Tag Archives: Management

Risk Management Within Project Management

All projects involve some risk. The earlier these are identified, the sooner they can be evaluated and countermeasures, where necessary, put in place. For this reason, risk identification in project management needs to begin during the start-up phase. Typical threats to projects might include:
A change in management policy or strategy
Changes in legislation
A failure or delays to the implementation of new technology
Withdrawal of a partner
A suppliers failure to deliver
Greater than anticipated resistance to the project
Budget cuts
Loss of project personnel
Loss of public support or adverse public opinion
Failure or delays to an interfacing project
Poor estimation of time or cost.

Risk Responses
In deciding what countermeasures are appropriate, a number of factors need to be taken into account:
The magnitude of the risk in terms of its probability of occurrence and the impact it would have
When the risk might occur
The practicality/cost of any response to the risk.
Risk responses can be defined in five broad areas:
Prevention taking action to stop the threat occurring or preventing it from impacting on the project
Reduction taking action to reduce the likelihood of the threat occurring or limiting the impact it has on the project
Transference passing responsibility for the risk to a third party, for example, by taking out insurance cover
Acceptance tolerating the risk either because nothing can be done at reasonable cost, or the magnitude of the risk is at an acceptable level
Contingency planning actions to take in response to the risk occurring.
In practice, we usually give consideration to both mitigating and contingent action when determining our response.
Although the Project Board has ultimate responsibility for risk, the Project Manager is responsible for ensuring risks are identified, evaluated, recorded and regularly reviewed. Ownership for each risk should be allocated to an individual who becomes responsible for monitoring the risk. Risk owners may include members of the Project Board.
Risk Rating
As mentioned above, our response to any risk is partly influenced by the magnitude of the risk. We calculate this by multiplying the probability of the risk materialising by a factor that indicates the seriousness of the impact. In practice, unless you have a lot of data to draw on, the risk rating will be subjective, based on assumptions of the likelihood of something happening and the probable consequence. However, it is still a useful exercise as it allows us to compare risks against each other and gauge whether or not we should be making a positive response or simply accepting the risk as being too low not to cause concern.
The Risk Register
Information about risks should be recorded in a risk log or risk register. This is a dynamic document that is updated and added to throughout the project and subject to periodic review. It is usually presented in a spreadsheet format and includes:
Risk Reference
Description of the risk
The impact (H/M/L)
The likelihood (H/M/L)
The date the risk was identified/defined
The risk owner

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Human Resource Management

Human resource practitioners are individuals who are extensive specialized and equipped with technical knowledge of issues dealing with human resource. The specialists of human resource units, the leaders, and generalists’ staff within the function are typically referred to as human resource professionals or human resource practitioners. Though, this is not always the case as most business organizations fill the top positions with individuals possessing experience and not necessarily from the area of human resource (Beardwell and Holden, 1998). The decentralization, deregulation, and neo-liberalisme have been as a result of business globalization. This has come along with major challenges to the human resource practitioners. As major business companies in developed nations, Australia included are relocating their jobs to third world countries for cheaper labor, this in itself in a great challenge to the human resource professionals, because they have to deal with a number of issues such as culture diversity, employee relations, labor relations, safety, and security (Beardwell and Holden, 1998). Handling all these issues in foreign countries, moreover developing countries in a tall order for human resource professionals, they view this are extra task which requires their full involvement in the company.


Traditionally, before the globalization of business, human resource practitioners frequently had little involvement in the total organization’s operations as well as goals, they focused on creating staffing plans, offering distinctive job training programs, and running yearly performance assessment programs (Beardwell and Holden, 1998). They concentrated on the daily requirements of the human resources. With relocation of jobs to countries which offer lower cost of service together with the escalating significance of human resources to the accomplishment of the business, human resource professionals are facing a major challenge of becoming much more involved in the operations of the organizations (Cane, S 1996). They are the skilled lot of the business, thus they recognize the requirements of the business and they must assist in addressing those requirements. Their challenge is therefore an augmented participation in the long lasting, premeditated directions of the business organization. Another challenge is the novel prominence on the long lasting activities together with extra distinctive medium as well as short lived activities. This poses a heavy and an uphill task to these professionals. Innovator role is another stress for these human resources professionals (Cane, S 1996). The challenge has been as a result of globalization. Today, most business organizations are demanding their human resource practitioners to become more innovative in their problem solving approaches in an effort to improve on the productivity as well as the quality of work life, whereas obeying with the regulations and legislations in different countries where these businesses are operating.


