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Building enterprise project management capability 6
Human resource management in
the project-based organisation
by Professor J. Rodney Turner
The first part of this series of articles dealt with
developing organisation and individual project
management competence. In other words how
an organisation can learn to do projects right
and get better at doing them right. Previous
articles looked at:
● organisational project management
maturity and four practices for improving it
● innovation and learning practices
● individual project management
competence; monitoring and developing it
● knowledge management practices and the
role of the community in developing,
maintaining and spreading knowledge.
Underpinning all of this is the people; people
are quite simply essential to the operation of
any organisation, whether project-based or classically managed organisation. However, are assigned and released from projects.
routine. So every organisation must develop project-based firms use temporary
human resource management policies and organisations (projects and programmes) to HRM is different in the project-based
practices to recruit people and to ensure the manage complex business processes, and organisation
right people are assigned to the right job. every time a new project or programme starts HRM is different in project-based
Human resource management is the lynch-pin or finishes, the human resource configuration organisations because additional processes
or key-stone which holds everything I have of the business changes. are required and also because those
described so far in this series of articles Thus project managers ought to be concerned processes which are applied are applied in a
together, Figure 1. with HRM, but many, especially those who are much more informal way (as you will see later).
However, human resource management (HRM) task focused, or those schooled in the systems Because every time a project or programme
often does not receive the attention from approach to project management, do not give it starts or finishes, the human resource
project managers it deserves. Project the attention it deserves. Because project team configuration of the organisation changes,
managers often tend to be task or system members spend much of their time working on HRM process are needed to deal with projects
focused, the nature of projects makes them transient projects, HRM ought to demand much and programmes starting or finishing. Figure 2
that way, and so they do not pay as much more attention from managers at the work shows a simplified HRM process model for the
attention to HRM as they ought. Further, HRM interface than in a classically managed classically managed firm (Huemann et al, 2004).
in a project-based organisation needs to be organisation. There are four processes:
essentially different to HRM in a routine Many project-based organisations are now 1. Recruitment: The firm needs to identify
organisation. In this article, the last in the first recognizing the importance of HRM and are potential people to work for the
part of the series, I describe: providing support to project managers at the organisation, and attract them to the
● the nature of HRM in project-based work interface. The central HRM department organisation. It then needs to appraise
organisations remains the knowledge centre of effective them and select competent people to work
● a cycle for HRM in the project-based HRM practices and processes, but their role is for the organisation. Those people are then
organisation increasingly to give guidance and support to appointed.
● how HRM in project-based organisations the manager at the
differs from routine organisations work interface in
● practices for HRM in project-based implementing HRM,
organisations rather than doing it
on their behalf. Many
The nature of HRM in project-based organisations are
organisations now also giving the
HRM as a core process in the project-based project office an
organisation increasing role in
HRM is a core, value-adding process in the supporting project
project-based organisation. At first sight this managers at the work
may not seem to differentiate the project- interface in working
based organisation from the routine, with people as they
10 PROJECT MANAGER TODAY OCTOBER 2005
until the next for telephone operators told me that it takes
project, and use two years to develop the specialists able to
that time to polish write the software switches to make the
their CVs. Contract specialist services work. Suitable
staff are just spat candidates need to be identified from the
out and leave with resource pool and put onto a development
negative feelings track. Many project-based organizations,
about the firm. from both the engineering and high-tech
Because of the industries, have told me that project
importance I want management is also a value-adding
to attach to this resource that needs to be carefully
process, I have identified and developed.
coined a new word, 2. It is not possible to apply the traditional
2. Development: The firm needs to develop the ‘dispersement’. It is not release from the Taylorian approach to defining jobs. Under
appointed people to be able to perform the project, because that just implies you let the classical approach, the work is defined.
job roles required. This it will do by formal people go and forget about them. It is not A job description is then written including a
education and on the job training. dispersal. That implies you just scatter people description of the person expected to fulfil
3. Deployment: People are assigned to job to the wind. The word ‘dispersement’ I hope the role, their competence and experience.
roles within the organisation. They will catches the idea that you release people from The post is advertised (internally or
change jobs from time to time. projects, but think about where you are going externally) and somebody appointed from
4. Release: Finally people need to be released to send them and how, and then take positive the people applying. This involves go/no go
from employment, either when they retire, steps to place them as planned. decisions. On projects the work to be done
or when the move to other jobs, or when Differing HRM practices and a differing role is more uncertain, and it is not possible to
they are made redundant or fired. for the HRM department so clearly define the work and write a
Figure 3 shows an equivalent six-stage process I worked with a telecommunications company description of the person doing it. What is
for project-based organisations (Huemann et that has one management development necessary is to appoint people able to work
al, 2005). Deployment is divided into three steps programme appropriate for all its managers, on projects, to cope with the stress
that are constantly repeated: including marketing managers, client involved, and able to adapt to the changing
managers, line managers, accounting needs of projects. It needs people who can
3a. Assignment: The organisation needs managers, etc. but it has had to develop a develop into the role. Hence the need for
processes for assigning people to projects separate programme for its project-based the experiential development in the cycle in
3b. Experiential learning: People need to be personnel. Figure 3, and as suggested by Turner et al
developed on projects to develop their Some companies have developed practices for (2003).
