Overview of HR Simulation Project

Human Resource Management is one of the most important areas where today’s managers are focusing to
gain advantage in this age of cut-throat competition. Despite unemployment looming large organizations
are witnessing significant workforce shortages due to an inadequate supply of workers as the skills
needed to perform the jobs are being added.

Today the role of HR Management is so important that it is taking the position of a strategic partner in
organizations. The ruthless nature of today’s competition has led organizations to focus on their main
assets which are their employees. Hence the process of selecting, hiring, training, appraising and
compensating employees should be in accordance with the organizational goal. It has become a great
necessity that the organizations measure the effectiveness of HR efforts. It has become crucial for
organizations to have better people in all positions if not the best. A proper planning of Human Resources
pave path to profitable future. The organizations have long realized that the investment in their Human
Resources gives the better pay off. For organizations to survive, it is important for their employees adapt
to changing times, they can develop skills that is being added to their jobs. “Where does it begin?” can be
a crucial question but the answer is easy, “from the planning phase itself”. It is the question of survival for
organizations to select the best people, give them the best of available trainings, and motivate them so
they can deliver to their caliber.

The simulation project identifies a managerial position in a real world organization. After a detail analysis
of the subject the project aims to develop a complete package from job analysis, to recruitment and
selection to appraisal mechanism.

The project basically deals with the implementation of the theoretical principles in a real world situation
with endeavors to make the process better than the existing one.

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Definition

The Human resource management includes the processes required to coordinate the human resources on a
project. Such processes include those needed to plan, obtain, orient, assign, and release staff over the life
of the project.

Introduction

Project manager must be sensitive to the unique needs of the project environment and as to how this
general knowledge is applied in a different way than in the operational environment of the ongoing
enterprise:

􀀁The temporary nature of projects means that personal and organizational relationships generally will
also be temporary and, quite often, new. Staff-related project management processes must address these
transient relationships.
􀀁Both the nature and number of people involved in a project change as the project moves through its life
cycle. For example initially there will be limited number of staff in the project and as we move along we
induct more staff into the project. Staff management processes must recognize and address these changing
needs.
􀀁 Human resource management activities are often split between project management
and other managers within the performing organization. The scope of responsibility of
the project manager may lie somewhere between:
o An extended responsibility, including the selection of sourcing organizations,
obtaining staff and performance assessment.
o A limited responsibility focused on coordination with the permanent roles outside
the project such as the functional manager, the resource deployment manager
and/or the people development manager .

The Project Human Resource Management processes

 Human Resource Planning – Identifying and documenting project roles, responsibilities, and
reporting relationships, as well as creating the staffing management plan.
 Acquire Project Team – Obtaining the human resources needed to complete the project.
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  Develop Project Team – Improving the competencies and interaction of team members to
enhance project performance.
 Manage Project Team – Tracking team member performance, providing feedback, resolving
issues, and coordinating changes to enhance project performance.

Project Human Resource Management Process Flow Diagram

Note: Not all process interactions and data flow among the processes are shown.

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Human Resource Planning

Contains:

• The number of staff required.

• Costing information and assumptions.

• When the staff are needed and for how long.

• Any special skills required over and above those that people in the category would

normally be expected to have, as well as the required level of proficiency and the relative importance of
these skills.

• Training requirements needed specifically for the project, for example in a new

technology.

• Office and materiel requirements

• Plans for team-building activities.(Motivation management)

The following column shows a sample portion of the Human resource plan for a project.

o Human resource category

o Number of staff

o Cost assumptions

o When needed

o Till what date the staff is needed

o Special skills, if any

o Special needs, if any

o Training needs, if any

o Office and material equipment

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The Human resource plan supports staff planning, staff acquisition, allocating resources to staff, and
supervising project specific training activities. A summary Human resource plan is created for the entire
project and managed by the project manager.

The formality with which the Human resource plan is created and documented is a reflection of the size
and complexity of the project. Typically, small projects do not require a formal plan. On the other hand,
large, multiyear, multilevel projects with many participants may require multiple formal plans. The HRM
plan is based on the project schedule.

