M977Z224 Charindech Santiwatthana
M97q0211 梁耀文
Literature Review
Project and Project management
 A project is usually initiated with a specific need from the organization.
Either satisfied result or unsatisfied, project will consume time, resource and
man power. To gain the satisfied result, project requires some discipline, and
that is project management.
 The project management is the business process of producing product
service or to gain result over the specific time limited, it is accomplished
through the application and integration of project management process of
operation (i.e. initiating, planning, executing, monitoring and controlling,
and closing) (Project Management Institute, 2004)
Literature Review
Project Success
 There exists significant number of organizations that have failed their
projects by confusing the definition of “Project success” and “Project
management success” (Cooke and Davies, 2002) .
 Normally, project success can be achieved when the project outcome fulfills
somewhat of stakeholder expected, but project management can be
succeeded by precisely controlling the cost, time and project goals. And
there some times what stakeholder expected and the understanding of
project goals from project manager perspective are not the same.
 Besides that, some other researches showed that the project failure may be
caused by the insufficiently collaborative working relationship of the project
(project manager, project team, methodology (process), and measurement
system) (Standish Group, 2000).
Literature Review
Project Manager
 Specifically project manager is the critical role of the project, the
responsible to plan, execute and manage the project with the defined
budget and time under the uncertain environment.
 The previous literatures have shown some specific importance between
project management and people who conducted the process, referring to
the content of Chen and Yang (2009), managing people effectively can
have a significant impact on the result of a project, and that makes the
responsibility lie mainly with project manager.
Project Manager Evaluation
 Traditionally, project manager is evaluated based on his/her project’s
performance. But projects are different by its conditions and
environments, it is still hard to tell who performs better than the others.
Literature Review
Financial Measures
Cost, Schedule and Performance Measure
 Cost, schedule and performance measure is the most widely used measure
for making project manager performance evaluation(Kerzner, 2004; Pinto
and Slevin, 1988).

