How Project Management Affects Other Areas of Management

The PMBOK only represents a part of the expertise required to manage projects effectively. Other areas of expertise are necessary to allow a management team to apply the knowledge in the PMBOK and manage one or more projects. The PMBOK specifically focuses on managing single projects. Because most organizations need to manage multiple simultaneous projects, the need exists for management expertise beyond what the PMBOK addresses. Although other areas of knowledge and expertise are beyond the scope of the PMP exam, you will likely be asked a few questions that test your general awareness of other management requirements.

In addition to the PMBOK and an understanding of the project environment, there are at least three additional areas of expertise necessary to manage a project well. They include

• Application area knowledge and standards

• General management knowledge and skills

• Interpersonal skills

Each of these additional areas of expertise is important to effectively managing projects. This is true even though they are not directly related to the processes and activities most closely related to project management. For example, it is extremely difficult to manage a project without an understanding of general management principles. Likewise, poor interpersonal skills will likely result in project team issues and have an overall negative effect on the project.

For the purpose of the PMP exam, know the areas of expertise required for effective project management.

Understanding Application Area Knowledge and Standards

Each project has characteristics that make it unique and distinct from other projects. Although projects in general share many common needs, each project's objectives can require specific expertise to reach a successful conclusion. Projects often need knowledge of areas that are specific to the product produced knowledge that would not be needed in other projects. The application area of expertise covers any knowledge, standards, or regulations that are specific in nature and apply to a project but are not general enough to all projects to be considered core product management knowledge.

Some examples of application knowledge and standards are

• Specific departments and the services or support they provide. Examples of application area functional departments are legal, manufacturing, marketing, and security. These departments contribute to some, but not all, projects.

• Technical elements, including software development and engineering services.

• Specific types of management services for specialized areas of production or manufacturing.

• Standards and regulations that apply to any work performed in a project.

This topic is often a part of an exam question, as opposed to the main focus of a question. When building your project team, you often need to recruit members based on their application knowledge and experience. The value any team member brings to the project is generally evaluated in terms of one or more areas of expertise.

Understanding General Management Skills

The ability to manage a project effectively is contingent on the performing organization's ability to manage general processes.

Without an understanding of general management topics, specific study of the processes of project management will not be very successful. The discipline of project management builds on the principles of general management and relies on the understanding of basic management. For the exam, be aware that successful project management depends on some disciplines that are outside the standard project management processes and activities.

General management knowledge and skills include the management of any ongoing activities that support the project as it moves through its life cycle. The environment in which projects operate can be different among organizations. Regardless of the specific type of environment, organizations should provide several common products and services that support project activities. Activities in the general management area of expertise include

• Accounting

• Health, safety, and regulatory compliance practices

• Human resources services

• Information technology services and support

• Legal issues

• Logistics

• Manufacturing and distribution

• Purchasing and procurement

Many general management activities support each project. While not technically part of project management, the general management processes and activities are crucial as a foundation for projects to exist.

Understanding Interpersonal Skills

Another important area of expertise is that of interpersonal skills. As we discuss the various processes of project management, it should become clear that in all cases project team members contribute to the project's success. Likewise, project team members can reduce a project's effectiveness through poor team interaction. It is necessary to posses or develop methods of managing the relationships among project team members.

Although the PMP exam doesn't specifically test knowledge of general interpersonal skills, you are expected to understand the need for good leadership skills and a sound understanding of proper communication techniques. These skills are key to interaction among team members. You'll also need to put these skills into practice when working with stakeholders. One of the most important responsibilities of the project manager is to meet the needs of both the stakeholders and project team at least in the perspective of keeping both groups productive with respect to the project. These two groups can sometimes be difficult to motivate and bring together. That is why strong leadership and communication skills are important to the interpersonal relationships you will encounter.

The interpersonal skills area includes all areas of interaction between people. Managing interpersonal skills includes

• Fostering effective communication

• Influencing decisions

• Developing and providing leadership

• Providing individual and team motivation

• Managing conflict

• Solving problems

The success of a project can be dramatically influenced by the effectiveness of the team. Positive team dynamics are built on proper development and management of interpersonal skills. Although this area of expertise is not a core project management concern, it can have a material impact on a project. Make sure you understand its importance to the project's overall effectiveness.