UNSATISFIED EMPLOYEES: Management of the Project-Oriented Organisation

Introduction

Motivation and engagement help improve results, for instance, innovation. My varied experiences have made me reflect about the potential constructive interaction between general management and project management. I work as a consultant and senior project manager and have experience as a production manager. As a production manager, I had direct managerial responsibility, and as a project manager, I typically act within a matrix organization without direct managerial authority.

I assess that there have been three coinciding themes in my work that are also important for the professional project manager to keep in mind when managing the project group and other stakeholders:

• Innovation, where we develop solutions to daily challenges, make the strategy operational, or work with something new in a project context. J. Tidd & J. Bessant (2014, p. 61) initially write about the innovative organization: “There is no single universal ideal-type of leadership or organization which supports innovation. However, by studying case studies of innovative organizations and comparing these systematically with less-innovative organizations, we can begin to identify consistent patterns of good leadership and organization. Larger-scale academic research confirms that these factors tend to contribute to superior performance.”.

• Management of change in all its variations as a direct leader and management in projects through motivation and engagement. This is for me an interesting field of tension with possibilities for development. Lundin et al. (2015, p. 37) write: “There is an ambiguity in this setting about the role of the projects and their relation to more permanent activities within a company. Project members are often unclear about their own role when it comes to the relation between the project and the permanent activity.”.

• Development of competencies and motivation of employees. Andersen (2008, p. 283) writes under “Management by projects is based on certain values”, that “Continual organizational development is vital to ensure a company’s continued existence. Projects represent a major part of this effort by promoting organisational learning based on experiences gained from project work.”.

Andersen (2008, p. 295) writes about the project-oriented work: “It is a process that appeals to modern, highly qualified people.”. Thanks for that!

Research Question

Companies often experience through employee satisfaction surveys that production employees rate low for Engagement and Team Leadership. Why is it important to work with the above themes? Can working with innovation, change management, and competency building improve satisfaction and results? Tidd & Bessant (2014, p. 9) express the importance for the Company in all its simplicity: “… innovation is about survival or growth – if we don’t change then competitive forces may threaten our future.”. Engagement is important, as engaged employees create innovation and take ownership concerning achieving results. Erling S. Andersen (2008, p. 261) talks about Empowerment to achieve engagement and results: “Much can be gained by empowering people: a stronger sense of job responsibility; an increase in the number of proposals and suggestions; more stamina in tackling problems and setbacks; higher job satisfaction rates; and a sense of organization identification.".

Making a difference and being ready for change increases the focus on competency development and thereby creates results for the Company, Erling S. Andersen (2008, p.240): “Employees are inspired to achieve excellent results. The transformational leader believes his employees have a strong capacity to adapt, learn and grow, but that they need help and encouragement to achieve their full potential.”.

Improved Team Leadership is typically a wish. It would be aimed at leaders with managerial responsibility, but also project managers in a matrix organization, Erling S. Andersen (2008, p.264):

“Project managers have a duty to promote an optimal project climate and optimal state of mind among team members during the project’s life cycle. Project work can be stressful. A project manager must spread enthusiasm and reduce frustration. The prevailing project climate and emotional response to work both affects thinking and behavior. They also have an effect on motivational factors.”

This article aims to answer the question:

How can working in a project-oriented organisation affect the Company's employee satisfaction?

I get input to answer the main question by answering these three sub-questions:

• How can working with innovation be rewarding?
• How can the project manager in his role as a change leader contribute?
• How can working with competence building and motivation be positive?

The perspective is that the Company increases its focus on changing the project-oriented organization, so it consciously supports the strategy and contributes to improving employee satisfaction; and thereby optimize the gains.

Theoretical Selection

In my research question, I chose to work with three themes that have been recurring in my work as a production manager and project manager. I have selected the following literature to illuminate my three themes:

Innovation: Joe Tidd & John Bessant (2014) contribute in their book Strategic Innovation Management to enhance the understanding of the importance of innovation as a necessary tool for companies' growth and survival, Joe Tidd & John Bessant (2014, p. 76): “Leadership and organization of innovation are much more than a set of processes, tools and techniques, and the successful practice of innovation demands the interaction and integration of three different levels of management: individual, collective and climate.”.

Management of change: John P. Kotter (2007) gives us in the article Leading Change – Why transformation Efforts Fail a summary of his 8-step model regarding changes, what actions are necessary and what pitfalls to be aware of, John P. Kotter (2007, p. 4) expresses: “When the urgency rate is not pumped up enough, the transformation process cannot ?succeed, and the long-term future of the organization is put in jeopardy.”.

