Review and Critique of Operations Management in H&M: A Business Report

This report provides a comprehensive review and critique of H&M's operations management. It begins with an introduction to H&M, followed by an explanation of the difference between operation and operations management. The report reviews and critiques the implementation of operatio...Read More

ID
Unit Number and Title Unit 187 – Operations and Project Management
Title Review and Critique of Operations Management (Part 1)
Project Life Cycle (Part 2)
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Table of Content
Part 1: Business Report
1. An introduction to chosen organization p
2. An explanation of operation vs operations management p
3. A review and critique of the implementation of operations
management principles within the chosen organization p
4. An analysis of the extent to which the operations management of
the organisation in the case study meets the requirements of the
organization p
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles p
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization p
7. Conclusion p
References p
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INTRODUCTION
Operation management is defined as a process which will helps businesses to deal on
day to day business related issues with the specific strategy. Whereas, the project
management simply uses some kind of tools, skills and such techniques. The report will
include the overview about the organization which is H&M. More, the report will discuss the
operations and the operation management function as well. It will also include the basic
principles of lean and identifies its application to the business. Furthermore, it will include
the explanation on the operational management as which helps the company to properly
analysis the present requirements of the operations.
1. An introduction to chosen organization
H&M is the multinational brand of clothing, it is the biggest retailer. It is continuing on
expanding their business into Europe and counted as the largest online retailer. It is also
known as the fastest growing in fashion brand for the clothing of the children, teenagers, men
and women as well. It has its biggest competition Zara, H&M relies on with the higher value
of sales as well as the inexpensive cloths (Bamana, Lehoux and Cloutier, 2019). It shows that
the brand is making its profits by having a proper merchandise turnover which are supplying
the products as well.
Aims-
 To improving quality of their store in next two years.
 To have more job availability within another year.
 To spread the range of the online store in upcoming years.
Objectives-
 To producing the better quality of goods and services which are at the fair price.
 To offering such better and objective environment.
 To become a one of the best Britain's retailer which helps to satisfy the needs of the
customers.
2. An explanation of operation vs operations management
Definition of operations
Operations defined as a process for functioning and the working activity, which
simply refers to that managing some different kind of tasks as well as activities which are
operated inside the company.
Operation function
It is basically defined as the process who are the handler of all the activities and
several types of things which includes the production, manufacturing and selling of such
goods and services.
Operation management
It is defined as a tool which use for organization, staffing, planning as well as
controlling and supervisor of the particular team which are working together in the same
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production house and maintain the process which are in relation with the other management
services.
Apply to the H&M with specific example
Every department has its own manager likewise, operations department has its
operation manager which monitors all the activities which are conducting within the
organization. The business is taking a step ahead with the many new technologies which are
implementation in their business and proper use for the data related problems which are
helping for running the proper operational management activities.
3. A review and critique of the implementation of
operations management principles within the chosen
organization
H&M's operation department are specialized with handling such king of marketing
related issues and formulate some benefits which are having a positive impact on the sales of
the brand as well. The company offers the better range of products which having a proper
quality and the performance as well (Bonilla and et.al., 2019). The business would know the
better quality of clothing and the other products which may attract many customer base which
are in a favor of the organization.
There are the 10 operation management principles which are weakened by the
organization but this may still make it more profitable for the business and implemented by
H&M.
Organization- it clearly shows that all the principles are interrelated with each other
whereas, it shows a necessity to having a more consistency on to the process which are
attempting by the organization for having a proper and positive outcome as well. With the
operation's management H&M are specifically needs to undertake the production of which
helps in the planning and controlling the proper consistency into the different type of
processes.
Reality- in H&M the operation manager also be focused on such issues which instead
of just know about the problems and needs to be faced accordingly.'
Accountability- it basically shows that the people who are working with the
organization or within in the organization it will need to put the specif roles and
responsibilities which should be maintained by the operation manager and increases the
profitability through making every employee a part of particular duties as well.
Humility- it shows that the company needs to be understands the situation and respect
for the employees must be allowed which leads to avoid any kind of cost related errors as
well as the trial. It refers to the both time and money as well which are simply be saved form
the positive outcome in the future.
