Rahul Vishwanath Dandage, Santosh B. Rane and Shankar S. Mantha
Project risk management (PRM) and human resource management (HRM) are the two critical success factors (CSFs) for international project management. This paper aims to correlate…
Abstract
Purpose
Project risk management (PRM) and human resource management (HRM) are the two critical success factors (CSFs) for international project management. This paper aims to correlate these two CSFs, identify the human resource (HR) barriers, develop a hybrid model for risk management and develop strategies to overcome the HR barriers to effective risk management in international projects.
Design/methodology/approach
In total, 20 key HR barriers have been identified through a literature survey and verified by project professionals. These HR barriers are ranked according to their ability to trigger other barriers by analysing their interactions using the decision-making trial and evaluation laboratory (DEMATEL) method. Based on Ulrich’s revised model for HR functions, a hybrid framework for international PRM has been proposed.
Findings
DEMATEL analysis categorized nine barriers as cause barriers and 11 as affected barriers. The “PROJECTS” model proposed for HR strategy development suggests eight strategies to overcome these nine cause barriers. The hybrid PRM framework developed includes the effect of the HR dimension.
Research limitations/implications
This paper presents the generalized prioritization of HR barriers to international PRM. For a specific international project, the HR barriers and their prioritization may change slightly. The hybrid framework for PRM and the strategy development model suggested are yet to be validated.
Originality/value
Correlating two CSFs in international project management, i.e. HRM and PRM and ranking the HR barriers using the DEMATEL method is the uniqueness of this research paper. The hybrid framework developed for PRM based on HR functions in Ulrich’s revised model and the proposed new HR strategy development model “PROJECTS” are unique contributions of this paper.
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Rahul Vishwanath Dandage, Shankar S. Mantha and Santosh B. Rane
International projects very commonly experience failure due to various factors at the global level. Especially, large projects at the international level virtually have no chance…
Abstract
Purpose
International projects very commonly experience failure due to various factors at the global level. Especially, large projects at the international level virtually have no chance of meeting scope, time, cost and quality. This fact has been underlined by most of the international surveys and published literature. Effective risk management plays a vital role in preventing projects from failure by implementing appropriate risk response strategies. The success of risk management will be based on the understanding of various risk categories which specifically affect international projects, analysis of their interdependence, prioritize them according to their importance and develop strategies for risk management based on the prioritization. The paper aims to discuss these issues.
Design/methodology/approach
This paper represents typical eight risk categories frequently observed in the international projects through literature survey and feedback from project professionals. Interpretive structural modeling (ISM) and Matrice d’Impacts croises-multiplication applique´ an classment (MICMAC) analysis have been used to analyze the interactions among the risk categories and prioritize them. The strategy management tool threats, opportunities, weaknesses and strengths (TOWS) matrix has been used to develop the strategies for effective project risk management.
Findings
The analysis represents political risks, contractual and legal risks, cultural risks, and financial and economic risks as the highest priority risk categories, the mitigation of which should be paid the highest attention. The strengths-threats strategy has been applied to develop the strategies by identifying the various internal strengths of project organization to overcome the various threats caused by the eight risk categories observed in international projects.
Research limitations/implications
This paper tries to represent the prioritization of international project risk categories which are generic in nature. For any specific international project, the risk categories as well as their prioritization may be slightly varying. The tool used for prioritization; Interpretive structural modeling (ISM) is more suitable for few numbers of variables as it becomes complex as the number of variables increases. The strengths and threats considered for developing strategies using TOWS matrix are based on the feedback from project professionals and may vary according to the nature of project.
Originality/value
This paper uses ISM and MICMAC for risk prioritization in international projects and TOWS matrix for developing risk management strategies. This may trigger new opportunities for in-depth research in the risk management strategy development for international projects.
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Rahul Dandage, Shankar S. Mantha and Santosh B. Rane
The purpose of this paper is to review the risk categories which are predominant in international projects and to rank them according to their effect on project success.
Abstract
Purpose
The purpose of this paper is to review the risk categories which are predominant in international projects and to rank them according to their effect on project success.
Design/methodology/approach
A literature survey of peer-reviewed journal articles, survey reports and books on project management is used as the research methodology. One among the various multi-criteria decision making methods named as Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS) has been used to rank the risk categories according to their importance. The data for TOPSIS were collected through questionnaire as the research instrument.
Findings
The findings derived from evaluation of the publications led to the identification of eight different types of risk categories associated with international projects. The TOPSIS method resulted into political risks, technical risks and design-related risks as the top three risk categories in international projects. Contractual and legal risks and fraudulent practices-related risks are relatively low-ranked risk category.
Research limitations/implications
The findings will be useful in successful implementation of international projects as the knowledge of risk categories and their ranking will help project manager to plan the risk response strategies. A larger sample size for decision makers and more variety of projects can give more exhaustive risk categories and their ranking.
Practical implications
This paper explores eight different risk categories in international projects. It represents the ranking of risk categories according to their importance in project success. This will be helpful to project managers for developing a general framework for planning the appropriate risk response strategies.
Social implications
Governments of many countries around the world are encouraging their industries to undertake and successfully complete projects in foreign countries. However, many industries experience failure in projects as they fail to implement the risk management (RM) effectively in international projects. This research work provides the risk categories in international projects and their ranking which can assist in developing strategies to respond the risk appropriately.
Originality/value
This paper uses the TOPSIS method for ranking major types of risk categories in international projects. It might represent new opportunities for rigorous and relevant research that would contribute to an in-depth knowledge of RM methodologies.
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Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies.
Abstract
Purpose
Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
What is risk? Within an organization, risk itself can pose a number of challenges if it is not understood or defined consistently. For example, a typical risk might be disruptors entering the main market a firm operates in. For an owner, they may dismiss the risk as they do not see the disruptor as a direct rival due to their different approach. For a sales director, they may see the risk as real but remote until data tells them otherwise. For a product manager, they may see the risk as potentially disastrous unless they pivot in some way to mitigate the threat it poses. Unless there is a hymn sheet people can all sing from, there is a very real “risk” that a lack of joined up thinking can lead to a very muddled response to the disruptive threat and a distinct lack of strategic direction.
Practical implications
Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.
Original/value
The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.