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Abstract

The paper is addressing the complex phenomenon of leadership in the framework of project management. As learning critical lessons from business practices is helping students in leadership development, the authors have conducted a pilot study among 50 companies active in Romanian IT sector. The aim of the study was to assess leadership's issues of project managers in leveraging their project team members to successfully complete the projects.

Headnote

Abstract

Keywords: project management, leadership development, cultural values

INTRODUCTION

The new context of global market with a highly competition on customer has led to important changes in the business practices. The increased customer focus requires developing customized products and services and much closer relationships with the actors involved. These powerful environmental forces contribute to the rapid expansion of project management approaches to business requirements and opportunities.

Project management is no longer a special-need management and it is rapidly becoming a standard of doing business. Today, more and more employers are looking for graduates trained in project management. This subject is of increasing interest especially for engineering students who are encountering a highly exposure to project management skills.

1. Theoretical Framework

In today's business world, there are plenty of powerful environmental forces that contribute to the increased demand for good project management across all industries and sectors. The compression of the product life cycle becomes a competitive advantage, more and more companies relying on cross - functional project teams to get new products and services to the market as quickly as possible. The global competition enforces companies to reduce costs and to offer cheaper as well as better products and services. Thus, project management with its focus on time, cost, and performance, is proving to be an efficient way to get things done. The increased customer focus has also prompted the development of customized products through project work. More and more executives are assuming the roles of projects manager in the attempt to satisfy the unique needs and requests of clients. Consequently, project management appears to be ideally suited for a business environment requiring innovation, flexibility, accountability, and continuous improvement.

Moreover, the historical changes have created a tremendous market for core project work in the diverse areas, such as construction and telecommunications, as Eastern European countries strive to revitalize their inefficient industries and infrastructures. In this light, it is well known that engineers possess a strong set of skills that enable them to do extraordinarily well in certain types of managerial work. Regardless of this, engineers are expected to possess the necessary knowledge, perspectives and tools in project management areas that enable them to get things done. As Chang [1] highlighted in his book, engineers are required to have insight how to capture opportunities offered by the emerging technologies, and to be innovative in making better and cheaper products in order to improve customer satisfaction.

In the area of leadership issues within project management field there are two noteworthy competing aspects: the responsibility to integrate assigned resources to complete the project according to plan, and the need to initiate changes in plans as some problems make plans unworkable. A valuable contribution to this matter has been brought by Kotter [2] that has suggested these two different activities represent the distinction between management and leadership. Titus, management is about coping with complexity whereas leadership is about coping with change. Another interesting distinction between management and leadership concluded that leadership is fundamentally a value choosing, and thus a value-laden activity, whereas management is not. Leaders are thought to do the right things, while managers are thought to do things right [3, 4].

Although a large number of researchers have paid attention to the leadership area, there is no single correct definition. The various definitions of leadership can help to appreciate the multitude of factors that affect this concept, as well as different perspectives from witch to view it.

Some leadership researchers have focused on studying the personality and physical traits of the leader. They indicated that many cognitive abilities and personality traits are at least partly innate and may offer certain advantages or disadvantages to a leader [51. But Huges, Ginnett, and Curphy [6] have argued that formative experiences may also influence many sorts of behavior, nurturing and suppressing different leadership qualities.

Another significant aspect of studying the complex phenomenon of leadership is related to the relationship between leaders and followers. Creating highly motivated and satisfied followers depends, most of all, on understanding others. As Hunter, Schmidt, and Judiesch [7] have suggested in their findings, the followers could give as much as 15% or 20 % more effort at work that they actually do with no one, including their own bosses, recognizing any difference.

Obviously, the hardest topic to study in leadership arena is referring to how aspects of the situation affect the way leaders act. Because people differ in thoughts and feelings, and strengths and weaknesses, leadership situations can be very complex. Thus, some scholars have argued that organizational successes and failures often get falsely attributed to the leader, but the situation may have a much greater impact on how organization functions than does any individual, including the leader [8].

Further developments in the scientific literature underline how an understanding of power has long been seen as an integral part of leadership. Current specialists in the field have also emphasized the need to conceptualize leadership as power phenomenon [91. Thus, for the purpose of the research, the authors have focused on the leader standpoint by examining the phenomenon of power, as a key aspect for being an effective project manager.

According to the literature, power is defined as the capacity to produce effects on others or the potential to influence others [10]. The well-known scientist McClelland [11] contended that one of the basic human needs is the need for power. Because this need is learned and not innate, the power has been extensively studied [12, 13, 14].

Distinguished experts in social science have argued the power does not arise spontaneously heaving reasonably clear dimensions: position powers and personal powers [13]. The position powers refer to the organizational dimension of power and encompass three types of power sources: legitimate, coercive, and reward. Legitimate power is the base of power that is anchored to individual's formal position or authority. Coercive power is the individual's capability to affect negative consequences. Reward power is related to the extent that individuals obtain compliance by promising or granting rewards.

