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CID133 Project Management

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CID133 Project Management

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Course Code: CID133
University: University Of Sunderland

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a) What can/should a PM do in stakeholder engagement?b) What is the best option for engaging stakeholders? c) What are the challenges in practice?d) How might a PM resolve conflict or deal with difficult stakeholders or challenging situations?

Stakeholder’s engagement is necessary as it benefits the construction industry by increasing collaboration and eliminating contradiction between the stakeholders and organization (Henisz, Dorobantu and Nartey 2014). This shows that construction industry requires stakeholder engagement process to minimize the negative impacts and identify positive impacts in a project to be delivered. The stakeholder engagement influence construction industry in various ways where it can be positive or negative impacts. The effective stakeholder engagement guarantees success in construction projects (Tengan and Aigbavboa 2016). The study is limited to only construction industry where analysis of stakeholder engagement is done. The study briefly describes stakeholder engagement in terms of construction industry and its related conflicts and challenges along with possible solutions.
PM in Stakeholder’s engagement
The following tips can prove to be ofhigh relevance for the engagement of the stakeholders in a project (Mok, Shen and Yang 2015). Firstly, Stakeholders play the most crucial role in a project. Hence, they should be aware of the information related to the project, and the management should be aware of the qualities and personalities of the stakeholders. Regular interaction with the stakeholders is mandatory for the success of a project (Bell, Powell and Sykes 2015). The interactions will act as a dictionary to maintain the clarity and omit any possible doubts. Understanding of the stakeholders will help the PM in making potential use of the former and will develop a quality team effort towards completion. Planning the engagement of the stakeholders before the engagement can be of high relevance (Ling and Yanti 2016). Relationships should be developed with the stakeholders to develop trust within them by understanding their needs and conveying them the needs of the organisation. It would lead to a more realistic team effort along with minimising the uncertainty and will also improve the problem solving and decision making. Risk assessment of the risk associated with and for the stakeholders can help in improving the project delivery. The protocols for the project should be in the range between the stakeholder’s expectation and the requirement for the project (Fulton et al. 2015). The role of PM in stakeholder engagement has been discussed however it develops the question “what is the most appropriate method for engaging stakeholder?” The author has suggested the potential solution to the same in the next section.
Engaging Stakeholder
Stakeholders can be engaged based on their obligation level. Following probability can be deduced based on their obligation namely HO, MO and LO (Yang and Shen 2014). In the High Obligation (HO) scenario the stakeholders will hold high obligation toward the project. It can be achieved by bonding with them through profit-sharing after the completion of the project (Bal 2014). The number of stakeholders in the HO category can be minimised as the stakeholders will put in their full effort for the successful completion of the project. MO (Moderate Obligation) case works by offeringthem incentives based on the stakeholder’s dedication (Aaltonen and Kujala 2016). Here, their obligation is moderate as they will get a fixed amount of money even if they do not put their full effort. However, with more dedication, they can earn more. Finally, LO (Low obligation) is the case in which the profit of the stakeholders is fixed at the beginning of the project, and hence their efforts will be limited as they do not have to worry about the money.
Hence, from the best method for the engagement of the stakeholders is to keep them at high obligation. The reason for the above statement is that high obligation will force them to work for their project. Though, there are some challenges associated with the engagement process which have been discussed.
Multiple challenges are associated with the stakeholder’s engagement. The first and foremost being the resources and time invested in the stakeholder’s engagement (Ekung, Okonkwo and Odesola 2014). Then providing relevant resources and training related to the project is also a challenge for the management (Yang and Shen 2014).The balancing of expectations of stakeholders with the requirements of the project.Understanding the usability of astakeholder for a specific task.Another challenge involving the stakeholder that is a major concern for the organisationsare conflicts. The following section offers an insight into managing conflicts in PM.
PM efficiency in resolving conflicts
According to Eskerod and Huemann (2016), the efficiency of project management to manage and resolve conflicts generated through engaging stakeholders are in the following paragraph.
Confront: In this mode, the cause of conflict and the management confronts through face-to-face interaction to resolve the matter.
