Drivers of Project Management (PM) Education in India - A Research Study

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This study is an initial attempt, to investigate the factors that are responsible in driving the growth of Project Management Education in India. For more info visits http://www.pmi.org.in/reports.asp

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Drivers of Project Management (PM) Education in India - A Research Study

  1. 1. Drivers of Project Management (PM) Education in IndiaA Research StudyFor More info visit www.pmi.org.inAuthorsDr. M.G. KorgaonkerDr. Mona N. ShahDr. J. K. KonerProf. M.V. MadurwarProf. Smruti SanjeevaniSponsored byProject Management Institute®, IndiaOctober 2010NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT ANDRESEARCH, PUNE, INDIA1
  2. 2. Balewadi, Pune – 411 045ACKNOWLEDGEMENTSWe wish to express our sincere thanks and gratitude to the Project Management Institute®(PMI®) India for their sponsorship of the pioneering study at the National Institute ofConstruction Management and Research, Pune, India. We would like to specificallyacknowledge the overwhelming support and encouragement received from Mr. Raj Kalady,Country Director, Project Management Institute®(PMI®) India, throughout the duration of thestudy. We thank him for his unlimited patience, in accepting the somewhat inevitable timeoverrun in the completion of the study and finalization of the report.The study team deeply acknowledges the valuable guidance provided by Dr. M.G.Korgaonker, Director General and Project Director, whose extensive experience in the area ofproject management as a researcher and pioneer of the 2 years fulltime course on ProjectEngineering and Management in India at NICMAR, helped the team gain appropriateperspectives about the field of Project Management. His keen interest and leadershipthroughout the study enabled us to remain on track.We remain indebted to all the respondents to our survey who gave us huge amounts of timeunselfishly, helped us to patiently complete the in-depth questionnaires, and hosted ourresearch team with warmth and concern. If the study has seen a successful completion, it is inno small measure due to the vital inputs provided by each one of our institutionalrespondents.We wish to place on record the valuable assistance provided by Dr. Jonardan Koner,Prof. Mangesh Madurwar and Prof. Smruti Sanjeevani who as members of the investigatingteam worked with enthusiasm and dedication to complete the survey of institutions,executives and human resource managers and collate it for analysis. We thank Mr. A.R.Jadhav, Sr. Librarian at NICMAR, whose unstinted and cheerful support was alwaysforthcoming throughout the study. We thank Mr. Rajanikant Sagwekar who helped in thepage-setting and layout.Dr. Mona N. ShahPrincipal InvestigatorOctober, 20102
  3. 3. EXECUTIVE SUMMARYThis study is an initial attempt, to investigate the factors that are responsible in driving thegrowth of Project Management Education in India. The study throws light on specific factorsthat emerge after studying the available literature on the subject as well as the responsescompiled from a cross-section of the primary stakeholders namely the Government,Academic Institutions, Practising Executives and Human Resource Managers connected withproject management education and training.We begin with a discussion on the need for PM education to take root and grow in India inthe interest of its major stakeholders and users like the government, and industry – both ofwhom have enormous investments tied up in a range of mega, major and medium sizedprojects. As per Ministry of Statistics and Programme Implementation (MOSPI), in the year2009 alone, a total outlay of 607,188 crores ( 6072 billion) was tied up in 941 CentralGovernment projects alone. In the private sector, the investment value tied up in projectsstood at over 100 trillion. As per CMIE data, the aggregate employment in projects sectorstood at over 160 million persons.In chapter 2, we review the literature using journals and reports that assess the current statusof project management education at a global level as well as in India. The European, NorthAmerican countries, and Australia show tremendous progress in establishing PM in almost allrealms of activity –governmental, industrial, academic, research and societal, through myriadinitiatives. In case of China, India’s closest comparable country, PM appears to have takenfirm roots since the 1990s decade, using a systematic ‘top down’ approach. In India, efforts topromote PM education in a structured mode appear to have only just begun.Chapter 3 of the study explains the design of the research study, the hypotheses formulated,the scope and methodology. The study has made use of primary and secondary data and wascarried out within India. It covered a cross section of faculty/heads of departments of leadingtechnical and management academic institutions from eighty one institutes from all overIndia. Data was collected using the Personal Interview Technique. The next set ofrespondents was the practising executives from project based organisations. Eighty eightexecutives responded to a comprehensive survey questionnaire that had questions ranging3
  4. 4. from work experience and value of projects previously engaged in or currently working, totheir perception on the inclusion of subjects that enabled them to perform better on projectsand in the careers, as well as other gains that accrued to them after undergoing PM training.The study raised questions about the factors that they perceived were important in influencingthe growth of PM in India.The third set of respondents was drawn from a pool of select and leading project basedcompanies from a cross section of construction, power, engineering and IT industries. Therespondents were twenty human resource managers with considerable experience indesigning training programmes for their companies. Care was taken to ensure that therespondents were geographically distributed, over India. Statistical tools used in compilingand analysing the results were Pie charts, Bar and Column Diagrams, Correlation andRegression Analysis, Factor Analysis and Multiple Regression Analysis.Chapter 4 presents findings of the survey emerging from responses received from AcademicInstitutions. Significant results were obtained in this analysis. There is a clear case for strongpromotion of PM education in technical and business schools, with faculty emphaticallyadmitting that the employability of the students who undergo the PM courses is significantlyimproved. Overall the faculty has advocated a broad based project management subjectcurricula to be taught in technical, business, architectural, planning and infrastructureinstitutes. However their clear preference was for the core PM subjects of i) OperationsManagement, ii) Project Planning, Execution, Monitoring and Control iii) Statistical Methodsfor Project Analysis, iv) Health, Safety and Environment, v) Operations Research and vi)Accounting and Control Systems. The faculty suggest that subjects like Macro EconomicPolicy, Project Strategy, Risk Management, Project Financing, Legal, Commercial andTaxation Aspects in projects should be considered important for curriculum at the postgraduate level. The subject in the Behavioural Sciences Area, deemed most important wasManagerial Skills. All subjects in the Information Technology Area like Prima Vera,Microsoft Projects (MSP), engineering software, SPSS etc were considered to be uniformlyimportant in PM education. The faculty respondents considered the coverage of sectorspecific issues in the curriculum to be very important, but appeared unsure about the relativeimportance of the sectors of economic activity where PM teaching should be directly focused.The correlation analysis provides very good basis for structuring courses in all the subjectareas considered in the study. In the Technology and Management area, the results indicate4
  5. 5. that the subjects Project Site and Equipment Management, Project Procurement and MaterialsManagement, Contract Management, Facilities Engineering and Management and ProcessDesign / Engineering / Testing / Commissioning are correlated. This is expected since theseissues arise during project execution and have to be dealt with in a coordinated manner.Similarly correlation among the subject areas Logistics and Supply Chain Management,Transportation Management, Facilities Engineering and Management are also quite expectedand in most projects, these would be dealt with together. The correlation between subjectareas Operations Management and Operations Research, and also between ProjectFormulation and Appraisal and Project Engineering are also along expected lines. There isalso good correlation between Quality Management and HSE subjects and thereforecombining these into a single course would be quite appropriate. It is not surprising that inthe project management fraternity, the precise differences among these subject areas are notvery clear.While most of the subjects grouped in these subject areas are found to be very important,there is a case for combining some of these together, in order to emphasize the importance ofmanaging projects in a coordinated and integrated manner. A direct outcome of thecorrelation analysis is that in institutions and curricula where it is difficult to introduceseveral execution oriented courses, it will be quite adequate if a single course emphasizingproject execution is included.In the Economics and Strategy area, the subject Social Cost benefit Analysis is most heavilycorrelated with other subjects including Macroeconomic Policy, Project Strategy, ProjectFinancing, Legal, Commercial and Taxation Aspects. Thus if this course is included as aseparate course, care must be taken to ensure that the content is not duplicated in othercourses. Alternately the course need not be included, if other courses reflect the content.There is a case for combining the courses Project Financial Management and ProjectFinancing, courses Project Strategy and Macroeconomic Policy, and courses Legal,Commercial & Taxation Aspects and Project Joint Ventures, Strategic Alliances & SpecialPurpose Vehicles. The correlation analysis provides very good guidelines on the way coursesin this subject area could be grouped and introduced in the PM curriculum.In the Behavioural Sciences area, three subjects are correlated to each other, namelyIndustrial/ Labour Relations, Conflict Management and Diversity Management. So from thepoint of view of the respondents, these subjects reflect some common issues and concerns5
  6. 6. and there is a case for combining these together to achieve an integrated approach to dealwith these issues and concerns. The other courses may be taught independently.The correlation analysis results provide a useful way of structuring courses in IT area in thePM curriculum. For instance, ERP and e – Business Applications courses could be combinedinto a single course. Similarly Specialized Engineering Software and Common Software suchas Excel, SPSS, DBMS could also be structured as a single course, in case there is difficultyin offering these as separate courses. Only Project Management Software needs to be taughtas a separate course.Majority of the sample felt that resources were generally easily available in the institutes interms of library, course materials, classrooms, laboratories, computer labs, qualified facultyand availability of research facilities. The respondents also strongly endorsed the existence ofmanagement vision to support PM endeavours. It takes on average about a year to build thenecessary physical resources. On average, the faculty recruitment and training process takes14.7 months. The research involvement of the institutions is found to be quite low and onlyabout 20% institutions reported funded research.Chapter 5 presents findings of the survey of practicing executives from leading project basedorganisations in India. The respondents offered their responses on a variety of issues such astheir first systematic exposure to PM training, the ideal PM curricula, from their perspective,the gains from PM training and the factors that they consider important to improve PMtraining at graduate level. Majority of the practising executives responding to thequestionnaire were from the middle management cadre, from technical institutions with noprior exposure to PM training. Most of these were working on projects with value between200–300 crores using very elementary PM techniques such as PERT/CPM.It is interesting to note that ratings assigned to practically all the subjects in the Managementand Technology area by executives are higher than the corresponding ratings assigned by theinstitutions. The courses rated as ‘extremely important’ include Planning, Scheduling,Monitoring and Control Techniques; Project Quality Management; Health, Safety andEnvironment Management; Cost Estimation and Budgeting; Quantity Surveying andEstimation; Project Site and Equipment Management; Project Procurement and MaterialsManagement; Contract Management. Furthermore, some courses are considered far moreimportant by executives compared to the institutions. These are : Contract Management;Project Procurement and Materials Management; Quantity Surveying and Estimation; Cost6