The Project management schedule includes a summary of the effort by human resource

category (expressed in person hours, person days, etc.) that will be required to perform defined work
units, as well as the time frames during which the work units will be performed. For example, the Project
management schedule might indicate that 2000 hours of application programmer skills are needed
between 2 February and 31 December.

The Human resource plan uses the requirement for human resources to develop a plan for staff
acquisition. There is usually iteration between the development of the Project management schedule and
the Human resource plan as “reality” is applied during development of the Human resource plan during
the different phases of the project. For example, for a very large project, it may be known that it is
impossible to obtain the 200 programmers specified in the Project management schedule during a
particular time period. Therefore, the Project management schedule will need to be changed to reflect this.

The Human resource plan may be revised when changes in the Project management schedule for a project
organizational unit result in a change in staffing requirements. Also, the results of recruiting activities
could impact the Human resource plan

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Human Resource Planning: Inputs

1- Enterprise Environmental Factors

1-1 Organizational

Which organizations or departments will be involved in the project? What are the current working
arrangements among them? What formal and informal relationships exist among them?

1-2 Technical

What are the different disciplines and specialties that will be needed to complete this project? Are there
different types of software languages, engineering approaches, or kinds of equipment that will need to be
coordinated? Do the transitions from one life cycle phase to the next present any unique challenges?

1-3 Interpersonal

What types of formal and informal reporting relationships exist among people who are candidates for the
project team? What are the candidates’ job descriptions? What are their supervisor-subordinate
relationships? What are their supplier-customer relationships? What cultural or language differences will
affect working relationships among team members? What levels of trust and respect currently exist?

1-4 Logistical

How much distance separates the people and units that will be part of the project? Are people in different
buildings, time zones, or countries?

1-5 Political

What are the individual goals and agendas of the potential project stakeholders? Which groups and people
have informal power in areas important to the project? What informal alliances exist?

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2- Project Management Plan

• Activity Resource Requirements to determine the human resource needs for the project.

Validate the number of available resources used in the Project management schedule and adjust as
necessary.

Here is an example of validation:

 • The effort defined in the Project management schedule is 980 person days and the training
effort required is 20 person days. The total effort, therefore, is 980 + 20 = 1000 person days.

 •The utilization factor for the performing organization is 75% (or 0.75).

 • The adjusted effort is 1000 / 0.75 = 1333 person days.

 • The required elapsed time is 195 days (9 months).

 • The number of staff becomes 1333 / 195 = 7 (approximately).

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3- Organizational Process Assets

• Templates. include project organization charts, position descriptions, project performance appraisals,
and a standard conflict management approach.

• Checklists. include common project roles and responsibilities, typical competencies, training programs
to consider, team ground rules, safety considerations, compliance issues, and reward ideas.

Human Resource Planning: Tools and Techniques

1- Organization Charts and Position Descriptions

Roles and Responsibility Definition Formats

Various formats exist to document team member roles and responsibilities. Most of the formats fall into
one of three types: hierarchical, matrix, and text-oriented. Additionally, some project assignments are
listed in subsidiary project plans, such as the risk, quality, or communication plans. Whichever
combination of methods is used, the objective is to ensure that each work package has an unambiguous
owner and that all team members have a clear understanding of their roles and responsibilities.

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Hierarchical-type charts. The traditional organization chart structure can be used to show positions and
relationships in a graphic, top-down format. Work breakdown structures (WBS) that are primarily
designed to show how project deliverables are broken down into work packages become one way to show
high-level areas of responsibility.

Matrix-based charts. A responsibility assignment matrix (RAM) is used to illustrate the connections
between work that needs to be done and project team members. On larger projects, RAMs can be
developed at various levels.
For example, a high-level RAM can define what project team group or unit is responsible for each
component of the WBS, while lower-level RAMs are used within the group to designate roles,
responsibilities, and levels of authority for specific activities. The matrix format, sometimes called a table,
allows a person to see all activities associated with one person or to see all
people associated with one activity. The matrix shown in Figure 9-5 is a type of RAM called a RACI
chart because the names of roles being documented are Responsible, Accountable, Consult, and Inform.
The sample chart shows the work to be done in the left column as activities, but RAMs can show
responsibilities at various levels of detail. The people can be shown as persons or groups.

