St.

MARY’S UNIVERSITY
SCHOOL OF POST GRADUATE STUDIES

THE EFFECTS OF PROJECT MANAGERS INTERPERSONAL SKILL ON

PROJECT PERFORMANCE OF BUILDING CONSTRUCTION SITES, IN
ADDIS ABABA.

BY: HANA TILAHUN

(SGS/0364/2014A)

JUNE 2023

ADDIS ABABA, ETHIOPIA

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THE EFFECTS OF PROJECT MANAGERS INTERPERSONAL SKILL ON
PROJECT PERFORMANCE OF BUILDING CONSTRUCTION SITES, IN
ADDIS ABABA.

BY: HANA TILAHUN

(SGS/0364/2014A)

A THESIS TO BE SUBMITTED TO THE DEPARTMENT OF

PROJECT MANAGEMENT AS A PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF ART IN
PROJECT MANAGEMENT.

ADVISOR: - DR. TEMESGEN BELAYNEH

SCHOOL OF POST GRADUATE IN PROJECT MANAGEMENT

JUNE 2023

ADDIS ABABA, ETHIOPIA

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 Declaration
I hereby declare that this thesis entitled “The effect of Project Managers’ interpersonal Skill
on Project Performance of Building Construction sites, in Addis Ababa.” was composed by
myself, with the guidance of my advisor, that the work contained herein is my own except where
explicitly stated otherwise in the text, and that this work has not been submitted, in whole or in
part, for any other degree or processional qualification.

Hana Tilahun Signature Date

St. Mary’s University

Addis Ababa

June,2023

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 Statement of certification
This is to certify that Hana Tilahun Damena has carried out her research work on the topic entitled “The
effect of Project Managers’ interpersonal Skill on Project Performance of Building
Construction sites, in Addis Ababa”. The work is ordinal in natural and is suitable for
submission for the reward of the Master’s Degree in project management.

Advisor :Dr.Temesgen Belayneh (PhD) :

Date:

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 Certificate
This is to certify that the thesis prepared by Ms.Hana Tilahun Damena entitled “The effect of Project
Managers’ interpersonal Skill on Project Performance of Building Construction sites, in
Addis Ababa.” And submitted in fulfillment of the requirement for the Degree of Master of
Science complies with the regulations of the University and meets the accepted standards with to
originality and quality and Singed.

APPROVED BY BOARD OF EXAMINERS

Dean, Graduation Studies signature Date

Adviser signature Date

Internal Examiner signature Date

External Examiner signature Date

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 Acknowledgement
First and most of all I sincerely thank the Almighty for giving me the endurance to complete this research.
Next I would like to express my deepest appreciation to my advisory Dr, Temesgen Belayneh
instructor at the St Mary’s University, for his professional guidance, useful advice, continuous
encouragement and support throughout the process of this research.

I am deeply grateful to all those who gave me assistance in obtaining the information and data
related to this work. Especial thanks go to the professionals for project manager and project
engineer to give me information to my study and different contractors and consultant to support
me to achieving this research in personal and thanks in deep for their continuous support and
understanding.

As always special recognition and deepest gratitude shall go to my family and friends for their
patience and support.

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Table of Contents
Declaration ..................................................................................................................................... iii
Certificate........................................................................................................................................ v
Acknowledgement ......................................................................................................................... vi
List of table ..................................................................................................................................... x
List of Abbreviation ....................................................................................................................... xi
Abstract ........................................................................................................................................... 1
CHAPTER ONE ............................................................................................................................. 2
INTRODUCTION .......................................................................................................................... 2
1.1. Background of the study ............................................................................................................... 2
1.2. Statement of the problem ............................................................................................................ 3
1.3. Research Question ........................................................................................................................ 4
1.4. Objective of the study ................................................................................................................... 4
1.5.1 General objective .................................................................................................................. 4
1.5.2 Specific objective .................................................................................................................. 4
1.6 Scope of the study ........................................................................................................................ 5
1.7 Limitation of the study .................................................................................................................. 5
1.8 Organization of the research ................................................................................................ 5
CHAPTER TWO ............................................................................................................................ 6
REVIEWS OF THE LITERATURE .............................................................................................. 6
2.1 Introduction .................................................................................................................................. 6
2.2 Theoretical Literature ................................................................................................................... 7
2.2.1. The future advancement of project management ............................................................... 7
2.2.2. Factor influencing project performance ................................................................................... 7
2.2.3. Relationships in projects ........................................................................................................... 9
2.2.4. Cultural issues in project relationships ..................................................................................... 9
2.2.5. Leader –Follower Relationships Theories ............................................................................... 10
2.3. EMPIRICAL REVIEW ..................................................................................................... 10
2.3.1. Introduction ............................................................................................................................ 10
2.3.2. Theoretical frame work ........................................................................................................... 11
2.3.3. Project performance measurement ....................................................................................... 13

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2.4. Conceptual framework ....................................................................................................... 14
2.5. Knowledge gap .................................................................................................................. 15
CHAPTER THREE ...................................................................................................................... 16
RESEARCH DESIGN AND METHODOLOGY ........................................................................ 16
3.1. Introduction ................................................................................................................................ 16
3.2. Research method and design ...................................................................................................... 16
3.3. Sample size and sampling technique .......................................................................................... 17
3.3.1. Sample size determination ................................................................................................. 17
3.3.2. Sampling technique............................................................................................................. 18
3.2. Type and sources of data ............................................................................................................ 19
3.3. Data collection ............................................................................................................................ 19
3.4. Data analysis and presentation ................................................................................................... 20
3.4.1. Description of variables ...................................................................................................... 20
3.5. Validity and Reliability ............................................................................................................... 21
3.5.1. Validity test ......................................................................................................................... 21
3.5.2. Reliability tests.................................................................................................................... 22
3.6. Ethical standards and procedures ................................................................................................ 25
CHAPTER FOUR ......................................................................................................................... 26
RESEARCH FINDING ................................................................................................................ 26
4.1. Introduction ................................................................................................................................ 26
4.2. Review of data collection procedures......................................................................................... 26
4.3. Issues related to data collection ................................................................................................. 27
4.4. Data analysis procedure .............................................................................................................. 27
4.5. Analysis ....................................................................................................................................... 29
4.5.1 Testing Hypotheses: the PM/PE Surveys ............................................................................ 32
4.5.2 Testing Hypotheses: Comparing Surveys ............................................................................ 33
4.6. RESULTS OF THE STUDY HYPOTHESIS ......................................................................................... 35
4.6.1 Project managers ................................................................................................................ 35
4.6.2 Project engineers ................................................................................................................ 35
4.7. Linear regression - results and analysis ...................................................................................... 36
4.8. Major findings ............................................................................................................................. 39

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CHAPTER FIVE .......................................................................................................................... 40
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS................................................. 40
5.1. Summary ..................................................................................................................................... 40
5.2. Conclusions ................................................................................................................................. 41
5.3. Recommendations .............................................................................................................. 41
Reference ...................................................................................................................................... 44
APPENDIX ................................................................................................................................... 50
Questioners ............................................................................................................................................. 50
Appendix ....................................................................................................................................... 56

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List of table
Table 1 number of interviewees .................................................................................................................. 19
Table 2 interviewees background (years of experience) ............................................................................. 19
Table 3 Likert response indication numbers ............................................................................................... 23
Table 4 Reliability rules .............................................................................................................................. 23
Table 5Cronbach’s Alpha and independent variable and characterization for PM and PE ........................ 24
Table 6 Chi-Square Test Table ................................................................................................................... 30
Table 7Hypothesis Test Summary .............................................................................................................. 31
Table 8 comparing the project manager and project engineer survey to determine similarity between two
samples........................................................................................................................................................ 32
Table 9 Model Summary ............................................................................................................................ 36
Table 10 ANOVA ....................................................................................................................................... 37
Table 11 Coefficients .................................................................................................................................. 38

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List of Abbreviation
IPMA International Project Management Association

LMX Leader-Member Exchange

PE Project Engineer

PM Project Manager

PMBOK Project Management Body of knowledge

PMI Project Management Institution

RTC Randomized Controlled Trial

SPSS Statistical Package for the Social Sciences

TOC Theory of Constraints

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Abstract
The objective of this study is to assess the effect of project manager’s interpersonal skill on
project performance of building construction sites, in Addis Ababa. The researcher went through
different literature on the subject matter to understand about the factors of project interpersonal
skill on project performance and decided to apply descriptive research design employing
qualitative and quantitative research approaches. Sampling method was used random sampling
since all the respondents were selected purposely considering they have a direct involvement and
pertinent information that can help the researcher. Descriptive analysis was applied in order to
get the percentage frequent and mean of the respondents data. The likert scale ranging from
strongly disagrees to strongly agree questionnaires were processed and analysis using SPSS V25
and presented in a narrative from by using tables. In this research selected 50 members of the
study, I got the response from 45 surveys were came back at the face-to-face non-public
conferences, and online survey, this means the selected members 90% of the response is came
back, and the remaining 5 response replied from electronic submissions . A gap analysis was
used to compare the reviewed material vs. interpersonal competencies. This research concluded
that project management interpersonal transferrable skills are the ones that will be most highly
sought in selected project performance in Addis Ababa city. The interpersonal skills named
communication, leadership, negotiation, adaptability, and diligence will need to concentrate on
those competencies within performance of project success this research should help construction
project manager and engineers to be aware of interpersonal skills that they need to possess to
improve their performance. Finally the framework provides a sound foundation for future studies
that focused on project managers interpersonal skills.

