The Effect of Project Management Information System on  Project Managers and Project Success

 

Shadi Fallah

Department of  management,  Islamic Azad University, Qaemshahr, Iran

shfallaah@gmail.com

Yousef Gholipour-Kanani

Department of Industrial Engineering, Islamic Azad University, Qaemshahr, Iran

Abstract. Project management information system (PMIS) helps managers in decision making, planning, organizing and controlling the project. Based on the importance of decision making, the aim of this study is assessing the effects of PMIS on the project management success. This study designed a comprehensive model to evaluate the impact of PMIS on the project management functions. This model included five factors such as: PMIS quality, the quality of output information of PMIS, PMIS application, PMIS impact on project management and the impact of PMIS on the project success. This study conducted in Iran in three dependent firms in Tehran petroleum. Data of this research is collected by using questionnaires from project managers. Results demonstrated the crucial role of PMIS on the project management success due to better planning, proper scheduling, regulating and controlling the project. At the end limitation and suggestion for future study is discussed.

Keywords: Project management information system, decision making, planning, project control.

INTRODUCTION

Information is one of the most important capitals in the organizations, because all physical facilities and environmental decision making are affected by information. Information can change competitive aspects withing the organization and lead to competitive advantage. Morever, successful organizations in information technology can change competition characteristics in the industry and benefit by being pioneer. Due to the importance of project management information system (PMIS) to implement project faster, less expensive and with higher quality, the general expectation from project managers enhanced (Welsch, 2006). Organizations apply information systems in their organizations to improve effeciency and profitibility; through this way they can adopt themselves easier to environmental changes and attain updated information. Also managers can estimated the project costs,  profits and budget by using PMIS. In general, PMIS can be used in Implementing activities, goods and materials management, collecting and classifying financial and non-financial information, and storage of information.

Despite of the importance of PMIS, there are still limited studies in this filed. Previous studies mostly considered on implementing information technology instruments in the organizations. Morever, due to importance of oil and gas projects more research about PMIS is needed. Because, in this industry PMIS can play the key role in recognizing the suitable resources, planning and scheduling, this study has considered on the effect of project management information system on  project managers and project success.

Forasmuch as PMIS accompanies managers in all process of implementing project, this study aims to assess the effect of PMIS on  project managers. Also  this study targeted to evaluate the effect of  PMIS on project success. Furthermore, the effects of PMIS on its application, project management characteristics and quality of outputs.

LITERATURE RIVIEW

An information system defined as ‘’ a set of related components that assist to collect, recovery, processing, storage and distribution of information within the organization’’ (Olson, 2004). This information is very useful for decision making and controlling the operation in an organization. Managerial team can use this information for analysis and making decision about future product line. Also Management information system defined as ’’ series of tools which provide to managers the required information in their professional fields on time, accurate and in appropriate conditions’’. Study of Welsch (2006) indicated that MIS assists middle managers through the provision of information in appropriate formats according to what they need.

According to Olson (2004) projects due to their diverse and uniqueness are structurally different from the current organizational routines. Project management is always more difficult than regular administration and requires more attention to different aspects of organization. The project combines the demands of the custodians, contractors and other stakeholders; so to create unity between all factors involved in the project, appropriate techniques and utilities should be exploited (Baker et al., 2009). Belout (2003) in an empirical study considered on the effects of PMIS on multi-project environment. Results showed that using project management information system is beneficial for project managers. However, no adverse effects have been observed due to the project, and information overload.

Commonly projects implement in certain time, cost and quality; they mostly done only for one time. Therefore it is essential to apply an instrument which helps organization to do projects more effective (Dietrich and Lehtonen, 2005).  Also another study has investigated the Challenges in information systems projects (Finch, 2003). Adams and Barndt (2008) in their study showed that PMIS has a positive effect on the management and execution of construction projects and managers should give careful consideration to overcome the weaknesses of the project. According to study of (Cooper et al., 2001) during the projects some changes may happen in process. Despite the theoretical accuracy in the preparation of plans and administered programs, managers should carefully pay attention to using on time and accurate information. Also project control team requires different expertise to accomplish the responsibilities as good as possible (Dai and Wells, 2004). For the purpose of control, various units should send information to control project department under proper discipline and coordination. Particularly, the activities which locate on the critical path of the project should regularly monitor and inspect to ensure that occurred delays don’t lead to delay in entire project. Bozeman and Kingsley (2007) showed that data quality of PMIS is related positively to the correct decisions, managers’ satisfaction from PMIS and increasing usage of PMIS within the organization. Also this study discussed about implementing multiple projects simultaneously causes that the project managers expand the results of the quality information for a project to all existing projects. Based on abovementioned literatures the following hypotheses were proposed:

H1. PMIS quality is positively related to output information quality.

H2. PMIS quality is positively related to PMIS application and project management factors.

H3. Output information quality of PMIS is positively related to PMIS application and project management factors.

H4. PMIS application influences positively on project management factors.

H5. PMIS application influences positively on project success factors.

H6. Project management factors influences positively on project success.

METHODOLOGY

Data of this research attained by distributing questionnaire which included 20 questions based on 6 main categories. This study targeted project control department of three firms which dependent to Tehran Petroleum Company. Targeted employees were 80 and all of them participated in this research. According to table of Morgan number of participants is 63. This study applied SPSS to test normality of study population and hypothesized relationships. Testing normality of population evaluated by using Kolmogorov–Smirnov test; also binominal test applied to assess the hypothesized relationships.

To consider on validity of questionnaire, all questions reviewed by several scholars and their opinions applied in the study instrument. After discussion and making some changes, the validity of questionnaire approved by them.  To test reliability of questionnaire, this study applied Cronbach’ alpha and all values ranged between .76 and .85; Therefore, result demonstrated the reliability of questionnaire. Scale format of questionnaire was based on five-point Likert scale (1=very low to 5=very high).