Naturally very employees do not agree or welcome the issue of reorganization or deregulation, and the human resource professional pose no exception. However, additional tasks, outsourcing of functions or a company acquisition or amalgamation can make a requirement to evaluate departmental processes as well as framework (Cane, S 1996). Human resource practitioners budding functions, roles, or tasks as strategic organizational partners may as well offer impetus for change to the business, however the tasks impose a challenge to them. Outsourcing in a business organizational is a greater and beneficial aspect because it cut down on the administrative costs (Carter, L 2001). However the same aspect of outsourcing shifts the human resource values and efforts to the organization from administrative tasks to business roles. Organization outsourcing therefore put the jobs of the human resource professionals at risk, thereby requiring them to become more innovative as well as creative in order to maintain their positions (Carter, L 2001). The only alternative for these workers in human resource department is to assign the administrative roles to temporary and part time workers.


In the current networked business environments, most organizations have extended their geographical concentration, to the countries where labor costs are inexpensive and government policies hearten the access of foreign companies to engender investments and generate extra jobs (Dessler, G 1978). The outsourcing behavior of these major business organizations can be referred to as neoliberalism, because they are involved in the relocation of the part of capital from the original countries to other countries where they feel the cost of labor is cheap (Dessler, G 1978). This is done with an aim of achieving competitive advantage.

Human resource professionals working the organizations in the Australia with a principally local focus distinguish that global issues have an increasing persuade on markets, supply chains as well as business (Dessler, G 1981). The human resource professionals affiliated to Australian companies with enormous global presence will concentrate more on the international human capital matters, for instance the amalgamation of dissimilar culture, global workforce management, international and regional legislation (Cane, S 1996). The Australian business company should not be lured into third world countries, such as China and India for the sake of cheap labor alone, but should increase their efforts on trainable and skilled labor which is immediacy to market development (Dessler, G 1981). The globe is moving at a very fast rate towards operating as a solitary incorporated, integrated, and included market, and a large part of that is the propagation of cosmopolitan corporations. Globalization however poses a number of unique challenges not only to the human resource practitioners from Australia, but those holding the offices of human resource all over the world.

The issue of international business leadership is the concentration of a number of researches (Carter, L 2001). The human resource practitioners in Australia are up and down looking for what they need to undertake in order for their companies to succeed on global platform. Among the challenges these human resource practitioners are facing, there is an issue of leadership style adjustment to a particular foreign cultures, where the company is carry out the business (Henry, C 1995). An efficient international human resource practitioner is one who is capable of mastering the global business matters, able to set directions, efficient in leading his employees from dissimilar nations and culture along with aligning global resources. A human resource practitioner with global reputation ought to contain international approach at any moment, for example must be in a position to take a global perspective along with being inclusive in aspects dealing with cultures, and ought to be very sensitive in the issues of globally diversity, respect for human decorum and wellbeing of all workers.

The other challenge these practitioners are facing is labor relation with other foreign countries, because most of the worker unions are may not be use friendly (Henry, C 1995). The HR professionals therefore have the sole mandate of identifying and recognizing how powerful the labor unions are, the restrictions of the workers’ union to the employers (Cane, S 1996). The Australian practitioners have to face this labor challenge with the seriousness it deserves, because human resource is very important for the growth of any company. The businesses from Australia relocating to these third world countries have faced this labor challenge since the operating systems in these countries are much different from what is being practiced in Australia (Carter, L 2001). This has become a greater challenge to these professionals to an extent of sweet talking the foreign countries’ labor unions in an effort to make them understand the situation at hand. The challenge for human resource practitioners to isolate the hiring procedure that will best suit a particular cultural setting is an uphill task for them (Cane, S 1996). For instance when carrying out a recruitment in Asia, they have to focus on the work life balance, candidates with major diversities, project responsibility as well as recognition. When hiring in western countries the human resource professionals are mandated to concentrate on job fit, empowerment, opportunities, and challenges for the movement.


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