Responsibility Assignment Matrix (RAM) Using a RACI Format

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Text-oriented formats. Team member responsibilities that require detailed descriptions can be specified
in text-oriented formats. Usually in outline form, the documents provide information such as
responsibilities, authority, competencies, and qualifications. The documents are known by various names,
including position descriptions and role-responsibility-authority forms. These descriptions and forms
make excellent templates for future projects, especially when the information is updated throughout the
current project by applying lessons learned.

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.2 Networking
Informal interaction with others in an organization or industry is a constructive way to understand
political and interpersonal factors that will impact the effectiveness of various staffing management
options. Human resources networking activities include proactive correspondence, luncheon meetings,
informal conversations, and trade conferences. While concentrated networking can be a useful technique
at the beginning of a project, carrying out networking activities on a regular basis before a project begins
is also effective.

.3 Organizational Theory
Organizational theory provides information regarding the ways that people, teams, and organizational
units behave. Applying proven principles shortens the amount of time needed to create the Human
Resource Planning outputs and improves the likelihood that the planning will be effective.

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Human Resource Planning: outputs

1- Roles and Responsibilities

• Role.

The label describing the portion of a project for which a person is accountable. Examples of project roles
are civil engineer, court liaison, business analyst, and testing coordinator. Role clarity concerning
authority, responsibilities, and boundaries is essential for project success.

• Authority.

The right to apply project resources, make decisions, and sign approvals. Examples of decisions that need
clear authority include the selection of a method for completing an activity, quality acceptance, and how
to respond to project variances. Team members operate best when their

individual levels of authority matches their individual responsibilities.

• Responsibility.

The work that a project team member is expected to perform in order to complete the project’s activities.

• Competency.

The skill and capacity required to complete project activities. If project team members do not possess
required competencies, performance can be jeopardized. When such mismatches are identified, proactive
responses such as training, hiring, schedule changes, or scope changes are initiated .

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2- Project Organization Charts

A project organization chart is a graphic display of project team members and their reporting
relationships.

3- Staffing Management Plan

The staffing management plan, a subset of the project management plan , describes when and how human
resource requirements will be met.

3-1 Staff acquisition

A number of questions arise when planning the acquisition of project team members. For example, will
the human resources come from within the organization or from external, contracted sources? Will team
members need to work in a central location or can they work from distant locations? What are the costs
associated with each level of expertise needed
for the project? How much assistance can the organization’s human resource department provide to the
project management team?

3-2 Timetable

The staffing management plan describes necessary time frames for project team members, either
individually or collectively, as well as when acquisition activities such as recruiting should start. One tool
for charting human resources is a resource histogram.

Illustrative Resource Histogram

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This bar chart illustrates the number of hours that a person, department, or entire project team will be
needed each week or month over the course of the project. The chart can include a horizontal line that
represents the maximum number of hours available from a particular resource. Bars that extend beyond
the maximum available hours identify the need for a resource leveling strategy, such as adding more
resources or extending the length of the schedule.

3-3 Release criteria

Determining the method and timing of releasing team members benefits both the project and team
members. When team members are released from a project at the optimum time, payments made for
people who are finished with their responsibilities can be eliminated and the costs reduced. Morale is
improved when smooth transitions to upcoming projects
are already planned.

3-4 Training needs

If the team members to be assigned are not expected to have the required competencies, a training plan
can be developed as part of the project. The plan can also include ways to help team members obtain
certifications that would benefit the project.

3-5 Recognition and rewards

Clear criteria for rewards and a planned system for their use will promote and reinforce desired behaviors.
To be effective, recognition and rewards should be based on activities and performance under a person’s
control. For example, a team member who is to be rewarded for
meeting cost objectives should have an appropriate level of control over decisions that affect expenses.
Creating a plan with established times for rewards ensures that recognition takes place and is not
forgotten. Recognition and rewards are awarded as part of the Develop Project Team process

3-6 Compliance

The staffing management plan can include strategies for complying with applicable government
regulations, union contracts, and other established human resource policies.