Quality control- it refers to the process which are appropriate for maintain the quality
related to the management which are at the place of such products and the other services
which ensuring about the control over the quality as well (Chawla and et.al., 2021). It is
basically involves the monitoring the facilities which are related to the raw materials and to
helps in the logistics which are related to the supply chain as well.
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Success- for the better success it is necessary to have a most achievable operation in
which it helps the customer to be more specified with their choice as well.
Know the competition- it is basically optimized the operation for the important
operations which are mostly happy with their products and services which are received by the
customers.
Causality- it shows the report which helps to identify the proper status of the reports
which are properly helps to identify such problems which are related to the business and
creating the issue between the work.
Consumer collaboration- in the next principle it shows that the organization is more
willing to understand the customer's satisfaction level which shows that it is within the
organization and how it is showing to the company.
4. An analysis of the extent to which the operations
management of the organisation in the case study
meets the requirements of the organization
There are some objectives which are used in such cost reduction and in the productivity as
well.
 To reduce the unnecessary cost of the production within some months.
 To increase a proper quality in the next year.
 To increase the business productivity within this year.
Operation management helps to fulfilling the current requirement of the business
It shows that the operation management always helps the businesses to fulfil its
requirements related to the resources or equipments which are probably in the use of such
services as well. There is a different kind of operations functions which are probably counted
as the focussed factor of the business for the perfect marketing strategies (de Oliveira and
et.al., 2020). When it usually helps to measure the technologies which helps to figuring out
such situations and decreases the costs as well as the helps to increases such kind of
productivity as well.
It is specifically helps to identify that the operations' management of H&M always
allows to get the basic requirements which will help such stakeholders to make and effective
decision regarding the requirements and increases the better quality. It shows that the another
aspect will easily help to determine such developing and selling needs of the customers in the
market. There are some essential parts which helps to create a better environment through the
operations' management. It shows that this management is necessary for the improvement
which are having with the proper taste and preferences of the customers as well.
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles
The continuous improvement helps to identifying many opportunities which are
always helps to reducing the waste which helps in a continuity of the work as well. It is also
basically known as the continuing process which are simply helps to have a proper
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improvement in the product as well as the quality of their service as well. There are five lean
principles:
Identify value- it is a must needed function which helps to identify the value of the
team work of the company.
Map value stream- it helps to visualize the correct part in which it helps to create a
proper customer base.
Create flow- this includes the task which are properly and systematically completing
by the employees.
Establish pull- it always ensures that the tasks assignments are completing on its
given time.
Seek constant improvement- it shows that there is a continuous plan in which it
helps to relate with the proper management as well.
Methods used in a lean production
kaizen- it is called as a simple approach which used to help in a continuous
improvement in which it basically shows the different type of ideas as well.
Just in time- it shows that the inventory system which are in the use of the
management strategy for aligning such raw materials which are ordered directly by the
retailers.
Kanban- it is basically as inventory control system which used to have in a just in
time for tracking out the production as well as the shipments as well.
Andon- It is called as a system in which it helps to alert the operators by which if they
see any kind of issues or problems with their operations.
H&M is using the and applying the Kaizen model which helps them in their operation
management for having a proper continuous improvement in their organization (Fettermann
and et.al., 2018). It basically shows to applying the for reducing such wastes and helps to
enhance the productivity level which are not interrupted as well and helps for the continuous
improvement as well.
Stock control- it is basically refers to the marketing in which it helps to know about
the process for measuring the stock which are basically helps to know the exact amount of the
stock left and which is going to be use in effective manner.
SIX SIGMA
Define- it refers to the problems which are always related to the requirements on such
expectations which helps to fulfil with the customer's need as well.
Measure- it is simply used to help the H&M to measures the process which helps in a
collection of data.
Analyse- it is basically called that such process which is using by the H&M and
identify the problems.
Improve- it is basically used for the elimination of such problems which are analysed.
Control- this shows to correct the mistake and assure to not repeated the same.
