Analysis of IPMA and PMI Standards and Their Comparison

MENDEL UNIVERSITY IN BRNO
Faculty of Regional Development and International Studies
Department of Regional and Business Economics
Analysis of IPMA and PMI Standards and Their Comparison
Diploma Thesis
Thesis supervisor: Author:
doc. Ing. Pavel Máchal, CSc. Bc. Jan Špatenka
Brno 2014

Declaration
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I agree that my work will be published in accordance with Section 47b of Act
No. 111/1998 Coll. on Higher Education as amended thereafter and in accordance with
the Guidelines on Publishing University Student Theses.
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creation of the thesis, up to their actual amount.
In Brno, 20. 5. 2014
……………………………………………………..
Signature

Acknowledgements
I would like to give thanks to the supervisor of my thesis, doc. Ing. Pavel Máchal, CSc.,
for his professional and scientific help, consultations and patience. Last but not least I
would like to give thanks to my family for their unfaltering support.

Abstract
The thesis is focused on two chosen standards of project management such as IPMA
and PMI. The document covers fundamental terms of connected with the topic of
project management. There is also a description of both institutions including their
history and structure. The comparison of both standards and their certifications
according to chosen indicators is based on the analysis of above-mentioned theoretical
background. The thesis is based on information contained in official IPMA and PMI
materials.
Keywords
Project management, standards, IPMA, PMI, certification, project quality management,
Abstrakt
Tato diplomová práce je zaměřena na dva vybrané standardy projektového řízení, který
jsou IPMA a PMI. Dokument se dotýká základních termínů, které jsou s tématem
projektového managementu spojeny. Jsou zde zároveň představeny obě organizace a
popsána jejich historie a struktura. Na základě analýzy výše zmíněných údajů bylo
provedeno srovnání obou standardů a jejich certifikací dle vybraných ukazatelů. Práce
pracuje s informacemi získanými z oficiálních dokumentů standardů IPMA a PMI.
Klíčová slova
Projektové řízení, standardy, IPMA, PMI, certifikace, řízení kvality projektu,

Table of Contents
List of Figures................................................................................................................... 8
List of Tables .................................................................................................................... 9
List of Graphs ................................................................................................................. 10
Abbreviations and Symbols............................................................................................ 11
1 Introduction.................................................................................................................. 12
2 Aim of the Work and Methodology............................................................................. 14
2.1 Aim of the Work................................................................................................... 14
2.2 Methodology......................................................................................................... 14
3 Theoretical and Methodological Basis of the Work .................................................... 16
3.1 Concept of Project Complexity............................................................................. 16
3.1.1 Definition of Project ...................................................................................... 16
3.1.2 History of Project Management..................................................................... 18
3.2 Project Management and Its Cycle ....................................................................... 21
3.2.1 History of Project Management..................................................................... 21
3.2.2 Definition of Project Management ................................................................ 23
3.2.3 Project Management Cycle............................................................................ 25
3.3 Project Team Composition and Management Structure....................................... 28
3.3.1 Fundamental Types of Management Styles................................................... 29
3.3.2 Differences in Organizational Structures....................................................... 29
3.4 Project Quality Management ................................................................................ 32
3.4.1 Total Quality Management ............................................................................ 33
4 Characteristics Of IPMA and PMI Organizations....................................................... 34
4.1 Introduction and Description of Organizations .................................................... 34
4.2 IPMA and PMI History......................................................................................... 36
4.3 Strategic Plan of Both Institutions........................................................................ 37
4.4 Description of IPMA and PMI Standards............................................................. 39

4.4.1 ICB and CzCB Standards .............................................................................. 39
4.4.2 PMBoK Guide Standard................................................................................ 41
4.5 Certification and Description of Certificates........................................................ 42
4.5.1 IPMA®
Certification ...................................................................................... 42
4.5.2 PMI®
Certification ......................................................................................... 45
4.6 Brief Overview of Other Organizations................................................................ 47
4.6.1 PRojects IN Controlled Environments – PRINCE2®
.................................... 48
4.6.2 Australian Institute of Project Management – AIPM .................................... 49
4.6.3 Association for the Advancement of Cost Engineering – AACE.................. 49
4.6.4 Association for Project Management – APM................................................ 50
5 Comparison of IPMA and PMI Standards................................................................... 51
5.1 Approach of IPMA and PMI to Project Management .......................................... 51
5.1.1 Comparison of Project Definition.................................................................. 52
5.1.2 Project Management and Cycle Comparison................................................. 53
5.1.3 Project Team and Its Comparison.................................................................. 55
5.1.4 Project Quality Management by IPMA and PMI .......................................... 57
5.2 Comparison of Standards and Certifications ........................................................ 59
5.2.1 Basic Comparison of Both Standards ............................................................ 59
5.2.2 Standards Comparison by Selected Indicators............................................... 60
5.2.3 Comparison of Certifications......................................................................... 62
6 Discussion.................................................................................................................... 64
7 Conclusion ................................................................................................................... 66
8 List of Bibliographic References ................................................................................. 68
8.1 Printed Information Resources ............................................................................. 68
8.2 Electronic Information Resources ........................................................................ 72
9 Annexes ..................................................................................................................... 755

8
LIST OF FIGURES
Figure 1: The Triple Constraint p. 19
Figure 2: Project Management Scheme p. 25
Figure 3: Functional Organizational Structure p. 30
Figure 4: Pure Project Organizational Structure p. 31
Figure 5: Matrix Organizational Structure p. 32
Figure 6: IPMA Governance p. 35
Figure 7: PMI Strategy Map p. 38
Figure 8: Four Level Certification System and Process p. 43
Figure 9: Project HR Management Overview p. 56

9
LIST OF TABLES
Table 1: Definition of Triple Constraint Categories p. 20
Table 2: Characteristic Features of Project Management in Time p. 23
Table 3: The Competence Elements of ICB p. 40
Table 4: Structure of CAPM®
Questions p. 46
Table 5: The Amount of PDU Points Required for Recertification p. 47
Table 6: Control Quality Tools by IPMA and PMI p. 58
Table 7: Main Differences of ICB and PMBoK®
Guide p. 60
Table 8: Comparison of Standards by Indicators p. 61

10
LIST OF GRAPHS
Graph 1: Weighting of Competence Ranges at IPMA Levels p. 44
Graph 2: Ratio of Actively Certified of IPMA and PMI in EU p. 62

11
ABBREVIATIONS AND SYMBOLS
ICB – The IPMA Competence Baseline
IPMA – International Project Management Association
ISO 10 006 – International standard by International Organization for Standardization
PMI – Project Management Institute
PRINCE2®
– Projects in Controlled Environments
TQM – Total Quality Management
YPMG – Young Project Managers Group
WBS – Work Breakdown Structure