3-7 Safety

Policies and procedures that protect team members from safety hazards can be included in the staffing
management plan as well as the risk register.

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Acquire Project Team

This function includes processes to:

Identify potential sources (external/department in the organization) of project staff.
Define skill and activity descriptions that can be used by recruiters and resource
managers to obtain staff from appropriate sourcing organizations.
Select staff for the project.

Finding the:
 right people,
 with appropriate skills,
 available when needed,
 for the right duration,
 within planned costs

Staff acquisition processes are performed throughout the project, not just at project initiation.
New phases of the project may require that additional staff or staff with different skills be found.

Determine and activate sourcing

Understand how the responsibilities for in this area are divided between the project manager
and any other manager(s) and then either execute, or contribute to the execution of, the
following steps. Review the Human resource plan to understand the staffing requirements.
Focus on information such as human resource categories, numbers of staff needed, when
needed, special skills, and cost.
Review the Agreement to understand what staff the client has agreed to provide and to
determine if there are any constraints in the Agreement related to staffing.
Examples of constraints include:
The sponsor will not pay travel and living expenses.
Only specific staff providers may be used.
Determine if any internal arrangements have been made between organization to
supply staff for the project, and then review those Agreements .
Review the project documentation describing procedures for recruiting and staffing to
understand the policies and procedures that apply to the project.
Depending on the number of staff needed and their projected availability, the use of multiple
sources may be required.

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Acquire Project Team: Tools and Techniques
1- Pre-Assignment
In some cases, project team members are known in advance; that is, they are preassigned.
This situation can occur if the project is the result of specific people being promised as part of a
competitive proposal, if the project is dependent on the expertise of particular persons, or if some staff
assignments are defined within the project charter.

2- Negotiation
Staff assignments are negotiated on many projects. For example, the project management team may need
to negotiate with:
Functional managers to ensure that the project receives appropriately competent staff in the required
time frame, and that project team members will be able to work on the project until their responsibilities
are completed
Other project management teams within the performing organization to appropriately assign scarce or
specialized resources.

3- Acquisition
When the performing organization lacks the in-house staff needed to complete the project, the required
services can be acquired from outside sources . This can involve hiring individual consultants or
subcontracting work to another organization.

4- Virtual Teams
The use of virtual teams creates new possibilities when acquiring project team
members. Virtual teams can be defined as groups of people with a shared goal, who
fulfill their roles with little or no time spent meeting face to face. The availability of
electronic communication, such as e-mail and video conferencing, has made such
teams feasible. The virtual team format makes it possible to:
Form teams of people from the same company who live in widespread geographic areas
Add special expertise to a project team, even though the expert is not in the same geographic area
Incorporate employees who work from home offices
Form teams of people who work different shifts or hours
Include people with mobility handicaps
Move forward with projects that would have been ignored due to travel expenses.
Communications Planning becomes increasingly important in a virtual team environment. Additional
time may be needed to set clear expectations, develop protocols for confronting conflict, include people in
decision-making, and share credit in successes.

Acquire Project Team: outputs

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1- Project Staff Assignments

The project is staffed when appropriate people have been assigned to work on it.

Documentation can include a project team directory, memos to team members, and names inserted into
other parts of the project management plan, such as project organization charts and schedules.

2- Resource Availability

Resource availability documents the time periods each project team member can work on the project.
Creating a reliable final schedule depends on having a good understanding of each person’s schedule
conflicts, including vacation time and commitments to other projects.

3- Staffing Management Plan (Updates)

As specific people fill the project roles and responsibilities, changes in the staffing management plan may
be needed because people seldom fit the exact staffing requirements that are planned. Other reasons for
changing the staffing management plan include promotions, retirements, illnesses, performance issues,
and changing workloads.

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Develop Project Team

This includes processes to:

 Set objectives for the team.

 Enhance the individual and team performance.

 Resource Availability

1- Set objectives for the team

Objectives may cover items such as:

 • Client satisfaction

 • Quality

 • Achievement of milestones

 • Productivity and efficiency

 • Teamwork

 Ensure that the objectives measurable and that some of them are planned to be achieved during
the course of the project.