Continuous development plan
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Kaizen- it is used by the H&M to make such improvements which helps to have more
beneficialor the employees and organization as well.
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Pros-
 To improve the quality of team work. To ensure about the group who are performing their task in effective manner.
Cons-
 It may create a difficulty sometimes. It may basically need a trained staff.
Quality circle- it shows that the team members are working on the same task with the
better quality of assignments.
Pros-
 to promote team work. To develop better attitude in the members.
Cons-
 Employees did not get the proper training. Management is not supportive.
Benchmarking- basically helps to improve and helps to establishing such baselines in
the H&M.
Pros-
 Helps to set up the high performance level. To monitors the proper performance.
Cons-
 Not have a proper training as well (Singh and et.al., 2021). Do not have any support from any department.
TQM- it has a clear objective which are involved in the H&M's improvement.
Pros-
 To providing the better customer satisfaction. To increasing the market which helps to increase the market image as well.
Cons-
 Sometimes it may create a problem which decreases the customer satisfaction. It consumes more time.
SCM- it counted as to know the proper process for the raw material as well as the
production.
Pros-
 To increase the revenue. Have a proper control over the costs.
Cons-
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 To increase the revenue. It creates an unnecessary issue.
ERP- it may create many opportunities for the increasing up the proper resource
planning for having a proper profit.
Pros-
 It has a proper management. To offer the better quality.
Cons-
 It is not worthy some times.
 Not have a proper quality as well.
6. A continuous improvement plan, including your justified recommendations
for improvement, based on your review and critique of operations
management principles within your organization
Pros Cons Recommendation
Taylor's scientific
management
 It helps to
enhancing the
production
(Javed and
et.al., 2020).
 It has an ability
to making the
quick decisions
 It needs a very
huge capital.
 It may create a
loss and
sometimes
unemployment
as well.
It can only be adopted
by H&M which needs
to improve the
productivity.
Mass customization  It starts the
responsive
process which
are use in such
productions as
well.
 To increase the
costs as per
maintains the
varied things
(Rosin, F. and
et.al., 2020).
 To having a
difficulty into
measuring the
stock before
time.
H&M needs to train
their staff for the
better and effective
environment at work
7. Conclusion
From the above discussion, it has been concluded that operation management helps
organization to achieve its aims and objectives. Furthermore, the report has been evaluated
such management principles who help the business to make a proper improvement. Also, it
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has been discussed the lean principles which helps to know the methods as well as its
advantages and disadvantages.
References
Bamana, F., Lehoux, N. and Cloutier, C., 2019. Simulation of a construction project:
assessing impact of just-in-time and lean principles. Journal of Construction
Engineering and Management. 145(5). p.05019005.
Bonilla, M.D.R. And et.al., 2019. The interaction of Instagram followers in the fast fashion
sector: The case of Hennes and Mauritz (H&M). Journal of Global Fashion
Marketing. 10(4). pp.342-357.
Chawla, V.K. and et.al., 2021. Evaluation of green operations management by fuzzy
analytical hierarchy process. Materials Today: Proceedings. 38. pp.274-279.
de Oliveira, F.B. and et.al., 2020. Lean principles in vertical farming: A case study. Procedia
CIRP. 93. pp.712-717.
Fettermann, D.C. and et.al., 2018. How does Industry 4.0 contribute to operations
management?. Journal of Industrial and Production Engineering. 35(4). pp.255-
268.
Javed, T. and et.al., 2020. The sustainability claims' impact on the consumer's green
perception and behavioral intention: A case study of H&M. Advances in
Management and Applied Economics. 10(2). pp.1-22.
Rosin, F. and et.al., 2020. Impacts of Industry 4.0 technologies on Lean
principles. International Journal of Production Research. 58(6). pp.1644-1661.
Singh, A.K. and et.al., 2021. AstroSat mission operations management. Journal of
Astrophysics and Astronomy. 42(2). pp.1-7.
