both possibilities and their consequences:
What would happen if they decided to design the programme
according to the provision of the FM? .
first scenario: the SP and WP would be approved very
quickly by the Commission, but problems might arise later
due to the fact that the programme wouldn't meet
stakeholders' expectations. Finally, they might not succeed
to commit aII the funds (6 MECU) because'of the lack of
interest from the local bodies
positive consequences: to get aIIthe approvals in time (at
least in the beginning)
negative consequences: lack of impact at locallevel and
overall dissatisfaction of the local communities
What would happen if they decided to modify the approach
according to their findings?

second scenario: the SP and WP would be approved very
late, after several rounds of discussions with the donor's
representatives. Finally, they might not succeed to commit aII
the funds because of the lack of time (the deadline for
commitment was 31 December 1997)
positive consequences: important impact at the locallevel,
and ultimate satisfaction of the local communities (at least of
those who got access to funds)
negative consequence: delay in getting the SP approved
major risk: important delay in getting the fund allocation
criteria and procedures approved.
What happened actually? Cristian and Ralf chose the second
solution. Instead of orientating the funds under FIDEL mainly towards
strengthening and extending the existing SMELDCs and assisting the
creation of new such centres, they designed a mechanism able to
adapt to a wider range of local economic initiatives and at the same
time offering incentives to the SMELDCs to became more aware of
the needs ofthe local community. The mechanism would consist in a
series of calls for project proposals addressed to the local
representative bodies. In order to elaborate and implement these
projects, these bodies would look for the necessary expertise and
consultancy. Since these services were normally provided by the
SMELDCs, this would strengthen the ca-operation from the local
bOdiesand the SMELDCs.
80
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Implementation ~anagement &Techniques

Having in mindthe majornSK,tney decidedto concentra1esome k~

issues able to assure the quick response from the local communities:1
. intensive project marketing
I
- discussions withthe donor's representatives
- qualitypromotionalmaterials
- effectiveawareness raising activities
effective training provided to the local actors
flexiblefund allocationprocedure. able to adapt.to the various

local needs
At the same time they decided to elaborate a powerfullnstrument to

measure the performance of the programme: a data base able to
record aIIinformationabout various activitiesof the programme and
to provide useful statistics.
Consequently, the programme developed as follows (duration
between subIT!ittingdocuments and getting them approved should
be considered):
the first SP and WP submltted to the EC
May 1996
July November
1996
several rounds of discussion withthe donor's

representative
September 1996
partial approval of the flrst SP and WP by

the EC (4 months from the submission)
December 1996
fund allocationcriteriaand procedures

approved by FIDELSteering Committee
September
December 1996
preparation of the awareness campaign and

trainingcourses
December 1996
the FIDELdata base became operational
December
final approval of the first SP and WP by

the EC (8 months after the submission)
second WP submitted to the EC
1997
January 1997
January 1997
fund allocation criterla and procedures

submitted to the EC
January - April
intensive awareness raising campaign (44

informationseminars in aIIcounties for about
1997
2,000 people)
81
Implementation- Management &Techniques

February October intensive training activities (36 courses for

1~97
about 500 people)
June 1997
approval of the second WP by the EC (5
months after the submission)
June 1997
approval of the fund allocation criteria and
procedures by the EC (5 nionths after the

submission)
June 1997
second SP and third WP submitted to the

EC
August 1997
first appraisal session for project proposals

(102 proposals registrated and 24 selected,
1.35 MECU committed); the Appraisal
Committee issued recommendations for
improvements of proposals; a letter
summarising the main problems related to the
submitted proposals was distributed in the
regions
September 1997
additional information seminars in the less

developed areas
October 1997
second appraisal session for project

proposals (138 proposals registrated and 25
selected, 2.15 MECU committed); the
Appraisal Committee issued again
recommendations for improvements of
proposals; another letter summarising the
main problems related to the submitted
proposals was distributed in the regions
October 1997
the Government of Romania decided to realloeate 1.5 MECU from FIDEL to the
reconstruction of the areas suffering from
flood
October 1997
second SP and thlrd WP approved by the

EC (4 months after the submission)
November
1997
November 1997
fourth WP submitted
to the EC
less than 1 MECU remained for the third

appraisal session for project proposals; more
than 100 proposals are stiUexpected
82
Implementation - Management & Technlques

November
December 1997
intensive networking activities (7 workshops
for about100people) .
October December 1997
contracting activities
January December 1998
monitoring'and evaluation activities
83
Implementation -Management&Techniques
3.
...-
This section includes background information on the third phase in the

project life cycle.
To reiterate, this phase consist of:
mobilisation of resources for each task and objective
project marketing
ongoing monitoring and reporting arrangements
identitying problems
addressing failures
modification of the planned results and project objectives

as appropriate
84
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---
3.1
Preparation for a Project -what do we need?
When a project starts there are a number of things which need to be

done:
Planning
AIIplanning documentation should be in place. This applies particularly
for Phare where the documentation and administration is very well
defined, but for any project and with whatever techmques for planning,
it is important that a "project file" is established from the very start.
Confirmation of Assumptions
Often there is a long time between the initial idea of a project (and
consultations with the stakeholders) and its actuallaunching date. In
this time, the environment can have changed considerably, and it is
important to know:
.
.
Are the needs stiUas they were defined in the proposal?

Are the resources to be put in by other parties still available?
Has any part of the project already been performed (or started) by
other actors? Foreign donors often act in competition with each
other and it is possible that the beneficiary has put in project
proposals to more than one.
Project Launch
The launching of a project is an opportunity to create interest and
publicity not only for the project itself, but also for the programme of
which it is a part. It is worth considering whether there are any initial
meetings etc. which could be publicised or at which, for example,
government figures could be persuaded to attend.
Mobi/isation of Resources (assembling the Tender Dossier)

When a project is launched, the various resources allocated to it need
to be mobilised. In the case of Phare, this means in many cases
issuing tenders and choosing providers of resources (services or
equipmentfor example) by means of competition and a highly
structured procedure.
85

Management,Manitaringand Reparting
Same basic infarmatian abaut haw to assemble a Tender Dossier and
how to prepare its main elements (to Tenders and TOR), are
presented below.
3.2
The tendering process
The tendering process includes the following activities:
.
.
.
.
.
.
.
.
.
.
assembling the tender dossier
.
.
.
negotiation on price
dispatch of tender dossier to the short listed firms

receipt of tenders
establishing the evaluation committee
tender opening session
preliminary examination of tenders for conformity
technical evaluation
interviews
financial evaluation
selection of offer
evaluation report
award of contract
Assembling the TenderDossier

The full tender dossier is assembled in the following order in
accordance to the standard tender dossier, including:
.
.
.
The Invitation to Tender,
.
.
The Draft Contract Form,
Instructions to Tenderers,
General Regulations for Service Contracts Financed from Phare
Funds,
Terms of Reference (the future Annex A to the Contract),

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Management, Monitoringand Reporting
The Organisation and Methods Format (the future Annex B to the

Contract),
The Listof Staff Format (the future Annex C to the Contract),
The Breakdown of Prices Format (the future Annex D to the

Contract),
The General Conditions for Service Contracts Financed from

PharelTACIS Funds (Annex E to the Contract)
Additional information (e.g., information about the programme as

contained in the Special Provisions annexed to the Financing
Memorandum, the invoice model, the standard bank guarantee
model and the Declaration of Impartiality format for members of
the Evaluation Committee).
The General Regulations and the General Conditions for service

Contract Financed from Phare funds cannot be changed. AII other
documents may be adjusted technically to the specific project before
the tender is launched.
The Contracting Authority prepares for the use of the Evaluation
Committee:
A copy of the full tender dossier for each member, to be used later
during the preliminary examination for conformity of the tenders
and for reference if required during evaluation,
A table summarising the specific requirements under the

Instructions to Tenderers and the Terms of Reference. The table is
used later for agreeing on the evaluation grids for the technical,
evaluation.
Dispatch of Tender Dossier To The Short Listed Firms

The Contracting Authority arranges for the tender dossier to be sent at
the same time, usually by courier, to aii short listed firms. The
invitation to tender must specify a deadline for receipt of tenders. The
deadline will normally not be less than four weeks and may be more,
depending on the complexity of the services to be provided.
Tenderers may request clarification/further information concerning the
tender dossier in writing at any time after the launch of the tender. The
Implementation- Management &Techniques
- --
- - - -.-.....
reply from the Contracting Authority, which should also be in writing,

must be sent to aII short listed firms.
Receipt of Tenders
The Contracting Authority registers the date and time of receipt of
tenders and the tenderer's name. Each tender is given a registration
number and, if appropriate, a written comment on the state of the outer
envelope or package is made. The tenders must be kept locked in a
safe place until the opening session.
Evaluation Committee
The sealed envelopes containing the Financial Proposals must
be lockedin a safeplaceuntilthetechnicalevaluationhasbeen
completed
The composition of the Evaluation Committee is decided by the

Contracting Authority. The Committee will usually consist of
representatives from the recipient body or Contracting Authority,
including the PMU, and may include technical expert(s) as
necessary. At minimum the Commission has the right to send an
observer to the Evaluation Committee, and will always do so for
the second stage of technical evaluation (interview) where this
has been foreseen in the tender dossier. Depending on the
nature of the seances to which the tender relates, the
Commission may, instead, be represented on the Evaluation
Committee by one or more evaluators
Members of the Committee must be full time and are required to
attend aII meetings includ ing the tender opening session
Any member of the Evaluation Committee who has, or who has
had, any link with any tenderer must declare it and withdraw from
the Committee. A declaration of impartiality must be signed by
each Committee member
A first meeting of the Evaluation Committee must be held prior to

the opening of tenders, primarily in order to agree on the method
of the technical evaluation including the evaluation grids to be
used and the technically acceptablelevel (normally 65 % out of
100 "10). A Secretary to the Committee, who may be member of
the Committee, is also designated
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Management,
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& Techniques
Monitoring and Reporting
Duringthe evaluation the offers should not leave the premises of

the Contract Authorityunless otherwise agreed withthe
Delegation
Tender Opening Session

The Chairperson of the Evaluation Committee opens the outer
envelopes of tenders in the order of receipt, after the Evaluation
Committee has decided whether or not to open tenders received after
the deadline but before the opening session. The Chairperson then
opens the inner envelopes containing the Technical Proposals,
numbers each document in each envelope and initials the front page
of each document.
The envelopes containing the Financial Proposals are not opened.
They are handed over to the Secretary of the Evaluation Committee
for safe keeping.
The originals of the Technical Proposals are also locked away for
safety purposes.
Minutes of the opening session are prepared by the Secretary and are
signed by the Chairperson. They may be communicated to any
tenderer who requests them.
Information, other than the minutes, relating to the examination,
clarification, evaluation or comparison of tenders and decisions
concerning the award of the contract must not be disclosed to
tenderers or to any other persons not officially concerned with the
evaluation process. Any attempt by a tenderer to influence either the
Contracting Authority or the Evaluation Committee at any stage
between the launch of the tender and the award of the contract will
result in the rejection of his/her tender.
Preliminary Examination of Tenders For Conformity

The Evaluation Committee examines each Tender to see whether it
contains the documents specified, and are correctly signed or
initialled. In the event of disagreement as regards conformity, it is the
Chairperson who decides. The Committee will also check formal
89
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Implementation
- Management & Techniques
requirements indicated in the Tender Dossier and may reject it if the

formal requirements are not fulfilled. In case of doubt the Contracting
Authority will consult with Delegation before rejecting a proposal for
formal reasons.
Technical Evaluation
Technical evaluation concerns tenders which are in conformity only.

The Evaluation Committee evaluates each Technical Proposal using
the evaluation grid agreed beforehand. Once aII Technical Proposals
have been evaluated, they are ranked in order. In case of doubt during
evaluation, the Evaluation Committee may request information or
clarification by telex or fax from the tenderer concerned. The tenderer
will reply by telex or fax. Tenderers may not, however, attempt to
modify the tender after the opening session.
Tenders which are not technically acceptable, Le., which do not reach
the minimum rating agreed, are rejected at this stage.
Interviews
Interviews of the experts proposed are optional. However, they can be
very useful and should therefore normaJlyhave been foreseen in the
Instructions to Tenderers in the case of long term technical assistance.
The expenses (travel, subsistence and accommodation) in attending
the interviews are born by the Tenderers.
If interviews form part of the technical evaluation, then that evaluation
is carried out in two separate stages: first, the evaluation of the written
proposals and, second, interviews of the experts proposed in aII the
tenders that have been evaluated as acceptable at the first stage (at
which the Commission will be represented at minimum by an
observer). The results of the interviews may lead to an adjustment of
the original evaluation of the experts proposed and, as a result to a
change in the original overall ranking of the tenders concerned or even
in certain cases, to an overall ranking as 'non-acceptable'.
90
Implementation
Financial Evaluation
Financial evaluation concerns technically acceptabie tenders only. The
Evaluation Committee first checks the currency of the offer and any
other formal requirements indicated in the Instructions to Tenderers,
and may reject it if the formal requirements are not fulfilled. In the
event of doubt or disagreement, the Delegation must be consulted.
The Committee then completes the evaluation table to compare rates
either for person days or monthly rates.
The method for comparison of rates and real price competition is
either:
evaluation on the basis of unit prices (man/days or man/months),

particularly valuable for simple technical assistance assignments or
intermittent service,
or
evaluation on the basis of the global price of the services for more
complex technical assistance assignments or study contracts.
Selection of Ofter
The Evaluation Committee awards the contract to the tenderer with the
economically most advantageous offer following a weighting process,
provided that the unit rates are aII in line with the market and total.
price is within the maximum amount available for the contract. The
weighting between Technical and Financial proposals is normally
70/30. Before the tender is launched, prior approval from the
Commission is required if weighting other than 70/30 is envisaged.
Negotiations on Price
Negotiations on price with the tenderer with the economically most
advantageous offer, before awarding a contract are allowed only under
exceptional circumstances. Prior approval must be obtained from the
Delegation. If circumstances warrant it, the Delegation itself may
request that price negotiations be held.
91
Implementation- Management&Techniques
Management. 1\10nitoringand Reporting
Where negotiations are held, the Contracting Authority may either

request the Delegation to negotiate on its behalf or negotiate jointly
with the Delegation.
Negotiations may be entered into only if:
the total price proposed exceeds the maximum amount available

for the contract whether or not that amount has been indicated in
the invitation to tender; or
the daily or monthly fee rate exceeds the normal range for the
services to be provided.
If a financial offer requires negotiations and the tenderer does not

agree to lower the price to an acceptable level, then the tenderer with
the second highest weighted average is contacted and price
negotiations are again held if necessary. If the outcome is not
satisfactory, the procedure may continue onto any remaining financial
offers from tenderers whose Technical Proposals have been
evaluated as acceptabie.
Evaluation Report
The Chairperson of the Evaluation Committee signs the Evaluation
Report prepared by the Secretary, which recommends which tenderer
should be awarded the contract.
Cancellation of the Tendering Procedure

The Contracting Authority may, prior to awarding the contract, decide
to cancel the tender. The Contracting Authority will not thereby incur
any liability to the tenderers irrespective of the stage reached in the
tendering procedure. The Contracting Authority must get the approval
of the Commission before cancelling the tender.
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Management,MonitoringandReporting
A tender may be cancelled in exceptional circumstances only. The

cases in which cancellation may take place are the following:
.
.
if no tender satisfies the criteria for the award of the contract,

if the economic or technical data of the project have been
significantly altered,
if exceptional circumstances render normal performance of the

contract impossible,
if every tender received exceeds the maximum amount available

for the contract,
if the tenders received contain serious irregularities in particular in

the normal play of market forces,
if there has been no competition.
Award of Contract
The Contracting Authority prepares the contract dossier, after a
clarification meeting with the successful tenderer if necessary. Once
the contract has been signed by the parties, the other tenderers are
informed in writing that their respective tenders have not been
successful.
The Contracting Authority is responsible for organising that:
The contract is prepared in three top copies and signed by the

Contracting Authority;
They are then sent to the Delegation for endorsement, if required;
..
The three signed top copies of the contract dossier, together with a
notification letter, is sent to the successful tenderer by registered
post;
The return of two top copies signed by the successful tenderer is

checked;
The Commission, DG 1,L.6 Contracts Team is informed of the

result of the tender, via the Delegation, for the purpose of statistical
records;
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Implementation. - Management & Techniques

3.3
A full file on the entire tender proceedings, including the original of

each tender, is kept for five years. It may be audited by the
competent authorities during that period.
Conclusion of Contracts
Conciuding contracts is not only one of the most frequent activities of a

PMU, but also a very important one, creating contractual responsibi
lities and having a major impact on the proper implementation of the
project.
Although the DIS Manual describes in detail most of the steps needed
and gives almost exhaustive information regarding contracts' articles,
there are always some sensitive points which require special attention.
A tentative check list is provided bellow :
1.
AII annexes to the contract should be carefully verified before

signing. Due to the large volume, it happens quite often that
certain pages are missing.
2.
The initials of both Contracting Authority and Contractor should

be put on each page of the contract, including annexes and the
first page of General Conditions.
3.
Legal duration is usually considered by the end of performance,

including the final report. It is recommended to allow from the
beginning one-two additional months, in case that unforeseen
events occur.
4.
It might happen that during the implementation of the contract,

an originally proposed expert becomes non-available (art. 3.2).
In order to prevent any unpleasant situation, the Contracting
Party should have the right to approve the substitute (choose
the second paragraph).
5.
It is not necessary that the Contracting Officer is the same with

the one who signed the contract (art. 4). Very often, contracts
are signed by a minister or a state-secretary as PAO, and it is
not convenient to spend most of his/hers time with reports and
correspondence required by a contract.
6.
The payments schedule (art. 6) should be identical with the one

fro~ Breakdown of Prices. pay attention to the last payment,
which should be at least 10% of the total amount if the duration
of the contract is Ionger than 6 months, and at least 20% for
contracts shorter than 6 months.
Management. Monitoring and Reporting
- - - ..- - ...- - - ---
--
7.
It is recommended to operate with fixed fees, allowances and

costs (art. 7).
8.
In case of large contracts, any advanced payment requires a

bank guarantee. The contractor should be informed in due time
about this aspect.
9.
AIIprices should be free of any taxes. Local consultancies often

claim the VAT from the Contracting Party in addition to the
contracted amount of money. It is their problem to take it into
account when preparing the bid. Later on, there is nothing to be
done. (art. 11)
10.
3.4
It is recommended to choose the Romanian Law as the contract

law, as well as Bucharest and Romanian language in case of
arbitration. (art. 15-16)
Implementation
To re-cap this is the phase in the project life-cycle where the work is
actually performed and the objectives are met and the outputs made,
in as much as possible. This work includes project marketing, ongoing
monitoring and reporting arrangements, identifying problems,
addressing failures and modification of the project objectives as
appropriate.
3.4.1
Project Marketing
Project marketing means continuous communication with the

stakeholders (including project team members) with a view to:
understand what are their expectations regarding the project and

how these expectations are evolving during the implementation of
the project
providing them information about project development during the

whole project life cycle
adapting the design and implementation of the project to

stakeholders' expectations

Management,
There are various tools that might be used in view of communicating

effectively with stakeholders:
communication with the project team members:

verbal communication: state of project presentation, reviews,
project discussion
written communication: project status report, intermediate
report, final report
communication with the other stakeholders:

project newsletter
publications
info-hotline
info-market
creative workshop
informal discussion
press kits
96
Implementation
Management,
- Management
& Techniques
Example
Marketing of the local Development Initiatives Fund (FIDel)

FIDE;L'sma in objective was 'building the 'local institutional capacity
which can generate economic gr.owth and employment in the SME
sector at the locallevel. In the period January - April1997, the PMU
of FIDEL launched an awareness campaign with a view to facilitate
the understanding of the implementation mechanisms by
pregramme target groups: SME and Local Development Centres
(SMELDCs) and local representative bodies (entrepreneurs'
associations, local administration, prefecture, chamber of
commerce, trade unions, private companies, universities, etc). The
campaign was also aimed at disseminating information concerning
local economic initiatives, emphasizing the contribution of the SMEs
to the prosperity of the regions.
The campa"ignstarted with 4 workshops addressed to about 80

SMELDC staff, followed by 40 info-workshops, one per judet. Overall
some 2,000 participants attended the info-workshops. The
participants were invited either directly by the PMU, or by the
SMELDCs from eachjudet, based on a participant profile elaborated
by the PMU. This approach was aimed at involving the SMELDCs in
the process, and promoting them among the local actors. Each infoworkshop had a 3 hours duration and it was followed by a cocktail.
Each participant received a set of materials, including:
a 6 page leaflet on FIDEL overall
.
.
a 12 page brochure on 'What are the local initiatives?'

a newsletter to be used during the FIDEL programme
Each info-workshop consisted of a 40 minute presentation (delivered

with the help of a presentation kit a set of 15 coloured slides),
followed by a discussion. The cocktail preved to be a very useful
tool, since it was a good opportunity for the participants to know
each other, to promote their ideas and to get feedback from the
others.
97

Special attention was given to delivering information to the media

through press kits and interviews with journalists. A media data base
was elaborated as a prerequisite ta the campaign. The result of this
sustained action was a significant coverage of programme objective
and mechanisms. As a consequence, about 120 articles were
published by the local press and o'{er 100 newscasts and interviews
were broadcasted on radio and TV stations. Press articles included
news stories, follow-up articles, and interviews with the PMU
representatives. News stories focused on announcing the topic,
participants and available financing. The follow-up articles used
mainly FIDEL press materials, published with slight ar no changes in
most cases. The headlines picked up keywords like: FIDEL, Phare,
local economic development, support to SMEs. The articles
reinforced ideas such as: FIDEL as a chance for local/regional
development; SME as a main development-agent at the locallevel;
Phare support to the local economic development. The indicators of
the success of the awareness campaign were:
.
.
.
3.4.2
about700 lettersof intentionto participatein the programme

about 400 participants in the courses on local economic
development
102 project proposals submitted to the tirst evaluation session in
August 1997
Monitoring
Because international agencies provide most of their loans and grants

through projects, they have helped promote the project concept (that
is, the package of investments, policies, and institutional and other
actions designed to achieve particular development objectives within a
particular time frame) in order ta ensure their financial assistance is
used ta achieve specific and monitorable objectives within a given time
frame.
Monitoring and evaluation can provide the information project planners
and managers need ta determine whether a project has been
implemented as planned. It can also help them identify the problems
that need ta be resolved, the expected ar unexpected impacts that
have occurred, and the lessons that should guide them in selecting
and designing future projects.
98

Monitoring and Evaluation studies can provide the kind of information

required by project managers and planners at each of the stages of a
project.
Monitoring is not Management

Merely keeping in touch with a project and ensuring that aII reports are
submitted is not in itself management of the project. Management
means taking actions based on this information as well as analysing it.
Although Phare documents have very highlyspecified formats and are
produced for accountability according to Phare's internal systems,
they do have a lot of valuable information within them, particularly
related to how well on schedule a project appears to be, and whether
the resources are being utilised.
If you are in a PMU, you should insist on reports from projects which
you can use for fiIIingin Phare reports.
Scheduling should be kept under review

The most likely thing to change during a project's lifetime is the
scheduling: the type of projects which Phare supports are those where
estimates of the time taken for activities can be very difficult, whereas
the objectives are normally clearer and less likely to change. On the
other hand, the overall time taken for a project is important and
therefore it is important to keep under review any time slippage and to
try to analyse whether such slippages are critical to the completion 9f
the project in time.
99
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-Implementatipn - Management & Techniques

Management, MOllitoring and Reporting
Table:
Practical applications of Monitoring and Evaluation at

each stage of the Project Cycle
Stage
Practical Applications of MIE Studies
1 Project
identification and
preparation
A "prospective evaluation" draws lessons from

earlier projects to identify the kinds of projects
most and least likely to succeed. "Evaluability
assessment" assesses whether the project is
likely to produce measurable resultSjthat can be
evaluated
3 project
planning
and design
Rapid "diagnostic studies" and "beneficiry

assessment" asses the "social soundness" of
projects and anticipate how different target groups
are likely to respond.
4 project
implementation
"Input-output" studies provide regular feedback

indicating whether the intended outputs are being
used correctly and whether the intended outputs
are being achieved. Delays, cost-overruns, or
other problems can be rapidly identified.
"Diagnostic studies" provide rapid feedback on the
causes and possible solutions of problems that
have been identified.
5 Evaluation
of project
implementation
"Project completion reports" assess the overall

design and implementationof the project,
providing guidance on how to improve the design
of future projects. The assessment of institutional
arrangements helps improve the operational
phase of a project. "Cost-effectiveness" studies
assess the most economical ways to deliver the
intended services.
6 Management of
project
operations
"Sustainability assessment" studies monitor the

factors affecting the ability of the project to
continue delivering the planned services and
benefits to the intended beneficiary groups and
identify and correct factors inhibiting the project's
sustainability .
7 New project "Impact" or "summative" evaluations assess how

identificawell the project has achieved its intended benefits
tion
and impacts and identify factors affecting their
achievement.
100
Implemel1tation-Managetl1enti&techrliques
Table: Timing and purpose of the main kinds of Monitoring

Studies
Study
Purpose
Timing
Performance
monitoring
To track the use of

project inputs and
production of outputs
and to identify delays
and problems
Reports produced
monthly or quarterly
throughout the period of
project implementation
Financial
monitoring
To monitor the correct

use of funds, disbursements and internal cash
flow and assess costeffectiveness
Weekly or monthly
quarterly and annually
Diagnostic
studies
To understand why
implementation and
sustainability problems
have occurred and
propose solutions
Follow-up to examine
problems identified in
performance monitoring;
or conducted
periodically to assess
implementation
performance.
Midterm
assessment
of project
performance
To assess the overall

progress of the project in
order to identify key
issues and required
changes
Midpoint of the
implementation phase
Project
completion
report and
project audit
To assess project
implementation
performance of the
executing agency;
followed by an
independent audit to
evaluate the extent to
which Ioan agreement
terms are being met
Prepared after final

disbursement
Monitoring
maintenance
and
sustainability
To assess the capacity

of the project to continue
delivering intended
services and benefits
throughout its planned
economic life
Once project is
operational, studies can
be conducted on a
periodic basis or at one
point in time.
There
is no substitute for actually visiting a project
Particularly if your usual contact is with the contractor, it is not possible

to get a full understanding of the situation without visiting the project. If
you visit the project as a manager, it is important not only to speak to
the contractor but also to aII stakeholders, from which you can test
whether any reasons given for slow progress are valid or not.
The
objectives are the benchmark for measuring success
There is no point in trying to ensure that every small detail is exactly

the same as the TOR/contract: the question is which failures are
significant enough to take action. In this respect the stated objectives
of the project should be used.
3.4.3
QualityAssurance
Quality assurance is an issue which is much wider than the scope of

this chapter. Generally, discussions about quality tend to relate to
organisations, and the need to have a vision of quality in order to
produce quality products and services. This approach is certainly true
regarding books on the subject, which tend to be much more related to
process management than to project management.
Basically, quality assurance is a key to effective project management,
since the goals of project management are very much the same as
those of quality management:
to satisfy the customer as cheaply as possible in time

Quality issues and dilemmas are often more naked in project
management than they are within organisations. For example:
since there is a clear end date to the project, there is a pressure to

cut corners to speed the project up at the expense of quality;
due to time constraints, projects are frequently not sufficiently well

designed which means that there will be a greater number of
modifications during the life of the project and (possibly) an overall
Ionger time taken to reach objectives;
102
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_IIIIIIIIII~-
-Management & Techniques

- - -- - - -
Implement~tion
. use ofconsultantsand subcontractorswhomaynothave the same

commitmentto qualityand standards as you do mitigates against
overall quality control.
Quality management can be at a variety of different levels. In order of
increasing commitment this might be:
inspection: salvage, sorting out when things go wrong, taking

corrective actions
quality control: quality manual, processing of performance data,

self-inspection, product testing, use of statistics, paperwork control
quality assurance: third party approval, system audits, advance

quality planning, use of quality costs, statistical process control
total quality management: aim for continuous improvement,
involvement of suppliers and customers, performance

measurement, teamwork, employee involvement
These definitions are based on an organisational approach and

process management, but nonetheless, they can also be applied to
project management. Phare procedures demand at least quality
control, but quality assurance is a level which the project manager can
decide or not.
Quality is a theme which we should recall as we consider different
aspects of project management and stages in the project life-cycle.
Some particular points which should be recalled are:
objectives for a project should include quality objectives, otherwise
actions which reduce the time taken will always be more important
than those which maintain standards;
thorough design is important to avoid the penalty (in time as well as

quality) of too many modifications later in the project life-cycle
quality control requires the use of systems and statistics, which

should be built into any project design.
103
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Irnplementation Management&Techniques
Management, ~Motltoringand Reporting
-- - - - - - --3.4.4
Reporting
The Consultant should furnish the PMU with information relating to the
services as the PMU may at any time request. Such information are
usually sent via reports, such as:
periodic reports, whose form, number of copies, subject matter and

frequency will be as laid down in the contract
special reports related to implementation difficulties
a final report submitted by the Consultant on termination of the

services. A financial analysis of the programme and a critical study
of any major problems should be attached.
3.4.5
Problems with implementation
TypicalProblems
Non-performance
The project is not performing the tasks requested, or not up to a
sufficient standard. It needs to be established the reason for this, is it:
.
.
because the personnel are not up to the job?
because the job was actually impossible?
because the environment does not make it possible to work (e.g.

insufficient access to the Minister/Ministry)?
Fraud
Fraud should result in the cancellation of the project unless it can be
localised to an individual and the contractor has taken appropriate
steps to avoid it being repeated. Institutional fraud is, fortunately,
relatively rare.
Personality
Conflict
This can happen between the consultants and the beneficiary or

between the consultants themselves. In either case, removal of at
least one of the individuals and replacement is probably the only
solution. The contractor should be able to find replacement personnel.
104-
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Implementation-Management&Techrtiques
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Management, Monitoring and Repqrtil'1g
Time Slippage
This happens frequently, and there may be godd reasons. The
contractor should alert the PMU of any slippages which will affect the
performance of the whole project, but the PMU also needs to have a
view on what is accepta bie in terms of time-slippage.
Change In the Environment

Changes of government and institutionalstructure and competence
mean that originalassumptions may no longer be appropriate. Ifa
redesign of the project is required, consideration should be given as to
whether it is possible to continue withthe same consultancy team.

