CHAPTER 2
This chapter identifies previous literature on the subject of project leaders attributes to under
performances projects provides a brief discussion of past findings. The cause of project
leaders as found in previous studies are discussed, and examples of audit reports that analyze
the problem of cost overruns in past studies are provided.
2.0 LITERATURE REVIEW
In this step, a comprehensive literature review of project leader attributes that influence poor
performance of PWD project and effective leadership skills is conducted. Literature on
leadership skills are divided into four parts, including: the concept of project leadership;
literature directly related to leadership skills; organizational performance; and leadership
characteristics, traits and behavior.
2.1 Studies on cause of delay
Mansfield identified major factor that caused delays and cost overruns in Nigeria. A
questionnaire survey was carried out with contractors, consultants and client organization in
Nigeria. They presented that the causes of delay and cost overruns in Nigeria construction
projects were attributed to finance and oayment arrangement, low decision making, shortages
of materials, lack of communication between projects leaders among team members and proce
fluctuations.
Assaf et al. identified 56 main causes of delay large building construction projects and their
relative importance. Based on the contractors surveyed the most important delay factors were
: preparation and approval of shop drawing by project leaders, lack of planning skill and low
on creative thinking, delay’s in contractor’s progress and design changes. From the view of
the architects and engineers the cash problem during construction, the relationship between
team members and the slow decision making process of project leaders were the main cause
of delay. However, the owners agreed that the design errors, labor shortages and inadequate
skill of project leader and project team were important delay factor.
Ogunlana and Promkuntong conducted a study on construction delay in Thailand. They found
that the problems faced by construction industry in developing economies like Thailand could
be :-
a) Shortages or inadequacies in industry infrastructure (mainly supplies of resources)
b) Project leader incompetence such as lack of communication skill, low integrity and low
on planning.
They recommended that htere should be concerted effort by economy leadrs and construction
industry associations to provide the necessary infrasturcture for efficient project
management.
Chan and Kumaraswamy conducted a survey to determine and evualte the relative
importance of the significant factors causing delays in Hong kong construction projects. The
anlayzed and ranked main reason for delay and classified teh into two groups:
a) The roles of project leaders in the local industries
b) The type of projects.
Results indicated that five major that program leaders attributes were: poor site
management,unforseen ground conditions,low speed of decision making involving all projetc
teams, lack of communication and interpersonal skill.
Odeyinka and Yusif have addressed the cause of delay in building projects in Nigeria. They
classified the cause of delay as project participants factors. Slow decision making,
management problem, planning and scheduling problems, inadequate site inpsection, low
intergrity, low negotation skills and cash flow problem.
Al-Momani carried out a quantitative analysis on construction delay in Jordan. The results of
his study indicated that the main cause of delay were related to low motivation of project
leaders,user changes and designer. Similarly, Odeh and Battaineh also conducted a survey
aimed at identifying the most important causes of delays in construction projetcs with
traditional type of contrast from the viewpoint of construction contractors and project leaders.
Results of the survey indicated that contractors and project leaders agreed tha owner
inteference, inadequate ecperience,slow decision making,improper planning were among the
top ten most important factors.
2.2 Audit
These audits include input from various ministries. Although different ministries, basically
PWD is also involved in this project implemented. Therefore, the data and input from this
audit is needed to find the cause weakness especially wrong from the leadership factors.
2.2.1 Ministry Of Rural and regional - Auditor General's Report 2011
Ministry of Rural and Regional Development (MRRD) to implement the provisions of the
approved 175 projects with a total contract value of the original RM1.727 billion. Of the 175
projects, a total of 146 projects valued at RM1.104 billion undertaken by the Public Works
Department Sarawak (JKRS) while a total of 29 projects valued at RM622.84 million was
made by the Sarawak Department of Irrigation and Drainage (JPSS). Actual expenditure
projects at 31 December 2011 amounted to RM1.024 billion. Audit carried out as a whole
project to build and upgrade rural roads in the State is less than satisfactory.