Key words- project management; interpersonal skills; competency models

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 CHAPTER ONE

INTRODUCTION

1.1. Background of the study

As project management matured as a management discipline there was an increasing recognition
of the value of people in being able to successfully complete. Furthermore inspired and
motivated team members were more likely to achieve project goals than those who were not
(Geue, 2017) the need to interact and network with internal and external stakeholders is
recognized as an essential component of successful project management. Project management
practice can be applied in project based organization as well as in business organization.
According to Kerzner(2009) effective project management practices ensure that the project
would meet not only key techniques objective (budget, time and quality) but also the needs of
stakeholders. On the other hand ineffective project management practices would lead to project
failures. The failure of the project comes from the reasons for maximum mission disasters were
still the problem of various researchers (Pinto& Kharbanda, 1996; Thamhain &Gemmill, 1974;
Andersen, 2010). As I cite in advance those discussions those discussions are approximately
what the sources of failure at the mission and resulted in adjustments within the method to
project management, particularly the most important and complicated techniques of project
control is that concentrate on the interpersonal relationships within project.

Construction managers, also known as construction project managers, oversee and allocate
resources for various construction projects. A great construction project manager is skilled in
both the technical skills required for the job and in leading and directing their team. Construction
project managers oversee all aspects of the building process, working closely with engineers and
architects to develop plans, establish timetables, and determine labor and material costs. They are
responsible for ensuring the project is completed on budget and within scope (CIB, 2002).

This research identify effects of project managers interpersonal skill For any construction project
success, a number of factors play a roles the hard and soft skills of project managers play a role
in the success of a project since these skills enable project managers to better plan, execute, and
evaluate project progress. The hard skills related to project management include planning,
evaluation, monitoring, scheduling, and risk management. On the other hand, now soft skills are

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gaining popularity and include the ability to work with different types of people, leadership,
communication, negation, adaptability, and diligence. Due to the complexity and important of
project managers responsibility studies have been conducted to investigate essential project
managers interpersonal skills for achieving project success.

1.2. Statement of the problem

Project management is the most respect and graceful profession in the whole world at this time.
Patanakul (2011) discusses that people manage projects, schedules, budgets and resources, which
all ultimately lead to success and / or failure, based on how these elements are managed.

Stevenson and Starkweather (2010) note that project success and / or failure is presumably
reliant upon a project manager’s ability to use soft skills; including communicating effectively,
fostering organizational culture, motivating the entire team, managing the expectations of
stakeholders, understanding project objectives and outcomes, effectively solving problems, and
making precise and informed timely decisions.
Pant and Baroudi (2008) found that more focus must be waged upon the individual traits of the
project manager, and how they intricately interact with every aspect of the project, and how that
interaction equates to such success and / or failure of the overall project.
Ravinder and kollikkathara (2017) maintained that those who are successful will have specific
personal skill in addition to technical expertise those skills include leadership, the ability to
foster and manage interpersonal relationship, and the ability to promote open communication
among team members.

Pant and Baroudi (2008) discuss that project leadership, and the successful management of
projects in general necessitates more than technical competence. It is furthered by Pant and
Baroudi (2008) that the skills necessary to handle relationships across the project are even more
essential to achieve stakeholder satisfaction through the entire life of the project. These authors,
like many others further that research must be conducted to understand these relationships, if
they at all exist, to truly understand the balance of both technical competence and interpersonal
traits, as it pertains to project success and / or failure.
Llorens- Garcia et al., (2009) pose that there are specific interpersonal traits of every project
manager that are necessary to foster these generic skills in varying situations and under certain
circumstances.
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According to a report of the Ethiopian parliament in 2021, 91.75% of construction project didn’t
complete as per the time of the plan which caused waste of the country’s resources. This study
was mostly concerned with the construction industry hires civil engineers as project managers
who may have sound technical knowledge but may be lacking interpersonal skills. A lack of such
interpersonal (soft) skills can decrease a project manager’s ability to handle projects efficiently
and effectively, however this study explained the impact of project managers and interpersonal
skills on construction project implementation.

1.3. Research Question

For this research the selected research question is selected from the interpersonal skill:

➢ Is there any relation between project manager leadership and project success?
➢ Is there relation between project manager communications within project success?
➢ Is there relation between project managers Negotiation within project success?
➢ Is there any relation between project manager Adaptability within and project success?
➢ Is there relation between project manager Diligence within and project success?

1.4. Objective of the study

1.5.1 General objective
The overall aim of this study is to see if there was any link between project success and
collaboration between the project manager and project engineer.

1.5.2 Specific objective

The study specifically aims to:

• To determine the relationship exists between project success and project manager
Communication skill
• To examine the link between project success and project manager Leadership skill
• To determine relationship exists between project success and project manager
Negotiation skill
• To examine the relationship between project success and project manager diligence skill
• To determine the relationship between project success and project manager Adaptability
skill

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 1.6 Scope of the study
The study focused on the project managers and interpersonal skill from a solitary geographic
region in the territory of Addis Ababa, Ethiopia. The populace turns into conceivably handling a
profoundly assorted set of projects in conformance which characterized the project life cycle and
a normal gadget that gave fashionable route to the project manager and interpersonal skill in all
projects because of its location and history, Addis Ababa are a giant range of presidency projects
both straightforwardly overseen over seen the governmental or private building project sites,
which could have limited the evaluation's generalize ability.

1.7 Limitation of the study

The purpose of this study was limited to project managers and interpersonal skill on the project
performance of building construction. The idea of the study is broad and high, so it may be
difficult to make it fully accessible and also the research is too large to cover in the limit time
give sampling is required which might have an impact on the general output of the study. Project
managers and engineers work with different sites so that it’s difficult to find all respondents on
sites and it’s mandatory to look for them in different places. Geographically, the study will be
also limited to Addis Ababa sites.

1.8 Organization of the research

Structurally, the paper was being composed of five chapters. The first chapter will presents
introductory materials. The second chapter presents the related literatures review during the desk
research phase of the study. With this background the report presents analysis and interpretation
of the data gathered in the third chapter. Finally the report concludes with the summary and
conclusion of the study and recommendation that are made.

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 CHAPTER TWO

REVIEWS OF THE LITERATURE

2.1 Introduction
Relation among the project manager and interpersonal skill in the coronary of enforced comes of
the improvement projects, whatever project managers consume 90th in their time communicating
with project participants. However a few barriers occur throughout this important approach of
moving project information. Consequently this evaluation paper highlights these constraints and
the way important mission managers family members are with task engineers. Moreover, as
project communiqué should be carefully managed this paper introduces conversation
management because of its expensive price right at the side of the up those pursuits to fulfill the
stakeholders desires through handing over sure hearth comes subsequent.

Relation between the project manager and interpersonal skill is also a wide noted terms that pulls
essential interest all through the literature, in which studies showed that its far the inspection of
every human interaction between fully completely one of a kind parts of the communicate and it
offers meaning and solidity to the conducted activities (Jetu and Riedl, 2012). First and
fundamental the lexicon defines the world communiqué as a result of the approach transmission
and interchanging ideas viewpoint or facts via talking writing or indictors. Communication or the
lack thereof is the challenge highlighted most often by far it is good that most project managers
realize how important effective communication is to project success but it is equally frustrating
to observe how few project managers take concrete step to improve it (Shi and Chen, 2006).

Interpersonal skill is that the important element of project management trade line the desire
strategies of correct coming up with amassing dispensing and retrieving project records a number
of the project members (PMI). It had been noted in literature because of its significance of
developing an accomplice personal relationship technique of records sharing among individuals
at absolutely completely different degrees. On high of that the degree composition of coming up
with turning out with the project communication control is high through fostering a
correspondence the executive orchestrate that help the venture administrator to diagram the
diagram the problematic gathering decisive the records to be shared, and allocating the most
convenient way of communication to satisfy the project dream and client need.

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2.2 Theoretical Literature

2.2.1. The future advancement of project management

Project management is the application of knowledge, skill, tools and techniques to project
activities to meet the project requirements PMI. It is also defined as the application and
integration of modern management and project management knowledge, skills, tool and
technique to the overall planning, directing, coordinating, monitoring and control of all
dimensions of a project from its inception to completion, and the motivation of all those involved
to produce the product and service or result of the project on time, within authorized cost and to
the required quality and requirement and to the satisfaction of participants (Chartered institute of
building).

Globalization brings with it new problem for the demand for increase product and service speed
to market. Project are becoming larger more complicated and difficult to manage the group are
quite diverse and are locate all over the world. Cost constraints drive paintings overseas to low
cost national which creates its own set of problem. The industry is evolving and project
management will need to adapt as well.

As we push the boundaries of what is feasible and encounter new obstacles, new approaches and
higher practices will undoubtedly emerge. Human desire propels us onward toward a better
future, and with it, improvements in how we manage projects. It's unclear when and where these
characteristics will manifest.

