Implications of Economic Decision Making to the Project Manager

Implications of Economic Decision Making to the Project Manager

Brian J. Galli
Copyright: © 2021 |Pages: 14
DOI: 10.4018/IJoSE.2021010102
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Abstract

This paper aims to identify and assess the impact of the project manager's economic decision on a project's outcome. Therefore, this paper focuses on whether a project will be economically and financially viable and will meet the interests of both external and internal stakeholders, especially the project manager's attention. Thus, the objective is to find in the decision-making process how economic decisions can provide and ensure an appropriate level of financial return rate to external and internal stakeholders, such as the project manager. The literature review approach was used to identify this economic decision-making implications on the project's outcomes. Studies show how projects' future is associated with decision making. However, a literature review has shown a shortage of research on the impact of only economic decisions on the project manager and project outcome. This study aims to fill that gap.
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Introduction

Background

Global competition and profitability goals may be a reason for organizations to engage in fast economic decisions and investment, which may not attain the desired results (benefits) in the long run, causing projects to have cost and schedule overruns because of immeasurable goals and improper allocation of financial resources. However, implementation of the individual economic decision may interfere with the project manager and, consequently, the project's outcome.

Economic investment participation is part of an organization's process to remain competitive in today's market. Therefore, decision-making plays a significant role in the company's financial expenses for the acquisition or replacement of tangible or intangible assets (Galli & Alsulaimani, 2019).

We will try to present the effectiveness of economic decisions and their relationship to the project manager and the project's future under various circumstances by understanding the factors and implications of the project and PM.

Though some literature has been devoted to decision-making and project management, not enough attention has been given to the relationship between economic decisions and project manager. A literature review has shown limited research on the effects of financial decision-making on the project manager and project outcome. Therefore, this study will aim to investigate and analyze that gap to find the disconnect between economic decisions and the project manager's work, and to explore how this relates to further choices and project future, from a project management perspective. Perhaps to even contribute to enhancing some areas of PMBOK such as decision-making, leadership, and economics.

It is worth noting that factors such as political and organizational pressures are being omitted from this paper because of it outside the scope of this study. The literature review was performed by using literature from sources such as LIU online library databases such as Scopus, EBSCO, Google Scholar, PROQUEST, Journal of Management, and journals from PMI.org. This study is organized into seven sections, as follows: Section II includes a literature review performed for the research that was used to interpret and develop the objective of this paper. Part III describes the methodology implemented to analyzed and synthesized the information needed to perform the research. Section IV presents the findings of the investigation based on the literature review. Section V outlines a discussion of the implications and applications of the study to the Project Management field. Finally, section VI includes the conclusions of the research, some recommendations for future works, and the limitations identified during the development of this study.

Problem Statement

Organizations make economic decisions to achieve their companies' objectives regarding profitability and effectiveness. However, those decisions must have solid fundaments because they require the allocation of resources that cannot be recovered amidst the project. This is when the project manager plays a crucial role in providing the needed expertise and knowledge to contribute to the best-fit financial strategies to overcome the obstacles those companies might face (Galli, 2020; Galli, 2019). Therefore, this study seeks to evaluate how the project manager's economic decision-making impacts the future of projects, based on the premise that the project manager plays the primary decision-maker role (Galli & Alsulaimani, 2019; Galli et al., 2019).

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