  7. 7. Estimation and Budgeting; Health, Safety and Environment Management. One possibleexplanation is that these courses have a strong ‘execution’ and ‘practical’ bias. Naturallyexecutives seem to realize their importance far more than the institutions.In the Behavioural Sciences area, the overall ratings for all subjects in the area averaged‘Very Important’, except for Managerial Skills subject rated ‘extremely important’. Thissubject is rated much higher by the executives, while the other subject ratings in this area arecomparable to those assigned by the institutions. In the IT area, PM Software, ERP andExcel/DBMS/SPSS are rated ‘extremely important’ and the other subjects are rated ‘veryimportant’. The ratings assigned to these subjects are very comparable to those assigned byinstitutions, although executives have assigned slightly lower ratings to Engg Software.The coverage of all the specific sectors is considered ‘very important’ by the executives.Sectors like Roadways, Railways, Urban Infrastructure, Civil Aviation and Mega PropertyDevelopments are considered relatively more important than others. Chemical Engineeringand Defence sectors have received relatively lower ratings. The executives’ ratings aregenerally similar to the institutions’ ratings. However the executives have assigned somewhathigher ratings to the Technology, Roadways, Railways, Civil Aviation, Urban Infrastructuresectors.In terms of gains derived in developing a better strategic overview of projects, PM training‘helped immensely’ in the area of Work Breakdown Structure and Responsibility Mapping.At the direct project level, training ‘helped immensely’ in Project Planning, Scheduling,Monitoring and Control. Training ‘helped substantially’ in other areas including ContractManagement, Costing, HSE, Quality Management and Communication Skills. The gainsderived in Project Planning, Scheduling, Monitoring and Control are particularly noteworthy.Thus the executives affirmed that training has helped them to acquire an integrated view ofthe project, role clarity, understand work breakdown structures and responsibility mapping onprojects, and envision the exact fit of a project in the overall corporate strategy.In individual career enhancement, executives saw improvement on two factors, namelyimproved decision making ability and improved understanding of human related factors i.e.interpersonal relations and conflict resolution. Some experienced higher responsibilitycoming their way after completion of PM training. On the whole there appear to besignificant gains in terms of the enrichment and enlargement aspects of the job. Theexecutives shed light on their perception of the factors they consider important for the growth7
  8. 8. of PM education in India. According to them, the most important factors inhibiting growth ofPM education, in order of priority are i) the lack of awareness amongst the students andeducators about PM, ii) lack of trained instructors at the undergraduate and post graduatelevel and iii) being a practical field PM cannot be taught in the classroom, iv) mastery comesonly from practical experience and v) prior knowledge is not a prerequisite for working inthis field.Chapter 6 presents findings of the in depth survey of twenty Human Resource (HR) managersof leading project based organisations on issues such as; the training design, types of PMtraining, costs of training, factors affecting PM training, cadres to whom PM training is to beimparted, and training efficacy. The HR managers chosen had substantial exposure andexpertise in conceiving, designing and organising PM related training for executives withintheir organisations. On the average, most of the companies have taken steps to initiate PMtraining in the past five years. The companies generally prefer to deploy employees in themanagerial cadre for training. Within this section of employees, the most frequently chosenare the middle and senior managers for receiving PM training. The important objective inorganising PM training is to prepare the executives with key skills in planning, controlling,execution, contracts and such other areas that would enable them to contribute directly toproject success.For deputing executives for training, the companies are found to particularly emphasize thefollowing factors: perceived gains from PM training, employee retention, careerdevelopment, ability to execute complex projects, ability to monitor and control projects,ability to plan projects, ability to manage contracts in projects, ability to deliver projects inright time, costs and quality. Thus project planning, monitoring & control; execution ofcomplex projects and employee retention & career development emerge as the key areas forseeking training inputs.‘In house Training’, ‘On the Job Training’ and ‘On the Job with Classroom Training’ are themost preferred methods of training. Given that both skills and knowledge are key componentsof competencies, training must clearly aim at improving skills and knowledge base ofexecutives. The training levels most preferred for various grades of executives are:elementary for Operatives, basic for Supervisory, Advanced for Middle level managers,Strategic for Senior Level executives. These findings highlight a planned approach for PMtraining. Overall the perception amongst the HR managers is that PM training is quite8
  9. 9. expensive on various counts such as trainees’ salaries and time, materials for training,expenses for trainers, expenses for trainees, facilities and equipment, lost productivity.However HR managers do not mind the loss of productivity of executives during theirabsence, which they feel will be more than compensated by the large scale benefits expectedfrom training.HR managers view training to be ‘quite benefitial’ on all the factors considered including :increase in production/ performance, reduction in errors and improvement of safetystandards, employee retention, lesser supervision, ability to use new skills and capabilities,improved delivery performance, attitude changes, and growth of business oportunities. HRmanagers strongly endorse the benefits derived from Attitude changes. One factor - Increasein production / performance, is not viewed as benefitial as other factors. One interpreation isthat they look for direct benefits from training in ‘process improvement’ rather than ‘outputimprovement’.Certified franchisee trainers are considered most efficacious training providers, followed byinternationally certified trainers, independent trainers and academic institutions. This may beattributed to the flexibility and highly focussed approach of these trainers. However HRmanagers highly value the highly qualified faculty, specialised competence, researchexperience, reasonable cost of academic institutions, which they believe are a great advantagefor developing good training content, even though they may not be able to deliver highlycustom designed training.. The most frequent academic institutions for PM related trainingappear to be the management institutions together as group, followed by in house trainers andNICMAR. Considering that NICMAR is a single entity, its share of 11.43% in PM training ismost enviable by comparable industry standards. It is reassuring to know that the HRmanagers consider international accreditation to be of value. But the managers may not befully aware of the benefits of international accreditation with respect to their organisation.Chapter 7 presents the results of the factor analysis. The analysis reveals that only 6 subjects(factors) included in the Management and Technology Area namely (i) OperationsManagement for Projects, (ii) Planning/ Scheduling/ Monitoring and Control Techniques, (iii)Statistical Methods for Project Analysis, (iv) Operations Research for Projects, (v) ProjectQuality Management, (vi) Health Safety and Environment in Projects account for the highestproportion of the subjects (factors) that are absolutely essential to be included in PM curricula(i.e. 74%). The correlation analysis carried out earlier helped establish that Operation9
  10. 10. management and Operations Research, Quality Management and HSE are stronglycorrelated. Therefore in effect, only four subject areas, suitably combined account for thecourses that are ‘absolutely essential’.Alternatively this means that the balance 25 subjects account for only a small fraction of thetotal PM curricula (26%). Therefore for the sake of simplification, this can be interpreted tomean that the top six subjects (four combined) that emerge from the analysis of academicinstitutions, are considered most crucial for inclusion in PM curriculum by the academics.Similar results are found in other subject areas also.An intriguing fact is that only a limited number of subjects (factors) continue to describe thewhole scope of PM curricula amongst academics in institutions. This could be attributed toIndian institutions being in the early development stages of PM. It may also imply that exceptin the well recognized Management and Technology Area, in which the above subjects havebeen grouped, other subject Areas (and individual subjects contained therein) such asBehavioural Sciences and IT, are not yet considered pivotal to PM education in the Indiantechnical and management education system. Viewed with the actual ratings awarded by therespondents to the Strategy, Economics and Finance Area, it shows that almost the wholesample has rated subjects in this Area as ‘Extremely Important’ and ‘Very Important’.Multiple regression analysis suggests that the three types of institutions wherein PMeducation is essential are Technical, Management, and Planning & Design. The remainingtwo namely architectural institutions and infrastructure management institutions were notexplained by the available data and may require some other data. Generally Architecturalinstitutions, barring a few exceptions, are not known to emphasize PM in their curriculum.Similarly there is probably lack of critical mass of institutions in infrastructure managementcapable of providing full fledged, comprehensive curriculum with enough emphasis on PM.The infrastructure related to library, availability of course material, classrooms and qualifiedfaculty are found to be important variables in imparting PM education although these factorsalone are not enough. This means that some other factors are required to explain therelationship of PM education and the institutes’ infrastructure. Majority of the institutionswere AICTE, university affiliated and accredited institutions. They are bound by thestructured processes of approval which may take protracted periods of time from governmentagencies in the form of receiving sanctions to introduce courses. Therefore the type of the10