2.2.2. Factor influencing project performance

The results of several analyses, Tukel and Belassi (1996) observed that there has been
companion degree sincere deal of variation amongst different types and sectors of comes. The
event enterprise has seen assignment overall performance evaluation that makes a specialty of
character nations, the contribution of stakeholders like buyers, contractors, and consultants,
similarly as technical factors like, among others, stage of style accuracy, constructability, and
protection.
Baloyi & Bekker (2011: 62) researched the causes of the price of able overruns and project
delays at the 2010 FIFA match Stadia in the Republic of the African nation. From a contractor’s
perspective, one in all the most necessary reasons for value overruns turned into the shortage of

7
entire hard work, but for project delays, the tributary elements were all another time the dearth of
whole hard work, poor bobbing up with, and making plans, similarly as labor disputes and
strikes.

Ahadzie, Proverbs & Olomolaiye (2007: 684) investigated the vital achievement standards for a
constructing task in Ghana associated terminated that the “contemporary accomplice and destiny
accomplishment of accomplice degree project probable can be a Personal Relationship of the
viability of the senior group, their imaginative and prescient and management, and so the
combined information and abilities of the business enterprise’s group of workers”. mission
leadership and oversight featured as key elements within the evaluation conducted with the aid of
Odusami (2003: 525) on Nigerian creation comes. This takes a look at tested the Personal
Relationships of a team leader’s warm qualifications, career, leadership trend, and project team
composition at the fulfillment of creation comes. The outcomes tested that the assignment chief's
functionality impressively impacted project execution. Muller & Turner (2007: a try of-23)
tested the cooperation of the task director's authority trend with project as a result of the
numerous variables' Personal Relationships on the mission's completion. Project managers’
leadership designs had been buxom in phrases of intellectual, emotional, and human motion
competency and as compared to the success of their hottest come. Seven traits of powerful
mission managers have been recognized: problem-fixing capacity; results orientation; strength
and initiative; self- assurance; perspective; verbal exchange, and so the flexibleness to barter.

Chua, Kong & Loh (2013: 148-149) listed 10 vital success elements for creation comes. except
for technical necessities, the listing put together capsulate assignment supervisor attributes like
competence similarly as commitment and grade of involvement. Crawford (2000: 13-14)
examined the characteristics of a capable project manager. She bestowed companion analysis of
studies-based totally literature regarding the standards wherein project success is regarding, the
variables that upload to the fulfillment of comes, in addition as an after Personal Relationship of
the undertaking directors' statistics, competencies, and private attributes that unit expected to
persuade to the accomplishment of roaring assignment Personal Relationships. extraordinarily
very observe-up take a look at, Crawford examined senior management’s perceptions of a project
manager’s competency. The Personal Relationships controlled bisect discernments and
assumptions for r assignment the board capacity among challenge directors and their

8
administrators or senior administration. "An underlying trait, it is directly tied to criterion-
referenced powerful and/or exceptional performance across every activity or scenario," she
stated. (Crawford, 2005: eight, 15).

2.2.3. Relationships in projects

Projects are time limited endeavors that have specific performance targets and have well-
adefined agenda and have a limited budget to attain the ones objectives (PMI, 2013). The project
manager is “…answerable for the entire mission and responsible to the management of the
assignment for safety, great, price, development, and all the different project goals. The project
engineer has total duty for his area, which …includes making plans the work and controlling it. It
includes managing whatever comes alongside now and again, there are disturbances to quell,
disagreements to mediate, or troubles to solve… Priorities need to be set to stay inside cut-off
dates, budgets, and the area of what is humanly possible (Plummer,2007, p. 7).

The character in their responsibilities is that they ought to paintings in parallel towards a not
unusual aim (Dasher, 2003; Plummer, 2007). Dasher (2003), “The PM's job is to help the
engineering team and buffer them from the churn generated by means of outside troubles and
questions” (p. 13). The PM has the duty to preserve contact with the stakeholder community,
inner and external to the task, manage resources and organizational battle, controlling scope, and
immediately warfare on the project level in assist of the project engineer (dasher, 2003). The PM
also has the overarching responsibility for keeping group morale, assuring that the team moves
ahead (Compo nation et al., 2008; Dasher,2003). in step with Danilovic and Browning (2007),

The hassle for managers is to discover the proper manner to arrange human beings and assign
paintings time beyond regulation, coordinate movements and enable communication Managers
and engineers must grasp and remember interdependencies and relationships, as well as the
statistics that need to be communicated, in order to take a dynamic approach, now not only
within each area but additionally throughout domains. (p. 301)

2.2.4. Cultural issues in project relationships

The study of relationships among assignment stakeholders crosses cultural borders. Wang and
Huang (2006) addressed the idea of guanxi, a measure of relationship and the non-public
intersection between human beings. In the Chinese language construction industry projects

9
valued guanxi, the relationships fashioned inside the overall performance of the challenge, as an
extra component for project fulfillment than price, agenda, or performance (Wang & Huang,
2006; Chen & Partington, 2004). Yifeng and Tjosvold (2008) found that “…Managers and staff
can work together to support their chief-member connections, which helps with cross-cultural
management” (p. 144). Mäkilouko (2004) in a examine of finish project managers observed that
the most not usual approach through assignment managers changed into ethnocentric, where the
leaders' focus was on juggling roles and formalizing project demands, resulting in team
dissolution. Not particularly, the problem maximum recognized by way of the participants
become negative communication (Mäkilouko, 2004).

2.2.5. Leader –Follower Relationships Theories

The reliance at the instrumental method defined by way of the outstanding project management
associations has been called into question by scholars who have begun to examine the social
relationships inside projects and with the corporations that create them (Frank et al., 2011).
"There is a growing understanding that difficulties are caused by social, cultural, and economic
issues, and hence are more managerial than technical," according to the report. (Harris Salamone
& Kaplan, 2009, p, 291). It turned into also discovered that “particular roles and duties of the
project manager in the direction of project team Project management literature does not discuss
members and their role in project success” (Anantatmula, 2010, p.13).

The role of the project manager is regularly and always discussed in the venture control literature
(Anantatmula, 2010; Kloppenborg & Petrick, 1999; Morris, 2010; Reeser, 1969). The role of the
project engineer has additionally been addressed (Dasher, 2003; Frank et al., 2011; Ivancevich,
1979; Moses, 1993; Philbin, 2008; Powell & Buede, 2006). within the following paragraphs, the
focal point is at the research into the relationships inside tasks.

2.3. EMPIRICAL REVIEW

2.3.1. Introduction
Improving project performance is a common issue in almost all organizations. Project
performance cannot be completely assessed until the project is delivered and used by the
customer (Razmdoost & Mills, 2016). Assessing project performance involves detailed analysis

10
of all aspects of a project (Todorović, Petrović, Mihić, Obradović, & Bushuyev, 2015). As
ongoing research efforts are aimed to develop theories and models for improving project
performance (Williams, 2005), it is necessary to improve understanding of critical competencies
that must be utilized in a project context (Loufrani-Fedida & Missonier, 2015). To specify the
interactions and mix of competencies leading to success, prior research studies have focused on
identifying leadership competencies to develop leadership models (Hollenbeck, McCall, &
Silzer, 2006).

The number of leadership competencies identified in the field of project management has
steadily increased (PMI, 2013), but further research is needed to identify the specific abilities to
manage projects efficiently and successfully - i.e., the competencies required for project
managers in their role as leaders (Wright & Taylor, 1985; Yukl, 1989). In the engineering
management and project management literature, the issue of project manager leadership
competencies continue to provoke debate with regard to their contribution to project success,
which highlights the need for research on leadership competencies to fully understand how they
relate to project performance (Anantatmula, 2010; Battilana, Gilmartin, Sengul, Pache, &
Alexander, 2010; Muller, Geraldi, & Turner, 2012; Nixon, Harrington, & Parker, 2012; Yang,
Wu, Wang, & Chin, 2012). Past studies focused on analyzing and recognizing project manager
leadership competencies (Berg, Karlsen, & Sarkis, 2016) and identified lack of leadership
competence as the reason for many project failures. This competency represents one of the main
reasons for the inability of project managers to organize available resources, to meet stakeholder
expectations, to meet deadlines, and to take corrective actions for improving project performance
(Ogunlana, Siddiqui, Yisa, & Olomolaiye, 2002; Sunindijo, 2015).

2.3.2. Theoretical frame work

Project Manager Leadership competencies and Models

Leadership is “a process of influencing the activities of an individual or a group to achieve

project goals in a given situation” (Hersey & Blanchard, 1982, p. 94). Due to increase in
projectbased organizations, project managers’ competencies with respect to leadership are
becoming more important in research (Kaulio, 2008).

11
According to Loufrani-Fedida and Missonier (2015, p. 1121), competence is “the ability of an
individual, a team, or a company to mobilize and combine resources (i.e., knowledge, skills, and
attitudes) in order to implement an activity in a situation.” Project manager leadership
competencies as critical factors of failure or success are considered a means to assess project
performance (Anantatmula, 2010; Geoghegan & Dulewicz, 2008; Keller, 1992; Kerzner, 1987;
Nixon et al., 2012). Leaders can be effective in some situations but not in all circumstances
(Hollenbeck et al., 2006). A number of studies examine the influence of project manager
leadership competencies (intellectual, managerial and emotional) on project success (Geoghegan
& Dulewicz, 2008; Muller et al., 2012; Müller & Turner, 2010a, 2010b), and project manager
leadership styles (transformational and transactional) on project success or performance (Yang,
Huang, & Wu, 2011; Yang et al., 2013; Yang et al., 2012). However, limited research has been
conducted to examine the relationship between people-oriented leadership competencies of
project managers and their relationship with project performance (Anantatmula, 2008a;
Anantatmula, 2010; Fung, 2014).