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Table of Content
Part 2: Project Portfolio
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Project Title p
An overview of the case study you have been given p
An explanation of each stage of the PLC that applies to your
selected project, including supporting documentation for each
stage (e.g., business case, the project plan, cost-benefit analysis
and work breakdown structure):
 Project initiation p
 Project planning p
 Project execution p
 Project closure p
Analysis of the project methodologies and tools used p
Review and critically evaluate the effectiveness of the PLC in
application to your project using the appropriate theories models
and concepts p
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Project Title
Cooking food at workplace for employees
An overview of the case study you have been given
In the provided case study there is large manufacturing unit located in midlands,
there are overall 1250 staff members as they willingly work for office and factory. In
present situation there is no catering service as concerned to this change program is
being implemented. The program drive the significant purpose related to healthy
well- being of individuals. The title of project is cooking food at workplace for
employees and all relevant structure and norms will be covered.
An explanation of each stage of the PLC that applies to
your selected project, including supporting documentation
for each stage (e.g., business case, the project plan, cost-
benefit analysis and work breakdown structure):
 Project initiation
Title –
 Detailed description - Cooking food for all at workplace, this topic is selected
and scheduled to reflect over major concern related with food service to staff
members and developing various possibilities to serve them with quality range
of food options.
 Overview – the main purpose of this study is to allocate several healthy food
options for employee and restrict their movement from going out of premise
and minimize the possible chances of absenteeism.
 Aim – the desired aim in this project is to cover the corporate social
responsibility of firm by getting in touch with competent process.
 Significance – to get maximum amount of employee whereby 1250 working
staff members are considered for this project.
 Impact over business practices – the business standards have majority of
chance to develop an internal business environment to get influence of higher
number of employee and enhance retention of employee.
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 Duties and accountability – the role and accountability in this project is to
serve fair and valuable practices and seeking attention towards equal
opportunities for employees.
 Key Stakeholders – employee, local community, members of board,
management etc. are stakeholders in this project (Ika and et.al., 2020). All of
them have access over decision making phase and influencing others.
 Expected Budget – the expenses incur in this project will be calculated in
budget in terms of executing real cost which is fundamental for effective
practices in this project. Thus, overall expenses will be calculated in this
segment and monitored as well.
 Milestones – there are certain milestones regarding to this project which are
stated below:
 To undertake proficient quality of food product and services which will be
served to number of employees.
 To restrict movement of employee from going out of premises as serving them
with variety of food options.
 To handle balance of staff absenteeism as considering to efficacious aspects.
 Assumptions – the assumptions could be certain amount of changes ranging
over price of product or service and it can be various kind of negative
concerns.
 Success criteria – there are several criteria or measurements that would be
covered as encouraging chance of employee absenteeism and retention rate
as well. Whereas amount of employee satisfaction is measured limitation
aspect that would be considered for further improvement compiling with
quality standards of this project.
 Project planning
Scope planning – in this part of project it will cover 1250 working employee and
catering fruitful service as serving healthy food options to them and minimize their
chances of paying attention towards going out of premises (Armenia and et.al.,
2019). This will be helpful for employee retention as forming up suitable standards
for them to get along with opportunities.
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Formation of WBS (work breakdown structure) – all type of task which has been
taken into consideration will be covered in this table listed below:




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Project executionProject planning Project Closure
Project
initiation
 Detailed
description
 Overview
 Aim
 Significance
 Impact over
business
practices
 Duties and
accountability
 Key
Stakeholders
 Expected
Budget
 Milestones
 Assumptions
 Success
criteria
 Scope
planning
 Formation of
WBS
 Project
development
plan
 Resource
planning
 Budget plan
 Procurement
plan
 Risk
management
 Communicati
on plan
 Quality plan
 Project
deliverables
 Change
request
 Documentatio
n updates
 Issue log
 Performance
data
 Deliverables to
the
stakeholders
 Documentation
to the
organization
 Cancelling
supplier
contracts
 Releasing staff
and
equipment’s
 Informing
stakeholders
about closure
Cooking food at
workplace for
employee

Project development plan – in this phase time table would be developed for
completion of various task to be completed in particular duration. These activities will
be elaborated in depth with the help of Gantt chart.
