Project Manager On Project Succes
Project Manager On Project Succes
Project Manager On Project Succes
GRADUATE PROGRAM
MA IN PROJECT MANAGEMENT
The Impact of Project Manager’s Competence on Project Success: The case of selected Ethiopian
Companies
January 2021
GRADUATE PROGRAM
The Impact of Project Manager’s Competence on Project Success: The case of selected Ethiopian
Companies
January 2021
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Statement of Declaration
I, Netsanet Geleta, state that this project work entitled ‗The Impact of Project Manager‘s
Competence on Project Success: The case of selected Ethiopian Companies‘ is carried out in
partial fulfillment to gain Degree of Masters of Art in Project Management with the guidance
and support of the project work advisor Abdurazak M. (Dr.). I have followed all ethical standards
while conducting the project work and have duly and properly acknowledged all references and
sources. I have conducted this project work by my own and same is not submitted for any Degree
or Master program in this or any other institutions.
Signature Date
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Statement of certification
This is to certify that this research work by Netsanet Geleta, entitled ‗The Impact of Project
Manager‘s Competence on Project Success: The case of selected Ethiopian Companies‘
submitted in partial fulfillment of the requirements for the degree of Master of Arts in Project
Management complies with the regulations of the university and meets the accepted standards
with respect to originality and quality.
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Abstract
The impact of competence of project managers on project success of three selected Ethiopian
companies-Elmi Olindo Constructors PLC, Ethiopian Airlines Group and International
Livestock Research Institute is assessed. To achieve the objective of the research explanatory
research design and quantitative research method are applied. Five point Likert scale
questionnaire was administered to gather data from each organizations and managed to collect
52 responses. However, only 43 of them are considered for assessment as the remaining ones are
found to be outliners. Three project managers’ competences -knowledge, skill and personal
characteristics- were used as explanatory variables for project success. Correlation and
regression analysis was performed to achieve the research objectives. The correlation analysis
revealed a positive moderate correlation between the independent and dependent variables. The
result of the regression analysis also showed that project success is affected by the three
mentioned competence variables; personal characteristics have the highest weight followed by
skill and finally knowledge. The joint effect of the independent variables considered in the model
has brought a 37% change in project success. Even though the study outcomes show projects
managers’ competence has an impact to project success, it is not to the highest effect. This may
resulted from limited number of companies incorporated in the study and competence variables
considered. Thus, future studies may increase their scope to comprise variety of organizations
and additional competence variables.
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Acknowledgement
I thank Almighty God who has provided me with direction in every venture of my life and my
beloved husband for his unconditional encouragement, support and love since the beginning of
the studying this program.
I would like to extend my gratefulness to my advisor Abdurazak M. (Dr.), for his guidance,
useful comments, and valuable suggestion through the entire process of this project work.
I am thankful to the project managers and management of the three organizations who have
dedicated their time in responding the questionnaires in such difficult time due to the outbreak of
COVID 2019 and allowed me done the study on their organizations.
I finally thank my family and friends for their encouragement, support and best wish throughout
the program.
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Table of Content
Abstract...................................................................................................................................................... iv
Acknowledgement ..................................................................................................................................... vi
List of Tables ............................................................................................................................................. ix
List of Figures ............................................................................................................................................. x
Acronyms .................................................................................................................................................. xi
CHAPTER ONE: INTRODUCTION ......................................................................................................... 1
1.1 Background ................................................................................................................................. 1
1.2 Statement of the Problem ............................................................................................................ 3
1.3 Research Question....................................................................................................................... 4
1.4 Research Objective ..................................................................................................................... 4
1.5 Significance of the Study ............................................................................................................ 4
1.6 Scope of the Study ...................................................................................................................... 5
1.7 Limitation of the Study ............................................................................................................... 5
1.8 Definition of Terms ..................................................................................................................... 6
1.9 Organization of the Study ........................................................................................................... 6
CHAPTER TWO: LITERATURE REVIEW ............................................................................................. 7
2.1 Overview..................................................................................................................................... 7
2.2 Project and Project Management ................................................................................................. 7
2.3 Project Manager and Their Competence ..................................................................................... 9
2.4 Elements of Project Managers Competence .............................................................................. 11
2.4.1 Knowledge Competence.................................................................................................... 11
2.4.2 Skill Competence .............................................................................................................. 12
2.4.3 Personal Characteristics .................................................................................................... 13
2.5 Project Success.......................................................................................................................... 14
2.6 Relationship between Project Managers‘ Competence and Project Success ............................. 17
2.7 Empirical Studies ...................................................................................................................... 18
2.8 Conceptual Framework of the Study ......................................................................................... 20
CHAPTER THREE: RESEARCH METHODOLOGY ............................................................................ 21
3.1. Overview........................................................................................................................................ 21
3.2 Research Design ............................................................................................................................. 21
3.3. Type and Source of Data ................................................................................................................ 21
3.4. Data Gathering Instrument ........................................................................................................ 21
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3.5. Population of the Study ............................................................................................................. 22
3.6. Method of Data Analysis and Presentation ............................................................................... 22
3.7. Validity and Reliability ............................................................................................................. 22
3.8. Ethical Consideration ................................................................................................................ 23
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS & INTERPRETATION ............................. 24
4.1. Demographic Characteristics of Respondents ........................................................................... 24
4.1.1. Gender and Age Distribution............................................................................................. 24
4.1.2. Level of Education ............................................................................................................ 25
4.1.3. Project Size ....................................................................................................................... 25
4.1.4. Experience as project manager .......................................................................................... 26
4.2. Project Managers‘ Competence Descriptive Analysis ............................................................... 26
4.2.1. Knowledge Competence.................................................................................................... 27
4.2.2. Skill Competence .............................................................................................................. 28
4.2.3. Personal Characteristics .................................................................................................... 29
4.3. Project Success Descriptive Analysis ........................................................................................ 31
4.4. Relationship between Project Managers‘ Competence and Project Success ............................. 32
4.4.1. Pearson Product - moment Correlation Analysis ............................................................... 32
4.4.2. Classical Linear Regression Assumptions and Diagnostic tests ........................................ 34
4.4.3. Multiple Regression Analysis............................................................................................ 36
CHAPTER FIVE: CONCLUSION & RECOMMENDATION ................................................................ 40
5.1. Summary of Findings ................................................................................................................ 40
5.2. Conclusion ................................................................................................................................ 41
5.3. Recommendation ...................................................................................................................... 41
Reference .................................................................................................................................................. 43
Appendix 1: Questionnaire ....................................................................................................................... 47
Appendix 2: Correlation and Regression Results ..................................................................................... 51
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List of Tables
Table 4.1: Gender of respondents by age…………………………………………………..26
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List of Figures
Figure 2.1: Conceptual framework of the study……………………………………………21
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Acronyms
PM: Project Management
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CHAPTER ONE: INTRODUCTION
1.1 Background
Project is a temporary endeavor in which specific resources are committed within a given time
frame, to create unique product, service, or result over an extended period of time in expectation
of benefits that exceed the committed resource. This implies that projects involve change, the
creation of new or different things with a beginning and an ending time interval. Construction of
Pyramids of Giza, publication of a children‘s book, human beings landing on the moon,
commercial software applications, and different researches can be mentioned as an outcome of
projects. The outcomes of these projects were the result of leaders and managers applying project
management practices, principles, processes, tools, and techniques to their work (PMI 2017).
Project management is about making dream come true. Project management provides people
with a powerful set of tools that improves their ability to plan, implement, and manage activities
to accomplish specific organizational objectives. But project management is more than just a set
of tools; it is a results-oriented management style that places a premium on building
collaborative relationships among a diverse cast of characters (Larson et al. 2011).
A project manager is an individual who is in charge of the project to initiate, plan, design,
execute, monitor, control and closure of a project. They must ensure that appropriate trade-offs
are made between the time, cost, and performance requirements of the project. (Larson et al.
2011). The project manager must have a combination of skills and attributes though it depends
on the type of the project. Project management concerned with both people and technical aspects.
Project management involves understanding the cause-effect relationships and interactions
among the sociotechnical dimensions of projects. Improved competency in these dimensions will
greatly enhance project managers‘ competitive edge.