Weaknesses found as follows:
a) 101 projects valued at RM437.57 million were completed, 38 projects (37.6%) worth
RM178.94 million has experienced delays ranging from 15 to 242 days from the original
schedule.
b) A total of 13 projects (17.6%) worth RM229.27 million from 74 projects ongoing under
performance are due to late project schedule more than 20%.
c) Road construction is not in accordance with contract specifications.
d) Customer feedback on the quality of road construction, road safety and comfort are low.
e) Lack of leadership role such as inconsistency on decision making, low communication skill
and lack of on planning.
2.2.2 Ministry of works - Auditor General's Report 2011
Sultan Yahya Petra Bridge, Kelantan
Implementing agency for this project is the Public Works Department [Link]
I.S Consortium Sdn. Limited. - RIS Capital Sdn. Limited. was elected through direct
negotiations to implement the project within 30 months from June 18, 2007 to December 17,
2009 with the original cost of RM143 million. However, the project was assigned to the
Multiple Prestige Sdn. Limited. in March 2010, for failing to complete the remaining
construction is completed after obtaining the approval of the PWD. Until December 31, 2011,
the progress of work at the site was 76.5%. My audit found that overall construction of this
project is not satisfactory because there are some weaknesses in the planning and execution of
construction that can affect objectives.
Weaknesses noted are as follows:
a) Failure to complete the work within the specified period in which 4 Certificate of Delay
and Extension of Time for 891 days, up to August 30, 2012 were approved.
b) Lack of leaders interpersonal skills. These skills include providing direction,
communicating, assisting with problem solving, and dealing effectively with people without
having authority.
c) The current contract value is expected to increase to RM177.76 million, an increase of
RM34.76 million (24.3%) compared to the original contract worth RM143 million. The
increase in contract value also takes into account the Directive Variation amounting RM20.61
million which has not been approved.
d) Problems pile system design takes up to 2 years to complete has been the cause of delay in
completion of the project and increase costs.
e) Delays in building temporary bridges causing the river works can not be carried out on
schedule.
f) Appointment of an inexperienced contractor.
2.3 Leadership
The old image of a dictating boss with a non-negotiable goal of a project whipping and
rounding up his team and charging off to the destination is hardly consistent with modern
management thinking. The concept of the management of an organization or enterprise has
steadily evolved over the last few decades. The different decades, according to Dilenschneider
may be characterized as shown in Table 1.
‘administrative command’ to ‘team leadership’, a change driven by an enlightened work force
and a need to be ferociously competitive. Leaders create and need followers. Therefore they
need to understand people, his or her followers. Douglas McGregor has examined theories on
behaviour of individuals at work based on social science research, and he has formulated two
models which he calls Theory X and Theory Y. Theory X is the assumption that:
Average human being has an inherent dislike of work and will avoid it if he can.
Most people must be coerced, controlled and threatened if the organization is to
achieve its objectives.
The average human avoids responsibility, prefers to be directed, lacks ambition and
values security most of all.
Theory Y is the assumption that
The expenditure of physical and mental effort in work is as natural as rest or play.
People will exercise self-direction and self-control in the service of objectives to
which they are committed.
Given the right conditions, the average worker can learn to accept and to seek
responsibility.
The capacity for creativity in solving organizational problems is distributed widely in
the population.
The intellectual potential of the average person is only partially utilised.
Commitment to objectives is a function of rewards associated with their achievement. It can
be seen that these two theories are two separate attitudes. The central principle of Theory X is
direction and control through a centralised system of organisation and the exercise of autocrat
or authority, whilst Theory Y is about the integration of individual and organisational goals.
In the modern business world leadership works better in Y theory.
Although the above-stated theories are dated now, the assumptions of them, however, lie
behind most organizational principles today. Application of team leadership in today’s
organisations will need leaders who understand the organizational principles and develop and
exert the effective leadership to influence and change those principles and effectively
motivate people to achieve the organizational objectives and coherently accomplish
individuals’ goals.
