Allocating human resources to projects and services in dynamic project environments

Abstract

Purpose Resource allocation is challenged by dynamic environments where changes are frequent. The purpose of this paper is to identify resource allocation challenges and practices in service units that perform both project and non-project activities in dynamic environments. Its goal is to show that top-down mechanisms of project resource allocation need to be replaced by or supplemented with mechanisms that are more flexible. Design/methodology/approach A qualitative comparative case study was conducted in two service units of two project-based firms. The main source of data consisted of semi-structured interviews with 17 service managers and staff members. Findings This study shows that resource allocation is not necessarily a top-down process at all, and the practices are context-dependent. Two more flexible approaches are revealed – hybrid resource allocation and bottom-up resource allocation – as examples of managing resource allocation in service units that engage in projects under uncertain conditions. The results of the analysis highlight prioritisation and adapting to change and delay as the main issues that managers face in allocating resources to different types of projects and service activities in dynamic environments. Research limitations/implications The two target companies chosen for the qualitative research design limit the analysis to project-based firms in a business-to-business context. Further, the viewpoint of the service unit is central to the study. Studying project resource allocation in different organisational contexts and uncovering the perspectives of product development and delivery units would offer promising directions for future research. Practical implications The study reveals that in dynamic project settings such as service organisations, top-down mechanisms of resource allocation need to be accompanied by other, more flexible approaches to ensure the sufficient resourcing of projects and related services in dynamic environments. Companies need to establish practices for resource allocation changes that are caused by re-prioritising tasks and accommodating changes and delays in their project and service activities. Originality/value Compared to a top-down perspective taken in previous research, the study proposes a more flexible approach for resource allocation in constantly changing environments with different project and service activities. Previous studies have focussed on resource competition between projects, placing project managers in the central role for resource allocation. By contrast, this study discusses hybrid and bottom-up resource allocation, both of which involve broader personnel engagement in resource allocation tasks, drawing on the experience of all employees.

A fine balance? Unwrapping the coexistence of projects and non-projects in the core of the organization

“…In other organizations, such balance may be accentuated in share of revenues (Muller et al , 2016), the importance of projects vs non-project services (cf. Momeni and Martinsuo, 2018), as well as the combination of development work (executed in large and complicated projects) with long-term operations of roads, airports, railways, energy plants and petroleum fields, etc.…”

“…In contrast to the “line functions support projects” (PBO) and the “projects support functions” (PSO) contexts, Momeni and Martinsuo (2018) studied organizations where the carrying out of projects and non-projects is based on the same resource pool (functions support both projects and non-projects). The two case firms are system suppliers that deliver systems as projects to industrial customers and complement their systems with non-project service activities.…”

“…While acknowledging the contributions of the above research to the understanding of contemporary organizations, the emphasis on PBO and PSO has come at a price: the neglect of organizations whose core activities consist of both project work and recurrent, long-term operations. With a few notable exceptions (Momeni and Martinsuo, 2018), previous research has tended to emphasize contexts where either a project logic dominates (PBOs) or organizations (PSOs) where projects (such as developmental and change initiatives) support an operational, non-project logic in the core activities of the firm.…”

HR activities and practices for project success: A multi-method approach from Indian IT firms

“…Unless HRAPs lead to cohesive team-building, healthy communication and transformational leadership, project success would remain a myth (Aga, Noorderhaven and Vallejo, 2016). Indeed, replacing the top-down approach with a more flexible mechanism, especially in the case of project resource allocation, by drawing experiences from the grass-root level of the organization is of critical importance (Momeni and Martinsuo, 2018).…”

Does flexibility in project management in early project phases contribute positively to end-project performance?

“…With the awareness that projects are embedded in a changing and dynamic environment (Bosch-Rekveldt, 2011), Klein et al (2015) also discuss that in dynamic environments, particular project management theories (fit-for-purpose project management) can help in achieving projects' objectives. Recognition of dynamic environments and its effects on projects has been researched from different perspectives such as human resource management (Momeni and Martinsuo, 2018).…”