competence to deliver the projects as dispersement and using them very well. In Selection processes adopted by project-based
actually undertaken in the organisation, particular a Dutch information systems organisations are much more informal, and
(see Turner et al, 2003, and my May article). consultancy puts considerable effort in avoid go no/go decisions. Practices adopted by
3c. Dispersement: At the end of each project thinking about how to use its specialist project-based organisations include:
the organisation needs to decide how to personnel at the end of assignments. ● searching and scanning practices through
redeploy people. There are several options: The role of the HRM department in the modern an informal network, using the grapevine
For permanent staff, they can be: organisation is often to maintain the HRM through the industry, and web-based
● assigned immediately to new projects practices and procedures and to provide advertising for staff
● asked to sit on the bench for a short period guidance and support to managers at the work ● liaison with universities and other
of time so they can be assigned to a more interface in applying them. HRM practices are knowledge providers
appropriate project about to start applied where they have the greatest impact, ● providing people with trial employment as
● asked to sit on the bench while awaiting an usually at the work interface. The one thing the contract staff, and offering suitable
as yet unknown new project central HR department continues to do is to candidates able to cope with the stress, to
● asked to update the organisations look after release from work, particularly adapt to the changing needs of projects,
processes and procedures conducting the exit interview, the reason for and who fit with the firm permanent
● asked to develop the organisation’s this seems obvious. contracts
knowledge base in some other way Deployment
● sent on a training course How HRM in the project-based The main issue with deployment (assignment
● ignored and left to polish their CV firm differs from the routine to projects) is the peaking workload. In a
For contract staff, they can be: organisation routine, classically managed organisation
● assigned immediately to new projects As well as needing additional processes, HRM (managed according to the ideas of Frederick
● held in abeyance for a short period so they in the project-based organisation also needs to Taylor) the workload is much more stable and
can be assigned to a more appropriate be more informal than in the classically predictable. In a project-based organisation it
project managed organisation. So what are the can be much more variable, with peaks and
● debriefed pressures that creates this need for more troughs as projects come and go. In contract
● asked in some other way to contribute to informal processes and implementation? organisations you may not be able to predict
the organisation’s knowledge base Selection the workload one month out, since you will not
● spat out and ignored There are two pressures that lead to more know which of the outstanding bids you will
Unfortunately many project-based informal selection: win or loose. This requires a much more
organisations do not think about this; they do 1. On projects there tends to be much greater flexible, responsive approach.
not have formal processes for dispersement. specialisation and lack of available skills. A In a forthcoming article, I will describe how to
As a result, permanent staff tend to be ignored company developing telephone networks prioritise resources between projects,
PROJECT MANAGER TODAY OCTOBER 2005 13
throughout their Finally, ‘up’ is often measured differently in
career. In other project-based organisations. Rather than
organisation it takes rewarding people according to the number of
place in the early stage subordinates managed, as is often the case in
of their career, up to routine, classically managed organisations, in
level three of six or project-based ones ‘up’ is often measured by
seven, but beyond the amount of risk managed and people are
there the individual is awarded accordingly.
expected to specialize In the case of the man who went from being
in one area. board director to project director on a high
At one engineering risk project, he received a salary increase
construction because being project director on that project
contractor, I met was perceived to be higher risk and had a
someone who had greater impact on the profit of the firm than
gone from being a the role of director of projects on the board.
board director to Also, firms from both the engineering industry
maintaining a company-wide resource plan. In project director on a high risk contract for a key and high-tech companies say that the head of
project-based organisations you find a much client, and received a wage increase to do it. department may not necessarily be the most
greater use of contract staff. High-tech companies tend to expect people to highly paid person in the department. Being a
Contractors from both the engineering and specialize above level three. senior design engineer may involve the
telecommunications industries have told me Under the principle that HRM functions are management of more risk and have greater
that they use between 20% and 40% contract assigned to the manager at the work impact on profit than being manager of the
staff to balance the fluctuating workload. interface, the line manager will be responsible design department.
These contract staff can work for a company for working with the project management A firm building telephone networks showed
on an almost semi-permanent basis. But in professional to plan their career development. me the salary scales for people in one
particular, since an organisation can become I worked with a Dutch consultancy where the department. They had six management
dependent on them, it needs to ensure that assessment of an individual’s development grades, where board directors were 6. The
they are released properly at the end of a plans is built into the annual appraisal, which head of one design department was grade 3.
project. Contract staff tend to fulfil non- itself is built into the annual budgeting cycle. In his department there were fifteen software
specialist roles, providing skills that are readily During their annual appraisal the line manager engineers, ranging from grade 1 to grade 4.
available within the industry. They may be and project management professional discuss There were about two on grade 4, higher than
professional skills, but readily available - so the individual’s development plans, in terms of the head of department, three on grade 3, the
non-specialist. Key value-adding skills firms project experiences sought, and training same as the head of department, and about
will develop internally. These include software required. The individual is given a personal five on each of 1 and 2. The head of
engineers, for instance, in the training budget. They plan how to spend that department had a role to fulfil, assigning
telecommunications sector and project with their manager, but then it is up to them people to projects and mentoring their
managers. If a firm finds a member of contract whether it gets spent or not. The manager and development. That commanded grade 3. The
staff works well in the organisation, then they the individual will then see during the year best designers of software switches
may offer them a permanent contract. how they can find the appropriate project commanded grade 4.