Compromise: Here the conflicting entities bargain on the cause and deduces a standard solution to end the conflict.
Smoothing: The conflict is resolved in this mode by obliging any one of the adverse party to forfeit a part of their demands and resume the work.
Forcing: Resolution of the conflict in this mode comes by force where one of the adverse parties is forced to give up their demands (even if the demands are valid).
Avoiding: This mode is adopted when the conflict is too complicated to resolve. So anyone part either retreats or avoid the problem for as long as they can.
Case Study
According to Zidane et al. (2015), the case study on Algerian Megaproject shows the stakeholder engagement successes or failures. The case description is as follows. The megaproject of Algerian East-West Highway was higher than $11.2 billion and it was scheduled in fourth quarter of 2009 for completion. The contribution of several external and internal stakeholder’s engagement contributed in failure of the project in terms of project efficiency. The stakeholder’s engagement is discussed in this case study and their related actions at each phase of megaproject. The case study shows that there was failure of stakeholder’s engagement different levels of Algerian megaproject. The aspects that determined the failure are efficiency, effectiveness, impact, relevance and sustainability. This failure concluded that the stakeholder engagement in megaprojects such as Algerian mega project is a big issue. Hence, the outcome of this case study on failure of stakeholder engagement in Algerian megaproject shows that stakeholders should be engaged in early stage of construction projects.
Arnstein’s Ladder of participation presents the Algerian megaproject as follows. The third tier shows non-participation that befits with stakeholders of this megaprojects who are abide to provide value to construction project. The second tier shows degree of tokenism that befits with participation and engagement of stakeholder with no guarantee of project success or failure. The first tier shows degree of citizen power that befits with failure of stakeholder’s engagement in the project in terms of five measures that are efficiency, effectiveness, impact, relevance and sustainability.
Therefore, from this case study it can be understood that stakeholder engagement is a crucial part in construction projects. It should be carefully planned to avoid any clashes in the development stage of construction projects.
The above paragraphs conclude that stakeholder’s engagement is very important in construction industry where initial impacts whether positive or negative is necessary for project delivery. The engagement of stakeholders is necessary for project success. However, there are challenges related to stakeholder’s engagement in construction industry. These challenges need to be taken care of to minimize the risks of any failure in project. Lastly, the case study shows valuables that can be taken for improving approaches towards stakeholder’s engagement. Therefore, stakeholder’s engagement should be maintained and managed effectively.
Quality management is an important part in project management which ensures the consistency off product and services in construction industry (del Alonso-Almeida, Bagur-Femenías and Llach 2015). The quality management comprises of four major components and they are quality planning, quality assurance, quality control and quality improvement (Lapi?a, Kairiša and Aramina 2015). The quality management in construction industry focuses on means through which products and services will be delivered and checking its quality (Molina-Azorín et al. 2015). The quality management is important in construction industry and hence total quality management is widely used to improve the operation of construction industry. However, construction industry still does not embrace the importance and concept of total quality management. The study focuses on how total quality management is achieved in context of construction industry and implementation barriers along with a case study.
Total Quality Management
The total quality management is described as an approach that provides long-term success to an organization especially construction industry to achieve the customer satisfactions (Al-Geelawee and Mohammed 2016). The total quality management requires effort from all the employees and people related to the construction industry to contribute in improving the organizational processes, services and products. This is done through creating a working environment in which the employees work (Sadikoglu and Olcay 2014). The total quality management is based on process orientation which makes it useful in construction industry where the process is given priority. The total quality management in construction industry provides delivery of high standard buildings having large and complex structure. The construction industry is basically related to delays and defects that arise on a daily basis. This shows that there is a need of applying proper approach to solve the issues and hence, total quality management is important. According to Mazher, Gharleghi and Chan (2015), total quality management provides benefits of improvement in quality in construction industry. However, adoption of total quality management poses several barriers such as lack of experience in handling total quality management. The benefits provided by total quality management in construction industry are as follows. The first two are better control of procedures to ensure consistency from beginning of design to end of delivery and decreased construction processing cycle time. The next two are quantity of damaged goods are reduced and chemical fallout is reduced (Panuwatwanich and Nguyen 2017). The other two are improved perceptions of customers towards the company and increased measurement of operations and performance.