The ‘great man’ theory suggests that leadership competency models facilitate the process of
grooming project managers as leaders (Hollenbeck et al., 2006). Project managers, through
leadership competencies, symbolize an important role to motivate people for successful
accomplishment of projects. Effective project managers articulate project vision and develop
project spirit aligned with the project strategy (Shenhar, 2004). Project managers identify
potential risks associated with projects (Hastak & Shaked, 2000), employ a systematic process to
manage risks (Yoon, Tamer, & Hastak, 2014), and communicate important decisions to the
project team members according to the situation (Strider, 2002).

A number of competency frameworks evolved in the field of project management, such as the
International Project Management Association (IPMA) Competence Baseline and the Guide to
the Project Management Body of Knowledge (PMBOK), developed by the Project Management
Institute (PMI, 2013). The IPMA classifies 46 competency elements into three groups: a)
contextual, b) behavioral, and c) technical competencies. PMI (2013), on the other hand,
organizes project management competences into ten knowledge areas of project management.
The IPMA competencies baseline and the PMBOK knowledge areas provide a comprehensive
guide for management of a project in general. Such competency models do not reflect leadership

12
competencies required to improve project performance or achieve the strategic objectives of an
organization (Hollenbeck et. al., 2006). The models of Hollenbeck et al. (2006) and McCrae and
John (1992) refer to personality dimensions and leadership styles, respectively, focusing on
general management theories. Leadership competency models are considered useful for project
managers to accomplish project objectives, as lack of project manager leadership competence is
directly linked with failure of projects (Nixon et al., 2012). Furthermore, project managers
should be efficient in planning, implementation, and completion of project activities (Mantel,
Meredith, Shafer, & Sutton, 2011).

2.3.3. Project performance measurement

Every project is unique, and project performance is measured in terms of successful completion
of the project (Cheng, Ryan, & Kelly, 2012). Project information can be used to analyze and
monitor project success or project performance to establish a knowledge base and enhance the
process of managing future projects (Todorović et al., 2015). According to the Standish Group
International (2015), 29% projects are deemed to be successful, 52% are “challenged” projects,
and 19% are considered a failure. The rate of project success has declined from 34% in 2004 to
19% in 2015.

Project performance has been traditionally defined and evaluated on the basis of the number of
resources required for completion of the project (Razmdoost & Mills, 2016). In accordance with
the “iron triangle,” a project is considered a success when the estimated schedule is met, the cost
is very close to the initial planned budget, and all deliverables meet the requirements of project
stakeholders (Berssaneti & Carvalho, 2015). The short-term aspects of project performance are
focused on iron triangle which are crucial for clients to achieve immediate project success.
However, long-term competitive advantage of projects is also significantly important for clients
and project stakeholders (Berssaneti & Carvalho, 2015; Mir & Pinnington, 2014; Yang, Chen, &
Wang, 2014; Yang et al., 2013).

Literature on project management suggests that new models of project performance should be
multi-dimensional (Todorović et al., 2015). Project performance depends on leadership
competence, organizational control processes, and the perceived relevance of prior performance
(Chen, 2015). In terms of control process, process-oriented performance increases the possibility

13
of integrating the best available resources required to meet the project objectives (Razmdoost &
Mills, 2016). Further, there are two key aspects which improve project performance during
execution: a) project management processes; and b) the working relationship between project
stakeholders (Meng, 2012). Both are related to project leadership. In this study, measures of
overall project performance were based on dimensions of schedule performance, cost
performance, quality performance, and stakeholders’ satisfaction.

2.4. Conceptual framework

Figure 2.1 conceptual framework

Independent Dependent
Variables Variables
Leadership skill

Communication
skill Performance
Negotiation Project Success
Adaptability

Diligence

Source: Developed from Literature

14
The exploration questions and related the alternate degree ratings targeted from the LMX-M
(Wu, 2009) and the project nation questionnaire. The hypothesis became the motive for
inspecting the connection among exchage degree and project achievement.

Those ideas related with conceptual frame work

• There is a relationship between project success and project manager Communication

skill?
• There is a relationship between project success and project manager Leadership
Skill?
• There is a relationship between project success and project manager Negotiation
Skill?
• There is a relationship between project success and project manager diligence skill?
• There is a relationship between project success and project manager Adaptability
skill?

2.5. Knowledge gap

The discussions approximately projects as social entities promote the research into the roles and
interrelationships within projects (Cicmil & Hodgson, 2006). These investigations into the
function of social problems within projects have stimulated the project control Institute to update
its tremendously popular PMBoK guide to consist of dating management (PMI, 2008). The
position of project manager that become as soon as the area of the engineer-manager have been
moving within the path of the professional manager who has specialized project control
education or schooling (PMI, 2008).

The PM/PE management courting is complicate due to the huge impact that every on a hit
execution of the project. Numerous leadership theories were brought which have a strong dyadic
factor (Vroom, 1959; house, 1971; Blanchard & Hersey, 1970; Dansereau et al., 1976). At the
core of every of these theories is the continuum from initiating systems to don't forget. Leader-
member trade theory became decided on as the premise for assessing the relationship between
the project manager and project engineer due to its general recognition.

15
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1. Introduction
Project management has matured steady because the methodology of option to produce new
product, services, and processes (Kerzner, 2009; La Brosse, 2007). Despite the social process of
project management, and therefore the tools developed to assist to regulate comes, area unit
failing at associate degree dire rate (Lawrence & Scanlon, 2007; settler cluster, 2009). The
project manager's leadership qualities are critical to the project's success (Geoghegan &
Dulewicz, 2008; Gehring, 2007). The connection between the project manager and interpersonal
skill with members of the project team has been studied (Cerpa &Verner, 2009; Cicmil, 2006;
Kerzner, 2009; Morris, 1994), however the particular relationship between the project manager
and his/her interpersonal skill has received very little attention (Dasher, 2003).

The goal of the chapter will be to explain the analysis methodology that is to study the
information. The final population will be known and therefore the specific traits of the require
sample cluster were delineates. The subsequent discussion additionally addresses the
instrumentation, validity and responsibility, and approach that were taken to the info analysis.

3.2. Research method and design

The choice of analysis searches an inquiry a question a pursuit a problem exploration
groundwork hunt research look methodology may be a method that's composed of many
elements: (a) the researcher’s worldview and approach to problem-solving; (b) the matter itself
and; (c) the eye that the matter has garnered from the research community (Creswell, 2006;
Neuman, 2003). The aim of the study was to determine the influence, if any, of the link between
the senior project manager on the project standing. The study of the role of leadership in a very
social or behavioral setting is often undertaken in quantitative, qualitative, or mixed strategies
(Neuman, 2003).

16
A quantitative correlation methodology is selected for the study for two reasons:

The first, the tactic permits hypothesis testing, leading to a bigger understanding of the link, if
any, between the independent variables and the dependent variable (Creswell, 2006). The
reciprocity study determines the degree and direction of the link between the dependent and
independent variables.

The second reason for selecting a quantitative methodology is the relative lack of bias that's
inherent in qualitative approaches. There’s no interaction between the research worker and the
members of the take a look at the sample. The research worker performs an analysis of a
collection data that has no information regarding the information supply (Creswell, 2006;
Neuman, 2003).

The questionnaires are prepared and accessible to professionals working on the building
construction site in Addis Ababa, and project managers hire a project leader (project engineer)
for the form.

3.3. Sample size and sampling technique

3.3.1. Sample size determination
The sample was gathered from 119 registered Grade one General Contractors (GC1) and
Building Contractors (BC1) in Addis Ababa who plays their part in various building projects in
the city. The sample was taken from the project-based team for the current project of the
researcher’s choice by submitting a complete questionnaire. The surveys were handed out to the
face-to-face interview of every selected and willing project manager and project engineer.
Moreover, to do this in an effective way I scheduled all of the samples with their own free and
comfortable time to get the fruitful information. At this time Project Management profession is
that the well-known field in several comes that situated in several region of the country and
conjointly the profession has It has its own project management institute (PMI), which is the
world's most prominent institution for project management, and it promoted a project
management method that was extremely revered and well accepted within the project
management community. Project managers and project engineers made up the study's target

17
demographic. It was made up of project managers from construction corporations. The findings
from the study could cause a far better understanding, and inexplicit improvement capability, of
the impact of the PM/PE relationship on project standing.

3.3.2. Sampling technique

First, I was tried to gather information about how many general and building contractors are
registered in Addis Ababa. The data will be taking from construction proxy data. Based on the
proxy data there is 119 General and Building contractors legally registered in Addis Ababa.
Second, I was used simple random sampling to gather information because of many researchers
use two major sampling techniques: probability sampling and non-probability sampling. With
probability sampling, a researcher can specify the probability of an element’s (participant’s)
being included in the sample. With non-probability sampling, there is no way of estimating the
probability of an element’s being included in a sample. If the researcher’s interest is in
generalizing the findings derived from the sample to the general population, then probability
sampling is far more useful and precise. Unfortunately, it is also much more difficult and
expensive than non-probability sampling.