Resource planning – for this project there are some essential planned resources
that would be taken into consideration by experts in systematic manner to achieve
quality of output into their practices.
Performer Role Area of Specialism
Project planner Applicable for planning
several tasks in the project
Strategic management
Project initiator
Implementation of project
Basic standards of project
management
Budget manager Forming budgets
accordingly to minimize
expenses
Financial Expert
Other team members Forming up the project
completion in systematic
order
Having significant
knowledge of management
Budget plan – All kind of expenses will be covered in the budget and these are
mandatory terms which is required to conduct the project.
Particulars Budgeted fee (amount in £)
Research and development 90000
Fixed and planning costs 60000
Procurement of experts 640000
Raw material 100000
Salary of chefs and other staff members 550000
Miscellaneous expenses 100000
Kitchen equipment’s 250000
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Data managerial cost 10000
Project managerial cost 180000
TOTAL £1980000
Procurement plan – For this process vendors and raw materials will be considered
through quotations and relevant policies for making better experience in this
procedure (Flyvbjerg, 2021). For preparation of healthy food higher quality of chef
will be hired and further their food quality will be tested accordingly.
Risk management – there can be several risk barriers which might occur in this
project whereas quality plan is essential that would be verbalized and some suitable
precautions will be taken in order to minimize hazards. For irregularities of this
project contingency plan will be executed.
Communication plan –
Most of the suitable communication practices will be followed in this process to
facilitate procedures of project management. Staff member has ability to form
effective communication through digital tools.
Quality plan –
Food preparation will be surveilled on day to day basis to reduce negative impact to
be appeared at workplace. The fundamental standards will be adopted that would
drive better efficiency in preparation of food.
 Project execution
 Project deliverables –
Most of tangible outcomes of project will be monitored in terms of getting actual
understanding related to negative concerns with overall growth of project. Food
quality will be specially considered as it is being served to staff members.
 Change request -
Some of the changes will take place in the case when some of differentiations are
carried out with the help of structure and considerations (Hair and Sarstedt, 2021).
Whereas most of changes implemented with gauging of each and every policies and
norms.
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 Documentation updates –
The changes which take place will be covered in this phase reflecting over using
fundamental documents for adapting with relevant data sources.
 Issue log –
This will aid in maintaining record for various issues which can take place in this
part and it will be assist to mitigate risk factors.
 Performance data –
The progress of project would be assessed to build changes in systematic order.
 Project closure
It is final stage of this whole project life cycle in which it ends with due concerns for
each and every individual factor of this project. There are some effective activities
which will be considered after ending of project in financial year as it is stated in brief
below:
Stakeholder deliverables –
 Dissolution of contract with suppliers
 Project documentation
 Discontinuity with various staff members and required equipment’s
 Procuring necessitate information regarding project closure to key
stakeholders of this project
Post implementation assessment –
All successful concerns of this project are briefly scrutinized having great
assistance of gauging influential terms involved in the overall process. by the help of
key performance indicators all relevant terms are used to safeguard progress of
project life cycle maintaining the quality output.
CASE FORMATION
 Project label –
 Goal – To accomplish better outcomes by this project as maintaining better
efficiency in terms of serving food to staff members. Also, seeking attention
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further related to employee health and safety and decreasing possibilities of
absenteeism at workplace.
 Opportunity –
There is major chance for organization to level up corporate social responsibility
wants by adopting to various strategies in order to develop project management
fruitful.
 Resources required –
Equipment for food making, chef, raw materials, suppliers.
 Innovative concern –
All items related to healthy well- being of people would be served in systematic
manner as focusing over aspects for going out of premises. Gantt chart and Work
breakdown structure will reflect over essential terms used in this project.
 Risks and benefit –
Prices in higher extent for resources is major associated risk factor. Subsidies by
governmental bodies can be major would benefit the project.
 Cost and advantage –
The cost estimated for this project will revert benefits to organization in terms of
reducing absenteeism and increasing employee retention.
 Cash flow –
It will be surveilling in most effective way by finance department and they will cover
essential expenses and other cost factors.
