How Organizational Culture Can Influence Project Management

Project management professionals are in high demand these days, with most companies keen to recruit employees who can oversee and deliver critical projects in minimal time. While personal proficiency is the key to project management, external factors also play a huge part in project performance.

One of the biggest influences on project management is the organization’s culture. Organizational culture theory is a vast subject that incorporates multiple thought processes and hypothesis. It can be defined as the values and behavior of employees within the workplace. 

Many people have tried answering the question, “What is organizational culture?” But, one of the most commonly cited definitions is by Ravasi and Schultz (2006), who characterized organizational culture as a set of shared assumptions that guide behaviors.

This collective set of assumptions and consequent behavior translates into the unique way in which employees at a particular organization think, feel, and perceive the workspace around them. It dictates the way in which employees interact with each other, clients, and stakeholders.

There are several factors affecting organizational cultures such as physical workspace, wage structure, leadership, employee engagement, turnover rate, and more.

How Does Organisational Culture influence Project Management

In 2013, a study by Gallup Data found that organizational cultures that promote above-average engagement can increase employee performance by up to 240%. Several other studies conducted by industry experts have also concluded that company culture plays a major role in employee motivation and their subsequent achievement of goals and objectives.

This has a very huge influence on project management, which is, in its essence, the art of getting people to perform at their best. This is why understanding organizational culture is essential to project management.

Some of the key aspects where culture influences project management are-

Governance

Governance is a key responsibility of project managers. Organizational culture dictates the approach that managers have to take, whether they take a more authoritative approach to those working under them or give employees leeway to operate. If the organizational culture is one that espouses productivity, then the latter can help project managers perform better with lesser friction within the team.

Process Orientation

A major part of project success can be attributed to process orientation and training. If an organization has already trained employees sufficiently and inculcated a spirit of learning in their work culture, then process orientation for the manager becomes an easy job. If not, then project managers may face multiple hurdles in their training efforts.

Performance Metrics

When it comes to establishing performance metrics, there are two types of organizational cultures that exist. The one that focuses on short-term key performance indices (KPI) and one which looks at the bigger picture and factors in the intangible performance indicators.

In the case of the former, the project manager is expected to set up regular performance meetings to monitor progress, even if things are going according to plan. But, for companies looking at long-term goals, the project manager can focus on the final goal and team-building, with a lesser focus on a daily update of KPIs.

Relationship Expectations

One of the biggest influences that work culture can have on project management is the expectations that the team members have from their manager. In a company that encourages teamwork and growth, they will expect transparency when it comes to appraisals and promotions and also be willing to stretch themselves to fulfill management needs. However, in a more hierarchical structure, they will expect a formal relationship that is completely governed by company policy.

These are only a few of the ways in which organizational culture affects project management. There are several other aspects of project management that can be affected either positively or negatively by the culture at the workplace.

In order to know more, you can take IIM Rohtak’s online certification course in Project Management. The Institute is known for providing the best online project management courses. The course is very competitively priced and will equip you with the knowledge and skills that you need to shine as a project manager. The course mentors include faculty from prestigious institutions across India such as IIM Rohtak, IMT Ghaziabad, IIM Raipur, and MDI Murshidabad.