Table 1. Respondents information

                              Number           Percentage

Gender:

Male                                                      51                      81%

Female                                      12                  19%

Total                                  63                100%

Organizational tenure:

<5 years                                                19                   30%

6-10 years                       30                       48%

>11 years                                              14                        22%

Total                                        63              100%

Educational level:

Bachelor degree                 42                  67%

Master degree                              21                  33%

Total                                       63                100%

 

RESULTS

Results of Kolmogorov–Smirnov test showed that data of this study is not normal; therefore assessing data is done by using Binominal test which is one of the nonparametric tests. As can be seen in Table 2, P-Value related to H1 is less than 0.05; this result indicated that there is significant difference between two groups. Furthermore, according to the reality that 95% of responses were ‘’high’’ ad ‘’very high’’; it conclude that PMIS has positive and significant effect on quality of output information. Thus, H1 is supported. Similarly, P-Value related to H2 is less than 0.05 and majority of responses (94%) were ‘’high’’ ad ‘’very high’’. This finding reveals that quality of PMIS influences positively and significantly on application of PMIS and project management factors. Therefore, H2 is supported. Also table 2 shows that the responses of participants about H3 were mostly (93%) above “fair’’ with P-Value<0.05. This result indicates that quality of PMIS output information is positively and significantly related to PMIS application and project management factors. Therefore, it reveals the empirical support for H3. To assess H4 which indicates to the positive relationship between PMIS application and project management factors; Table 2 shows that 90% of responses were ‘’high’’ ad ‘’very high’’ and P-Value<0.05. Thus, H4 is empirically supported. Also 86% responses related to H5 are above ‘’fair’’; also P-Value related to H5 is less than 0.05; this result indicated that there is significant difference between two groups. Abovementioned values indicated the positive relationship between PMIS application and project success factors. Therefore, H5 is supported. The last hypothesis is also empirically approved with majority of ‘’high’’ and ‘’very high’’ responses (94%) and P-Value<0.05. Therefore, there is positive significant relationship between project management factors on project success. Generally, all hypotheses were supported.

Table 2. Results

                        Maen          SD         %Responses ≤3       %Responses>3          α          P-Value

H1                     4.56           .33             5%                     95%                  .05            0.00

H2                     4.40           .39                 6%                           94%                .05            0.00

H3                     4.43           .48                 7% 93%                .05                           0.00

H4                     4.46           .50                10%                         90%                 .05            0.00

H5                     4.44           .40                14%   86%                 .05            0.00

H6                     4.55           .47                  6%                          94%                .05            0.00

Discussion

This study is done based on direct and indirect effects of PMIS on project success. Easy usage of system, flexibility, respond time, easy learning, integrity of system, all have critical roles on quality of provided information. When quality of PMIS is high, information is more Reachable, reliable, accurate, comprehensive and secure. Result demonstrated that quality of information directly and intensively is related to applying PMIS and its effects on project management. But quality of information is not the only factor that should be considered; because it will be useful when it applies in organization through qualified managers. Using affective PMIS makes performance more professional due to its application in planning, controlling, setting and reporting in different steps of projects.

Results indicated that PMIS quality influences positively on output information quality, PMIS application and project management factors, project management project factors and project success factors. Results of this study were consistent with the result of existing empirical researches (e.g., Belout, 2003; Bozeman and Kingsley, 2007; Olson,  2004).

Limitation and suggestion for future research

The first limitation of this study is related to generalizability because data of this study collected from three dependent firms to Tehran Petroleum Company. It is beneficial if future studies consider on larger number of participants.   Also this study conducted in Iran which is known as developing country; therefore to generalizability of results to developed countries some problems may occur.  Also data of this study collected on limited period of time and does not cover information and changes may happen over time.  Therefore, it is useful to collect data using longitudinal design. Finally, further consideration should be done about other internal and external factors may effect on the quality of PMIS.

References

– Baker, B., Murphy, D., Fisher, D. 2009. Factors affecting project success. In Cleland, D., King, W. (Eds),Project Management Handbook, Wiley, New York, NY, 902-19.

– Kostalova, J., Tetrevova, L., Syedik, J. 2015. Support of Project Management Methods by Project Management Information System. Procedia – Social and Behavioral Sciences, 210, 96-104.

– Bozeman, B., Kingsley, G. 2007. Risk culture in public and private organizations. Public Administration Review, 58 (2), 109-18.

– Iyer, K.C., Banerjee, P.S., 2016. Measuring and benchmarking managerial efficiency of project execution schedule performance. Measuring and benchmarking managerial efficiency of project execution schedule performance, 34 (2), 216-236.

– Dietrich, P., Lehtonen, P., 2005. Successful management of strategic intentions through multiple projects. International Journal of Project Management 23 (5), 386–391.

– Ghaffari, M., Sheikhahmadi, F., Safakish, G. 2014. Modeling and risk analysis of virtual project team through project life cycle with fuzzy approach. Computers & Industrial Engineering, 72 (June), 98-105.

– Jafarzadeh, M., Tareghian, H.R. Rahbarnia, F., Ghanbari, R. 2015. Optimal selection of project portfolios using reinvestment strategy within a flexible time horizon. European Journal of Operational Research, 243(2), 658-664.

– Liu, S., Wang, L. 2016. Influence of managerial control on performance in medical information system projects: The moderating role of organizational environment and team risks. International Journal of Project Management, 34(1), 102-116.

– Welsch, W. 2006. “Input: state and local IT spending surge begins”, available at: http://www.washingtontechnology.com/news/1_1/daily_news/28292-1.html (accessed July 29, 2006).

 

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