The personal powers - expert and referent - are based on the person rather than the organization [15]. Access to these two sources of power does not depend solely on the organization. In the case of expert power, people influence others because of special expertise, knowledge, or skills. Referent power operates in much the same way, individuals influencing others because they are liked and respected. As Maccoby [16] has noted, referent power, called charisma, comes into play when individual's personality becomes the reason for compliance.

Valuable researchers in the field have made a clear distinction between power and influence tactics. According to Kipnis and Schmidt [17], the power is the capacity or potential to influence others whereas the influence tactics are the practice of power used to change the attitude, opinions, or behaviors of a target person. In this are of influence tactics, researches have yielded nine generic interpersonal influence tactics, ranked in diminishing order of use in the workplace: rational persuasion, inspirational appeal, consultation, ingratiation, personal appeals, exchange, coalition, pressure, and legitimization. Afterwards, other authors have structured the first five influence tactics in soft tactics because they are friendly and not as coercive as the last four tactics. Exchange, coalition, pressure, and legitimization are called hard tactics because they involve more overt pressure [18].

Further developments have shown a strong relationship between the power of agents and targets and the types of influence tactics used. Purcärea and Fleacä [19] have proposed a systemic approach of power - inputs, transformation process, and outputs. During the transformation process, managers use specific tools - power bases -, and techniques - interpersonal influence tactics - to influence their subordinates.

Another significant contribution to exploring influence tactics was brought by Blaine [20], who has defined three categories of influence tactics: power rests on fear, power rests on correctness, power based on principles. The first category encompasses a variety of tactics based on coercive power, such as pressure, legitimization, sanction, upward appeal, and assertiveness. The second category refers to inter-related power arisen from bargaining and trade-offs. These influence tactics are better than the first one, but have limited effects on individuals because of the parts involved in influence process are permanently monitoring the environment aiming at identifying better opportunities. The third type of influence tactics is based on trust and respect from the others. The significance of trust is deeply rooted in personal values and principles such as dignity, fairness, openness, the pursuit of truth, and respect. For the purpose of this research, the authors have focused on these three types of influence tactics: coercive, interdependency, and leadership.

2. Research Methodology

Although by no means exhaustive, the characteristics set for analysis - interpersonal influence tactics and power sources - obviously yields clues about the norms and values of Romanian IT Project Managers. The IT sector has been chosen because of its strong new communication technology influence.

The methodological approach was consisted of undertaking a descriptive research aiming at:

* Assessing the current practices of leadership;

* Examining whether the differences based on organizational variables - such as experience and managerial role - affect significantly the practices of leadership in the context of project managers' leadership requirements.

As consequence, the paper is addressing three key objectives:

01. Analyzing the Romanian IT project managers' power sources and influence tactics;

02. Studying the correlation between organizational variables of Romanian IT project managers and the use of power sources;

03- Studying the correlation between organizational variables of Romanian IT project managers and the practice of exercising power.

In order to attain the last two research objectives, the following scientific hypotheses have been developed:

H1: The IT project managers' experience influences significantly the use of power sources.

H2: The managerial role of IT project managers influences significantly the use power sources.

H3: There is a significant correlation between professional experience of IT project managers and the practices of power.

H4: There is a significant correlation the managerial role of IT project managers and the practices of power.

2.1. Variables Measurement

Assessing the current practices of leadership for IT projects managers has required structuring the characteristics of the process in two types of variables: nominal and altitudinal. The nominally scaled variables are consisted of situational information, such as experience and managerial role. Furthermore, the attitude measurement concerning leadership issues has involved designing multiple-item scales. Table 1 shows the structure of the relevant variables of the research.

The process of developing the content of each item concerning the research variables assessment has drawn knowledge from the relevant social science theories. Position powers have been taken into account important research insights about the exercise of power in organizations [21]. Examples measured the extent to which respondents reward team members' performance, apply specific coercive techniques, and use the legitimacy of authority to make managerial decisions.

Developing the items aiming at assessing personal powers was measured adapting the results of researches in social science field to the particularities of project managers' work [91. The items assessed the extent to which IT project managers develop amiable working relationships with project team members as well as the willingness to build team loyalty. Furthermore, items were measured the degree in which IT project managers provide technical suggestions and share considerable experience with project team members.

Coercive influence tactics were assessed using adaptation of items from the Profiles of Organizational Influence Strategies, POIS, elaborated by Kipnis et al. [22] to the project management context. Examples included the extent to which project managers agreed or disagreed that they invoke the adherence with organizational rules, order for compliance, sanction, and seek support from superior management levels.

Interdependency influence tactics were assessed using adaptation of items from the work of Yulk and Falbe [23] and Yulk and Tracy [24] to the project management context. The items assessed the extent to which project managers agreed or disagreed that they act in a friendly way, create enthusiasm, and exchange of bargains.

Leadership influence tactics were assessed developing items grounded in the work of the distinguished researchers Covey [25] and Blaine (2001). Examples included the extent to which respondents agreed or disagreed that they lead with dignity, fairness, being guided by a core set of principles in decision-making process, and have a sense of purpose for the common good.