 Discuss the team objectives and the individual Commitments with the functional managers
concerned.

 Each individual should have a set of objectives that , when achieved, will make a balanced

 contribution to both to the project objectives and to his/her functional manager’s objectives;

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2- Enhance the individual and team performance

1- Develop team charter

Team charters are intended to set expectations for the success of the project and to encourage an
environment for high-performance teams. High-performance teams possess a number of definable
characteristics.

• Sense of purpose - Team members have a common purpose and set ambitious goals and
milestones to accomplish their purpose.

• Trust and mutual respect - Team members trust, respect and care about each other.

They have effective relationships with each other.

• Effective working procedures - High quality work is completed on time using procedures that
support risk taking, innovation and challenging the old way.

• Building on differences - Synergy comes from the different skills, experience and strengths of the
team members. Different points of view are the source for creating balanced solutions and for
learning from each other.

• Flexibility and adaptability - The team seeks and perceive changes as a desirable opportunity to
rethink, learn and improve the team efficiency.

2- Develop team management

This process may be used at several levels in the project organization. Each person managing a
project organizational unit has responsibility for a project team and therefore, must develop team
management. Team management concepts and skills are commonly addressed in the body of
literature written about general management of the operations of an ongoing enterprise. These
same concepts, however, are applicable to the project manager in managing the project team and
are presented in this process as a set of steps for establishing and maintaining effective team
management.

3- Resource Availability
Resource availability information identifies times that project team members can participate in
team development activities.

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Develop Project Team: Tools and Techniques

1- Training
Training includes all activities designed to enhance the competencies of the project
team members. Training can be formal or informal. Examples of training methods
include classroom, online, computer-based, on-the-job training from another
project team member, mentoring, and coaching.
If project team members lack necessary management or technical skills, such
skills can be developed as part of the project work. Scheduled training takes place
as stated in the staffing management plan. Unplanned training takes place as a
result of observation, conversation, and project performance appraisals conducted
during the controlling process of managing the project team.

Types of Training

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2- Co-Location
Co-location involves placing many or all of the most active project team members in the same physical
location to enhance their ability to perform as a team. Co-location can be temporary, such as at
strategically important times during the project, or for the entire project. Co-location strategy can include
a meeting room, sometimes called a war room, with electronic communication devices, places to post
schedules, and other conveniences that enhance communication and a sense of community. While co-
location is considered good strategy, the use of virtual teams will reduce the frequency that team members
are located together.

3- Recognition and Rewards

Part of the team development process involves recognizing and rewarding desirable behavior. The
original plans concerning ways to reward people are developed during Human Resource Planning. Award
decisions are made, formally or informally, during the process of managing the project team through
performance appraisals.
Only desirable behavior should be rewarded. For example, the willingness to work overtime to meet an
aggressive schedule objective should be rewarded or recognized; needing to work overtime as the result
of poor planning should not be rewarded. Win-lose (zero sum) rewards that only a limited number of
project team members can achieve, such as team member of the month, can hurt team cohesiveness.
Rewarding win-win behavior that everyone can achieve, such as turning in progress reports on time, tends
to increase support among team
members.
Recognition and rewards should consider cultural differences. For example, developing appropriate team
rewards in a culture that encourages individualism can be difficult.

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Develop Project Team: outputs

Team Performance Assessment

As development efforts such as training, team building, and co-location are implemented, the
project management team makes informal or formal assessments of the project team’s
effectiveness. Effective team development strategies and activities are expected to increase the
team’s performance, which increases the likelihood of meeting project objectives. The evaluation
of a team’s effectiveness can include indicators such as:
• Improvements in skills that allow a person to perform assigned activities more effectively
• Improvements in competencies and sentiments that help the team perform better as a group
• Reduced staff turnover rate.

Manage Project Team: Inputs

1- Team Performance Assessment

The project management team makes ongoing formal or informal assessments of the project
team’s performance. By continually assessing the project team’s performance, actions can be
taken to resolve issues, modify communication, address conflict, and improve team interaction.

