Analysis of Enterprise Environmental Factors

There are many internal and external factors that have large impact on a project basically project management process face difficulties to run the project appropriately. Some common internal factors of the organization that usually affect the working environment of the project are the infrastructure of the company, availability of skills, attitude of management towards risks, governance approach, etc. The external factors that also impact the project management process of an organization are political condition, financial conditions, etc. Therefore, these factors are also known as enterprise environmental factors that influence the project management processes effectively (Ahmed, 2018).

Impact of Internal Factors on Project Management Processes:

The internal factors that generally impact on the project management processes are considered as very harmful factors that not come under the control of the project in charge or project team. The internal factors influence the progress of the project directly. The planning processes of the project get disturbed effectively and a negative influence can be seen on the outcome of the project (Ahmed, 2018). The internal factors, such as the infrastructure of the company, availability of skills, attitude of management towards risks, governance approach, etc. are mainly responsible to reduce the value of the project ad increase the cost and deadline of the project completion.

Further, the ineffective infrastructure of the company, such as lack of equipments or tools, no safety equipments, improper arrangement of communication technology, poor electricity facilities, tec. impact the project management processes as slow work, loss of time, threats of life of the employees and delay of the project. At the same time, the availability of skills like technical skills, communication skills, management skills of the employees or team members help to improve the success of the project completion on time (Ahmed, 2018). However, in the case of these required skills of the employees those are inefficient can make the project process slow and ineffective because these skills are necessary to move the project at the next level.

Moreover, the attitude of management towards risks should be positive to save the life of the workforce and avoiding any legal action against the organization that is running a project, such as construction of a building or house project. The care about risk management of the organization not only helpful to save life of employees, but work can be continued regularly. The use of safety procedures on the site of the project assure increasing trust level of the employees and less probability to leaving of employees from the work (Ahmed, 2018).

At the same time, the governance approach that also impact the project management processes should be considered on the priority basis. An appropriate governance approach, such as regular communication with the employees, monitoring of work progress, fulfilling the requirement of the tools and technology and other basic needs of the employees can help to improve the project management processes to move towards right direction and complete the project (Ahmed, 2018). On the other side, a weak governance approach such as no interest to listen the basic requirements of the project team and employees can reduce the confidence level and performance of the employees and consequently delay in project execution.

Impact of External Factors on Project Management Processes:

The common external factors that impact on project management processes are political condition, financial conditions, climate disturbance, etc. A project management processes is based on five steps to complete the project, such as initiation of the project, planning of the project, project execution, monitoring and controlling and closing of the project. These steps of project management processes may be disturbed in the case worse effect of external factors (Tharp, 2013). The continuity of project management processes can be disturbed in the case instability of government in the country or making any rules about any construction project. This can increase the delay of the project completion and cost increment. In most of the situations, the probability of taking more service tax by the ruling political parties can also impact the project execution on time.

Further, the financial condition also impact the project management processes. When the investors of the project make delay in payment of money because of any reason can slow the working activities of the employees. The investors are responsible to provide financial assistance on the scheduled basis to keep the project progress continue without any disturbance due to lack of money. Moreover, climate disturbance is a big threat to ruin the project management processes. In the case of earthquake, heavy rain, storms and other natural incidence delay the project processes and increase the cost of project completion (Tharp, 2013). The success rate of project management processes in the case of regular climate problems is very less and the organization of the project can leave for further work execution. Therefore, it is important to analyze the project location before initiation of the project and its planning and execution.

Strategies to Implement Appropriate Course of Action:

In order to achieve the success in project management processes of the organization, both internal and external factors should be addressed on the priority basis. At this stage, development of effective strategies to implement appropriate course of action can be described as below:

Improvement of Infrastructure: In order to implement appropriate courses of action against infrastructure of the company to reduce impact of infrastructure problems, it should be improved effectively in which the management of existing facilities and arrangement of equipment is necessary. The management should also focus on arrangement of telecommunications channels and information technology to communicate and monitor the working activities of the employees at the project site (Hessami, 2019). The schedule of the work and management systems configuration should be changed with changing work authorization systems in project management processes.

Training: The course of action against different skills of the employees, the project management can arrange training facilities to the employees in order to increase existing human resources expertise and skills. The training to the employees can also help to improve competencies and specialized knowledge associated to the project.

Establishment of a Strong Leadership Environment: The improvement of risk management environment, attitude, and governance approach to run the project management processes effectively, it is necessary to clear vision, mission, and values of the organization. The management of the company is also responsible to conduct regular meetings and workshops to improve beliefs of the employees towards importance of risk management, cultural norms, and leadership (Hessami, 2019). There should be a strong leadership environment in to implement ethics and code of conduct of working activities.

Accept Perception of the Country: The political environment of a country is considered as different from other countries because of perception of political parties. Therefore, the country or local laws and regulations should be followed when initiating a project and executing them (Hessami, 2019). The management is responsible to follow related security measures at the project site, employment and procurement of the resources.

Good Relationship and Maintaining Trust of Investors: The completion of project management processes is based on financial support. The investors of the project play essential role because they provide money to initiate and execute the project effectively. At this stage, a good relationship needs to make with them to increase trust level and continuous financial assistance.

Awareness on Climate/natural Disturbance: The effect of climate on the project management processes cannot be controlled at all. However, pre information about the natural problems can help the management to protect the continuity of project. It is necessary to aware all employees at the project site in the case of earthquake, rain and other natural problems to protect them from harmful effect of natural disaster (Hessami, 2019).

Conclusion:

From the above evaluation of the impact of internal and external factors on Project Management processes, it can be stated that these have capabilities to disturb the progress of the project. However, an appropriate course of action and strategies can help the management to make the project successful effectively.

References

Ahmed, M. S. (2018). Internal Factors Influence on Project Management Maturity Assessment. International Journal of Management & Information Technology, 13(1), 3193-3206. DOI:10.24297/ijmit.v13i1.7153

Hessami, A. (2019). Perspectives on Risk, Assessment and Management Paradigms. UK: IntechOpen. 

Tharp, J. (2013). Sustainability Integration for Effective Project Management. New York: IGI Global.