2.3.1 Definition of Leadership
Interestingly there are many studies and publications about leadership in recent years, but
there is no common definition of leadership yet. Many authors have attempted to describe
leadership within the limits of their understanding and emphasis. The following definitions of
leadership are found from literature which may be more representative for leadership:
Leadership is ‘Development of a clear and complete system of expectations in order to
identify, evoke and use the strengths of all resources in the organization – the most important
of which is people’ (Batten, 1991).‘Leadership is the lifting of people’s vision to a higher
sight, the raising of their performance to a higher standard, the building of their personality
beyond its normal limitations’ (Drucker, 1985). ‘The ability to lead, including inspiring others
in a shared vision, Leaders have clear visions and they communicate these visions to their
employees. They foster an environment within their companies that encourages risk taking,
recognition and rewards, and empowerment allowing other leaders to emerge’
([Link]/epic/internet/[Link]/en/h_qw [Link]).
Leaders are people ‘who inpsire with clear vision of how things can be done better ‘ (Slater,
2001) .The above definitions plausibly come to agree that ‘vision’ and ‘people’ are primary
ingredients in leadership context. An undersatanding of the importance of ‘people’ to the
success of a project has developed through experience attained and hard lessons learned as
this: ‘People First, Strategy Second – Getting the right people in the right jobs is a lot more
important than developing a strategy. This truth applied to all kinds of businesses…We
learned hard way that we could have the greatest strategies in the world. Without the right
leaders developing and owning them, we’d get good-looking presentations and so-so results’
(Welch, 2001) . The key ingredients of effective project leadership leading to success have
been portrayed graphically as shown in Figure 2.3.1 (Adapted from Hellregial, D. Slocum,
J.W., Jr. & Woodman, R. W.).
Figure 2.3.1
With these attributes in mind, a simple yet comprehensive, distillation of leadership thought in
the context of a project has been suggested as follows ([Link]/papers/leader/
[Link]) : Project leadership is an ability to get things done well through others. It
requires:
A vision of the destination
A compelling reason to get there
A realistic timetable, and
A capacity to attract a willing team
2.3.2 Qualities and Traits of a Leader
Further examination of leadership gives a perception in the innate characteristics and qualities
needed by a leader. Research has found the following important characteristics and traits are
common in a good leader ([Link]/communicator/):
Passion – A leader has a passion for a cause that is larger than they are, a dream for how the
world can be better and the part they can play – and rally others to join-in making their dream
a reality.
Vision – Vision gives direction to, and is needed to breathe life into, a passionate dream.
Influence - Leadership is influence. Success of leadership today is by influence, not by
authority.
Holders of Values – Leaders have values that legitimise an organization and characterize the
organization’s culture – values like respect for others, caring about people, and in the case of
support groups, empathy for those who need support and encouragement.
Creativity and Courage – Leaders think outside the box. They have the strength, courage
and confidence to do the thing they think they cannot [Link] are not afraid to try solutions
that are new or different.
Intellectual Drive and Knowledge – Leaders are perpetual students of their craft. They read,
they learn, and they get ideas from others.
Confidence and Humility – Leaders have confidence that their vision is correct, yet they are
humble enough to accept better ideas from other people.
Communicator – Leaders speak and write in ways that encourage others to follow.
Interpersonal Skills – Leaders have the ability to listen well, resolve interpersonal conflicts,
and keep everyone moving along in the same direction. It comes to a point at one time that
good is not wholly enough. Can a good company become a great company? If so, how? Jim
Collins and his research team embarked on a five-year profound research effort seeking out
the answers to the above-said questions and discovered that one of the key factors for
companies that made the leap from good to great and sustained it for a successful long term
(at least fifteen years) was a Level 5 leader who was at the helm of every good-to-great
company during the transition era and displayed the fierce resolve to do whatever needed to
do to make the company great. The term, Level 5, refers to the highest level in a hierarchy of
executive capabilities as shown in the following diagram :
Of the five layers of the pyramid, a Level 5 leader ranks at the top and embodies all five
layers and demonstrates the distinguishing traits of the good to-great leaders. The key inherent
qualities and traits Level 5 leaders possessed are concluded as below :
Level 5 leaders display a compelling modesty, are self-effacing and understated.