Probability sampling is also referred to as random sampling or representative sampling. The

word random describes the procedure used to select elements (participants) from a population.
When I used random sampling techniques, I was followed the different steps mentioned below
Step 1- Defining the Population
Before a sample is taken, I was first defining the population to which we want to generalize my
results. The population of interest may differ for each study I undertake.
Step 2-Constructing a List
Before a sample can be chosen randomly, it is necessary to have a complete list of the population
from which to select.
Step 3-Drawing the Sample
After a list of population members has been constructed, various random sampling options are
available. Some common ones include tossing dice, flipping coins, spinning wheels, drawing
names out of a rotating drum, using a table of random numbers, and using computer programs.
But I used flipping coins technique.

18
Step 4- Contacting Members of a Sample
Researchers using random sampling procedures must be prepared to encounter difficulties at
several points. As we noted, the starting point is an accurate statement that identifies the
population to which we want to generalize.

3.2. Type and sources of data

The type of data and source for this research I am used qualitative and quantitative data type, and
the primary source and secondary source of data is use by preparing the questionnaire for each
respondent and member of the research by selecting 26 project manager and 19 project engineers
from 119 registered grade one general and building contractors in Addis Ababa City.

3.3. Data collection

This study can be introduced to the chosen project manager and project engineer (PM/PE) from
exceptional constructing sites place in Addis Ababa via using the phone by way of discussing the
huge outline of the look at, follow by direct face-to-face communication. The examiner
population obtain the questionnaires, in which they had been invited to complete the
questionnaire developed from combining the LMX-M (Wu, 2009) instrument with other
questions that asked information about project overall performance.

Table 1 number of interviewees

role Number of interviewees

Project managers 26
Project engineer 19

Table 2 interviewees background (years of experience)

Experience Number of interviewees

1-3 years 8
4-6 years 10
7-10 years 12
11 years and above 15

19
 3.4. Data analysis and presentation
The data analysis was done with the help of an applied mathematics code. The newest version of
SPSS was used as the code. The Pearson product-moment correlation analysis was used as the
study's initial analysis method for hypothesis testing. The tool needs a population that's
unremarkably distributed. The information was first tested to see if it followed the standard
distribution. Once the distribution was tested, the product-moment was calculated for every
independent variable to live the connection between it and also the variable.

The PM and alphabetic character survey results were compared employing a chi-square take a
look at the aim of this testing was to see any similarity between the 2 teams in their responses.
The testing was performed on every independent variable further because the variable.

Records examination becomes performed using the Pearson product-second correlation analysis
of the structured and independent variables to decide the presence of a dating to the reliant
(established) variable. The method become applied to decide whether or not there has been a
relation between the factors: this is, assuming an adjustment of one is joined by an exchange
inside the different. The Pearson product-second correlation was utilized whilst the factors are
share or stretch scale, and while a directly connection between the elements is regular. on this
evaluate, the factors are in a continuum from strongly disagree to strongly agree, framing a right
away area with seven focuses which can be further dispersed. As in step with Cooper and
Schindler (2003), "Correlation coefficients discover the greatness and heading of connections.
The volume is how lots elements circulate as one or resistance" (p. 570).

within the assessment, a really worth of r this is close to i will show that project success has a
courting, potentially causal, to the corresponded exchange variable, with the signal figuring out
the heading of the relationship.

3.4.1. Description of variables

3.4.1.1. Dependent variable

The dependent variable of the study was the project standing as self-assessed by the PM or the
letter every PM or letter was asked to assess the standing of their project in 3 areas: cost,

20
timeline, and performance to their project's requirements. The respondents, who were presumed
to possess a transparent understanding of the project standing, created these assessments. The 3
things that comprise this component of the survey have an associate degree objective basis (cost,
schedule, performance) that was accessible to the survey subjects.
The three project standing items were evaluated using a seven-step Liker-type scale ranging from
strongly disagrees to strongly agree. The participants were asked for the analysis and their
assessment of every question was collected because of the mean of their responses. The
independent variables were also handled in the same way. Associate degree combination figure
of benefit, the mean of the 3 project standing responses, was created and used because the project
standing at intervals of the sample. The figure served as a visual representation of the project's
progress. Higher numbers indicate a lot of success comes and in lower numbers, less success
comes. All projects standing info was confidential.

3.4.1.2. Independent variable

The freelance variables of the study were gathered through the LMX-M instrument (Wu, 2009).
The variables are (a) have a Personal Relationship on, the non-public relationship between
PM/PE; (b) loyalty, the degree to that the PM/PE can support the opposite once challenged; (c)
contribution, the amount of effort by the PM/PE to support the action of labor goals; (d) respect,
the amount of expertise perceived by the PM/PE; and (e) exchange, the amount of reciprocity
perceived within the PM/PE relationship. Every of those dimensions is delineate by 3 things
within the LMX-M instrument (Wu, 2009), that were averaged to form the experimental
variable. Despite the fact that the LMX-M instrument is made up of two property rights
instruments, permission was received to use the instrument.

3.5. Validity and Reliability

3.5.1. Validity test

Validity is a measure of the degree of validity or the validity of a research instrument. An
instrument is said to be valid if it is able to measure what is to be measures or desired.

21
Validity calculation

✓ N=sample size
✓ Degree of freedom (DF)=N-2
✓ Obtain value >critical value in the table
• Sample size =45
• DF=45-3=43
• See the critical value at 43DF in the table
• 43 DF at 0.05=0.2594
• 0.05indicate that the question is95% significant
• C1 obtained value is 0.504 which in > critical value 0.2594 and is highly
significant so it is a valid question.

3.5.2.Reliability tests
Cronbach’s alpha is a measure of internal consistency, that is, how closely related a set of items
are as a group. It is considered to be a measure of scale reliability. A “high” value for alpha does
not imply that the measure is unidimensional. If, in addition to measuring internal consistency,
you wish to provide evidence that the scale in question is unidimensional, additional analyses
can be performed. Exploratory factor analysis is one method of checking dimensionality.
Technically speaking, Cronbach’s Alpha is not a statistical test-it is a coefficient of reliability (or
consistency).

Base on the above explanation reliability test was analyzed by using Cronbach’s alpha test before
achieving further detail analysis of other research of the respondent responses of project manager
and project engineer, because of the assuring that of the collected data was compatible or not to
the next analysis.
Each participant was asked to complete a survey consisting of 5 independent variables. The 5
independent variables of this study, Personal Relationship, loyalty, contribution, respect, and
exchange were every shaped by 3 things. The participants assessed each item on a seven-point
Likert-type scale, with response options ranging from 1 to 5 explained below.

22
Table 3 Likert response indication numbers

no 1 2 3 4 5

Indication Strongly Agree Neutral Disagree Strongly

agree disagree

Before analyzing additional information, we tend should check the reliability of the information
supported by the subsequent reference taken from international researchers. The reliability of the
information is summarized in table three.

Table 4 Reliability rules

23
Table 5Cronbach’s Alpha and independent variable and characterization for PM and PE

Scale Description Item Number PM N=42 PE N=18

Communication The exchange of information Mean of 1,2,3 0.83 0.73
by speaking, writing, or using
some other medium
Leadership Ability to inspire, motivate and Mean of 4,5,6 0.77 0.78
govern
Negotiation Ability to inspire, motivate and Mean of 7,8,9 0.83 0.80
govern
Adaptability Match with unforeseen Mean of 10,11,12 0.87 0.82
changes and hurdles rise to the
top and take their crews with
them
Diligence Careful and persistent work or Mean of 13,14,15 0.77 0.71
effort

The reliability of questionnaire tools is crucial in order to get consistent and pertinent data.
According to Creswell (2018:157), a researcher has three options: Researchers use other research
instruments; modify other researchers' research instruments; or create their own instruments.
Tools were self-developed, modified, and tested using Cronbach’s alpha.

Instruments No Items Reliability Cronbach alpha

Questionnaire 15 0.72

24
The Cronbach’s alpha is 0.72 which indicates a acceptable level of internal consistency.
Cronbach’s alpha results should give you a number from 0 to 1, but we can get negative number
as well a negative number indicate that something is wrong with our data perhaps we forget to
reverse score some items.

3.6. Ethical standards and procedures

According to Rajesh kumer and C.Kandasamy (2012) ethical consideration in research work are
the following

➢ Right to choose everyone has the right to determine whether or not to participate in a
construction research project.
➢ Right to be informed research participants have the riht to be informed of all aspect of a
research task, knowing what is involved how long the task, and what was done with the
data, etc.
➢ Right to privacy all respondents have right to privacy.

The data was first gathered by using a telephone and face-to-face interview, that didn't establish
the information sources. Once collect, there is no methodology to spot the survey participants
apart from their choosing the project manager (PM) survey or the project engineer (PE) survey,
there was also no thanks for connecting project managers with project engineers. The initial
responses interviews were therefore low that the second set of surveys was distributed at a
gathering of the every and each PMs, and PEs returning a completed survey got a sealed
addressed face to face interview that they were asked to deliver to their geographical point.

