HYPOTHESES DECEMBER 2003

The following are the hypotheses proposed at the start of the previous research project, as described in Huemann et al. (2004a):

H1: Human resource management (HRM) is a core process of the project-oriented organization.

Project-oriented organizations use projects and programs to perform business processes. These are temporary organizations (Turner and Müller, 2003) that impact the human resource practice in the organization. Every time a new project or program is developed, the human configuration of the organization must change. Therefore, we expect HRM to be at the core of the project-oriented organization's management.

H2: There are differences between human resource management in classically managed (functional) organizations and in project-oriented organizations.

Traditional human resource management practices are designed for the classically managed organization (Keegan and Turner, 2003), such as the factory mass produces routine products, where the job requirements are well-defined and stable. Projects and programs are temporary organizations (Turner and Müller, 2003) and entail greater uncertainty, creating a more dynamic environment with more discontinuity. Thus we expect different HR processes to be required than in the classically managed organization as traditionally adopted.

H3: Specific requirements exist for the HRM processes in the project-oriented organization.

We expect the core processes of HRM in the project-oriented organization to be similar to those applied in the classically managed organization (Torrington et al., 2002). A very simple model of the core processes include four steps (Huemann et al., 2004b):

• Recruitment
• Development
• Leadership
• Release

However, we expect there to be requirements for additional processes, such as assignment and reassignment to projects and programs, leadership on, and dispersement at the end of projects.

H4: Specific HR practices exist as applied in project-oriented organizations.

Based on Hypotheses 2 and 3, we expect the practices adopted to apply these processes to be necessarily different to reflect the transient and uncertain nature of the work in project-oriented organizations.

H5: The role of the HR department needs to be different from the classically managed (functional) organization.

Based on Hypotheses 2 to 4, we expect the role of the HR department to be different from classically managed organizations and closely linked to the role of the project management office and the manager of the pool of project management professionals.

HYPOTHESES JUNE 2004

The following are the hypotheses proposed at the end of the previous research project and presented to the PMI research conference in July 2004 by Huemann et al. (2004a):

Hypothesis 1: HRM is a core process of both the project-oriented organization and the classically managed organization. However, because every time a new project is created the HR configuration of the organization changes, it is more invasive in the project-oriented organization. This is not yet recognized by many project management personnel.

Hypothesis 2: Because every time a new project is created the HR configuration of the organization changes, the environment in a project-oriented organization is more dynamic and discontinuous. This creates different needs for HRM in the project-oriented organization. This is not yet widely recognized, but where it is recognized, different processes are being adopted.

Hypothesis 3: The project-oriented organization needs additional processes for HRM, particularly assignment to projects, project leadership and dispersement after projects.

Hypothesis 4: The project-oriented organization needs different practices for HRM, different practices within the traditional processes of recruitment, training, leadership and release, and different practices within the additional processes of assignment, project leadership, and dispersement.

Hypothesis 5: The role of the HR department is to set policies, standards, rules, and guidelines for HRM; to delegate their operation to those parts of the organization where the decisions have greatest effect (under a principle of subsidiarity); and to provide support in their operation as necessary. The HR department in the project-oriented organization needs to develop policies, standards, rules and guidelines in traditional areas that are sufficiently flexible to deal with the different HR requirements and policies, procedures, rules, and guidelines for the additional processes.

Hypothesis 5A: In the project-oriented organization, the HR department needs to work closely with managers to ensure these policies, standards, rules, and guidelines are properly implemented to deal with the dynamic nature of the environment and the invasive need for HR practices.

HYPOTHESES JUNE 2005

The following are the hypotheses proposed at the start of this research project, originally listed in a proposal submitted to the Project Management Institute in June 2005.

Hypothesis 1: HR management is a core process of the project-oriented organization, as well as the classically managed organization. However, because every time a new project is created, the HR configuration of the organization changes, it is more invasive in the project-oriented organization. This is not yet recognized by many project-oriented organizations.

Hypothesis 2: Because every time a new project is created, the HR configuration of the organization changes, the environment in a project-oriented organization is more dynamic and discontinuous. This creates different needs for HRM in the project-oriented organization. This is not yet widely recognized, but where it is recognized, different processes are being adopted.

Hypothesis 3: The project-oriented organization needs additional processes for HRM, particular assignment to projects, development within projects, and dispersion after projects.

Hypothesis 4: The project-oriented organization needs different practices for HRM; different practices within the traditional processes of recruitment, development, deployment, and release; and different practices within the additional processes of assignment to projects, development within projects, and dispersion after projects.