Implementation Barriers
The above paragraph shows implementation of total quality management is important in construction industry. However, there are barriers in implementation of total quality management in construction industry (Femi 2015). The major barriers are described as follows. The first barrier is identifying construction process and its nature. The construction process is a large and complex process including several people having different perspectives towards the construction process (Neyestani and Juanzon 2016). The second barrier is involvement of several entities or parties in the construction process. They have their own concerns and interests that affect the primary goal of the construction process. The third barrier is non-standardization in construction process showing different specifications of each layer in the process to achieve the primary goal. This affects the checking procedure in the quality management procedure (Al-Geelawee and Mohammed 2016). The fourth barrier is bidding process in construction industry where contractors after getting the project assignment dose not value the project process. The contractors try to achieve healthy profit and compromise with the quality of resources.
Approach towards TQM implementation
There are barriers in implementation of total quality management. However with proper strategies implementation of total quality management can be achieved (Sadikoglu and Olcay 2014). The given below paragraph shows the implementation of total quality management in construction industry. 
The successful implementation of total quality management follows six Cs and they are commitment, continuous improvement, culture, cooperation, customer focus and control (Al-Geelawee and Mohammed 2016). The commitment from staff is necessary to provide improvement in quality of the products and services. The continuous improvement provides proficiency in the construction process to satisfy the customer’s need. The culture of improving quality in construction industry helps to ensure comfort level of employees (Panuwatwanich and Nguyen 2017). The most important is cooperation of all the related participants of construction process to enhance the operations. The customer focus ensures the construction process to be customer oriented and to suit their requirements. The control level is essential to manage all the tasks involved in the construction process.
According to Panuwatwanich and Nguyen (2017), the case study on Vietnamese construction firm shows the influence of total quality management. This case study shows that this firm has implemented total quality management and it showed impressive performance. The organization implemented total quality management for organizational culture to improve the performance. The poor management practices is the primary reason of problems in the organization. The case study shows that lack of proper management of organization is the primary cause for all the concerns related to the organization (Mazher, Gharleghi and Chan 2015). The case study finally concludes that the implementation of total quality management has helped them to improve and grow and the improved areas are as follows. The performance of work in terms of quality, satisfaction of external customer, safety, labour efficiency, quality contra contractor and risk control.
Therefore, the case study helps to understand that total quality management is an important part in construction industry. Its implementation is necessary to improve quality work of the industry. The total quality management help to improve majorly the risk factors of construction industry.
The above paragraphs show that quality management is an important aspect to every industry and especially construction industry. The quality management has different aspects which are considered while evaluating quality management. The study also discusses the major aspect of quality management that is total quality management that serves long-term success for customer’s satisfaction. However, there are barriers in implementing total quality management that should be considered in every sector. The implementation approach towards quality management should consider these barriers to nullify its effect. The case study on quality management shows how to achieve greater success in construction management. Therefore, quality management should be considered necessary tool for success of construction processes.
Risk management is one of the most difficultdomains of project management, and it needs many delegations and hard work from Project Managers (Serpella et al. 2014). Hence, Project Manager should be able to identify possible risk factors and plan accordingly. Risk assessment comes after risk identification and analysing the process (Pinto 2014).This study describes informal approach of risk assessment towards contingency of time. The study also focuses on arguments and challenges posed by time contingency along with solution. The purpose of this report is to analyse risk assessment in context of time contingency along with its challenges and solution.
The risk if taken appropriately can pay off, and if taken otherwise, the results can be catastrophic. Hence, there should always be an assessment of the risks that are associated with a project. It would help in developing a contingency plan for the same. However, those contingency plans are not costeffective as well as time-consuming and can be a major blow to the budget and time framework of the project (Sawiris 2015). Hence those should be taken intoproper consideration concerning the budgeting and planning. The time contingency is an essential part in construction industry where it helps to create a more reliable planning and schedule. The time contingency is helpful to identify the possible expected financial needs in a construction company. The time contingency is generally affected by factors which are predictable in nature. There are various factors which affect time contingency and they are as follows. The project conditions consisting of project location, shortage of equipment, limited time and lack of experienced consultant (Kang et al. 2015). The management conditions consists of scope changes, changes in order, inadequate details of drawing and inadequacy of dispute settlements. The economic condition consists of economic instability and changes in design because of market demand. The country condition consists of laws and regulations proposed by the Government and instability in political situations.