25
 CHAPTER FOUR

RESEARCH FINDING

4.1. Introduction

Chapters one up to Chapter Three contain the study to analyze whether or not there is a link
between project success and the working relationship between interpersonal skill with the project
manager, project engineer, and project technical lead, wherever the project managers area unit.
The analysis hypothesis was delineated in chapter 3 employing a valid survey that measured the
connection on 5 dimensions called Communication, Leadership, Negotiation, Adaptability, and
Diligence, and connected those characteristics to the 3 criteria for project success: affordable
cost, schedule, and performance targets. Every hypothesis was measured mistreatment associate
degree interval variable, with a Pearson correlation analysis performed on every one of the
alternate hypotheses.

The purpose of this quantitative reciprocity study was to work out through applied mathematics
correlation whether there was no significant link between project success and the PM/PE
interpersonal skill. The information for this analysis was gathered through a survey that was
distributed and interviewed onsite. The info was analyzed using SPSS (V25) latest version to
spot correlations between the relationships and project success measures. The results of this
analysis area unit vital as a result they indicate ways for improvement within the approach that
project managers fancy their interpersonal skill.

4.2. Review of data collection procedures

Two surveys were created, one homeward-bound toward the project manager, and therefore the
different toward the project engineer. The two surveys had identical things within the same
sequence with the words project manager within the survey for project engineers, inside the
project manager questionnaires every question contained seven options ranging from strongly
agree to strongly disagree. The project manager population known for the study was the skilled
project manager and project engineer within the public and private building project set in Addis
Ababa. The target population was chosen as a result of its level of project managers operating in
26
several buildings comes. The invite and choice of the sample were friend’s recommendations and
alone. The project managers and project engineers are well-known renowned and well-respected
professionals and therefore the confidentiality statement within the face-to-face survey was
reproduced in the face-to-face face interview survey.

4.3. Issues related to data collection

The initial survey was taken using taking rough data concerning the study approach and that the
project manager and project engineer are appropriate for the study. Project managers and project
engineers each responded with three replies to this inquiry. The information-gathering season
created additional information assortment smoother and a lot of possibilities for the following
move. In February and March, the rough data was taken from construction proxy website to
develop the first move with my survey concerning of the study members of analysis, which
selected from 119 registered GC1 and BC1 contractors in Addis Ababa. From all contractors I
was selected 50 members of the study,35 study members was selected from general contractor,15
study members of the study was selected from building contractors, it means the study is took
42% of the whole number of contractors.

Then after I was followed the above steps briefly explained in chapter three, I was trying to get
the overall responses from 30 project managers and 20 Project Engineers that point, many
choices were mentioned with leadership. A brief chance to deal with the meeting was granted,
wherever the members were asked to complete the surveys and come them by the tip of the
meeting. From the selected 50 members of the study, I got the response from 45 surveys were
came back at the face-to-face non-public conferences, and online survey, this means the selected
members 90% of the response is came back, and the remaining 5 response replied from
electronic submissions were created within the days once after the private meeting.

4.4. Data analysis procedure

Data analysis is the method of aggregating, conniving, and scrutiny the gathered information in
a very type that enables rational decision-making (Cooper & Schindler, 2003). Exploring
relationships among the variables permits the solution to the analysis inquiries to be induced with
clarity (Creswell, 2006). During this study, the information was collected and therefore the data
things were compared severally and jointly to see the right response to the analysis questions.

27
Descriptive statistics such as mean media scores, Standard deviations, percentages, and
frequency distribution were computed to describe the characteristics of the variables of interest
in the study. These tools should bring out the basic features of the data collected on the variables
under study and provide the impetus for conducting further analysis (Mugenda, 2008). This
offered quantitative and qualitative description of the objectives under study. Data collected was
analyzed using the Statistical Package for Social Sciences (SPSS verstion25) software. A
descriptive and inferential approach was used to analyze the data collected. Data analyzed will
be presented using graphs, tables, charts, and figures. A multiple linear regression analysis will
be applied to examine the effect of project manager’s interpersonal skill on project performance
of building construction

To empirically test the relationship between the dependent and independent variables discussed
so far, particularly whether β1 is statistically significantly positively different from zero, the
following multiple OLS regression model was applied:
𝑛

𝑃𝑃𝑖𝑡 = 𝛽𝑜 + ∑ 𝛽𝑖 𝑥𝑖𝑡 + 𝑒
𝑘=1

𝑃𝑃𝑖𝑡 : Project performance i at time (dependent variable)

𝛽𝑜 : The intercept of equation

𝛽𝑖 : Coefficients of X i t variables

𝑥𝑖𝑡 : The different independent variables for i at time t

t: Time = number of respondent

𝑒 : The error term

Specifically, when the above general least squares model converted into current study

Specified variables it becomes:

𝑃𝑃𝑖𝑡 = 𝛽𝑜 + 𝛽𝑖 (𝐶𝑂𝑀𝑖𝑡 ) + 𝛽1 (𝐿𝐸𝐷𝑖𝑡 ) + 𝛽2 (𝑁𝐸𝐺𝑖𝑡 ) + 𝛽3 (𝐴𝐷𝑃𝑖𝑡 ) + 𝛽(𝐷𝐿𝐼𝑖𝑡 ) + 𝑒

28
 4.5. Analysis
The analysis was done by calculating the chi-square (χ2) statistics by comparing the survey
responses. The survey responses were compressed into three levels of response agree, neutral,
and disagree for each of the independent variables. The test's decision rule is based on the test's
level of significance and degrees of freedom, which is defined as degrees of freedom (DF) = k1
(where k is the number of response categories). The observed and anticipated frequencies will be
near in value, and the chi-square (χ2) statistics will be close to zero if the null hypothesis is
correct. The chi-square (χ2) statistics will be big if the null hypothesis is wrong. A table of
probabilities for the distribution contains critical values. The test for each hypothesis resulted in
the two-by-three matrix, giving a calculation with DF = 2 and a critical value for p = 0.05 of
5.99. Table 3 shows the results of the analysis, which shows that the two waves were uniform in
their response, and had a 5% level of significance. The correct critical value is 5.99, and the
following is the decision rule: If χ2 > 5.99, reject H0.

The null hypotheses (H01, H02, H03, H04, H05) together with H00, addressing project
performance, were restated for chi-square testing to determine the existence of a relationship
between the early respondents and the late respondents. The null hypothesis stated that the
replies of early and late responders were identical. The null hypothesis stated that the replies of
early and late responders were identical. If the null hypotheses could not be rejected, then the
non-respondents would be expected to respond in the same way as the late respondents. If the
null hypothesis was rejected then non-response bias exists and the two waves of responses are
not predictors of the behavior of the non-respondents. The analysis was done by hard the chi
square (χ2) statistics by examining the first and late survey responses. The survey responses were
compressed into 3 levels of response agree, neutral, and disagree for every one of the
independent variables. the choice rule for the takes a look depends on the amount of significance
and therefore the degrees of freedom, outlined as degrees of freedom (DF) = k-1 (where k is the
variety of response categories). If the null hypothesis is true, the discovered and expected
frequencies are moved on price, and therefore the and therefore they are on the brink of zero. If
the null hypothesis is false, then the chi-square datum is massive. Important values are often
found in an exceeding table of possibilities for the chi-square distribution. The take a look at
every hypothesis resulted in the two-by-three matrix, giving a calculation with DF = a pair of and

29
an important price for p = 0.05 of 5.99. Table 3 shows the results of the analysis, which shows
that the two waves were uniform in their response, and had a five-hitter level of significance. The
suitable important price is 5.99, and therefore the call rule is as follows: Reject H0 if χ 2 > 5.99.

The null hypotheses (H01, H02, H03, H04, H05) beside H00, addressing project performance,
were restated for chi-square testing to see the existence of a relationship between the first
respondents and therefore the late respondents. The null hypotheses exhibit that there was no
distinction within the responses between the first and late respondents. If the null hypotheses
couldn't be rejected, then the non-respondents would be expected to reply in the same manner
because of the late respondents. If the null hypothesis was rejected then non-response bias exists
and therefore the two waves of responses don't seem to be predictors of the behavior of the no
respondents.

Table 6 Chi-Square Test Table

30
Table 7Hypothesis Test Summary

No Null Hypothesis Test Sig. Decision

The categories there are no significant One-Sample 0.002 Reject the Null
1 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for project Test
performance occur with equal
probabilities
The categories there are no significant One-Sample 0.101 Retain the Null
2 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Communication occur with equal
probabilities
The categories there are no significant One-Sample 0.032 Retain the Null
3 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Leadership occur with equal
probabilities
The categories there are no significant One-Sample 0.125 Retain the Null
4 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Negotiation occur with equal
probabilities
The categories there are no significant One-Sample 0.005 Retain the Null
5 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Adaptability occur with equal
probabilities
6 The categories there are no significant One-Sample 0.008 Retain the Null
differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Diligence Test
occur with equal probabilities

31
 4.5.1 Testing Hypotheses: the PM/PE Surveys
Data were gathered from project managers and project engineers who were elite by the project
managers who older the survey. The technical leads were treated as an independent sample from
a special population since there was no demand for the project managers to pick a project
engineer who worked on an equivalent project. The null hypothesis for the takes a look posited
that there was no important distinction between the project managers’ and therefore the project
engineers’ perception of the six things tested within the surveys. the information was compressed
to a few classes disagree, neither agree nor disagree, and agree, as a result of the chi-square tests
came invalid results caused by a variety of zero rows within the project engineer survey as a
result of the tiny number of surveys came. The comparisons were between PM and PE
performance; PM and letter Personal Relationship; PM and Communication; PM and
Leadership; PM and Negotiation; and PM and Adaptability, and PM and Diligence. The results
area unit is displayed in Table eight.