 Business strategy –
Assessment of supreme opportunities and risk factors of this project will covered to
make further improvement in positive way.
 Cost advantageous analysis of project life cycle –
In this project overall estimated cost was £1980000, it will favor potential chances to
make completion of project fruitfully (Tereso and et.al., 2019). In futuristic terms or
18

upcoming year several benefits seem to be occurred which will maximize employee
work efficiency and productivity. The benefits and limitations of this could be:
Merit –
 It supports for interpreting project value
 Easier for decision making
Demerit –
 It is costlier process which business have to initiate
 Time consuming
Gantt Chart -
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Conclusion and recommendation –
At the end of this project it can be stated that all task and activities of this project has
been performed in systematic order. The only factor which needs to be improved is
time as it will serve better accuracy in project and major improvements as well.
Analysis of the project methodologies and tools used
Project management tool –
Work breakdown structure is effective tool which has been used in this project in
order to elaborate task completion in detail reflecting over fundamental activities of
this project. The are some merit and demerits of this tool which is been stated below:
Merit –
 Competent for allocating task and activities into heads and subheads
 It enhances gauging ability for teams
 It clearly specifies dates for completion of task
Demerit –
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 Stubborn structure and mismanagement are major negative concerns
Project leadership –
Leaders of this project captured efficacious terms to motivate several members
within project to increase their work ability reflecting to improved performance. On
positive ide it is one of the most lucrative process which aids to get positive outcome
in completion of project (Copola Azenha and et.al., 2021). Also, it reduces chance of
various loss which might negatively impact over this project and organization as well.
In contrastive terms, there is higher amount of pressure over team members working
for the project and there could be various other errors which can interrupt efficiency.
Review and critically evaluate the effectiveness of the PLC
in application to your project using the appropriate
theories models and concepts
Performance management –
Performance managements indicates bunch of activities concerned with immense
performance of task completion. Similarly, there are some ways in which common
activities are performed in order as having accountability in the project. Whereas the
major advantage of this would be promoting influential use of resources, forming
lucrative methods to make project completion extremely well (Stanitsas and et.al.,
2021). On the other hand, it can impact badly on financial outcomes and it is highly
dependable on broad assumptions which creates bad image in the project.
Moreover, from the above measures it can be concluded that all type of
considerations are gathered in this project life cycle likely to be termed as
benchmark, milestones, and targets. Whereas internal and external factors like
employee retention and satisfaction level are taken into consideration. Some
essential terms in this project like key performance indicators (KPIs) and corporate
social responsibility (CSR) of entity reflects to the valuable proposition.
Apart from that in the study key tools have been used such as Gantt Chart
and word breakdown structure (WBS) that reflects to fundamental aspects and
conclusive phase of overall project. The project is performed in systematic term as
seeking attention to significant aspects which makes it competent. The main aim of
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this project was having mutual understanding and essential aspect which comprises
with growth and all the above are performed extremely well.
References
Armenia, S., and et.al., 2019. Sustainable project management: A conceptualization-
oriented review and a framework proposal for future
studies. Sustainability. 11(9). p.2664.
Copola Azenha, F., and et.al., 2021. The role and characteristics of hybrid
approaches to project management in the development of technology-based
products and services. Project Management Journal. 52(1). pp.90-110.
Flyvbjerg, B., 2021. Top ten behavioral biases in project management: An
overview. Project Management Journal. 52(6). pp.531-546.
Hair, J.F. and Sarstedt, M., 2021. Explanation plus prediction—The logical focus of
project management research. Project Management Journal. 52(4). pp.319-
322.
Ika, L.A., and et.al., 2020. Cross-learning between project management and
international development: Analysis and research agenda. International
Journal of Project Management. 38(8). pp.548-558.
Stanitsas, M., and et.al., 2021. Integrating sustainability indicators into project
management: The case of construction industry. Journal of Cleaner
Production. 279. p.123774.
Tereso, A., and et.al., 2019. Project management practices in private
organizations. Project Management Journal. 50(1). pp.6-22.
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