  11. 11. infrastructure currently prevailing is more dictated by the regulatory requirements rather thanthe targeted requirements of PM education.Further multiple regression analysis suggests that two other factors namely introduction ofPM courses and effect on employability are also having some impact on the rating of PMeducation in India. Thus the type of institutions, the availability of infrastructure,management support in introduction of PM courses and employability of graduates emerge assignificant factors impacting the PM education in India.In summary, we find that there is a supply gap in capacity for PM training in the country. Thecauses can be attributed to the disinclination of technical and business academic institutionsto introduce and attract students exclusively in the area of PM. Only a handful of eliteinstitutions in India appear to have taken concerted steps in this direction. Executivesworking in project based companies enter with little or no prior orientation of projectrequirements that are special to project environments. Thus training them to be ‘projectready’ is an imperative for project based organisations. HR managers are charged with theresponsibility of designing training modules that would bring direct gains to the project andcompanies. Currently the options to choose experts are relatively less and therefore thetraining costs are high. Only limited cohorts of ‘project ready’ personnel available adverselyaffect the ability of the organisations to deliver consistently on projects. This affects theprojects industry as a whole and ultimately the national economy.Chapter 8 concludes the study by identifying the barriers to the growth of PM education. Themain barriers are; i) the lack of awareness amongst managements of technical and businessmanagement institutions about the importance and relevance of teaching PM, ii) lack ofsystematic curriculum development with a focussed view to develop PM competencies, iii)low interest in researching PM related subjects amongst faculty, iv) lack of trainedinstructors, v) long winding procedures for regulatory approvals for introducing approvingPM courses, vi) provision of qualified faculty and infrastructure and vii) the costs of trainingthat have to be borne by organisations.Finally we make some recommendations to ensure a more sustained growth of PM educationin India. Concerted efforts in the area of curriculum development, research, creation ofawareness regarding the application of PM techniques to the project business arerecommended, even resorting to mass media support. Sustained advocacy at all levels ofgovernment is also strongly recommended. In conclusion we propose some Model Curricula11
  12. 12. for PM education and training in technical and business management institutions as well asfor executives in project based organisations.CONTENTSSr. No. TOPIC Page No.A Acknowledgements 2B Executive Summary 3Chapter 1 - Introduction1.1 The Government Imperative 161.2 Key Questions raised in the Study 191.3 The Private Sector Imperative in PM 201.4 Key India Level Statistics Of Project Announcements By IndianCorporations211.5 Initiatives of Indian Government and Industry, in thePromulgation of PM Education2312
  13. 13. Chapter 2 - Literature Review of Project Management education on a global scale2.1 Introduction 252.2 PM Education in America and Europe 272.3 PM In Academia – A Global Snapshot 282.3.1 PM in other European Countries 282.4 Indian PM Growth 292.4.1 Specific Cases in India 31a) Indian Institutes of Management, MBA Institutions,Engineering Colleges31b) National Institute of Construction Management and Research 32c) Symbiosis Institute of Operations Management 32d) National Institute of Technology and Industrial Engineering 322.5 PM in Research 332.5.1 PM Research in India 352.6 PM in Industry 362.6.1 Training and Development Expenditure in Indian ProjectsIndustry – A Bird’s Eye View372.7 India and China: Comparison of PM Education 40Chapter 3 - Research Design3.1 Basic Approach to the Study 423.2 Objectives of the Study 423.3 Scope of the Study 433.4 Hypotheses 433.5 Methodology 443.6 Academic Institutions 45a) Sources of Data 45b) Data Collection Instrument - Schedules (Questionnaires) 45c) Data Collection Method - Direct Interview Method 45d) Sampling Procedure 46d.1) Sampling Area 46d.2) Sample Size 46d.3) Sample Unit 46d.4) Sampling Technique 46e) Statistical Tools and Techniques 46f) Analytical Software 46g) Multiple Regression Model 473.7 Practicing Executives of Project Based Companies 48a) Sources of Data 48b) Data Collection Method – Indirect Method 48c) Data Collection Instrument 48d) Sampling Procedure 48d.1) Sampling Area 49d.2) Sample Size 49d.3) Sample Unit 49e) Statistical Tools and Techniques 49f) Analytical Software 493.8 Human Resource Managers of Project- Based Companies 49a) Sources of Data 4913
  14. 14. b) Data Collection Method 49c) Data Collection Instrument 50d) Sampling Procedure 50d.1) Sampling Area 50d.2) Sample Size 50d.3) Sample Unit 50e) Statistical Tools and Techniques 50f) Analytical Software 50Chapter 4 - Data Analysis of Survey of Technical and Business Institutions in India4.1 Introduction 524.2 PART I : Respondent’s Particulars And Details 534.3 PART II: General Opinion On Existing State Of PM EducationIn India554.4 Part III: Curriculum Development 614.5 PART IV – Infrastructure, Management Support, RegulatoryFactors And Current Status Of PM Research In Institute74Chapter 5 - Data Analysis Of Survey Of Working Executives Employed In ProjectBased Companies In India5.1 Introduction 915.2 PART I – A & B : Respondents’ Particulars And Project Details 935.2.1 PART I – A 935.2.2 PART I – B 955.3 Part II: Project Management Curricula 96A Management and Technology Area 96B Behavioural Sciences Area 98C Information Technology Area 98D Sector Specific Area 995.4 PART III: Changes And Work Performance After CompletionOf PM Programme1005.5 PART IV: Current Position Of Project Management In India 103Chapter 6 - Data Analysis of Survey of Human Resource Managers employed inProject-based Companies in India6.1 Introduction 1086.2 PART I : Respondents’ Particulars 1096.3 PART II: Dimensions Of Project Management Training Design 111Chapter 7 – Interpretations Of Data Analysis And Findings Of PMI Survey7.1 Introduction 1227.1.2 Commentary on the Extent and Depth of PM Education andResearch in India1237.2 Institutional Data Analysis and Inferences 1257.2.1 Results and Interpretation of Factor Analysis for Subjects ratedby Faculty from Academic Institutions1287.3 Multiple Regression Analyses of the Factors AffectingIntroduction of PM course1327.3.1 Findings from Multiple Regression Analysis of Significance ofPM Education in Technical/ Business/ Specialised AcademicInstitutions1327.4 The Practising Executives Data Analysis and Inferences 13814
  15. 15. 7.5 Human Resource Managers’ Data Analysis And Interpretation 1447.6 Synthesis of Stakeholders of PM Education – AcademicInstitutions, Practising Executives and Industry1477.7 Limitations Of the Research 1487.8 Scope For Future Research 148Chapter 8 - Conclusions and Recommendations8.1 Conclusions 1508.1.1 Barriers 1518.2 Recommendations 152BIBLIOGRAPHY 154ANNEXURES 159Annexure 1A List Of Respondents Participating In Institutional Survey 159B List Of Respondents Participating In Working ExecutivesSurvey164Annexure 2a (DEC - 2005) 168b (DEC - 2006) 169c (DEC - 2007) 170d (DEC - 2008) 171Annexure 3Questionnaire For Institutions 172Annexure 4Correlation Matrix Of Factors (Subjects) Contained InQuestionnaire For Academic Institutions (Part III A)187Annexure 5Questionnaire For Executives 190Annexure 6Questionnaire For Human Resource Managers 203Annexure 7Model Course Curriculum Designs In UndergraduateProgrammes Of Technical And Business Management Schools210Annexure 8Master Database File Of Primary Data 215CHAPTER 1INTRODUCTION1.1 The Government ImperativeThe promulgation of Project Management education in India has assumed great significanceconsidering the position in which India finds herself in this millennium. From the pursuit ofeconomic liberalization, aligning with the global economy, and embarking on ambitiousprojects with the help of privatisation, India is committed to fulfil the economic growth15
  16. 16. targets, fast and furiously. This is seen in the launch of mega and major projects by theCentral Government departments to cover the historical gap between what is available andwhat is required. In addition, the State Governments and Local Government agencies too,have been given project targets in order to improve infrastructure and aid development undervarious programmes such as Bharat Nirman Scheme. The estimated investment plan forinfrastructure development stands at $ 514 billion during the Eleventh Plan. This is more thantwice that of $ 217.86 billion allocated during the Tenth Plan. In the Twelfth Five Year Plan(2012- 2017), it is slated to rise to $ One Trillion (www. planningcommission.nic.in/plans).The country faces a challenge in bridging the existing infrastructure gaps, imperative tomaintain the economic growth rate of around 9%. India plans to increase the gross capitalformation in infrastructure from 5% of its Gross Domestic Product (GDP) to 9% by 2012, inorder to be on par with, more advanced economies in Asia1According to the reports of McKinsey Consulting Group (Reports 2001, 2010), it is theconsistent lack of responsiveness of Indian government, industry as well as the people tosolve the infrastructure bottlenecks that are retarding India’s momentum. According to the2010 report, due to the global financial crisis, and the funds that could have entered thecountry, being withdrawn, India currently faces a deficit of between $150 billion and $190billion in infrastructure funding. The government is looking at 25% of the infrastructureinvestment to be funded through Public Private Partnerships (PPPs). Out of the total targetthat has been set for investment in infrastructure ($514 billion), $430 billion is earmarkedonly for the transport and utilities sector. In the Twelfth Five Year Plan, the investmentthrough Public Private Participation (PPP) route is sought to be raised to the extent of up to50% of the Plan outlay (ET, 2010).Sustained pursuit of the twin objectives of the government, namely, (i) ensuring a steadyGDP growth rate of around 9% and (ii) elevating the major section of India’s populace frompoverty, malnutrition, illiteracy and unemployment, remains the greatest challenge foradministrators and stakeholders alike. In any country, the government itself is a huge sponsorand initiator of projects, initiating mega and major development projects in various sectors.Because of this, the government too assumes the role of a key stakeholder (owner) andtherefore is affected by any project related problems and issues. Table 1 indicates the numberof mega and major projects under the aegis of the Central Government in the year 20091(www. planningcommission.nic.in/plans)16
  17. 17. alone. There were 941 such projects and involved a total outlay of Rs. 6,07,188 crores(MOSPI, 2009). The table indicates that majority of the projects (466) are in the delayedmode with 195 projects not having any clear indicated Date of Completion (DOC).Table 1 Sector –Wise Implementation Status of Central GovernmentProjects 2009 (Status as on 30.06.2009)(Number of Projects)SectorAhead On Schedule Delaved Without DOCOriginalLatestOriginalLatestOriginalLatestOriginal LatestATOMIC ENERGY 0 0 2 2 3 3 0 0CIVIL AVIATION 1 1 4 4 22 22 0 4COAL 7 8 49 52 55 51 5 18I & B 0 0 0 0 0 0 1 1MINES 0 0 0 0 1 1 0 0STEEL 0 0 11 11 37 37 0 6PETROLEUM 2 2 24 24 33 33 0 1POWER 0 0 50 51 33 32 3 2HEALTH & FW 0 0 0 0 0 0 0 1RAILWAYS 1 1 6 24 67 65 131 122ROAD TRANSPORT &HIGHWAYS 2 2 26 26 159 159 0 9SHIPPING & PORTS 3 3 10 11 24 23 3 15TELECOMMUNICATIONS 0 0 6 6 27 27 0 11URBAN DEVELOPMENT 0 1 10 9 12 12 3 5WATER RESOURCES 0 0 0 0 1 1 0 0INFORMATION TECHNOLOGY 0 0 2 2 0 0 0 0Total 16 18 200 222 474 466 146 195Source: Quarterly Project Implementation Status, MOSPI, Government of IndiaThe Table 2 shows the most important causes for delay of projects as listed by MOSPI.Table 2 Causes of Delay of ProjectsSr.No. Factors No. of Projects1 Fund Constraints 31 (28 projects are of Railways, 1 Coal and 2 projects in Power sectors)2 Land AcquisitionProblems20 (12 Railways, 6 Coal, 1 Petroleum and 1 in Power sectors)3Slow Progress inWorks other thanCivil Works78 (63 in Railways, 6 Petroleum, 5 Power, 3 Coal and 1 in Powersectors)4 Law and Order 11 (5 in Railways, 4 Power and 2 in Coal sector)5 Delay in Supplyof Equipment5 (2 Petroleum, 2 Power and 1 in Railway sectors)17