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1 INTRODUCTION
Project management is a discipline that uses and applies knowledge, skills, tools and
techniques to reach the project objectives in a given time utilizing designated funds.
Each project must go through several cycles during its implementation – from
specification, through planning, proper implementation to successful project completion
and hand-over. In other words, the procedure, when used correctly, significantly reduces
the proportion of coincidence and unexpected scheduled events to final work outcome.
This leads to considerable savings in the spheres of time, energy and money.
Although most of the company activities make use of project management, it must be
said that this tool is one of the few ways to reach a competitive advantage. This issue
has also been more and more brought to people's awareness in ordinary situations in
which a project is perceived as a task they face and need to fulfil or solve at the same
time. In spite of the fact that this thesis is designed as a specialized paper, it also
contains comprehensive information about basic terms and processes that project
management offers within its basic components, such as project communication,
teamwork, project life cycle, project management components and organizational
commitment.
This work is, besides the basic concepts and approaches to project management,
focused on a detailed analysis of IPMA and PMI standards, including their comparison.
The paper also includes a detailed study of the procedures associated with both
standards which verify competences of ability to acquire and apply knowledge. This
topic was chosen for the diploma thesis as it exhibits very specific features in the Czech
environment. There is a very high number of trained project managers in the Czech
Republic. This is, however, quite a strange phenomenon when one takes into account
that education in this field is not so strongly rooted at universities, not even in those
fields of study whose graduates are almost certain to become part of a project team.
The essence of project management has been known and used for ages. The primordial
birth of projects is often associated with the construction of the Egyptian pyramids.
Speaking about this issue with regard to the Czech environment, an often cited example
is the project of the Charles Bridge construction in Prague which managed to meet the
defined criteria. Even though there had been several new techniques associated with

13
military projects, the terms 'project' and 'project management' themselves emerged as
late as in 1960s.
At the beginning of the work, the review of literature can be found which comprises all
essential resources connected with project management and topics related to it. All the
other sources used are given at the end of the whole thesis in the relevant section
dedicated to bibliography according to the ISO 690 norm. Another substantial chapter is
devoted to both of the abovementioned standards with focus on their advantages and
disadvantages, including a thorough comparison. This part involves an overview of
these two project management styles and certifications that are included in the
following chapter.

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2 AIM OF THE WORK AND METHODOLOGY
2.1 AIM OF THE WORK
The thesis is set in the environment of project management. The core of the work is
conceived with huge respect to traditional approach to this field. Its procedures and
techniques are formed as a reaction to current development in the field.
The main aim of the work is to compare and analyse the IPMA and PMI standards from
two principal points of view, such as their approach to project management, which
consists of chosen aspects – project cycle, human resources and project quality
management, and comparison of standards and their certifications. Specific objectives
were designed to complement the context of the main aim and also clarify the
background of the issue. The first specific objective is to review the current research in
two main organizations connected with project management and its certification based
on the study of relevant literature. The second objective is to provide a theoretical
background of the thesis, i.e. make an analysis of the definition and history of project,
project management and its cycle, including the tools and methods, and also describe
the project team composition and management structure. The next objective is dedicated
to characteristics of both organizations and their certification processes. This will result
in a thorough analysis and comparison of obtained data and information related to
IPMA and PMI.
All the aims will be achieved thanks to the analysis of correct and verified data reached
by studying relevant literature resources and contacting the competent organizations.
The research of the thesis will be based on the previous analysis included in this work to
preclude any deceptive or misleading information and conclusions.
2.2 METHODOLOGY
When working out the main objective and sub-objectives of the thesis according to the
specification and the abovementioned aims, the following few methods of scientific
work will be used:

15
- study of relevant literature and other resources in order to put the explored issues in
a wider theoretical framework,
- literature review that verifies the innovative subtext and, in particular, the
contribution of the presented thesis, and supports the elaboration on data just
obtained,
- evaluation of the information obtained through the research and analysis of both
standards including the demarcation of advantages and disadvantages of chosen
approaches,
- collection of statistical and other factual materials related to the issue and their
further detailed elaboration, and
- final evaluation of the acquired and processed data and the subsequent formulation
of formal output of this research.
Baseline data necessary for the analysis processing was obtained mainly from sources
of appropriate organizations linked to the IPMA and PMI standards. The paper contains
graphs and tables which serve for greater clarity and comprehensibility.

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3 THEORETICAL AND METHODOLOGICAL BASIS OF THE
WORK
This part is devoted to a comprehensive overview and evaluation of the relevant
scientific literature that deals with both the project management issues as a whole and
its individual approaches and branches. It also explains the terms which are contained in
the documents and moreover helps to gain a comprehensive impression of project
management in all its forms.
The literature review serves as a convenient core and introduction to the issue and
practical part of this study which proceeds from this chapter.
3.1 CONCEPT OF PROJECT COMPLEXITY
In order to be able to determine terms such as 'project' or 'project management' there is
a need to point out that a project can particularly has many meanings in different
languages and backgrounds. This term often occurs in architecture, construction or
engineering. We cannot talk about any similarities with the term used in the context of
project management in these cases. Unlike this field we can speak about a kind of
proposal in the above mentioned branches (Doležal, Máchal, Lacko et al, 2012).
3.1.1 Definition of Project
The word 'project' originally comes from Latin projectum, itself stemming from the
Latin verb proicere meaning 'to throw something forward'. We can estimate the
definition due to its prefix pro- which indicates an action or behaviour that comes
before something else. This is closely connected with the word 'management' which
evolved from Italian maneggiare and can be translated in to English as 'to handle' since
it comes from the Latin manus or 'hand' in English (Chiu, 2010).
Speaking about the project in the field of project management is, according to Newton
(2008), the way of working, the way of organizing people and the way of task
management. It is distinguished from other management styles by a complete focus on

17
specific results and thus it ceases to be necessary at the time of the result achievement.
The most noticeable features of the project are its commencement comes at certain time
and formal termination arises when the result is accomplished. There typically are also
defined sources in the form of financial means and investment of time needed to
achieve the required result. The result achievement has an impact on some change.
Some characteristics of the project provide an important basis for appropriate
managerial steps determination which deals with successful termination of the project.
Complexity is one such critical project feature. Bennett (1991) also states that
practitioners often describe their project as simple or complicated when discussing
management issues. This connotes a practical acceptance that complexity makes
a difference to the management of projects. In respect to this fact, more complicated
projects demand management on an exceptional level and that the application of
conventional systems for the common projects is not convenient.
There are many definitions of the project in the field of project management. For
instance the definition according to IPMA standard1
: “project is a time and cost
constrained operation to realise a set of defined deliverables (the scope to fulfil the
project´s objectives) up to quality standards and requirements,” (ICB – IPMA
Competence Baseline Version 3.0, 2006, p. 13) or according to ISO 10 0062
: “project is
a unique process consisting of a set of coordinated and controlled activities with the
beginning and end dates, undertaken to achieve an objective, which meets specific
requirements, including the constraints of time, cost and resources,” (Kousholt, 2007,
p. 15). These definitions also mentioned, for instance, in the work of Doležal, Máchal,
Lacko et al (2012) are one of the most common with respect to the consequences of
project management. The third well-known determination is associated with PMI3
which speaks about the project as a “temporary endeavour which is carried out to
create a unique product, service or other kind of result,” (Camilleri, 2012, p. 5).
With respect to above-mentioned it is conceivable to determine out term as a basically
any activity of which purpose is to form something new. This is a unique activity
limited by cost, time and resources. The project intent might be directed at designing
a new dress just as renovation of old kitchen units or new mobile application
1
International Project Management Association
2
International Organization for Standardization
3
Project Management Institute