Now day‘s project managers manage their projects in a fast-changing context with many
interested parties and external influencing factors in addition to the complex and varied nature of
the project itself. The project manager, thus, needs to have competencies which range from
technical to behavioral competency to deal with the overcoming challenges of changes.
The Project Management Institute (PMI 2007) on PMCD Framework identifies three different
competency dimensions: knowledge, performance and personal. Knowledge competence is the
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process, tools and technics the project manager knows to perform the projects activities. How the
project manager applies these knowledges referred as performance competence. The attitudes
and core personality characteristics of the project manager towards the routine of the project can
be referred as a personal competence.
The IPMA Competency Baseline (ICB 2006) states competence as a collection of knowledge,
personal attitudes, skills and relevant experience needed to be successful in certain functions
which are further broken down into three competence ranges. The technical competence range,
behavioral competence range and contextual competence range.
Traditional measurements of project success focused on meeting the timelines and budget goals
of a project. Which is called triple constraint or iron triangle. This view of project success has
become common and even universal. However, project success is also defined in a broader way.
Although the measurement of project success has focused on the tangible in the past, current
thinking is that success is not only about being completed in schedule and budget goals, it can
also be expressed in achieving beneficiaries, stakeholders, donors or funding agencies
expectations. However determining these measurements of success is more difficult as some can
only be evaluated years after the completion of the project. (Serrador, 2014).
Project management knowledge, skills and other personal competences like behavior, attitude,
and personality characteristics are competences what project managers need to own to
accomplish the project objectives and goal. It is generally accepted that there is a causal link
between project manager competency and project success as stated on PMCD framework of PMI
2017.
Project management is all about people, and we are struck by the enormous complexity of
interests, styles, approaches, and interactive dynamics that are unleashed when we attempt
organizational project work. Each day brings new challenges, unheralded actions, and
innovations. The competent project manager integrates key people, organizational, and technical
skills. Success in any environment largely depends upon completing successful projects, and thus
successful projects are done by skilled project managers and teams, who possess appropriate
competencies. (Englund R. and Bucero A. 2012). Therefore, this project work is conducted to
assess and understand the impact of the knowledge, skill and personal characteristics
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competencies of project managers on project success in the aspects of schedule, budget, and
quality.
It is observed that there are few number of literatures which have studied the relation between
the three mentioned components of the project manager competencies (Skills, Knowledge and
personal characteristics) and its impact on the project success, and most of them do focus on
construction projects. Project managers‘ leadership style is one of a common factor that affect
group‘s performance in a project as he/she is one of the key personnel with as main role in any
type of projects.
The aim of this project work is to assess the effect of project managers‘ competence on the
project success in three successful companies with different nature of projects. Ethiopian
Airlines group on IT projects, Elmi Olindo Contractors PLC on construction projects and
International Livestock Research Institute (ILRI) on livestock and rural development related
research projects.
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attention to the Ethiopian construction project management environment (Snesilassie, Tabish and
Jha, 2017).
As the reality of the country‘s project success rate evidences, it urges to investigate and take
swift amendment on the problems. Project manager‘s competence is among the major issues
come upfront to be addressed in assessing a given project success or failure. This research work
selected three companies from different background but with long history in successful project
management to examine the effect of project manager‘s competence in project success.
knowledge competences
skill competences
personal characteristics of a project manager.
On the other hand, the specific objectives are to evaluate the effect:
This project work tried to conduct a profound analysis of the three variables of competence of
the project manager and evaluate their impact on successful completion of the project. It makes
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an effort to show the sights how project managers in different industries exercised these
competencies based on their contribution towards project success.
The result may also encourage other researchers to conduct further study with additional
variables and more variety of project types to come up with a better outcome.
Even though project success can also be expressed in achieving expectation of different
stakeholders, it is more difficult to determine project success in this term as same can be
evaluated with is some length of time after the completion of the project (Serrador, 2014).
Therefore, this study considers the traditional and the more common measurement of project
success which is called the Iron Triangle (cost, time and quality).
The current outbreak of COVID-19 was another limitation as most offices are working home
based or on annual leaves, it hinders the data collection process.
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1.8 Definition of Terms
Project: MPI (2017) define project as a process of creating something new in a temporary
endeavor.
Project Manager: is an individual assigned by the organization that is responsible for achieving
the project objectives by leading the project team. (PMI, 2017)
Knowledge competence: is the cognizance of fact, truths and principles gained from formal
training and or experience (https://hr.unl.edu/).
Project Success: Kerzner (2009) define project success as the completion of activity within
allocated time period, budgeted cost and at the specification level, with acceptance by the
customer/user.
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2 CHAPTER TWO: LITERATURE REVIEW
2.1 Overview
Here literatures related to project managers‘ competence and its effect on the project success are
reviewed. It also discussed previous researches so as to have conceptual framework. In order to
understand the theoretical background of the subject matter various articles are also searched.
Project, project management, project manager, project manager competence, knowledge, skill,
attitude, and project success are key words to search the literatures.
PMBOK Guide, 2017 define project as a process of creating something new in a temporary
endeavor. Which can be further illustrated as project to be temporary it indicates that it has a
definite beginning and an end, with in which it is undertaken to meet its objectives by producing
deliverables referred as a unique outcome. The outcomes of these projects were the result of
leaders and managers applying project management. Application of skills, knowledge, tools, and
techniques to the project activities is a main process of project management to achieve the
requirements that are predefined. Project management is realized through application and
combination of the project management processes identified for the successful execution of
projects.
James Lewis, 2010 mentioned Dr. J. M. Juran‘s saw, that stated a project as a problem that is
scheduled for solution. Problem as stated have negative and positive aspects like cleanup an
environment and developing a new product can be exemplified respectively. Thus, projects are
conducted to solve these kinds of problems for organizations. Project management deals with
tools, people, and systems. Tools with appropriate processes and systems can be considered
sufficient condition for success in managing projects as people engage in these processes.
Projects are People, and project management is about dealing with people and getting the best
possible performance from them.
A project can be defined as an activity which consumes resources for the achievement of a
specific objective with in a predetermined time interval. Project management can be defined as
the process of controlling the achievement of the project objectives (Muhammad, 2017).
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Utilizing the existing organizational structures and resources, it seeks to manage the project by
applying a collection of tools and techniques, without adversely disturbing the routine operation
of the company. The function of project management includes defining the requirement of work,
establishing the extent of work, allocating the resources required, planning the execution of the
work, monitoring the progress of the work and adjusting deviations from the plan.
Project management is a professional and scientific specialization that differs from traditional
management by the generally limited, temporary, innovative, unique, and multidisciplinary
nature of projects—it is widely recognized that project management requires its own tools and
techniques. In an unpredictable, complex and shifting environment, projects offer organizations a
way to be a competitor in the industry.
A project is a temporary endeavor performed for the achievement of a specific objective, which
could be defined in a change resulted in benefits. A project is considered successful when it is
accomplished per the predetermined acceptance criteria, within the schedule and budget. An
application of knowledge, skills, tools, and techniques for the achievement of project objectives
can be referred as a project management. The focus on people, product, process and project is a
key to successful project management. It is synergy of these four Ps working together that yields
the successful management of projects.
A project is also defined as a series of activities which are unique and complex, performed with
in specific time, within budget, and according to specific action for the achievement of a
common goal. (Wysocki, 2014). It is further defined as a sequence of finite dependent activities
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whose successful completion results in the delivery of the expected business value that validated
doing the project from business perspective. Wysocki (2014) also define project management as
an organized common-sense approach that utilizes the appropriate client involvement in order to
meet sponsor needs and deliver expected incremental business value.
As per the definition on PMBOK (2017), the project manager is an individual designated by the
project organization who is in charge achieving the project objectives by leading the project
team. The project manager plays a vital role in the leadership of a project team so as to achieve
the project‘s objectives and stakeholders‘ expectation with in the pre specified time, cost and
quality. Research shows that project managers consistently and effectively use their knowledge,
certain essential skills while displaying a positive attitude to successfully lead the project.
