Impact of Leaders’ Organizational Behavior on the Satisfaction and Well-Being of Project Managers

Abstract

Project managers (PMs) who are middle-level leaders at the project level report to superiors in the headquarters who are top-level leaders. Other studies have focused on how PMs as middle-level managers lead teams at the operating level, with scant emphasis on the dynamics between the top-level leader and PMs. This research investigates the effective organizational behaviors that companies and top-level leaders adopt when managing PMs so that they achieve good job outcomes. A mixed-methods research design comprising survey with PMs and interviews with top-level leaders was employed. Data were collected via an online survey using a structured questionnaire and in-depth interviews via video calls. It was found that top-level leaders adopt a mix of custodial, collegial, and supportive organizational behaviors when managing PMs. However, the study found that the custodial organizational model, which depends on monetary benefits and economic resources and is frequently used, is associated with increased absenteeism rates among PMs and not associated with positive job outcomes. The study reveals a significant finding: adopting both supportive and collegial management models correlates strongly with increased job satisfaction, salary contentment, and internal work motivation among PMs. The contribution to knowledge is highlighting that a combined approach to organizational behavior yields excellent job outcomes for PMs, emphasizing the need for a balanced and nuanced approach. The study’s practical contribution lies in the actionable recommendations offered to top-level managers for effectively managing PMs. These findings have practical applications for strategic management in architecture, engineering and construction (AEC) organizations. To effectively manage PMs, organizations and top-level leaders should empower PMs by providing them with the resources necessary to take ownership of their projects. Top-leaders must clearly define the roles and authority of PMs, ensuring they understand the organization’s strategic direction and its impact on project objectives. For decisions that are not high-stakes, PMs should be allowed to make choices independently, with the top-level leader offering supportive leadership. When it comes to decisions with significant risk, a collegial leadership is recommended, where top-level leaders and PMs collaborate to share the decision-making process. However, for highly uncertain decisions, top-level leaders should make the decisions themselves. Routine problem-solving should be managed by PMs using available resources, but top-level leaders should address critical problems. To promote a collegial culture, leaders should prioritize identifying solutions over assigning blame. Finally, organizations should establish performance-based incentives to reward PMs for their achievements. Recognition of PMs’ performance should go beyond monetary rewards and include public acknowledgment and opportunities for special assignments.