2.2. Data Collection

The research was questionnaire-based. The questionnaire had an adequate pattern, starting with questions to evaluate the IT project managers' attitude and finishing with questions for respondents' characteristics. Dichotomy and open questions were used as well. Control questions have been used as respondent filter, too. The questionnaire was distributed to 50 companies active in Romanian IT sector.

The questionnaire was designed to gather plenty of demographic information such as gender, age, work experience, and situational information such as type of managerial role, organization type and structure.

2.3. Data Analysis

Gender structure was rather unbalanced (71.1% men and 28.9% women). Respondents' age was mostly of 36-45 years (42.1%), 31-2% of sample was up to 35 years, and only 26.7% were older than 46 years (Figure 1):

As seen in Figure 2, the experience in project management work was spread mostly less than one year work experience (26.6%); 33-3% of sample had between 2 to 5 years; 22.2% of respondents had 6-10 years of work experience, and only 17.9% had more than 10 years' experience in same position.

The structure of the sample in terms of managerial roles was as follows: 28.9% of respondents from strategic level such as Portfolio Manager/ Director of Project Management Office; 48.9% from functional level such as Programme Manager/Project Manager; 22.2% came form operational level - Project Leader/ Project Specialist (Figure 3).

The respondents came from different organization types such as: 24.44% form budgetary organization, 68.89% from private capital, and 6.67% from public capital organization. From the structure standpoint, 68.89% of IT project managers' complete projects work within functional organizations, 22.22% in project-type structures, and only 8.89% in matrix organizations.

Statistical procedures were applied for data analysis, aiming to match the research objectives. As shown in Tables 2, 3, and 4, the central tendency was calculated taking into account the way in which the variables were measured, whereas the chi-square statistic test (X2) was calculated for testing statistical hypotheses.

3. Key Findings

Concerning the practice of exercise power (Table 2), project managers are likely to exercise their influence through expert power (4.29) - stemmed from their knowledge, reputation, and status -, followed by reward power (4.09) and referent power (3-54). At the first glance, Romanian project managers are professionals with a solid foundation of knowledge in project management, being aware of best practices in the field. The results point out that at perceived level project managers are likely to embrace leadership influence tactics (4.00) such as building trust, sense of purpose, and consultation (table 3). As for as coercive tactics, the research results underline the tendency of Romania IT project managers to avoid the usage of negative consequences in leveraging the project team members. Interestingly, a previous research of Gallup on working behavior of Romanian employees highlights their tendency to obey the orders of the superiors, ensuring that coercive influence tactics are usually occurring in obtaining the subordinates' compliance.

For the first scientific hypothesis, the null hypothesis has been rejected; meaning that the IT project managers' experience influences significantly the use of power sources. As data analysis reveals (table 3), experienced project managers (more than 10 years experience in the field) tend to use the expert power (4.43) in leveraging their team members because they know about work schedule and assignment before their employees do. Furthermore, the less experienced project managers are more likely to use legitimate power (4.29), that comes into play when they obtain compliance through theirs formal position or authority.

Concerning the second research hypothesis, the null hypothesis has been rejected; meaning: the managerial role of IT project managers influences significantly the use power sources. As shown in table 3, project managers come from strategic level, such as portfolio managers or director of project management office tend to use expert power based on specialized knowledge. Although, some researchers argued that expert power is not confined to higher organizational levels, the project management competence viewed as technical expertise is a potential source of power. There are a plenty of skills reflected at the project managers' competence, such as the ability to answer questions, solve technical problems, and excel in certain kind of work. As for functional level, the data analysis reveals the tendency of project managers to use referent power to get people to cooperate and perform. In the context of project management, referent power comes into play when the project managers obtain the team compliance based on the authority of someone in a higher position. Finally, at the operational level, project managers are more likely to use reward power that comes directly from their ability to contribute to others' accomplishing their work. Probably, the most significant form of this power source is the ability to respond to subordinates' requests for additional resources, or time to complete a segment of a project.

In the light of power practices, the third and fourth research hypotheses have been validated meaning that there is not a significant correlation between professional experience or managerial role of IT project managers and the practices of power. These results yield significant clues about the practices within the project management community: project managers, regardless of their managerial role, tend to influence through interdependency tactics stemmed from bargains and trade-offs. The findings draw the explanation from the characteristics of project management work. The success of the projects depends on how project managers manage the trade-offs among time, cost, and performance. Moreover, they have to build cooperative networks among different competing parties - project stakeholders - increasing access to available resources and information. Thus, networks have to be mutually beneficial trade-offs and alliances, being generally governed by the law of reciprocity: providing resources or service for others in exchange for future resources and services.

Conclusions

A proper use of project managers requires project managers to be aware of power sources and exercise influence tactics to obtain the cooperation of stakeholders' competing interests.

Although the study has significant limitations in terms of sample selection, industry, and number of respondents, it provides a starting point for investigating the practices of exercising power within Romanian project management community. Thus, future research will be performed capitalizing on this one and further extending within other industries to make a comparative analysis of the results.

References

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Source Citation

Elena Fleaca, & Bogdan Fleaca. (2014). LEADERSHIP ISSUES IN PROJECT MANAGEMENT. FAIMA Business & Management Journal, 2(2), 27–.