18
development. From a lay point of view, we can also mention starting a family or choice
of a summer vacation. All in all, there is a wide range of activities included in this term.
One of the best ways how to describe the project issue is to determine its characteristic
features according to Fiala (2002, p. 10) who speaks about project “as a result of
material and immaterial character based on strategic planning, designed, organized
and realized under the guidance of particular manager acting on the behalf of
a proprietor or contracting authority with the considerable amount of attributes, such
as:
 its results must serve throughout the project clearly designed period of time set by
the authority,
 success of the project at the time of its initiation is not apparent,
 the duration of the project is limited in time,
 the project is carried out outside the normal business routine,
 resources of the project are limited,
 the project moves towards just one result.”
According to the same author (Fiala, 2002), it is possible to characterize whether the
project is successful or not which is measured by functionality of the project, its return-
ability and its impact on environment and environs. These characteristics are
accompanied by contentment of all involved parties and on-time product delivery in the
set quality and price.
3.1.2 History of Project Management
There are several definitions of project in this chapter which can guide our thoughts to
'the triple constraint' for projects. As stated in Rose´s book (2005) this includes time,
cost and scope with the same importance to both project success and the project
manager. One of the main activities of every project manager is to balance the three
aspects to meet the project aims and achieve the best possible results. This author also
speaks about the fourth element called quality which is the closest one towards scope
taking into account customers´ requirements. With regard to this fact, some authors

19
speaks more about 'performance criteria' as the third element instead of 'scope' which
actually covers both mentioned ideas (Dobson, 2004).
These three aspects which are undoubtedly constituents of the project should be taken
into consideration. The division and appellation of the boundaries and limits that are
well-known across the world of project management was supplemented by Haugan
(2013) who speaks of so called new triple constraints in the context of projects,
programs and portfolios. His publication contains the concept of a set of triple
constraints with huge respect to sustainability and environment.
The theory covers constraints of population, climate changes and energy applied to the
existing project management triple constraints of time, cost and performance. Haugan
(2013, p. 4) describes the new three constraints in the synergy with the original ones:
“population factors include any impacts or assumptions regarding changes in demand,
demographics, racial composition, immigration, birth rates, or death rates. Climate
factors include any impact or assumptions regarding weather, sea levels, biota, ice, and
glaciers that are involved in the performance of the project. Energy is connected with
the availability or cost of energy in the management of the program or in the resulting
product, service, or result.”
Figure 1: The Triple Constraint (source: own design inspired by Dobson, 2004)

20
All in all, it is important to determinate triple constraint categories to limit project
claims on common resources which include the spending-based and time-based kinds.
Our priority on some project always depends on its value. According to Dobson (2004)
there is a minimum level of performance that means the value at the admissible level.
A definition of project performance can include utilitarian demands and functional
deadlines at the same time. The definition on cost and time also comprises different
types of descriptions:
Time constraint
Specific deadline On or before specific time
Event-related Before reaching particular event
Urgency Need to be done at specific time
Not urgent Sooner is better than later
Cost constraint
Cash Budget, allowable expenditures
Personnel Team members, time-allocation
Equipment Capital equipment
Suppliers Consumable suppliers
Overhead Organizational purposes cash
Intangibles 'Political capital'
Performance criteria
Functional requirements Capacity, price, speed, storage
Purpose The desired end state
Evaluation criteria Threshold to be met
Table 1: Definition of Triple Constraint Categories (source: own design inspired by
Dobson, 2004)
The categories first described are not necessarily the ones that turn out to be most
important. All of them are set as typical instance of time and cost constraint and
performance criteria variables.

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3.2 PROJECT MANAGEMENT AND ITS CYCLE
Project management is a young branch which commenced its own history after the 2nd
World War. Provided that the term project can describe almost every way of working in
its vague definition it means that project management is dated back to ancient history.
Even at that time there were first methods, practices and techniques that people tried to
verify to be able to handle a variety of situation and obstacles. According to Doležal,
Máchal, Lacko et al (2012) this fact is accompanied by several fundamental differences.
This publication speaks primarily about 'the slower time' because of complications
related to communication over long distances. Furthermore, it is pointed out that there
were no time constraints or they were not so crucial at that time. Huge buildings were
building even several centuries. Today´s projects are strongly limited by time and
resources which is one of the biggest differences comparing ancient and nowadays
times.
3.2.1 History of Project Management
Although it may not seem the history of project management is really rich topic. There
are a large number of studies on this subject that are very closely engaged in the field.
Project management applies our skills, knowledge, methods, thought to activities in
order to get defined requirements. There is no doubt that the most visible results and
outcomes of this discipline is to find in the field of architecture related to building
constructions and engineering of all types. In other words, projects have been with
human race since coming a man and since the beginning of held farming and hunting.
Projects have took an active part in delivering the innovation which drives our society
nowadays; the management has played a decisive role in ensuring the collaborative and
creative efforts connected with communication, transfer of information, transportation
and defence systems (Morris et al, 2011).
This fact is particularly analysed by Lock (2007) who distinguished the whole history of
project management into five periods of time. The first one is goes back before 1900
and represents projects having left impressive legacies on the architectural and
industrial culture. We can just guess how some of those people managed to finish all the

22
giant buildings without any technology or tool available today. That is true that people
were very often regarded as a cheap and expendable resource.
The second period (1900 – 1949) was focused on rapid industrialization and the
demands of munitions production in the 1st
World War associated with scientists and
industrial engineers such as Elton Mayo4
and Frederick Winslow Taylor5
. Henry Ford6
is also a person who belongs to this period.
The third period is dated from 1950 to 1969 and is characteristic of digital computers
that made the processing and updating of critical and crucial path networks. There is no
doubts that this way of processing was much faster an easier. All the output reports in
those early computing days came as text from line printers, so that graphics such as bar
charts were crudely modelled from archetypes of alphanumeric characters.
The penultimate period is 1980 to 1989 which is described by the author in the same
publication as decade when managers became far less dependent upon IT experts. The
whole technological sector made a huge and measurable progress. Software that was
able to run activity-on-arrow networks became antiquated.
The last period 1990 to the present day is totally conditional on computers. The internet
connection makes every effort much easier. There are no obstacles during collaborative
work online, communication through online applications or processing with web 2.0
tools. Project management is no longer considered as two separate sectors – industrial
and IT projects. Project management has well worked-out structure, principles, methods
and other aspects that are elaborated in large quantities of books and all types of
publications in many languages.
There are main characteristic features based on Lock description in the below
mentioned Table number 2.
4
George Elton Mayo (1880–1949) was an Australian industrial psychologist, sociologist and organization
theorist. Towards the end of his life, through his association with the Harvard Business School and the
Hawthorne Studies, he enjoyed a public acclaim granted to few social scientists of his day.
5
Frederick Winslow Taylor (1856 – 1915) was an American mechanical engineer who sought to improve
industrial efficiency.
6
Henry Ford (1863 – 1947) was an American industrialist, the founder of the Ford Motor Company and
sponsor of the development of the assembly line technique of mass production. He was also known for
his pacifism during the first years of World War I.