Level 5 leaders are fanatically driven, infected with an incurable need to produce
sustained results. They are resolved to do whatever it takes to make the company
great, no matter how big or hard the decisions.
Level 5 leaders display a workmanlike diligence – more plow horse than show horse.
Level 5 leaders look out the window to attribute success to factors other than
themselves. When things go poorly, however, they look in the mirror and blame
themselves, taking full responsibility. The above well describes what qualities and
traits a person should inherently possess as a leader.
2.3.3 Project Leadership Skills
A leader is a person who sees something that needs to be done, knows that they
can help make it happen, and gets started. Definitions of good leadership have varied;
Kevin (2007) identifies a number of characteristics that make a successful leader, as
listed below:
• A leader sees opportunity and captures it.
• A leader sees a future that can be different and better, and helps others see that picture too.
• A leader knows they can't do it alone.
• A leader is a coach.
• A leader is an encourager.
• A leader views change as their ally.
• A leader is willing to take risks today for something better tomorrow.
• A leader is a learner.
• A leader is a communicator.
• A leader is a coordinator.
• A leader is a listener.
• A leader takes a long view - letting their vision keep their daily steps on track.
• A leader is passionate.
• A leader motivates and inspires.
• A leader values results.
• A leader cares about more than results though; she cares about those who are following her
lead.
• A leader makes a difference in the lives of others.
• A leader is all of these things and much more. (Eikenberry, 2007)
As stated by John F. Kennedy, in a speech in Dallas: “Leadership and learning are
indispensable to each other.” (Kennedy, 1963) This statement is particularly applicable in the
field of project management. Most individuals are not born with all the skills needs to be
successful leaders; rather, leadership skills are learned and accumulated over time.
Most frequently, there are three ways in which individuals can gain knowledge about
leadership and develop leadership skills: from personal experience; examples and cases from
others’ experience; and books or related materials. There are a number of studies on the
development of leadership skills. From the review of the literature, there are 11 most
commonly identified skills that are characteristic of strong leaders. These skills include:
Understanding the needs and characteristics of the post; Communicating; Knowing and using
the resources of the group; Planning; Controlling group performance; Setting the example;
Sharing leadership; Counseling; Evaluating; Effective teaching; and Representing the group.
These skills will be discussed and selected in the following survey.
2.4 Leadership in Delivering A Project
Application of leadership and management in project environment is very much to do with the
characteristics of a project today and the life cycle of a project. Many projects nowadays tend
to be of large-scale, complex and international in scope and with high-end standards to
achieve in a constricted time frame and the need to adhere to a strict budget. Such projects
tend to involve a relatively sizeable project team of multi-disciplined professionals and multi-
phased implementation. Today’s typical project environment could be described as agile and
ferociously competitive. To deliver the success of a project and more importantly to sustain
business in the highly competitive environment will need an effective leadership to be built up
in the project team and executed through the process of a project.
2.4.1 Leadership in Team Building
Leadership in the contemporary project environment will have more emphasis on global and
multicultural issues – Asia & the West, Classical & Modern. Teamwork, the main paradigm
of how we work today, needs effective leadership in team building.
Leadership is about motivating people with the shared vision. An effective project team leader
should be a ‘’social architect’’ who understands the interaction of organizational and
behavioural variables, respects various cultures and comprehends the differences, can foster a
climate of active participation and can minimize dysfunctional conflict. To be effective, the
team leader must identify key issues associated with three dimensions as follows:
Understand project tasks - identify goals and objectives and conduct planning and
scope management;
Find who – get the right people for the project on board, build an efficient executive
team, establish trust and respect, and clear out barriers to team development;
Then what – with the right team in place, empower, motivate, enable and support
people to undertake and implement the project tasks throughout the project life cycle.