Table 8 comparing the project manager and project engineer survey to determine
similarity between two samples

No Null Hypothesis Test Sig. Decision

The categories there are no significant One-Sample 0.000 Reject the Null
1 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for project Test
performance occur with equal
probabilities
The categories there are no significant One-Sample 0.164 Retain the Null
2 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Communication occur with equal
probabilities
The categories there are no significant One-Sample 0.566 Retain the Null
3 differences between early and late Chi-Square Hypothesis

32
 respondents’ perceptions for Test
Leadership occur with equal
probabilities
The categories there are no significant One-Sample 0.125 Retain the Null
4 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Negotiation occur with equal
probabilities
The categories there are no significant One-Sample 0.051 Retain the Null
5 differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Test
Adaptability occur with equal
probabilities
6 The categories there are no significant One-Sample 0.23 Retain the Null
differences between early and late Chi-Square Hypothesis
respondents’ perceptions for Diligence Test
occur with equal probabilities

4.5.2 Testing Hypotheses: Comparing Surveys

Table two compares the responses of the project managers and project engineers who submitted
completed surveys. The null hypothesis in every take a look was that there was no distinction
between the project man and project engineers’ surveys of the dimension being studied. This
supports the concept that the two teams had similar approaches

Null Hypothesis 0: There is no difference in how project managers and interpersonal skill view
in project performance.

The results of the tests were that the null hypothesis was rejected. This means that the two survey
area units are different. This result implies that project managers and interpersonal skill have
dissimilar perceptions of project performance.

33
The null hypothesis was retained based on the outcomes of the tests. This implies that the two
polls aren't completely dissimilar. This result implies that project managers and interpersonal
skill have similar perceptions of impact.

Null Hypothesis 1: there's no distinction between project managers’ and project engineers’
perceptions of Communication

The results of the tests were that the null hypothesis was retained. This means that the two
surveys aren't different. This result implies that project managers and interpersonal skill have
similar perceptions of communication.

Null Hypothesis 2: There is no difference in contribution views between project managers and
leadership.

The null hypothesis was retained based on the outcomes of the tests. This implies that the two
polls aren't completely dissimilar. This finding suggests that project managers and project
engineers have comparable leadership views.

Null Hypothesis 3: there's no distinction between project manager and project engineers’
perceptions of negotiation.

The null hypothesis was retained based on the outcomes of the tests. This implies that the two
polls aren't completely dissimilar. This finding suggests that project managers and project
engineers have comparable negotiation views.

Null Hypothesis 4: The perspectives of project managers and project engineers on the
adaptability are the same.

The results of the tests were that the null hypothesis was retained. This means that the two
surveys aren't different. This suggests that project managers and project engineers have similar
perceptions of adaptability.

Null Hypothesis 5: The perspectives of project managers and project engineers on the diligence
are the same. The results of the tests were that the null hypothesis was retained. This means that
the two surveys aren't different this suggests that project managers and project engineers have
similar perceptions of diligence.
34
 4.6. RESULTS OF THE STUDY HYPOTHESIS

4.6.1 Project managers

The sample collected within the study was 27 project managers of a population from 119
registered Grade one General Contractors (GC1) and Building Contractors (BC1) in Addis
Ababa who played their part in various building projects in the city. This sample depicted
22.68% of the population. The project managers were asked to self-assess their project
performance, which resulted in the creation of the variable project performance. The variable
was tested and therefore the null hypothesis, that the info was unremarkably distributed, was
rejected, which implies that the info isn’t ordinarily distributed. Figure one shows the SPSS
analysis of the variable’s distribution.

Table F1 in Appendix shows the correlation of the 5 analysis inquiries from SPSS to project
success for the project managers. A 95% confidence level was wont to confirm if the null
hypothesis, that there was no relationship between the variable (project performance) and
therefore the experimental variable (personal relation, loyalty, contribution, respect, exchange),
was rejected.

4.6.2 Project engineers

The sample collected within the study was 18 project engineer’s elite by responding project
managers from 119 registered Grade one General Contractors (GC1) and Building Contractors
(BC1) in Addis Ababa who played their part in various building projects in the city. These drawn
15.12% proportion of the attainable population. The project engineers were asked to self-assess
their project performance, which resulted in the creation of the variable project performance. The
variable was tested and also the null hypothesis, that the information area unit was commonly
distributed, wasn't rejected, which implies that the information was commonly distributed.
Figure 2 shows the Minitab analysis of the variable’s distribution.

Table F1 in Appendix F shows the correlation of the 5 analysis inquiries from SPSS to project
success for project engineers. A 95% confidence level was wont to confirm if the nullhypothesis,
that there was no relationship between the variable (project performance) and therefore the
experimental variable (personal relation, loyalty, contribution, respect, exchange), was rejected.

35
 4.7. Linear regression - results and analysis
After the necessary pre-processing and setup on the software tool, the data was subjected to
Linear Regression analysis. In the following sections, we present the results obtained while
testing each of these hypotheses. Furthermore, in light of the regression output, we discuss the
underlying concepts that explain the subject in more detail. Results obtained from the
questionnaire survey were exported to SPSS software package.

Table 9 Model Summary

Model R R Adjusted Std. Error of Change F Df1 Df2 Sig. F

Square R Square the estimate statistics change change
R square
change
1 0.503 0.253 0.133 1.20795 0.253 0.655 15 29 0.805

a. Predictors: (Constant), My project engineer will return it when I give effort at work, My
project engineers would come to me defense if I were 'attacked' by others, My project
engineers is willing to apply extra efforts, beyond those normally required, to help me
meet much work goals, My project engineers is impressed with my knowledge of my job,
My project engineers likes me very much as a person, My project engineers will
eventually repay me if I do something for his/her, My project engineers does not mind
working his/her hardest for me, I have a friendly communication and attachment with
project engineers and other , My project engineers would defend me to others in the
organization if I made an honest mistake, My efforts are reciprocated by my project
engineers, My project engineers admires my professional skills, My project engineers
defends my work actions to a superior, even without complete knowledge of the issue in
questions, My project engineers provides me with support and resources that go beyond
what is specified in his/her job description, My project engineers things it is a lot of fun
to work with me, My project engineers respects my knowledge and competence on the
job

36
Table 10 ANOVA

Model Sum of df Mean F Sig.

Squares square
1 Regression 14.327 15 0.955 0.655 .805b
Residual 42.315 29 1.459
Total 56.64 44

b. Predictors: (Constant), My project engineer will return it when I give effort at work, My
project engineers would come to me defense if I were 'attacked' by others, My project
engineers is willing to apply extra efforts, beyond those normally required, to help me
meet mu work goals, My project engineers is impressed with my knowledge of my job,
My project engineers likes me very much as a person, My project engineers will
eventually repay me if I do something for his/her, My project engineers does not mind
working his/her hardest for me, I have a friendly communication and attachment with
project engineers and other , My project engineers would defend me to others in the
organization if I made an honest mistake, My efforts are reciprocated by my project
engineers, My project engineers admires my professional skills, My project engineers
defends my work actions to a superior, even without complete knowledge of the issue in
questions, My project engineers provides me with support and resources that go beyond
what is specified in his/her job description, My project engineers things it is a lot of fun
to work with me, My project engineers respects my knowledge and competence on the
job.

37
Table 11 Coefficients

Model Unstandardized Standarded t Sig. 95%confident

interval for B
coefficient coefficient
B Std. Error Beta Lower Upper
bound bound
(Constant) .471 .197 2.39 .018 2.173 6.006

Communication skill -.278 .061 -.241 -3.26 .001 .329 .322

Leadership skill .108 .063 .088 1.36 .000 .496 .443

Negation skill .337 .067 .317 5.23 .017 .139 .476

Adaptability skill .176 .072 .161 2.36 .000 .270 .561

Diligence skill .424 .057 .409 7.41 .000 .366 .591

The results shows that among the skills set, the highly influential skills of project manager on
project success include diligence skills (β=.424, P<.05); Negotiation skills (β=.337, P<.05);
Adaptability skills (β=.176, P<.05); and Leadership skill (β=.108, P<.05). The results for
communication skills turned out to be negative and significant (β= -.278, P<.05); and
insignificant for coordination skills (β=.091, P>.05). The interpretive structural model shows
that the project success is dependent over the independent variables called personal relationship,
loyalty, contribution, respect, and exchange. This hypothesis was tested using regression analysis
and was found to be true. The project success (Dependent Variable) is positively influenced (β
=0.503, σ=0.655) by the five variables (Independent Variables) with R2=0.253 which is
significant. The project execution is undertaken through the various units which in turn
associated to different projects. Besides, the project manager controls the overall project
performance containing projects and thereby his decisions will influence projects directly.

38
 4.8. Major findings
The study results indicated that for project managers there was significant correlation in the five
hypotheses, where the null was rejected. There was a significant relationship between project
performance scores and the project managers’ communication, leadership, negotiation,
adaptability, and diligence scores. The indication is that there is a possible causal relationship
between the project manager’s perceptions of the relationship with the interpersonal skill and
project performance. The null hypothesis, that there was no significant relationship between
project performance and the project manager-Interpersonal skill relationship, Not only the
decision for continuation or termination of projects do lie with the project manager, but also
allocation of resources, prioritization of projects over a constrained resource etc. is at his
discretion. These decisions in turn have a bearing on how projects are executed by the project
manager and thereby resulting into overall project performance management.