Case study:
Liviu, the manager of the PMU for the Programme for Active
Employment Measures (PAEM), has invited his project team to
analyse the intermediary report submitted by the Local Development
Foundation (LDF) from X, a township with 8,000 inhabitants. LDF
impler:nentsa project within PAEM, consisting of three measures: a
centre for employment services, a vocational training centre and a
SME grant scheme. The financiJlgto the LDF is provided in
payments according to an initial schedule. Each payment is
transferred in LDF bank account after the approval of the report
submitted by LDF management team to the PMU.
Everything was OK with the LDF project until receiving this report
and the attached documents, which contained some irregularities,
such as:
. payroll documents wrongly made
absence of documents certifying payments of taxes on labour
different signatures for the same person on the payroll
documents
. most of payments made in cash
absence of documents specifying the eligibility criteria for grants
to SMEs, approved by the LDF Board
. grants to SMEs paid in cash
. labour contracts concluded but not registered with the local
Chamber of Labour
Moreover, the project manager's name and his assistant's (his wife
actually) appeared very often on the list of those who had received
bonuses and per diems as well as on the list of those who had
participated in study visits and training courses abroad!
Few days before, Liviu had received a letter of complaint from X,
accusing the project manager of lack of communication and
transparency and stating that grants were awarded on a preferential
basis and some people were paid although they didn't contribute to
the project. The X project was presented as a successful 'family
business'!
What to do? Liviu knows that he has many possibilities of
intervention, from the simple request for supplementary information
to the cancelling of the contract and the recovering of grant. But he
knows also that the project is very well elaborated, people are very
capable, and the measures are extremely necessary in that area.
106
Implementation - Management &Techniques

What to do if things go wrong?
Negotiate
It is most importantto try to negotiate with the contractor, to try to
come some amicable solution. Any good contractor will have a project
manager who will be able to propose solutions and negotiate directly:
After aII, they want to keep the contract. A compromise solution is
obviously desirable, since more drastic measures will certainly delay
the project and there is no absolute guarantee that any replacement
contractor will perform better.
Replace Individuals
If the key problem is one of personality conflict, it is almost certain that
at least one individual needs to be replaced. This should be negotiated
with the contractor's project manager who should be given the task of
finding a number of similarly qualified consultants from which it is
possible to choose. It is not unreasonable to ask to interview any
candidates before accepting them.
Independent Evaluation
If there is no real agreement on what.is wrong, and the contractor has
suggested no credible solution, an independent evaluation can create
the background for further discussion. Short term TA can be mobilised
through the framework contracts. TOR need to be carefully written.
Cancel the project
In extreme cases, it may be appropriate to cancel the project rather
than let it continue in a way which merely wastes resources. Before
doing this, there should be a full check on the legal requirements to
cancel the project. Advice should be sought from the EU and the EC
Delegation in Bucharest.
Revise expectations
It may be that the initial expectations of the project were unrealistic.
Purely because a contractor has undertaken to do the impossible is
not a reason to keep him to it. In such a case, it is more important to
work out a set of objectives which it is possible to meet.
107

Case study (continuatlon):
How ta proceed in such a case? One possible approach would be:

analyse the problem
. identify possible cause(s)
. identify possible corrective measures(s)
. analyse possible consequences (positive andnegative)
. elaborate possible scenario(s) (What happens if ?)
What decision Liviu made?

Q informing the project manager about the irregularities observed
by the PMU
=:>asking supplementary information
=:>postponing the payment until everything is clarified
...A second report was submitted by LDF but it didn't clarify
everything. Liviu then decided ta mobilise an auditing company and
to ask for an external evaluation of the project.
108
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Implementation
--
Evaluation
4.
Evaluation
This section includes background information on the fourth phase of

the project life cycle.
To reiterate, this phase includes:
assessing whether the contractor has truly completed

the task
identifying best practice for further projects
identifying what resources are required for the future

(if something goe5 wrong this may mean that more
resources are"required rather than that the project
has failed)
identifying the need for future projects
109
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Implemehtation- Management&Techniques
.
4.1
Definition - Why,
Why
Who,
Evaluation
What
Evaluate?
There are a number of reasons to evaluate:
Who
to learn from the experience of what succeeded and what did

not
.
.
to consider if there were better ways of designing the project
.
.
to check that the objectives of the project have been fulfilled
to work out what problems remain and what further action

needs to be taken (the first stage of identifying problems as
part of a new project cycle)
as background to any conflict with contractor over what has

been achieved
Should Evaluate?
In general, evaluation should be carried out by an independent source,

neither the contractor nor the contracting authority. This is a typical
consultancy job. Under the Phare programme, such work would
typically be under 300,000 ECU and therefore contracted under the
framework contracts.
What should be
evaluated?
Evaluation is not an audit (which can be done separately). It is

therefore not a check that aII procedures have been adhered to.
Rather it is a chance to decide whether the project has met its wider
objectives. In this sense, evaluation can be both qualitative and
quantitative. Any TOR for an evaluation should make it clear what is to
be evaluated and how. It is not sufficient to use broad terms such as
"whether the project is successful".
110
-Implementation
Evaluation
Table: Measures of Programme performance which should be

used in evaluation
Measures of
Prqgramme
Performance
EFFICIENCY
outputs/inputs
Purpose
Examples
Compares resource
inputs with outputs;
value for money
Benefits of
programme (as
indicated by
specifically designed
output measures)
relative to the
resource committed
Outputs (measures
of which are derived
during work
programme) relative
to total outputs hoped
for programme
Actual costs of
programme relative
to projected
(budgeted costs)
Contribution of
government
resources to
stimulate activity
relative to total
activity stimulated in
the private sector
Numbers receiving
benefits of policy
relative to total
population of
companies who
could benefit
EFFECTIVENESS
output/objective
Compares output
with objective
planned output
ECONOMY
actual
costs/planned
costs
LEVERAGE
policy inputs/total
inputs
Assess scope for

elimination of
wasteful expenditure
Assess catalytic (or
stimulating) role of
policy
PARTICIPATION
output/total client
base
Identifies
Cichievementsin
relation to estimated
scale of population
TARGETING
target client group
service/total client
group served
AVAlLABILlTY
Identifies degree of
targeting
Level and quality of

service provided
f,
111
1
Amount and quality

of the inputs provided
by programme
Implemehtation
Measures of
Programme
Performance
AWARENESS
(take-up)

Evaluation
Purpose
Examples
Assesses knowledge
of companies which
the programme is
being targeted on
% of companies
aware of programme
relative to total client
company population
who could be aware
% of needs of
companies which are
met by programme
relative to an
estimate of the
companies potential
total need
% of companies who
are pleased with
programme
SUFFICIENCY
Assesses provision
of services against
an estimate of need
ACCEPTABILlTY
Compares policy
services provision
with companies
preference
112
Evaluation
Example:
It is very important for a project manager to have a tool able to
record the main information about the prolrammeand to process it
in an appropriate manner. Lefs come back to the FIDEL case.
Remember that the PMU made an important decision: to modify the
approach suggested by the Financing Memorandum due to the
major changes perceived in the environment. It was clear for them
that it would be critical to <;iemonstratethe impact of the various
activities during the implementationof the programme.
Consequently, a data base became operational by December
1996, before starting the actual operations. And it was extremely
useful to demonstrate the efectiveness of different measures, as
follows:
awareness raising campaign:

indicator 1 = total number of letters of intentions vs. total
.
.
participants in the information seminars;

indicator 2 = total number of participants in the courses vs.
total participants in the information seminars;
indicator 3 = total number of organisations submitting project
proposals vs. total participants in the information seminars;
training courses:
indicator = success rate of those who participated in the
courses vs. global success rate, in terms of number of
accepted proposals vs. submitted proposals
project appraisal process
indicator = dynamics of the success rate during the overall
process (3 sessions each followed by feedback provided by
the Appraisal Committee on each proposal), in terms of
number of accepted proposals vs. submitted proposals, and
total funds contracted vs. total funds requested.
113

Evaluation
Main stages in evaluation
Identify objectives;
.
.
Identify indications of gross outputs (benefits);
Allow for "Dead-weight" Le. what would have happened anyway;

also displacement and multiplier effects. Thus, obtain net additional
benefits.
Consider indirect effects;
Gross effects
Dead-weight
Gross additional effects
Displacement
I
Net additional effects
What to do with the results?

It is pointless to commission an evaluation unless something is to
happen with the results, whether they are purely for learning purposes,
or for the design of a new project. Se clear what the evaluation repert
will be used for since this will help the evaluater.
114
-Evaluation
4.2
Types of Evaluation
There are a wide variety of evaluation techniques, and the type of
evaluation chosen depends on the project and how the results will be
used. Some issues which are to be considered are as follows:
Qua/itative vs. Quantitative

It is better where possible to have qualitative evaluations, since there
can be no argument with the results. However, this should not be to
the exclusion of qualitative factors when this is important. For
example, in a training course, it is easy to count the number of training
courses and people trained, but it is also important to discover the
opinions of the participants and what they do with the training they
receive, which is more difficult to assess on a quantitative basis.
Final or part way through
An evaluation/assessment part way through a project can be used to
check that the project is on course and assumptions have not
changed. Such an evaluation needs to be:
.
.
fast (since it holds up work on the actual project)

able to pinpoint not only that something is wrong, but what it is
(since corrective action should be taken straight away)
It would be expected that such an evaluation has the active

participation of the project team and need not necessarily be dOrleby
an independent external assessor.
A final evaluation is to try to learn the lessons of the project, since it is
too late to take corrective action on this project, but it is important to
learn for the next one. Such an evaluation should be:
.
.
as long as necessary to be thorough
preferable be done by someone independent and external to the

project.
be highly analytical in order to distil out the lessons to be learnt

rather than to concentrate on the details of successes or failures
115
Implementation
4.3
Evaluation
Project sustainability
In developing projects for Phare, the sustainability of the outcome is
oflen an important consideration, particularly when the project relates
to creating or developing an institution. A project which creates an
institution which requires indefinite further support is not a project at
aII; moreover it is probably not the best use of Phare funds. If
sustainability is a real consideration, it should be designed into the
project from the very beginning so that, for example, training staff to
work on their own is given greater priority than external consultants
providing quality services directly.
Sustainability of institutions can be considered in three different ways:
Financial Sustainability
Does the organisation have fund-raising powers sufficient to do
without the Phare intervention? Some organisations will require
continuing public support - they cannot charge their direct clients
enough to cover their costs in providing a service. In these cases, is it
possible to identify local or national public sources of finance? Will the
government give any undertaking to take over funding aII or part of the
costs in the future? Does such funding have any criteria attached to it
(e.g. what sort of clients and how many)?
Organisational Sustainability
Does the organisation have aIIthe skiIls required and can it replace
these skills if individuals leave? If the skills required are not readily
available and existing staff will have to train new recruits, it is unlikely
that an organisation of less than 5 or 6 people will be in any way
sustainable without outside training. It may be possible to establish a
centre of excellence in training alongside a number of new institutions
for this reason - but this needs to be designed from the beginning.
Market Sustainability
In some ways this is another way of looking at.the question of whether
it is a project or not. Is the market which the institution addresses one
which will continue into the future, or is the environment changing so
fast that it will be irrelevant in a few year,s'time? Are there sufficient
related activities that the organisation can change its focus, without
requiring outside intervention? For example, support for small
enterprises in the early stages of transition will be orientated towards
--Implementation
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- Management
& Techniques
Evaluation
helping people to establish new businesses, which is almost certainly

not an economic activityand requires publicsubsidy. Later on, the
focus will move towards existing businesses and there may be
sufficient of them that the support can be provided on a fee-paying
consultancy basis.
117
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181I...
Implementatlon - Management & Technlques

5.

This section contains material related to the use of consultants and
interactionwithstakeholders, since these two groups of people are of
key importance to effective project management.
This chapter includes
The advantages and disadvantages of using

consultants
Some reasons for using Foreign or Romanian

consultants
.
.
.
.
Situations to use consultants

A definition of Stakeholders
An explanation, why/whento consult Stakeholders
Reasons why Stakeholders promote projects
118

Consultants 'and Stakeholders
5.1
Use of Consultants
Mast Phare projects require the use of consultants, and perhaps their
role is taken for granted. This means very often that projects are
designed with consultancy in mind, rather than consultants being
identified as necessary as a result of planning the project. In addition,
the fact that the majority of consultancy contracts have been
concluded with foreign consultants means that the word "consultant" in
Phare is often synonymous with "foreign" even when there is already a
Romanian consultancy profession.
In this section we consider first of all.the advantages and
disadvantages of using a consultant (either Romanian or foreign) and
then the relative merits of Romanian and foreign consultants. Finally
we consider how it is bestto use consultants at different stages of the
project life-cycle, and some general comments on how to deal with
them.
5.1.1
Use of Consultants in General
The Advantages
Specific Skills
There are specific ski Ils you do not have, but there is not sufficient
requirement for them to employ someone full time. Equally, an
organisation may lack expertise in certain fields.
Not a Permanent Requirement

There is a temporary requirement for more people.
Independence/Outside
View
It is useful to have a view which is from outside and which my present

new ideas. A second opinion from a new perspective is always a
welcome addition to ongoing'debates.
Source of Advice
It can be helpful to have a source of advice which is not part of the
organisational structure.
119

ConsultantsandStakeholders
Training Opportunities
Consultants can help to train staff and this training "on the job" may be
a more cost effective way of increasing skills in an organisation than
conventional training during which time staff are not actually doing the
job.
Faster
Performance
Consultants can perform the work faster and to a higher quality than
existing staff.
Does your requirement for consultants fit into the above suggestions
(or are there other good reasons)? If not, perhaps you should be
managing the Phare funds yourselves and not employing consultants.
The Disadvantages
It is expensive
The cost of any consultant is higher than the salary of a permanent
employee.
Desired Results
are not Guaranteed
Judgement of the quality of consultants and their work in advance is

hard to make. You know existing staff and their limitations more
accurately.
Relationship with Employees/Local staff

Local staff may well resent higher-paid consultants from outside the
organisation "telling them what to do". The price of Western
consultants in Romania is very high relative to local salaries and this
can cause friction.
Project issues becom.e more important than overall objectives

Consultants have a vested interest in keeping projects going for their
own benefit. It is important that the creation of the project does not
overwhelm consideration of the costs relative to the overall objectives.
120

Anecdote
A farmer whose sheep were dying went with his problem to an
agricultural consultant. The consultant asked whether the sheep
were eating the long grass, and suggested that they should only eat
short grass. The farmer went away and followed the advice, but
another sheep died. He returned to the consultant who asked him
whether the sheep were standing up or sitting down when they ate.
When told that they sometimes sat down he advised that they
should stand up at aII times. The farmer went away and followed
the advice. Another sheep died. The process repeated itself several
more times (the sheep should only face north when eating, the
sheep should not eat before 6 o'clock in the morning ~tc. etc.).
Finally the last sheep died. The farmer returned to the consultant
and told him that despite aII his advice the last sheep was dead and
that he would not be coming back again. "That's a pity", said.the
consultant "because I had much more advice to give you".
5.1.2
Why use consultants?
Why Use a Foreign Consultant?
Foreign consultants are normally more expensive than local ones and
require greater support, particularly due to lack of knowledge of local
conditions, such as culture and language. Here are some reasons
why, nonetheless, they have advantages over local consultants:
Expertise not A vai/a bie Locally
Some expertise is more widely available abroad, owing to the slow

development of the Romanian consultancy sector.
Wider Perspective
Foreign companies may have a wider perspective on problems and
hence may be able to bring new types of solutions as suggestions.
Experience of EU
Foreign consultants undoubtedly have more experience of EU-funded
projects and ways of dealing with the EU bureaucracy. They can
perhaps in this respect work well with local consultants.
121
Implementation Man~gement & Techniques

Quality Assurance
It is possible more easily to see the track record (or lack of it) for
foreign consultants than for local ones.
Ability to Manage Large Projects

Larger projects require special skills as well as the ability to manage
the cash flow, particularly for late payers such as the EU.
Contracting Requirements
Some foreign assistance is tied to the use of foreign consultants.
Why use Romanian consultants?

There are many self-evident reasons for using Romanian consultants,
not least the fact that they are normally cheaper and better adapted to
local conditions, particularly language and culture.
In addition, such consultants have a "special" motivation which is
based on:
the fact that they operate in an emerging market, which is unsettled

and without a developed demand;
their consequent strong interest in proving their capacity and

expertise;
their commitment to promote a new profession, which is not yet

recognised on the market.
Nonetheless, at this moment, the stage of development of the market

means that quality of services is a major problem.
In view of the advantages and the obvious benefit of developing the
local consulting sector, PMUs should consider ways of encouraging
the involvement of local consultants in projects. These might include at
least:
.
.
considering this factor when packaging projects

indicating the use of local consultants in Terms of Reference and
Tender Dossier (there is a specific point regarding this in the
standard tender dossier)
122
making sure that Romanian consultants are aware of likely tenders

so that they can express interest in them
5.1.3
Use of Consultants at different stages of the Project

Cycle
Below we outline some of the uses of consultants during different

stages of the project cycle. In each case we indicate the value of using
a consultant in this activity.
Identification
,Analysis and Formulation
.
.
.
analysis of existing situation (experlise)
decision on whether a project is appropriate (second opinion)
definition of project idea (experlise)
problem/needs identification (experlise)

prioritisation of issues (second opinion)
Don't forget that there needs to be a budget to use consultants in this

phase, which may be before any programme has started. Make sure
that design of new programmes is built into the old ones if you want to
use consultants for feasibility studies or design work. If this is the first
programme, it may be that the EU can find a budget from elsewhere. If
you need it, ask.
identifying resources available for the project (experlise)
identifying resources needed for the project (experlise)
producingtermsof reference(experlise:butyou haveto be in

control)
This phase is one where the PMU should be more in control, and in
general consultancy involvement would be limited to long term
advisors to the PMU. The PMU is responsible for the project and so
outsiders should not b~ responsible for anything more than the first
draft of Terms of Reference.
123


Typically implementation is done by a contractor who is a consultant
mobilisation of resources - contracting with a contractor to do the

work (in cases where there are many small pieces of work, a
framework contract may be appropriate). Typically the contractor
would be a consultant.
identifying problems (periodic assessment, second opinion)
addressing failures (third party conflict reso!ution)
modification of the planned results and project objectives as
appropriate(externa!view,secondopinion)
These are the typical areas where consultants are used.
Evaluation
.
(second opinion)
identifying best practice for further projects (expertise, second

opinion)
identifying what resources are required for the future - if something

goes wrong this may mean that more resources are required
rather than that the project has failed (expertise, externa! view)
identifying the need for future projects (expertise)
Evaluation is the stage where the outside view of a consultant can be

most valuable. If you have been closely involved in the project
implementation often you "cannot see the wood for the trees" and an
independent view is the best way of learning the lessons of the
success or failure of the project. In this respect, do not forget to
allocate appropriate resources to evaluation in the strategic plan for
the programme.
124
5.1.4
General Comments on Use of Consultants
1. -Don'temploy a consultant if you are not really sure that you need
him/her. It is easy for PMUs to see consultants as easy solutions to
any problem, but often there are other solutions which could be as
effective. Consider whether you really need a consultant at aII
when you design the project.
2. Either (preferably) formulate clear objectives and tasks for
consultants or alternatively help them to find out your need and to
define their own tasks. In the latter case, you should be clear how
you will monitor their performance and measure whether you are
satisfied or not. You should not complain that a consultant has not
performed a task which you have not specified and he has not
agreed.
3. Don't use them for tasks which you can perform by yourself (make
them add value). This is particularly true of long term advisors to
PMUs who often are used for administrative tasks (particularly in
relation to Phare) which could be done just as effectively by lowpaid administrative staff employed locally. Although you may not be
paying directly for the consultant, using him for things you can do
yourself represents the sacrifice of an opportunity to do something
more technically challenging which you employed him for.
4. Squeeze the consultant for information, knowledge, international
relations and networking, and image. This is particularly the case
with long term advisors, who probably have access to sources of
information and experience within the EU which you have no easy
change of finding directly.
5. Make them part of your team so that their is a sense of

accomplishment. This is part of management of the team (see also
section on project Management Skills).
6. Se aware that long term and short term consultants have different
characteristics: long term consultants can become better adapted
to local conditions but tend to be generalists. Often one of the key
roles of a long term consultant is to manage and direct short term
consultants with more specific skills and experience. If you are
writing terms of reference which require a mixture of short and long
term consultants, consider whether you need to specify which are
which or whether it is better for the consultancy company to
propose what seems to them to be the most effective solution.
125

5.2
Consultation with Stakeholders

5.2.1
Identification of Stakeholders
What do we mean by Stakeholders?

To repeat our earlier definition, by "stakeholder" we mean someone
who has an interest in the project. This is a much wider set of actors
than the immediate beneficiaries of the project. An absolute definition
is difficult to make, but could be between:
Definition of Stakeholders
Any person, group of peop/e or organisation who has a vested

interest in the project now or in the future
ar the broader definition of
Anybady
5.2.2
who is affected by or can affect thfIjJroject
WhylWhen to consult with Stakeholders?
General
We need to consult with stakeholders throughout the project cycle
because:
they are the people or organisations which have the greatest
interest in the outcome of the project and are therefore the best
friends or worst enemies of the project manager;
they are the people with the greatest influence on the project and
can make the difference as to whether it succeeds or fails;
they have the most information about the progress of the project,
the environment in which it is operating and the likely results, and

therefore can give the best indications for necessary modifications
throughout the project;
they are typically beneficiaries of the project and therefore

consulting with them regarding their exact needs will assist the
success of the project.
126
--

Through the Project Cycle

We identify below in more detail where cOl"\sultation is appropriate:
Identification ,Analysis and Formulation
analysis of existing situatian (what do we know about the existing

situation?)
.
.
problem identification (what are their problems?)
clarification of the objectives of any intervention (what are their

objectives?)
clarification of the expected results of any intervention (what do

they want from a project?)
prioritisation of issues (which is the most important problem?)
identifying resources available for the project (what resources can

they put in?)
identifying resources needed for the project (what resources do

they need?)
.
.
producing Terms of Reference (is it what they require?)

going through a tendering process (stakeholders should assist in
the selection process, where appropriate)
I,
!
ongoing monitoring and reporting arrangements (stakeholders

should be kept informed, and consulted about changes to the
project)
identifying problems (stakeholders can identify problems more

quickly than the project manager)
addressing failures
modification of the project objectives as appropriate (stakeholders

have a role to play in whatever changes are made)
Implementation Management &TechniqtJes

- - --
Evaluation

(stakeholders' opinions are valuable in this respect)
identifying what resources are required for the future - if something

goes wrong this may mean that more resources are required
rather than that the project has failed (stakeholders should also try
to learn from experience)
identifying the need for future projects (stakeholders may want to

promote new projects)
It is obvious from this list that consultation with aII stakeholders is an

important factor in the success of a project. Nonetheless, on a day to
day basis it is easy to ignore stakeholders who you do not meet
frequently and who do not have any direct part in the management of
the project. You may tind it useful to make a schedule of meetings with
representatives of stakeholders (who have been identified at the

beginning of the project) or to set up a steering committee for the
project. In this way stakeholders can be kept informed in the easiest
manner.
5.2.3
Why do Stakeholders promote Projects?
8takeholders have a major part to play in identifying new projects and

the selection of projects from different proposals. It is clear that the
motivations of the various stakeholders may be quite at variance with
those of the initiators and funders of the project. 8takeholders can still
promote the project for their own reasons, but it is important to
understand what they are in order to manage their expectations and to
ensure that the project continues smoothly even when the
environment changes.
Here are some typical reasons for stakeholder promotion of particular
projects:
Because They Believe in the Objectives

This is unfortunately rarer than would be ideal. Even when promoters
do believe in the overall objectives, they often have additional
objectives of their own.
128
---
Because They Want the Money

For Phare as a source of "free" money, this is an important reason for
stakeholders to promote projects. This objective is rarely fulfilled, since
Phare projects are not generally about direct subsidy. If this is the
major reason why a stakeholder is involved, it means that managing
expectations will be difficult.
Because They Need to Sustain Their Own Organisations
This is a particular objective of organisations set up by previous
projects, who need to tind a justitication for their continued existence.
Such organisations should be challenged to produce an end date for a
project 50 that intervention is not merely an ongoing subsidy.
To Pre-empt the Competition

Stakeholders promote projects because they would like to be involved
in the project rather than their competitors and not because they are
interested in it themselves. Such promoters will be difficult to deal with
since they are generally disinterested in the results of the project.
---- - ...
Getting theBest out of the System
- --
6.
- ------
Getting the Sest out of the System
A summary of important points in order to get the

best out of the system
The advice to
leam from your mistakes
- ...-
- -- -
IRIIII"""IIM"-__
__""__
Getting the Best out of the System
--
It may often seem that working in a PMU is a process of fiIIing in

forms and following procedures for Phare. Noretheless, we hope that
this manual has convinced you that these procedures and documents
can be used by the PMU for effective project management. We
conciude with a number of suggestions for getting the best out of the
system, 50 that your work in following procedures is most effective in
getting to the objectives you have set yourself.
Design Thorough/y Before You Start
Time spent in being clear how the project should operate at the
beginning will pay off when it is implemented. Half-baked ideas will
remain half-baked. There is a very large pressure to move quickly, but
you should resist this if it is to the detriment of the project.
Be C/ear About Your Objectives

Make sure that it is clear to everyone (including yourself) how success
will be measured. This will help others participate in the design and
review the implementationof the project. If you do not have clear
objectives, you cannot expect others to follow you. If you do not set
clear objectives for consultants, it is difficult to criticise their work.
Don't Accept Second Rate Work

If there are problems, don't be afraid to discuss them openly. If none of
the bids for a tender are acceptable, don't accept any of them. There
is always a bureaucratic pressure to continue with the easiest way, but
this is not necessarily going to give the best final results. With ~egard
to consultants this particularly applies to:
Use of Framework Contractors. Since the Framework Contracts

are effectively monopolies, the contractor is likely to send CVs of
people most convenient to him, or on whom he makes the largest
profit, or who happen to be available. If you know that there are
better qualified people available, tell them. A few days of delay in
negotiation over CVs is unlikely to harm the project. Choosing the
wrong consultant during the design phase could be a disaster.
Long term advisors. It is very difficult to assess the effectiveness

of long term advisors in advance and some of them just don't fit in,
or cannot adapt, or don't have the necessary technical knowledge.
If this is the case, you need to negotiate with the contractor for
getting a replacement. Leaving someone in post just because they
won the contract is not useful to anyone. Consultancy companies
131
--".-
Gettin9_
th_e!~stoutofthe SystelT)..;.,.-____
__--=J
are used to this situation: ifyou approach the company in afirm

but politeway, itshould be possible to resolve the situationto
everyone's benefit.
Consult with the Stakeholders
Make sure that the stakeholders 'are happy with the design, and
consult with them and involve them during implementation. remember
that stakeholders outside your immediate team can be vital for the
success of a project.
Manage
the Projectas it progresses
Don't imagine that any project runs smoothly, there will be need for
monitoring and reallocation during the lifetime of the project.
Learn from your Mistakes
Use evaluation as a way of understandingwhat went wrong 50 that
any future projects can be designed and implemented in a more
effective way.
132
--
ProjectMattagernent Skills
V.
ProjectManagementSkills
.,
Introduction
ta the Project
Management
Manual
Introduction
to Project
Management
Programming
Design ,&
Preparations
Implementation
Management &
Techniques
Project
Management
Skills
- 133
---
I~
---ProjectManagement Skills
Developm.ent of Management
1.
- ---
- --"'""'--
rThiscl"lapter
includes- I
- --
Abriefsummaryofthe managementtheory
The development of the understandmg of

managers and their role
The principlesofmanagement
An exercise to identifywhich prospective in
..,.
management you identify with
134
,
--
IIIIIIIIIIIIIIII "IIII
11I011II___
ProjectManagement.Skllls
For decades the question, 'What is the nature of management?' has

been a preoccupation for, writers and practitioners. To many,
mans;lgementis seen as a set of tools and maype a 'science', to others
it is defined as the 'art' of getting work done, yet to most people
management has been surrounded by ambiguity and confusion.
It is therefore, not surprising if critics of one camp or the other
eventually resort to the claim that management is about a set of
knowledge, skills and beliefs and that what works in one situation may
not work in another. While this is partially true, it gives emergence to
the belief that there has been throughout the short life of management,
bursts of ideas which are essentially unconnected to one another and
which form a collection of ways of dealing with people, tasks and
situations.
Such uninformed opinion ignores the most fundamental issue related
to the development of concepts, theories and approaches which have
been and are utilised in the world of organisations today: in that,
management, like any other discipline, has gone through stages of
development each of which has been critically tested and rigorously
examined in order to ensure its claim of 'workability'. Moreover, it is
imperative to realise the evolutionary nature of the development of
managerial concepts and its parallels with the revolutionary trend of
other disciplines, such as mathematics, astronomy, economics and
even art and their development as a means of experiencing and
expressing how the world around us functions, operates and exists.
It is vital for scholars, students and practitioners in management to
understand the 'evolutionary' nature of the development of
management no matter how revolutionarythey may seem in a .
particular time or in a particular country or culture. Management has
been inspired by many who wished to improve the way things can be
done and in a more effective way than their predecessors or their
counterparts. Therefore, management as it is known today has gone
through stages of being a new idea, a challenge to the old ways of
doing things, becoming guidance as to the appropriate concerns and
relevant practices; becoming acceptable as a norm, being critically
studied and dealt with and ultimately being replaced by another idea
which requires further development.
For practitioners in the world of managing people and organisations it
is of great importance to view management as what it is, a product, a
set of good practices acceptable in a community with values and
beliefs which are in a 'transitory state'. In other words, in the same way
that other paradigms in management have been put forward and
challenged over time, the present state of development of
135
1----
Proj~t Management Skills

--..--
management will also be subjected to inherent and inevitable process

of change and development. To claim that management has
.
developed to its full potential and has arrived at it final destination of
effectiveness and efficiency is a folly.
What follows in these chapters enables managers, administrators and
project managers alike, to gain a basic understanding of how the
dominant views and concepts in management have been developed,
what is their relevance for effective operations of work in the context of
project or otherwise and how these techniques, guidance and skills
can best be put into practice.
To this end, while it would be unnecessary to follow every detail of the
evolutionary process of how management as it is today was created
and established, it is essential to become familiar with the milestones
in the process: each ofwhich reveals the philosophy, value structure,
beliefs and most importantJythe dominant assumptions which were
held by scholars, theorists, developers, trainers and practitioners at
different points in time.
Each milestone in the development of management is marked by a
new or rather a different set of assumptions about the nature of the
work, organisations, people, clients and other concepts such as
motivation, reward and the like. Although, at first glance to the
practitioner there seems to be almost no unifying structure for relating
the various ideas, concepts and skills in management, the underlying
presuppositions and practices provide the basis for rather distinctive
perspectives on management. The stress ought to be placed on the
overlapping nature of schools of thoughts and perspectives from which
the world of work, people and organisations have been looked at and
that each perspective in management provides a basis for the
development of the next.
136
..........
1.1
project Management Skllls