  18. 18. 6 Environmentalclearance1 (Railways sector)7 Others47 (these include the problems of technology selection, award ofcontract, delay in civil work, geo mining, court cases, inadequateinfrastructure, bad weather and Govt. clearance)Source: Quarterly Project Implementation Status, MOSPI, Government of IndiaIn addition, the same report attributes the causes of delay to the following1. Lack of supporting infrastructure facilities2. Delay in finalisation of detailed engineering plans, release of drawings and delay inavailability of fronts3. Changes in scope/delay in finalisation of the scope4. Industrial relations and law and order problems5. Delay and uncertainty in feedstock supply6. Pre commissioning teething troubles7. Technology problems8. Geological surprisesThe severity of the lack of project management expertise is now being felt at the highest levelof governance in India. The Ministry of Statistics and Programme Implementation ( MOSPI )has felt a strong need to introduce a full time MBA type programme in Project Management.The National Institute of Construction Management and Research (NICMAR), has had thelongest running pioneering Post Graduate Programme in Advanced ConstructionManagement (focussing on construction project management) in the country. This wasfollowed by another pioneering two year full time Post Graduate Programme in ProjectEngineering and Management for all types of mega and major projects and theirmanagement. The Institute has further innovated and introduced another two year PostGraduate Programme, the first of its kind in the country, in the field of Real Estate and UrbanInfrastructure Management. Another programme, the two year full time Post GraduateProgramme in Infrastructure Finance, Development and Management is due to be launchedfrom the next academic session in 2011. This programme too devotes substantial attention tomanaging projects in these sectors.1.2 Key Questions Raised In The Study18
  19. 19. In view of the burning intensity of this problem, the key questions that are sought to beinvestigated and reported in this study relate to the factors that are affecting the growth of PMeducation and training in our country. The study specifically aims to explore issues from theperspectives of academic institutions, industry users and industry sponsors of executivetraining and development. For instance, we would like to know :• At present what is the role that educational institutions are playing in the technical andbusiness education domains to create capacity?• How is the industry overcoming the problem of skills and competency deficiency in PM?• To what extent the recipients of PM training and education find it useful and are able toapply their skills and knowledge in the real world of managing and executing projects?• Further, do we have adequate human resources to undertake and see a series of megaprojects through? Is the PM human resource base expanding?• Is research in PM adequate and of the kind that would help the industry? Is it solutionsdriven? Is it helping the creation of theoretical precepts and is it integrative in its nature?Globally the demand for Project Management professionals is increasing and as a result thereis a growing interest as well as availability of PM education at all levels i.e. undergraduate,postgraduate, advanced / doctoral level programmes with developed regions like NorthAmerica, Europe, Australia and some advanced nations in Asia leading the race (Turner &Heumann, 2001). The maximum growth in project management education in the near futureis foreseen in the world’s two most significant countries, namely India and China, with theobjectives of both countries being the same, i.e. to alleviate poverty through economicdevelopment. More discussion on China’s efforts in spreading PM education is contained inthe next chapter of the report.1.3 The Private Sector Imperative In PMA hypothesis may be offered, that the Private Sector has a better track record in building PMcompetency as against Public Sector enterprises, as the former are often contractors to manygovernmental projects, face intense competitive pressure arising out of tight biddingframeworks like ‘lowest bid’ acceptance criteria, etc. and therefore would require use oflatest and best techniques of managing and completing projects on time and within the19
  20. 20. stipulated costs and quality parameters, to ensure better project returns. Also of importance isthe industry’s desire to be awarded projects that would fetch them high value and highvisibility while conceptualising and executing complex projects. Inevitably this would beachieved only under conditions wherein the companies have developed prior capabilities inbidding and executing such complex projects. Therefore it was felt relevant to study theextent of the effort taken by these industries in preparing the personnel and staff throughtraining to meet the above challenges and narrow the existing competency gaps.The economic growth model adopted by the Indian government involves greater use ofPublic Private Participation in infrastructure and other development projects, which hasresulted in Build, Operate and Transfer (BOT) model and other variants such as Build, Own,Operate, Transfer, (BOOT); Build, Own, Lease, Transfer (BOLT); or Build, Own, Operateand Maintain (BOOM) being increasingly adopted to award projects to companies. Suchcompanies or ‘concessionaires’ therefore find that adoption of superior project managementtechniques is fundamental to their success. Any delays in project completion could result indelayed revenue realisation for the companies, resulting in future losses and hamper theirbusiness opportunities. According to the Planning Commission’s targets, public privateinfrastructure projects are being made monitorable and achievement oriented, especially forsectors like roads, power and ports. Thus the private sector views project management skillsas a necessity.1.4 Key India Level Statistics Of Project Announcements By Indian CorporationsTraditional industries credited with PM practices include: construction, manufacturing, powerand heavy engineering. Added to these are the IT/ITES/ Telecom companies and servicesector companies. Besides a significant number of large social development oriented schemesof Government such as in health, nutrition, family welfare, rural employment, etc. areimplemented through Project / Programme mode. In order to find out the overall “projects”activity of Indian companies in the public and private sector, the CMIE database was used.The Centre for Monitoring of Indian Economy – Capex Data, (CMIE- Capex) is an authenticinformation database which catalogues industry information of Indian companies obtainedlargely through companies’ financial reporting. In the basic search conducted to list the totalnumber of projects announced by Indian companies in the year 2010, it was revealed that atotal of 16,145, projects had been listed in different stages of development, viz. 1)20
  21. 21. announcement stage, 2) under implementation, or 3) stalled for some reason. Data for 385projects was ‘Not Available’, though the project name and company were listed. ReferExhibit 1.Exhibit 1Project Announcements/Under Implementation/EmploymentYear 2010Category ProjectAnnouncementsProjects UnderImplementationProjectsImplementationStalledTotalProjectsEmploymentConstruction 472 1372 29 1873 7,695,272Power 1050 827 43 1920 37,390Manufacturing 1844 1561 121 3526 1,077,380Mining 222 350 16 588 53,691Services 3612 4112 129 7853 7,306,096Total 7200 8222 338 15760* 1,61, 69,829CMIE Capex Database, 2010* Data for 385 projects appeared ‘Not Available’ in the databaseExhibit 1 offers a quick view of the magnitude of the project industry in India as whole. Morethan one hundred and sixty million persons are currently employed in this sector. Though thedata is by no means complete, due to the limitations faced in capturing the full data, it servesas a good indicator of the current potential of the projects industry.Project Announcements were to the tune of 7200 in the year 2010 alone, with the mostprojects being announced in the Services sector. This sector consists of Business ProcessOutsourcing (BPO) projects, shipyard expansion, hotel and tourism, outlets, IT parks, SEZ,malls, etc. Project Announcements in manufacturing sector, comprising electrical machinery,iron products, plants installation, exploration, diesel engines etc. were to the tune of 1844. Incase of services, 3612 projects have been announced in the year 2010. The total projects inServices sector account for more than 50% of the projects announced. The second highestemployment is seen in this sector with 73, 06, 096 persons being employed in Service sector21
  22. 22. projects. Power projects consist of activities in the area of thermal power projects,transmission lines, hydro electric, gas based, coal based, and renewable power projects.Announcements in the year 2010 were as high as 1050. Construction projects includedtownships, residential, industrial parks, SEZs construction, processing and logistics;commercial, etc. Very few projects in construction were in the ‘stalled’ category. Theemployment generated in this sector is the highest with almost 76, 95,272 persons employed.The majority of the projects by value were in the range of less than Rupees 1000 crores,numbering 9454, followed by project value in the range of Rs. 1001- 2000 crores. ReferExhibit Nos. 2 a and 2 b, in which the number of projects and their sector wise value (at cost)are shown in the select sectors of Construction, Power, Manufacturing, Mining and Services.The figures provide an idea of the enormous importance of these sectors to the nationaleconomy.The data in both the Exhibits 2a and 2b suggests that over one hundred trillion rupeesremains invested in 11,187 of the 16145 projects for the year 2010, mentioned in the CMIECapex Database. Though the data is only indicative in nature, it is presented with a view todraw attention to the significance of this sector and its sensitivity to the investment andeconomic growth of the country. Any delays, due to time or cost would only result in directlosses to the national exchequer as well as retard planned economic growth.Exhibit 2 ANumber Of Projects Sector-Wise By CostYear 2010, ( Crore)Project Cost inCroresConstruction Power Manufacturing Mining Services TotalLess than 1000 713 805 2363 291 5282 94541001 to 2000 74 91 133 27 272 5972001 to 3000 28 97 60 9 87 2813001 to 4000 14 84 27 8 39 1724001 to 5000 8 84 16 5 38 151above 5001 45 251 125 15 96 532NA* 992 523 1059 237 2147 4958Total 1874 1935 3783 592 7961 16145G.T. 16, 145CMIE Capex Database, 2010*Data for 4958 projects appeared as ‘Not Available’22