The project manager is in charge of managing the project needs to have competences in dealing
with scope, schedule, finance, risk, quality and resources aspects of the project. As project
managers participate in such different aspects of the project, they are given the power and
authority to forecast, establish, and maintain project results. Their proactive involvement in the
processes, as well as their ―contribution to the corporate bottom line, make the project
management discipline a twenty-first-century core business process‖ (Zaval & Wagner, 2011).
Project managers can come from different backgrounds and therefore possess different skills.
Whereas some are chosen for their superior technical skills, others land a project manager
position through their good managerial and leadership skills. There are also those who are
prepared to be project managers because they went to school and studied the topic. In today‘s
complex project environments project managers‘ require competences for accomplishing
successful projects.
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attitudes, knowledge, and personal characteristics that can be improved with experience,
education and training.
The project manager must understand generally accepted project management skills, such as
managing project scope, time, cost, quality, and so forth. The project manager has specific
accountability for achieving the entire defined project objectives within the time and resources
allocated. The project manager performs the day-to-day management of the project and thus need
to have proven skills, knowledge and experience proportionate with the complexity, size and risk
of the project.
Alternatively, ICB states that people, practice and perspective competencies are the elements of
project management competence (IPMA, 2015). Crawford (2014) argues that, although there are
four generally accepted dimensions, namely, skills, knowledge, personal characteristics and
experience. Bredillet et al. (2015) identified core personal characteristics, knowledge and skill as
a key dimension of cempeteces. Even though this is analogous with Crawford (2014) view,
Bredillet et al. (2015) view experience as a component of skills, while Petter and Randolph
(2009) see experience as a component of knowledge and skills. This project work thus focuses
on the three competence dimensions, namely, knowledge, skills and personal characteristics.
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2.4 Elements of Project Managers Competence
Knowledge refers to awareness of or familiarity with various objects, events, ideas, or ways of
doing things. Knowledge is a fundamental factor behind a project manager‘s success. Knowledge
can be defined as facts and information which is known in a particular field. There are different
approaches to follow in pursuit of knowledge. The technocratic model is referred as the
dominant approach to pursuit knowledge. This approach comprises of three stages; acquisition of
the profession‘s fundamental knowledge base, relating this knowledge to cases and puzzles, and
finally applying it through some form of supervised practice or internship (Lester 1995).
As per Mnkandla & Marnewick (2011) knowledge has two forms, explicit and tacit knowledge.
Explicit knowledge is primarily acquired through education, thus focuses on facts around aspects
such as material properties, technical information and tool characteristics. Tacit knowledge is
obtained by internal individual processes, such as experience, reflection and internalization or
individual talents. Project managers‘ competence is determined by the knowledge they exhibit.
Project managers can gain explicit knowledge far simpler than tacit knowledge as mentioned.
Knowledge around project management concepts is a prerequisite for project managers. Formal
project management standards and methodologies form the foundation of this knowledge
(Bredillet et al. 2015). This mainly includes PMBOK® Guide stated project management
knowledge areas. Formal standards and methodologies provide the basis for project management
concepts as extensive detail is given for each process area, including the inputs, outputs as well
as tools and techniques. Project managers can learn the various project management concepts by
simply reading these documents. It is also important that project managers have knowledge
regarding the tools and techniques which can be used during a project. Having knowledge of
tools and techniques on the 10 project management knowledge areas assist them in managing a
project more effectively and efficiently. Knowledge relating to the organization should also be
known and understood by the project manager. Understanding business processes as well as the
policies which govern them will provide the project manager with relevant knowledge during the
project‘s life cycle. A lack of understanding could have a negative influence on the project as
well as the organization‘s day-to-day operations. Alternatively, project type knowledge would
also be beneficial to a project manager. For example, construction projects differ from
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information systems projects. Construction projects require extensive knowledge around
structural integrity whereas information systems projects require technology knowledge relating
to hardware and software.
Tacit knowledge is far more difficult to articulate than explicit knowledge. Project managers
with extensive experience often become subject matter experts with regard to project
management as they have worked on a multitude of projects, great and small. The knowledge
gained over the years translates to an essential ability to manage projects. Furthermore, this
directly influences their soft skills. For example, the experience improves their skills in areas
such as decision-making, problem solving and leadership as the exposure will provide guidance
on what to do under certain circumstances. Although a beginner could read up on the
aforementioned skills, only experience and exposure can truly develop these skills (Petter &
Randolph 2009).
Skill is learned capability to perform an activity developed through organized, deliberate and
continuous effort to easily carryout multifaceted activities or job functions involving ideas,
things, and/or people. It can also be defined as the proficiency or dexterity that is acquired or
developed through training or experience (El-Sabaa 2001). The skill set of a project manager
includes technical knowledge, leadership skills that underlie the project manager‘s behavior to
affect the project team positively in favor of project development, managerial skills and
administrative skills (Kosaroglu & Hunt 2009). Petter & Randolph, 2009 classifies project
management skill in two technical and soft skills. Understanding the techniques and tools and an
ability to apply them to projects and are primarily developed through training and experience
(El-Sabaa 2001). On the other hand, delegation of authority, team work and decision making are
amongst others which are categorized as soft skill.
Technical skills such as the application of various techniques, tools and business methods can be
gained through training and continuous development schemes. Such skills can be attained, for
example, through certifications such as the PMI‘s Project Management Professional (PMP)
certification. Considering that computers form a fundamental component of organizations today,
it seems logical that computer usage skills are required as a project management competence, as
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this could arguably make the activity of, for instance, planning and organizing simpler.
Understanding business methods could also be a skill acquired through experience which
corresponds to the view that experience is a component of the skills dimension (Bredillet et al.
2015).
Ability to lead, communicate, negotiate and the ability to solve problems can be mentioned as
relevant soft skills to a project manager (EdumFotwe & McCaffer 2000). Communication skill
is one of the most important skill as managing projects requires interacting with different
stakeholders and also involves multinational and multicultural project teams . Given that project
managers are responsible for managing and directing the various resources required for a project,
it is imperative that they are competent decision makers and problem solvers. As obstacles are
inevitable during projects, project managers will often have to make tough decisions to ensure
the project continues its set path. These decisions have multiple implications such as, amongst
others, impacting the schedule, budget and even business operations both in the short and long
term. It is thus imperative that the project manager can solve problems as quickly as possible to
reduce, mitigate or avoid severe implications.
Initial impression of the characteristics shows that they are comparable to soft skills. Although,
certain soft skills can be learnt from experience, others are natural to the individual. The most
prevalent characteristics revolve around people interactions which corresponds to the perception
that project management is predominately a people management discipline (Fisher, 2011).
Leading and motivating project teams is often an issue for many project managers. Team
members go through phases where they are reluctant or demotivated to continue working on a
project. A project manager must, therefore, continuously motivate the team to ensure the project
is delivered as requested. Team building exercises are also considered essential prior, during and
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after a project. The aim is to ensure teams understand one another about their various strengths
and weaknesses, as this will allow them to work more effectively with each other. Furthermore,
team building also strengthens relationships between members which facilitate improved
communication and collaboration between them.
Thinking and judging are the two most important characteristics for project managers. This is
logical as project managers are required to, amongst others, make decisions, solve problems as
well as manage people and resources. Project managers can be both introverted and extroverted
implying that a sociable individual is not necessarily the best individual for the job. Bevilacqua,
Ciarapica, Germani, Mazzuto, and Paciarotti (2014) did however discover that extroverted
managers deliver projects with less delays and less wasted time while introverted managers tend
to waste time by ―over-processing‖.
PMBOK (PMI, 2017) stated that one of the most common challenges in project management is
determining whether or not a project is successful. Traditionally, the project management metrics
of time, cost, scope, and quality have been the most important factors in defining the success of a
project. More recently, practitioners and scholars have determined that project success should
also be measured with consideration toward achievement of the project objectives. Kerzner
(2009) define project success as the completion of activity within allocated time period, budgeted
cost and at the quality level, realizing the predefined acceptance criteria by the customer and/or
user in line with organization culture.