This may indicate that the relationships studied here were less important to the project engineer
than to the project manager. The knowledge baseline related to the reasons for project
performance appears to have been increased.

39
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1. Summary
The goal of this analysis was to realize further insight into the connection between the project
managers with interpersonal skill. A quantitative-correlational approach was used to see if there
was a relation between project manager with interpersonal skill and project success. The
populations designated for this study was the well-respected professionals of project managers
and interpersonal skill all are playing them add completely different building sites set in Addis
Ababa at the time of the study. The study’s dependent variable was a self-assessment by the
respondents of the project’s performance, budget, and schedule as a part of the study survey. The
connection between the project manager and interpersonal skill was measured via two surveys
employing a Likert-type scale (Agree and Disagree). One survey was custom-built for project
managers, and also the different for project engineers.

The project manager does need to possess the right values and should also possess good
interpersonal skills. Project managers need to have good leadership skills and should know how
to promote team building within its members. Other skills necessary include a good decision
maker, negotiator, motivator, and communicator. From 50 members of the study,35 study
members was selected from general contractor,15 study members of the study was selected from
building contractors, it means the study is took 42% of the whole number of contractors and also
overall responses from 30 project managers and 20 Project Engineers selected 50 members of the
study, I got the response from 45 surveys were came back at the face-to-face non-public
conferences, and online survey, this means the selected members 90% of the response is came
back, and the remaining 5 response replied from electronic submissions were created within the
days once after the private meeting.

The project success (Dependent Variable) is positively influenced (β =0.503, σ=0.655) by the
five variables (Independent Variables) with R2=0.253 which is significant. The project execution
is undertaken through the various units which in turn associated to different projects.

40
Five hypotheses were articulated to deal with the study objective. Every hypothesis was used to
distinguish any association between the dependent and independent variables. The technique
does not display the result to verify the presence of a linear. The Pearson product-moment
correlation was the link. To analyze the impact of many waves of response, a close non-response
analysis was used.

5.2. Conclusions
This quantitative descriptive project was designed to work out if there was any relationship
between the two (two people maintaining a sociologically important relationship) relationship
between the project manager with interpersonal skill and project performance. The objective of
this study was to identify interpersonal skill which significant influence on the project success
the. Study was based on Ethiopian context and data collected from project manager and engineer
through random sampling. Results indicate that among the leadership skill, communication skill,
negation skill, adaptability skill, diligence skills are the most important interpersonal skill which
have significant influence on project success.

Interpersonal skill in the other word communication skill and other skill are necessary in
construction management, because they allow you to create relationship with people. Established
contact and proper interpersonal skill allow you build and maintain good relationship with
people and exert the desired influence on people. The results show that communication is
fundamental to the development of leadership and others ability and effective management in
order to product successful projects. The construction project managers and engineers in
developing their leadership, negation, adaptability, diligence and communication abilities
through improved communication improve their management and leadership ability ensuring the
successful execution of projects.

5.3. Recommendations
According to Vaagaasar (2011),“technical competencies mustn't be the only issue once assessing
what competencies, the team ought to possess” (p. 304). The relationships that the project
manager and interpersonal skill connection with the stakeholders of a project together with. The
research also recommendation that building construction project participation join profession

41
groups to regulation that industry and ensure that all have requisite skills to boost project
performance while also contributing to economic development and job creation.

The model is predicated on the influence of

• Communication this is probably the most important project managers and engineer
who are good communication are able to help teams understand the scope of their duties
and solve problem as they arise if project manager is not able to clearly communication
expectations a project will be more complicated than necessary from the very start
project manager who are still developing their communication skills can benefit from
taking time each day to think about what their team need to know and then conversing
with them about those they also benefit from making an effort to listen to their team
members
• Leadership skill leaders can inspire and motivate team members to achieving project
goals Project managers who want to refine their leadership skills can begin by finding
new ways to provide team members with regular feedback on their progress.
Additionally, they can work on managing stress in order to approach difficult situations
with a strong, composed attitude.
• Negation skills allow project managers to swiftly and effectively reach agreements with
their crew members and find common ground with them, even when disagreements
arise. Successful managers are known for their negotiation skills—they can quickly
reach an agreement with their allies and find common ground with their rivals. They
know how to make stakeholders work out so that everyone wins, which makes their
teammates respect them. Project managers who want to improve their negotiation skills
can try to be more flexible and let others win instead of taking the credit for themselves.
• Adaptability Project managers who can adapt to unforeseen changes and hurdles rise to
the top and take their crews with them. Adaptable project managers are quick on their
feet and are ready to adjust expectations and plans when necessary. They also anticipate
potential pitfalls and plan ahead for ways to adapt to trouble down the road. For the
most part, becoming more adaptable is a shift in attitude. Adaptable project managers

42
 and engineers accept that things may not go according to plan and mentally prepare for
snags.
• Diligence skill Successful project managers work hard and do members right so that the
rest of their team can do the same. They also work hard and pay close attention to every
detail, which helps them outperform and outplay the competition. Project managers can
learn to be responsible by keeping their daily promises and meeting their goals.

43
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 APPENDIX

Questioners
I am preparing a research on the interaction between project managers and interpersonal skill on
project performance of building construction sites in Addis Ababa to meet the requirements of
obtaining a Master's Degree in Project Management at St. Mary’s University.

In order to be able to prepare this research, a questionnaire was designed to collect data and
opinions related to its paragraphs.

Please respond to this questionnaire with all the accuracy and objectivity that we expect from
you. There is no doubt that the opinions and information you provide will be completely
confidential and will necessarily enrich this research.

Personal and Functional Information

Demographic Information

1. Sex: A. Male B. Female

2. Age: A. 19-28 B. 29-39 C.40-55 D.56 and above

3. Levels of Education: A. Degree B. Master’s Degree C. PhD and above

4. Number of years experience at the construction project

A. 1-3 B.4-6 C.7-10 D.11 and above

5. Position: _ A. project engineer B. project manager C. other

50
Instruction: please give an explanation to open ended questions.

1. What kind of communication method is effective to project manager?

2. How communication is important for project manager?

3. Is effective communication enough on project manager level? Why

The following questions concern your relationship with your supervisor. Please indicate how
much you agree or disagree with each statement.

How strongly do you agree or disagree that the statement describes your feelings

5= Strongly Agree 4= Agree 3= Neutral 2= Disagree 1= Strongly Disagree

1 2 3 4 5

Leadership
project managers are defending others work actions to a
superior, even without complete knowledge of the issue in
questions

project managers are true leaders

project managers are leading their work practically than

51
theoretically

Negotiation
Project managers are effectively reaching agreements

Project manager always know some situations require give

and take

Project manager always to be more flexible

Adaptability
Project managers are always adapting with the unforeseen
changes

Project managers are always quick on their feet and ready to

adjust expectations and plans

Project managers are accepting the plans and mentally

prepare for snags

Diligence

project managers are do not mind working /her hardest way

project managers are willing to apply extra efforts, beyond

those normally required

project managers are providing support and resources that

go beyond what is specified in job description

52
 Survey Instrument Project managers and Engineers questionnaire

Project Information

1 2 3 4 5

1 The project is
Triple Constraint on schedule

2 The project is
within budget

3 The project
meets the
scope

Project Manager and Project Engineer Survey

Scale Description No of 1 2 3
Questio
n

Leadership Ability to 1 project

inspire, managers are
motivate and defending
govern others work
actions to a
superior, even
without
complete
knowledge of
the issue in
questions

53
 2 project
managers are
true leaders

3 project
managers are
leading their
work practically
than
theoretically

Negotiation Discussion 1 Project managers

aimed at are effectively
reaching an reaching
agreement agreements

2 Project manager
always know
some situations
require give and
take

3 Project manager
always to be
more flexible

Match with 1 Project managers

unforeseen are always
Adaptability changes and adapting with the
hurdles rise to the unforeseen
top and take their changes
crews with them

54
 2 Project managers
are always quick
on their feet and
ready to adjust
expectations and
plans

3 Project managers
are accepting the
plans and mentally
prepare for snags

Diligence Careful and 1 project managers

persistent work are do not mind
or effort working /her
hardest way

2 project managers
are willing to
apply extra
efforts, beyond
those normally
required

3 project managers
are providing
support and
resources that go
beyond what is
specified in job
description

55
Appendix Study Results
Table F1 Correlation Results for Project Manager Survey Performance

Variable Correlation Significance

Communication 0.529 0.127*

Leadership 0.991 0.002**
Negotiation 0.404 0.037**
Adaptability 0.197 0.324*
Diligence 0.218 0.275**
Note. *p < 0.05, ** p < 0.01.

Note: **Significant at 0.01 levels (Two tailed)

Table F2 Correlation Results for Project Engineer Survey Performance

Variable Correlation Significance

Communication -0.123 0.626
Leadership 0.158 0.530
Negotiation -0.197 0.433
Adaptability 0.193 0.547
Diligence 0.170 0.499
Note. *p < 0.05, ** p < 0.01.

56
Table F3 Critical Value for Correlation Coefficients

57