  23. 23. 1.5 Initiatives Of Indian Government And Industry, In The Promotion Of PMEducationA series of initiatives to promote PM education have been undertaken by the government aswell as industry, in the form of individual company led initiatives, and/or industryassociations such as Project Management Institute®, (PMI®), International ProjectManagement Association®(IPMA®) and the Federation of Indian Chambers of Commerceand Industry (FICCI). All the entities mentioned are actively involved with key governmentdepartments such as the Ministry of Statistics and Programme Implementation, Governmentof India (MOSPI, GoI), the Planning Commission of India, etc. to expedite the efforts intraining and education of PM practices. Recent initiatives by the government include theexpressed need by MOSPI to organise certification level programmes for persons working atlower and middle levels within the project industry, as well as full time advanced projectmanagement courses in leading institutions. The Planning Commission has made projecttargets ‘monitorable’ to various ministries and departments of the government, which arelinked to the performance and future fund disbursements to the latter. Chapter 2, covers thisis greater detail.In order to accurately gauge the current and future efforts made by stakeholders in theprojects industry, a need was felt to support the secondary data sources with primary studiescovering academic institutions, industry and the recipients of PM education. In this chapter,the government’s desire and seriousness to play an active role in ensuring the contribution ofthe project sector in expediting national development goals was sought to be described. The23Exhibit 2 bSector – wise Project by Value (at cost)Year 2010,Rs ‘000 crsCategory Construction Power Manufacturing Mining Services Total< Rs.1000crs1,91,915 1,63,251 3,93,963 61,643 7,53,092 15,63,863Rs.1001 toRs. 2000 crs1,19,111 1,33,556 2,03,261 38,907 4,03,785 8,98,620Rs.2001 toRs3000 crs71,163 2,65,437.30 1,52,872 22,514 2,20,427 7,32,413Rs.3001 toRs. 4000 crs50,916 2,74,151.74 98,531 27,611 1,38,370 5,89,581Rs.4001 toRs.5000 crs38,100 3,88,757.60 73,399 21,708 1,78,508 7,00,472> Rs. 5001crs6,93,172 26,26,671 18,47,308 1,93,014 12,28,236 65,88,402Total 11,64,378 38,51,825 27,69,334 3,65,397 29,22,418 1,10,73,351GrandTotal2,21,46,703
  24. 24. next chapter takes a closer view of the efforts made by Indian stakeholders and similarinitiatives in other countries as well.CHAPTER 2LITERATURE REVIEW OF PROJECT MANAGEMENT EDUCATIONON A GLOBAL SCALE2.1 IntroductionAn indicator of the maturity of any profession is the availability of quality academicprogrammes that provide the advantages of research backed teaching and learning. Thegreater the research, the better the replication and standardisation of the process of learningso that Knowledge, Skills and Attitude – the trinity of any learning are easily transferred tothe student in a systematic manner. This helps the recipient of training to perform and delivermuch faster on the job.With the rapid growth of ‘projectised’ and project led companies, organizations are found tobe replacing their traditional management structures, like the corporate divisional ordepartmental structures with those that are leaner and more objective oriented (Bergrenn and24
  25. 25. Soderlund, 2008). Earlier works based on a survey, documented the widespread growth ofproject management and its rising interest amongst the top managements of companies(Soderlund, 2004). From being a mere ‘add-on’ to a system engineer’s or civil engineer’srole, project management has grown as a deliberate choice of career, in many countries. Thisis reflected in the growth of the leading professional association of project management –Project Management Institute (PMI®), USA which had less than 15,000 members in 1993 haswell over 500,000 members in 2010 (AMA Handbook 2005, PMI, 2010). The AMA quotesthat this membership is growing at the rate of approximately 5000 per month indicating the‘mainstreaming’ of the project manager’s role in the industry. In formal bidding processesrelated to contractual services, client organizations call for certified project professionals,thus reaffirming project management’s growing importance as a discipline.Globally, apart from academic institutions, four major bodies are engaged in the provision ofstandardised instruction in project management namely PMI®in North America and othercountries, the Project Management Association in England (PMA), with over 9000 certifiedproject managers), the International Project Management Association (IPMA) representingover 24 countries in Europe and over 5000 certified project managers and lastly theAustralian Institute of Project Management with over 1000 certified project managers (AMAHandbook, 2005). In 2010, according to the PMI®, there were over 500,000 qualified ProjectManagement Professionals®(PMPs®), (PMI, 2010) worldwide. In 2004, a large scale surveyof around 1000 Registered Education Providers (REPs) of PMI®worldwide revealed that in2004 alone, over 500,000 individuals participated in some form of PM training or educationoffered by the REPs and other educational institutions. The same report asserted that this wasslated to increase in the coming years.The Figure 1 below depicts the share of Registered Education Providers of PMI®worldwidein the year 2005. As is seen, the Asia/Pacific region accounts for the second highest share ofRegistered Education Providers of PMI®next only to North America,. Also seen is the hugegap in the proportion of REPs®between the two regions.Figure 1: Worldwide R.E.P. Distribution (2005)25
  26. 26. Source: Price et al, 2006However there has been huge growth in degree programmes being offered in this area, from amere 10 in 1994 to over 185 in 2006 in the USA and Europe. Most of these programmes aretailored to suit the IT industry (73.1%) as compared to sectors like Financial, BusinessManagement, Construction, etc (Michael Price et al, 2004). There are over 65 degreeprogrammes in more than 25 academic institutions currently accredited by the GlobalAccreditation Centre for Project Management Programmes of the PMI®in North America.Several other programmes are at various stages of the accreditation process (PMI®, 2010).In contrast in India, one finds a huge demand for training in PM primarily for InformationTechnology as well as in Construction Industry. However the number of listed REP®s inIndia is merely 70 in all2. In China, PM education is more widespread in sectors likeconstruction, oil and gas, power and so on. The financial services sector in both countries isyet to fully utilise the importance of PM training. The status of PM education and skillbuilding in these countries is further discussed later in this section.The growth of PM education and training in Asia and Pacific regions suggests that it isspreading in newer geographies; it has also been spreading into newer areas of application. Infact PMI®’s own publication titled Project Management Circa 2025, looks at newerapplications of PM in such emerging and diversified fields like nanotechnology and futureenergy, new frontiers like earth sciences, monitoring of planet, extreme weather response andclimate control. It also gives an insight into the emerging countries where PM will take rootssuch as in India, Spain, China, Asia Pacific and Arabian regions3.2.2 PM Education In America And Europe2(https://ccrs.pmi.org/Search.aspx)3(www.pmi.org/PM2025)26
  27. 27. Scientific PM education has its earliest origins in the well known discipline of OperationsManagement. Therefore one can say that the bases of early development can be found in theworks of Frederick Taylor and Henry Gantt, (1915 - 40). Since the 1950s, the advances inPM as an organised discipline within management took root in these regions. PM as adiscipline has grown from these roots and is now well entrenched in the business andresearch realms worldwide. The extent and depth of PM education is witnessed more in thesecontinents than in other parts of the world. In these regions, PM education has attained suchrecognition, as to be made mandatory, and a prerequisite in the procurement and managementof large scale and complex projects either within the country or internationally. Most of theliterature records the systematic development of this discipline as experienced in theseadvanced regions.In case of developing countries and emerging economies, especially in India and China, useof formal PM techniques to acquire and execute projects in an organised manner, appears tohave taken roots only over the last one and a half decade. A survey of the relevant literaturein international journals focussing on PM reveals relatively less work emanating fromcountries like India and efforts to initiate PM programmes in academics and research.2.3 PM In Academia – A Global SnapshotThe introduction of project management courses in the universities and business schools inNorth America, Europe and leading Asian countries is on the rise. In 1993, it is documentedthat there were only 5 universities that offered degree programmes in Project Management inNorth America. Ten years later, there were 33 such programmes in USA and Canada alone.In their research, Professors Thomas Mengel, Janice Thomas (2008), Bill Zwerman (2004),Kent Crawford (2006), Dinsmore and Cabanis – Brewin (2006) have tried to find answers tothe question of systematizing the study of project management to offer it as a preferred careeroption. The ultimate aim of the Project Management Programmes is to induce three majorcompetencies in the student – project management skills, leadership and technical skills.According to Turner and Huemann (2001), a study of mature project management societies,such as UK, Australia, New Zealand and Ireland, revealed that around 10% of the universitiesoffered Masters’ degrees in Project Management. PM education began ‘top down’ in case ofUnited Kingdom, through existing Masters’ degree or Doctoral programmes in concerneddisciplines. For instance, it is observed that in the United Kingdom, the Master’s Programme27
  28. 28. in Science or Business Administration exists with PM as a speciality. It also exists as aspecialist degree like in Construction Project Management. Also it was observed that in thecase of degree courses in Information Technology, no course by the name ‘InformationSystems Project Management’ existed, even though PM subjects are covered within coursessuch as Information Systems Management. Later educational programmes emerged focusingon Project Management. Further, these ‘percolated’ down from higher level education intothe secondary and even the primary level education.2.3.1 PM In Other European CountriesIn case of other countries in Europe, Turner and Huemann (2001) observe that in Austria,Switzerland and Germany, different ways are being adopted to reach a common goal ofmaking all these into ‘project oriented societies’. In Austria, PM education began first withtaught masters’ degrees, either as programmes specialising in project management, or withproject management as an essential component of wider programmes. From there, it spreadupwards and downwards to other levels. Austria has also embarked upon a project topopularise the use of PM in industries and then take it to the municipalities, students andfamilies under the ‘Programme 1 Austria’ to raise awareness of project management as aprofession. Austria and Germany also offer doctoral level programmes in PM. Certificatesand Diplomas are offered by professional or other bodies. Vocational qualifications such as inthe UK are not available in these countries. Switzerland has set a goal of becoming a qualitycompetence centre in PM.2.4 Indian PM GrowthIn India, there does not appear to be any clear evidence of studies covering the growth of PMeducation and research, in the public domain. Unlike its European and Americancounterparts, there appears to be less focussed attention in this area of study as compared toOperations Management wherein Indian academic programmes and research are in anadvanced state. This study attempts to find out the current state of this emerging field inIndia.The scope is limited to the technical and management education institutions. Given below isthe state wise table, listing the number of approved institutions offering businessengineering/administration/management courses in India. The list is that of the All India28