Pinto and Slevin (1988) argue that a project success should be measured by three criteria:
technical validity, organizational validity and organizational effectiveness. First, a project should
be technically correct. Second, the project should solve the clients‘ needs and problems. And,
finally, the project has to be used after its implementation, bringing positive impact for its users.
Shenhar and Dvir (2007) proposed a framework to achieve project success using five
dimensions:
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project efficiency, which determines if a project was completed on time and within the
budget;
impact on the customer, assessed by how the project‘s product impacted the customer‘s
life and business as well as how the project results addressed the customer‘s needs;
the project impacts on its team members;
business and direct success by evaluating the project‘s impact on the organization; and
preparing for the future, reflecting on how the project results will help the organization
to construct competitive advantage and engage in future endeavors.
Over 50 years Iron triangle is used in project management for measuring project success. Cost,
time and quality is a closely related, and change of one effect on the other. Simply completing
the project by the given due date and within budget is not sufficient, because the project must
also be of acceptable quality. In today's world with a distinct competitive in the business world,
the quality is perhaps the most important element of competitive fighting. One of the biggest
problems of project managers is to harmonize project cost, time and quality. It is difficult to
achieve this because cost, time and quality are related in the way that a change of one influence
on the other two. Project managers typically try to balance the three when meeting project
objectives, but they may make trade-offs among the three during project implementation in order
to meet objectives and satisfy customers. There are many examples in practice that projects were
delivered on time and within budget but failed to meet the expectations of end users.
Perhaps the most well-known measure of success criteria in projects is the ‗Iron Triangle‘ that
places cost, time and quality at the center of project success. However, projects that are delivered
on time, within budget and meet scope specifications may not necessarily perceived to be
successful by key stakeholders (Shenhar and Dvir, 2007). Though it is undyeable that the three
constraints have dependency to each other: an attempt to increase as quality will certainly
resulted in an increment of time and cost. A decrease in quality may resulted from a tight time
schedule which consequently increases the cost (Morris and Sember, 2008).
Project Time: is about completion of the project with in the allocated time period. Project time
management is based predominantly on planning, and then it‗s all control and execution.
Planning for project schedules may stem from deadlines, customer demands, hard and soft logic,
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and a bit of prediction. The most common cause of bloated project budgets is lack of schedule
management.
To determine the time needed for the project we must first define the time required for
implementation of each activity of the project consists of. Any project can be broken down into a
number of tasks. To prepare the project schedule, the project manager has to figure out what the
tasks are, how long they will take, what resources they require, and in what order they should be
done.
Costs are important for organization and from competitive point of view. All organizations
keeping and improving quality and seeking to reduce their costs. But this is very difficult to
achieve in the same time. It is because quality and costs are related. The sources of cost of
quality are: failure (internal and external), prevention, and appraisal (Kenneth, 2005).
Project Quality: Quality is defined as the degree to which a set of inherent characteristics fulfill
requirements by PMI, 2017. The set of inherent characteristics may be a product, processes or
system. The requirements may be those of customers or stakeholders, an important group that is
ignored at great peril to the success of the project. Quality incorporates the process of the
performing organization that determines the objectives, quality policies and responsibilities so as
to satisfy the needs for which the project was undertaken. It implements the quality management
system through policy and procedures with continuous process improvement activities conducted
throughout the project as appropriate.
Once a project has been completed, the time and cost tradeoff problem is no longer an issue for
the project manager, and quality or performance becomes key issues. Before a project manager
can plan for quality, he must know what the quality expectations are. As part of the quality
management, the project manager and the project team must identify the requirements of
planning, determine how the requirements may be met, and identify the costs and time demands
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to meet the identified requirements. If the outcome of a project meets or exceeds the set
expectations, the project is deemed successful.
One of the key principles of project quality management is that quality is planned in, not
inspected in. Planning for quality is more cost-effective than inspecting work results and doing
the work over, or correcting problems to adhere to quality demands. Customer satisfaction, cost
reduction, increase in productivity and competitiveness are some from benefits of quality
management in projects.
There are a number of factors which impact whether a project will end in success or failure.
Project management competence is an important factor which frequently arises. The concept is
that does the success of a project as well as an organization got directly influenced by the
competences of their project managers. It is believed that ‗picking the right project manager is a
key to project success‘ (Crawford et. Al 2005). However, limited studies were conducted to
institute the association between competence and project success. The importance of competence
is thus questionable until its role is fully understood.
Cohen et al. (2001) examined how a project manager contributes to the overall success of a
project as well as an organization. An argument was made that a competent project manager
should have the relevant skills and knowledge to successfully support and drive initiatives in
organizations from projects to business success.
Project management competency consists of three dimensions, namely skills, knowledge and
personal characteristics. Bredillet et al. (2015) argue that it is unethical for project managers to
claim they have all the required skills and knowledge, yet projects continue to perform dismally.
It is the project managers‘ duty to ensure they are adequately proficient in project management to
ensure projects perform successfully. Each dimension does not operate in isolation as they are
inexplicably interrelated as previously discussed. Personal characteristics support and enable
both technical and soft skills. Personal characteristics also support and enable the generation of
explicit and tacit knowledge, as project managers should crave acquiring knowledge throughout
their careers. Explicit and tacit knowledge form the foundation of technical skills in particular
and help in improving soft skills. The three dimensions work together in developing project
17
management competency. Improved project success should be realized when the appropriate
project management competency has been attained. Improving project success subsequently
allows organizations to realize strategic goals and overall organizational success.
Some former related studies were explored to build up the topic. Therefore, this section includes
local and international studies that show relationships among project managers‘ competencies
and project:
Abay (2019) stated competencies of an effective project manager have been increased through
time and change. The belief that project managers‘ technical skills and human skills have the
most influence on project management. Technical skills have been the most crucial project
managers‘ competence. These skills help the project manager to be a competent and a main
contributor for the project success as well as company growth. It was also mentioned that
leadership as the most relevant project managers‘ competence which influences success of
project.
Abebe (2017) pointed out that soft competences like leadership, team working, conflict handling,
problem solving, creativity and innovation and stakeholder relationship management skills and
the top hard competencies include project cost, time and scope planning, implementation
management, project success management, and risk and change management. It also showed that
both hard and soft competences are important and lacking of them could compromise the project
success.
Nigatu (2019) stated that all competence variables, which are knowledge, skill and attitude, does
significantly affect the success of a project. When we ranked the significance of these three
mentioned competences of project manager it is shown as skill, knowledge and attitude.
Yared (2018) showed that most condominium housing construction projects are unsuccessful
because of the poor management competency, due to this fact most profession has moved past
the idea that the most competent project manager is the one with a greater technical ability. The
efforts made by different researchers of the field to define the skills and characteristics of an
effective project manager have been increased through time and this change. The belief that
18
beyond a project manager‗s technical skills, human skills have also been the most influence on
project management. On the other hand, technical skills have been the most crucial project
manager‗s skills. These skills help the project manager to be a competent and a useful figure for
the project as well as company growth.
Abebe K. (2017) stated that both hard and soft competences are important and so it should be
emphasized that lacking soft competences could compromise the project success but also hard
competencies are more important for technological projects like e-CAF project. It is identified
that hard and soft competences desired by project managers for successful project
implementation.
Nesbit (2009) has analyzed and discovered the supplementary skills that project managers
necessitate to complete the project successfully in addition to technical project management
skills. Leadership skill, people skill, team management and awareness of the political
environment are supplementary skills in the project as reviewed in the literatures. The ability of
these additional skills was incorporated in requirements of project manager position in
information technology sector. The study concluded that the qualifications in relation to
information technology include these additional skills.
Lei and Skitmore (2004) explored real life skills and experiences of project managers, to
investigate what the project manager requires as most important project management skills.
Ability to meet project objectives, communication and decision making are the most important
skills identified in the study. Communication skill is the gap between what the project manager
requires and possessed. These skills of project managers‘ were found to be made up of industrial
relations, safety and health of the workplace, environmental issues, innovation, stakeholders‘
management, coaching, client handling, business and networking skill.