Combined with Erling S. Andersen (2008) it will provide an understanding of the importance of change management to improve employee satisfaction in the Company. Erling S. Andersen (2008, p.245) writes about the leader's role: “Research shows that groups perform better when they know the leader expects and trusts them to perform optimally.”.

Competence building and motivation: There is pressure to deliver within the traditional project triangle, but also that gain realization happens as promised. This is also the project manager's responsibility in collaboration with the recipient of the project results. As a project manager, one is interested in competence building among project participants and oneself. It must be the project manager's motivation to expand his competencies and the competencies in the project-supported organization, as a necessity and despite challenges, D. Chronéer & F. Backlund (2015, p. 63): “Although it is mostly through projects that knowledge can be generated in organizations; yet knowledge created within a project is not always diffused, and lessons learned may not be shared across projects.”.

I draw from multiple articles to clarify the subject of knowledge sharing, including D. Chronéer & F. Backlund (2015): A holistic view on learning in project-based organizations.

Innovation

Employees request in satisfaction surveys, that “Management should listen to the employees” and “Possibility of more teamwork”. Erling S. Andersen (2008, p. 224) mentions innovation in connection with the learning organization: “An often citied study found higher levels of innovation in organizations that promote learning and development among employees (and let employees take part in decision-making).”.

There is a connection between innovation and employee influence. Joe Tidd & John Bessant (2014, p. 134) point out the importance of “Mobilizing employee ideas and knowledge around incremental product and especially process innovation” and “Bringing the “voice of the customer” into all areas of the organization and using that to focus and draw out relevant ideas and knowledge.”. My assessment is that working with innovation in projects across stakeholders will contribute positively to Employee Engagement. The project participants should be part of the innovative process and not only receivers of a delivery. Transformational leadership is according to J. Tidd & J. Bessant (2014, p. 64) of importance in connection with innovation: "This strongly suggests that certain qualities of transformational leadership may be most appropriate under conditions of high complexity, uncertainty or novelty, whereas a transactional style has a positive effect in an administrative context, but a negative effect in a research context.". Transformational leadership is therefore suited for projects, which by definition involve something new.

Management of Change

Employees in satisfaction surveys express that they experience "Too many plans and change of direction". John P. Kotter (2006, p. 3) has developed an 8-step model for change, where all steps must be followed to be successful: "The most general lesson to be learned from the more successful cases is that the change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result.". According to John P. Kotter (1999, p. 29) this model can be used for changes of any size.

Transformational leadership involves, among other things, that "A leader encourages employees to reach the goals of the organization..." (Erling S. Andersen, 2008, p. 240), which implicitly provides more information about the daily business and changes. Furthermore, leaders will also show more visibility, Erling S. Andersen (2008, p. 241): "The leader appears and acts in ways that underpin the positive impression. He emphasizes the importance of teamwork, of values and morals.".

Competence Building and Motivation

Employees in satisfaction surveys also express a wish for "Feedback and recognition" and "More training and education". Feedback and recognition offer the opportunity to reflect and become more competent. Recognition is considered motivating. Competence building and learning can take place within projects according to D. Chronéer & F. Backlund (2015, p. 63): “Learning is also achieved in projects, and according to Kontour (2000), project learning can be divided into: (1) intraproject learning that occurs throughout a project-supporting delivery of a successful project, and (2) inter-project learning – the combining and sharing of lessons learned across projects.”. According to Erling S. Andersen, learning in a project setting makes good sense (2008, p. 225): "To sustain organizational learning as an evolutionary process, that is, steadily improve, employees must be confronted with a variety of situations. Variety is essential to achieve learning.".

Competence building and motivation are also elements of transformational leadership. Erling S. Andersen (2008, p. 240) defines: "The leader takes account of each individual, focuses on their strengths, and offers personal support, encouragement and advice" and "He speaks in an optimistic and enthusiastic tone, and expresses confidence in the team's ability to succeed.".

Team Leadership

Team Leadership is often identified as an area with potential for improvement for blue collars and project managers. My perspective is that of the project manager, and his possibilities within the confines of the specific projects. Team Leadership is measured by the employees' wish for:

• My manager treats me with respect.
• Within my department, we work well together as a team.
• My manager encourages my development at work.
• My manager inspires me to do my best work.