Career development experiences. Retaining staff
Only larger project-based organisations have There is the issue, discussed in May, about There is a different issue relating to retaining
the capacity to offer careers. Larger whether having identified that the individual staff between functional and project-based
organisations will have several career tracks needs a certain project experience, that they organisations. In functional organisations the
(Figure 4), several paths, or ladders developing are given it at the first opportunity. If you have focus is very much on cost. If somebody is
several key skills. Microsoft calls these swim identified that an individual needs a certain under-utilized, it is a straight comparison
lanes and has swim lanes for: type of experience to achieve their between the cost of retaining them to the cost
● project management development objectives, and a month later of recruiting and retraining them. But if people
● programme and portfolio management such a project comes along, do you transfer are released it is usually easy enough to find
● client management them, or do you say they have to finish the people to replace them.
● consultancy present project first, by which time the With many people experiencing a shortage of
● line management opportunity may have passed. Enlightened project skills, there is a much greater
● software technologists organisations will move people, recognising emphasis on retaining people and their skills.
that nobody is indispensable on their current If people do not have another project to go to
Whereas classically managed organisations project, and it is more important to develop immediately after the current one finishes,
will tend to confine people to one function, people with the right experiences. they will be asked to sit on the bench until the
project-based organisations need to develop Another feature of project-based next project comes along. However, as I
people with a much broader range of skills. organisations is they tend to be flatter suggested previously, if the firm just releases
They need technical skills, project skills, client organisations. Often career development is people from the project without thought, they
skills and line management skills. the gaining of new experiences, rather than may use their time on the bench to polish their
Thus people are moved between all the moving up the hierarchy. The word ‘career’ CV. It is an ideal time to use the person to
ladders, or swim lanes, spending a bit of time in comes from a Greek word meaning ‘step’. improve the organisation’s knowledge
each. I call this the spiral staircase career. Careers traditionally are steps up the ladder. management practices.
People spend time in design management, In project-based firms, they can be steps
project management, line management and sideways, gathering new experiences. In the Strategies
client management, moving up a half or quarter cinema industry, careers are viewed as a Project-based organisations need strategies
step at a time. Sometimes this continues series of films, each a new experience. for HRM, to be able to cope with the dynamic
14 PROJECT MANAGER TODAY OCTOBER 2005
environment that is projects. The HRM References
processes and practices need to be versatile Huemann, M., Turner, J. R., and Keegan, A. E, (2004),
to deal with the dynamic environment. Most of ‘Human resource management in the project oriented
the time that versatility can be positive. But company’, in J.F. Pinto and P. W. G. Morris (editors), The
like the cars in Formula 1 motor racing, Wiley Guide to managing projects, Wiley.
Huemann, M., Turner, J. R., and Keegan, A. E, (2005),
sometimes projects can spin out of control, ‘Human resource management in the project oriented
and then the HRM practices need to act as organisation: questions for the future’, in D. Slevin, D.I.
crash barriers to limit the damage. Cleland, and J.F. Pinto (editors), PMI Research
Conference 2004, Project Management Institute.
Over the past few months I have discussed Keegan, A. E. and Turner, J. R., (2003), ‘Managing human
how project-based organisations can learn to resources in the project-based organisation’, in J.R.
do their projects right and get better at doing Turner (editor), People in Project Management, Gower,
(published in Chinese by Nankai University Press, 2005).
them right. Next month I will discuss Turner, J.R., Keegan, A.E., and Crawford, L.,
mechanisms of governance, and how this can (2003),’Delivering improved project management maturity
provide support to projects so they can thrive through experiential learning’, in J.R. Turner (editor),
and help the organisation achieve its strategic People in Project Management, Gower, (published in
Chinese by Nankai University Press, 2005).
objectives.
Rodney Turner is Professor of Project Management at the Lille Graduate School of
Management, and chief executive of EuroProjex: the European Centre for Project
Excellence, a network of trainers and consultants in project management. He is the
author or editor of nine books. Past chairman of the APM, he has also helped to
establish the Benelux Region of the European Construction Institute as foundation
Operations Director. Rodney received PMI’s 2004 Research Achievement Award at
the Global Congress in Prague in April 2004.
E-mail: rodneyturner@europrojex.co.uk
This article was first published in Chinese, in Project Management Technology, published by China
Machine Press, Beijing.
© 2005 Project Manager Today All rights reserved. By downloading this pdf file the recipient agrees to use this
information for personal use only and may print one copy. This pdf may not be copied, altered, or distributed to
other parties without the permission of the publishers. First published in this form in Project Manager Today.
16 PROJECT MANAGER TODAY OCTOBER 2005
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