Sunindijo and Zou (2011) conducted to propose required skills to be applicable in the
construction industry examining 16 previous studies on project manager skills. Conceptual,
human, political, and technical skill (CHPT construct) are identified as four essential skills for
construction project managers for better performance. This research also discusses components
that constitute these skills and their importance for construction project managers. In this study
political skill is stated as a key finding of the study essential to construction project managers.
19
Briere, et. al. (2015) intended to identify competencies of project managers in international
development companies and how they practice these competencies. On the study conducted on
28 project managers 11 competencies were identified. Namely adaptability, people management,
communication, individual qualities, social skills, leadership, integrity, local network,
knowledge, capacity development, and transformation management. The study also strained the
significance of these competencies in project management.
From these different studies it can be suggested that project managers‘ competence play critical
role in project success and lack of necessary competencies may lead to possible project failure.
Different research (Capin et al. 2006); Crawford 2005; Müller and Turner (2009)) expressed
competence as a combination of personal characteristics, skill and knowledge used to perform a
defined activity. Therefore, this study considered knowledge (understanding the subject matter,
planning and scheduling, cost and risk management and the like), skill (leadership, decision
making, communication, motivation, team building, problem solving) and personal
characteristics (attitudes, personal traits, flexibility and adaptability, honesty) as an independent
variable; and ,in the eyes of the iron triangle (cost, quality and time), project success considered
to be dependent variable
Knowledge
Project
Success
Skill
Personal
Characteristics
20
3 CHAPTER THREE: RESEARCH METHODOLOGY
3.1. Overview
In this chapter, the methodology employed by the researcher is presented. It contains the research
design, source and type of data, gathering instruments, target population, sampling design,
method of data analysis and presentation, validity and reliability of the data and finally ethical
consideration of the project work.
According to Saunders, Lewis and Thornhill (2009) research design is the general plan of how
the researcher will go about answering the research questions. The research design applied for
this project work is explanatory research design as the main objective of this research is to study
the effect of project managers‘ competencies on the success of a project. Marczyk et al (2005)
recommends explanatory research design to studies which involves fact finding enquiries and
reporting of what has happened or what is happening.
The study employed primary sources of data. Furthermore, company manuals, project reports
and other related materials are referred that are believed to strengthen the achievement of the
research objectives.
Data collection is done through questionnaire modified from Ahmed Al-Khawaldah, (2017) and
Nigatu, (2019). As reviewed on different research works, adopting the survey questionnaire than
of constructing a new one does assist in obtaining a concrete finding. Therefore, the
questionnaire was modified to suit the selected organizations to conduct the study.
21
3.5. Population of the Study
A target population is the collection of those people, events and records with the desired
information for the research study from which a sample is taken (Saunders, Lewis and Thornhill.
2009).The researcher incorporated three companies in the project based on convenience for the
researcher, willingness of the companies to corporate, long player in the sector and being
successful in accomplishment. Elmi Mundo has more than 70years of experience in the
construction sector and participate in various projects including ET projects; ILRI is a non-
government international organization with more than 30years experience in research and
implementation. Ethiopian Airlines group is one of, if not the only one, government organization
set as example to manage success in its various projects. Hence, these three organizations are
included in the research work aiming to achieve the research objectives.
project managers and section heads who were involved in project management were target
population. 60 questionnaires, 20 for each were disseminated to staffs selected randomly from
each of the three organizations.
The collected data was analyzed using quantitative data analysis method. The data obtained
using close ended questionnaires was analyzed using SPSS (Statistical Package for Social
Science) software package in order to obtain descriptive analysis of the data. To summarize the
responses frequency, percentage, mean and standard deviation were used. Results are presented
in tables to make them comprehensible.
Correlation and regression analysis were also done by the help of SPSS. The Correlation analysis
is done to point out the degree of association between the dependent variable and each
independent variable. Linear regression analysis is performed to show the effect of the dependent
on the independent variable.
The study is done in three organizations which practice projects as a way of achieving their
organizational goal. Equal number of questionnaires were distributed in each organization in
order to have valid representation and equal input on the result. The questionnaire was prepared
22
in an effortlessly understandable way to the respondents so that the required information can be
gathered so as to increase reliability of the ultimate findings. The questionnaire is adjusted in a
context that assured applicability in the three organizations. In addition, it is evaluated and
approved by the research advisor for the content of its validity.
In this project work preparation, the ethical confidential documentation was implemented &
taken in to account during the overall process. All the documents used during the preparation of
this project work will only be used for the accomplishment of this paper. Moreover, there is no
personal interest and the project worker will act professionally.
23
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS & INTERPRETATION
In this part the results of data analysis are presented accompanied by their discussion. Tables,
mostly, are used to summarize the analysis results.
From 60 questionnaires sent, 52 of them were responded. From 52 collected responses one
overrated and eight under rated responses which made the collected data not normally distributed
are excluded. Thus the responses which are considered for analysis are decreased to 43 which is
71.67% rate of response. A response rate of 70% and over is presented as excellent according to
Mugenda (2003). Therefore, this response rate is found to be sufficient to conduct the analysis.
Five scales ranking i.e. Linkert scale; where 5 represents Strongly Agree, 4 Agree, 3 Neutral, 2
Disagree and 1 strongly disagree is used to develop adopted questionnaire. Statistical software
SPSS version 23 is used to analyze the date collected. Since the questionnaires were prepared
using Google Form application, the researcher has made all questions ―required‖ which means
the respondents can‘t leave any questions unanswered. Therefore there are no any missing
values.
From the collected data it is observed that higher number of respondents are male (n=35,
%=81.4%) and few female respondents (n=8, %=18.6%). This indicates that there is lower
number of female project managers than male in the three organizations. Furthermore, greater
number of the respondents are in the age interval of 30 – 40 group, male respondents (n=26) and
female respondents (n=5), which represents 72.09% from the total. In general, 83.72% of the
project managers are found to be under the age of 40 that indicates that most of the project
managers in the organizations are young. This can be considered as benefit for these
organizations as young professionals are considered to be easily flexible to accept changes and
willing to deal with new business opportunities.
24
Table 4.1 Gender of respondents by Age Group
Age
Gender 20 - 30 30 - 40 Over 40 Total
Female 3 5 0 8
Male 2 26 7 35
Total 5 31 7 43
Source: Own survey, 2020
As can be seen in the table (4.2) below, there is almost equal number of respondents who have
Bachelor‘s (n=22, %=51.16%) and Master‘s degree (n=21, %=48.84%).
Table 4.3 shows that most of the respondents, 34.88%, have managed intermediate projects,
followed by very large (n=12, %=27.91%) and large (n=11, % =25.58%) projects. This shows
that most of the respondents are well educated and experienced enough to manage highly
budgeted projects which higher management of organizations and owners need it to be well
managed and successful. It is also found that 5 project managers who represent 11.63% of the
total respondents managed small projects.
25
4.1.4. Experience as project manager
As shown in the below table most, 65.12%, of the respondents have an experience of 5 to 10
years in managing projects. 18.60% of the respondents have worked as a project manager for
more than 10 years and 16.28% from the total have an experience of less than 5 years. This
implies that most of the project managers are youngsters who serve their organization less than
10 years thus have more probability to more serve for extended number of years remain other
factors constant.
Experience as a project
manager Frequency Percentage
< 5 years 7 16.28
5 - 10 years 28 65.12
> 10 years 8 18.60
Total 43 100.00
Source: Own survey, 2020
Descriptive analysis refers to statistically describing, aggregating, and presenting the constructs
of interest or associations between these constructs. The principal objective of descriptive
statistics is to accurately describe distributions of certain variables within a specific data set
(Marczyk, DeMatteo, Festinger 2005). Central tendency and dispersion are some of the methods
for examining the distribution of variables. Central tendency is an estimate of the center of a
distribution of values while Dispersion refers to the way values are spread around the central
tendency. (Anol 2012). Mean and standard deviation are used in this project work respectively.
Mean is the most common measure of central tendency and may be defined as the value which
we get by dividing the total of the values of various given items in a series by the total number of
items. Standard deviation measures dispersion considering outliers by using a formula that takes
into account how close or how far each value from the distribution means.