The above conditions can be accomplished through effective intercommunication which is
pivotal in the project management process. The more the team can be motivated and
empowered through effective communication, the more productive and efficient they become
and in turn the less direction and control is required. This will lead to a Self Directed Work
Team (SDWT). According to Batter there are five things that members of a successful team
need from their leader:
Expectation – Tell me what you expect of me
Opportunity – Give me an opportunity to perform
Feedback – Let me know how I am doing
Guidance – Give me guidance when and where I need it
Reward – Reward me according to my contribution
For the team to become an SDWT, both of the members of a project team, the followers, and
their leaders are expected to interact proactively throughout the process of a project. The
leader focuses successively on telling, selling, gelling and producing project activities along
with a four-phase careful team development, which is characterized as ‘forming, storming,
norming and performing’ ([Link]/papers/leader/). The leader’s accompanying
level of supportive versus directive leadership behaviour should be consistent with the
‘followership’ development in each of the four phases:
In the first, members of the team tend to be quiet, polite, guarded with less
communication but business-like. The leader should encourage and take ‘telling’
actions to get the team acquainted quickly and through telling for the team to be aware
of their goals and objectives of conducting the project;
In the second, there tends to be conflict over control, individuals may confront one
another and, as a result, either become entrenched or opt out. Whilst the leader uses
the ‘selling’ skills to motivate and enable the team to move forward to realize his
planning and directing strategies;
In the third of ‘gelling’ versus ‘norming’ phase, a semblance of organization emerges
with the establishment and acceptance of procedures, team skills and focus on issues.
Objectives are envisioned and strategies are formed. The team structure is established
and systems and procedures are formed to follow. It becomes a focus for the
leadership to empower and energize the team to achieve efficiency and effectiveness
in the implementation of the project via striking a good balance of playing directive
and supportive roles.
In the final phase, the team settles down to open and productive effort with trust,
flexibility, and a mature closeness which enables self-direction.
The leader tends to be more supportive than directive in this phase. This is a team leadership
and ‘followership’ evolution process through careful coherent team and leadership
developments. The leader should consciously modify his or her level of directive versus
supportive behaviour in response to the progressive evolution of team ‘followership’.
2.4.2 Leadership in Project Process
Leadership is essentially about motivating people whilst management is about getting things
done. Project management is a structured but flexible process for producing the project end
result. Its success depends on the application of a two-step sequence: first plan, then produce.
This is the genesis of every successful project life cycle.
In the planning phases of a project, the project leader leads the project team and other major
stakeholders through a high degree of study and analysis of the project Brief, information and
constraints to come up with organizational and operational strategies in order to achieve
agreed goals and objectives of the project. It is a process requiring a number of iterations in
order to flush out the client’s needs. In this connection, visioning, intelligence gathering and
developing a compelling reason and appropriate strategies are the all-important issues. These
issues also form the essential basis for effective team development. Planning is about
optimising the effectiveness of the project and its results, i.e. ‘doing the right thing’.
On the other hand, task execution gets done in the producing phases. In these phases, the
paramount requirement is an ability to conduct the project deliverables to the satisfaction of
the client(s) to the required standards, within the constraints of programme and budget by
directing, controlling and deploying the human, material and financial resources. Thus,
producing, or management of production, is about optimising the project process, i.e. ‘doing
the things right’. In this producing process, motivating, innovating, energizing and supporting
the team to implement the right strategies and get the project work done to the set
requirements are also essential.
It is clear that both managers and leaders have to get business result. This is about business
survival and is absolutely essential. For managers they will normally see the completion of
project as an end in itself, success means the completion of project tasks via the teamwork.
However there is always some thing beyond such an ending. It is, again, about ‘Vision’ and
‘People’. In today’s world we go to work not merely for financial rewards for a basic living,
but also for something with intangible values: self-satisfaction, career ambition, egoistic
accomplishments, i.e. personal growth.
This is a truism for both leader and followers. A visionary leader will never stop at the point
where the team merely achieve the basic business result or the mediocrity of their work, he
will not accept the ordinary or mediocrity but painstakingly and persistently pursue greatness
by envisioning a higher goal. He virtually views projects as the means to that higher end. He
will make his people believe in him, share his vision and wilfully run extra miles to ultimately
achieve individuals’ goals which inherently integrate with the shared project goals. It is felt
that this extra run for a higher goal distinguishes a leader from a manager and addresses the
essence how a manager can become a leader. It can therefore be seen that it is not enough to
be only an effective manager in order to deliver a successful project. One phrase to express it
is that management and leadership are symbiotic. Management brings order and structure to
leadership and leadership actualises yet elevates management by effectively rallying and
empowering the entire team to run extra miles to reach the project objectives and personal
development goals. Without both being coherently present, this symbiosis cannot occur.