2- Work Performance Information

 As part of the Direct and Manage Project Execution process (Section 4.4), the project
management team directly observes team member performance as it occurs.

 Observations related to areas such as a team member’s meeting participation, follow-up on action
items, and communication clarity are considered when managing the project team.

3- Performance Reports

Performance reports provide documentation about performance against the project management
plan. Examples of performance areas that can help with project team management include results
from schedule control, cost control, quality control, scope verification, and procurement audits.
The information from performance reports and related forecasts assists in determining future
human resource requirements, recognition and rewards, and updates to the staffing management
plan.

Manage Project Team: Tools and Techniques

1- Observation and Conversation

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Observation and conversation are used to stay in touch with the work and attitudes of project team
members. The project management team monitors indicators such as progress toward project deliverables,
accomplishments that are a source of pride for team members, and interpersonal issues.

2- Project Performance Appraisals

The need for formal or informal project performance appraisals depends on the length of the project,
complexity of the project, organizational policy, labor contract requirements, and the amount and quality
of regular communication.
Project team members receive feedback from the people who supervise their project work. Evaluation
information also can be gathered from people who interact with project team members by using 360-
degree feedback principles. The term “360-degree” means that feedback regarding performance is
provided to the person being evaluated from many sources, including superiors, peers, and subordinates.
Objectives for conducting performance appraisals during the course of a project can include
reclarification of roles and responsibilities, structured time to ensure team members receive positive
feedback in what might otherwise be a hectic environment, discovery of unknown or unresolved issues,
development of individual training plans, and the establishment of specific goals for future time periods.

3- Conflict Management
Successful conflict management results in greater productivity and positive working relationships.
Sources of conflict include scarce resources, scheduling priorities, and personal work styles. Team ground
rules, group norms, and solid project management practices, like communication planning and role
definition, reduce the amount of conflict. When managed properly, differences of opinion are healthy, and
can lead to increased creativity and better decision-making. When the differences become a negative
factor, project team members are initially responsible for resolving their own conflicts. If conflict
escalates, the project manager should help facilitate a satisfactory resolution. Conflict should be addressed
early and usually in private, using a direct, collaborative approach. If disruptive conflict continues,
increasingly formal procedures will need to be used, including the possible use of disciplinary actions.

4- Issue Log
As issues arise in the course of managing the project team, a written log can document persons
responsible for resolving specific issues by a target date. The log helps the project team monitor issues
until closure. Issue resolution addresses obstacles that can block the team from achieving its goals. These
obstacles can include factors such as differences of opinion, situations to be investigated, and emerging or
unanticipated responsibilities that need to be assigned to someone on the project team.
Manage Project Team: outputs

1- Requested Changes
Staffing changes, whether by choice or by uncontrollable events, can affect the rest of the project
plan. When staffing issues are going to disrupt the project plan, such as causing the schedule to be
extended or the budget to be exceeded, a change request can be processed through the Integrated
Change Control process.

2- Recommended Corrective Actions

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 Corrective action for human resource management includes items such as staffing changes, additional
training, and disciplinary actions. Staffing changes can include moving people to different
assignments, outsourcing some work, and replacing team members who leave. The project
management team also determines how and when to give out recognition and rewards based on the
team’s performance.

3- Recommended Preventive Actions

When the project management team identifies potential or emerging human resource issues,
preventive action can be developed to reduce the probability and/or impact of problems before they
occur. Preventive actions can include cross-training in order to reduce problems during project team
member absences, additional role clarification to ensure all responsibilities are fulfilled, and added
personal time in anticipation of extra work that may be needed in the near future to meet project
deadlines.

References

1) A guide to the project management body of knowledge: PMBOK® guide. – 3rd ed. Published
by: Project Management Institute, Inc.

2) Tom DeMarco and Timothy Lister. Peopleware: Productive Projects and Teams. New York:
Dorset House Publishing Co., 1987

3) Author’s experience in multiple countries and IT MNCs

4) FEATURED PAPER Human Resource Management in a Project By Sujit Mishra Published in

PM World Today - July 2007 (Vol. IX, Issue VII)

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