26
σ = standard deviation
∑ = summation
X = value of each variable
μ = mean
N = number of values
A descriptive analysis for mean value of the three Project Managers‘ Competence variables
ranges between 4.17 to 4.39. The standard deviation is also ranges between 0.53 to 0.70. The
value of SD indicates that most of respondent agreed about the importance of the project
managers‘ competence variables stated. Most of the replies for these competence variables
ranges from agree to strongly agree, though there is also a minimum rate of strongly disagree
from the respondents on the personal characteristics competence. The overall result shows that
the respondents mostly agreed on the importance of outlined competence variables.
As shown on the below table (4.6) most of the respondents agreed with the stated variables under
knowledge competence with the average mean value of 4.39 and average standard deviation of
0.62, which 0.49 to 0.78. This result shows that there is a consensus among respondents on stated
variables of knowledge competence.
Diligent planning, setting objectives and strategies, managing resources and risks; and being
aware of organizational facts are some of the variables that this study tried to look their
relationship or importance of knowledge competence on the success of a project. Most
27
respondents‘ response indicates that these are items that a project manager has as a knowledge
competence.
Knowledge N Mean SD
1.1 The project manager makes time to plan
thoroughly and prioritize diligently. 43 4.40 0.49
1.2 Making judgments based on reasonable
assumptions, and be aware of their impact 43 4.42 0.63
1.3 Set objectives of the project in alignment with
the strategic plan of the organization 43 4.12 0.76
1.4 Manage project elements, including, but not
limited to, schedule, cost, resources, and risks. 43 4.35 0.78
1.5 Work with the project sponsor, team, subject
matter experts and stakeholders to develop an
appropriate project delivery strategy. 43 4.60 0.49
1.6 Implement the strategy in a way that
maximizes the business value of the project. 43 4.23 0.68
1.7 The project manager is knowledgeable
enough to explain the project to others in aspects
of the organizational strategy, mission, goals and
objectives 43 4.63 0.49
Average
4.39 0.62
Source: own survey 2020
As shown on the below table (4.7) most of the respondents agreed with the stated variables under
skill competence with the average mean value of 4.32 and standard deviation of 0.53, which
ranges from 0.43 to 0.66. This result shows that there is a consensus among respondents on
high significance of skill competence.
28
Table 4.7 Skill Competence
Skill N Mean SD
2.1 The project manager recognizes the project
management frameworks, standards and
methodologies 43 4.40 0.66
2.2 Understands the business methods, processes and
procedures of the projects as well as the organization. 43 4.16 0.53
2.3 Has planning and organizing skills
43 4.51 0.51
2.4 Able to communicate at different levels
43 4.65 0.48
2.5 Able to deal with ambiguity, changes, conflicts
43 4.05 0.43
2.6 Exhibit integrity and being culturally sensitive,
courageous, a problem solver, and decisive 43 4.14 0.52
2.7 Has a holistic and systemic view of the project,
taking into account internal and external factors
equally. 43 4.35 0.57
Average
4.32 0.53
Source: Own survey, 2020
As shown on the below table (4.8) most of the respondents agreed with the stated variables under
personal characteristics competence with the average mean value of 4.17 and standard deviation
of 0.70, which ranges from 0.50 to 1.37. This result shows that there is unanimity among
respondents on high significance of personal characteristics.
29
Table 4.8 Personal Characteristic competence
Std.
Personal Characteristics N Mean Deviation
3.1 Able to build effective teams, be service-
oriented, and have fun and share humor effectively 43
4.07 0.59
with team members.
3.2 Shows organizational dedication and
obligation for success if the project. 43
4.19 0.50
3.3 Exercise respect, helping others retain their
autonomy, courteous, friendly, kind, honest, 42
4.26 0.63
trustworthy, loyal, and ethical.
3.4 Being optimistic, collaborative, positive and
give credit to other where due to ensure project 43
4.51 0.51
success
3.5 Coordinate and support people responsible at
different level of the organization to get the work 43
4.19 0.66
done
3.6 Relate individual and team concepts with
aspects of the project 43
4.40 0.62
3.7 Show effort in developing and coaching the
project team. 43
3.58 1.37
Average
4.17 0.70
Source: Own survey, 2020
The overall analysis result shows that there is an agreement between most of the respondents on
the variables raised to constitute a project mangers‘ competence. The average SD value for all
the three competence variables resulted below one (0.62 for Knowledge; 0.53 for Skill; and 0.70
for personal characteristics) which shows responses from the project managers is closely
dispersed to the mean. Though the overall result shows an agreement on items raised some
respondents expresses their disagreement on some aspect of personal characteristics competence
of the project manager. This competence sub variable on which the responses indicate which
needs an improvement is that the project managers‘ commitment towards coaching his/her team
to develop their capacity for the better achievement of the project‘s success.
30
4.3. Project Success Descriptive Analysis
As shown on the below table (4.9) most of the respondents agreed moderately on the stated
variables under project success with the average mean value of 3.80 and standard deviation of
0.60 which ranges from 0.29 to 0.92. This result shows that there is a moderate agreement among
respondents on the identified variables of project success. The respondents are less agreed on
aspects such as major cost changes and on time completion.
Std.
Project Success N Mean Deviation
1. No major with- cost change demands in the
43
project 3.23 0.92
2. Avoidable resources are reduced with the
43
help of project manager‘s experience. 4.09 0.57
3. The project was completed on or with
43
acceptable budget variance. 3.91 0.29
4. The Project manager reduced the cost of
some activities with no impact on the project 43
3.79 0.64
quality.
5. Most of the scheduled milestones were met.
43
3.95 0.58
6. On time completion of the project.
43
3.74 0.73
7. No slipping on the critical tasks and
43
delivery dates. 3.53 0.67
8. The Project was delivered upon the
43
predefined requirements. 3.86 0.35
9. The customer requirements are always
43
fulfilled by the project deliverables 3.81 0.70
10. The business objectives of the project
43
were achieved. 3.88 0.59
11. The unexpected risks probability is
43
reduced by setting alternative plans. 3.95 0.62
Average
3.80 0.60
Source: Own survey, 2020
The responses show that about twenty three percent of respondents indicated in their response
that there was major cost change request during the project and about thirty nine percent are
neutral about it. It is also observed that most of the responses in this regard come from
31
construction and IT projects. It can thus be explained that, in construction projects, it is due to
material cost inflation in the market. Requirement changes and emerge of new technology for
existing projects are mentioned as some of the reasons for the cost changes.
About twenty seven percent of the respondents showed that there was a delay on completion of
projects on time though the percentage is not significant from the total number responses
received from the project manager. Of this percentage more than half of the delays are reported
from the construction project managers. This is due to cost inflation of raw material and delays
resulted from venders.
The overall result shows that there is a moderate agreement between respondents on variables
mentioned to constitute project success criteria though there are areas which have improvement
opportunity.
According to (C.R. Kothari, 2004), in measuring relationship between variables there are two
questions we need to address.
i. Does there exists association or correlation between the two (or more) variables? If yes,
of what degree?
ii. Is there any cause-and-effect association among the independent and dependent variables
in the population bivariate or among more than two variables (a variable as dependent
and 2 and more independent variables on the other) in the population multivariate? If
yes, of what degree and in which direction?
The first question is answered by the use of correlation technique and the second question by the
technique of regression.
According to Marczyk, DeMatteo, Festinger (2005), correlations are basic and useful measure of
association between two or more variables. Correlations provide information about the direction
of the relationship (either positive or negative) and the intensity of the relationship (–1.0 to +1.0).
The sign of the coefficient represents the direction of the relationship. For instance, a correlation
32
of 0.78 would indicate a positive or direct correlation, while a correlation of –0.78 would
indicate a negative or inverse correlation. The coefficient (value) itself indicates the strength of
the relationship. The closer it gets to 1.0 (whether it is negative or positive), the stronger the
relationship. Generally, correlation values of .01 to .30 are considered small, values of .30 to .70
are considered moderate, values of .70 to .90 are considered large, and values of .90 to 1.00 are
considered very large. Importantly, these are only rough guidelines. This study used the Pearson
product-moment correlation (r) as it is one of the most widely used correlations to determine the
direction of the association and their strength between the variables. The correlation result
interpretation is presented in the table below.