  29. 29. Council of Technical Education (AICTE) which is an apex government body formed toregulate technical, professional and management education providers. A total of 3904 AICTEapproved institutions offer afore mentioned degrees in India. Apart from this, there are manyCentral, State and ‘Deemed to be Universities’ as well as autonomous ones that offer degrees,diplomas and certificates in management and technical education. (Refer Table No. 3). TableNo. 4 describes the Number of Proposals received for the establishment of New TechnicalInstitutes for the Academic year 2009-2010, upto 31.12.200The data in Tables 3 & 4, point towards a rapid growth of technical and business schools inIndia. With the increase in such institutions, PM education could be suitably emphasized tosecure a better share of coverage with a rapid rate of growth. Almost all technical schoolsinclude within their syllabi, a subject matter that covers PERT/CPM techniques under avariety of nomenclatures. In case of business schools, these techniques are included under thetypical heading of Operations Management as a compulsory base course, and also as aspecialisation in the second year under the same head with more advanced exposure to thesubject. One finds very few instances in the country wherein a course with the title “ProjectManagement” is included or is taught in full time programmes of technical/businessinstitutions. A general search on the Google search engine titled ‘project management coursesin India’ showed up 12,057 results only for India4. A more detailed description obtained fromthe website of important and specific cases covering institutes such as IIMs, NITIE andSIOM is covered in the section below.Table 3 : Statewise List Of Institutions Offering Management DegreesAs On 31/08/2008Sr. No. States/UTs Engg & Tech. MBA PGDM1 Madhya Pradesh 161 56 72 Chhatisgarh 41 7 23 Gujarat 55 51 114 Mizoram 1 0 05 Sikkim 1 1 06 Orissa 68 29 157 West Bengal 71 27 28 Tripura 3 0 09 Meghalaya 1 0 010 Arunachal Pradesh 1 0 011 Andaman & Nicobar 0 0 012 Assam 7 5 113 Manipur 1 1 04(www.emagister.in, Site accessed on Aug, 2010)29
  30. 30. 14 Nagaland 1 0 015 Jharkhand 13 4 316 Bihar 15 11 117 Uttar Pradesh 241 125 8818 Uttaranchal 19 23 219 Chandigarh 5 0 120 Haryana 116 56 1021 Jammu & Kashmir 7 9 022 New Delhi 19 13 2423 Punjab 70 55 424 Rajasthan 81 49 1525 Himachal Pradesh 9 8 026 Andhra Pradesh 527 231 2427 Pondicherry 9 1 028 Tamil Nadu 352 154 429 Karnataka 157 109 1530 Kerala 94 37 731 Maharashtra 239 168 4832 Goa 3 1 133 Daman & Diu, Dadar,NH0 0 0Total 2388 1231 285Gr. Tot 3904Source: www.aicte.ernet.in/ApprovedInstitute.htmTable 4 : Number Of Proposals Received By AICTE To Establish New InstitutionsRegion State Engg. PGDM MBACentral Madhya Pradesh 50 16 63Chhattisgarh 10 2 7Gujarat 43 8 67East Orissa 53 10 24Assam 9 0 5Meghalaya 0 0 0Manipur 0 0 0Mizoram 0 0 0West Bengal 23 3 7Nagaland 0 0 0Jharkhand 2 3 1Sikkim 1 0 0Arunachal Pradesh 0 0 0Tripura 1 0 0Andaman &Nicobar1 0 0North Uttar Pradesh 83 84 130Uttranchal 13 3 14Bihar 12 2 3Chandigarh Chandigarh 0 0 1Delhi 1 3 2Haryana 38 11 36Himachal Pradesh 11 0 6J&K 0 0 0Punjab 16 1 30Rajasthan 49 12 6530
  31. 31. South Tamil Nadu 144 3 38Pondicherry 4 0 0Andhra Pradesh 176 31 178South West Karnataka 32 18 26Kerala 29 1 8West Maharashtra 85 37 123Goa 0 2 0Daman & Diu 0 0 0Total 886 250 834Grand Total 1970Source: www.aicte.ernet.in/ApprovedInstitute.htm2.4.1 Specific Cases in Indiaa) Indian Institutes of Management, MBA Institutions, Engineering CollegesPractically all the IIMs offer some elective courses either directly named “ProjectManagement” or some other titles dedicated to the coverage of important themes in projectmanagement. In general management oriented, Master’s in Business Administration (MBA)programmes, PM related subjects are included in almost all curricula of managementinstitutions, but do not always appear specifically in the form of full length courses. Usuallythe Operations Management courses, cover selective subject matter from the PM domain.Only specialist courses cover a wider gamut of PM subject content and emphasis, but theseare not commonly found in MBA programmes. Similarly almost all the courses covered intechnical colleges, especially those covering construction, engineering and informationtechnology include project management, within their ambit at introductory level, usually inthe form of a module.b) National Institute Of Construction Management And ResearchThe National Institute of Construction Management and Research (NICMAR), offers the PostGraduate Programmes in Advanced Construction Management and Real Estate and UrbanInfrastructure that have a host of dedicated subjects covering the PM domain; yet the term‘Project’ does not always appear distinctly in the nomenclature of the said programmes.However, the institute’s Post Graduate Programme in Project Engineering and Management,has clear descriptions of subjects in project domain as defined in the Project ManagementBody of Knowledge®(PMBOK®)5. This two year full time programme is arguably India’sonly course of its type, and combines subject matter from all the major domain areas i.e.5The PMBOK® includes 5 Process Groups and 12 Knowledge Areas that are covered in the domain of PM, PMI, 4thEdition 2008.31
  32. 32. General Management, Project Management, Behavioural Sciences, Engineering andTechnology and Information Technology.c) Symbiosis Institute of Operations ManagementIn case of Symbiosis Institute of Operations Management (SIOM), a specialist degree, theMasters in Business Administration in Operations Management (MBA OperationsManagement) is offered, which covers subjects such as Operations, Projects and ResourcePlanning6.d) National Institute of Technology and Industrial EngineeringThe National Institute of Technology and Industrial Engineering (NITIE), Mumbai, runs thePost Graduate Diploma in Industrial Engineering (PGDIE), Post Graduate Diploma inIndustrial Safety and Environmental Management (PGDISEM), Post Graduate Diploma inInformation Technology Management (PGDITM), and Post Graduate Diploma in IndustrialManagement (PGDIM)7. The PGDIE has such subjects that are of core importance toindustrial operations such as Operations Planning and Control, Project Management, WorkSystem Design, Operations Research, Systems Engineering, etc., in addition to other subjects.In India, as is observed in the United Kingdom, most of the post graduate managementcourses covering the PM domain are seen sans the ‘Project’ term included in the title of thecourse, though the curriculum adequately reflects to varying degrees the subject matterrelated to the same.The exception however, is noticed in the Post Graduate Programme in Project Engineeringand Management offered by NICMAR, wherein the entire ‘Project’ term is explicitly includedin the title of the programme, and provides the most comprehensive coverage of all therelevant knowledge domains.2.5 PM in ResearchProject Management (PM) has evolved since the sixties as an area of interest for researchersand academicians alike. Up until then, PM existed more in the realm of practice than as apursuit of systematic study and research. The early evolution of the discipline could beattributed to the works of Frederick Taylor and Henry Gantt (1900s – 1920s) which6(www.siom.in/mba_operations.aspx Site accessed as on August 2010)7(http://www.nitie.edu Site accessed as on August 2010)32
  33. 33. emphasised the organisation of work in such a way that would be amenable for scientificanalysis, measurement and improvement as well as its systematic planning and scheduling.In the decades following World War II, massive reconstruction work had to be undertaken inthe hugely affected areas of Europe and Japan. Simultaneously the newly independentcountries especially in Asia, began the path of economic development. In this, businesses andorganizations saw great opportunity to undertake projects which were complex, unique andvery large in scope. The growing use of energy, fed by growing economies everywhere, wason the rise, fuelling strong demand for petroleum products, natural gas, and electric power.The need for production, processing, and transportation facilities increased dramatically. Newprojects began getting bigger and more venturesome. This was also the time for nations toprove their prowess over others by launching space flights, submarines, constructing high risebuildings, building dams and laying high altitude rail lines and roads. Obviously the mainstayof all such ventures was the proper deployment of technology, manpower and resources in away that the financial resources committed by the governments could derive optimumleverage in the face of given constraints. ‘Managing by Projects’ became a term that gainedprominence at this time. With the protracted success of PM as a useful discipline inimplementing projects, there was interest amongst researchers to study projects and theprocesses adopted that made some projects successful while others failed to add to the returnon investment (Thomas and Mullaly, 2008). From the early decades of the twentieth century,the private sector had begun the widespread use of sophisticated means of deployment ofresources to obtain high levels of productivity in their markets. Thus PM emerged and wasdeveloped as a sub discipline of industrial engineering and operations management(Crawford et al, 2006).In the 1960s, the formation of Project Management Institute®(PMI®), in USA, InternationalProject Management Association (IPMA) in Europe and Australian Institute of ProjectManagement (established in 1976), gave further impetus to the study and practice of PM.These associations collaborated with research scholars and launched publications dedicated tothe theory and practice of PM. It was in the 1960s that researchers commenced a systematicstudy of how projects are conceived and managed and an attempt began to be made toorganise the practice as a discipline. Empirical studies commenced either as research pursuitsof doctoral students or commissioned research from these associations. Journals such as the‘International Journal of Project Management’ (IPMA), the ‘Project Management Journal®’33
  34. 34. (PMI®), the ‘Project Management Journal’ of Soviet Russian Project ManagementAssociation -SOVNET8, ‘Project Manager’ of Australian Institute of Project Management,are some examples of the rapid growth and dissemination of PM related literature. The fastdeveloping Asian countries have to ‘catch up’ in this area.Research in the area of PM has continued to evolve steadily over the past 30 decades. A studywas commissioned by the UK government in 2003, (UK’s Engineering and Physical SciencesResearch Council (EPSRC)) on “Rethinking Project Management”. It was a bid to extract PMresearch from mere theoretical paradigms and relate it to empirical practice. Thus the studysought to define a research agenda aimed at enriching and extending the subject of projectmanagement beyond its current conceptual foundations (Crawford et al, 2006). Theobjectives of this study were the following :1) To research Theory about practice of PM. This meant the effort towards thedevelopment of new models and theories which recognise and illuminate thecomplexity of the project and PM at all levels.2) To develop Theory for practice which meant understanding projects as a socialprocess, creation of value as the prime focus of its existence and a broaderconceptualisation of projects to include multi disciplinary approach, existing formultiple purposes instead of very narrow definitions of scope and purpose.3) To develop Theory in practice which meant the creation of training for PM in such away as not to restrict the practitioners to merely following detailed procedures andtechniques, as prescribed by PM methods and tools but to create ‘reflectivepractitioners’.Anbari and Young (2009) mention the work of Kloppenberg and Opfer whose researchidentified project management research published in articles, papers, dissertations, andgovernment research reports since 1960. They found that the emphasis has moved fromdevelopment and use of automated project management software and tools to riskmanagement, earned value management and then to human resource aspects. They alsodetermined that research focus moved from large government defence projects to commercialapplications in construction, information systems, and new product development. Theyconcluded that project management has extensive current opportunities and a bright future. In8(www.pmforum.org/library/journals.htm Site accessed as on August 2010)34