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Period of time Characteristic features
Before 1900
 people cheap, even expendable
 immense projects
 urgency not driven by the rat-race
1900 – 1949
 emergence of management science
 early development of critical path networks
 inception of Henry Gantt´s planning charts
1950 – 1969
 project management as a recognized profession
 project management software in batch mode
 more concern for people at work
1980 – 1989
 desktop computers development
 managers less dependent on IT experts
 wider acceptance of project management as a profession
1990 +
 computers and laptops allowing run of all types of apps
 more interest in project risk
 worldwide communication through the internet
Table 2: Characteristic Features of Project Management in Time (source: own
design inspired by Lock, 2007)
All in all, project management has evolved over the ages in several points of view such
as culture, knowledge, construction skills, tools and techniques evolved so did the
purpose and construction of buildings. In the work of Chiu (2010) there are several
historical sections looking at the societal, managerial and the scientific changes which
took place prior to AD 1900. His book also contains evaluation of project management
implementation in time including discussion of findings.
3.2.2 Definition of Project Management
There are certainly many definitions of project management that describe this
phenomenon from different points of view. Kerzner (2013, p. 4) considers project
management a tool “designed to make better use of existing resources by getting work
to flow horizontally as well as vertically within the company.” He does not have any

24
doubts about destroying the vertical, bureaucratic workflow, nevertheless it simply
requires that line organizations talk to one another horizontally which points out on
responsibility of the line project managers. This expert also mentions benefits from the
project management, such as identification of functional responsibilities, minimizing the
need for continuous reporting, identification of time limits for scheduling, identification
of a methodology for trade-off analysis, measurement of accomplishment against plans,
early identification of problems due to corrective action to follow, improved estimating
capability and knowing when objectives cannot be met or will be exceeded.
The world´s leading theorist Harold Kerzner (2013, p. 4) summarize his thoughts
regarding project management as follows: “project management is planning,
organizing, directing, and controlling of company resources for a relatively short-term
objective that has been established to complete specific goals and objectives.
Furthermore, project management utilizes the systems approach to management by
having functional personnel (the vertical hierarchy) assigned to a specific project (the
horizontal hierarchy).”
Both these definitions are supplemented by Svozilová (2006) who agree with above-
mentioned facts and deduce the point of the term as an invested efforts accompanied by
knowledge and methods with respect to remodel material and nonmaterial resources
with result in a set of products, services or their combination to achieve marked out
objectives. She claims that the difference between project management and other
common forms of operative and flexible management is its temporariness and
impermanence and allocation of resources due to its realization according to the project
needs.
Therefore it is quite clear that the definition of project management is based on
management term in general which means that the act involves four main managerial
activities:
 planning,
 organizing,
 leadership, and
 controlling.

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According to Němec (2002) there is a need to distinguish terms project management
and management of the project. The first term is related to companies where more
projects are realized. Such projects need to be coordinated and managed. The second
case is used while creating a specific method of planning and realization of some
particular project. This fact is represented in the following Figure number 2.
Figure 2: Project Management Scheme (source: own design inspired by Němec,
2002)
As you can see, there are many published definitions describing project management.
Lester (2013, p. 7) tried to summarize and cover all the important ingredients: “the
planning, monitoring, and control of all aspects of a project and the motivation of all
those involved in it, in order to achieve the project objectives within agreed criteria of
time, cost and performance.” This definition basically contains all three fundamental
criteria enriched by motivation of stakeholders of the project.
3.2.3 Project Management Cycle
There are many approaches of how to describe project management cycle. Those who
are strongly based on IPMA and PMI standards will be analysed later in this study. The
project life cycle is composed of four basic phases according to Westland (2007) –

26
initiation, planning, execution and closure. There is a previous period before these
phases which precedes the project approval and contains several important steps7
.
Project initiation is the first one during which a business problem or opportunity is
identified and a business case providing several solution alternatives is defined. The
initiative to start a project is mostly associated with demand for new functionality,
process design, and connection to other systems, integration with them or their
innovation necessary to coordinate activities connected with its development. While we
distinguish project instructions, there is a need to set crucial points, such as the scope of
the project, key project deadlines, solution concept, necessary capacity estimation and
time schedule. These data replenished by a correctly set project team are summarized by
a feasibility study investigating whether each option addresses the particular problem
and a conclusive recommended solution is then put forward. The study should include
an analysis of the project itself, return on investment and the forecast for the next
period. The study is important not only to support the project but should answer the
main financial issues and impacts that the project will be affected (Westland, 2007).
The second key aspect of the project cycle is planning. The plan is usually determined
in the time and goals point of view. These two values together create a project
milestone. Every project milestone determines breakpoints in the project plan.
Milestone is hand in glove with project stages. These stages can follow the previous
ones or run parallel to each other. A critical path is usually the longest journey from the
beginning to end of the project and contains risk management activities that should be
attentively monitored to avoid any delay of the project (Hawdon, 2011). There is
a comprehensive summary of activities regarding project planning in the book of
Westland (2007, p. 4):
 “project plan outlining the activities, tasks, dependencies and timeframes,
 resource plan listing the labour, equipment and materials required,
 financial plan identifying the labour, equipment and materials costs,
 quality plan providing quality targets, assurance and control measures,
 risk plan highlighting potential risks and actions to be taken to mitigate those risks,
 acceptance plan listing the criteria to be met to gain customer acceptance,
7
This phase is described in more detail in chapter 3.4 dedicated to tools and methods of project
management.

27
 communications plan describing the information needed to inform stakeholders,
 procurement plan identifying products to be sourced from external suppliers.”
According to the summary, the aim of this phase is final identification of resources
required to implement the project with regard to the completion of the project within the
expected time, expected costs and required quality.
During the execution, or implementation phase, various activities and tasks are filled
arising from the project schedule in order to achieve the objectives of the project which
follow its definition. Westland (2007) declares that this step contains series of
management processes that are undertaken to monitor and control the deliverables being
set by the project. He claims that this includes identifying change, risks and issues,
reviewing deliverable quality and measuring every outcome produced against the
admissible standards. While risk management implementation will be altered on
a project-to-project basis, there are several advisements that apply to virtually every
project. Kerzner (2004) states, for instance, implementation in both a top-down and
bottom-up manner across the project. The project is prepared for closure as all of the set
deliverables have been produced at a specific qualitative level and accepted by the
customer. This phase is accompanied by a number of typical activities, some of which
are not be pleasant even they have to be done. Some of them according to Kanda (2011)
are accountancy, learning from experience, report writing and controlling, project team
dispersion, etc.
The last phase of the project cycle is project closure which closes the project from the
formal point of view and reports the overall success and achievements of the project
goals and objectives. Handing over the deliverables to the customer, passing the whole
documentation, revoking suppliers contracts, disengaging staff and equipment which
was used in the course of the whole project and informing stakeholders of the closure of
the project are main activities associated with this phase according to Panneerselvam
and Senthilkumar (2010). They also state a project closure report as a major part of the
phase since all the tasks to complete the project have to be documented and delivered to
the customer. This report usually contains project completion criteria, listing outcomes
or deliverables, time plan and schedule, ceasing supplier contract and agreements,
communicating the closure of the project, etc.

28
Every project consists of different parts that constitute a logical sequence and segments
of the project. The project division into separate phases allows users to plan their issue
more efficiently. The purpose of this fact is both to create much better conditions and
enables smoother orientation of interested groups and stakeholders of the project.
3.3 PROJECT TEAM COMPOSITION AND MANAGEMENT
STRUCTURE
Establishment of the team is an integral and important part of any kind of aspiring
cooperation. However activities associated with the project team does not end at its
creation. It is necessary to constantly keep working on good relationships within the
team and its stability so that its activities and primarily results, which are crucial, would
be the best.
Many questions and findings were noticed by Lewis (2004) in his book related to team-
based project management. It deals with the most appropriate paradigm or model for a
project team, finding an effective way of team development, many kinds of
relationships members have with each other. All the thoughts are gathered around the
question of how to achieve such a paradigm. He answers his own questions himself to
a certain extent when describing a project team as a whole: “a team is typically defined
as a group of people who work together to achieve a common goal or objective, who
produce high-quality results, and who enjoy doing so. The two aspects of this definition
that focus on relationships would be the collaborative nature of the group and the
enjoyment of it,” (Lewis, 2004, p. 66). He adds to this that members need to be willing
to collaborate with each other. It is not possible to compete and cooperate at the same
time as competition and cooperation are opposites.
There is another definition of a project team according to Svozilová (2011) who is not
too concerned with human relationships within the team, but rather with real activities,
responsibilities and duties that relate to every particular team member. She describes
a project team as a main executive part of the project. Project team is a group of people
who are involved in achieving the objectives of the project and are subject to the project
manager to the extent of the allotted time or a working capacity and within the allocated
powers and responsibilities.