Below table (4.11) shows the result of correlations analysis which indicates the relation between
the project managers‘ competence and project success. The correlation value ranges between
(r=0.356, p<0.01) and (r=0.560, p<0.01) among competencies of the project manager and
success of the project. It shows that, according to the interpretation table, there is positive
moderate correlation between the independent and dependent variables. This also shows there is
positive moderate correlation.
33
Table 4.11 Pearson’s Correlation Result (Source: Own survey, 2020)
Personal Project
Knowledge Skill Characteristics Success
Knowledge Pearson Correlation 1
Sig. (2-tailed)
N 43
Skill Pearson Correlation .372* 1
Sig. (2-tailed) .014
N 43 43
Personal Pearson Correlation .191 .386* 1
Characteristics Sig. (2-tailed) .221 .010
N 43 43 43
Project Success Pearson Correlation .356* .460** .560** 1
Sig. (2-tailed) .019 .002 .000
N 43 43 43 43
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
The relationship among the dependent and the independent variables is assessed by the
correlation analysis. Furthermore, the cause-and-effect relationship between variables regression
analysis is also conducted. Regression analysis is performed to examine the effect of the three
independent variables (knowledge, skill and personal characteristics) on the dependent variable
(project success). In the following, results for the diagnostic tests of the classical linear
regression model assumptions and the regression analysis is presented.
Basically, there are statistical assumptions which need to be satisfied in regressing variables to
bring out the underlying relationship among them and these assumptions are known as classical
linear regression assumptions. According to (Brooks, 2008) the assumptions underlying the
method include the assumption that states the mean of the error for all Xi (independent
variables) is zero; the assumptions of homoscedasticity or no heteroscedasticity, which assumes
that the variance of the errors is constant; no autocorrelation assumptions that presume the
covariance between the error terms over time is zero; the assumption of normality that states the
residuals are normally distributed with zero mean and constant variance; and at last
multicollinearity assumption that states the explanatory variables are not correlated with one
another. The test results for these assumptions are presented below for the regression model.
34
Normality Distribution Test
Prior of conducting multiple linear regression analysis the researcher has done one of basic
assumptions of test of regression model test, test of normality distribution. Multiple regressions
require normal distribution of the independent variables. The points falling by the side of a
straight line shows the data is normally distributed. Non normality happens when there are
nonconformities with this line. Outliers resulted when there is stragglers at one or another end of
the normal probability plot. Long or short distribution tails both ends of the plot referred as
curvature. A lack of symmetry resulted from curvature, concave or convex. Segmentation,
plateaus or gaps, plateaus along the plot designate certain occurrence that needs closer analysis.
From the result it is observed that a linear relationship exists among project success and project
managers‘ competence. Appendix 2 contains the PP plot.
According to (Gujarati, 2004), given the value of the independent variables, the mean, or
expected, value of the random disturbance term ui is zero. This assumption will not be violated
with the prevalence of a constant term in the regression equation (Brooks, 2008). The regression
model in this study possesses constant terms so that the assumption of zero mean value of
disturbances will hold.
Given the value of explanatory variables, the variance of ui is the same for all observations, i.e.
the errors in the regression equation have a common variance. This assumption is termed as
homoscedasticity. Homoscedasticity refers to whether residuals are equally distributed, or
whether they tend to bunch together at some values, at other values, spread far apart.
Homoscedastic data plot looks like a shotgun blast of randomly distributed data. However, a
cone or fan shape data indicates presence of heteroscedasticity.
As observed from the residuals plot, the data does not have an obvious pattern and the points are
equally distributed on the x-axis (above and below zero), and on the y-axis (to the left and right
of zero). Hence, the assumption of homoscedasticity is assumed to hold. The PP plot is shown in
Appendix 2.
35
The assumption of no autocorrelation
The assumption is the errors are uncorrelated with each other. The errors expressed as ‗serially
correlated‘ or ‗autocorrelated‘ if they are found to be not uncorrelated with one another. A test of
this assumption is therefore required and as the population disturbances cannot be observed, tests
for autocorrelation are conducted on the residuals (Brooks, 2008).
Durbin and Watson (DW) test is a test for first order autocorrelation, i.e. it tests a relationship
between an error and its immediately previous value. According to Durban and Watson, the DW
value close to 2 is a preliminary indicator for absence of serial correlation. In the current case,
the DW test value is 2.41(see appendix 2). The value is a little greater than 2 and it can be
concluded that there is no first order serial correlation among the disturbances.
One of the assumptions of classical linear regression mode is that there are no perfect linear
relationships among the explanatory variables (Gujarati, 2004). Multicollinearity can be assessed
by examining tolerance and VIF (Variance Inflation Factor). As per (Pallant, 2005), the
variability of an identified predictor variable is not described by another predictor variable. A
multiple correlations between the predictor variables indicated as high when result is less than
0.1 tolerance value, indicating likelihood of multicollinearity. Variance Inflation Factor (VIF)
measures the impact of collinearity among the variables in a regression model. VIF is 1/
tolerance, and always greater than or equal to 1. VIF value more than 10, it indicates that there is
a probability of multicollinearity among variables. An analysis result (stated in Appendix 2)
indicates that there is no likelihood of multicollinearity between the variables in the model.
Multiple regression analysis was used to explain the effect of the explanatory variables on the
explained variable statistically. To enable researchers measure the association among knowledge,
skill and personal characteristics aspects of project managers‘ competences and a project
success, a multiple regression is run as part of a simple regression.
36
In this research, the assumption is the variation in a project success Yci can be expressed for
company c in terms of variations of project managers‘ skill, knowledge and personal
characteristics and depicted in the following linear equation:
Yci = α1 + Σα2iSci + Σα3iKci + Σα4iPCci +ei
Where,
Sci = Project managers‘ skill for company i
Kcj = Project managers‘ knowledge for company i
PCci= Project managers‘ personal characteristics for company i
α1 = constant
ei = stochastic term
α2i = coefficient of Sci
α 3i = coefficient of Kci
α4i = coefficient of PCci
According to Pallant (2005) a regression equation among the predictor and the predicted variable
is developed as a result of multiple regressions.
This project work aims to assess the impact of project managers‘ competence on project success.
While analyzing the correlation, it was indicated that all the independent variables (knowledge,
skill and personal characteristics) have a moderate positive correlation with project success.
Furthermore, to indicate their effect on project success multiple regression analysis is
undertaken. As a result, percentage variance in the dependent variable (Success) explained by the
independent variables (which are knowledge, skill and personal characteristics) is denoted by the
result of adjusted R2 values and a test is also conducted to show the statistical significance.
Below model summary table (4.12) shows the result of the regressions analysis. Accordingly,
0.37 result of adjusted R square indicates that there is a 37.00% impact on the project success is
caused by the project managers‘competences. Consequently, 63.00% of the variation in project
success was explained by other factors other than project managers‘ competence. In other terms,
it is noted that 37.00% of the changes in the project success variables could be attributed to the
combined effect of project managers‘ competence.
37
4.12 Multiple Regression Analysis
Std. Change Statistics
Adjusted Error of R
R R the Square F Sig. F
Model R Square Square Estimate Change Change df1 df2 Change
a
1 .644 .415 .370 .1856 .415 9.209 3 39 .000
a. Predictors: (Constant), Personal Characteristics, Knowledge, Skill
b. Dependent Variable: Project Success
Source: own survey 2020
AVOVA
ANOVA is just another way of looking at our regression model and what it tells us is that out
model with one predictor works better than simply predicting using the mean, rather shows the
significance of statistical relationship between the predictor and outcome variable. Our table
(4.13) shows that a significance of less than 0.001 which indicates there is a statistically
significant relationship between the dependent variable (project success) and the predictor
variables.
Sum of Mean
Model Squares df Square F Sig.
1 Regression .952 3 .317 9.209 .000b
Residual 1.343 39 .034
Total 2.295 42
a. Dependent Variable: Project Success
b. Predictors: (Constant), Personal Characteristics, knowledge, Skill
Source: Own survey 2020
To explain the relative significance of independent variables the standardized coefficients are
used. After standardizing the independent variables regression analysis is done to got these
coefficients. According to Pallant (2005) standardized beta values used to indicate the level of
impact each independent variable has on the dependent variable.