2.4.3 Impetus for Changes
Implementation of a project is a dynamic process, very often involving unexpected and
unpredictable changes. A good team leader should not only provide continuity and
momentum but also be flexible in allowing changes of direction. Change is the root of all
leadership challenges in any sense.
A leader should be able to anticipate and manage changes all the time. Changes emanate from
both external and internal sources. For external changes, the leader should possess the abilities
to sensibly observe situations, fathom the facts and adversities which emerge in the course of
a project, and foresee the coming changes and their potential impacts, and then adjust the
strategies and directions where his/her team should steer to in order to best cope with the
changes.
In response to agile and competitive external environments and situations the leader should be
able to create and initiate internal changes in strategy and direction from time to time. These
changes will give rise to changes in resources planning and actions in order to better adapt to
the changing environment and maintain high competitiveness and efficiency. During the
course of implementing a change, team members, the followers, very often may not well
adapt to the change or be resistant to change at the beginning.
The leader should use the ‘telling’ and ‘selling’ skills to persistently drive the move for
change, and invigorate and motivate the team throughout the course of change. The leadership
versus ‘followership’ development process as stated in the preceding section should apply.
Changes certainly bring in challenges but also opportunities. Apart from leadership to drive
the right strategies for the change, it also indispensably needs management to manipulate
resources, control actions and move the team forward incrementally toward the destination
they envisioned.
2.5 Project Leaders- Head Of project Team (HOPT)
In PWD organizations where there may be more than one project taking place at any given
time, project leaders are needed to lead projects. They are needed to work from the planning
stages - making sure that costs and resources are available, through to the project delivery and
execution stages, after which projects are handed off to clients. In a matrix environment,
project leaders have to work with team members – Head of project Team (HODT) from
different functional units. Although matrix structures are effective, it becomes challenging for
team members, as they may have to report to both their project leaders and functional leaders.
In dual-reporting situations, flexibility and communication are key attributes a leader (both
project leader and functional leader) must practice in order to ensure an optimal work
environment. In strong matrix environments, where project leaders have more control over
most aspects of the project, one key issue for success is to make sure that functional managers
are fully ‘bought-in’ to the projects their subordinates are working on. If not, it could lead to
confusion for subordinates, as they will not know how to prioritize their work. This is where
the role of the senior leaders or project champion comes into play, as they could serve as the
project’s ambassador, clearly communicating the significance of specific projects to all
concerned.
2.6 Effective Leadership
Effective leadership is crucial to an organization’s success. There are several common
characteristics that effective organizational leaders share. Without these characteristics,
initiatives and change can fail. Leaders can take many different steps to help keep projects
from failing.
Leaders need to be self-aware of how their actions are perceived by those they manage
(Moment, 2007). Employees will sometimes mirror the behavior of managers. Aghdaei
(2008) talks about the philosophy of “shadow of a leader,” where the leader demonstrates the
wanted behavior (p. 16). Leaders should model hard work for employees (Weiss, 2000).
Aghdaei (2008) states that “when you repeatedly demonstrate meaningful, positive behavior,
people are motivated to follow” (p. 16).
Leaders must have enthusiasm for their work so that it spreads to those whom they supervise.
That involves leaders believing in the company in which they work. “The ability to inspire
loyalty and build relationships is a key component of leadership” (Newcomb, 2005, p. 35).
“The CEO who wants to be a true leader must be the most vivid example of the culture at
work. Only then can the CEO inspire passion in the rest of the team” (Hesselbein, Goldsmith,
& Somerville, 2002, p. 124). To get the best out of workers, leaders need to be able to
motivate them (Moment, 2007). Leaders should look to all of their employees for new ideas
and solutions (Hesselbein, Goldsmith, & Somerville, 2002). Leaders should also “cultivate,
champion, and then support” new ideas and “provide an environment for the development and
expression of the entrepreneurial spirit (Hesselbein, Goldsmith, & Somerville, 2002, p. 88).