Developmentof Management
Perspectives inManagement
In order to understand the perspectives from which management can
be viewed, produced and even promoted, it is necessary to see the
inseparable link between management as a discipline and the parallel
developments in other disciplines such as organisational studies and
sociology, industrial psychology, economics, personnel and human
resource management,"accountancyand the world of finance. The
closest related subject to management is that of organisation and
organisational studies. The term organisations nowadays, can be
employed to describe the personal attention which is given to matters
related to the individuals own life and general development, however,
when it comes to 'management' it would be unjust to cla~mthat the
presence of one (organisation) necessitates the existence of the other.
Organisations, unlike projects, business, administration and projects in
the established or temporary states, arise when individuals and groups
each pursue their own interests, but also co-operate in the recognition
of their common interests, objectives and goals. In a sense,
organisations use knowledge, techniques and resources in order to
accomplish the task. In order to achieve this the organisation utilises
certain general principleswhich were originally developed by the early
sociologist Max Webber at the end of the last century, namely the
notion of role, authority, harmony, status, bureau, and rationality. It is
not therefore unusual to see that organisations were assumed to be
rational and logical and therefore it was thought that people within
work organisations would also behave in a rational manner.
Since the early days of the development of management the notions of
'order', 'predictability' and even 'rationality' itself have been challenged
and questioned. In short, the inseparable relationship between
'organisations' and 'management' theories have meant that
management theories evolved, and were based, around the ways
organisations were viewed. For example, from the traditional
perspective, organisations were viewed as hard, easily definable
entities which were mechanisticallYstructured and were operating
based on the scientific laws and general principles. People, therefore,
were treated as components of a mechanical structure and were even
described as the 'cogs' of a machine who were expected to behave in
an orderly fashion in a predictable environment. Management
therefore was simply viewed as a science, the study of the dynamics
of the forces within organisations which co-ordinates the activities of
the sub-systems and relates them to the environment. Managers were
neede9 to maximise the utilisation of resources in the most scientific
and efficient ways.
--
--
Project M~nagement Skills
Developme'ntof MC;inagement
---The traditional perspective, not surprisingly, did not place the
emphasis on 'people' and therefore paid more attention to 'task' at the
expense of 'people' and their development. It ignored the need to
recognise, for example, what human relations theorists refer to as the
social system of the organisation, the community of people and their
development of norms of behaviour and presence of informal codes of
conduct. In this era, management was seen as the art of getting things
done through people and therefore since people constituted the most
important ingredient of the work organisation, managers required not
only the skills for carrying out the task but also required the skills of
dealing with people.
Inevitably the human relations perspective was challenged by the open
system and the contingency philosophy which emphasised on the
need for flexibility in order to cope with changing markets and
expectations. Such a perspective treated individuals as those with the
potential for development, learning and ultimately capable of managing
themselves. It is therefore not surprising to see that organisations to
which the 'open system' managerial principles have been applied and
practised are defined as having tentative boundaries and with flexible
relationships organised in a complex way. Such organisations, are
comprised of sub-systems and they themselves are part of a bigger

more complex system. They are being affected by changes in their
environment and indeed they introduce change to their internal and
external environments. Survival alone is no longer the focus of
attention for managers with open system perspectives, but change
and development have become the main concern.
The parallel between development of organisational theories, the
managers perspectives in management and the assumptions held by
their advocates about people can be best shown in the diagram below.
138
----
--
---
--
-----
Project Management Skllls

Diagram:
Development of management perspectives within system

context
Assumptions
Perspectives
Organisation
Closed
system
Semi-open
(modified)
Open system
People
Cogs of
mechanical
Structure
Social
agents of
work
community
Complex sociotechnical &

information system
Approaches
to
management
Classical
management
(Traditional)
Human
relations
Contingency system
It is important to remember that each set of assumptions concerning

the nature of the organisation, its principles and approaches to its
management provided a basis for practices and procedures which
over time became a domain of belief and values system. These
dominant values systems which are often referred to as schools of
thought, encapsulated other approaches with their own prescriptions
of 'right' and 'wrong' values, thoughts and beliefs. However, the overall
dominance of a set of distinguishable values, beliefs and thoughts
remained within the boundaries of each perspective.
Developmentof
.---- ..--.
-.- -- Management.
1.2
Proj~t Mana.gem~tSkills
-- ----
TraditionalPerspective
A major attenipt was made in the early days of this century by
Frederick Taylor and his followers who saw the organisation as a hard,
tangible mechanical system with a tendency for 'orger' and 'harmony'.
These assumptions were based on Webber's original conception of
the nature of the organisation, which was 'hierarchical', based on
status quo and which advocated the relationship between authority
and position within the hierarchy of the organisation. The vague notion
of so called Scientific Management emerged, one which became the
foundation for the studies of organisational and management scholars,
practitioners, planners and developers. It still remains a powerful and
influential philosophy throughout the world, particularlYiwithin the third
world countries and the newly formed transitional economies.
It is imperative to note that despite the numerous criticisms that it has
faced, it still remains a dominant philosophy amongst those who
believe in centralisation of planning, decision making and power within
the organisation. Even within transition economies, its assumptions
are nowadays being questioned and challenged by scholars,
developers and practitioners. Management thinkers and writers
therefore contributed the most to the growth and development of this
school of thought. Their contributions will be briefly noted below.
1.2.1
Principles of Management
The name Frederick Taylor is synonymous with the term 'scientific

management'. It was the result of his studies conducted in Bethlehem
Steel Company that provided a scientific basis for designing and
measuring jobs. He believed that, by breaking down the elements of
each task into a number of separate components and finding the most
efficient way of working on those tasks, it is possible to increase
productivity, generate economic rewards and ultimately achieve
prosperity for both the organisation and the individuals.
His main principles for management were:
Development of True Science of Work - the scientific investigation of a
daily task; work can then be planned and task is discharged under
optimum conditions (Work Study)
Scientific Selection and Progressive Development of the Workmen
workers were selected to ensure that they possess physical and

intellectual qualities to enable them to achieve the specified output
140
-----
---
--
Project ManagementSkills
.....--
_=:J
systematically and each can be trained to be a "first-class" man.

Brjnging Together of the Seienee of Work and Seientifically Selected
and Trained Men - Providing mechanism in place to ensure the cooperation between men and management.
Constant and Intimate Co-operation of Management and Men - by
understanding each other's task and understanding who is best suited
for what (psychological acceptance of status quo).
Underlying philosophy is that co-operation is an essential pre-condition
for the implementation of scientific management and that co-operation
can be substituted for conflict.
Taylor's belief was that science is the solution (science means
systematic observation and measurement and application of the
generalised rules, principles and laws). Therefore, it was believed that
once naturallaws governing work and productivity are discovered,
then everyone will adhere to the laws of the situation and there will be
no place for conflict.
Henri Fayol was one of the earliest exponents of a general theory of
administration. He defined administration in terms if five primary
elements:
Definitian of Administratian
planning, organisation, command, co-ordination and control
These, later have become the foundation for 'consideringthe basic

processes or functions of management.
Fayol argued that managerial activity was the problem and solution for
aII organisations, for example, industrial, public services and
churches.
It
His first analysis was to divide the activities in industrial undertaking

into six main groups. These were:
a) Technieal (production, manufacture, adaptation)
b) Commereial aetivities (buying, selling, exchange)
c) Finaneial aetivities (search for optimum use of capital)
d) Seeurity aetivities (protection of property and persons)
e) Accounting aetivities (stocktaking, balance sheets, costs, statistics)
mi
--ProjectManagementSkills
Developl11ent
... ----- of.Management
f) Managerial activities (planning, organisation, command, coordination, control)
It was suggested that management answer to those activities are:
a) Forecast and plan - essentially looking forward, deciding what is to

be achieved by the organisation and planning to achieve those
objectives
b) Organise
- building
up the structure, material and human resources
of the undertaking
c) Command - maintaining activity amongst the personnel
d) Co-ordinate - binding together unifying and harmoniiing aII activity
and effort
e) Control- seeing that everything occurs in conformity with
established rules and expressed command
Another influential management writer, Colonel L.B. Urich, in his book
'The Elements of Administration' separated the principle of forecasting
from planning, thus presenting principles of management as six
managerial activities.
1.2.2
Critique of Traditional View
This approach to organisations and their management has been

subject to substantial criticism.
. It employs close system assumptions in order to reduce uncertainty
and maximise control.
Many of its principles are based on common sense "Truism" and
suffer from generality, in that they lack specific guide lines for
applications.
It regards the organisation as "Machine" and people as its

components, "organisation without people".
At its best it regards the individuals as "economic man", only

motivated by money.
It, therefore, disregards the social and more complex needs of
individuals in organisations
Nowadays. communication has been given more emphasis than ever
before, however although analysis may differ in certain aspects. or
maybe,highlighted in one aspect more than others, nevertheless
Fayol's work stiUrepresents a most useful framework in which to study
management in general.
142
... ... --
ProjectManag~ment Skllls
Despite the above criticism the classical approach still remains
influential even today. Many of its principles have formed the
foundation for the development of the modern management concepts.
1.3
Human - Relations School (Semi-open System)

This movement began out of scientific management with industrial
psychologist's attempting to devise tests to select the best person for
the job. During the early part of the twentieth century, many industrial
engineers and psychologists resorted to investigations in order to
discover the relationship between work environment and productivity.
The researchers were interested in finding out whether people at work
were operating at their full capacity; and how far their performance
was affected by factors such as temperature, lighting, humidity and
noise in the workshop.
Hawthorn Studies
Mayo and his colleagues carried out various experiments and realised
that variables such as iIIuminationand humidity cannot be treated
separately from the meaning which individuals assign to them, their
attitudes to them and pre-occupationwith them. This led to studies on
workers' morale, job satisfaction and work group cohesion. So workers
were no longer perceived as an isolated psychological being, but as
group members whose behaviour is controlled by group norms and
values.
"Major Emphasis"
Major concepts about people, organisations and management.
a) Organisations (work) have social systems as well as technical
economic system.
b) The individual is not only motivated by economic incentives, but is
motivated by diverse social and psychological factors.
c) The informal work group became a dominant unit of consideration.
d) "Authoritarian" leadership patterns must be replaced by
"Democratic" styles.
e) Increasing work satisfaction necessarily results in increased
prod~ctivity and organisational effectiveness.
f) Effective communication channels must be maintained between
various levels of the hierarchy. Thus "participation" must prevail.
143
-.,
"""" ...
ProjectManagement Skills
-----
--
--
""'''''''''''''''''''''-
g) Management requires effective social skills as well as technical

skills.
11) Participants can be motivated in the organisation by fulfillingcertain
socio-psychological needs.
The work of the founders of human relations was started off, like many
major works, by behavioural scientists.
1.4
Open System Approach

System approaches, is believed to be able to unify many fields of
knowledge, physics, biology, and social sciences, aII as a broad frame
reference.
Ackoff notes, "A system is a whole that cannot be taken apart without
1055of its essential characteristics, and hence it must be studied
whole". Now instead of explaining a whole in terms of its parts, parts
began to be explained in terms of the whole.
The Open system view recognises the dynamic relationship with its
environment and receives various inputs, transforms these inputs in
some way, and exports outputs. These systems are open both
"internally" - between the subsystems - and "externally" between the
system and environment.
The organisation can be considered in terms of a general open system
model, see model below:
Chart : A simple organisation system
Inputs
---+
Transformation
---+
Outputs
1
Feedback
The open system is in continuai interaction with its environment and

achieves a "steady state" or dynamic equilibrium while still retaining
the capacity for work or energy transformation. These are open not
only in relation to their environment but also in relation to themselves,
or "internally" in that interactions between components affect the
144

---.......--
system as a whole. The open system adapts to its environment by

changing the structure and processes of its internal component.
The system must receive sufficient input of resources to maintain its
operation and also to export the transformed resources to the
environment in sufficient quantity to continue the cycle.
The Role of Manager
The view of the organisation as an open system, naturally, stipulates
different roles to be played by the management.
From an open system view, management faces situations which are
dynamic, inherently uncertain, and frequently ambiguous.
Management is not in full control of aIIthe factors of production, as
suggested by traditional theory.
only managers who can deal with uncertainty and with battles that
are never won but only fought well can hope to succeed", Sayles
(1964: 289).
What, however, is seen as an essential aspect of management role is
his function as decision maker, especially at co-ordination and
strategic level.
Summary
For the organisation to survive it is important to maintain a steady
state. The concept of 'feedback' is important in understanding how a
system works. It helps to adjust to the environment.
A system must have both 'adoptive' and 'maintenance' mechanisms.
While maintenance plays a conservative role and thus avoids sudden
change, the adoptive mechanism is necessary to prepare and provide
change.
Sub-Systems
The three major managerial concerns in a complex organisation are:
1. The 'operating' subsystem which involves task performance.
2. The 'strategic' subsystem relates the activities of the organisation
to its environment.
3. The co-ordination subsystem senses to integrate activities vertically
(strategic and operating)
145
Project Management Skills

1.5
Human Resource Development and Management

Assumptions and Emphasis
Theary X and Y
Mac Gregor in his famous book, 'The Human Side of the
Organisation', contrasted the classical approach to management and
human relations. He argued that in order to understand the ways
people (human resources) behaved and consequently were managed,
two theories, namely X and Y need to be consider~d.
Theory X essentially is used by the followers of scientific management
who assume people are lazy and incapable of supervising their own
activities. They dislike work and do not wish to take responsibility. The
solution preferred by the exponents of classical management is to use
threats, coercion or motivate people by economic incentives and other
material means to make them work. The assumption is since people
are not capable of self management they ought to be fully controlled
and supervised.
The followers of Theory Y believed in the principles of Human
Relations School of thought, and suggested the opposite to the
exponents of Theory X. They argued that people are basically
interested in their job, like to take responsibility and are active and
willing to undertake work. Therefore, management do not have to
resort to 'carrot' and 'stick' as a means to manage people at work.
People should be provided with meaningful jobs, one which offers
satisfaction, responsibility and can contain elements of growth and
development. Whilst the advocates of Theory X emphasised on
'control' the followers of Theory Y placed emphasis on the 'transitory
nature of people' and the gradual move towards ensuring
'commitment' and self management.
Walton (1985) has appropriately compared the approaches or points of
emphasis, in so far as the management of human resources is
concerned by the followers of the above two management schools as
follows.
146
Project Management Skills .

Development of Managemeht
Table: Comparison of the Theory X and Theory Y

Aspects of
-HRM
Emphasis
Classical Management
(Theory X)
Job Design
Individual performance;
de-skilling, breaking job to
its basic elements
Thinking and need for
accountability
Organisation
Structure &
Managerial
Style
Performance
Expectation
C'ompensation Policies
Employment
Employee
Voice Policy
Employee
management
Relationship
Differences
Human Resource
Management
(Theory Y)
Group participation
and need for
problem solving in
order to increase
quality of working
life.
Hierarchicalwith top down Emphasis on style
rather than
control system; need for
rules and co-ordination
principles of
status & authority related
management; belief
to position in hierarchy
that groups can be
harnessed to
situation of organisation
provide self control
Well defined standard &
Emphasis on
maximum performance;
'order', harmony'
others remain the
'harmonised' work
Placement is desired.
same.
Variable, individual pay,
Compensation
incentives, emphasis on
policies remain the
same.
cuts hourly pay
Employees regarded as
Participation will
variable 'costs'
Jesult; Continued
employment; extra
effort & avoiding
'Iay off'
Addition of limited
Employee voice allowed
ad-hoc consultation
on narrow agenda
and corporate
mechanism
remains the same
Emphasis on
'Them' & 'us' emphasis
Unitary interest
quality of life 7
employee
involvement;
pluralism of interest
& common goal
147
- -- - Project Management Skills

~--j
- ----
Contingency Approach
(Commitment)
With the emergence of open system thinking and the need to consider
policy and procedures which are contingent upon the changing
situation, explicit distinction was made between 'personnel
management' and that of 'human resource management'.
Guest (1987) in his article, 'Human Resource Management and
Industrial Relations', suggests that personnel management which has
been adopted and preferred by the managers and officials who
advocate to 'traditional' and 'human relations' prindples, has been
developed based on the short, ad hoc and closed rather than
integrated and open system approach (see table beloWi)
Table:
Stereotypes of personnel management and human

resource management
rime &
Planning
Perspective
Psychological
Contract
Control
Systems
Employeerelations
Perspective
Preferred
Structures/
Systems
Roles
Personnel
Human Resource
Management
Management
Short-term, reactive,
ad hoc, marginal
Long-term, pro-active,
strategic, integrated
Compliance
Commitment
External controls
Self-control
Pluralist, collective,
low-trust
Unitarist, individual,
high trust
Bureaucratic,
mechanistic,
centralised, formal
defined roles
Organic devolved
flexible, roles
Largely integrated into

line management
Maximum utilisation
Evaluation
Cost-minimisation
Criteria
(human asset
accounting)
Source: David Guest, 'Human Resource Management and Industrial
Relations', Journal of Management Studies, 24 (5),1987, p.507.
Specialistlprofessiona I
148
~!
Project Management .Skills'

In agreement with Walton (1985), it is suggested that HRM nowadays

has graduated and matured from its 'transitory' state and thus ought to
place more emphasis on 'commitment' on the part of their employees
a-ndemployers rather than 'control' which is 'exercised by the employer
alone. In this way, the individual employees and/or managers are
exp~cted to take responsibility for upgrading the system performance
since the emphasis should be 011job redesign, whole task, doing and
thinking.
In aflat organisation structure with co-ordinating and controlling
shared mechanism which is based on shared values and beliefs,
teams are developed and utilised in order to achieve higher objectives.
The whole affair should emphasise on flexibility of defining duties and
orientation towards the need for contingency upon the changing
market and business environment.
In organisations with less emphasis on hierarchical status and
differentiation, the HRM will place emphasis on availability of
information to aII and reward system which is extended beyond
individual pay towards orientation of equity, profit sharing,
advancement and skills and mastery of work. Employees are provided
with training and re-training with assurance that participation and
commitment will not result in loss of employment. In such a new
corporate governance environment the HRM policy will stress on the
employees voice participation and a wider range of issues because it
is believed that the employees as recipients of information will benefit
from joining, participating in and contributing to meetings and other
group and team related activities.
Theory Z
The unprecedented economic growth and development of Japan
during the last few decades has drawn the attention of management
theorists and specialists towards the ways in which Japanese
organisations were organised and the ways in which they dealt with
their employees and managed their human resources affairs at work.
Ouchi, in his work 'Theory Z' suggests that the success of the
Japanese in comparison with contemporary American organisations is
largely due to the adoption of human resources policies which
encourage commitment, participation and as a result lead to
innovation, better performance and flexibility to meet the changing
needs of the market economy (see table below).
,
149
I

Development 'OfManagement
Diagram : Ouchi's Theory Z
Japanese organisations
American organisations
Life-time employment
Short-term employment
Slow evaluation and promotion
Rapid evaluation and promotion
Non-specialist career paths
Specialised career paths
Implicit control mechanisms
Explicit control mechanisms
Col/ective decision-making
Individual decision-making
Col/ective responsibility
Individual responsibility
Holistic concern
Segmented concern
Source: Adapted from Wil/iam Ouchi, Theory Z, Addison Wesley,

Reading, Mass.,
1.6
What Skills are necessary for effective Managers?

The debate as to what kinds of skil/s a managers needs to possess in
order to remain effective at work goes back to the era of classical
management thinking and more precisely to the contribution of Fayol
(1911). He recommended that managers in order to function
effectively, required skil/s such as analysing, planning, organising,
monetary, authorising and enabling to which he also added the
imperative 'communicating' with others. Analoui (1993) has
summarised the contribution of these theorists and concludes that, it
was believed that 'while operations required technical and solely work
related knowledge and skil/s, managers who occupied executive
positions needed skills of managing work (determining objectives,
forecasting, planning and organisation) and also managing people
(directing, co-ordinating, control/ing and commuflicating)'. Therefore, it
was assumed that, ' people on work organisations were ... primarily
rational entities functioning in a practical manner'.
150
Managerial Roles
Analoui (1993) suggests that project managers frequently tind
themselves needing to make decisions. Being in charge of a
department, unit or project brings with it the necessity to make
decisions quickly and accurately. The skills of processing data is,
therefore, one of the most essential tools in the project managers
armoury. This category of skills has also been acknowledged by
Mintzberg (1973) who suggested that managers nowadays have to
play many roles of which decision making in one of the most important.
Theories and skills suggested by Mintzberg are as follows:
Roles
Management
Skills
Figure head
Interpersonal roles
Leader
Liaison
Informational roles
Monitor
Dissemination
Spokesman
Oecisional roles
Entrepreneur
Disturbance handler
Resource allocater
Negotiator
How to develop your managerial
ability and competencies?
Management development is a challenging and rewarding process. It

requires you to acquire skills as well as developing the ability to
question your own level of competence and expertise, in relation to
what is expected from you. In order to develop a manager must be
motivated towards increasing his effectiveness and be prepared to
recognise the need to change.
151

Developnientof Management
Opportunities for Development
.
.
your own experience
talking with other managers
.
.
.
reading
actions of other managers
attending courses
accepting responsibility for your own development
Aiso
.
.
.
gain awareness of your own development needs

establish objectives
identify opportunities
. maintain and review your progress

Which Prospective in Management do you identify with?
Exercise:
In order to discover for yourself that managerial perspectives

subscribe to a set of dominant values, thoughts and beliefs, attempt
the following exercise which has been developed by Dr F.Analoui
(1994) from the University of Bradford in1994.
Step one
Show your agreement or disagreement with the following statements
by giving each a score of between 1 and 5, 1 being the lowest and 5
the highest.
152

A.
In my opinion a manager,
a)
Should exercise total control over the activities of each

individual or group in his/her organisation
b)
Ought to delegate control and authority to different

departments and co-ordinate the overall activities of
groups in order to meet the objectives of the organisation
(project)
c)
Has to pay attention to the welfare of the individual or

group, their social needs and enhance effective
communication in order to achieve the organisation's
goals
d)
Ought to pay attention to the internal environment as well

as the changes which are taking place outside of the
organisation and are likely to affect the behaviour of
people and/or the organisation
e)
Should be concerned with the task in hand rather than the

people who carry out the task
f)
Oughtto promote the participation in decision making,

amongst the people in the organisation, in order to
successfully achieve his/her objectives.
Need not involve his/her subordinates in the process of
decision making
g)
h)
Should benefit from managerial skills such as effective

communication, problem sOlving,conflict resolution and so
on, necessary for dealing with issues related to people at
work
i)
Should welcome ideas, suggestions and new proposals

from subordinates and colleagues in order to enhance the
achievement of the organisation's goals
Needs to benefit from an extremely competitive
personality with total dedication to task in hand
Should view conflict and disagreement at work as the
inevitable outcome of people's interactions with one
another at work
j)
k)
1)
Requires a balance of task-related knowledge and skills

and people-related skills to deal effectively with human
and work aspects, whether from within or outside the
organisation
153

Step two
Now place the score given to the above statements into the table
below:
Statement
score
SM
HR
OS
a
b
c
d
e
f
9
h
I
i
w.,o..,
j
k
I
I
TOTAL:
I
Prepared by Or. Farhad Ana/aui (1994)
Note: The score you have gained represents your preference for a set
of values and the degree ta which you tend to share certain
assumptions and beliefs with the advocates of the above schools of
thought.
154

2.
.
.
.
An exercise on career and life planning issues

Assertiveness Skills
An exercise on asserting yourself
.
.
Negotiation strategies
Qualities of successful managers
Hints and ways for achieving results
155
2.1
Self in Interaction with Others

Managers often fali into the trap of becoming more conscious of
themselves and therefore do not pay enough attention to their
.
interactionswithothersandtheenvironmentin whichthey perform

their tasks. Therefore, for 'managersto become successful the tirst
step is to accept that they have to get results and in doing so they
have to work with others. More importantly, that they differ in terms of
their views of the organisation,jobs, how they should be organised
and managed from other with whom they work. These differences are
due to factors such as different background, physical shape and size,
experiences, perceptions, education and many other cultural
influences.
Psychologists believe that there are two basic differences between
people. These are personality and perception. The debate on
personality has been going on for a number of years. The most helpful
view is that which is cited in the Encyclopaedia of Psychology (Voi 2,
1975).
"Personality is the relative stable organisation of a person's
motivational dispositions, arising from the interactions between
biological drives and the social and physical environment. The term
usually refers chiefly to the affective cognitive traits, sentiments,
attitudes, complexes and unconscious mechanisms, interests and
ideas, which determines man's characteristic or distinctive behaviour
and thought".
As shown above, it is suggested that there are a number of influences
which determine who we are and these either emerge from 'inherited'
factors or are previously obtained through learning processes, from
our interactions with our environment. Analoui (1993) provides a
practical view and suggests that, personality inevitably has been
formed and will be continually developed under the influences of both
sets of factors identitied above. What is important is not so much how
the personality is formed but rather, the resultant frames of references;
the values. Beliefs and thoughts which form the foundation for
managers to deal with issues in the real world. It is the frames of
references which provides the basis for our perception of ourselves
and others and which determines the quality of our relationship with
others and the environment
156

Personality and Learning in Organisations

Summary of phrases which characterise psychoanalytic and
humanistic schools of thought about personality
Psychoanalytic
Humanistic
Focus on the
unconscious control of
behaviour
Focus on the conscious, the blindspots, known to others, unknown to

self
Behaviour is to be
understood
Behaviour is to be incorporated,
experienced, developed
Focus on mentallife,
mind, iIInesses,thoughts,
dreams
Focus on feelings, behaviours,

interactions of total persons
Analysis is an esoteric
experience
Therapy is more like a religious group,

a gathering, a fellowship of seekers,
warm, supportive
Analyst interprets
Helper reflects, observes, shares, tries

to puII together
Analyst distant and

scientific
Helper reacts, authentic responses,

feedback
Go back to the roots of

the problem
(instincts/early traumas)
Present manifestations of behaviour
Analytical
Facilitative
Emphasis on analyst and

qualifications
Emphasis on client, relationship and

experience to discover
Scientific, rational,
objective
Heuristic, holistic, involved, dynamic
Fragile holding together

of personality which is
dangerous under the
surface
Robust personality, tough at rejecting

unwanted interference, wants to grow
and self-actualise under the surface
Reduce tensions
Release forces for growth
157
--
Project.Management Skills
Managingself,Interactionsand
--- ---AchievingResults
IIIIIIII-
Interpersonal Awareness
Johari Window
A framework was developed by two American psychologists, Henry
Ingham and Joe Luft. This approach to management training helps
people to understand the development of differences between their
'self perception and others' perception of them'.
Chart : The Johari Window
Known to self
Unknown to self
Known to others
Open
Blind
Unknown to others
Hidden
Unknown
Adapted form Luft, J. And Ingham, H. (1955), The Johari Window; A

Graphic Model of Interpersonal Awareness, Proceedings of the
Western Training laboratory in Group Development (Los Angeles:
UCLA Extension Oftice).
In a social interaction we are aware or unaware of certain facets of our
own and others personalities at the same time.
1. The Open Area

Facets of ourselves, our attitudes, behaviour and personality which are
known to us and are also apparent to others.
2. The Blind Area

There are aspects of ourselves that are apparent to others of which we
are unaware.
IIIIII'II
IAI__

Managingself,InteractionsandAchievingResults
3. The Hidden Area
Some attitudes, feelings, values and beliefs which are private and
therefore we do not wish to disclose them to others
4. The Unknown Area

There are aspects of ourselves of which we are unaware and which
are also not apparent to others, but they do influence our behaviour;
unless we make determined efforts to increase our self knowledge, we
are unlikely to understand some of our actions and reactions.
Only be self disclosure and feedback from others can the

discrepancies between self perception and perception of self by others
be reduced. This process also helps us to understand the expectations
we have of others in their relationshipsto us.
Blind
Open
Hidden
Unknown
First Socia//nteractions
Open
.
Blind
1
Unknown
Hidden
Self-disc/osure effect
159
--- ---
ProjectMC!"agem~nt SkllIs
Managinself,Interaoti6ns'aMAchievingResults
Open
Blind
Hidden
Unknown
Feedback effect
Open
............................. ......
Hidden
Blind
Unknown
Self-disc/osure and feedback effects
As managers we ought to attempt to integrate the individual aspects of

our life with the organisational realities in order to reach a balanced
state. Individual development should consist of awareness and
knowledge of your needs, your partners needs and requirements, your
career and your plans for the future.
It is equally important to consider issues which are related to your job,
your employees, their job and their plans for their career development.
..-
160
--
--- ---
Project Man.gement Skills

Managing self, Interactiohsahd. Achie\iing Results
-_...__...
Exercise
Take a piece of paper and answer the questions raised in diagrams
(A) and (B). Consider your answers carefully. Can you prepare a life
plan? How can these activities be integrated with one another?
Diagram : Career and life planning issues
ISSUES
How can we
help our
employees to
manage their
careers and
fammilies?
Are employees
happy in their
current jobs?
How do
employees feel
about
management
development
opportunities
here?
/
ORGANISATION
How can I
manage a career
and family?
How do
my
career
plans tit
with my
partner?
Ami
suited to
my job?
INDIVIDUAL
--What is my
next career
move?
Are employees
matched to
their jobs?
What kinds of
career opportunities/constraints do
employees see
in this
organisation?
Am I clear
about what I
want from
my career
Ifrom life, in
general?
Do the ways
we currently
strusture jobs
present
problems to
our
What are my
training needs?
How can I help to

accelerate my career
development?
employees?
(B)
(A)
161

Managing self, Interactions
AchievingResults
""- and
-- --Action lever:
Assessing Yourself and Goal
Setting for Personal Development
Alternatives
1. Getting things done as they appear
2. Setting priorities,areas and concentrating on them.
Three Broad 5tages:
1. Diagnosis
2. Goal Setting
3. Planning for on going evaluation
Diagram :
Relations ships Diagnosis

Evaluation
Diagnosis
- Goal setting - Action -
Diagno,sis
~~X
Evaluation
Goal
Evaluation Goal
;ttin9
Action
2.2
iin9
Action
Diagnosis
Evaluation
etc.
Goal
\ 7n9
Action
Assertiveness
What is Assertiveness?
It is being clear about our own position, communicating this to others,

and accepting their positions. Essentially it involves taking
responsibility for our own feelings and beliefs and not attempting to
-.--- 162 -,

Managing self, Interactions and Achie.ving Results
- -- ----
,.,.
justify them.
Assertiveness is about creating a balance between avoiding being
submissive and not being aggressive towards others
There are a number of ways we attempt to influence others. For
example,
.
.
.
.
logic
vision, and assertiveness
guilt
threat
reward
Assertiveness
is at the very least an honest statement of your beliefs.
1. Why are we not assertive?

