External project management as an alternative
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This report aims to consider external project management as an alternative of in-house project management through analysis of reasons, advantages (disadvantages) of hiring external project managers, incentives for project managers and its influence in work performance. It provides different theories, methods and approaches of industrial and human motivation. The paper distinguishes on four parts in order to cover all fields of motivations, project management, show survey, discuss findings, and make a conclusion. The third chapter illustrates the different aspects of attracting external project managers. First of all, it is reasons of hiring external project managers, and advantages (disadvantages) of this decision. Moreover, secondly it is regarded the obstacles for them in conditions of new company. The fourth chapter is devoted to the most prevailing motivational theories of people and industrial motivational theories such as Maslow Theory of needs, endogens theory and Herzberg`s motivational theory. All these theories were analyzed for understanding of human motivation nature, and what impacts they can have on project implementation and well performance. The chapter 4.2 is regarded to incentive for project managers through monetary reward systems. It contains integrating approaches, advantages and disadvantages of these methods and its influence on project manager’s wiliness to optimize his/her own work and work of his/her team for achieving success in a project. Incentive plan, secret pay policies, pay curves, types of managers, extrinsic motivation, rewards and recognition were considered in this chapter. The chapter 4.3 is related to incentive for project managers through non-financial motivation (inspiration). Motivational theories of setting-goals, optimizing energy, self-determination, autonomy and feedback were integrated in project manager`s motivational context. The fifth chapter reveals conjoin results of survey which reflects opinion of fifteen practicing project managers. They have answered on seven questions about nature of project manager`s work from both views consultant and client. Then it provides discussion findings of survey, theory and practice and contains deductions information, findings in chapters 3, 4, 5. The findings of this report are that project manager`s role must be clearly defined and project manager should have comprehensive authority for managing project. Moreover, project manager should have support from top-management, access to required resources and do not compete with other managers in different levels. It is crucial that project manager would be granted by autonomy and get constructive feedback which should be perceive as control. And obviously that motivation of project manager is complex process which should involve both financial and non-financial motivation method that the best result will be achieved. In addition, project manager and client should have the same vision of situation. In comparing internal and external project management, the last one seems as service which is provided by outside professionals. Expectations of this service might be different from point of you both concerned sides. Thus, management of a company waits an different vision, new methods and approaches, loyalty, competences, experience, and deep knowledge in particular industry, when it hires consultants. Meanwhile, external project managers (consultants) look for a new challenges, different attitude and authority in comparing with in-house project managers and experience. This kind of difference in opinions of both sides in main points about project management is deduced also in motivation issues, hiring, attractions and obstacle for external project managers. Eventually, management should be careful in attracting consultants and the consultants should realize clearly needs of customer.