Hypothesis 5: The role of the HR department continues to be to set policies, standards, rules, and guidelines for HRM; to delegate the operation to those parts of the organization where the decisions have the greatest effect (under a principle of subsidiarity); and to provide support in their operation as necessary. But the policies, standards, rules, and guidelines need to reflect that different processes and practices are required.

HYPOTHESES JANUARY 2006

The following are the hypotheses proposed at the end of the literature search, as developed at a meeting between the authors in Vienna, Austria, in January 2006.

Specific Requirements and Challenges for HRM in the Project-Oriented Company

Hypothesis 1a: HRM in the project-oriented company needs to support the strategy of the company, which is “management by projects.” This creates different needs for HRM.

Hypothesis 1b: As project-oriented companies use temporary organizations, including projects and programs to undertake their work, the HR configuration of the organization is continually changing as projects start and finish. Therefore, HRM is more invasive than it is in classically managed organizations.

Hypothesis 1c: Because every time a new project is created the HR configuration of the organization changes, the environment in a project-oriented company is more dynamic and discontinuous.

Hypothesis 1d: Project-portfolio resourcing and multi role demands are specific features of the project-oriented company.

Hypothesis 1e: Project-oriented companies have a specific project management culture and management paradigm, which influences HR issues.

Hypothesis 1f: Based on these specific characteristics of the project oriented company, specific HRM challenges arise.

Employee Well-Being and Ethical Treatment in the Project-Oriented Company

Hypothesis 2a: In a dynamic environment in which the HR configuration is constantly changing, the challenges of ensuring employee well-being and the ethical treatment of workers is important but may be overlooked in project-oriented organizations.

Hypothesis 2b: When it comes to considering the effects of HR policies and practices, the organizational/managerial perspective dominates and the effect on individual employees are marginalized.

HRM Processes and Practices in the Project-Oriented Company

Hypothesis 3a: The project-oriented company needs additional processes for HRM, particular assignment to projects, appraisal, development and reward on projects, and dispersion after projects.

Hypothesis 3b: The project-oriented company needs different practices for HRM; specific practices within the traditional processes of selection, appraisal, development, reward, and release; and different ones within the additional processes of assignment to projects, appraisal, development and reward within project, and dispersion after projects.

HRM Roles in the Project-Oriented Company

Hypothesis 4a: The role of the HR department continues to be: to set policies, standards, rules, and guidelines for HRM; to delegate the operation to those parts of the organization where the decisions have the greatest effect (the principle of subsidiarity); and to provide support in their operation as necessary.

Hypothesis 4b: Line managers, project managers, deployment managers and HR managers all have specific HR roles and tasks to fulfill'

Different Variables Influence the Specific Design of the HR Function

Hypothesis 5: The different HR roles (line managers, project managers, HR department, deployment managers), processes and practices adopted depend on the nature of the projects (such as size, duration, repetitiveness, single discipline versus multi-discipline, internal versus external), the maturity of the organization as project-oriented organization and its HR configuration.

Trends in HRM

Hypothesis 6: Some of the trends in HRM, such as global sourcing, centralization of the HRM function, outsourcing of the HRM functions, and devolution of HRM roles and tasks to managers at the work interface can also be identified in project-oriented companies. However, these trends create specific challenges in the proof of concept (POC).

HYPOTHESES MAY 2006

The following are the hypotheses proposed at the end of the interviews and developed at a meeting between the authors in Rotterdam, The Netherlands in May 2006.

Hypothesis 1: Project-based organizations use temporary organizations, including projects and programs, to undertake their work, so the HR configuration of the organization is continually changing as projects start and finish. Therefore, HRM is more invasive than it is in the classically managed organizations.

Hypothesis 2: Because every time a new project is created the HR configuration of the organization changes, the environment in a project-oriented organization is more dynamic and discontinuous. This creates different needs for HRM in the project-oriented organization. This is not yet widely recognized, but where it is, different processes are being adopted.

Hypothesis 3a: In a dynamic environment in which the HR configuration is constantly changing, the challenges of ensuring employee well-being and ethical treatment are important but may be overlooked in project-oriented organizations.

Hypothesis 3b: When it comes to considering the effects of HR policies and practices, the organizational/managerial perspective dominates, and the effect on individual employees is marginalized.

Hypothesis 4: The project-oriented organization needs additional processes for HRM, particular assignment to projects, appraisal, development and reward on projects, and dispersion after projects.