We would not be liked
We would not get on
We might be wrong
We might be made to look foolish
Lack of commitment
2. Whenarewe assertive?
When we are deeply committed
When we make our position clear
When we persist without being stubborn
When we say 'no' when we mean 'no' and not 'perhaps
Assertiveness Skills
Some techniques are iIIustrated below. Those of most use will be 'selfexpression' and 'acceptance of criticism'. The skills are most valuable
where they have been learned to the extent that you can use them
without feeling uncomfortable.
163
Project ManagementSkllls
Managing
1.
- -
--...-
self, Interactions and Achieving Results
Self-expression
(Broken
Record)
P!Jrpose:A skill that by calm repetition - saying what you want over
and over again - teaches persistence without your having to rehearse
arguments or angry feelings beforehand, in order to be 'up' while
dealing with others. Allows you to feel comfortable in ignoring
manipulative verbal side traps, argumentative baiting, irrelevant logic,
while sticking to your point.
a) Oemands:
I want. I think ... what I need is ... It is
b) Persistence:
I appreciate your position, but I need ... I
important to me that
c) Workable
Compromise:
2.
...
understand your feelings, but it is important

that I have ...
I know that you feel .. , but I want ... I
appreciate that you need ... , but I have to
have...
We could ...
If I did ... and you did ... Between us we could
Acceptance of Criticism(Fogging)
Purpose: A skill that teaches acceptance of manipulative criticism by

calmly acknowledging to your critic the possibility that there may be
some truth in what he says, yet allows you to remain your own judge
of what you do. Allows you to receive criticism comfortably without
becoming anxious or defensive, while giving no reward to those using
manipulative criticism.
164
Project Managel,11ent Skllls

Managing self. Int~~ctionsand Achieving Results
a) Agree with truth:
b) Agree with the

possibility:
c) Agree with logic:
d) Allow for
improvement
e) Empathy:
3.
'You are wearing that shirt today' That is

right; I am wearing this shirt'
(rather than 'What is wrong with this shirt'?)
'You are not very organised': 'Maybe I am not
very organised'
(rather than 'What do you mean, not
organised. You should talk!')
If we bought a new car now, instead of
keeping the old banger,we would be a lot
safer out on the road, and we would not have
these high repair bills'.
'You are right. A new car would have those
advantages' (rather than 'There you go,
another way to spend my money. Why do
you keep' etc.
'Your dresses do not fit you'
'1am sure they could fit better' (nobody is
perfect)
'You are being very unfair" I can see how
you feel that I am unfair'
NegativeAssertion
Purpose: A skill that teaches acceptance of your errors and faults

(without having to apologise) by strongly and sympathetically agreeing
with hostile or constructive criticism of your negative qualities.
Allows you to look more comfortably at negatives in your own
behaviour or personality without feeling defensive and anxious, or
resorting to denial of real errors, while at the same time reducing your
critic's anger or hostility. Note the non-verbal components of Negative
Assertion. The tone of voice is neither apologetic nor hostile. You are
asserting your error, not simply admitting it.
Negative Assertion is similar to fogging, but differs in that:
a)
You actually made the error or possess the fault (rather than a
possibility that it happened).
b)
You agree with your critic's value system that your act was
negative.
165
4.
NegativeInquiry
Purpose: A skill that teaches the acting prompting of criticism in order

to use the information (if helpful) or exhaust it (if manipulative) while
prompting your critic to be more assertive and less dependent on
manipulative ploys. Allows you more comfortably to seek out criticism
about yourself in close relationshipswhile prompting the other person
to express honest negative feelings and improve communication.
Notes:
a) Turn the spotlight on yourself, not on your critic. 'What is it about
me that is wrong'. If you focus on your critic, you will most likely get
a defensive reaction that will not facilitate communication.
b) Actively invite the criticism, both verbally and non-verbally. You will
elicit feelings from your critic more effectively if you convey the
message, '1am eager to hear this valuable information. I want to
know more'.
c) Specify the criticism. Listen closely to the words and help the critic
focus on exactly what is wrong.
'You say I am dressed untidily. What is it about the way lam
dressed that is untidy'?
'Well, your shoes, for one thing'
'What is it about my shoes that is untidy'?
'Well, just look at them. You have not cleaned them in a month'
'Then it is my shoes not being cleaned that makes me look untidy'
'Yes - that is one thing'
d) Exhaust the criticism
'15there anything else about my shoes that is wrong'? ar '15there
anything besides my shoes that makes me look untidy'? ar 'There
must be more things about me that are wrong than just my
clothing'? ar 'Are you sure there is nothing else that is wrong with
me'?
e) Analyse the criticism. 'What is it about... that is wrong'?

f) Listen for the '1'statement. Rememb!3rthat criticism comes from
other people's value systems. They are often unaware that their
subjective value systems are operating, but behind every piece of
criticism is a statement, '1do not like it'. Negative inquiry is
166
-Project Management Skllls

Managingself, Interactionsand AchievingResults
especially helpful in breaking through feelings. Only then can you
make agreements, compromises or conclusions that have a solid
basis.
g) Specify what the critic wants. You might make unwarranted
assumptions if you do not do this.
'It sounds like you want me to clear things with you before I submit
an 'Improvement Needed' evaluation'.
'Yes ...well, no. Go ahead and make the decision. Just be sure to
let me know as soon as possible. It is when I do not know that you
have done it that I have problems'.
5.
Free /nformation
Free information is any information - besides a 'yes' or 'no' answer-that

a person gives you about him/herself. It may or may not have anything
to do with the question you asked. Listen to the words and comment
on them.
If you ask questions that begin with What, When or How, the reply will
usually furnish you with more Free Information than questions that can
be answered 'yes' or 'no'. E.g., 'What are some things you like most
about your work'? will give you more Free Information than 'Do you like
your work'?
6.
Self-Disc/osure
Purpose: A skill that teaches the acceptance and initiation of

discussion of both the positive and negative aspects of your
personality, behaviour, lifestyle and intelligence to enhance social
communication and reduce manipulation. It allows you comfortably to
disclose aspects of yourself and you life that previously caused
feelings of ignorance, anxiety, or quilt.
Self-disclosure are '1'statements. They describe feelings going on
inside us at the moment. We take full responsibility for these feelings
and do not blame the others for them. Thus, 'You are making me very
angry' is not a self-disclosure, but '1am getting very angry with you' is.
167
Proj~tlaQ~etnenfSkllls
Managing self, Interactionsand Achieving Results
I enjoy being with you.
lam confused.
I do not know.
I really like what you
said.
I am annoyed.
Our relationship is very.....

important to me.
I would like to understand it better.
I do not know the answer to that.
I am feeling pressed right now.
I would like to think a minute before

answering you
I am not comfortable
168 .J
I-l
I
I
I
PASSIVEPERSON
ASSERTIVEPERSON
I
I AGGRESSIVE PERSON
o
iij'
(Q
iU
3
1;:
10)
I~,
(Q
Has rights violated; is taken

advantage of
Protects own rights and respects

the rights of others
Violates rights; takes advantage of

others
CII
"O
'~s.
a[
CI) "
1.,
'CI>
IJ
Does not achive goals
Achives goals without hurting

others
May achive goals at expense of

others
iU~~
-'o
gco
(fICD
O)!:J
::JeD
Q.::J
Feels frustrated, unhappy, hurt and

anxious
Feels good about self; has

appropriate confidence in self
Defensive. belligerent; humiliates

and deprecates others
....
o'"
::r~
iir=
~, ii'
::J
(Q
::o
Inhibited and withdrawn
Socially and emotionally

expressive
Explosive; unpredicatably hostile

and angry
Allows others to choose for

himlher
Choose for self
Intrudes on others' choices
, m
ffi)
!

Exercise: Asserting yourself

Learning areas : Social Skills: Emotional resilience: Proactivity
Activity
In the following questionnaire, you will tind 10 sets of three statements,
like this:
I'm a person who
(a) has my rights violated;

(b) protects my own rights;
(c) violates the rights of others.
The scoring is based on the notion that we aII behave in each of these
ways from time to time, although the extent to which we have a
tendency for (a), (b) or (c) will vary.
You are therefore asked to allocate points to each of (a), (b), and (c),
such that the total adds up to 10. Thus, if you think that you quite often
have your rights violated, and quite often protect the rights of others,
but rarely violate the rights of others, you might score yourself as a
person who:

On the other hand, if you recognise that you protect your own rights at
aII costs, even if this quite often involves violating the rights of others,
then your score might be that you are a person who:
4
10
170
--
Project.ManagernentSkllls
Managingself, Interactionsand Achieving Results
Note: This exercise is adapted from Dr. Margarison a professor of

Management Development at the MCB University, U.K.
This questionnaire is based on a model that suggests that
ASSERTION is the 'happy medium' between two equally undesirable
extremes - passivity and aggression. To see where you are; add up aII
your (a) scores (passivity), (b) scores (ASSERTION), and (c) scores
(aggression), and enter them in the diagram below.
I'm a person who;
1. (a) has my rights violated ;

2. (a) does not achieve my goals;

(b) achieves my goals without hurting other
people;
(c) achieves my goals at the expense of
other people.
10
3. (a) feels frustrated and unhappy;

(b) feels good about myself;
(c) is defensive and/or belligerent.
4. (a) is inhibited and withdrawn ;

(b) is socially and emotionally
expressive ;
(c) is explosive, hostile, angry.
10
5. (a) feels hurt, anxious ;

(b) is quietly self-confident;
(c) is brashly confident, boastful.
17f
6. (a) fails to achieve my goals;

(b) tries to tind ways so that I can achieve my goals
and others can achieve theirs;
(c) is not concerned about others and their goals.
10
7. (a) is gullible, easily taken in ;

(b) is open-minded and questioning;
(c) is suspicious, cynical.
8. (a) feels bad about my weaknesses;

(b) is aware of my weaknesses, but don't dislike
myself because of them;
(c) is unaware of my weaknesses.
10
9. (a) allows others to choose for me;

(b) chooses for myself;
(c) intrudes on other people's choices
10. (a) is taken advantage of;

(c) takes advantage of others.
172
Project Managem.ntSI(iUs
Managingself, Il1teractions1ndAChi~Ving
Results
j
I
This questionnaire is based on a model that suggests that

ASSERTION is the 'happy medium' between two equally undesirable
extremes - passivity and aggression. To see where you are; add up aII
your (a) scores (passivity), (b) scores (ASSERTION), and (c) scores
(aggression), and enter them in the diagram below.
(b)
ASSERTION
score O
(a)
PASSIVITY
(c)
AGRESSSION
score O
score O
This way of looking at assertion is very important. While it is easy to

distinguish it from the left extreme of passivity, it is quite often
mistaken and confused with the right extreme of aggression. In fact,
though, as the questionnaire statements show, they are very different.
Learning to be assertive requires a lot of practice. You have taken an
important step by getting an idea of your passive/assertive/aggressive
profile.
(Incidentally,
why not get others
to fiII it out for you
- to
give you
their picture of where your are?) The (b) behaviours give you an idea
of what to aim for if you want to become more assertive; these can
become the basis of your intentions for actions. Perhaps you can keep
a diary of how assertive you have been from time to time; do certain
situations or people tend to push you into passivity or aggression?
What is there about these? What can you do about them?
Incidentally, this 'happy medium' way of looking at things can be
applied to aII sorts of aspects of yourself. For example, are you lazy
and slothful? Or a narrow-minded workaholic, burning yourself out? Or
purposefully committed, balancing work and leisure
173
- -- --
ProjectMaoagement Skills
Managing
self,
Interactions and
-- -..-AchievingResults
- ---
PURPOSEFULL Y
COMMITTED
LAZY and SLOTHFUL
WORKAHOLlC,
BURNING OUT
Or again
BRAVE
COWARDL
FOOLHARDY,RECKLESS
No doubt you can thinkof some of these 'syntheses' as Roberto

Assagioli calls them whereby opposite negative qualities are
transformed into positive ones.
2.3
Achieving results
It can be said that there are three types of managers: those who make
things happen, those who watch things happening, and those who
don't know what is happening. Achieving results, getting things done,
making things happen. That is what management is aII about. Before
tinding out how to get into the tirst category, there are three questions
to answer:;
":'j
Is getting things done simply a matter ofp'ersonality characteristics like drive, decisiveness, leadership, ambition - which
some people have and others haven't?
And if you haven't got the drive, decisiveness and so forth which it
takes, is there anything you can do about it?
To what extent is an ability to make things happen a matter of using
techniqueswhichcan be learntanddeveloped?
174

Managing self, Interactions and AchiewingResults
Personality is important. Unless you have willpower and drive nothing
wiUget done. But remember that your personality is a function of both
nature and nurture.
We may not be able to change our personality but we can develop and
adap'tit by consciously learning from our own experience and by
observing and analysing other people's behaviour.
Techniques for achieving results, such as planning, organizing,
delegating, communicating, motivating and controlling, can be learnt.
These are dealt with later in this book. But these techniques ace only
as effective as the person who uses them. They must be applied in the
right way and in the right circumstances. And you stil! have to use your
experience to select the right technique and your personality to make it
work.
To become a person who makes things happen you therefore have to
develop skills and capacities by a process of understanding,
observation, analysis and learning. The four actions you should take
are:
Understand what makes achievers tick - the personality

cnaracteristics they display in getting things done.
. Observe what achievers do - how they operate, what techniques

they use.
Analyse your own behaviour (behaviour, not personality), compare

it with that of high achievers, and think how to improve your
effectiveness.
Learn as much as you can about the management techniques

available.
What makes achievers tick?

David McClelland (34) of Harvard University carried out extensive
research into what motivates managers. He interviewed, observed and
analysed numbers of managers at their place of work and recorded
findings before producing his theory. And before you dismiss anything
which comes under the heading of theory, remember what Douglas
McGregor (36) of the Massachusetts Institute of Technology, said:
'There is nothing so practical as a good theory'
175
ProjectManag~mentSkllls
Managing self, Ihteractionsand AchievingResults
Professor McCleliand identitied three needs which he believes are key

factors motivating managers. These are:
.
.
.
The need forachievement

The need for power (having controland influenceover people)
The need for affiliation(ta be accepted by others).
AIIeffective managers have these needs ta a certain degree, but by

far the most important one is achievement.
Achievement is what counts and achievers, according ta McClelland,

have these characteristics:
They set themselves realistic but achievable goals with some

'stretch' built in.
They prefer situations, which they themselves can influence rather

than those an which chance has a large influence.
They are more concerned with knowing they have dane well than
with the rewards that success brings.
They get their rewards from their accomplishment rather than from
money ar praise. This does not mean that high achievers reject
money, which does in fact motivate them as long as it is seen as a
realistic measure of their performance.
High achievers are most effective in situations where they are

allowed ta get ahead by their own efforts.
What do achievers do?

High achievers do some, if not aII, of these things:
.
.
Theydetineta themselvespreciselywhattheywantta do.
.
.
They convey clearly what they want dane and by when.
They are single-minded about getting where they want ta go,

showing perseverance and determination in the face of adversity.
They set demanding but not unattainable time-scales in which ta do

it.
Theyare preparedta discusshowthingsshouldbe daneandwill

listen ta and take advice. But once the course of action has been
agreed they stick ta it unless events dictate a change of direction.
176-- .1
""
..., -

Managing self, IfJteractions and Achieving Results
They demand high performance from themselves and are

somewhat callous in expecting equally high performance from
everyone else.
Tl)ey work hard and work well under pressure; in fact, it brings out
the best in them.
.
.
They tend to be dissatisfied with the status quo.
.
.
They are never completely satisfied with their own performance

and continually question themselves.
They will take calculated risks.
They snap out of setbacks without being personally shattered and
quickly regroup their forces and their ideas.
They are enthusiastic about the task and convey their enthusiasm
to others.
They are decisive in the sense that they are able quickly to sum up
situations, define alternative courses of action, determine the
preferred course, and convey to their subordinates what needs to
be done.
They continually monitor their own and their subordinates'

performance so that any deviation can be corrected in good time.
How to analyse your own behaviour

It is no good trying to analyse your own behaviour unless you have
criteria against which you can measure your performance. You have to
set standards for yourself, and if you don't meet them, ask yourself
why. The answer should tell you what to do next time.
The basic questions you should ask yourself are:
What did I set out to do?
Did I get it done?
.
.
If I did, why and how did I succeed?

If not, why not?
The aim is to make effective use of your experience.

Use the list of things that high achievers do to check your own
behaviour and actions. If your performance has not been up to scratch
under any of these headings, ask yourself specifically what went
wrong and decide how you are going to overcome this difficulty next
time. This is not always easy. It is hard to admit to yourself, for
177

Managingself, Interactions and AchievingResults
example, that you have not been sufficiently enthusiastic. It may be
even harder to decide what to do about it. You don't want to enthuse
aII over the place, indiscriminately. Sut you can consider whether there
are better ways of displaying and conveying your enthusiasm to others
in order to carry them with you.
2.4
Negotiation
Negotiation is considered the art of creating agreement instead of
potential disagreement. Any formal or informal discussion and any
interaction with someone in which we want to get an agreement on
your point is a negotiation. Take for instance some simple example:
.
.
a man wants to get a more important job;
a salesman wants to sell his product;
an employee wants a raise etc.
a woman wants to open her own business;
Considering the image below, 'A' may want as much as possible from
'C', while 'S' wants as much as possible from the same C.
Negotiation means to find the way to get the most satisfactory result
for both 'A' and 'S'. Usually each of the two parties may want to win less important may be whether the other party may Iose or win.
Potential result of a negotiation could therefore be:
.
.
A win / Iose situation or

A win / win situation.
Most of the negotiators are seeking for a win / Iose situation as being
safer - while in fact only their "win" should be important for them and
very rare should they be particularly interested in the other's party
1055.
Specialists recommend that the win / win approach is the most

appropriate in aII situations and has the important benefit of either
create or maintain a long-term relation.
Managingself, Interactions and Achi.evingResults
How many chances may be to get the desired agreement? Let's look
at the following two situations, where figures may represent prices, or
salary levels.:
REQUEST
15
TARGET
12
MINIMUM 10
Free Place from
Negotiation
9
Negotiation
scale
MAXIMUM
TARGET
OFFER
Reduced chances for a deal
REQUEST 15
TARGET
12
Room for
12
MAXIMUM
MINIMUM 10
Negotiation
10
TARGET
OFFER
INegotiation
scale
I
Reasonable chances for a

deal
As you may see only the second situation may lead to an agreement.
Apart from such 'pre-set' situations, a thorough preparation betore
negotiation is helptul in getting the desired agreement and getting a
relation as well.
f
L
179
______
,...,..<III<
_<
~.
".....
Project Management SkllIs
Managing
~.,-- self,
-- Interactions
---
and Achieving Results
Some importantelements of negotiation should be considered:
. informationexchange
. e.g.seller'smarketor buyer's
Communication
Context
market
. focusedactionsto achievea goal

,
. co - operation - win / win
. confrontation - win / Iose
Purpose
Relation type
In preparing for negotiation you should consider the relation you may
have with your partner. That person may be an 'extrovert' one, who
usually "prefers sorting things out in contact with other people, while
an 'introvert' might be more inclined to analyse problems alone,
drawing on his own resources".
Elaborate a strategy based on a thorough preparation and think at
.
.
The arguments you have;
Coltect available information;
.
.
.
Allocated roles for each negotiator;
What do you think are other's arguments - "spy" the other part;
Plan the strategy - what techniques are you going to use;

Remember that techniques are the same for different tactics and
priorities.
Very important is to have a clear objective for the negotiation: To be

efear what yau want I
As part of your preparation some other 'technical' issues should be
considered as well. For instance you should assess in advance what
are your strengths in the discussion and what are your partner's
strengths - who seems therefore to have the power.
Try to be realistic in your demands and expectations when setting the
maximum/minimum, the target and the offer. Try to predict as well how
many bargains will be and how many you can afford. Previous
agreements with others (in the same activity or elsewhere) may give
you an idea.
180
Project ManagementiSkllIs
...---
Considering a formal negotiation process, there may be identified

thre\3stages and some points to be considered for each of them:
1. The opening session - you'should start by being realistic, present
your point but also explore the other's point. Ask questions, listen
and very important is to show that you are listening and
understanding your partner's point. If you show understanding you
can be better understood - and this is the start of 'the relation'.
Check as frequent as possible if the others understand you as well.
Try to face difficulties but do not jeopardise or destroy the relation.
Do not show to be too interested and do not make any initial
concessions.
2. Bargaining session - try to reduce the difference between
demand and offer, leading the discussion towards an agreement.
Make conditional proposals to help the bargaining but do not give
up anything without asking something in exchange. Sometime is
better to negotiatea whole package of conditions.
Control your emotions. Please consider that you are negotiating
with 'people' not with 'organisations/institutions'
they have
feelings, biases and emotions as well. You may take an advantage

from this but do not hurt their feelings and avoid anything that may
affect the quality your relation.
Be flexible in approaching various points in discussion but keep it
clear and avoid spontaneous counter-proposals.
3. Closing session - try to assess the proposals that have been
made and how much opposition is still there. The main purpose of
the closing meeting is to get the agreement. You maybe forced to
give up some conditions, to make some pressure to keep the
others. You also could offer alternative that may satisfy both parties
and help closing the deal. Making a summary of aII arguments and
potential alternatives is sometime needed to focus towards the
agreement.
A structured approach of the 'soft' style versus 'hard' one and some
basic principles to be considered for reaching a good deal and a
good relation in the same time, are presented in the table below.
181
---....
Managing self, Interaction~and AchievinQResults
- ..."""
--
Table: Don't bargain Over Positions

PROBLEM
Positional Baragining: Which Game
Should You Play?
SOLUTION
Change the NameNegotiate on the Merits
HARD
PRINCIPLED
Participants
are friends.
The goal is
agreement.
Participants are
adversaries.
The goal is victory
Participants are problemsolvers
Make
concessions to
cultivate
relationship
Be soft on the
people and the
problem.
Trust others
Demand
concessions as a
conditions of a
relationship
Be hard on the
problem and the
people.
Distrust others.
ChQngeyour
position easily.
Make offers.
Disclose your
bottom line.
Accept onesided losses to
reach
agreement.
Search for the
single answer:
the one they
will accept.
Insist on
agreement.
Try to avoid a
contest of will
Focus on interests, not

Dig in to your
positions.
position.
Makethreats.
Explore interests.
Mislead as to
Avoid having a bottom
line.
your bottom line.
Demand oneInvent options for
sided gains as the mutual gain.
price of
Develop multiple options
agreement.
Search for the
to choose from; decide
single answer: the later.
one you will
Insist on objective
accept.
criteria.
Insist on your
Try to reach a result
position.
based on standards
Try to win a
contest of will
independent of will.
Reason and be open to
reasons; yield to principle,
not pressure
SOFT
182
The goal is a wise

outcome reached
efficiently and amicably.
Separate the people
from the people
Be soft on the people,

hard on the problem.
Proceed independent of
trust.
"""'!.,
ProjectManagement.Skills
~--
2.5
Qualities of successful Managers

Research identifies eleven attributes which were found ta be
possessed by successful managers. These qualities, abilities and
attributes provide the basis for self development.
1. Command of the basic facts

2. Relevant professional knowledge
3. Continuing sensitivity ta events
4. Analytical, problem solving, decision making,judgmental skills
5. Social skills and abilities
6. Emotional resilience
7. Proactivity -Inclination to respond purposefully to events
8. Creativity
9. Mental agility
10.Balanced leaming habits and skills
11.Self knowledge
2.5.1
Learning
There are a number of management techniques that you need to know

about. These techniques are discussed in subsequent chapters in this
book. The ones you should be particularly interested in are:
.
.
.
.
.
.
.
.
.
Planning
Objective and target setting
Decision-making
Delegating
Communicating
Motivating
Leadership
Co-ordinating
Controlling
183

Managingself, Interactions
and AchievingResults
- ""--To summarise the above, it must be noted that this process of
observation, analysis and learning will help you to become an
achiever. But remember, achieving results is ultimately about making
promises - to others and to yourself - and keeping them. Robert
Townsend has some excellent advice: 'Promises: keep. If asked when
you can deliver something ask for time to think. Build in a margin of
safety. Name a date. Then deliver earlier than you promised.'
In order to manage yaurselfwark and be an achiever you need
to manage your time.
2.5.2
How ta Manage your Time
To do their job effectively, managers need to caII upon three major

resources. AII of which should be at their disposal:
.
.
.
their own skill and experience

the goodwill and trust of their staff
time.
Of these resources, it can be said that time is the one which is

generally the least considered and worst managed.
Many managers complain that they do not have sufficient time. This
may De because they have too much to do. It may be because their
job is a highly fragmented one, so that they have few opportunities to
catch up with the tasks that require more thought. Or it may be
because they do not organise their work properly.
One of the main aims of examining how you use your time is to enable
you to gain periods of discretionary time during which you can do the
things that are important to you. Too often we spend our time doing
things that are of importance to others. We can also build up chunks of
time to enable us to work on tasks that need some thought and
concentrated effort. For example, writing reports, analysing statistics.
developing a plan, etc. Studies have revealed that many managers
and supervisors have very little discretionary time - although they still
need to carry out jobs which demand such blocks of time. There is
obviously plenty of scope for improvement!
184

Managing self, Interactions and Ach[eving Results
Managers seeking to use their time more eftectively need to ask

themselves questions such as:
Am I doing things that really don't have to be done at aII - by me or

anyone else?
.
Am I doing things that could be handled just as well by someone

else?
What do other people do to waste my time? What do I do that

wastes their time?
Exercise 1:
Personal Time Usage
Complete the personal time usage chart (attached). Se as honest and
accurate in your evaluation as possible.
Activities:
1. In column (i) of the chart, list the main responsibilities of your
current job as determined by your organisation.
2. Aiso in column (i), list any other activities in which you are involved
during your normal working week (include both work and non-work
related activities as appropriate).
3. In the box at the base of column (ii) enter the number of hours you
normally spend at work in a week.
Take a few minutes to consider the following questions:
Look at your time usage chart. How do you feel about what you
see?
. Do you spend the "right" amount of your time at work doing the
"right things"?
Can you see ways in which you can improve use of time at work?
Se as specific as you can in identifying areas for improvement.
Note: It must be remembered that it is your time you are considering.

Only you can really decide how to improve your usage of this critical
resource, the management of which determines to a large extent your
own effectiveness and that of your staff.
185

Managingself,Interactions
andAchievingResults
--...
Personal Time Usage
Chart
Column(i)
Column(ii)
Primary job responsibi1ities
Otheractivitiescarriedoutat
work
Total hours
lin working
week
I
I
,
I
hours
I
Exercise 2:
Improving your Time Usage
In order to improve your time usage, you must consider the following
questions:
What are the major time-related problems?

How problematic are these time-related issues?
How can you turn these problems into opportunities?
What would be the consequence of improving your time usage?

Time usage questions provide a means for working towards this goal.
186
f
Activities:
1. Complete the attached questionnaire. Make sure you answer aII the
items.
2. From your completed questionnaire, identify and list the items that
you marked as "strongly agree".
3. Consider each problem area carefully.

4. Place the "strongly agree" items in order of priority for you to deal
with.
5. Now, either by yourself or with the help of a colleague, try to
answer the following questions as realistically as possible:What do you need to do to help solve the problem?
What do others need to do?
6. Now you are in a position to decide on a strategy to improve your

time.
187
'Project Management Skills

2.5.3
Improving Time Usage
Section A
Individually, complete the following questionnaire, making sure that
you answer aII of the items.
Place a tick (V) in the appropriate column for each item.

Strongly
agree
ITEM
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Other people always

seem to come to me for
advice.
My work tends to pile
up.
I never seem to have
time to myself.
I spend too much time
in meetings.
I always seem to be
trying to do too many
things at the same time
I tend to put off
unpleasent jobs.
I tend to Iose or
misplay papers,
memos, etc.
I never have time to
think.
The telefone never
seems to stop ringing
I'm always writing
letters, memos and
reports.
I spend too much time
travelling from place to
place.
I have to start and stop
jobs frenquently
i tind it difficult to say
'No' to other people's
requests.
I have too much
paperwork to deal with.
188
Slightly
agree
Slightly
disagree
Strongly
disagree
Information, Communication, Meetings andPresentation Skills
3.
Information,.Communication, Meetings and Presentation Skills
.
.
.
.
.
.
.
Definitions about what is communication

Guideline tp for a better communication
The importance of listening
Checklist for more efficient and effective meetings
Basics for a successful presentation
An exercise to train the capability to evaluate
presentations
A case study on effective communication with
possible solutions and guidelines
189

Information,Communication,Meetingsand PresentationSkills
There are many examples of communication failure which have

resulted in inefficiency, ineffectiveness and inability to achieve both
personal and organisational goals. Mintzberg's (1973) analysis shows
that communication is one of the most important activities a manager
undertakes. A manager must communicate with his superiors, his
subordinates and most important of aII his or her clients or customers.
For instance, the failure of the salesman to communicate important
changes to the production manager and design department willlead to
the production of products or commodities which will and not meet the
needs and demands of the clients, which will result in wastage, loss of
market position and loss of revenue for the organisation involved.
Similarly, a project manager who cannot precisely, coherently and
effectively communicate the objectives of the project to those in
charge of its implementation, regardless of the nature of the project,
cannot expect effective implementation of the project, on time and
within the specified budget.
3.1
What is communication?
Some Definitions
There are many ways in which to define communication in the context

of a project or organisation as the whole. In tact, a definition reflects
not only one's point of view, but more specifically, the perspective,
classical, human relations or open system, to which a manager
prescribes (see Chapter One)
If communication is viewed in its mechanical context, it could be seen
as "the transmission of information from a source to a recipient". Such
definitions place emphasis on the 'transmission' as the most important
function, whereas ' a source may transmit a message to a receiver
with a conscious intent to affect the latter's behaviour'. In most
managerial situations, especially in the context of executing
development projects, a manager is expected to alter, modify, guide
and even attempt to change the behaviour and attitudes of those with
whom he works, in order to place the projects activities in the right
path, thus achieve the expected results. Peters and Robert (1977)
argued that it the intention is to enhance the achievement of the
organisational goals, such an endeavour results in "acting
effectively"
It is important to remember that managers who subscribe to traditional

values, may use communication as a means of 'defending or
strengthening the ego.' and it is not surprising to observe that in
organisations where tension, conflict, ambiguity and a lack of
190
Information,Communication,Meetingsand"Presentation
Skills
motivation and effective leadership is dominant, managers often use
communication as a 'mechanism by which power is exerted.
The most effective way of understandingcommunication and its roles
and potential problems is through the 'System Approach Model of
Communication'. Smith et al (1987) suggests that in any
communication situation, managers are involved in two way process
which during its different stages a decision has to be made. These
stages are as follows:
1. A decision has to be made whether or not the information should be

communicated to others or kept away from them. Managerial styles
and attitudes play agreat role in this stage of communication.
Classical and traditional managers believe insecracy and holding
information as a source of power (see barrier to information below),
whereas the open system managers believe in communicating
information as widely and as frequently as possible. This stage also
includes what kind of information needs to be communicated or not
and why.
2. Once a decision has been made, that information can be
communicated to others. Another decision then has to be taken
what kind of coding needs to be used? AII messages are coded in
one form or another. For example, the use of language,
terminology and technical jargon, aIItend to code a message. An
effective manager will communicate in a simple, coherent and easy
to use method. The use of specialist managerialjargon with which
employees are not tends to misguide and confuse peaple. 'Clarity
is the key to the process'.
3. The caded message has to be communicated via communication
channels. These cauld vary from formal channels such as written
to informal and interpersonal forms. Communicating by memos,
instructions, reports, fax, telephones of person ta person are aII
options open to managers. The important issue is to consider which
method is the most effective way for communicating what kind of
information and to whom.
4. Reception and Decoding will provide the show whether or not the
choices which were made were the correct ones. If the
communicatian is received and it cannot be decoded, therefare
failure follows. The chances are that there will be
misunderstanding on the part of the receiver. In the context of a
project, it is vital nat to presume that others are as familiar with
codes, jargon and terminology as you are. If managers have to use
certain 'terms', explanation should also be provided ta ensure that
191
.
Information, Communication, Meetings and Presentation Skills
communication does not fail and that the receiver understands the
true 'intention' of the 'sender' involved.
5. Action is the end result of any communication. The information,
which does not lead to some form of action on the part of the
receiver, has surely been badly processed and ineffectively
managed. The expectation that the receivers, subordinates, clients
and other managers should take action accordingly may be
unrealistic. It is always advisable for a manager to specify what
kind of action he or she expects to be taken by the receiver.
Therefore, the question to be asked is: Does the receiver know
what is expected from him or her?
6. Most writers on management regard the communication process as
complete once the desired action has been taken. Analoui (1993)
argues that only when feedback has been received can a manager
be sure that he or she has been correctly understood. The
feedback mechanism provides both an assurance to the sender
that communication has worked the way it was intended to and also
provides him with the opportunity to learn about the mechanism
employed, the reliability of different stages of the process and the
state of the receiver involved.
7. Formal communication. In a perfect world the managers and
chief executives will send information downwards to the operative,
employees or other personnel responsible for its implementation.
But, this is not always the case. Information needs to be
communicated both upwards and dawnwards simply because
without feedback, comments and suggestions managers and policy
makers continue to make decisions and develop an elaborate
corporate strategy without realising the problems involved and/ar
whether or not their decisions can be realistically implemented.
8. Informal communication. The followers of Human Relations and
the System Approach insist that informal communication is vital to
the well being of the community of the organisation as well as for
the effective execution of its day to day activities. Informal
communication most often occurs through informal channels, such
as conversation, telephone caIls or e-mai! and enables the
manager give and to obtain information from people who in a
formal sense have no obligation to him. An important aspect of
these informal channels is the 'lateral communication' between
managers and colleagues or managers and similar ranks or
positions.
192
Project Management Skll.ls

3.2
Creating the Right Channel for Communication
Managers can create a defensive or supportive climate in which

communication can take place in their units, projects or organisations.
This is largely determined by the style and attitude of the managers
involved. Managers who rely solely on authority, use of force and
th,reats create a 'defensive' or 'aggressive' climate, whereas the
managers, who facilitate communication by removing threats and
judgement on others, promote a 'supportive' climate. The
characteristics of both are provided below:
Table: Creating the Right Channel for Communication
Defensive Climate
Supportive Climate
People feel that their

communication and
behaviour is evaluated
and judged in a punitive,
personal or 'good/bad
manner
1.
People feel that their

communication and
behaviour is responded to
factually and at face value
2.
People feel that the intent

of most communication is
to controlor influence
their behaviour
2.
People feel that the intent

of most communication is
to solve problems
3.
People feel that there are

hidden motives behind
most communication
3.
People feel that most

communication is straight
forward and genuine
4.
People don't feel that

others are concerned for
their welfare or that they
are valued
4.
People feel that they are

respected and valued
5.
People assume that there

is only one right way of
doing things
5.
People listen to the ideas

of others and are
prepared to experiment
Professor Charles Handy argues that in order for organisations to work

effectively, it is not sufficient to have well developed information which
193

is well communicated. Indeed, there is one generallaw of

communication which applies to most situations:
"We never communicate as effectively as we think we do"
This is largely due to the presence of the following factors which act as
barriers to effective communication. These are:
3.3
Barriers to effective Communication
a) Perceptual bias by the receiver. We only hear or perceive what we

are ready to hear or receive. Unwelcome news can get filtered out
or distorted.
b) Omission ordistortion by the sender. For various reasons, the
sender will contaminate or leave out items in the message.
Individuals with career ambitions systematically withheld
information potentially threatening to their position. Less ambitious
people contaminated significantly less.
c) Lack of trust. If we do not trust someone, we are careful to screen
the information. When an individuallacks trust in the recipient, he
or she tends to conceal his own attitude, the result being evasive,
compliant or aggressive communications.
d) Non-verbal obliterates the verbal. The emotional overtones of a
communication may distort the reception of the data.
e) Over/oad. Too much information in a channel faces the recipient
with a screening query, or stereotyping problem. Overload results
in more or less self perpetuating conditions of communication
confusion.
f) Information secretion. The use c;>fposition power to garner and
secrete information instead of sharing it. A study of executives
showed that individuals who told the news to more than one person
amounted to less than 10 per cent of the sixty-seven executives in
each case.
g) Distance. The further away one is, the less communicates. An
inverse relationship has been found between the physical distance
separating persons and the likelihood of communication between
them.
h) Relative status. Individualswith low perceived status have difficulty
in initiating communications in groups or with those of superior
status. Just as he who talks more in a group has more influence, he
194
1.