Cost has been used when executing and evaluating the project

Schedule can track the completion of required activities

Performance measures the project outcome, normally measures
against the desired outcome
 But many researchers suggested that the evaluations that use only cost,
schedule and performance measures are too rough to describe project
manager performance
Literature Review
Net Present Value
 Net present value (NPV) is a measure that considers both time and cost,
using NPV allows inspector to speculate the value of the project in constant
monetary unit. NPV is a legitimate measure (Blanchard, 1995; Pinder and
Marucheck,1996).
 NPV can be effected by discount rate which is used to adjust the time series
of benefits and cost for risk, time preferences of money and inflation, so the
value changes from time to time (Swartz, 2008).
Literature Review
Earned Value Management System
 The earned value management system (EVMS) is a program management
that is designed for effectively integrate the work scope of a program with
the schedule and cost elements for optimum program planning and control.
 EVMS allows project controller to track the progress of the project. And
also EVMS is widely accepted in performance measurement in both private
and public sectors (Christensen,1994; Garrett, 2006). EVMS consists of
several variables shown as table below;
Table 2-1 Earned Value Management Variables
EVMS variables
Cost Variance
The difference between the budgeted cost of work performed
and the actual cost of work performed
Cost Performance Index
(CPI)
The ratio of the budgeted cost of work performed over the
actual cost of work performed. This CPI is a measure of
efficiency and can be used to predict the final range cost.
Schedule Variance
The difference between budgeted cost of work scheduled and
budgeted cost of work performed
Schedule Performance
Index (SPI)
The ratio of budgeted cost of work schedule over cost of work
performed. A productivity measure that can be useful in
assessing how much work has been accomplished
Budget at Completion
(BAC)
The sum of all budget values that have been previously
established for the work to be performed on a project
Estimate at
Completion(EAC)
The expected total cost of a particular schedule activity
Variance at Completion
(VAC)
The difference between the Budget at Completion (BAC) and
the Estimate at Completion (EAC) is VAC = BAC - EAC
Literature review
Non-Financial Performance Measures
Balanced Score Card
 Balanced score card (BSC) is a popular non-financial measure for using in business
purpose activity, that is introduced by the famous persons Kaplan and Norton
(1992,1993,1996a, b)
 Basically, BSC was developed to implement the organization’s long-term strategy
into the more short-term action by considering the top-manager perspective to the
performance measure (Jazayen and Scapens, 2008).
 BSC is very useful to reflex the organization performance, and because of its range
of use, BSC has been adopted into many modern sophisticated management
techniques (Jazayen and Scapens, 2008) but because of it means different thing for
different perspective, so it’s hard to adopt in the evaluation model that aims for
general purpose.
Literature review
Leadership Behavior and Managerial Practice
 There are several literatures which mention that leadership behavior has a significant
importance weight on the project success.
 Müller and Turnner (2006) proposed the research paper about the importance on
matching leadership style of project manager and the project type. They suggested
that project success also receives the influence from the compatibility of project
manager’s leadership style and organization nature (i.e. working practice, culture,
structure).
 In 2007 Chen and Lee proposed the model for evaluating the performance of
managerial practice based on how project manager can elaborate 14 managerial
practices of leadership behavior. The author also suggested that when making
evaluation on managerial practice, the inspector should consider 4 proposed factors.
Table 2-2 4 Clusters of 14 Leadership Behaviors
Making
decision
Planning/
organizing
Problem
solving
Consulting
Delegating
14 Leadership behaviors
Influencing people
Building relationship
Motivating/inspiring
Recognizing
Rewarding
Networking
Conflict
Management/team
Building
Supporting
Developing
Givingseeking
information
Monitoring
Informing
Clarifying
Table 2-3 4 Influence Factors For Evaluating Managerial Practice
4 Influence factors
Technical
This factor includes the familiarity of project management tools
competence
used, quality of employee, on-job training, and experiences learnt
from previous successes or failures, which affect the performance of
subsequent projects undertaken
Enterprise
The organization structure of enterprise will affect the performance
organization of specific projects. Generally, the enterprise organization can be
presented as functional, functional matrix , project matrix, and
project team type of organization
Project
The properties include project typed, duration, amount of contracts,
properties
consignor, manpower and budget involved, and the relation to other
project that have be finished
Position level What kinds of resources can be used, what kind of people are
responsible for negotiation, and what commanding and dispatching
channels can be applied are all related to the position level of the
project manager of the company
Literature review
Project Stability
 In 2008, Swartz proposed an idea on evaluation project manager
performance. The contents of the paper indicate that project management’s
stability is also capable of reflexing project manager management skill.
 The stability of the project refers to how resistant to disruption (stable) or
sensitive to disruption (unstable) under the uncertainty of activities and
resources. If the project is managed well, the project should be stable and it
should reflex in terms of well scheduling management. The proposed model
consists of two distinct groups: the offset measurement and the deviation
measures.
Literature Review
Criteria Selection
 In this proposed model, project manager performance will be evaluated
with current project performance and the managerial practice by using
fuzzy decision making based approach to calculate and rank the
performance of the project manager.
 The criteria are selected for the best interpretation, the criteria can be shown
as below:
Table 2-4 Selected Criteria
Quantitative
Qualitative
Criterion
Performance
(Swartz, 2008)
How much desirable features does the project successfully
deliver
Benefit
Influencing people
(Chen and Lee,2007)
Motivating/inspiring, Recognizing, Rewarding
Benefit
Making decision
(Chen and Lee,2007)
Planning/ organizing, Problem solving, Consulting,
Delegating
Benefit
Building relationship
(Chen and Lee,2007)
Networking, Conflict, Management/team, Building,
Supporting, Developing
Benefit
Giving-Seeking
information
(Chen and Lee,2007)
Monitoring, Informing, Clarifying
Benefit
Resource offset
(Swartz, 2008)
How much time resource spend waiting to work or catching
up on work in terms of schedule activities (days)
Cost
Activity deviation
(Swartz, 2008)
Sum of day early or days late for all tasks
AD=Days late –Days early (days)
Cost
Cost performance
index (CPI)
(Swartz, 2008)
schedule performance
index (SPI)
(Swartz, 2008)
The purposes of determining/measuring the actual
cost efficiency of a project
CPI=BCWP/ACWP
The Schedule Performance Index is a measure of project
efficiency and progress.
SPI=BCWP/BCWS
Benefit
Benefit