29
3.3.1 Fundamental Types of Management Styles
When we speak of the importance of team relationship stability and balance, there is
a need to mention management styles which ensure the project team environment.
Doležal, Máchal, Lacko et al (2012) remark four main management styles that are
characterized at two basic levels; according to the leader´s focus on task and
relationships which very closely correspond with above-mentioned project team
descriptions written by Lewis and Svozilová. Doležal, Máchal, Lacko et al (2012)
describes these four styles as follows:
 directive style (telling) – which is characterized by one-way communication when
leader defines roles of individuals or even groups and determines who, what, how,
where and when does,
 training style (selling) – the leader still controls the realization of the task, however,
he is also focused on the implementer of the task and works with him on an
emotional basis, trying to involve them in the solution process, to sell him the task
in other words,
 participative style (participating) – the leader and the individual or group are jointly
connected with the method of solving the task, the leader is not fully involved in
the step solution and is more concerned in relationships, and
 delegating style (delegating) – the leader still takes part in decision making
nevertheless the process itself including its responsibility is delegated to the
particular person or group which is answerable to the leader. The leader performs
the monitoring procedure.
3.3.2 Differences in Organizational Structures
There are also many differences in organizational structure which also affects project
team behaviour. Organizational structure of the company need not comply with the
realization of a time-limited project. A definition of organizational structure follows two
possible ways – top down or bottom-up (Urban, 2004).
There is a choice to opt for different types of structures depending on the size of the
project, its time and human resources. Vertical differentiation contains a number of

30
hierarchical levels or layers which help to lead organization´s activities to better
management and coordination. Horizontal differentiation is associated with an extent of
labour division and specialization. Spatial differentiation is related to the internal
segmentation of the organization in different territorial units. This division is reliant on
the degree of formalization which standardizes the performance of individual work
activities, such as detailed and binding job descriptions, organizational manuals, etc.
The second aspect connected with management structure is centralization or
decentralization that reflects on what hierarchical level the majority of decisions are
made (Maaytová, 2013).
The basic organizational structure according to Fiala (2002) which is more concentrated
on functional point of view is divided into four fundamental schemes – functional
organizational structure, pure project organizational structure, matrix organizational
structure and network organization structure.
Figure 3: Functional Organizational Structure (source: own design inspired by
Fiala, 2002)
This type of structure is based on dividing workers into clusters according to their
specialty and expertise. Each of these independent units usually works for a variety of
other structural units of the lower stage of proceedings (Mulačová et al, 2013). It is
expected that there is a good cooperation between team members in case of the project
realization within individual departments. Experts are divided according to their
professional status which promotes the exchange of experience and knowledge.
Complications arise in the form of the absence of a 'coordinator' of the project if the

31
project is to address the need for cooperation of various departments. Organizational
structure in functional form is the least desirable in terms of project management
(Maaytová, 2013).
Figure 4: Pure Project Organizational Structure (source: own design inspired by
Rosenau, 2010)
The pure project organizational structure (Figure no. 4) is according to Maaytová (2013)
subjected to the goals of each project. It is created from functional structure in case that
the form of organization does not allow to fulfil project needs. The project is defined by
the linear power with a single control centre. Workers are formally assigned to the
project and create so called project teams which are led by project managers. This
ensures continuity and professional approach. This structure is recommended for larger
projects.
The matrix organizational structure, which is represented on Figure number 5, is
according to the same author optimal for the implementation of medium-sized and
parallel-running projects requiring common available human resources. This structure is
communication and coordination skills intensive. Special departments are responsible
for the personnel working security on projects and for the professional level of
employees. Project managers are responsible for setting objectives and creating
a realistic plan in terms of time and cost implementation (Maaytová, 2013).

32
Figure 5: Matrix Organizational Structure (source: own design inspired by Fiala,
2002)
The network structure is another form of organizational arrangement. It can be
characterized as a coordination mechanism based on the strong belief that connects
independent resource owners. Cost reducing, shortening production cycles, better
technology and synergic effect are the main reasons why to set up a basic network
structure. It also has several disadvantages, such as informal relationships based on
mutual trust, costs of communication and channels of communication for information
sharing. This structure is convenient for business that often implements new projects. It
is sometimes considered a combination of pure project and matrix organizational
structure (Dědina and Malý, 2005).
3.4 PROJECT QUALITY MANAGEMENT
Quality of a project is clearly one of the crucial elements of the project success. The
core of the issue lies in making an effective and coherent transfer on the way from
inputs to project outputs. According to Juran (2010), quality can be considered a feature
of final outcomes which meet customers´ needs and thus provide sufficient satisfaction.

33
He is also well-known thanks to his distinction of big and small quality. The ´Big Q´ is
a matter of 1980s embraced by quality and senior managers who took into consideration
encompassing the goals of the companies. The ´Little Q´ is according to him limited in
scope and related to individual outcomes or target groups. There is a definition of PMI
which describes quality as a degree to which requirements were fulfilled (PMBoK
Guide, 2013).
There are three main misunderstandings stated by Rose (2005) in his book which have
been assumed over time. The first one is the mistake of an expensive process. He points
out on the frequent repeated presumption that quality is expensive which he describes as
´conventional ignorance´ in this case. The main point is that quality actually costs some
money but on the other hand it pays back over and over. So the result of this is that
quality is essentially free. The second presumption is associated with price of the final
product. It is incorrect to think that quality confers price. The last one is related to the
factor of time consumption. This aspect is taken into account from the spiritualist point
of view by Rose who claims that we always have time and we should have time
especially for quality as a major part of project management process.
3.4.1 Total Quality Management
TQM consists of the efforts of the organization to establish and maintain the stable
environment in which the company continually improves its ability to provide high
quality outcomes, i.e. products and services. There is no currently agreed approach of
comprehensive quality management and thus it usually draws on previously developed
tools and techniques of quality management. The comprehensive quality management
system enjoyed wide attention during the late eighties of the 20th
century. There are
several main prerequisites to this approach, such as a well-established hierarchy, a set of
processes, will of individuals towards the initiative, familiarization with TQM benefits
and corporate culture that fits to the whole idea (Pries and Quigley, 2012).
There are several substituting systems, such as ISO 9000 which is a series of standards,
Lean Manufacturing which is focused on preserving value with less work and Six
Sigma as a set of techniques and tools for process improvement.

34
4 CHARACTERISTICS OF IPMA AND PMI ORGANIZATIONS
This chapter is dedicated to two main organizations that take an active part in providing
standards and standardization in the project management environment all over the
world. Their existence is very closely connected with their standards that represent
various approaches to project management. It is necessary to also mention other
standards dealing with the issue, such as PRINCE2®
and a directive of project
management quality ISO which does not have its own standard of project management
even though it is in process. This part of the thesis is mainly focused on describing basic
characteristics of IPMA and PMI, their history, structure and representation in local
condition of the Czech Republic. The other two above-mentioned standards will be
touched only by brief description.
4.1 INTRODUCTION AND DESCRIPTION OF ORGANIZATIONS
International Project Management Association (IPMA) is, according to its official
websites, a federation of over 55 member associations which develop project
management competencies in their geographical areas of influence, practitioners
interacting and relationships developing with corporations, agencies at the
governmental level, universities and colleges and institutions focused on consulting and
training. IPMA actively promotes competence connected with project management for
wide variety of customers, such as project teams, business organizations, individuals
and government agencies from Europe, Asia, Africa, the Middle East, Australia and
North and South America.
Professional international association IPMA is provided by project management
association called SPŘ, o. s.8
in the Czech Republic. This institution uses articles of
original association including its standard and certification program. This non-profit
organization is, according to its official websites, involved in project management as
a member of association of IPMA. Their primary role is to promote project management
at the Czech background as a distinct profession with a global agency and standards of
its own as well as concrete knowledge and abilities.
8
It is a certifying authority originally called 'Společnost pro projektové řízení, o. s.' in Czech.

