Essay Historical Context

11193 Words Sep 8th, 2014 45 Pages
Management Control of Project Portfolio Uncertainty: A Managerial Role Perspective
Tuomas Korhonen, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Teemu Laine, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Miia Martinsuo, Department of Industrial Management, Tampere University of Technology, Tampere, Finland

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ABSTRACT ■
This article presents empirical results on different managers’ viewpoints regarding the sources and management of project portfolio uncertainty. As a key result, this study demonstrates the versatility of uncertainties experienced by managers, the limited degree of
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We see uncertainty as a lack of information considering performing certain tasks (Galbraith, 1973, p. 5), a long time span of definitive feedback (Lawrence & Lorsch, 1967), and an overall lack of goal or causality information (Thompson & Tuden, 1959). If project portfolio uncertainties are not managed, the result might be either inadequate utilization of positive developments or inadequate shielding from negative ones. Sources of uncertainty and their management have increasingly become a concern for PPM, in managerial practice and in research (Martinsuo, 2013; Petit & Hobbs, 2010). Less is known, however, about individual managers’ perceptions on uncertainties, their span and means of control over the uncertainties, and how the company-level pattern for managing uncertainties in the product development portfolio is constituted. Altogether, there is inadequate knowledge of the sources of project portfolio uncertainty and the means to manage those uncertainties—with “situated actions” (Jerbrant & Gustavsson, 2013, p. 167). The literature on project portfolios is largely based on studies of research and development (R&D) (Blomquist & Müller, 2006, p. 53), where uncertainty can be reduced by using management control systems for producing information about uncertain business phenomena (Davila, 2000). In practice, in every company there is some sort of a management control system, be it formal or informal and these systems also entail PPM

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