  35. 35. the same paper, Anbari and Young (2009) mention Bredillet’s conclusions that PM isbecoming increasingly linked with the implementation of organizational strategy.2.5.1 PM Research In IndiaThe quantum of research generated in India in relation to PM in its present state remainsminiscule. A study of the publications appearing in one of the most acclaimed journalshowcasing PM dedicated studies and literature i.e. the International Journal of ProjectManagement (IJPM®) was carried out. A search was run of the articles contained in thisjournal to develop an idea about the number of articles that included India-centric studies inthe period ranging from 1988 – 2010. The Graph 1 shows that the search yielded a total ofonly 101 results, in which India features either in the main title of the article or at times in itscontents too. (IJPM®, 1988-2010).Graph 1: Articles In IJPM Containing India – Centric ContentAn advanced search was done to arrive at the ‘affiliations’ data i.e. how many of theseresearch papers originated from India. The search has revealed that only 26 papers in thesame period (1988-2010) have been published by academics and occasionally by industrypractitioners in the journal from India.2.6 PM In IndustryA study conducted by the Centre for Business Practices of 53 practitioners at Toronto,Canada, revealed that in 62 - 91% of organizations, project management training resulted inmoderate to extreme improvement in employee knowledge and skills, on the jobperformance, and on schedule performance (Michael Price et al, 2004). Though the number istoo small to be an indicator of the larger universe, other statistics help to prove the point.35
  36. 36. The growth of PM training could be attributed to the formation of the PM associations thattook great initiative to replicate the formal learning and training of practitioners to enhance aswell as standardise project performance while ensuring favourable project outcomes(Soderlund, 2004). Through the formation of the Bodies of Knowledge along with theirassociated certification programmes, these associations have tried to propagate PM educationaround the world.However in the same paper, Soderland argues that the field of project management has anarrow focus and that though a number of teaching programmes have been developed,commensurate research in these areas is found wanting. Shenhar and Dvir (1996) continuedin the same vein maintaining that PM suffers due to a limited theoretical basis and lack ofconcepts. The duo has been credited with the ‘Diamond Framework’ for strategic projectmanagement. Other researchers have raised concerns regarding the level and quality ofresearch that has been produced in the area of PM. Bibliometric analyses of the type ofresearch articles and papers published in leading PM journals such as International Journal ofProject Management (IJPM), Project Management Journal (PMI®) and a host of conferencepresentations etc, lament the depth and variety of research in this area. A study by Crawfordet al (2006) revealed the trends in PM research and the emphasis of articles in the period1993-2003 and found that these are changing. According to her, project management isregularly facing new challenges as a field of study, as the tools, methods and approaches tomanagement that comprise the discipline are applied to different areas, for different ends, andin different cultures.Another decade wise bibliometric analysis following the one by Crawford (2006) by Turnerin 2010, revealed that in 1987, the most popular topics of research were engineering andconstruction, computer support, time, execution and control. Operation and maintenancefollowed next in importance. Topics such as life cycle cost, operation and maintenance werenot covered in the next two decades till 1997 or 2007. Interest in Construction Sector grew,with the number of papers covering the subject going up to 36% of the article contribution.The next most popular subjects in 1997 were in the area of computer support, timemanagement and risk management. Risk Management continued in importance in 2007, buta growing interest in partnerships and alliances; interest in human resource management anddeveloping individual competence gained ground by 2007. The interest in ProgramManagement appeared in 1997 and Portfolio Management in 2007. The study helps to36
  37. 37. understand that the scope of PM study and research interests has become more diverse andnow encompass many more areas that cover the field of enterprise management as a whole.2.6.1 Training And Development Expenditure In Indian Projects Industry – A Bird’sEye ViewThe American Society for Training has estimated training spend to be in the range of 2-2.5per cent of company turnover on employee skill development programmes (Rao, 2009).Some companies are known to spend up to five per cent of their turnover on training. In theprevious chapter, there was an attempt to arrive at the magnitude of project industry bypresenting a cross sectional data on the employment figures and amount of capital invested inthis industry in the year 2010 alone. It is necessary to understand the industry’s efforts incapacity building and development of human resources. Once again, CMIE Database –Annual Reports 2005-08 data was used to estimate the training and development budgets ofproject companies.In order to find out the current state of affairs regarding the allocation of funds by companiesto Training and Development (T&D) of its personnel, a full search of the annual reports ofproject based companies, i.e. construction, manufacturing, power generation, mining,petrochemicals, railways etc. was made. The objective was to obtain the budgetaryallocations made by project based companies in PM related training. An advanced search wasconducted to find out whether the companies had budgets earmarked for ‘training anddevelopment’ or ‘staff training’ expenses so as to draw some meaningful conclusions aboutthe size of training budgets of project based companies in India. From among the 16, 145companies, the search showed up only a total of 1761 companies who had a category named‘staff training’ in their annual financial statements. In the period between 2005- 2008, thoughthere was a minor increase in the number of companies who had some allocation under the‘Staff Training’ or ‘Training and Development’ (T & D) category, the overall record appearstoo minor to mention. In 2008, only around 59.42 crores were spent by 42 CMIE listedproject companies on T&D, a moderate improvement over the 2005 spend of 31.59 croresby 22 CMIE listed companies (Refer Annexure 2, a, b, c and d).This data is insufficient to arrive at any meaningful conclusion regarding the training budgetsof project based companies related to PM training. However the data helps to explain some ofthe difficulties in capturing T&D figures of project companies. A closer look at the abovetables reveals the anomalies wherein the typical industry leaders known for their training37
  38. 38. impetus like HCC Ltd., GMR, Simplex Ltd., Reliance Industries, Gammon, L&T, GVK, JPGroup, and so on, are consistently missing from the list. These companies have full fledgedtraining departments and are known to conduct training at almost all levels of project activity.To understand the reason behind the inadequate data, the issue was followed up with a fewhuman resources /training managers of these companies, and an industry association expertusing the personal discussion method (reference, pp 139). Most HR managers of projectcompanies corroborated the point that T & D expenses of project based companies are notreflected in annual reports but are added primarily in the following ways :1) Added to the general ‘staff welfare’ expenses and not listed separately under cleartraining and development head in the annual reports. Thus it is difficult to isolate theexact and actual budgets that are dedicated by project based companies to this activity(FICCI, HCC)2) Added to the overall project expenditure and billed within the ambit of Project relatedexpenses (Gammon, Simplex)3) Billed separately in case of in house training, as most of the resource persons used arefrom within the organisation (Gammon, Simplex, HCC)In software project companies also, the picture is similar. The most training intensivesoftware companies like Infosys and Wipro Technologies do not have ‘T&D’ or ‘StaffTraining’ as heads of expenses in their financial statements (Refer Box No.1).38
  39. 39. It is a well known fact that Training and Development investment contributes to an improvedquality of human resource which in turn contributes to customer satisfaction and improvedfinancial performance. Senior management’s role in providing sufficient resources includingtraining, leads to a high degree of customer satisfaction (Feuss et al, 2004).Despite the fact that the literature related to the use of PM by the heavy engineering industryin India is very sparse, some literature is available for the Information Technology sector.This again is not surprising, as it is strongly linked to international client requirements and isbased almost entirely upon acquisition and execution of software projects. However, as foundin the former case, no dedicated training budgets appear in the financial statements of thecompanies. Barring a few exceptions, it can be concluded that there is a lack of clear statisticsin the public domain with respect to the training and development of PM competencies of thepublic and private sector. Thus the need for a primary survey of HR managers was consideredessential.2.7 India and China: Comparison of PM EducationIndia and China are considered important as the economic development plans in these twocountries require the launch and successful completion of mega, major and a host of medium39Box No.1 INFOSYS TECHNOLOGIES LTD.A case in point is that of INFOSYS Ltd., the largest software development transnationalorganisation in the country. A section in the annual report, containing ‘Human ResourcesValuation’ attempts to list out the value addition made by the company’s human resource,in the form of a ratio (Annual Report, 2009).The human resource value addition ratio was pegged at 0.19 in 2009, an increase from theearlier year (2008) of 0.15 as value addition to the company. Also the return on humanvalue as a percentage of the cost of human resources (welfare/salaries/wages etc.) grewfrom 4.7% to 5.9%. A study of Infosys annual reports from 2005-09, reveals there is noseparate category or head under which training is listed.However the company is known as the most training intensive company in the industry.The company boasts of the best corporate training infrastructure in the country, with acapacity to train 13,500 software project personnel simultaneously, under one roof atBangalore, apart from huge exclusive training facilities in every campus of the company.Source: Infosys Annual Reports 2005-09
  40. 40. sized projects to cover the historical gap in Infrastructure. In case of India, the growth of PMeducation in the form of certifications is clearly rising, as very often project terms andconditions mandate certified professionals. According to PMI®, which is the most active andvigorous organisation in this arena, in the year 2006, there were around 6000 PMPs®in India .In the year 2010, this number has grown to 20,000 PMPs®in management and technicalfields (Source: PMI®, India Office).In the case of China, the effort to introduce PM was very systematic and ‘top-down’. It beganwith the World Bank giving a grant for training followed by the PMI®stepping in, in theearly 1990s. Other entities like IPMA®etc. followed suit. One such monumental instance ofthis initiative was that of the Ministry of Construction (MOC). One hundred and fortyeducational institutions or training centres had been accredited by MOC as projectmanagement training providers up to the end of 1995. During the same period, 321,983project managers took the training courses and 297,774 of them were certified by the MOC.By 2004, 500,000 project managers in total, were certified by the MOC. Other ministries inChina such as Nuclear, Defence, and Oil & Gas etc too have made mandatory, the PMcertification even to apply for a job with them (Lu et al, 2004).Another initiative was undertaken in 1998 by the State Administration of Foreign ExpertsAffairs along with the Project Management Institute®. The first REP®was established in1999, the BMMTEC International Education Group became the first subsidiary in Chinacertified by PMI providing Project Management Professionals®(PMP®) certification trainingand examination services as well as other training and education on project management. Bythe year 2004, there were 46 REPs in China, and about 70,000 people had participated inPMP®training, 4000 persons had been certified as PMPs®by the REPs®.PMI®has had a longer and stronger presence in China in promoting its project managementstandards and certifications with regional offices in both Beijing and Hong Kong. PMI®hadsigned a cooperative accord with the China National Steering Committee of ProfessionalEducation of Master of Engineering (SCME) on 7 March, 2008. The SCME oversees anational consortium of 103 higher education institutions that have been authorised by theChinese government to offer Master of Engineering degree programmes in projectmanagement. Due to the huge projects that China has launched in the construction,information technology, manufacturing and aeronautics industries, the government hascommitted significant resources to this effort. According to SCME, more than 14,00040