Information,Communication,MeetingsandPresentationSkills
who has more influence can talk more.
i) /mmediacy. The more immediate communication drives out the
less. Thus, telephone calls can interrupt discussions which in turn
displace written communications.
j)
Tactic of conflict. Information withholding or distortion is a common

tactic in organisational conflict
k) Lack of c/arity. Last but not least. What is obvious to the sender is
obscure to the recipient. Sensible compression to one is jargon to
the other. Circomlocution, woolly sentence construction, imprecise
definitions, can aII so easily lead to misunderstandings.
Positive steps that can be taken in addition to removing any causes of

blockage:
1. Use more than one communications
net. There are various 'nets'
hierarchical, expert, group, status group, friendship group. Most

formal communications go through one or the other of the first two.
Use of the informal nets to prepare the ground or underline the
formal, substantially improved retention levels.
2. Encourage two-way rather than one-way communication. In twoway communication, the recipient is encouraged to intervene in the
message to get clarification or to ask questions. Experiments show
that two-way communication takes much longer but substantially
improves comprehension and retention, particularly if occasions are
created to check the degree of understanding.
3. Keep the linkages in communication chain as few as possible. The
more people in the chain, the more possibilities of distortion. If the
list of positive steps is much shorter than the list of possible causes
of breakdown, this is because the most eftective way to improve'
communication systems is to remove the negative factor.
Communications are symptoms. Good communications imply a
well-designed healthy organisation.
(Adopted from Understanding
195
Organisations
by Handy-Charles
1985)
,
Table:
Communication Styles (Description of their main

characteristics)
ures
Content
Process
People who talk about:

. Results
. Responsibility
. Feedback
.Objectives
. Performance
. Experience
. Challenges
. Productivity
. Achievements
. Efficiency
. Moving ahead
. Change
. Decisions
They are:
. Pragmatic
(down to earth)
. Direct (to the
point)
.Impatient
. Decisive
Quick Uump
from one idea
to another)
. Energetic
(challenge
others)

. Trying out
.Analysis
.Observations
.
Proof
.Organising
.
Details
. Controlling
. Testing
They are:
. Systematic
(step-by step)
. Logical (cause
and effect)
. Factual
. Verbose
. Unemotional
. Cautious
. Patient
Styles
Action
Process
. Facts
. Procedures
. Planning
197

3.4
Communication Styles
Do people communicate in the same style: The answer is 'no'. Like

managerial styles, the ways people use to communicate are influenced
by their value system and beliefs and thoughts which have been
acquired over a long time. Peter Casse in his writings "Cultural Mind"
explains how by paying attention to what people say, that is the words
that they use to explain themselves, it is possible to detect their styles
of communication. Of course, like-minded individuals tend to use
similar styles for relating to others. These are Action; Process; People
and Idea Styles.
The 'content' of the communication is also an indication of the
'process' involved.
These are set out below. Which of the following styles do you identify
with the most?
196
Continuation of the table
People

. Self. People
.Needs
development
. Motivations
. Sensitivity
. Awareness
. Teamwork
. Communications . Co-operation
. Beliefs
. Feelings
. Values
. Team Spirit
. Understandings . Expectations
. Relations
They are:
. Spontaneous
. Empathetic
. Warm
. Subjective
. Emotional
. Perceptive
! Sensitive
Idea
They are:
. What's new in
. Concepts
.Innovation
. Creativity
.Opportunities
. Possibilities
. Grand Designs
.Issues
the field
.Interdependence
. New ways
. New methods
.Improving
. Problems
. Potential
. Altematives
.Imaginative
. Charismatic
. Difficult to
understand
. Ego-centered
. Unrealistic
. Creative
. Full of Ideas
. Provocative
Adapted from: Casse, P. "Gross cultural Minds", EDI, Sietar (1981)
3.5
Listening Skills
There are many good writers and speakers but few good listeners.
Most of us filter the spoken words addressed to us so that we absorb
only some of them - frequently those we want to hear. Listening is an
art which not many people cultivate. But it is a very necessary one,
because a good listener will gather more information and achieve
better rapport with the other person. And both these effects of good
listening are essential to good communications.
I
I
l
I
198
I
1

Information, Communication, Meetings and,Presentation
Skills
Why people don't listen effectively
People don't listen effectively because they are:
.
.
.
Unable to concentrate, for whatever reason

Too preoccupied with thems~lves
Over-concerned with what they are going to say next
. Uncertain about what they are listening to or why they are listening
to it
.
.
Unable to follow the points ar arguments made by the speaker

Simply not interested in what is being said.
Effective listeners:
Concentrate on the speaker, following not only words but also body
language which, through the use of eyes or gestures, often
underlines meaning and gives life to the message
. Respond quickly to points made by the speaker, if only in the

shape of encouraging grunts
Ask questions frequently ta elucidate meaning and to give the

speaker an opportunity to rephrase or underline a point
. Comment on the points made by the speaker, without interrupting

the flow, in order ta test understanding and demonstrate that the
speaker and listener are still on the same wavelength. These
comments may reflect back or summarise something the speaker
has said, thus giving an opportunity for him to reconsider ar
elucidate the point made
Make notes on the key points - even if the notes are not referred to
later they will help to concentrate the mind
Are continuously evaluating the messages being delivered to check

that they are understood and relevant ta the purpose of the
meeting
. Are alert at aII times to the nuances of what the speaker is saying
Do not slump in their chairs - they lean forward, show interest and
maintain contact through their oral responses and by means of
bodylanguage
Are prepared to let the speaker go on with the minimum of

interruption.
199

levels of Active Listening
It has been argued by psychologists and communication specialists

that effective listening occurs at three levels. It is important that
attention is paid to aII these levels.
3.6
Words:
Words derive from the intellectual side of the individual

and can create understanding. However, they only
account for 20-30% of effective communication.
Feelings:
Feelings are fuelled by emotions of the individual who

wishes to communicate his or her intention. Feelings
that tend ta "make contact" which is vital for ensuring
"cammitment" and the establishment of 16ngterm
relationships.
Actions:
Actions are bodily behaviours and movements which

make an impact an the listeners. Such an impact often
takes place at a sub-conscious level. However,
attentian paid ta them can reveal the int~ntions of the
speaker.
Active:
Listening requires attention being paid ta wards,

feelings and the body. It is said that more than 65% of
information is conveyed through channels such as
feelings and emotions.
How to manage meetings effectively
Most managers feel that the time spent in a meeting could be spent
doing rather than talking about it. Handy said that meetings provide an
important basis for the generation of ideas, implementation and taking
important decisions.
As a manager your role in meetings will vary depending an wha has
arganised the meetings, the subject of discussion and its urgency.
Hawever, whether you have called the meeting or are participating in
others meetings, it is essential that you do not allow valuable time to
be wasted by making sure that:
.
.
the purpose of the meeting is made clear beforehand

participants come to the meeting prepared
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Information , Communication,
Meetings and Presentation
Skills
the agenda and budget for each item are not seen as a movable
feast
contributions are limited to those which are useful and relevant
attendance is restricted to people affected by issues being

-discussed
aII relevant information is at hand
.
.
the objectives of the meeting are seen to be achieved

appropriate decisions are made and actions initiated
How to make meetings work
The following guidelines ought to be adopted by you as an 'organiser'

of and as a 'participant' of a meeting.
As an organiser
Before the meeting

1. Decide whether the meeting is necessary.
Could the objectives be achieved more effectively through

another process?
2. Establish the purpose of the meeting.
Emphasis on quality of life and employee involvement; pluralism

of interest & common goal actions need to be initiated?
3. Prepare an agenda.
.
.
.
Include only those items relevant to the purpose of the meeting.

Prioritise items in order of importance.
Group together related items.
. Indicate time allowed for each item.

4. Collect aII available information relevant to agenda items. If lengthy,
summarise into briefing notes outlining salient points.
5. Circulate agenda and supporting documentation well in advance of
meeting.
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Information,Communication,Meetingsand PresentationSkills
6. Restrict attendance to those people affected by the issues to be
discussed.
7. Just before the meeting check for new information which, if to be
presented to the meeting, should be simplified and summarised.
During the meeting

1. State the purpose of the meeting.
2. Check attendance and make a note of those pr~sent.
3. Set the scene for each new item on the agenda and then open
discussion by inviting specific contributions from m~mbers.
4. Let everyone who has a pertinent contribution have his say.
5. Control the discussion. Don't be afraid to bring it into line if it starts
to drift into excessive detail or irrelevance.
6. If a discussion becomes complex and a wide variety of views are
being expressed, summarise.to review your own understanding
and that of others.
7. Stick to the time budget.
8. At the end of each item's discussion summarise any decisions
made and conclusions reached.
9. Summarise what has been achieved at the end of the meeting. If
further action is required specify who is to do what, and agree a
deadline.
10. Agree the purpose and date of the next meeting.
After after the meeting

1. Circulate minutes to those who attended and those who did not
attend the meeting. Minutes should be an accurate record of the
proceedings.
2. Decisions made during the meeting should be highlighted with the
names of people responsible for action and the time scale shown
clearly against each decision. State the date and time of the next
meeting.
1. Monitor and review the progress of action arising from the meeting.
--~

Information,Communication,MeetingsandPresentationSkills
As a participant
Before the Meeting
1. ~ead the agenda and briefing papers. Make sure you understand
the purpose of the meeting and pay particular attention to those
items on the agenda which directly affect you.
2. Think through the issues likely to be raised and plan your
contribution.
3. Take aII relevant information into the meeting.
During the meeting

1. Don't be afraid to stay quiet and listen. Only speak when you are
called upon or when you are seeking clarification or when you feel
you have a useful contribution to make.
2. Make a note of any decisions made and any further action required,
particularly from you.
After the meeting

1. Read the minutes, paying special attention to those items, which
require action from you.
2. Produce an action plan specifying what you need to do and the
time scale. Monitor your own performance against the action plan
How effective was that meeting?
After a meeting, whether it has been organised by you or one in which

you only participated, it would be beneficial to answer the following
questions and incorporate them into any further meetings. These are:
Questions
1. What was the purpose of the meeting?
2. What factors made the meeting effective/ineffective?
203

3. What contribution did you or others make towards the meetings

effectiveness?
Mine:
Others:
4. What were the main outcomes of the meeting (if any)?
3.7
Effective Communications
Getting the message across

The influence you exert as a manager depends largely on your ability
to communicate and project yourself and your ideas to other people.
Effective communication involves getting messages across to
individuals and groups, informatively and persuasively, using both the
written and the spoken word.
The prospect of speaking in public and addressing a large and
perhaps unfamiliar group can create feelings of apprehension and
even fear in the minds of many people. Thoughts of what might go
wrong, memory lapse, 'drying up', losing the interest and attention of
the audience, questions you can't answer, can undermine confidence
and even help to bring about the very situations you want at aII costs
to avoid.
Some people appear to have a particular talent for speaking in public.
They are able to communicate facts and ideas in a confident,
interesting and persuasive manner. Public speaking, however, is as
much a skill as other methods of formal business communication such
as writing letters and reports. By applying a few basic techniques you
can develop an approach which will increase your confidence and
enhance the effectiveness of your presentations.
204

Information, Communication, Meetings aner Presentation Skills
There are four questions you must ask when preparing and planning
oral presentations. The answers to these qUt3stionswill guide you
towards making presentationswhich achieve the outcomes you are
seeking.
WHY ARE YOU SAYING IT?
- the purpose
TO WHOM ARE YOU SAYING IT?
- the audience
WHAT ARE YOU GOING TO SAY?
- the content
HOW ARE YOU GOING TO SAY IT?
- the form
The purpose
The types of oral presentCitionwhich managers are required to give in
organisations generally fit inta three categories. Each category defines
the main purpose of the presentation:
1. To communicate information - the content is predominantly factual
and the presentation may take the form of a briefing to a group of
subordinates or other managers.
2. To make a proposition - the content is ideas supported by reasoned
argument and personal judgement designed to persuade and win
the support of the audience.
3. To inspire and motivate - the content, whether it be ideas or facts,
should reflect and reinforce the feelings of the audience and
generate enthusiasm, boost morale, and encourage positive
attitudes.
Each of these types of presentation places different demands on the

speaker and is intended to produce a different response from the
audience. It is, therefore, important to establish the purpose of the
presentation if you are to achieve the results which you and your
audience desire.
The audience
Before deciding what you are going to say and how you are going to
say it you must discover as much as you can about your audience.
Considerations such as the size and characteristics of the audience
and their knowledge of the subject should determine the content,
language, structure and tone of the presentation. Ask the following
questions:
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Information,Communication, Meetings and Presentation Skills
How large is the audience?
Size will influence the degree of formality and audience involvement
you can expect or reasonably encourage. If you are addressing a
small group of say fewer than ten people, you can often adopt more of
a conversational approach and may even welcome interventions from
the audience. As group size increases there is a greater need for
formality with few, if any opportunities for audience involvement
except, perhaps, at the end of the presentation.
How much do they know about the subject of the presentation?

Your audience's knowledge and understanding of the subject should
determine the level at which you pitch the presentation. You will
quickly Iose the atlention and interest of your audience if you talk
above or below their heads. The language you use and the number
and complexity of facts and ideas you include in your presentation
must be appropriate to the knowledge and understanding held by the
audience. If in doubt, talk to someone who will be in the audience or
whose interests and knowledge are similar to those of the audience.
You may be required to address an audience with varied backgrounds
and different levels of knowledge in which case you should aim for the
middle ground.
Who are the audience?
Establish the significant characteristics of the audience, for example,
the members' position and role in the organisation. Identify special
interests and concerns shared by the audience which you can reflect
in the presentation to help atlract interest and win support.
3.8
Planning your presentation

When you have established the purpose of the presentation and
identified the nature of the audience, you can start to plan what you
are going to say and how you are going to say it.
Planning is essential but it is also time-consuming and requires an
atlention to detail which some may find tedious. You should, therefore,
view planning as time well-spent - in building your confidence and
enhancing the effectiveness of your presentation.
206

The following guidelines cover the main factors you need to consider:
Deciding what you are going to say

1. Write a brief statement summarising the theme of the
presentation.
2. List the points you intend to cover.
3. Think about your list andselect those points which you must
cover and indicate their priority by underlining or highlighting in
some way.
4. Consider the points you have identified as non-essential.
Remember that the fewer points you attempt to put across to
your audience, the more likely they are to remember them.
Review these nonessential points and select those which you
stil! feel ought to be included.
5. Establish how much time you have to give the presentation.
AI/ocate a time estimate to each of your main points and include
time for your introduction and summing-up. If you find you don't
have the time to cover some of the non-essential points, remove
them from your presentation.
6. Decide on the sequence. Always start with an introduction
which conveys the importance or purpose of the presentation
and outlineswhat you are about to say. End with a summary of
the main points or recommendations. Between the introduction
and the summary develop a sequence of presentation which is
appropriate to the nature of the material. For example, if the
material is factual and the purpose of the presentation is to
communicate information, start with the simple and work
through to the more complex. If the information you are
conveying is sequential in nature, follow the same sequence in
your presentation.
7. Collect information to support the points you are including in
your presentation. Refer to your time allocation and include in
your oral presentation only that information you can
communicate effectively in the time available. Any important
details which may confuse or overburden the audience with
information should be included in supporting papers.
207
Deciding how you are going to say it
1. Plan the structure of your presentation and decide what you are
going to include in the introduction, the main body and the
summing-up. If you are developing a complex argument or putting
together a string of ideas, build in summaries at key points. These
sign-posts will hetp the audience tind their way through the
presentation.
2. Prepare notes in the form of key words or phrases written on cards
which should be numbered in sequence. Indicate on the cards
where you intend to use visual aids and write clearly to enable you
to see your notes at a glance. Remember that the notes are not
intended to be a script for you to read from, but are a series of cues
and reminders.
3. As far as possible use simple words and short sentences. Keep the
nature of the audience in mind when selecting language. Be
particularly careful in your use of specialist or technical terms. Try
to be positive, precise and pertinent.
4. Pay careful attention to the use of visual aids. Think of the most
effective way of getting the message across visually as well as
verbally. Before deciding to use a particular visual aid check that
the facility is available. Used discriminately, visual aids can add
impact, introduce variety, help to maintain interest and aid audience
recal!. Aids such as flip-charts, whiteboards, chalkboards and
overhead projectors are particularly useful as 'verbal' aids emphasising key words and ideas and summarising main points.
5. Devices such as personal anecdotes and humour can be used to
good effect. If well-received they can act as useful ice-breakers at
the start of a presentation and sustain the interest of the audience.
But don't overdo it - excessive or inappropriate use of humour and
anecdote could seriously detract from the purpose of the
presentation.
6. Rehearse the presentation. Make sure that you can cover the
material comfortably in the time allowed. If you have too much
material, which is often the case, either remove unnecessary detail
or exclude some of the less essential points. If there is insufficient
material, think of ways of strengthening your main points. Don't add
unnecessary materialjust to 'pad it out'. Record the presentation to
get an impression of how it will sound to an audience. Pay
particular attention to your pace of delivery and the use of pauses
and changes in the pitch and tone of your voice to help the
208

Information, Communication, Meetings and.Presentation
Skills
audience sustain interest and attention.

7. Finally, throughout your preparation and planning don't Iose sight of
the purpose of the presentation and the interests, knowledge and
expectations of the audience. Presenting to an audience can be a
stimulating and rewarding experience. It is possibly the most
powerful means of influencing the feelings and attitudes of others.
Exercise 1:
Reviewing presentations: task sheet
The effective presentation
Think of one presentation when you were in the audience which you
felt was particularly effective.
What was the purpose of the presentation?

Was it to tell?
sell?
impel?
(Tick one or more purposes, if

appropriate)
LJ
Why was this presentation effective?

List the main factors which you feel contributed to its effectiveness.
Use the chapter 'Getting The Message Across' as a guide.
The ineffective presentation
Think of one presentation when you were in the audience which you
felt was particularly ineffective.
What was the purpose of the presentation?

209

Was it to tell?
sell?
D
D
impel?
(Tick one or more purposes, if

appropriate)
Why was this presentation ineffective?

List the main factors which you feel contributed ta its lack of
effectiveness. Use handout 'Getting The Message Across' as a guide.
210

Information, Communication, Meetings andPresentation
Skills
Exercise 2:
Next time you are invited to attend an interview panel or a presentation
of a Project Management Team, take a few'ffiinutes to assess the
effectiveness. Are you aware of the five factors mentioned below?
Evaluation Sheet
Factors
Candidate
1
Did the presentation have

a beginning, middle and
end?
Did it fit the time aliowed?
Did the candidate appear
natural and relaxed?
Did the candidate use the
notes unobstrusively?
Did the candidate put the
case acros effectively?
General comments on how the presentation was made
1
2
3
4
5
211
Case study
Effective Communication?
Dana and Julia were working in different departments'but they

were stiti spending a lot time together during coffee break and any
other occasions whenever possible.
One day Dana was asked to start preparation of a study about the
future infJuenceof factors 'X' and 'V' on the performance of
regional agencies subordinated to their ministry. Since Julia was
currently working with environment departments of these regional
agencies, Dana thought that it might be very helpful to involve her
friend Julia in preparation of this study.
During an usual coffee break, they were di~cussingthis subject,
trying to understand how to merge their efforts. This was indeed
their first opportunity to work together and they were really excited
.
about it. But things didn't seem to go well.
What Dana was asked to investigate, was based on the

information about the nature of social factor X and V and the
international experience about their infJuence.She received a
long list of readings to refer to as well. She found her social
background very helpful in order to better understand as she
began to read.
On the other side, Julia was monitoring the current activity of
regional ageneies in the field of environment and she knew
exaetly what human and technology resourees have been
allocated for this task in eaeh regional ageney. Julia was familiar
with specific environmental techniques, methods and
competeneies required.
Gradually their coffee break ehat began to ehan to an argument.
Suddenly they realised that their expectation of a successful cooperation was about to be ruined. How eould this happen?
Both Dana and Julia approaeh their heads of departments for
further information. Their heads of departments supported their
point of views accordingly. The heads of departments also
stressed on what they thought was important in this study and
how should it be approached.
This confused Dana and Julia even more.
212

Information, Communication, Meetings anctPresentation
Skills
Problem:
What do you expect to be the reason for Dana and Julla's
misunderstanding?
Was there a communication problem?
What could have affected their comrriunication with one onother

and their in case of their bosses?
What ought to done ta improve the communication in the above

cases?
P\)ssible Solution & Guidelines:
Read carefully the case study and try ta identify what theoretical
concepts presented in the Communication Chapter could apply;
As a potential answer for the first question, it could be

concluded that misunderestanding is due to their differing frame
of references;
As for the second question the effective communication could

. have been affected by perceptual biases on the part of both
Dana and Julia and the information they received about the
objectives of the study. Both heard (perceived) what they were
ready to hear and perceive from based on their daily activities;
Regarding the communication problems with their bosses, it

could be considered that there is some kind of omission or
distortion on the part of the senders - an individual in higher
position or another head of department. Apparently, the person
.whoinitiated the study, has not transferred aII the information
about the context and the expected outcomes;
It is quite obvious that an effective communication could be

obtained by avoiding the above mentioned problems.
213
Table:
Communication Styles (Description of their main

characteristics)
ures
Content
Process
Styles
Action
. Results
. Responsibility
.Objectives
Process
. Feedback
. Perfarmance
. Productivity
. Efficiency
. Experience
. Challenges
. Achievements
. Maving ahead
. Change
. Decisians

. Facts
. Trying out
. Procedures
. Analysis
.Observations
. Planning
8Proof
.Organising
. Details
. Cantrolling
. Testing
They are:
. Pragmatic
(down to earth)
. Direct (ta the
paint)
.Impatient
. Decisive
Quick Uump
fram ane idea
ta anather)
. Energetic
(challenge
athers)
They are:
. Systematic
(step-by step)
. Logical (cause
and effect)
. Factual
. Verbase
. Unemotional
. Cautious
. Patient
197

4.
Basic understandingof the different theories

explaining motivation
.
.
.
. Guidelines for managers to motivate their staff
Case studu about the right style of leadership
Leadership as a key function of a manager

Delegation as a modern managerial tool
214

--
--
'-
Motivation derives from the term 'mouere' meanings to move. It implies

taking aetion and the effort and energy required to do 50. In order to
get the best out of people at work, it is necessary to learn what draws
people to do the things that they do and how can such energy be
managed.
Professor Kakabadse and his .colleaguesargue that, 'not only does the
manager of the group have to consider the objectives to be achieved
and the means and resources available to achieve them, but also he
has to raise the level of motivation of each individual in the group'
(1987; 120).
Motivation is a complex subject, it concerns the individual's needs,
incentives, perceptions and their expectations. Mullins (1993)
suggests that people's behaviour is determined by what motivates
them, and that their performance is a product of both ability and
motivation
Needs or
expectations
---+ Results
---+ Driving force __ To achieve

desired goal
Fulfillment
Feedback
Which provides
Definitian of Perfarmance
Performance = function (ability x motivation)
215

Motivation,LeadershipandDelegation
A manager in order to improve the work of the project or the

organisation as a whole has to pay atlention to the level of motivation
of the members. This requires directing their energy and combined
efforts towards achieving the goals of the project. Moreover, since
motivation is influenced by many variables, managers have to
understand and identify what the needs and expectations of the people
are and how they can be motivated.
4.1
Approaches to Motivation
There are basically three approaches to motivation, these are
concerned with
meeting the needs of people
.
.
providing the right incentives at work

identifying the people's expected outcome from their effort and
contribution at work
4.1.1 . Need Theory

Professor Maslow believed that there are five levels of needs which
are hierarchical in relation to one another. These are: Physiological,
Security, Social, Self esteem and self - actualisation. Maslow believed
that the ascending nature of these needs suggests that each level of
needs must be reasonably satisfied before other levels are
considered.
216

Motivation.LeadershipandDelegation
Diagram : Maslow's Hierarchy of Needs
Evolving need
requiring fairly
constant
attention
Step 5
Self-actualisation
(eg challenging
job)
Step4
r
r
r
Self-esteem
(eg job title)
Step 3
Social
(eg compatible
work group)
Step 2
Security
(egjob
security)
Step 1
Physiological
(eg work
conditions)
1--
What are the needs of the individuals?
Each lower order need must be satisfied befere the next higher
order need assumes dominance
When an individual need becomes satisfied, it declines in

importance and the need at the next level of the hierarchy
increases in importance
When the individual moves up to the highest level need,

satisfaction of this need increases in importance (selfactualisation)
The number and variety of needs increases as an individual's

psychological development takes place.
217

Motivation,Leadershipand Delegation
4.1.2
IncentiveTheory
Hertzberg (1964) argued that, it is not only the needs of the individual
which must be satisfied, other external influences must also be
considered. Realistically, managers have in their possession only
certain resources or abilities in order to provide incentives for their
employees. Therefore it is important to select staff with needs which
can be satisfied and whilst paying attention to the 'motivators' and at
the same time attempt to reduce or minimise the dissatisfying factors
at work.
It is suggested that there are two distinct groups of factors to which

managers have to pay attention in order to sufficiently motivate their
employees. These are:
. Maintenance/hygienefactors
Motivators
Hygiene Factors
Maintenance factors refer to the intrinsic aspects of the job. These
factors, whilst they cannot act as the main motivators, they protect the
individual from dissatisfaction. These include:
company policy and administration
. supervision
salary
. interpersonal relations; and
physical working conditions
Motivators
According to Professor Hertzberg, while it is true that not aII people are
motivated either extrinsically or intrinsically, research indicates that
internal drives of the individual can play an important part in their
motivation towards their work. These are:
achievement
recognition
218

work itself
responsibility;and
8-
advancement
- -
Analoui (1997) supports this view and added that attention ought to be
paid to both sets of factors simply because in different cultural and
contextual settings, people may show preference for one or more of
the factors. Managers have to realise
8
The importance and limitations of money as a motivator

The Manager can create the right conditions for staff to be
motivated more effectively
Personal goals must be identified. They may include:
A need to feel sense of achievement
Recognition for good work
Advancement and promotion
Participation in decision making
Increased responsibility
Freedom to plan and organise own work
Challenge and personal growth
4.1.3
Expectancy Theory
Do individuals exercise a choice of behaviour? Do they consider the

optimal reward which might be obtained by following a particular
course of action? Professors Vroom and Deci (1977) argue that, yes,
individuals do weight up the probabilities of success when adopting
alternative courses of action and then choose the behaviour which is
likely to produce most options as well as ensuring the greatest reward.
These principles are;
1. People show preferences for different outcomes
2. People have certain expectations with regards to a particular
action, outcome or incentive offered to them.
3. People can distinguish between successful and unsuccessful
behaviours
219

4. Peoples' behaviour is determined by their preferences and their
expectations at the time of their decision for action.
4.1.4
Guidelines for Managers
What can you do as a manager to motivate your staff more effectively?
Try to identify and understand the needs and personal goals of

your staff. Beware of your assumptions, which may be false and
misleading.
Remember that money is not the only motivator. Many other

rewards which you influence may be more effective than money in
getting your staff to work harder.
Set your staff targets, which are realistic and achievable but also
stretch ability. If possible involve subordinates in setting their own
targets.
.
.
Always recognise achievement by praise or some other reward.