35
Since IPMA is an association, it unites national entities that are its members. These
entities are concentrated on individual project managers and firms being engaged in
project management. With regard to this fact, they offer certifications and services
provided by IPMA in particular countries. They also have the opportunity to create so
called national standard which is based on standard managed by IPMA and provided in
the appropriate country language. IPMA operates in 50 countries around the world and
has more than 170 000 certified project managers9
.
Figure 6: IPMA Governance (source: official website of International Project
Management Association)
The IPMA Governance consists of a Council of Delegates, an Executive Board, and
a few Management Boards, working and project groups and a Secretariat. This Council
and Board Members come from the whole world and thus reflect the global thinking of
IPMA.
Project Management Institute, hereinafter referred to as PMI, is the second professional
organisation associating individual project managers and entire companies involved in
project management as a whole. The typical output of the entity is a standard called
9
This figure is valid for the year 2012 (source: official website of International Project Management
Association).

36
Guide to the Project Management Body of Knowledge – PMBoK®
Guide, a widely used
standard for project management in the world. One of the biggest attractions for those
who are interested in project certification is undoubtedly the fact that PMI is the largest
organization of its kind. The largest in terms of both number of members and certified
project managers. The certification holders need not to be members of the institute as
well as in the case of IPMA. More than 200 000 members come from the region of
North America as PMI arose right there. Nowadays, PMI operates in more than 180
countries and has over half a million members and certified project managers. The PMI
organization found representation in the Czech Chamber of PMI in our regional
conditions (2012 Annual Report PMI, 2013).
4.2 IPMA AND PMI HISTORY
An organization called Internet was founded in 1964 and it associated project managers
from Europe. This institution was later renamed to International Association for Project
Management which is known as IPMA nowadays. In 1967 the Czechoslovak Project
Management Science Group invited to join the first 'all-state' conference which deals
with methods of network analysis in Prague. IPMA, which created a standard of project
management called IPMA®
Competence Baseline – ICB, organizes forums, publishes
magazines and especially the development of project management moves towards. The
institution is represented by SPŘ in the Czech Republic and was established in 1990
under the name of INTERNET CZ. It began certifying project managers according to
standard ICB in 2001 and takes an active part in organizing conferences, collaboration
with YPMG10
, newsletter publishing and other activities. The greatest achievement of
the entity was a publication of the National Standard Competences of Project
Management in 2008 (Kryst, 2011).
The emergence of non-profit professional organization PMI, according to the same
author, dates back to 1969 with the reason of need to capture wide range of
management techniques which already were in common use at that time. First thoughts
regarding the standardization came in 1976 as well as first signs of project management
10
Young Project Managers Group is a group of people whose main intent is to learn. They create projects
according to IPMA standard which gives them knowledge of leadership and management tools to support
project management.

37
as a separate profession. The PMI Board of Directors decided to set up a project to
anchor the concepts and procedures necessary to support project management as
a separate profession in 1981. The project was involved in distinctive characteristics of
project managers, content and structure of knowledge base know as standards and
profession accreditation that gave rise to the possibility of PMP®
certification. The
results of the project were published in the Project Management Journal in 1983
(PMBOK®
Guide, 2013).
4.3 STRATEGIC PLAN OF BOTH INSTITUTIONS
Both institutions developed their long-range strategic plans which set strategic goals and
principles to identify further needs of members and customers and options for satisfying
those needs.
International Public Management Association determined their mission as a process to
enhance public sector performance by providing human resource leadership, promotion,
professional development and a circle of human resources professionals for sharing of
sources and conceptions. IPMA is willing to become a leading organization for public
human resources. The strategic plan of IPMA (Long-Range Strategic Plan, 2012)
contains five strategic goals:
 membership – maintain membership and increase member involvement which is
connected with enhancing the partnership between the Association and the chapters
and regions,
 research/advocacy – conduct research, benchmarking, surveys to identify best
practices and become the leading voice advocating for public sector HR at the level
of public policy,
 professional development – provide opportunities for professional development as
well as certification program being valued by the HR community,
 assessment – develop, authenticate and market quality assessment products, and
 financial and organizational health – increase the awareness and attractiveness of
IPMA, ensure the institutional leadership and guarantee financial stability.

38
Project Management Institute also developed a strategic plan prepared by PMI Board of
Directors. There are strategic queries about the organization´s future and set horizons
focused on separate threshold of strategic dialogue. The core purpose of the document
and its mission is to advance the practice, science and profession of project management
throughout the world in a conscious and proactive manner. The strategy contains several
core values that are not intended to be changed, vice versa; they are fundamental and
deeply held. The values are project management impact, professionalism, volunteerism,
community and engagement. The mission is determined in a few periods. The most
elaborated the strategic guidance for next 3 – 5 years which is represented in the
strategy map below (Strategic Plan, 2012).
Figure 7: PMI Strategy Map (source: Strategic Plan, 2012)
This horizon articulates goal statements of further five years. The idea undertakes
institutional beneficial outputs which will be provided to the interested group and
stakeholders of the Institute. The whole document is related to the Working Strategic
Plan. The PMI Board will keep on refining the material as a part of its annual strategic
work.

39
4.4 DESCRIPTION OF IPMA AND PMI STANDARDS
Both International Public Management Association and Project Management Institution
have their own standards which are developed on different approach to project
management and thus determine the difference between institutions as a whole.
4.4.1 ICB and CzCB Standards
This chapter will analyse two standards of project management within the International
Public Management Association. Due to the fact that National Standard of Competence
of Project Management (CzCB) is based on IPMA – Competence Baseline (ICB), it is
non-essential to do a detailed description for both of them. Current release of the ICB
made by IPMA is version 3.0 published in 2006 and CzCB version 3.1 issued by SPŘ in
2010. The concept of this standard is, compared to the other, competency. It is not
focused on the precise form of defined processes and their particular application but on
the ability and skills, in other words, competences of project, program and portfolio
managers and members of their teams. These consequences can have many reasons but
the most probable is the one that the standard was developed in sixties on the basis of
national standards and regulations of a few European countries which were produced
independently. That is why ICB does not ordain processes nevertheless it recommends
steps that should be applied in the particular situation (Doležal, Máchal, Lacko et at,
2012). The document is divided into six parts, such as preface, introduction, key
concepts, certification, element description and appendices.
The introduction outlines the reason of the very standard and defined skills and abilities
as a managerial competence. Competence is subsequently divided into three main areas
that should be mastered by a manager. Such competences present the integration of all
components of project management from the perspective of a project manager during
the evaluation of a situation (Pitaš, 2012).
The next chapter of the standard contains basic concepts of project management, such
as project, professional project management. It also sets principles of the standard and
includes a four-stage system of certification and certification benefits for holders
including requirements and necessary educational skills. The second chapter of the