  41. 41. students are enrolled in dedicated engineering master’s degree programmes in projectmanagement in China (Pells, 2009).In this Chapter, it is seen that the growth of PM towards being recognised as a discipline hasbeen systematically driven through the efforts of the government, academic institutions andassociations in the developed nations like UK, USA, Germany, Australia and Canada. Inother nations such as Russia and China, a lot of structured emphasis has been given topopularise PM education. In India, modest efforts have begun in this direction. The nextchapter discusses the research design, scope and methodology adopted to collect primary datafrom the stakeholder respondents of PM education.CHAPTER 3RESEARCH DESIGN3.1 Basic Approach To The StudyThe study is mostly based on primary data and the basic purpose is to find out the factorsinhibiting the wide spread initiation of Project Management Education in Indian technical andbusiness academic institutions and to suggest ways to broaden its present scope in India. Thestudy is restricted to India, and includes only leading technical/ business educationalinstitutions. It seeks to find the factors that aid, and those that inhibit the acceptance ofproject management education in such academic institutions.It simultaneously includes active executives who at graduation, had not undergone PMeducation but have subsequently done so in the course of their employment. The aim is toobtain their views on the extent of the added benefits of PM training, in fast tracking their41
  42. 42. career growth. Lastly, we have covered a cross section of the select recruiters (HumanResource Managers) in our study sample and obtained their views on the efficacy of PMeducation in enhancing their executives’ ability to manage projects.3.2 Objectives Of The StudyThe main objectives of the research study are as follows:1. To find the awareness and current state of PM education in the country amongst thetechnical and business academic institutions, human resource managers and the recipientsof PM related training among active executives.2. To determine the nature and depth of PM education prevalent in technical andbusiness schools in India.3. To understand the degree of importance assigned to PM subjects for overallcompetency development and employability in PM.4. To investigate the subjects considered important by executives as essential to thepractice of PM.5. To determine the personal and professional gains obtained from undergoing formallytaught courses in PM by practicing executives.6. To find out factors considered most important in inhibiting the growth of PMeducation in India.7. To determine the extent of existing institutional support for the growth of PMteaching and research.8. To investigate the nature of training imparted to employees in PM competencies byhuman resource departments of project based companies.9. To find out which factors are the most important to companies for allocating time andbudgets for PM related training.10. To identify the type of training that is most preferred by the PM based companies.3.3 Scope Of The StudyThe study covers the whole of India except the North –East in case of academic institutions.Working executives are also from different parts of India across project based companies. Humanresource managers were drawn from construction, heavy engineering, IT and services sectors.3.4 Hypotheses42
  43. 43. We formulate the following hypotheses:1) H0 = Overall the current status of PM education in India is poor.H1 = Overall the current status of PM education in India is not poor.2) H0 = The necessity of PM education in engineering/technical schools in India is veryhigh.H1 = The necessity of PM education in engineering/technical schools in India is notvery high.3) H0 = The necessity of PM education in management schools in India is very high.H1 = The necessity of PM education in management schools in India is not very high.4) H0 = The necessity of PM education in architecture/planning schools in India is veryhigh.H1 = The necessity of PM education in architecture/planning schools in India is notvery high..5) H0 = There exist regional differences in the establishment of PM education in India.H1 = There exist no regional differences in the establishment of PM education inIndia.6) H0 =There exist faculty wise differences in the establishment of PM education inIndia.H1 = There exist no faculty wise differences in the establishment of PM education inIndia.7) H0 =There exists a difference in the establishment of PM education in India at theunder graduate and post graduate levels.H1 = There exists no difference in the establishment of PM education in India at theunder graduate and post graduate levels.43
  44. 44. 8) H0 = There exists a difference in the understanding of the strategic role of projects inthe overall business context, after undergoing PM related training.H1= There exists no difference in the understanding of the strategic role of projects inthe overall business context, after undergoing PM related training.9) H0 = There exists a difference in the overall understanding of the project context.H1 = There exists no difference in the overall understanding of the project context.10) H0 = There exists a difference in the level of remuneration, enhancement of workrelated responsibilities, and conflict resolution ability of individuals.H1 = There exists no difference in the level of remuneration, enhancement of workrelated responsibilities, and conflict resolution ability of individuals.11) H0 = Training in Project Management helps to build the employee’s competencies.H1 = Training in Project Management does not help to build the employee’scompetencies.12) H0 = PM training results in greater accrual of benefits as against costs incurred on thetraining.H1 = PM training results in lesser accrual of benefits as against costs incurred on thetraining.13) H0 =PM training offered by certified trainers is more efficacious than that of others.H1 = There is no difference in the efficacy of PM training offered by certified trainersand others.3.5 MethodologyThe research covers a comprehensive search of secondary literature available in the publicdomain to determine the efforts of all stakeholders in promoting PM education. This isfollowed by a primary research of academic institutions, HR managers and active executives44
  45. 45. of PM based companies. The analysis is based on statistical tools and techniques. We haverelied more on primary data, a widely accepted technique of analysis for the purpose of thestudy. The study is based on cross sectional data and therefore has made use of the multipleregression analysis technique to arrive at conclusions. The main purpose of this technique insome cases, is to find out the factors necessary to promote the wide spread initiation ofProject Management (PM) Education in technical and business schools in India. Cases of sixinstitutions where PM is being taught are described separately in Chapter 4, Section Acovering Academic Institutions’ Analysis, (Refer Chp. 4). A case of an executive who hasundergone PM training while in active service is included in Chapter 5.The study is divided into three sections. In section One, we analyze and discuss the state ofPM education in academic institutions offering technical and management education. Insections Two and Three, the findings from the segments of practicing executives and humanresource managers respectively, have been discussed. The period in which the survey andprimary research work was carried out was March – May, 2010.3.6 Academic Institutionsa) Sources of Data: The study uses primary sources of data obtained from academicinstitutions.b) Data Collection Instrument - Schedules (Questionnaires) : A questionnaire wasprepared as a research instrument and was administered by two means 1) personal in depthinterviews 2) by correspondence (email/courier). A total of 120 questionnaires were printed.The bulk of the survey was conducted through the personal interviews administered to facultyemployed in engineering and management institutions in India.c) Data Collection Method - Direct Interview Method : A total of 81 units of responseswere obtained of which 5 were received by mail/courier. In the southern region, of the 29institutions approached, 19 interview responses were obtained. In the central and easternzones, a total of 25 institutions were approached and 18 responses were received. In thenorthern region, 21 institutions were approached and 16 interview responses were received.In the western region, a total of 25 institutions were approached and the responses receivedwere 21.Questionnaires were also sent via email and 2 questionnaires by courier. Of the 15questionnaires sent by email, responses for 7 were received. Thus a total of 81 responses45
  46. 46. were received from a mix of government aided, autonomous and ‘deemed to be university’institutions.d) Sampling Procedure: The key features of the sampling procedure are stated below.d.1) Sampling Area: All India, as per 5 Zones within India (given below)d.2) Sample Size: 81 [Eastern India-05, Western India-21, Northern India-16, Southern-26and Central India-13.]d.3) Sample Unit: Academic Institutionsd.4) Sampling Technique: The survey was conducted based on zone wise proportionatesampling of technical schools in India. In case of management institutions, it was based onproportionate as well as convenience sampling technique. Thus in the sample, western andnorthern regions have a greater representation of the business institutions due to their densityas well as the easy access of the researchers to the same.e) Statistical Tools and Techniques: Pie Charts, Bar Diagrams, Column Diagrams,Correlation & Regression Analysis, Factor Analysis and Multiple Regression Analysis havebeen used.Using the responses in selected areas such as experience of faculty, their perceptions of thestate of PM education in India, the essentiality of teaching PM in technical and managementacademic institutions, their ratings of subjects and levels to be included in the PM curricula,impact on employability, etc. the percentage share of respondents who opted for a particularrating was derived. This was presented in the form of graphs. Thereafter the numericalaverages were calculated to arrive at the overall rating assigned by the respondents.f) Analytical Software: The software used included MS - Excel, SPSS and EVIEWSThe study uses descriptive statistics like pie charts, bar diagrams wherever a simpledescriptive data is being sought. For e.g. in case of the type of academic institutions; years ofservice of faculty respondents, their personal PM related research pursuits, the funding of PMrelated research in their institutions or whether the faculty has published papers in the same,and such type of questions, the data have been presented using the above mentioned methods.In order to find out the extent of interrelationship within the factors, the Correlation Matrix(Multi-Colinearity) was used, like in the case of subjects that are necessary to be included in46

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