Leaders create the organizational climate to which followers react (Hrebiniak, 2005).
Strategic planning is crucial to guide leadership (Choen, 2008). Leaders must make clear and
specific goals and objectives, be able to communicate those, and make sure that the goals are
measurable. Planning and having a strategy are important in order to make initiatives
succeed. Managers have to move ideas and initiatives to executable steps that their team can
implement (Maddock & Viton, 2008). A leader has to clearly communicate what is needed
(Weiss, 2000). If the employee does not understand what to do, then the initiative is set up for
failure.
Effective leaders must establish a culture of accountability. “Leaders need to be held
accountable to the organization for results, [a] plan must be accountable to the outcomes, and
the employees must be accountable for their actions” (Newcomb, 2005, p. 36). There needs
to be measurable goals for which everyone can be held responsible. “Without clear
responsibility and accountability, execution programs go nowhere” (Hrebiniak, 2005, p. 25).
Leaders also need to know how to handle and address failure. Hesselbein et al states that
“failure can become the next step of learning, the beginning of another new creative idea”
(Hesselbein, Goldsmith, & Somerville, 2002, p. 89). Failure can be a learning experience and
should not necessarily be punished. Also by punishing failure, employees may be more
reluctant to suggest innovative ideas for fear of failure.
Leaders must organize and manage employees. While innovation requires the organized
efforts of others to work (Hesselbein, Goldsmith, & Somerville, 2002), the result of not
involving everyone is that increased resistance to change can appear (Dooley & O’Sullivan,
2001). Gratton and Erickson (2007) report that “a team’s success or failure at collaborating
reflects the philosophy of top executives in the organization. Teams do well when executives
invest in supporting social relationships, [and] demonstrate collaborative behavior themselves
…” (p. 103). Lack of widespread company support can make initiatives fail (Strebel, 1996).
Leaders need to be able to adapt to “shifting circumstances” and cope with those changes
(Moment, 2007). “Every organization needs leaders who can change as fast as market
conditions do” (Newcomb, 2005, p. 34). Business needs can change rapidly and employees
look to their leaders to guide them through change. Uncertainty in leaders can lead to a lack
of faith by employees.
Leaders are important for promoting ethical standards and for modeling ethical behavior and
promoting it to employees (Stansbury, 2009). Leaders need to be honest and accountable for
their actions (Hesselbein, Goldsmith, & Somerville, 2002). For employees to practice ethical
behavior, “they must work in an environment where that behavior is encouraged and
supported” (Duncan, 2002, p. 685). Professionals are expected be truthful and “stand
accountable for their mistakes and in turn expect the same from their subordinates
(Hesselbein, Goldsmith, & Somerville, 2002, p. 63).
Employees should be treated equally. Managers should not ignore exemplary or poor
behavior. Rather, effective leaders should reinforce good behavior and negatively reinforce
bad behavior, and should avoid making blanket statements (Weiss, 2000). If employees see
unequal treatment and do not get rewarded for their extra effort, that extra effort may
disappear. Everyone should be treated the same (Weiss, 2000).
There are many characteristics of effective leaders. These characteristics can help to improve
the success rate for new initiatives and improve the performance of an organization and its
employees.
2.7 Evaluating Leadership Effectiveness
All organizations and groups have leaders, but not all leaders are effective. Two commonly
used factors for evaluating effectiveness are follower support and goal achievement. The
leader can have immediate or delayed influence on the outcomes for both factors. For
instance, a policy or practice change may produce immediate results. The results from
initiatives to build trusting relationships or to implement a quality management system are
often realized over time. Followers play a key role in evaluating the effectiveness of leaders.
Whether in a position of authority or informally selected by a group, leaders are typically
evaluated based on their potential to benefit the group or organization by controlling scarce
resources, providing vital information, and resolving critical problems. As shown in Figure 1,
those who are perceived to be able to make a high potential contribution are given status and
power and the latitude to innovate. Followers also expect the leader to show initiative by
helping solve important problems. Leaders who take no action will lose status and power.