40
standard defines terms of competence and its three areas – technical, behavioural and
contextual. Competence is a body of knowledge, personal approaches, skills and related
experience which are essential for success in a particular position needed. ICB indicates
project management competency as the one that runs through the three competency
areas (Fewings, 2013). These areas were developed to better assess competencies as
themselves as well as for purposes of examiners within certification:
Competences
Technical Behavioural Contextual
1.01 PM success 2.01 Leadership 3.01 Project orientation
1.02 Interested parties 2.02 Engagement 3.02 Program orientation
1.03
Project requirements and
objectives
2.03 Self-control 3.03 Portfolio orientation
1.04 Risk and opportunity 2.04 Assertiveness 3.04
Project, program, and
portfolio implementation
1.05 Quality 2.05 Relaxation 3.05 Permanent organization
1.06 Project organization 2.06 Openness 3.06 Business
1.07 Teamwork 2.07 Creativity 3.07
Systems, products and
technology
1.08 Problem resolution 2.08 Results orientation 3.08 Personnel management
1.09 Project structures 2.09 Efficiency 3.09
Health, security and
environment
1.10 Scope and deliverables 2.10 Consultation 3.10 Finance
1.11 Time and project phases 2.11 Negotiation 3.11 Legal
1.12 Resources 2.12 Conflict and crisis
1.13 Cost and finance 2.13 Reliability
1.14 Procurement and contract 2.14 Value appreciation
1.15 Changes 2.15 Ethics
1.16 Control and reports
1.17
Information and
documentation
1.18 Communication
1.19 Start-up
1.20 Close-out
Table 3: The Competence Elements of ICB (source: own design inspired by
Rozemeijer, 2007)
The ICB does not counsel any specific methodologies, methods or tools. That might be
defined by the organization. It is up to the project manager to choose appropriate
methods and tools for particular project situation or background (Rozemeijer, 2007).

41
4.4.2 PMBOK Guide Standard
This section is dedicated to the flagship of PMI standard. A Guide to the Project
Management Body of Knowledge in its fifth edition is a handbook for project managers
based on the best practices of project management. All the used procedures are widely
used and generally recognized around the world. Implemented practices and techniques
were found to be useful and valuable for project management as a whole. The concept
of best practices indicates that the application of skills, techniques and tools described
in the standard generally increases the chance of success of a wide range of projects
(PMBOK®
Guide, 2013). Every issued edition has been based on the original document
of Project Management Body of Knowledge which was released in 1987. The document
itself (2013, p. 563) describes standard as: “a document that provides, for common and
repeated use, rules, guidelines, and classification of project activities or their results,
aimed at the achievement of the optimum degree of order in a given context.” PMBOK®
Guide standard is not the only standard for project management which was developed
by PMI. However, it is the basis for all other specialized standards. The list of standards
is available on the website of PMI.
The basic approach is the concept of procedural issue of project management. It defines
five main circles of processes, nine knowledge areas, individual processes and their
interconnections. All processes a process steps are defined within their inputs, outputs
and transformational tools, such as tasks, methods and techniques (Doležal, Máchal,
Lacko et al, 2012).
This chapter also contains the outline of the document which is not excessively
analysed. Those who are interested in detailed outline are referred to the complete
version of the document. The structure of the document is not definitive since the
overall structure is the subject of constant comments, improvement, moving, adding and
deleting of chapters. The entire project management is constantly evolving and
therefore it needs to be developed as well as its standard. Publication of PMBOK®
Guide is published in eleven languages which do not contain Czech, unfortunately.
However none of the main world languages is missing (Kryst, 2011). The table of
contents includes introduction, organizational influences and project life cycle, project
management processes, project integration management, project scope management,
project time management, project cost management, project quality management,

42
project human resources management, project communication management, project risk
management, project procurement management, project stakeholder management
(PMBOK®
Guide, 2013).
4.5 CERTIFICATION AND DESCRIPTION OF CERTIFICATES
The standards of IPMA and PMI entities offer the possibility of certification of project
managers. It means certification of individual applicants in both cases. This aspect is
different from, for instance, PRINCE2®
which also offers accreditation for permanent
organizations. PMI basically certifies in the form of a test in which applicants
demonstrate their knowledge of the relevant issue connected with the standard. IPMA is
more focused on the personality of the candidate (Doležal, Máchal, Lacko et al, 2012).
4.5.1 IPMA®
Certification
For the reason that IPMA accesses to certification a bit differently, the ICB standard
cannot be fully verified only by some check test according to Doležal, Máchal, Lacko et
al (2012). It does not touch knowledge of processes, their activities, etc. but the
assessment of the competence of the candidate. Hence IPMA has a four-level
certification system that is not completely hierarchical and so individual levels do have
different aiming. The levels of certification, according to ICB – IPMA Competence
Baseline Version 3.0 (2006), are:
 IPMA Level A (Certified Projects Director) – is focused primarily on the ability to
manage portfolio using adequate methods and tools and does not concern any
individual projects,
 IPMA Level B (Certified Senior Project Manager) – the subject of the certificated
person is the ability to manage a complex project which may contain sub-section so
the main activity of such a manager is to lead managers of particular subprojects,
 IPMA Level C (Certified Project Manager) – verifies the ability to manage
a project with limited complexity which means, in addition, to proving a certain
level of knowledge and demonstration of experience,

43
 IPMA Level D (Certified Project Management Associate) – is designed primarily
for members of project teams who perform individual tasks within a project as
specialists or to substantiate the theoretical knowledge of project management.
The certification process contains several steps to assess an applicant. The assessment
steps are applied to each of the IPMA competence levels. The IPMA certification
system is not completely rigid.
The official website of International Project Management Association includes
a thorough overview summarizing the whole certification process at every level:
Figure 8: Four Level Certification System and Process (source: official website of
International Project Management Association)
The effectiveness of the assessment can benefit from the so called STAR-method
according to ICB – IPMA Competence Baseline Version 3.0 (2006, p. 12): “the
assessor asks the candidate to describe a situation from the project report he has
produced stating the task the candidate had to carry out in that situation, what activity
he performed in that situation and what result was achieved.”
As mentioned in the chapter 4.4.1, there are three competence elements within IPMA
standard. In connection with this fact, each project management competence element is
constituted of knowledge and experience. The total competence obliged per range
should be segmented between the ranges in the following portions:

44
Graph 1: Weighting of Competence Ranges at IPMA Levels (source: own design
inspired by ICB – IPMA Competence Baseline Version 3.0, 2006)
The authors of the Baseline 3.0 took into account the fact that several competence
elements will be considered as a rule in a practical project programme or portfolio
situation. That results in the ICB where the main relationships are listed in each
competence element description. With respect to this, the purpose of the main relations
between the competence elements is to help the reader to apply the competence
elements in the practical situations (ICB – IPMA Competence Baseline Version 3.0,
2006).
Recertification is an assessment process of professional qualification of already certified
project managers. The qualification is defined, according to the official website of the
Association, as ability to acquire and apply knowledge and skills at the given level of
project management. The process of recertification is mandatory for every certified
manager who intends to henceforth use benefits and boons of the certification. The
period of validity is five years regardless of the level of certificate.
0%
10%
20%
30%
40%
50%
60%
70%
80%
IPMA Level A IPMA Level B IPMA Level C IPMA Level D
Percentage
Level of IPMA
Technical
Behavioural
Contextual

