1

The impact of human resource (HR) performance management on project outcome

http://www.academicjournals.org/ajbm

Department of Project Management, Admas University

Human Resource Management

Submitted By Group -7

Biruktawit Ayele

Hiwot Mekonnen

Masresha Yenealem

Melaku Kassa

Redet Tsegaye

Submitted To : Teramaj Wale (Ph.D.)

Date:- 19/10/14
 2

CITATION

Imran Haider Naqvi1 * Syed Haider Ali Bokhari1, Shazia Aziz1, and Kashif-ur-Rehman2

'The impact of human resource (HR) performance management on project outcome'

African Journal of Business Management Vol.5(21), pp. 8491-8499,23

http://www.academicjournals.org/ajbm, 27 July 2011 online

'COMSATS Institute of Information Technology, Lancaster Block, M.A. Jinnah Campus, Lahore,
Pakistan. Igra University, Islamabad Campus, H-9, Islamabad, Pakistan.

DOI: 10.5897/AJBM11.665

ISSN 1993-8233 @2011 Academic Journals

 3

1. Introduction

It had been virtually approximately less than 100 years since project management is
comprehended as an independent field(Profession) of study. On the other hand, human
resource management 'practices' had been executed at least since the industrial revolution.
Literature on project management is usually concerned with the principle of the Iron triangle.
Quality being at the center of the triangle, Time, Cost, and Scope are still the main emphasis of
contemporary project management. The article pleaded HR functions to have minimal attention
in the field of project management. Besides the cost, time scope, and quality Project managers
examine HR, Risk Management, communication, and procurement as secondary or
supplemental disciplines.

The main core of the research is to depict that the outcome of a project is greatlyinfluenced by
the quality of human resource performance management(HRPM). The study was performed
from June 2005 to April 2009 on 70 information technology (IT) firm projects located in two
cities of Pakistan ( Islamabad and Rawalpindi). The lack of quality HRPM in some of these IT
firms resulted in inadequate (Poor) outcomes.

By setting two hypotheses on the relation between the dependent variable or outcome

of a project and the independent variable (Quality of HRPM), the researchers stated that they
have collected and analyzed reliable data using different kinds of regression methods to
confirm that the quality of HRPM on project teams has a positive correlation with the project
outcome. The study particularly implied Arbitration of HRPM on these IT projects resulted in
poor outcomes and complete failure for some.

A failure or success of a project depends on this HR function too like the other aspects or tools
of project management. Finally, the authors stated they had recommended and contributed
360 human resource Performance Management templates for project managers.
 4

2. Summary

Performance management is one of the human resource management functions by which human
resource motivation and performance can be dealt with effectively. The authors stated ( quoted) Shih et
al.(2009 who did ) conceptual schemes on core Components of high-performance work systems (HPWS)
and analyzed their effect on organizational performance. According to this conceptual framework
competently executing firms have invested in more elegant HRM practices, largely on employee
performance appraisal and motivation. This led to their organizational success.

The article asserted the conclusion of the et Al (2009) strengthens the interpretation of the article by
which HRM functions, especially HRPM are crucial for organizational achievement.

HRPM is a critical part of the human resource management function which will help project managers in
measuring and maintaining the performance of the project team for the remarkable project outcome.

During the period of the study 30% of the 70, IT firms were announced to have poor

inadequate project team management by the project managers.

The article affirmed that 30% of the projects which failed were more observant of the project triangle
(Time, cost, scope ) nevertheless, the projects encountered cost overruns, time delays, and customer
umbrage. On the contrary, projects which convened their outcome were found to have better quality
performance management of the project team. This helped the firm to attain time, scope and cost
contradicted to the failed 30% IT projects.

As the project manager's most popular line of thinking framework stresses the three (4) crucial
concepts, it disregarded the human element most importantly the HRPM. As most project managers see
HR as a support function, the research article tries to give a piece of empirical evidence for this
difference in the theoretical framework.
 5

3. Hypothesis, Measurements, Methodology, Analysis discussion, conclusion, and

Recommendations of the article

Based on Established literature, the study had taken HRPM as an independent variable (IV) and
the project outcome as a dependent variable(DV). The article focused on the performance of
HR as the only independent variable although other variables affect the dependent variable
(Outcome). The article tries to establish a connection between outcome with HRPM and output
with a frequency of HRPM.

For a duration of four years from June 2005 to April 2009, the article authors gathered
empirical data from over 260 respondents. A population size of 85 IT firm projects in
Islamabad is stratified based on stratified area sampling. Eventually, a sample size of 70 IT
projects is conducted in the empirical study.

As proclaimed above, Quality and frequency of performance management or (Project team

Monitoring) are considered independent variables, while the outcome of projects in terms of
different success elements like cost, time scope or quality, or other success factors are
contemplated as the dependent variable.

The study carried out a validated 5-point interval scale (Likert scale?) and showed data verifying
table. The analysis of the data is performed based on 1. Frequency analysis 2. Pearson
correlation using SPSS software 3. Partial list square regression using PLS software.

Based on the frequency distribution method, out of 70 Projects, the independent variable
HRPM practice had the following value interpretation. Value "3" is taken as the threshold.

3= satisfactory, value < 3 Decreasing HRPM or project team controlling and value > 3 as an
increase in HRPM practices. Accordingly, the projects had the following distributions.

The number of badly failed IT projects (Frequency <=2) is 8

The number of failed IT projects ( Frequency<=3) is 16

The number of satisfactory IT projects ( frequency b/n 3 and 4) is 13

 6

The number of effective IT projects are (Frequency >4) is 29

Several excellent IT projects (Frequency nearly 5) is 4.

Out of the above 70, IT projects of numerous kinds 29.9 Sustained HR practices while 78.1 % had good
HR practices.

The research article examined and interpreted the distributions using the Pearson and PLS methods and
found nearly similar result interpretations.

It's apparent that HRPM is one of the elements and functions of human resource management. The
article's theory of framework is completely substantiated by existing literature. The application of such
frameworks to the studied IT projects was not considered as such important. The authors finally
concluded that there must be an effective monitoring tool by project managers. As HRPM had a
considerable impact on project outcome, Misuse of HRPM likewise yields poor project outcomes. Hence,
the article recommended 360-degree HRPM (Decenzo and Robbins,2002 ). They organized 5
segmented 360-degree templets (Scorecard) which can be modified using different kinds of key
performance indicators by project managers.

The major raised by the authors concerning HRM functions is that project management must look at HR
functions as that of its core concepts like cost, scope, time, and quality.

Moreover, the article proposed further investigations be perpetrated on project outcomes in relation to
other HR functions like benefits, job satisfaction, compensations, and incentives.

4. Strength and weakness of the Article

Encompassing the theoretical frameworks of the research to be conducted thoroughly can be

considered one of the main strengths of the research article. The authors compile a much literature on
the topic from human resource management to the current project management concepts. In addition,
the prolonged research period for the article and the number of companies, Population data size, and
sample data are very sufficient. The sample data reliability and validity test conducted by the authors
fulfills the requirement. Finally, asserting the theoretical frameworks by empirical data can be noticed as
a significant strength of the article. As a shortcoming, For the purpose of clarity and deep assessment,
the article must have put a list of questions or items used to gather data from respondents of the IT
project managers and other involved respondents.
 7

5. Lessons learned in terms of article learning

Clear scientific writing generally follows a specific format with key sections: an introduction to a
particular topic, hypotheses to be tested, a description of methods, key results, and finally, a
discussion that ties these results. The vast majority of scientific journals we looked over for this
review follow the so-called “IMRAD” format, i.e. introduction, methods, results and discussion.