Do not alter targets without consulting with the staff concerned. If
changes are necessary these should be agreed jointly.
Harness the strength of the group. Group pressures can affect

motivation positively and negatively. Involving your staff as a group
in making decisions will strengthen commitment.
Keep your staff informed about what is going on in the organisation.
(see the case study at the end of the chapter)
4.2
Leadership in Organisations
Many business and project failures can be traced back to ineffective
leadership. Since a manager's performance is related to other
individuals and group activities, it is, by and large, agreed that
leadership is an aspect of a manager's job. Leadership in
management may occur at alilevels in an organisation and the quality
of the manager's performance is directly related to his management of
the performance of his/her subordinates. In this way leadership is
viewed as a process of influencing people towards the achievement of
a given goal. This enables us to identify three common features which
220

most leaders (managers) share. These are as follows:
a) Leadership is a process
b) It occurs in a social context
c) It is concerned with the achievement of given, implied or
unconscious goals and objectives
Studies in Leadership:
Leadership as a subject has been the concern from time immemorial.
However, the most notable attempts can be traced back to 1900 and
the assumption that leaders were born and therefore the qualities of
leadership are intransmutable. Nowadays, it is believed that
successfulleaders possess knowledge and skills of the kind that
enables them to diagnose people and tasks in a given situation and
furthermore, they are able to modify their style appropriately to the
specific needs of the situation in which they find themselves.
Approaches
ta Leadership:
Although studies of leadership often create conflicting results, in order

to gain a substantial understanding of leadership, three broad areas of
concern are identifiable.
(1)
The TraditionalApproach that attempts to provide acceptable

explanations as to how an individual happens to become a
leader, (e.g. Trait Theories).
(2)
The Behavioural Approach, which is more concerned with how

leaders (managers) behave when involved in managing
situations (e.g. Classical/Human Relation Approach); and
(3)
The Contingency Approach, (situational) which is concerned

with understanding how different situations can be effectively
managed by adopting different styles of leadership.
4.2.1
Traditional Approach
These studies initially were concerned with the characteristics of good

leadership. It is usually implied that factors such as personal qualities
(age, intelligence, experience) or personal traits (extroversion and
221
--.
Motivation.Leadershipand Delegation
--
dominance) play a determinant part in the making of the leaders. This

characterises the ways in which charismatic leaders were viewed. As
we move away from this position which stipulates the inherent and
unique qualities of the individuals,the traditions in general, customs
and ways of life, in particular, are viewed as determinant factors for
leadership. In this way it is the normative procedure, which creates the
need for a situation in which its occupant is a leader, (for example, a
chief). Lastly, with the increased complexity of the organisation
structures, it is believed that leaders are chosen by the nature of the
role relative position with the hierarchical structure of the organisation.
It is the accumulated body of rules and regulation which stipulates the
presence of a hierarchy of roles and the organisation status of its
occupants. Therefore, it is believed that what makes an individual a
manager or a subordinate, is their relative importance of the position,
which he or she may occupy in the hierarchy.
4.2.2
BehaviouralApproach
The advocators of this approach turned their attentions to the

behavioural aspects of leadership. That is, howa leader behaves and,
more importantly, how his/her behaviour is influenced by the
underlying assumptions that he or she holds concerning the nature of
people, organisations and work. Therefore, it was argued that the
emphasis must be placed on the i(lteraction between leaders and their
subordinates. Subordinates work better for managers who use a
certain style of leadership behaviour than they will for others who
employ different styles.
Managerial Styles: Another significant contribution, is that of

Tannenbaum and Schmidt (1973). They identified two styles, namely
Authoritarian and Democratic, which were viewed by these authors as
the two ends of the same continuum. They suggested that there is a
range of styles available to the leaders (managers) and this can vary
from task centred style to an almost participative (people centred)
style.
These are as follows:
1. Manager tells: Authoritarian style, subordinate role is to follow.

2. Manager sells: Still in control and as decision-maker likes to attract
the willingness and compliance of subordinates.
3. Manager tests: StiUin charge, reasons the right to accept or refuse
222
-- --
- --- ---
.-
---
---
and provides an alternative.
4. Manager consults: Still reserves the right. Information from

subordinate can be incorporated into the final solution.
5. Manager joins: Totally participative; do it together.
Diagram : Continuum of leadership styles
Authoritarian
Participative
leadership
leadership
Authority and control
retained by manager
Authority and
Control shared
I
I
The manager tells
Authoritarian
sells
tests
consults joins
Continuum of leadership styles
; ___
-2231-..1
Democratic
"""'

R
'w.............._
----
Managerial Grid: Black and Mouton have also offered a range of styles
which a manager can adopt. They identified two dimensions "Concern
for production" and "Concern for people" which were arranged as two
dimensions for a grid. Each dimension constituted a nine point scale.
The five identified styles are as follows:
Styles of leadership
Concern for
task
Concern for
people
Low (1 )
1. Task Management
High (9)
2. Team Management
High (9)
High (9)
Medium (5)
Medium (5)
4. Country club management
Low (1 )
High (9)
5. Improvised management
(Apathetic)
Medium (1
Medium (1)
3. Middle of the road
Project Management SkllIs

--
Diagram :
The managerial grid Robert R. Blake and Jane Srygley

Mouton
High concern for

people
Low concern for
production (soft-line
theory X)
(country club 1.9)
Low concern for
people
Low concern for
production
(apathetic
management)
Concern
for
people
4.2.3
High concern for

people
High concern for
production(theory Y)
(team management
9.9)
Low concern for
people
High concern for
production (hard line
theory X) (scientific
management 9.1)
Concern for production
Contingency (Situational) Approach
The contingency models of leadership are grounded on the

assumption that different situations may caII for different styles. This
approach to leadership ISin complete contrast with the traditional view
which views the organisation as a closed system (see chapter one).
Hersey and Ken Blanchard developed a model of situational
leadership. They identified two dimensions
- these
are:
1. Task Behaviour: The extent to which a manager defines roles,

diagnoses the way people should behave and the way things are
done.
2. Relationship Behaviour: The extent to which a manager (Ieader)
maintains and promotes relationships between himself and others.
22!f
-.

They argue that there is no best style of leadership. A manager needs

to work out which approach to use, which combination of tasklrelations
behaviour is appropriate in a given situation. This model is very similar
to that of Tannenbaum and Schmidt (1973) with the difference of
added delegation.
Diagram : Situational Leadership
LT/HR I HT/HR
High
(Selling)
(Participating)
Relationship
behaviour
S31 S2
S4
S1
(Delegating) I (Telling)
Low
HT/LR
LT/LR
Low
+ Task behaviour
High
Situationalleadership: leadership styles developed by Paul Hersey

and Ken Blanchard
To conclude it must be noted that although each manager may prefer
a particular combination of styles, the effective manager s capable of
adapting his/her style to the pressures of the situation.
226
--. ---Project Management Skllis

4.3
Guidelines and Action Levers
Remember leadership is required because.someone has to point the

way and that same person has to ensure that everyone concerned
gets there. Organisational effectiveness depends on the quality of
leadership.
4.3.1
Objectives of a Leader
The overall aim of a leader is to achieve the task with the help of his
group.
To meet this overall aim, the leader has three main objectives:
1. To gain the commitment and co-operation of his team.
2. To get the group into action to achieve agreed objectives.
3. To make the best use of the skills, energies and talents of the
team.
A leader's aim is to get people to do what he wants by obtaining willing

co-operation, not grudging submission. He must also build up the
morale of his group, which will be high when the group is productive
and the people in it work well together.
John Adam's study 75 top of executives reveals that 12 qualities rated

most valuable and necessary in order to become successful chief
executives. These are:
1. Decisiveness
2. Leadership
3. Integrity
4. Enthusiasm
5. Imagination
6. Willingness to work hard
7. Analytical ability
8. Understanding of others
227
- . -.
Motivatioo, Leadership and Delegation
9. Ability to spot opportunities

1O.Ability to meet unpleasant situations
11.Ability to adapt quickly to change
12. Willingness to take risks
4.3.2
Factors InfluencingSuccess
Professor Margerison studied chief executives in UK and discovered

factors and influences, which led to their success. These are ranked
below:
1. Ability to work with people
78
2. Early responsibility for important tasks
75
3. A need to achieve results
75
4. Leadership experiences early in career
74
5. Wide experience in many functions before age of 35
68
6. Ability to do deals and negotiate
66
7. Willingness to take risks
63
8. Ability to have more ideas than colleagues
62
9. Having talents 'stretched' by immediate bosses
60
10.Ability to change managerial style to suit occasion
58
Note:
Rating out of 100
Essential requirements for successfulleadership
1. The leader must be perceived as 'one of us'. He shares certain

characteristics with the members of his group and is not perceived
as an outsider.
2. The leader must be perceived as the 'most of us'. He must
incorporate to a special degree the norms and values which are
central to the group. He can influence values by his visionary
228
_IRIII____
- ---
-_
<iI'I
=;sg;~
powers but he may fai! as a leader if he moves too far away from
them.
3. The leader must be perceived as the best of us'. He has to
demonstrate that he is an expert in the task facing the group,
indeed that he is superior to his team in those abilities, which are
relevant to the group task. He must prove that he can direct and
harness this expertise in obtaining results.
4. The leader must fit the followers' expectations. He is more likely to
gain the respect and co-operation of his followers if he behaves in a
way which they expect of good leaders. These expectations will
vary according to the group but will often include being straight, fair
and firm as well as being considerate, friendly and approachable.
4.3.3
Leadership Roles
Because of the complexity involved leaders have to play many roles.

These can be classified into two groups:
1. Primary functions which are essential to the process of leadership,
namely:
The leader as visionary. He has a vision of the future and

conveys his belief to his team.
The leader as executive. He determines the objectives of the

group and directs and co-ordinates the group's activities in
achieving them.
The leader as planner. He decides how the group should

achieve its ends.
The leader as policy-maker. He participates in formulating
policies in the shape of continuing guidelines on what the group

does.
.
.
The leader as expert. He has the expertise and information

required by the group.
The leader as controller of relationships in the group. He
decides how the group should be organised and influences how

people in the group work together.
The Isader as purveyor of rewards and punishments. He has

the power to apply rewards and punishments and thus exercise
control over group members.
229
Motivation,Leadership
- -- and Delegation
-
2. Accessory functions which are those a leader may assume or be

assigned because of his leadership position, namely:
The le ader as exemplar. He serves as a model of behaviour for
the group members.
The leader as symbol of the group. He provides a focus for

group unity.
The leader as father figure. He can become an object for

identification or even submissiveness.
The leader as scapegoat. He may become the target for the

aggressions of a frustrated, disappointed, disillusioned group.
4.3.4
Leadership Skills
If you want to be an effective leader you have to do six things:

1. Know yourself
2. Know your situation
3. Select management styles which are appropriate to the situation
(these are discussed in the final section of this chapter)
4. Satisfy task needs
5. Satisfy team needs
6. Satisfy individual needs.
Know yourself
As a leader, you will start with certain natural abilities and by
experience you will have developed certain ski Ils. To improve your
leadership qualities your first step is an analytical one - know yourself.
Check each of the ten qualities and ski Ils listed below and see how
you measure up to them:
1.
Ability to work with people
2.
Ability to gain the respect and support of people
3.
Decisiveness
230
4.
Enthusiasm
5.
Imagination (vision)
6.
Ability to inspire others with your enthusiasm and vision
7.
Willingness to work hard
8.
Analytical ability
9.
Integrity
10.
Ability to change leadership style to suit occasion.
Assess your strengths and weaknesses under each heading. Analyse

the occasions when you have succeeded or failed and why. Try to
assess how you exercised these abilities or skiIls and answer these
questions:
Was it directive?
.
.
Was it supportive?
Did it work? And if so, why? And if not, why not?
Was it appropriate to the situation?
Following this analysis if you know your strengths, you can develop
them, and if you know what works in particular circumstances you
have a good idea of the approach you should adopt in similar
situations. If you are aware of your weaknesses, you can do your best
to manage them, remembering.
Know your situation

Having got to know something about yourself as a leader - your
strengths and weaknesses - you have to carry on using your analytical
powers to understand the situation so that you can exploit your
strengths, minimise your weaknesses and adopt the most appropriate
management style. Your situational analysis should answer the
following questions:
1.
The task
. What needs to be done and why?

. What results have to be achieved?
231
Proj~ Ml1agtm~ntSkllls
Motivatioll.
.leadershipal1dDelegation
---
.
.
.
2.
3.
4.3.5
What problems have to be overcome?

Is the solutionta these problems straightforwardar is there a
measure of ambiguity?
Is this a crisis situation?
What is the time-scale for completingthe task?
What pressures are going ta be exerted an me?
The team
.
.
.
.
What is the composition of the team?
How am I ta get this particular team's commitment?
.
.
How am I ta get results by satisfying their needs?
How well is the team organised?

Do the members of the team work well together?
What will they want ta get out of this?
How are they likely ta respond ta the various leadership

styles ar approaches 1might adopt?
The individuals in the team
What are the strengths and weaknesses of each member of

the team?
.
.
What sort of things are likely ta motivate them?

How are they likely ta respond individually ta the various
leadership techniques ar styles I might adopt?
Select an Appropriate Management Style
Finally, after above analysis, adopt a situational approach ta

leadership by using your analises of yourself, the task, the team and
its individual members ta decide an the most appropriate style ar
styles ta adopt.
232

Motivation, .Leadership and Delegation
4.4
Delegation
The managerial perspective to which managers prescribe their values,
thoughts and beliefs, to large extent determines the degree to which
they use "delegation" as a modern managerial tool. It is however
important ta remember that delegation is a difficult task. It is perhaps
the hardest thing,that managers have ta do. The problem is getting the
balance right between delegating too much ar too little and between
over- ar under-supervision.When you give someone something ta do
you have ta make sure that it gets done. And you have ta do that
without breathing down his neck, wasting your time and his, and
getting in the way. There has ta be trust as well as guidance and
supervision.
Advantages of delegation
.
.
It relieves you of routine and less critical tasks
It extends your capacity to manage
It reduces delay in decision-making - as long as authority is

delegated close to the point of aetion
It allows decisions to be taken at the level where the details are

known
It develops the capacity of staff to make decisions, get things

done and take responsibility.
It frees you for more important work planning, organising,

motivating and .controlling
Whento delegate
You should delegate when:
You have more work than you can effectively carry out yourself
You cannot allocate suffieient time to your priority tasks
.
.
You want to develop your subordinate

The job can be done adequately by your subordinate.
- 'Project Management Skills

How to delegate
When you delegate you have to decide:
.
.
.
.
.
What to de/egate
To whom you delegate choosing who does the work

How to inform or brief your subordinate - giving out the work
How you will guide and develop your subordinate
How you will monitor his performance.
What to delegate
You delegate tasks that you don't need to do yourself: difficult, tedious
or unrewarding tasks.
Those include:
a) Routine and repetitive tasks which you cannot reasonably be
expected to do yourself - as long as you use the time you have won
productively.
b) Specialist tasks to those who have the skills and know-how to do
them. You cannot do it aII yourself. Nor can you be expected to
know it aII yourself. You have to know how to select and use
expertise.
As a manager you must know what specialists can do for you and you
should be knowledgeableenough about the subject to understand
whether or not what they produce is worth having. Remember, if
delegation is carried out properly it will in fact, make your life more
difficult, but also more rewarding.
4.4.1
Choosing who Does the Work
Ideally, the person you choose to do the work should have the
knowledge, skills, motivation and time needed to get it done to your
complete satisfactien. Frequently, however, you will have to use
someone who has less than ideal experience, knowledge or skiIls. In
these cases you should try to select an individual who has intelligence,
234
- __ III
_ _
natural aptitude and, above aII,willingness to learn how to do the job

with help and guidance. This is how people develop, and the
development of your staff should be your conscious aim whenever you
delegate.
The best way is to try people out tirst on smaller and less important
tasks, increasingly giving them more scope so that they learn how far
they can go and you can observe how they do it. If they get on well,
their sense of responsibility and powers of judgement will increase and
improve and you will be able to trust them with more demanding and
responsible tasks.
4.4.2
Giving out the Work
When you delegate you should ensure that your subordinate

understands:
.
.
Why the work needs to be done
.
.
.
.
.
The date by which he is expected to do it
The resources and help he will have to get the work done.
What he is expected to do
The authority he has to make decisions

The problems he must refer back
The progress or completion reports he should submit
How you propose to guide and monitor him
You can make a distinction between hard and soft delegation.

Hard delegation takes place when you tell sameone exactly what to
da, how ta do it and when you want the results.
Soft delegatian takes place when you agree generally what has to be
achieved and leave your subardinate to get on with it. You should still
agree limits of autharity, detine the decisians ta be referred to yau, say
what exceptian reports you want, and indicate when and how yau will
review progress.
235
.Project Management Skills

4.4.3
Guidance and Development
You should always delegate by the results you expect. Even if you do
not need to specify exactly how the results should be achieved, it is a
good idea when delegating a problem to ask your subordinate to tell
you how he proposes to solve it. You then have the opportunity to
provide guidance at the outset; guidance at a later stage may be seen
as interference.
Your subordinate may need guidance on how the work should be

done. The extent to which you speli it out will clearly depend on how
much he already knows about how to do the work. You don't want to
give directions in such laborious detail that you run the risk of stifling
your subordinate's initiative. As long as you are sure he will get the job
done without breaking the law, exceeding his or her budget,
embarrassing you or seriously upsetting people, let him get on with it.
Delegation not only helps you to get your work done; it can be used to
improve your subordinate's performance and therefore your trust in his
ability to carry out more responsible work. Instruction, training and
development are part of the process of delegation.
4.4.4
Monitoring Performance
At first you may have to monitor a subordinate's performance carefully.

But the sooner you can relax and watch progress informally the better.
You will have set target dates, and you should keep a reminder of
these in your diary 50 that you can ensure they are achieved. Don't
allow your subordinates to become careless about meeting deadlines.
Without being oppressive, you should ensure that progress reports are
made when required and that you discuss deviations from the original
plan in good time. You will have clearly indicated to your subordinate
the extent of his authority to act without further reference to you. He
must therefore expect to be reprimanded if on any occasion he
exceeds his brief or fails to keep you informed. You don't want any
surprises and your subordinate must understand that you will not
tolerate being kept in the dark.
236

Try to restrain yourself from undue interference in the way the work is
being done. It is, after aII, the results that count. Of course, you must
step in if there is any danger of things going off the rails.
There is a delicate balance to be achieved between hedging someone
around with restrictions, which may appear petty, and allowing him
licence to do what he likes. You must use your knowledge of the
subordinate and the circumstances to decide where the balance
should be struck. The best delegators are those who have a
comprehensive understanding of the strengths and weaknesses of
their staff and the situation in which they are working.
Effective delegation stretches the individual but does not break items
Decision-making style
Deciding how to decide is an essential but often neglected stage in the
decision - making process. The option you use will affect:
the quantity and quality of information on which the decision will be

based;
the extent to which the decision is accepted by subordinates;
the speed with which the decision needs to be taken.
the degree of commitment displayed by subordinates in

implementing the decision;
These five choices of style are open to managers for decision making
(see section on Leadership)
These are
1. The decision is made by you using only the information available to
you at the time.
II. the decision is made by you after obtaining necessary information
from your subordinates.
III. The decision is made by you after consulting subordinates
individually to obtain ideas and suggestions.
IV. The decision is made by you after consulting your subordinates as
a group to obtain ideas and suggestions.
237

Motivation, -Leadership and Oelegation
V. You join with your subordinates and make a decision which has the
support of the whole group.
The following case study demonstrates the problems invoked in

adopting the wrong style of decision making and delegation. Read the
case study and attempt to answer the questions which follow:
Case Study: 'The right style?'
After spending two weeks on a management training course. Paul
Martin returned to work eager to test out some of his new
knowledge and skills. The final weekend session on decision
making was still buzzing through Paul's head as he drove into
work an Monday morning. 'Oecisions. Plenty of those to make' he
thought. In addition to the ones he should have dealt with before
going on the course he anticipated more problems to have arisen
during his absence.
One decision in particular he had been putting aff for some time,
even though his boss was exerting pressure on him to make the
decision and get it implemented.This also happened to be the
type of decision which Paul thought lent itself to group decision
making. 'I'm sure they'lI take to the idea. In fact they'lI probably be
so full of themselves that they'lI.suggest higher targets than I dare
set them. Besides which, "ve gat an awfullot of work to do during
the next couple of days. Oiscussing their targets will keep them off
my back and give me a chance ta catch up.'
Paul supervised a section of five assembly workers who made up
and tested electronic timers to customers' specifications. They
worked to daily output targets set some years ago before
computer assisted testing equipment had been installed which
reduced the assembly-testing cycle time. However, the targets
had not been reviewed and Paul thought that this presented an
excellent opportunity to involve his staff in decision-making something he had never been in favour of befpre the course
convinced him otherwise.
238

Motivation,Leadership and Delegation
As soon as he arrived at work Paul called his staff together and

announced that the targets needed revising. Particularlynow they
were using the computerised testing rig. He asked his
subordinates as a group to decide what the new targets should be
and report back to him withthe new targets betore 5 p.m. on
Tuesday. They approached the task enthusiastically,using lunch,
tea breaks and even stayed over toran hour on Mondayevening.
Paul called his staff together on Tuesday afternoon and the
decision was announced to him. Muchto Paul's amazement they
had concluded that the targets were too high. TheY'had decided to
reduce them by 20%. 'We appreciate that the new equipment has
made testing easier' said the group's spokesman, 'but it's the
assemblies
-they're getting more and more complicated.
By the
time you've got used to one type, the specificationchanges and

you start aIIover again.'
Paul knew that his boss would never accept the new targets, but
how could he overrule the decision after giving his staff the
authority to make it? 'How on earth do I get out of this without
losing face?' Paul asked himself.
Source: Adair,J. (1993) Management Training Manual, Gower
1. Which decision-making style should Paul have used?
2. What mistakes did Paul make in attempting to involvehis

subordinates as a group in making th~ decis ion?
3. Having allowed his staff to make the decis ion, what advice
would you give Paul to help him through his problem?
239

Conflict, Culture and Problem solving
5.
This chapter include$
The need for a successful manager to reconcile

the divergent interests and differences betWeen
individuals and between groups
Explanations on how conflicts are borne and

managed
An exercise to evaluate the extent discontent is

likely ta be a problem in your organisation
240
'1':'1'.
Conflict, Culture and Problem :Solving
-.
-~IIIII
5.1
Organisational Conflict
Professor Handy in his famous work "Understanding Organisations"

ascertains that "there is no perfect organisation" and it would be naive
to think that any organisation can achieve a perfect match between
what is best for it and best for each individual in it. Individual's interests
may not be identical to that of their organisation. The issues and
interests, organisational or personal, are viewed from different
perspectives. This inevitably gives rise to the emergence of
differences.
Organisations are inevitably involved in finding compromises,

reconciling differences and living with what is possible rather than what
might be ideal. The resolution of differences or potential differences
takes up the longest single chunk of managerial time.
A study of managers-revealedthat managers:
felt hat conflict was very seldom coped with, and that when they
were, the attempts tended to be inadequate.
thought conflict was due to management's inability to overcome

intergroup rivalries, lack of co-operation and poor communications.
believed that ineffective aggressive communication was a problem

which existed in middle management.
The successful managers, both in personal and organisational terms,

ought to reconcile the divergent interests and differences between
individuals and between groups. Analoui (1993) refers to this as ability
to apply pluralistic attitude to work and others.
241
Conflict,Cultureand Problemsolving
Symptoms of Organisational Conflict
1. Poor communication.
2. Intergroup hostilityand jealousy.
3. Interpersonal friction.
4. Escalation of arbitration.
5. Proliferation of rules and regulations.
6. Low morale of the type expresses in frustration and inefficiency.
Causes of Organisational Conflict
It is believed that most conflictsituations stem from two underlyingand
fundamental issues:
Objectives and ideologies.

Territory.
Objectives and Ideolog ies:

1.
Divergence of formal objectives: sale/production. Different

departments are set up to achieve different objectives, which may
be in conflict to another.
a) Agreement on a super-ordinate objective (for example: profit).
b) Discovery of alternative ways of achieving the above.
c) Improve communication.
d) Trust in other party.
e) Achieving both objectives.
2. Divergence of roles definitions: Roles specifying the function and

stipulating the code of conduct. Each group of individual role
occupier creates their own code. (Professional) references and
norms concerning acceptable behaviour. This may create a basis
for the emergence of conflict.
242
- - - - - ---
--
Conflict,Cultureand Problem.solving
----
3. The contractual relationship is unclear. Unclear job description

conflicts lead to poor commitment and the ambiguity in terms of
perception of the priorities and the objectives.
4. Overlapping nature of rOIE?s:
Identical roles in different departments
and in the same department leads to problems in power sharing
and inevitably conflict.
5. Presence of concealed objectives: Unshared organisational
objectives means that different groups may strive towards
achieving a greater share in decision making, influence and
increased status.
Territory
The concept of 'territorial behaviour' is also used to explain the
emergence of conflict between individuals, individuals and groups,

and groups andgroups within the organisation.
A territory is an area of space, whether of water, earth or air, which
an animal or group of animals defends as an exclusive preserve.

The desire to possess, acquires or preserve territory and territorial
right.
Robert Andery in "Territoriall mperative" (1987) extended the

principle of territory to domain and organisations. In this instance,
territory will be interpreted psychologically rather than physically.
An individual's psychological territory is his sphere of influence.
'Territory' and roles are often two metaphors for describing the
same phenomenon. Metaphors are merely an aid to diagnosis.
a) Ownership of territory is partly conferred by deed Uob
description), partly by precedent, by squatting or staking a
claim.
b) The boundaries of the territory are set in different ways, for
example, physically (walls); procedural (membership); socially
(groups)
243

Conflict,Culture and Problem solving
Territory as a Source of Conflict

1. Territqrialviolation.
2. Overcrowding.
3. Territorialjealousy.
5.2
Management of Conflict
Conflict in an organisation may not be totally eradicated, but it can be
managed.
1. Identification of the sources of conflict, people involved, issues

concerned (personal, organisational, ideological).
2. Devising appropriate strateg ies that may be agreed by the parties
involved.
3. Implementation of the strateg ies sought.
A.
Transforming conflicts of interests into fruitful

competition or purposeful argument.
a) Management by objectives/results.
b) Quality circles.
B. Controllingconflict.
a) Arbitration
b) Rules and procedures
c) Co-ordinating devices
d) Confrontation
e) Separation
f) Neglect
The larger the conflict, the greater the potential for conflict, the more
complex the network of work relationships, the greater the need for the
manager to acquire interpersonal skills. Conflict is the spice of life.
However, too much of it spoils the broth. Much of the organisation's
resources and energies are consumed in conflict. Better management
of differences results in a more productive relationship as well as
244

Conflict,Cultureand Problem solving
making the work place a pleasurable place to live and work in.
There are three principal ways of resolving organisational conflict.
5.2.1
Peaceful co-existence
The aim here is to smooth out differences and emphasise the common
ground. People are encouraged to learn to live together; there is a
good deal of information, contact and exchange of views, and
individuals move freely between groups (for example: between
headquarters and the tield, or between sa les and manufacturing).
This is a pleasant ideal, but it may not be practicable in many
situations. There is much evidence that conflict is not necessarily
resolved by grouping people together. Improved communications and
techniques such as brieting groups may appear to be good ideas but
are useless if management has nothing to say that people want to
hear. There is also the danger that the real issues, submerged for the
moment in an atmosphere of superficial bonhomie, will surface again
at a later date.
5.2.2
Compromise
The issue is resolved by negotiation or bargaining and neither party

wins or loses. This concept of splitting the difference is essentially
pessimistic. The hallmark of this approach is that there is no 'right' or
'best' answer. Agreements only accommodate differences. Real
issues are not likely to be solved.
5.2.3
Problem - solving
An attempt is made to tind a genuine solution to the problem rather

than just accommodating different points of view. This is where the
apparent paradox of creative conflict' comes in. Conflict situations can
be used to advantage to create better solutions.
If solutions are to be found by problem-solving, they have to be

generated by those who share the responsibility for seeing that the
solutions work. The sequence of actions is:
First, those concerned work to detine the problem and agree on the
objectives to be attained in reaching a solution
Second, the group develops alternative solutions and debates their
merits; third, agreement is reached on the preferred course of action
and how it should be implemented.
245

Conflict is an inevitable concomitant of progress and change. What is

to be deplored is the failure to use conflict constructively. Effective
problem-solving both resolves conflicts and opens up channels of
discussion and co-operative action.
Case study
In our organisation people are working in a nice environment. We
know what our boss is expecting from us and how things are
usually done. However, one day, every thing changed. I was no
longer certain about what I believed in and I was filled with anxiety
and discomfort.
What really happened was that Mihai, Marius and I were working
hard and late and had been doing 50 for five days for a very
urgent project which had been assigned to us, about five days
before, by the Director General himself. We were about ready and
happy with the professional result of our work, especially because
we were in time. A great deal of effort was needed to statistically
process a huge amount of data from the regions. We were
seeking to please and surprise our boss.
Unfortunately, when time came we really did surprise our boss"What is this report aboutT he asked angrily. Eventually, he
remembered his initial request but things had changed few days
before and the report was no longer needed. We were dismissed
from his oftice and advised to start the new report immediately.
No thanks for our previous efforts and no explanation for giving
up that task. I was really angry and that day it was impossible for
me to start the new work. Mihai was just laughing at me and tried
to encourage me to calm down and get on with my work again. I
realised that not only he was not helping me with the previous
task, he also did not seem to be very enthusiastic about the new
task.
"What does it mean?" - I asked myself. Mihai is one of my best
friends and colleagues and I have always thought that we can
make a perfect team. However, there was something strange
about his behaviour that I could not understand and I coulf not
agree with.
I started to ask myself the following clear questions:
I am very angry about our wasted efforts while he is not;
246

Conflict, Cultura and Problemsolving
I am no more enthusiastic about the new task while he seems to

be;
I intend to ask for explanation so that what happened can be
avoided in the future.
Problem:
A. Looking at this particular situation, which of the following
symptoms of organisational conflict are applicable to the actors
invovoled? Please explain in detail.
.
.
.
.
Poor communication
Interpersonal friction
Proliferation of rules and regulations
Low morale of the type expresses in frustration and
inefficiency.
B. Is Mihai a really contented person? Please explain your opinion.