Leaders gain esteem and influence when their solutions are successful. If solutions fail, the
followers evaluate the cause and the leader’s motive.
The group will continue to be supportive if they perceive the leader to be loyal to the group
and the failure related to circumstances beyond the leader’s control. However, leaders will
lose significant status when the group perceives the failure to be linked to selfish or
irresponsible decisions (Yukl 2006, p. 158). This social exchange theory is helpful to
understand why leaders may succeed or fail. A manager or leader should have effective
leadership behaviors, knowledge, and processes to help a group solve
problems and make good decisions. An ineffective leader may react to losing the support of
followers by using intimidation, withdrawal, and personal attacks that further estrange
followers and impair his/her ability to achieve the desired goals. The majority of leadership
research has focused on differentiating the components of leadership to evaluate
effectiveness. These are generally broken down into traits and behaviors (Jago 1982 and
Clark 1990). Traits are characteristics such as personality, motives, values, and skills. There is
considerable evidence that leadership traits are both learned and inherited as part of a person’s
temperament and natural talents. Some people will be more naturally inclined to develop
certain leadership skills and traits while others will have to work hard at it. Some will be more
task-oriented, while others will be more people-oriented. Some will enjoy change and others
will prefer stability.
Personality traits seem less important than skills for effective leadership (Yukl 2006, p. 444).
While charisma can be beneficial, charismatic leaders are less effective over time if they yield
to their tendency to become the focus of the organization and make co-workers dependent on
them. Out of the 11 companies identified by Collins as making a transition from “good” to
“great,” only one of the leaders had charisma and few were well known by the general public
(Collins 2001). Studies have also examined how motives affect leadership effectiveness.
McClelland and his associates (1985) found that the motives fall into three categories: (1)
affiliation (obtains satisfaction from being accepted and liked), (2) achievement (obtains
satisfaction from successfully accomplishing a difficult task or being the first to do
something), (3) power (obtains satisfaction from influencing the attitudes and behaviors of
others). Various studies have determined that power can be subdivided into two groups.
Leaders with a personalized power orientation satisfy their need for power by dominating
others in selfish ways. Leaders with a socialized power orientation gain satisfaction by
helping others develop and by influencing the group to achieve their goals. Start-up and
young, growing organizations tend to have leaders who have expertise and a strong
achievement orientation. Larger, more mature organizations perform best with a leader who is
strongly oriented to socialized power, complimented by a moderately high need for
achievement and a relatively low need for affiliation (Boyatzis 1982).
The more recent studies of leadership are less concerned with how leadership originates and
more concerned about what leaders do and how the organization experiences it. Research in
leadership practices has found that highly effective leaders have a high concern for both task
objectives and relationships, and tend to use a behavior pattern that is appropriate for the
situation they are experiencing.
2.8 Summary
Overall, literature review on project leaders find factors that affect project delay as slow
decision making, low integrity, lack of communication and interpersonal skills, lack of
planning and scheduling, low Motivation, improper planning, low competencies and lack of
creativity and Innovation negotiation thinking and skills. In addition, input from the audit also
relevant for search project failure due to the project leaders attributes. Definition of leadership
in the project management, effective project leaders and leadership skills are also needed to
identify the properties of the required to produce an effective project leader.
This literature review reveals that project leaders attributes to under performances of the
projects. The literature also shows what kind attributes or characteristic of project leaders
such as decision making, low integrity, lack of communication and interpersonal skills, lack
of planning and scheduling, low Motivation, improper planning, low competencies and lack
of creativity and Innovation negotiation thinking and skills. Leadership development does
more than force individuals to think about their leadership skills, it also enables individuals to
assess what impact their leadership has on other people and provides an honest look at the
environment (Hernez- Broome & Hughes, 2004).
The literature indicates that a shortage of effective leaders exists and illustrates the importance
of effective project leaders for the long-term success of organizations. The proposed study is
designed to identify key elements of an effective leaders and how it could be used to
effectively prepare future leaders.
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