38
Table 4.14 Standardized Beta Coefficients
Coefficients’
Above table (4.14) shows that personal characteristics has the higher effect on project success
since its standardized coefficient beta value of B=0.438(43.8%). Project success is affected next
by skill with value of B=0.220(22%). Knowledge competence with a beta coefficient value of
B=0.191(19.1%) is found to have the least effect on project success. On the other hand, less than
0.01 significance values, indicates that the competence variables have positive significant effect
on project success. Based on the results it can be concluded that the success of projects in the
three selected organizations is influenced by knowledge, skill and personal characteristics
competences of their project managers.
Generally, the findings of this study coincide with the findings of (Nigatu, 2019; Abay, 2019;
Abebe, 2017 and Yared, 2018) who found that project managers‘ competences have significant
effect on success of a given project. The study found out project success is more affected by
personal characteristics or soft skills of project managers and this finding is consistent with
(Abebe, 2017). However, skill competence of project managers was given more weight among
the success factors of a project in the findings of (Abay, 2019 and Nigatu, 2019).
39
CHAPTER FIVE: CONCLUSION & RECOMMENDATION
The project managers‘ competence impact on project success is ranked as below per the outcome
of the regression analysis:
Personal characteristics, per the results of this project work, ranked first having the highest
significant effect on successes of project. It is agreed that project managers building effective
teams by helping others to retain their autonomy, by being courteous and friendly. Optimism and
collaboration of managers are another aspect that the respondents agreed that project managers
show their commitment towards the organization to implement successful projects. Project
managers‘ ability to link teams and individuals‘ capabilities towards the predetermined
objectives is another variable which creates consensus among respondents to get the work done
and achieve success in projects.
Skill is found to be the next competence that has significant effect on project success. The
importance of both soft skill and hard skill are also supported by different literatures at different
times. Communication and planning skills are major competence variables that the respondents
expressed the agreement by awarding highest weight among others. Recognizing the project
management frameworks, standards and methodologies; understanding the business methods,
processes and procedures of the projects as well as the organization; ability to deal with
ambiguity, changes, conflicts; exhibit integrity and being culturally sensitive, courageous, a
problem solver, and decisive and having a holistic and systemic view of the project are other
competences variables to implement successful projects.
Knowledge is another competence which has an impact on project success next to personal
characteristics and skill competence. Being knowledgeable of the project strategies in aspects of
the organizations‘ mission, goals and objectives and ability to work with the project sponsor,
team, subject matter experts and stakeholders to develop an appropriate project delivery strategy
are among the knowledge competence variables highly weighted by the respondents.
40
5.2. Conclusion
As per the results of this study, project success is significantly affected by knowledge, skill and
personal characteristics competence variables of project managers. The mean result of these
competences ranges from 4.17 to 4.39, with 0.53 to 0.70 ranged standard deviations. The result
indicates the existence of a consensus on high degree of project managers‘ competence. The
mean of 4.29 and 0.62 standard deviation values for the identified competence variables of a
project manager indicates that there is an agreement on the existence of the mentioned
competence variables; this make it consistent with the findings of the Galvin, et al (2014) and
Briere, et al (2015).
Project success‘s overall result shows that there is a moderate agreement between respondents on
variables mentioned to constitute project success criteria though there are areas which have
improvement opportunity. It is shown that quality, which is detailed by fulfilling customer
requirements, delivering projects upon predetermined requirements, meeting objectives and
setting alternative plans to reduce the unexpected risks is the variable where most respondents
agreed on which constitute project success. They are less agreed on the cost aspect of the project
success, which is implied that some projects encounter some major cost changes which were
unable to cut due to its effect on the quality of the deliverables. On the other hand, it is indicated
that the project managers‘ experience helped to eliminate some unnecessary resources so does
the cost on which. Time is another success variable addressed by meting critical delivery dates,
scheduled milestone targets and on time completion on which some responses showed some
variance.
5.3. Recommendation
41
Offer project management trainings at company level and encourage the project
managers to take different courses to develop their knowledge in managing projects as
well as their skills.
Continuous refreshment trainings to project managers since various tasks can be tedious
and the managers‘ negligent performance may put the project in hazard.
42
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46
4 Appendix 1: Questionnaire
Dear Respondent,
I kindly request you to participate in this project work by filling the questionnaire. Please do not include
your name so as to confirm that confidentiality of your responses. Kindly, I will be expecting your
genuine reply in good time.
I would like to appreciate your willingness and cooperation in giving reliable information and also let you
know that your responses will only be used for academic purpose only.
Sincerely
Netsanet Gelata
Overall Instructions
Name of the respondent is not required.
In all cases where answered options are available please tick (X) in the appropriate box.
47
4. Highest size of the project you have managed (based on the project's budget and currency=USD)
1 2 3 4 5
1. Knowledge
The project manager make time to plan
1.1
thoroughly and prioritize diligently
2. Skill
The project manager recognizes the project
2.1 management frameworks, standards and
methodologies
48
Understands the business methods,
2.2 processes and procedures of the projects as
well as the organization.
2.3 Has planning and organizing skills
2.4 Ability to communicate at different levels
Ability to deal with ambiguity, changes,
2.5
conflicts
Exhibit integrity and being culturally
2.6 sensitive, courageous, a problem solver, and
decisive
Have a holistic and systemic view of the
2.7 project, taking into account internal and
external factors equally
3. Personal Characteristics
Able to build effective teams, be service-
3.1 oriented, and have fun and share humor
effectively with team members.
Shows organizational dedication and
3.2 obligation for success if the project.
Exercise respect, helping others retain their
3.3 autonomy, courteous, friendly, kind, honest,
trustworthy, loyal, and ethical.
Being optimistic, collaborative, positive and
3.4 give credit to other where due to ensure
project success
Coordinate and support people responsible
at different level of the organization to get
3.5 the work done
49
Part III: Project Success
*Scale: 1-Strongly disagree, 2- Disagree, 3- Neutral, 4 – Agree, 5- Strongly Agree
Project Success 1 2 3 4 5
50
5 Appendix 2: Correlation and Regression Results
Correlation
Personal
Characteristic
Knowledge Skill s Project Success
Knowledge Pearson
1
Correlation
Sig. (2-tailed)
N 43
Skill Pearson
.372* 1
Correlation
Sig. (2-tailed) .014
N 43 43
Personal Pearson
.191 .386* 1
Characteristics Correlation
Sig. (2-tailed) .221 .010
N 43 43 43
Project Success Pearson
.356* .460** .560** 1
Correlation
Sig. (2-tailed) .019 .002 .000
N 43 43 43 43
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Variables Entered/Removeda
Variables
Model Variables Entered Removed Method
1 Personal
Characteristics,
. Enter
Knowledge,
Skill
a. Dependent Variable: Project Success
b. All requested variables entered.
51
Model Summary
Std. Change Statistics
Error of
Adjuste the R
R dR Estimat Square F Sig. F
Model R Square Square e Change Change df1 df2 Change
a
1 .644 .415 .370 .1856 .415 9.209 3 39 .000
a. Predictors: (Constant), Personal Characteristics, Knowledge, Skill
b. Dependent Variable: Project Success
ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression .952 3 .317 9.209 .000b
Residual 1.343 39 .034
Total 2.295 42
a. Dependent Variable: Project Success
b. Predictors: (Constant), Personal Characteristics, Knowledge, Skill
Coefficients’
Standardize
Unstandardized d Collinearity
Coefficients Coefficient Statistics
Model T Sig.
s
Std. Toler
B Beta VIF
Error ance
(Constant) 1.334 0.507 2.63 0.012
Knowledge 0.136 0.094 0.191 1.442 0.000 0.859 1.164
1 Skill 0.173 0.111 0.220 1.565 0.000 0.758 1.319
Personal
0.269 0.082 0.438 3.296 0.002 0.848 1.179
Characteristics
a. Dependent Variable: Project Success
52
b
Model Summary
53
54