C.What is the major difference between their behaviours?
Solution and Guide Lines:
Read carefully the case study and try to identify what theoretical
concepts were presented in the Communication Chapter which
could be applied in that situation;
As the answer to the first question could be that poor

communication is major issue in an organisation and lack of it
may lead to waste of effort and general discontent;
Another result of poor communication could be the low morale of

the type expressed in frustration and inefficiency - this is the
case for Mihai;
As a potential answer for the second question, you could identify

that previous similar experiences led to Mihai's actuallow
morale and frustration;
As a potential answer for the third question you could identify

that, from the discontent three-dimensional matrix point of view,
Marius has a typicalLO. (Individual Open) behaviour while Mihai
has a typicalLC. (Individual Cover) behaviour.
247

Exercise
Your Organisation
This questionnaire has been developed by Dr. Farhad Analoui (1989).

It will help you to determine the extent to which discontent is likely to
be a problem in your organisation. The questionnaire contains twenty
statements. Read each carefully and allocate a score between Oand 5
points to each according to how true you find the description to be of
your own workplace. Try to be as objective as possible.
1.
The emphasis is on a strong and decisive leadership that expects

unquestioning loyalty from its subordinates.
Not true
O
2.
Very true
1
.2
.3
.4
Managers tend to treat new ways of doing things with suspicion,

especially if the idea comes from subordinates.
Not true
O
3.
Very true
.1
.2
.3
.4
Very true
.1
.2
.3
.4
Procedures are laid down for getting things done, but the boss
may change the rules if it suits him, or when under pressure.
Not true
O.
In my organisation it is believed that a good subordinate is one

who is 'aII for the organisation'.
Not true
4.
Very true
....1
2
248
5
!
I
j

Conflict, Culture and Problem sQlving
5.
In my organisation it is continually said that no one, of any rank, is

indispensable.
Not true
o
6.
Very true
.1
..2
.3
.4
People at the top avoid responsibility and often pass the buck to
subordinates. This is done under the disguise of delegation and
allocation of responsibilities.
Not true
o
7.
Very true
1
..4...
Very true
.1
.2
.3
.4
9.
The present procedures for handling grievances and conflict are

lengthy and cumbersome. Even worse, people with a grievance
are indelibly labeled as troub!emakers.
Not true
0
..5
Every so often someone is made a scapegoat for doing

something that everyone else does, but which is not formally
allowed.
Not true
8.
Very true
1
2...
There seems to be little commitment, especially on the part of

subordinates and junior management, to the long-term objectives
of the organisation. 'Getting by' seems to be the most favoured
attitude.
249
- -
Conflict,Culture and Problem solving
Not true
Very true
.1
..2
.3
.4
10. Almost everyone is aware of the current difficulties with which the
company is faced. These are often discussed, but are never
communicated to the top. The argument is that 'no one is
interested enough to take them on board'.
Not true
Very true
.1
.2
..3
.4
11. Individuals or groups are encouraged to use their initiative, even if

it means bending the rules a little, to achieve the organisation's
objectives. So long as nothing goes wrong, nothing is said; but if it
does, they are blamed for not sticking to the rules.
Not true
o
Very true
.1
.2
.3
.4
12. The pay system is inadequate and unfair. Rewards are allocated
through favouritism rather than according to competence.
Not true
Very true
.1
..2
.3
.4
13. People are primarily controlled by censure and punishment and

motivated by pay and fringe benefits.
Not true
o
...
Very true
1
3.
4...
14. Employees' real interests lie outside the work environment; work
merely provides a means to an end and is not the end itself.
250
--- -
........
- -,------

Conflict, Culture and Problen) solving
-------
--...............--
Not true
o
VeI}' true
.1
.2
.3
.4
15. Seniority is assessed by length of employment with the company

rather than by how many courses you have taken. In reality
formal qualifications are more of a handicap than an advantage.
Nottrue
o
.1
.2
.3
.4
VeI}' true
5
16. Change is often talked about but rarely attempted. The middle
management prefer the traditional way of doing things.
Not true
o
VeI}' true
..1
..2
.3
.4
:..5
17. We seem to be always one step behind our main competitors.

Not true
o
VeI}' true
.1
.2
..3
.4
18. There is a strong feeling of 'them' and 'us' between management

and employees.
Not true
o
VeI}' true
.1
.2
.3
.4
19. Most people within the organisation see their involvement as a job
rather than as a career. What is more, the powers that be show
little interest in the development of the individual and his or her
future career.
251
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Project ~ManagementSkllls
Conflict,Culturesnd Problem solvng
Not true
Very true
.1
..2
.3
.4
20. No steps are taken to prevent problems from occurring. When

problems do emerge, they are dealt with by 'fire fighting' methods.
Not true
Total
Very true
.1
.2
..3
.4
How to interpret your score

Add up the scores. The total indicates the likelihood of people in your
organisation resorting to getting even.
0-24
This score is representative of healthy work relationships, with a
management which is aware of the need for effective two-way
communication between themselves and their staff. The dominant
managerial style can be characterised as 'selling' rather than 'telling'.
This style has probably already encouraged innovation and a shared
concern for efficient production and service.
Occasional disagreement will be dealt promptly and constructively.
Both formal and informal channels of communication are used to avoid
the escalation of discontent. The causes of disagreements and
possible conflict situations, no matter how trivial, are taken seriously.
The likelihood that people in your organisation will resort to
unconventional practices is relatively small. Discussion and negotiation
in a friendly environment seem to be the order of the day and are
routinely used to resolve differences. Occasional and of non-cooperation and misuse may be observed but these are often attempted
by new recruits who have not yet become fully socialised into the
system.
Project ~~n~gement $kills

Conflict, Culture and. Problem solving
~---
The prevailingstyle for conflict-expressionis open, and whilethe

danger of destructive practices is minimal,the management should not
succumb to over-confidence.
25 - 49
This score indicates that differences between individuals and groups
on both sides, management and staff, have led to the occurrence of
'accidents'. Institutionalised channels of conflict-resolution are viewed
as inadequate or unworkable. The nearer your score is to 50 the more
likely this is to be true of your organisation.
The established procedure for conflict-resolution is probably lengthy
and time-consuming. The distance that is created between
management and staff has probably led to the gradual formation of a
'them' and 'us' situation. This unhealthy state of affairs will probably be
aggravated by a lack of concern and urgency on the part of senior
managers for increased involvement of the staff in the management of
the work organisation. Training and development needs to be
introduced at both the operational and top management levels in your
organisation.
The low incidence of institutionalised conflict-expressions such as
strikes and absenteeism does not necessarily mean that aII is well.
Indeed this may indicate the possibility of the formation of an informal
procedure and of the kind of culture that approves the use of covert
unconventional practices in order to remedy the ills of the organisation.
Unconventional practices such as pilferage and misuse are already on
the menu. However, minor cases of destructive practices should act as
warning signs of trouble ahead.
50 - 74
This score clearly indicates 1055of control and the presence of an
ineffective work design. Phrases such as 'We stil! manage' indicates
that the management is resorting to ad hoc strateg ies to retain some
control. Scapegoating is used to deter others from unconventional
practices. This often only makes things worse.
75 - 100
Scores within this range are a clear sign that your organisation is in hot
water. Production-orientatedleadership, lack of concern for people,
inflexibility and ineffective communication have created a statement in
I-
253
---

which trust between managers and staff has either been lost ar is in
the process of disappearing. Excessive exercise of contral and the use
of one-way communication ('telling' rather than 'selling') have created a
tense and frustrating work enviranment.
5.3
Organisational Cultures and Conflict
Prafessors Wilson and Rosenfield (1990) in their book "Managing

Organisations" suggest that organisations are complex social systems
which can be defined a(1dstudied in a number of ways. Organisations
can be viewed as machines, Organisms and Brains (see Perspectives
an Management).
One of the most interesting metaphors used ta explairi organisations is
that of cultures.
"Organisations as complex system, made up of their own
characteristics, sets of ideologies, values, beliefs, rituals and
systems of beliefs and practices. Atlention to specific aspects of
social development helps to account for variation amongst
organisations.
Work Cultures
Roger Harrison has identified faur work cultures, which may ca-exist
with the organisation. Each with its own characteristics, strengths and
weaknesses. Prafessor Handy believes that aIIfaur cultures are
necessary and are suitable for different organisations, depending an
factors such as size, tradition, nature of the task and geographical
position.
It is also argued that those who have a tendency and preference for a
particular culture usually feel satisfied and happy ta work in an
organisation with dominant culture which is similar ta them. However,
the individual who finds them in an organisation that is not identical ta
theirs often experiences conflict and dissatisfaction at work.
For effective project management it is essential ta ensure that the
project organisation is designed based an "task-culture" rather than
the "rale-culture". Project managers who prefer to work in task ar
power cultures often make a suitabie praject manager. Can you guess
why?
254

Conflict, Culture and Problem -solving
Organisational Cultures
Culture
Power
Symbol
Description
Web or Wheel
Control exercised from the centre.

Decisions taken on influence rather
than procedural grounds. Few rules.
Individual more important than
position.
Role
Temple
Organisation rests on functions or

specialities. Role more important
than individual. Many rules and
procedures. Provides security,
predictability and accountability
Task
Net
Culture based on fulfilment of

specific goals. Free of rules and
procedures. Expert power important.
Flexible team culture but difficult to
control.
Person
Cluster
.
..
.. .
O
255
Organisation exists for the good of

the people within it. No superordinate organisational goal. Control
and management only by mutual
consent

5.4
Modes of Dealing with conflict
It is generally agreed that conflict constitutes an inseparable aspect of

the work organisations. Differences in the ways we perceive the
'reality', indicates the pluralistic nature of the organisations. Clashes of
interest are inevitable. For the managers, it is vital to acquire the
necessary skill to 'deal' with conflict effectively.
The Thomas-Kilmann (1975) Conflict Mode Instrument is designed to
assess the ability of managers in terms of conflict handling as well as
enabling you to judge the appropriateness of conflict behaviour modes
available to you. It provides the managers with a series of statements
which each describe a situation related to handling conflict. The
analysis of the preferred statements reveal the "preferred" style of
conflict handling by the managers involved. These are:
Competing
Competing is assertive and uncooperative - an individual pursues his
own concerns at the other person's expense. This is a power oriented

mode in which one uses whatever power seems appropriate to win
one's own position - one's ability to argue, one's rank, economic
sanctions. Competing might mean "standing up for your rights",
defending a position which you believe is correct, or simply trying to
win.
Accommodating
Accommodating is unassertive and co-operative - the opposite of
competing. When accommodating, an individual neglects his own
concerns to satisfy the concerns of the other person; there is an
element of self-sacrifice in this mode. Accommodating might take the
form of selfless generosity or charity, obeying another person's order
when one would prefer not to, or yielding to another's point of view.
Avoiding
Avoiding is unassertive and uncooperative - the individual does not
immediately pursue his own concerns or those of the other person. He
does not address the conflict. Avoiding might take the form of
diplomatically side-stepping an issue, postponing an issue until a
better time, or simply withdrawing from a threatening situation.
I
256
j
Conflict, Culture and Problem sOlving
Collaborating
Collaborating is both asserting and co-operative - the opposite of
avoiding. Collaborating involves an attempt to work with the other
person to find some solution which fully satisfies the concerns of both
persons. It means digging into an issue to identify the underlying
concerns of the two individuals and to find an alternative, which meets
both sets of concerns. Collaborating between two persons might take
the form of exploring a disagreement to learn from each other's
insights, concluding to resolve some condition which would otherwise
have them competing for resources, or confronting and trying to find a
creative solution to an interpersonal problem.
Compromising
Compromising is intermediate in both assertiveness and cooperativeness. The objective is to find some expedient, mutually
acceptable solution that partially satisfies both parties. It falls on a
middle ground between competing and accommodating.
Compromising gives up more than competing but less than
accommodating. Likewise, it addresses an issue more directly than
avoiding, but doesn't explore it in as much depth as collaborating.
Compromising might mean splitting the difference, exchanging
concessions, or seeking a quick middle ground position.
Since "Conflict Situations" are situations in which the concerns of two

people appear to be incompatible, we can describe a person's
behaviour along two basic dimensions: (i) assertiveness, the extent to
which the individual attempts to satisfy his own concerns, and (ii) cooperativeness, the extent to which the individual attempts to satisfy the
other person's concerns. These two basic dimensions of behaviour
can be used to define five specific methods of dealing with conflict
These five "conflict-handling modes" are shown below:
257

Diagram : Conflict Handling Modes
Assertive
Competing
A
s
s
e
r
t
i
v
e
n
e
s
s
Collaborating
Compromising
Unassertive
Avoiding
Uncooperative
Accomodating
Cooperative
Cooperativeness
Source: Thomas - Kilman
Conflict Mode Instruments (1979)
5.5
Encouraging Creative Thinking and Generating Solutions
.
.
Everyone has the ability to think creatively

Creative thinking can be encouraged
When faced with a problem many managers react with a decision

which proyides an obvious or satisfactory answer to the problem. But
there is generally more than one possible answer to any problem and
the obvious solution is not necessarily the best solution.
258
Conflict, Culture and Problem ~olving
Generating a variety of alternative solutions to problems involves

thinking in a free-ranging or creative way.
Selecting the 'best' solution which satisfies the objectives you are
trying to achieve within the constraints of the problem situation
involves narrowing down or refining the alternatives to arrive at a
feasible solution.
Finding solutions to problems should therefore involve two processes:
1. Creative thinking to generate as many ideas as possible regardless
of their feasibility.
2. Analytical thinking to reduce these ideas to a smaller number
eventually arriving at a feasible solution.
By combining these processes you can improve the quality of your

decisions and resolve problems more imaginatively and effectively.
Encouraging creative thinking
Everybody has the potential to think creatively. It rarely involves

inventing completely new ideas. Most creative solutions to problems
incorporate existing ideas which have been combined in a unique or
imaginative way.
There are four things you can do to establish the right conditions for
generating more creative solutions.
1. Approach the problem with an open mind. Avoid the tendency to
relate the problem to a similar problem which you have
experienced and apply the same solution. Treat each non-routine
problem as a new problem.
2. Suspendjudgement. Avoid reacting to problems with an immediate
and obvious solution. Allow time to generate as many ideas as
possible around the problem before evaluating the ideas to select a
feasible solution.
3. Be prepared to take risks. Most of us try to conform by meeting the
expectations and reflecting the views of those around us. We try
. not to appear foolish by suggesting what may appear to others as
.silly'
ideas.
4. Involve others who don't own your problems. Share problems with
subordinates or others in your organisation. Their non-ownership of
259

a problem should enable them to produce ideas which are at the

very least different from yours and could help you reach a better
solution.
Exercise
Involving others in restating the problem
A major barrier to finding solutions to problems is often the

problem itself or more precisely how the problem is seen by its
'owner'.
Your involvement with problems inhibits your ability to view them

in different ways. Even if you try to restate the problem it is
unlikely that you will be able to develop as many new ideas
yourself as you could if you shared the problem with others.
This activity requires you to develop restatements of a problem
within a small group and to review the value of these
restatements as a basis for enabling you to see the problem
differently and point to new and more creative solutions.
1. Think of a recent or current problem facing you at work. Briefly
state the problem at the top of a sheet of flipchart paper.
2. Form a group of four and establish an order of presentation.
Spend two minutes explaining your problem to the group and
then allow three minutes for the other participants in the group
to restate the problem, starting each restatement with How
to...'. Every restatement should be accepted without comment
or criticism from yourself or other group members. List the
restatements on your flipchart sheet.
3. After completing the restatements of each of the group

members' problems, move away from the group with your
flipchart sheet and read through the restatements on your own
and consider the following questions:
Has this process enabled you to see the problem in a

different light?
Do any of the restatements either individually or in

combination suggest ways of solving the problem which you
would not have considered?
260
---
- --

Conflict, ,Culture and Problem ~solving
Case Study
Organisational Culture
In the west part of Romania there is an old and famous company

called "ABC Industry" which is a manufacturing firm belong to a wellknown family. It produces products type A, B and C. It is a big
company employing about 6,000 workers. The company just
celebrated its 60lhanniversary and they have been very proud that
tradition of a strong and disciplined technology has been kept over
these years. Their old products are still needed on the market and only
some minor technological improvements were needed to keep the
prices low.
The economic environment is changing and the company should keep
the pace in order to stay in business.
The General Director, Mr. Ionescu, is an open-minded and dynamic
person who recently attended some management training sessions
and is aware that such scarce economic conditions should be carefully
approached. His team of deputy managers is mostly consisting in very
experienced and old engineers.
He started a thorough analysis of the existing situation in the company
and was about to solve most of the technological problems. But there
was one particular problem for which he decided to ask for
professional help - the people problem.
A group of HR consultants carried out a cultural audit and tried to
identify the preferred behavioural styles of people. They applied a
specific questionnaire on a representative sample of the population in
the organisation and at the end of study they identified some particular
issues:
:r
One of the preferred behavioural styles was the conventional one

- Le. people tend to follow existing regulations and seek for
approval where written regulations are missing, rather than to
take initiative and solve the problem;
)o- Even more a very low willingness was found to take responsibility
for any action;
);.
Seeking for achievements and self-development was not a strong

behaviour of people in this company either.
261
- - ----ProjectManagement
Skills
Conflict, Culture
- --and
-- -Problem
-- solving
Problem:
A. Being known from theory that the organisational culture is

significantly influenced by the leadership style of the top manager,
please try to identify which of the following leadership approaches
the Director General of the company usually took:
Autocratic or democratic?
Visionary/enabler or controller/manipulator?
Please comment and support your opinion.
B. Please indicate what changes in the top manager leadership style

are needed to get people more involved in the expected change
process of the company and why?
Solution guidelines:
concepts presented in the Culture Chapter could apply;
As a potential answer for the first question you could identify that
even stated as an opened manager, the Director General was
managing the company in an autocratic and controller style people are expected to obey the existing rules and punishment is
prevailing reward for people's performance;
As a potential answer for the second question you could identify

that the Director General should really change his leadership style.
Starting by involving people in solving problem, encouraging
initiative and empowering people to make decisions for their own
local problems - this means that his new leadership styles should
be democratic and enabler;
Sharing his views, objectives and values with aII employees,

improved communications - would help changing their attitude as
well.
262

Management of Change_
6.
ManagementofChange
How managers can prepare themselve and their

organisation for inevitable changes
The process, the consequences and sources for

resistance to change
How to manage change
An exercise on assessing the situation for

implementation of a change
.
.
A case study on the change process

A practical tool for change: The Action Plan
263

Managementof Change
The world within which organisations have to survive is tOday,more

than at any other time, characterised by change. Technology is
advancing, customer needs are changing, pressures from
government, trade unions and competitors are increasing. Within
organisations themselves, the needs and goals of employees are also
on the move. No longer can organisations rely on the methods,
products and structures of yesterday. the constant need for change,
and the effective management of such change poses probably the
greatest challenge to organisations that they will ever have to face.
Organisational change, by implication, involves change at group and
individuallevel too. Ultimately, an organisation will not be able to adapt
itself successfully to a new situation, unless it can influence the
behaviour of its members. Wherever the need for change is
recognised within an organisation, and wherever the precise nature of
such change is formulated, eventually it will be up to the 'peoplemanagers' to create the right environment for organisational change.
This means that they have a key role to play in the management of
change in organisations of the future. AII this mean that managers will
need to be able to introduce and to manage change and gain the
commitment of their teams. They must become Change masters,
helping and guiding the organisation, its management and aII who
work in it to manage and, indeed, to exploit and triumph over change.
Change is inevitable. How, therefore, managers should prepare for it
and how should you manage it as it happens? To answer these
questions, you need:
. A clear understanding of the change processes and the factors

and forces that produce change
6.1
Anticipate the consequences of bringing about planned change

and assessment of its impact on the individuals and the
organisation.
Consider the difficulties of having change accepted; the resistance

shown to new ways.
Ability to manage (plan, implement and maintain) change
The Process of Change

Change occurs in an organisation because of internal and external
factors. Changes in the environment which affect the enterprise are
often unpredictable. You can try to predict their size and impact and
prepare plans to meet them, but, for example, no model of the
economy has yet been made that can reliably forecast the rate of
264
Project Ma.nagement Skills

inflation for more than 12 months ahead.
Internally, changes may take place in the company's product ar
service, the technology it uses, the people it employs, and its
structure, which inciudes ownership as well as organisation.
Internal and external factors interact in a complex manner. Corporate
planners make lots of noise about analysing external threats and
opportunities and internal strengths and weaknesses. But it aII boils
down to crystal baIIgazing in the end. A wise man constantly expects
the unexpected.
Organisations and the people in them would like to remain in
equilibrium but cannot. Forces acting an them regularly create
imbalances which disturb the pattern. This creates a demand for
opposing forces ta restore equilibrium.
Projects are the very vehicle of change and they are brought about as
a part of deliberate planned programmes for development. Projects,
during and after implementation disturb the status quo and thus
require careful consideration and management. Since people are
involved in project cycies of activities and are also affected by their
impact, attention should be paid ta their role as initiators,
implementors, maintainers and resisters to change.
Planned Change
A development programme, a project ar even an improvement in the
ways things have been carried out in the work organisation involves a
three phase process of behaviour modifications.
1. Unfreezing - disturbing the present position, reducing forces which
maintain behaviour in its present form, recognising the need for
change so that change can take place (identification, preparation
and initiation of change processes).
2. Movement - Developing new behaviour, attitudes and implementing
change (implementation).
3. Refreezing - Stabilising change at the new level, reinforcement,
support and making sure the changed behaviour and attitudes
remain.
265

Managementof Change
6.2
The Consequences
of Change
If not properly managed, change can lower morale, motivation and

commitment, and create conditions of conflict within an organisation.
Change can create instability and ambiguity, and replace order and
predictability with disharmony and surprise. The corporate culture, can
produce solidarity and meaning, and can inspire commitment and
productivity. But the culture can actively and forcefully work against an
organisation when change becomes necessary.
Some people welcome change as a challenge and because it brings
variety to their lives. But most people resist it to a greater or lesser
degree, and therefore we must explore why this resistance exists
before we can discuss what can be done about it.
6.3
Resistance to Change
Change is often resisted despite the potential for positive outcome
both at the individual and organisationallevels. Resistance to change
appears to be a common phenomenon. People are naturally worried
about change. ToffIer in his book 'Future Shock' observes,
"Among many there is an uneasy mood - a suspicion that change is
out of control" (1970, 27)
Preference for stability

Human
'oe'mgs genera))y
see'K s'ta'oi\ity. Tne fITs't reac'tion 01 mos't
people affected by change is to try and regain their equilibrium.

Habit
People respond to situations in an established and predetermined
manner. Habits may serve as a means of comfort and security, and as
a guide for easy decision making. In short, once habit has been
formed, it often provides comfort, satisfaction and predictability of
order and control.
Conformity
Most people like to conform to the customary and expected ways of
behaving; they are able to work together because each knows what to
expect from the other. If anything diverging from the accepted norm is
266
Project Management Skjlls

Managementof Change
introduced into the environment it will be disruptive.
Threat to economic interests or prestige
This is perhaps the most obvious source of resistance. People tend to
view the change as a threat to their economic interest as well as their
status in their organisations. In developing economies, people are vary
of change and its consequences. Often, the financial and economic
aspects related to change creates insecurity and a threat to one's
survival.
When we talk about resistance to change we tend to imply that this is
an irrational behavioural tendency. There is a general assumption that
management is always rational in changing its direction or modifying
its objectives to achieve its goals better, and that operators are stupid,
emotional or irrational in not responding in the way they should. But if
an individual is going to be worse off explicitly or implicitly in any way
when the proposed changes have been made, any resistance is
entirely rational in terms of his own best interest. The interests of the
organisation and the individual do not always coincide.
Misunderstanding
People may not understand the implications of change (see the case
study) and believe that it will cost them much more than they will gain.
Such situations often occur when there is a lack of trust between the
person initiating the change and the employees.
Different perceptions
Resistance to change also takes place when the expected goals,
norms and values of management are in conflict with those of
employees. The change is then perceived as a threat to familiar
patterns of behaviour. If it is also perceived as a threat to the security,
income, status, authority or personal circumstances of an individual it
can be regarded with suspicion, fear or even open hostility. These
reactions may well occur if people feel in any way that they are going
to be worse off, even if their fears are without foundation.
People may assess the situation differently from their managers or
those initiating the change and see more costs than benefits resulting
from the change, not only for themselves but for their company as
well.
267

Managementof Change
Fear of the unknown
Change often happens in conditions of unaertaintyand can itself
create feelings of uncertainty. Fear of the unknown is likely to happen
when the situation creates ambiguities in:
Goals - people not being clear about what they are supposed to
achieve
Data - information about the situation and its likely effects is

absent, unclear, changing or confused
Roles - lack of clarity about authority and responsibility and how the
individual fits into the new set-up
Methods - lack of clarity about the means required to achieve the

ends
Criteria - no means of judging whether or not the change has been

introduced successfully and the objectives of the change
programme have been achieved.
What management in general and individual managers in particular

should always remember is that resistance to change is a natural, not
an unnatural, process. Change is a threat to familiar patterns of
behaviour as well as to security, status and financial rewards.
6.4
Managing change
Change management is one of the biggest challenges that executives
have to face.
Nowadays successful management of change is the responsibility of
managers. New ideas and innovations should not be perceived as
threats by members of the organisation. The effort made by
management to maintain the balance of the socio-technical system will
influence peoples attitude, behaviour of the individuals and groups and
the level of organisational performance and effectiveness.
Managers must consider "forces" for and against change to achieve a
healthy field of change forces (see diagram).
I
268
proje.ct Management Skms

Diagram: Organisational Change

Quasi-stationary
equilibrium
(habits, customs,
norms)
Driving forces for

change
Restraining forces
against change
1
Ilmprovement
Forces
for
Stability
Growth
Development
Learning
Predictability
Acceptability
Maintaining loose
boundaries
Problem-solving
Avoiding procedures,
rules
Accomodating
forces
new
Forces
for
Seen
as
I Valuingprocedures,
I
~
rules
Guarded, questioning
new forces
.
~Yes, OK'
Often I 'How do we get out
say
of this mess?
Reaction
Traditional-orientated
Resistant-stabilizing
Conservative
Practical
REALlTY
Cautious
OF
Exclusive
BEHAVIOUR I
Like the old way
OF A
Maintaining
light
SOCIAL
boundaries
SYSTEM
Understandingl
clarifying
Seen
,Inclusive
as +- Like the new way
comfortablenessJ
Pro-active
Future+orientated
Unstabilizing
Radical
Imaginative
Adventurous
'We aren't keeping

up with the times'
1. 'Yes, but'
'How did we get into

this mess?'
'We mustn't move
too fast'
Often
say
AIIforces are equally desira bie for a healthy field

Field of change forces
Saurce "Adapted fram Smith et al (1987) "Intraducing
Organisatianal Behaviaur" Macmillan Educatian
269

To manage change you need to:
.
.
.
.
.
.
Understand the basic mechanisms of change

Develop the change programme
Analyse the forces affecting change
Take steps to overcome resistance to change
Gain commitment to change
Accelerate the pace of change.
Programming change
A change programme should incorporate the following processes:

1. Setting goals and defining the future state or organisational
conditions desired after the change.
2. Diagnosing the present condition in relation to these goals.
3. Defining the transition state activities and commitments required to
meet the future state.
4. De\lelcpingstrategies ano acticn plans ~crmanaging this traf\siticf\
in the light of an analysis of the factors likely to affect the
introduction of change.
Analysing the forces affecting change

Those wanting change should be constant about the ends but they
may have to be flexible about the means. This requires them to
understand the forces likely to resist change as well as those creating
the need for change.
This can be done by analysing the .helps' and .hindrances' to change

and then exploiting the former and overcoming the latter.
This process is sometimes called field force analysis, and it involves:
1. Analysing the restraining or driving forces which will affect the
transition to the future state. These restraining forces will include
the reactions of those who see change as unnecessary or
constituting a threat.
270

2. Assessing which of the driving or restraining forces are critica!.

3. Taking steps both to increase the critical driving forces and ta
decrease the critical restraining forces.
When analysing the potential impact of change in one part of the
organisation, it is necessary to consider not only how it directly affects
the people in that area but also to take a helicopter view of how the
proposed changes will affect the organisation as a whole.
In making this analysis the individual introducing the change, who is
often called the 'change agent', should recognise that new ideas are
likely to be misunderstood and make ample provision for the
discussion of reactions to proposals to ensure complete understanding
of them. It is also necessary to try to gain an understanding of the
feelings and fears of those affected so that unnecessary worries can
be relieved and, so far as possible, ambiguities can be resolved.
Overcoming resistance to change

While people often take an antagonistic or negative attitude to change,
it is also true that the desire for new experience underlies much of
human behaviour. This fact will help you to overcome resistance to
change.
People come ta accept change in three ways:
Compliance, ar 'do it because I say so'. The individual accepts the

change because he has to, He does not necessarily believe in what
he has ta do.
Identification, ar 'do it because I do it'. The individual defines his

own beliefs and actions in terms of what someone else is ar does.
Identification is like compliance in that the individual does not agree
ta change because it is satisfying, It differs from compliance,
however, in that the individual actually believes in the opinions and
actions he adopts.
Intrinsic satisfaction, ar 'do it because it is worth doing'. The

individual accepts change because the new situation is intrinsically
satisfying ar because it is in accordance with his own set of values.
He may be influenced by others in forming this view, but ultimately
he accepts the change because he likes it rather than because
someone else likes it.
271
"""'...-..............---Proj~t Management Skills
--
Resistance to change will be less if:
Those affected by change feel that they can accept the project as
their own, not one imposed upon them by outsiders
.
.
.
The change has the wholehearted support of management
The change offers the kind of new experience which interests

participants
Participants feel that their autonomy and security are not

threatened
.
.
.
Participants have jointly diagnosed the problems
The change accords with well-established values

The change is seen as reducing rather than increasing present
burdens
The change has been agreed by group decisions

Those advocating change understand the feelings and fears of
those affected and take steps to relieve unnecessary fears
It is recognised that new ideas are likely to be misinterpreted and
ample provision is made for discussion of reactions to proposals to
ensure complete understanding of them.
Gaining commitment to change
.People support what they help create.' Commitment to change will be

greater if those affected by change are allowed to participate as fully
as possible in planning and implementing it. The aim should be to get
them to .own' the change as something they want and will be glad to
live with.
Getting involvement in the introduction of change will only be effective
in gaining commitment when management is prepared to listen and to
change its plans if there is a clear message that they are unworkable,
or if the plans could be made more acceptable without prejudicing the
achievement of the objectives of the change programme.
272

Management of Chc;mg-e
.' - - ---
Accelerating the pace of change

The steps outlined above to gain commitment to change are an
essential part of a change management programme. If they are carried
out properly the further actions required to accelerate the pace of
change are as follows:
1. Agree tirm objectives, that is an agenda for change'.
2. Determine success criteria and detine methods of measuring
performance and progress towards achieving the objectives, both
short- and long-term.
3. Provide an environment of support in which recognition of
achievements to date will reinforce confidence to do more.
4. Deliver visionary leadership which encourages people to be bold
and innovative and harnesses the ideas and talents of employees
in the search for better ways of doing things.
5. Ensure the full collaboration and partnership of aII resources in the
business.
6. Generate a widespread attitude among aIIemployees that
encourages commitment to innovation and change by:
conducting personal brietings on the proposed changes

cascading down through each level in the organisation to cover
aII employees. This is better than simply issuing pieces of paper
which may only generate a '50 what' reaction;
conducting workshops in which groups get together to discuss,

analyse and interpret the proposed changes. These should be
treated as opportunities for employees to become involved in
planning change as well as implementing it;
introducing educational and training programmes which allow

plenty of time to get the various messages across and to
discuss their meaning and application fully.
213
.Project Management Skills

Exercise: You and your organisation.
Read the statements 1 - 7 carefully and rate your organisation's
responses on the scale provided. Then, consider statements marked A

- G and this time rate your own responses on the scales provided.
Organisation
(1)
Those around you 'Yes
(D)
Those around you

encourage new
ideas
...but" ideas 10dealh
(A)
Yourse/f
10
I am mentally
retired
I love my
job
(5)
10
The match betwen

individuaJ's values and
those of the organisation
is
I tend to kill off ideas
I encourage myself
and others to come
Poor
Good
up with new ideas
10
The Customers
World
(E)
(2)
10
The match between my

values and those of the
organisation
We provide
what the
customer
wants
We are geared to
providing what we want to
provide
10
Good
10
(6)
(8)
I'm inclined to see
things from my point of
view
Poor
is
I am good at
seeing things
from other's
points of view
10
274
Rigid fingers
abound
Individuals
show high
levels of
initiative
People feel
disempowered
10
-- -
Managementof Change
(3)
The organisation tends to be
Problem-solving
focused
(F)
I feel
disempowered
Opportunity focused
10
I take a lot of
initiatives
10
(C)
lam
(7)
Problem-solving
focused
Opportunity focused
People's
minds are
fairly set
People are very

good.at "thinking
afresh"
10
(4)
(G)
Many of our people

are mentally lired
10
Our people are

very well-matched
10Iheir jobs
10
My mind is
fairly set
I am very
good al
"Ihinking
fresh"
10
Now compare the final responses of your 'organisation' and 'yours'. If

your organisation response to change is rated higher than yours, there
is potential for change in your organisation and you will be supported if
you wish to bring about change and improvement. However, if your
score is higher than your organisation's, you feel frustrated because
you recognise the need for change but your organisation does not.
Can you convince your colleagues, peers and superiors that change is
necessary?
275

Exercise:
Assessing the situation for implementation of a change
This activity provides a framework for you to explore the issues which
were raised earlier, especially, "What would be the requirement for
bringing about change in your organisation?"
Think of a situation which requires a change, then answer the following
questions as honestly as you can. You may consult with others after
completion of the exercise and explore their views.
a)
What needs to be done in order to ensure change is taking place?