Hypothesis 5: The project-oriented organization needs different practices for HRM; specific practices within the traditional processes of selection, appraisal, development, reward, and release; and different practices within the additional processes of assignment to projects, appraisal, development and reward within projects, and dispersion after projects.

Hypothesis 6a: The role of the HR department continues to be: to set policies, standards, rules, and guidelines for HRM; to delegate the operation to those parts of the organization where the decisions have the greatest effect (the principle of subsidiarity); and to provide support in their operation as necessary. But the policies, standards, rules, and guidelines need to reflect that different processes and practices are required.

Hypothesis 6b: Line managers, project managers, deployment managers and HR all have specific HR roles and tasks to fulfill.

Hypothesis 6c: The distribution of these roles and tasks is dependent on the nature of the projects (such as size, duration, repetitiveness, single discipline versus multi-discipline).

Hypothesis 7: The different roles of all the players (line managers, project managers, HR department, deployment managers), processes, and practices adopted depend on the maturity of the organization as a project-oriented organization and its HR configuration.

Hypothesis 8: Some of the trends in HRM, such as global sourcing, centralization of the HRM function, outsourcing of the HRM function, and devolution of HRM roles and tasks to managers at the work interface, can also be identified in project-oriented companies. However, these trends create specific challenges in the project-oriented companies.

HYPOTHESES MARCH 2007

The following are the hypotheses proposed at the end of the case studies, as developed following a meeting between Drs. Turner and Huemann in Washington, DC, in March 2007.

The Nature of the Project-Oriented Organization and HRM in It

Hypothesis 1a: Project-oriented organizations make the strategic choice to use temporary organizations, such as projects and programs, to undertake their work processes. They need to adopt HRM practices that align vertically with that strategic choice and horizontally to support those work processes.

Hypothesis 1b: Because project-oriented organizations use temporary organizations to undertake their work processes, the HR configuration of the organization is continually changing as projects start and finish. Therefore, HRM is more invasive than it is in the classically managed organization.

Hypothesis 1c: Because every time a project starts or finishes the HRM configuration changes, the work environment in a project-oriented organization is more dynamic and discontinuous. This creates the need for new and different HRM practices in the project-oriented organizations when compared to traditional models proposed for classically managed organizations. This is not widely recognized, but where it is, different practices are adopted.

New and Different HRM Practices in the Project-Oriented Organization

Hypothesis 2a: The project-oriented organization needs additional HRM practices specific to projects and programs, and the temporary organizations it uses to undertake its work processes. These include assignment to projects, appraisal, development and reward on projects, and dispersement on project completion.

Hypothesis 2b: The project-oriented organization needs to adapt traditional practices, such as selection into the organization, appraisal, reward and development while working for the organization, and release from the organization:

• To align with the strategic choice of using management by projects;
• To complement the additional practices adopted specific to the projects
• To support the temporary nature of the work processes and dynamic nature of the work environment

HRM Roles in the Project-Oriented Organization

Hypothesis 3a: The role of the HR department continues to be:

• To set policies, standards, rules, and guidelines for HRM
• To delegate their operation to those parts of the business where the decisions have the greatest effect, the principle of subsidiarity
• To provide support in their operation as necessary

But the policies, rules, standards, and guidelines need to reflect the different practices and processes required by the project-oriented organization.

Hypothesis 3b: Line managers, project managers, deployment managers, and HR managers all have specific HRM roles they need to fulfill.

Hypothesis 3c: The distribution of those roles and tasks is dependent on the nature of the projects undertaken by the organization, including their size, duration, repetitiveness, and whether single or multi-discipline).

Hypothesis 3d: The different roles of all the players (line managers, project managers, deployment managers, and HR managers), and the processes and practices adopted depend on the maturity of the organization as a project-oriented organization and its HR configuration.

Hypothesis 3e: Some of the global trends in modern HRM can be identified in project-oriented organizations, particularly the devolution of HRM roles to managers at the work interface, including line managers and project managers. More roles need to be developed for project managers, but some roles also need to be retained in the line.

Employee Well-Being in the Project-Oriented Organization

Hypothesis 4a: In a dynamic environment in which the HR configuration is constantly changing, the challenges of ensuring employee well-being and ethical treatment are important, but may be overlooked.

Hypothesis 4b: When it comes to considering the effects of HRM policies and practices, the organizational/managerial perspective dominates and the effects on individual employees may be marginalized.

Hypothesis 4c: Project personnel, for the most part, enjoy project-based ways of working, but the discipline tends to be self-selecting, with those not attracted to the working environment leaving.