Challenges in risk assessment
The above theory suggests there are drawbacks in risk assessment related to construction which needs to be focused and taken into account. The following are the challenges in risk assessment related to construction industry. One of the significant factors that get influenced in case of a trouble situation is the completion of the construction project on time (Marcelino-Sádaba et al. 2014). The construction project if not completed within the time frame then there may be severe consequences which can lead from penalties to downgradation of the image of the firm (which will have long-term consequences). The considered situation can also propose threats to the existence of the projects that require a combined effort of multiple individuals or organisation (Taylan et al. 2014). The reason for failure would be other commitments of the different contractors to other projects they are working on or their equation with their partners may also change. The delay in the construction project completion can also lead to reduction in the profit of the firm. Hence, a schedule risk assessment is mandatory for the firms.
Approach towards implementation of risk assessment
For the development of the schedule risk assessment plan, the firm should follow the following steps: Identification, responsibility, assessment, response, mitigation, contingency planning, tracking/reporting and methods to tackle immediate unpredicted risks (Chileshe and John Kikwasi 2014). The first step would be to identify the cause of delay it can be because of the stakeholders or any accidents (natural or human made). The conflicts within the project team should be tackled as soon as possible to avoid any delay by using the conflict management strategy of the PM. In case, the risk is associated with accidents then optional resources should be kept to omit the delay. The unexpected delay can be cited by the example of April 2015 earthquake in Nepal. The earthquake halted the Tama Kosi III hydropower project in Dhokhla estimated at $1.5 billion (Hashash et al. 2018). It delays the project resulting in several labor disputes and evacuation of many Chinese workers. The Norwegian firm Statkraft also backed off from the project due to the delay which led to the addition of extra work effort for the completion of the project (Goda et al. 2015).Australian SMEC also forfeited their partnership from another project (West Seti hydropower) they were working due to this negligence (Gautam and Chaulagain 2016). As cited by the Nepalese newspaper “This came as a huge blow not only to Nepal’s goal of finally exporting power to India but also damaged whatever confidence foreign investors still had in the country (Goda et al. 2015). However, the delay could have been prevented if Nepal’s government had a schedule risk contingency plan.
The schedule risk assessment also offers some challenges the first and foremost of it being a collection of data. The reason for the problem stated above is the uncertainty of the activity duration.  
Hyderabad Metro was supposed to be the first state-of-the-art systems in India that included technology like CBTC (communications-based train control) (Kulshreshtha et al. 2017). The deemed project was supposed to be operational in June of 2017, however, due to lack of risk assessment the project is still in its constructional phase. The contractor of the project Larsen & Toubro (L&T) failed to evaluate the risk associated and is now facing over 200 legal cases. The risk of public response, traffic slowdown and the increasing costs (INR 30billion to INR 40 billion) should have been assessed (Reddy 2015). However, failure to do so is inviting heavy global criticism.
This case study shows that lack of risk assessment in any project or situation can affect the overall scenario. Therefore, it is necessary to properly assess the risks related to any projects and handle the risks immediately and effectively.
Therefore, above paragraphs conclude that risk assessment is a major factor in project management that helps to minimize the risks of any project. The unplanned costs, delayed project and unplanned schedule contribute to time contingency. The study shows how approach of risk assessment towards time contingency poses challenges and what are the potential solutions to solve this approach. The analysis of risk assessment approach towards time contingency is described through prior studies on Nepal and Hyderabad Metro scenario. Therefore, the risk assessment approach towards time contingency should be made with proper execution of plans and strategies to solve challenges of risk assessment.

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11174 Introduction To Management

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