Team Leadership or transformational leadership is exactly working with innovation, management of change, competence building and motivation (Erling S. Andersen, 2008, p. 240-246), also expressed by "Transformational leadership has an even stronger effect on employees’ job satisfaction than on performance." (Erling S. Andersen, 2008, p. 242). Employees also call for "More skilled leaders and managers" and "More cultural understanding from our foreign managers". One might experience too much transactional leadership, which contrasts with transformational leadership (Erling S. Andersen, 2008, p. 240):

"A transaction is a give-and-take or reciprocal process. A leader encourages employees to reach the goals of the organization; a transaction leader ensures himself of their commitment by promising rewards for success or punishment for failure. The leader rewards workers in exchange for commitment. Unlike transformational leadership, transactional leadership capitalizes on workers’ self-interest.".

Working with transformational leadership will presumably affect the assessment of Team Leadership in a more satisfactory direction.

Conclusion and Perspectivation

The exploration of managing project-oriented organizations and enhancing employee satisfaction has underscored the intertwined relationship between innovation, change management, and competency building with motivational techniques. This article looked to address the overarching question of how work within a project-oriented framework can influence company-wide employee satisfaction. We delved into this inquiry through the lens of three pivotal sub-questions focusing on innovation, the project manager’s role in change leadership, and the impacts of competence building and motivation.

Innovation as a Rewarding Endeavor

Addressing the first sub-question, it is clear that innovation stands as a rewarding endeavor within project-oriented organizations due to its potential for employee engagement and the creation of a dynamic, adaptable business environment. By encouraging and implementing innovative practices, companies can foster a culture that values creativity, problem-solving, and continuous improvement. This culture not only stimulates employee satisfaction by involving them in decision-making processes and recognizing their contributions but also enhances the company's capabilities to respond to market changes and opportunities effectively. Thus, innovation is not merely an approach to product or service development; it is a strategic tool for employee empowerment and organizational growth.

The Project Manager’s Role in Change Leadership

The second sub-question addresses the critical role of project managers as change leaders. Project managers, positioned within matrix organizations, often navigate complex networks of authority and responsibility. Their success in driving project outcomes hinges on their ability to lead by influence rather than direct authority. As change leaders, project managers can significantly contribute to employee satisfaction by effectively communicating the vision, rallying the team around shared goals, and fostering an environment of trust and collaboration. Through transformational leadership practices, project managers can inspire and motivate their teams, thereby enhancing engagement and satisfaction during periods of change.

Competence Building and Positive Motivation

The third sub-question delves into the impact of competence building and positive motivation on employee satisfaction. Investing in the development of employees' skills and competencies is a testament to an organization's commitment to its workforce. This commitment, when recognized by employees, translates into higher job satisfaction levels, greater innovation, and improved project outcomes. Moreover, competence building, when coupled with motivational strategies that recognize achievement and foster a supportive work environment, creates a powerful engine for organizational and individual growth. Consequently, a focus on continuous learning and positive reinforcement can significantly elevate employee satisfaction and performance.

Perspectivation

In conclusion, navigating the intricacies of project-oriented organizations requires a balanced approach that recognizes the critical interplay between managing change, fostering innovation, and building competencies. This article highlights that the synchronization of these elements can markedly influence employee satisfaction and, by extension, organizational success. As companies continue to evolve in an ever-changing business landscape, the ability to adapt and thrive within project-oriented structures will increasingly depend on their capability to harness the potential of their human capital through effective leadership, innovative practices, and a commitment to development and motivation. In essence, the journey towards enhancing employee satisfaction within project-oriented organizations is one that causes a culture of continuous improvement, open communication, and shared vision, underpinned by a steadfast commitment to developing the competencies and motivation of its people.

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Literature used in this article:

Andersen, E. S. (2008): Rethinking Project Management – An Organisational Perspective. Pearson Education, London (345 pages).

Chronéer, D., Backlund, F., (2015). A holistic view on learning in project-based organizations. Proj. Manag. J. 46, 61–74. (15 pages).

Kotter, John P. (2007). Leading Change: Why Transformation Efforts Fail. Harvard Business Review, March-April 1995, p. 59 (11 pages).

Kotter, John P. (1999): Leading Change. Peter Asschenfeldt's new Publishing company a/s, Copenhagen (231 pages).

Lundin, R. A., Arvidsson, N., Brady, T., Ekstedt, E., Midler, C., & Sydow, J. (2015). Managing and Working in Project Society - Institutional Challenges of Temporary Organizations. Cambridge University Press (Chapter 2 - Projectification trends and organizational archetypes pp. 20-79). (59 pages).

Tidd, Joe & John Bessant (2014): Strategic Innovation Management. John Wiley & Sons Ltd, Chichester (418 pages).