Se as specific as possible.
b) Who needs to do what? This includes you and your staff

Again, be as specific as possible.
c)
For each of the above actions identified in (a) establish a realistic

deadline for their completion. Calculate the overall time scale for
introducing the change itself.
d)
Finally identify ways in which you will be able to assess the

degree that is satisfactory for implementing the particular change
in question
Important: From your answers in section a) and b) can you identify

the degree of resistance to change in question? If yes,
how would you intend to deal with them?
276

Management of Chanf!.~
- - - --
Case study
Change Process
Restructuring is becoming increasingly a familiar theme of aur time.
But why is it needed and how ta bring it about seems not ta be sa clear
aII times. It applies ta botll industry and ta public administration alike.
Ion and Maria are working in the same ministry and they also live in
the same neighbourhood. One day, going back home they were
arguing about the most recent news - that their ministry will be
restructured too.
Nobody formally informed about the change. The rumour was a
powerful one and was supported by the concerned attitude which was
shown by their directors.
Ion is a very experienced civil servant working for a long time in this
ministry. He has never enjoyed abrupt changes. That is why he was sa
concerned about his future. Maria is much younger and she has just
graduated from a training programme - management skills for public
servants. She is always seeking new perspectives and new
opportunities. There is a potential for her ta be promoted as a result of
the proposed changes.
None of the two knew what ;'ministry restructuring" could be like but
aII they knew was that some redundancies were expected. Ion was
always considered as one of the best experts in his field of activity and
he was therefore not particularly worried about loosing his job. He
always felt comfortable and satisfied in his position. Maria was
satisfied with her current work as well and the opportunity ta develop
new projects in the ministry was a challengingjob. As she heard from
some colleagues, new departments are going ta be set up and new
middle management positions will appear. Such an early promotion
would be seen as the recognition of her professional expertise and
continuous efforts ta satisfy her bosses.
Their argument was not fruitful at aII and therefore no agreement could
be seen in sight. Maria was trying ta convince Ion that nothing wrong
could come out from the proposed restructuring process and both of
them could be promoted as heads of the new departments.
On the other hand, Ion heard nothing about new departments and
promotions and - according ta his previous experiences - restructuring
was always followed by redundancy due ta more restricted budget.
277
,project Ma.nagement Skills

Managementof Change
Maria's desire to be promoted was too strong, so she was could not
understand the concerns of Ion who was far more experienced than
her.
lon's fear was that his specific expertise could be no more needed.
Maria's private fear was that Ion could be right and no promotions will
follow as a result.
In fact, the actual restructuring programme was about harmonisation
of the Romanian Ministries' and their organisational structure with
those in the Western European countries in order to expedite the
European integration process. Neither the formations of the new
departments nor redundancy were particularly sought.
Problem:
What do you expect to be Ion and Maria's attitudes when recieving

more details about the change?
Will they resist to the change process? Please expand on your

opinion.
What is the most appropriate approach to get their commitment and

co-operation to their new tasks?
Solution and Guide Lines:
concepts presented in the Change Chapter which could be applied
to the above situatuin. Assume that both characters - Ion and Maria
- will resist to change when finding out the real objective of
proposed restructuring programe;
Try to identify the potential source of their individual resistance usually misfit of individual expectations with organisational goals;
Try to understand that in this case as well as in others, resistance

to change could be overcome if:
change objectives and their benefits are well communicated;
people understand that change risks are minimised by a proper
change management;
people in the ministry (or any other organisation) will share the
same values.
278
Managementof Change
6.5
Action Plan: A Managerial Tool

What is an action plan?
Action planning is an essential element in the process of learning or
accomplishing.
With small tasks or problems it is often an automatic process. There is
often no need to verbalise or make conscious this process and with
bigger problems or tasks. Automatic systems are rarely adequate.
Sometimes, encouraged by their success with small, perhaps
mechanical tasks, people will jump into action before they have
planned sufficiently. This may lead to them to neglect big issues in the
course of solving many small ones. Another mistake is to think and
plan rigorously, but neverbe quite ready to get down to action.
These problems occur when one is personally faced with a large task.
In joint endeavours with other people, action planning is usually a
formal requirement built into minutes or agreements. This is a form of
contract between the people involved, the minutes or record being
negotiated agreement to do specific things at specific times.
Where an action plan doesn't exist in written form, joint endeavours
only flourish where the action plan is recognised and members take
personal responsibility for implementing it.
The essential elements of an Action Plan consists of:
a) setting targets or objectives to accomplish SOmeaction or actions
b) establishing standards of quality or time which act as deadlines and
c) taking or allocating personal responsibility for these actions
When you write an action plan you voluntarily commit yourself to a

course of action which you will achieve to a certain standard or by a
certain date. It is the commitment which is the important aspect of an
action plan. Planning is useless without commitment.
There are five stages:
1.
Setting goals
2.
Establishing sub-goals
3.
Target dates
279

4.
Resources/methods
5.
Standards
Step 1
Use the chart provided at the end of the section and place your
detailed action plan. It has five vertical columns and looks something
like
Goals
Sub-goals
Target
completion
dates
Resourcesl
methods
Standards
Step 2
Choose a problem, or a change situation or task which you are
working on or, preferably, about to start working ono
Write your task(s) in the left-hand column of the Action Plan Chart.
Step 3
Large tasks have a way of looking impossible, which is why most of us
use every opportunity to avoid them. Setting sub-goals involves
breaking up the main tasks into manageable proportions. They are
often also the means by which the major goal is achieved. FiIIin these
sub-goals in the second column of the Action Plan Chart.
280
Manf1gernentof Change..
---
---
Step 4
Setting target dates is straight forward. Set them for your sub-goals
tirst and then estimate the likely date for your overall gaal. You may
have a deadline already, in which case you will have ta plan sub-gaal
deadlines ta help you reach this.
FiIIin target completion dates an your Action Plan Chart. Remember
these are your deadlines failureta achieve them requires explanation
- ta yourself ar ta others.
Step 5
The resources and methods column answers the question:
'How am I going ta tackle this problem?'

'What alternative courses of action are open ta me?'
'What assistance do I need and what can I get?'
FiIIin resources and methods an your Action Plan Chart. In trying ta

complete this column you may discover you don't have sufficient
resources and that you need ta get these before proceeding. If sa,
obtaining these resources then becomes a sub-gaal which precedes
the others.
Step 6
When you have completed the Action Plan Chart, subject it ta critical
appraisal.
Do this yourself ar, perhaps better, get someone who knows about you
and the task, ta do it for you. Examples of the searching questions ta
ask are:
i
I
'Is this gaal really important for your department?'
'Will these sub-goals lead ta achievement of the main gaal?'
'Will those performance standards tell you how well you're doing?'
'Can that time target be shortened?'
You can draw up an Action Plan Chart for any number of tasks ar
goals. It will give you a clear picture of what is involved in the
completion of any complex task and also supply the discipline and
commitment necessary for the completion of that task.
--------

Manage~ent of Change
Table: Sample of an Action Plan Chart
Goals Sub-Goals
Target
Completions
Resource
methods
Standards
i
i
282
1

Working with Others in a Team
7.
Working With Others in a Team
The advantages of a TEAM
How to develop a team
Barriers to project team development
The advantages of quality circles
283

7.1
Introduction
Groups and teams are common features of an organisation's scene.

These include meetings, committees and groups of one sort or
another. We believe that the group possesses attributes distinctly
different from those of the component individuals and its features are
unique. It is a common belief that what a group is capable of
achieving, its constituent individuals are not. Maybe it is for this reason
that groups and teams and their constituent members make an
organisation into a combination of interlocking and interactive systems
working towards the achievement of compatible goals, rather than a
collection of individuals performing different activities and satisfying
solely their individual needs. The very term group implies some form
of common activity, some form of mutual collaboration, although such
expressions as group think' and 'committee' raise doubts about the
value of groups.
What is a Group?
The terms 'group' and 'team' have been used fairly extensively, often
without any attempt being made to detine what has been meant by
these terms.
When we examine the literature, it becomes evident that group
theorists have given different emphasis on group definitions. Some
stress the individual's motivation for the 'formation' of a group; some
detine the group as that which is perceived by its constituent
members; and there are those who believe that the formation and
development of group roles and norms as a 'consequence' of group
processes is of greater importance. Others believe that the detining
characteristics of a group need to be in terms of the .interactions and
interdependence' of its members.
284

Some Definitions
"A group is defined as two or more persons who interact with one
another so that each person influences and is influenced by each
other person" (Shaw 1971 ).
and
A human group is a set of persons amongst whom there exists a
definab/e or observab/e set of re/ations" (Davis 1969)
'~ group is a set of mutually interdependent behavioura/ systems

that not on/y affect each other, but respond to exterior influences as
well" (Cartwright and Zander 1968).
In short, the notion of a group may seem less mysterious if it is

imagined to be eomposed, firstly, of a set of persons, and seeondly, of
a collection of interdependent persons
Types of Groups
Formal Groups: These are ereated by design, by formal authority.

Formal groups are normally permanent, in that they exist and are seen
to exist within the structure of the organisation. A task group or a
project team may be set up to achieve specific activities.
Informal Groups: These groups, as the term implies, have not been
created by design. They may be formed for a variety of reasons,
including ehanee or personal preferenee.
Primary Groups: These eonsist of a small number of people who
perform a eommon task and have regular personal interaetions with
eaeh other. Such groups greatly influence the individual members'
psyehologiealdevelopment.
Secondary Groups. Unlikethe Primary groups, these consist of a
large number of people who do not have the opportunity to have much
social interaetionwith eaeh other.
285

WorkingwithOthersin a Team
Types of Interaction in a Group
Task-Orientated Behaviour: concerned with achieving the tasks or

objectives of the group. For example, solving a problem.
Maintenance-Orientated Behaviour: maintains the moral and
harmony of the group and creates an atmosphere and climate
conducive to worthwhile contributions.
Self-Orientated Behaviour: aims to achieve personal or individual

goals within the group situation. It is motivated by the individuals need
for power or to build alliances, status and prestige, or to protect his or
her self concept and perceived image by others.
Major Purposes for using Groups

1. For the distribution of work. To bring together a set of skills, talents,
responsibilities and allocate to them their particular duties.
2. For the management and control of work. To allow work to be
organised and controlled by the appropriate individuals with the
responsibility for a certain range of work.
3. For problem-solvingand decision making. To bring together a set
of skills, talents and responsibilities so that the solution to any
problem will have aII available capacities applied to it.
4. For information processing. To pass on decisions or information to
those who need to know.
5. For information and idea collection. To gather ideas, information or
suggestions.
6. For testing and ratifying decisions. To test the validity of a decision
taken outside a group or to ratify such a decision.
7. For co-ordination and control. To co-ordinate problems and tasks
between functions or divisions.
8. For increased commitment and involvement. To allow and
encourage individuals to get involved in the plans and activities of
the organisation.
9. For negotiation or conflict resolution. To resolve a dispute or
argument between levels or divisions or functions (in organisation).
10.For inquest or inquiry into the past.
286

Working with Others in a Te-am
Development of a Group to a Team

AII groups go through various stages of development, and a work
team's effectiveness is also a product of how the team has managed
to cope with the problems it faces in each of its developmental stages.
Stu~ies have shown that team development is primarily concerned
with the interactions between individual members to form a cohesive
integrated unit. It is suggested that developing into an integrated and
self-supporting team will involve the following broad strategies.
Assisting the team members to become acquainted
. Helping members to offer feed back. Helping members to establish

criteria
Encouraging members to take part in the running, development and

maintenance of the relationships amongst its members.
Formal groups with specific task to be performed often take the form of
a team. A team's membership is not normally voluntarily with
relationships well described and established
7.2
Developing Teams for Projects

Nowadays, most middle-sized and large firms, projects and almost aII
institutions, are run by small management teams. Each member is
holding a position of responsibility and through him or her efforts
contributes to the effectiveness of the team.
The shift in power and authority away from one individual and towards
a team, amongst many things, is thought to protect the organisation
against corruption and the problem of indispensability of itsleadership.
Team management has become the stabie alternative, a means of
viewing a business and/or a project effectively 50 long as the right
combination of the people can be found. Here we deal with two related
aspects of team management:
.
.
Effective Team Development, and

Team building in project management.
287

7.2.1
Effective Team Development
It is true that a perfect team requires the combination of right

individuals with a selection of desired abilities and characteristics.
However, it is unrealistic to expect that, by simply placing a number of
skilled professional individuals in a group should be expected to
perform as a team. For teams to perform effectively it requires time;
time for team members to be acquainted with each other, to assess
each other's strengths and weaknesses and to reflect whether they
can identify with the values, beliefs, attitudes and general style of their
colleagues, individuals or the whole group.
One of the areas of research critical to both understanding and
developing effective teams is how a disparate group develops into so
effective working team. The human resource group at Cranfield School
of Management examined the problem of how to develop and
stimulate productive teams and has adopted the Team Development
Wheel as a means of training managers to perform as team members.
It was concluded that teams experience four distinct stages in their
development from a group of individuals to a more cohesive unit
These are:
.
.
.
.
Forming
Storming
Norming
Performing
Forming:
At this stage the individual members need to become acquainted and
to know more about one another. Naturally they are somewhat
inhibited. Their behavioural pattern is likely to be 'polite' probably
'impersonal', 'guarded' in disclosing personal or work oriented
information or even offering an opinion. In short they test each others
personalities, professional capabilities and the degree of commitment
to the group and tasks in hand, and more importantly how they should
be carried out.
288

Storming:
Once the group members have gained confidence and started working
on the tasks in hand, a certain amount of 'infighting' is likely to occur.
Leadership of the group is the one which is most likely to induce
infighting amongst the members. The competition for leadership often
leads to a split between the members and conflict emerges.
Differences in opinion leads to taking sides and as a result some team
members may opt out. The overall feeling is that of 'feeling
demotivation' and the 'feeling of being stuck'.
Norming:
How long the storming stage takes is, by and large, dependant upon
the quality of the group's leadership and whether or not the group
members have decided to get on with the tasks in hand. Usually be
doing the tasks allocated to the group and meeting the targets set. The
norms of behaviour and professional practice begin to be established.
The interpersonal barriers begin to disappear though the infighting
may still occur from time to time. Many groups during their
development stage, do not go beyond stage three and regress back to
the previous stage. This is a common characteristic of groups which
cannot agree on leadership or, have not established their group norms
and so on. Such groups need to be identified and assisted so that they
can break out of this vicious circle.
Performing:
Often, the group cannot break away from regressing back to previous
stages and needs help from its leader. A sympathetic leader with
interpersonal skills, counselling and listening skills, who can use those
skills to help members identify with a mission or purpose. A skilled
leader realises that shaping a meaningful identity for the group is the
most likely to carry it into stage four.
Once in stage four, the group becomes more cohesive. Group
members are more supportive of each other's differences. A greater
professional closeness begins to emerge. As a result of utilising each
other's strengths and talents to a greater degree, the team becomes
more resourceful and flexible in its approach to problem-solving and
task performance. The group has matured and is performing as a
genuine team.
The survival of a team depends on many factors: It depends on
whether a substantial number of team members leave the team over a
289
-- -

- - --
---
.......
period of time; the degree of integration of the new members; the

change in direction, objectiveness, mission, purpose and skills
required for carrying out the tasks. Substantial changes in the above
areas may lead to the disbandment of the team and the formation of a
new one.
How to assist in the process of team growth and development.

1. Encourage people of difterent professional backgrounds to become
team members where relevant, e.g., chemists, physicists,
engineers, accountants.
2. Ensure that teams adopt a positive attitude towards the task(s) in
hand by giving it sufficient freedom to make decisions and act with
a degree of independence of the parent organisation.
3. There should be only one accountability line within the team.
4. A team should be relatively small to allow for greater interpersonal
understanding and team cohesion.
5. Attention needs to be focused on the differing demands made on
individuals by their acting in a line capacity as a team member.
6. The team should operate as a multi-disciplinary unit, in an
interdisciplinary style, and co-operate with relevant outside
agencies.
A big problem facing most project team members is the potential
incompatibility between line and team responsibilities. A line manager
may have to reduce the financial resource available to the team.
Practices of this nature creates doubt in the mind of the team
members and may encourage them to question the manager's loyalty
to his or her team.
7.2.2
Team building in project Management
Project managers quickly learn the critical significance of the effective

project teams and the role of team building activities in facilitating
project management performance. Teams have become an
indispensable part of the projects simply because:
Specialist/experts
More organisational members need to be involved in the

completion of specific tasks.
Increasing task complexity and complicated environmental
need to be integrated into a larger task.
290
~--
--""
----...-
Project ManagementSldlls
WorkingwithOthers'ina Team
-----
interfaces mean that people need to work as a team to benefit from

synergy and increased creativity.
Majorbarriers to project team development

The most common major barriers to team-building are:
1. Differing outlook, priorities, interests and judgements of team
members
2. Role conflicts
3. project objectives/outcomes
not clear
4. Dynamic project environment

5. Competition over team leadership
6. Lack of team definition and structure
7. Team personnel assigned to project and not selected
8. Credibilityof project leader
9. Lack of team members commitment
10.Communication problems
11. Lack of senior management support
291

It is recommended that the project leader ought, at the start of the

project, to talk with each team member on a one-to-one ba sis about
the following:
a) What the objectives are for the project

b) Who will be involved in it and why
c) The importance of the project to the overall
organisation/institution
d) The role that each member of the project team is expected to
perform and why
.
e) The following rewards which might be forthcoming when the
project is completed
f) What are the rules of the project that need to be followed, such
as regular review meetings
g) A realistic appraisal of the problems and constraints which are
likely to be encountered
h) The need for team members, participation in project decision
making
i) The challenge that the project is likely to provide for the
individuals involved
j) Why the team concept is so important for success of the project
and bow it should work
It must be stressed that, once a team is effectively developed and has

successfully completed its four developmental stages, it stil! requires
attention. Team building is an ongoing process. The project manager
needs to be continually monitoring team functioning and performance
to see what corrective actions may be needed to prevent various team
problems. Over the life of the project, some problems will inevitably be
encountered by the project team. As these problems are identified and
solved, new ones will emerge. For a project leader, problem avoidance
may not be an adequate strategy, he or she needs problem-solving,
interpersonal and other social and groLipdynamic related skills.
292
--
-- ...
Working wit~ Others in a Team
1"____
7.3
Who Does What in a Group (Team Roles)?

The behaviour of the group members is influenced by a myriad of
factors, some personal others organisational and beyond. It is
commonly believed that if aII members of a group have the same
objectives the group willtend to be much more effective. Never-theless, most people bring hidden agenda to groups. These hidden
agenda can include:
.
.
.
protecting the interests of one's sub-group

impressing one's colleagues, boss etc.
scaring off an opponent
making a particular allegiance
covering up past errors
Therefore, the behaviour of group members is partly influenced by

their own personal objectives. The fact that individuals are different,
and may pursue their own interests in a group may not be such a bad
idea. Indeed, the opposite that too much group cohesiveness can
become so important to each member that the goals of the individuals
are inseparable from the goals of the group. It can blind itself to what is
going on around it. Blinkered, it can forge ahead down quite the wrong
road. Janis describes this phenomenon of group think. To avoid it one
needs the mix of roles as well as the judicious intrusion of outside
comment to keep the group open.
It is important to remember that group members will have one or more
roles, the choice and the casting is almost always unconscious,
accidental and the result of circumstances. Whether the individual's
role is s conscious or an unconscious one, it always influences the
way he or she behaves.
Belbin's Research
Dr. R Meredith Belbin conducted a research project at Henley
Management Centre, over a period of years, examining patterns of
behaviour displayed by group members participating in a management
game. He established that successfully performing groups (teams)
were composed of people who collectively showed a capacity to work
in eight different roles. Belbin analysed people in four main factors,
intelligence, dominance extroversion/introversion and stability/anxiety.
He also discovered that each person has a preferred role and a
293

secondary role which they use. These are as follows:-
.
.
.
.
.
.
.
.
THE CHAIRMAN: One who presides over the team and coordinates its efforts.
THE SHAPER: He is the task leader and in the absence of the

leader. may leap into his or her role.
THE PLANT: He is the source of original ideas and proposals.

THE MONITOR - EVALUATOR: He is able to dissect the ideas
and ensure the flow in an argument.

THE RESOURCE - INVESTIGATOR: He brings new contacts,
ideas and developments to the group, the salesman, diplomat or
liaison officer.
THE COMPANY WORKER: He turns the ideas into manageable
tasks.
THE TEAM WORKER: He holds the team together. He is often not
noticed, but missed when he is not around.
THE FINISHER: He checks the details.
Belbin suggests that depending on the preference the team members

also use specific phrases with which they can be identified (See
Phrase Sheet below).
It is suggested that people prefer to work in one of those roles in a
group situation, and they have some long term stability of role
preference. Preferences are not likely to change very much over a
period of time, but participation in other roles, which are compatible,
for example. Chairman/Teamworker, Shaper/Companyworker. The
question obviously arises, what happens if you have fewer than eight
people? The answer seems to be that as people have secondary team
roles, they can double up when necessary and perform two of the
functions instead of just one; in other words you can operate a perfect
group (team) with four people if necessary.
Conclusion
Individuals are the constituent members of groups in organisations but
the groups themselves make up the social fabric, which is
organisation. Groups provide the vehicle for co-ordinating, meshing
and merging the individuals skills and abilities. They then can be
helped to develop themselves into better contributors within the group
process and to make their work groups achieve higher performance
levels and attain higher individual and group satisfaction.
294
Proj~t Management Skllls

Phrase Sheet
The phrases below are indicative and representative of the kinds of
behaviour associated with each of the Belbin Team Roles:
CHAIRMAN:
"What we are here to do is ..."

"Let's do this first and that later"
"To summarise, the main points seem to be ..."
"Perhaps you could ... thenhe will ..."
"To get back to the main issue, would you ..."
SHAPER:
"What we have to do is ..."

"We're wasting time - we have to ..."
"No - you're wrong - the most important issue
is"
"If we put what you've said with his suggestion
we can ..."
PLANT:
"What about .."

"Let's get underneath that ..."
"It ought to be orange"
"Turning that on it's head gives us ..."
"We mustn't overlook gravitational effects"
"Why don't we go back to basics"
MONITOR/:
EVALUATOR
"The problem with ..."

"We have to watch out for ..."
"Let's not overlook ..."
"If we pay attention to the gist of this we
should ..."
COMPANY:
WORKER
"Given the time we've got, we could .."

"We can certainly do X within our budget"
"Gravitational analysis is a crazy approach ...
but we could put a heavy weight on the bottom"
"Let's get this up on the board"
"If we nail that part down we'lI be more sure of
this result"
RESOURCE:
INVESTIGATOR
"What agreat idea ..

"1know someone who can ..."
"Don't worry - I can get them wholesale"
"Thunder flashes - no problem - my cousin ..."
"1can persuade sales to ..."
295
"""_0>:000""'___'"
'Project Management Skllls

TEAM:
WORKER
"Joe - I think you should listen to Harry"

"Let's give Frank's idea a chance"
"No need to fight about ..."
"Why don't you say more about ..."
"When Fred gets back from the hospital we
could"
FINISHER:
"Let me check that ..."

"We'lI never ... unless ..."
"What about ..."
"No - we must ... everything - to get it to work"
"What about article 3 in sub-paragraph IV,
paragraph G, in the ninth volume?"
"You can't do that - we'lI be a week late"
7.4
Quality Circles
Definition of Quality Circles
Quality circles are graups of workers, usually led by their

supervisor, who meet voluntarily and in their own time to discuss
the prablems they face in achieving qua/ity, or some other
important target. The circle is given training in problem solving
techniques and the resources to solve the prablem it identifies.
The idea of quality circles was developed in Japan. In the UK and

other Western countries there are a number of different methods of
operation but the essential ingredients are the same. The group
consists of five to ten members, and attendance is voluntary. They
may meet in company time. They are usually led by their immediate
supervisor, although the leader is often chosen by the group. The
leader has to be thoroughly trained in how to run the circle. He/she
cannot be too directive but must ensure that the problem is identified
and defined clearly and that analytical problem solving techniques are
used to solve it. He/she must help the group to keep its feet on the
ground and come up with practical solutions, guide the circle when the
agreed answer is being implemented.This role is a key one. Quality
I
296
j
----...
:--
circle members are usually employees doing similar work.

The sequence of events in a typical quality circle is as follows:
1. The members identify problems in their work area, although on
occasions supervisors or managers can indicate problems that
need to be solved.
2. When the problem has been identified the circle agrees a realistic
goal for its activities, such as to reduce defects from 6 to 3 per cent
over a period of three months.
3. The circle draws up a plan for solving the problem using
appropriate analytical techniques.
4. The base data are collected by members of the circle and possible
solutions to the problem are reviewed. Expertise from supervision
or technical personnel can be called on.
5. When a solution has been agreed the circle presents to
management its analysis of the problem and its proposals for
solving it.
6. The circle is responsible for implementing solutions agreed by
management. It monitors results, carries out tests as necessary
and reports on progress.
Requirements for Success
Quality circles are only effective under the following conditions:

1. They are introduced carefully. Pilot tests are essential.
2. A trained and experienced individual (probably an outside
consultant) introduces the scheme.
i
3. Top management fully supports the scheme.

4. The environment and technology are such that the quality circle
groups will have plenty of scope for developing improvements.
5. The management style of the company is sympathetic to this form

of participation.
6. The members of quality circles are trained in problem solving and

analytical techniques.
7. An organizer is appointed to coordinate and monitor the

programme.
297
,..
. Project
Management Skllls

Benefits
Quality circles can help to improve quality and productivity by obtaining
employee involvement and commitment in solving problems jointly,
and making sure those solutions are implemented.
Case Study
Team Management
A number of problems waiting to be solved are the day by day
background of our work. Sometime current and urgent problems
become more important than our basic activity. To rhanage
problem solving in a structured way is considered a real
management success.
This was the case of Mr. John Ionescu - the director of HR
Department. He recently noticed that he is acting more like a fire
fighter than a manager. He decided to take some actions against
this situation. One of the actions was to create a team to solve one
of his most embarrassing problems - reviewing aIIjob descriptions
in the whole ministry and putting them in accordance with the most
recent agreed work procedures.
He was very aware that a number of competencies are needed for
such an important and complex'task. He therefore asked his
colleagues, the other directors to assign one of their employees to
work for this team. The importance of the job descriptions for
carrying out a proper selection and performance assessment
process was a clear issue for aII directors.
In four days time, Mr. Ionescu got a list of twelve persons to work
with his best HR specialist - Mr.Escu- for solvingthis problem.
Mr. Ionescu arranged a team meeting with aII members and
prepared a formal approved document to set the team structure
and task. Mr. Ionescu has been assigned the task to monitor and
assess the team results.
'.
On Tuesday - October 28 took place the meeting and aII members

have been informed about main objectives and deadlines.
Questions have been satisfactory answered and every body was
confident in the full success of this action.
When the tirst deadline came, Mr. Ionescu was out of the ministry
to attend an international seminar in Salzburg. When back he was
too busy to disseminate the new ideas colh~ctedat the seminar so
he forgot to ask for the tirst team results.
298
Project Management SkiUs

Working with Others in a Taam
When the second deadUnecame, Mr. Ionescu arranged a

meeting with aIIteam members to assess,their results. He found
out that some samples of various job descriptions have been
collected from other organisations and specific eompetencies for
each directorate have been identified. But no agreement for the
structure of the new job description has been reached and no
potential progress was expected. A lot of arguing generated an
unpleasant meeting atmosphere.
Mr. lonescu's feeUngwas that the team was not working properly
and he asked himself why. Would a harder control have the
appropriate input on the teamwork? Should he replace some of
the team members?
Problem:
What do you think is the real problem with this team?

Are Mr. loneseu's solutions valid to improve the teamwork?
Solution guide Unes:
concepts presented in the Team Management Chapter could
apply;
Analysing the major barriers to a project team development, you

may see that the project objeetives and outcomes have been
clearlydefinedfor aIIteammembers;
Some other barriers should be investigated as potential failure

causes, such as:
Poor credibility of the project leader -
Mr.Eseu;
Different priorities and interests of team members;

Team personnel assigned and not selected and
Lack of team members commitment;
Please discuss how each of these factors affected the teamwork

success;
299
0tI _
010

~
.
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One other major cause of the team failure could be considered

thelack of Mr. lonescu's involvement in developing the team:
No assistance for the group members to become
acquainted;
No helping members in establishing criteria;
No each step feed-back offered and
No encouraging them to run, develop and maintain proper
work relations.

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