45
4.5.2 PMI®
Certification
The institute of PMI as an international organization in the field of project management
education provides five basic types of certification. There had been only one certificate
called PMP®
in bygone days and the rest was added later. All the existing certificates
within PMI are based on passing through entry requirements, except for PgMP®
where
every applicant has to attend an assessment centre. The entry requirements are required
length of experience, number of worked hours of training in project management, etc.
The PMI test is identical all over the world, runs only in English and its completion is
followed by issuing of internationally valid and accepted certificate. PMI standard
allows obtaining of six different certificates (Doležal, Máchal, Lacko et al, 2012):
 CAPM®
- Certified Associate in Project Management,
 PMI-SP®
- PMI Scheduling Professional,
 PMI-RMP®
- PMI Risk Management Professional,
 PMP®
- Project Management Professional,
 PgMP®
- Program Management Professional,
 PMI-ACP®
- PMI Agile Certified Practitioner.
In collaboration with these exams, there is an important publication which guides
practitioners of the profession and describes the expectations that appliers should hold
for themselves or others. The name of the book is Project Management Institute Code of
Ethics and Professional Conduct and is specific because of the basic obligation of
responsibility, respect, fairness, and honesty (PMBOK®
Guide, 2013).
If we proceed from the same source in the following words, there are five major
benefits of the certification which are connected with passing the exam. The first one is
flexibility because the certification does not come from the only methodology and thus
is flexible and adaptive. The next one is actualization which is associated with incessant
updating of the standard to be up-to-date with respect to current needs. Professional
development is the next benefit based on the procedure of recertification programme
which requires attending at educational activities and conferences. One of the most
down-to-earth benefits is competitiveness on labour market which is increased by
having the certificate according to the PMI surveys. This field is concluded by prestige

46
that is connected with the fact that PMI is the first institution providing certificates
especially for project managers.
The CAPM®
certification was chosen for deeper analysis as it offers recognition to
applicants who are willing to start their career in the field of project management as
well as to those who are already members of any project team and wish to demonstrate
their knowledge. The certification denotes that the individual possesses the knowledge
in principles and terminology of PMBOK®
Guide. People who contribute specialized
skills to a project team can benefit from this certification by allowing them to neaten
their work with that of project managers. Wisdoms that help to develop growing levels
of competence in the project management practice, such as on-the-job experiences, can
be enriched by the knowledge of practitioner which is gained from earning CAPM®
certification (CAPM®
Handbook, 2013).
There are 150 multiple-choice questions where 15 of them are considered pre-test ones.
Those questions do not affect the final score and are used in examinations as an
effective and legitimate way to test the validity of future examination questions. All
questions are placed throughout the examination randomly according to its Handbook
(2013). The questions are arranged as stated in the Table number 4.
PMBOK®
Guide – Fifth Edition
Chapter
Percentage of Questions
3 15%
4 12%
5 11%
6 12%
7 7%
8 6%
9 8%
10 6%
11 9%
12 7%
13 7%
TOTAL 100%
Table 4: Structure of CAPM®
Questions (source: own design inspired by CAPM®
Handbook, 2013)
The recertification process starts on the day of successful completion of the certification
process. This period of CAPM®
takes five years, the rest certifications have to be
updated in a three-year-long period. A year before the expiry, i.e. at the beginning of the

47
fourth year of certification cycle is the time when applicant has the option to apply for
recertification. The exam has to be passed in this one-year period which is called
renewal period. When we speak about the other certifications, there is a specific
programme called Continuing Credential Requirements which contains prerequisites for
prolonging the cycle. Every applicant has to gain particular number of Professional
Development Units (PDU) to apply for recertification of any type. There are two ways
how to gain PDU points – through Education PDU Categories containing accredited
courses, e-learning seminars, etc. and Giving Back to the Profession Categories
associated with author´s comments, working as a project manager and others. One PDU
point means one hour spent on above-mentioned activities (Kryst, 2011).
Certification Amount of PDU points
needed
Transferable amount
PMP®
60 20
PgMP®
60 20
PMI-SP® 30 in the field of PM
planning
10
PMI-RMP® 30 in the field of risk
management
10
CAPM®
- -
Table 5: The Amount of PDU Points Required for Recertification (source: own
design inspired by PMP®
Handbook, 2013)
It is possible to transfer only those PDU points that are earned in the last year of
certification cycle under condition of certain amount mentioned in the Table number 5.
The holder is solely responsible for recording PDU points. PMI also recommends
retaining documentation connected with PDU points reporting.
4.6 BRIEF OVERVIEW OF OTHER ORGANIZATIONS
As you might know, IPMA and PMI are not the only organizations dealing with the
issue of project management. In spite of the fact that the thesis is mainly focused on the
two standards, this chapter serves as a brief and relevant completion of the topic to let

48
you achieve a compact perspective. Another purpose of the chapter is not to miss out
any further options on this field and thus not to give preferential treatment to IPMA and
PMI.
4.6.1 PRojects IN Controlled Environments – PRINCE2®
This is a process-based method which was established in 1989 by CCTA11
. It is
extensively used by the government of United Kingdom and also in private sector
across countries. PRINCE2®
defines project a project as “a temporary organization that
is created for purpose of delivering one or more business products according to an
agreed Business Case,” according to Hinde (2012, p. 3). The same author describes
a project team as a group of people who come together for the duration of the particular
project and deliver business products.
There are several key features of PRINCE2®
according to its official websites:
 focus on business justification,
 defined organisation structure for the project management team,
 product-based planning approach,
 emphasis on dividing the project into manageable and controllable stages, and
 flexibility that can be applied at a level appropriate to the project.
There are two main certifications. The first one is the foundation certification which is
a prerequisite to the second one. It deals with measure whether an applicant would be
prepared to act a mature member of any project team that uses this method within the
PRINCE2®
background.
The second certification called a practitioner certification which is aimed on measuring
whether an applicant is able to run and manage a project within the same conditions
which are described for foundation certification. An applicant has to produce detailed
explanations of all procedures, techniques and tools and show that fully understands all
the processes including a demonstration of understanding the reasons behind the
processes (Lopez et al, 2005).
11
The Central Computer and Telecommunications Agency which is nowadays called the Office of
Government Commerce.

49
4.6.2 Australian Institute of Project Management – AIPM
AIPM is a leading entity for project management in Australia that was established in
1978. Thanks to its more than 10,000 members, it is considered the largest national
membership organization for project management in Australia and also the second
biggest member of the International Project Management Association. Its mission is to
come up with innovative and up-to-date information from the project management point
of view to Australia according to its official websites.
It includes six basic levels of certification. The first three are called RegPM
programmes which can be described as a competency-based, workplace assessment
program within the National Competency Standards for Project Management. This
requires all applicants to make a so called logbook of evidence to prove their
competency at the certain level. QPP certification as the fourth level is convenient for
those who already are members of any project team and take an active part in assisting
and contributing to a project. The fifth certification called RPM is suitable for persons
who are willing to manage a project rather than interface on its project team and the last
level called MPD certificate is relevant for managers who manage complex projects
with managerial responsibility for multiple structures of the project and other connected
activities (Lopez et al, 2005).
4.6.3 Association for the Advancement of Cost Engineering – AACE
This association was founded in 1956 in USA and is a non-profit association which
serves the total cost management community. The institution is aimed on a wide variety
of disciplines across all industries and has over 9,000 members.
Candidates can pass exam as certified cost engineers or certified cost consultants. The
recertification cycle is three-year-long and allows the individuals to demonstrate their
specialty and expertise through work experience, education, professional development
and other aspects. There are several main branches that AACE is focused on, such as
planning, scheduling, cost control, management science, etc (Rad and Levin, 2002).

50
4.6.4 Association for Project Management – APM
The Association for Project Management is a provider of a Certified Project Manager
(CPM) which is connected with identification of project management competences. It is
an entity with more than 20,000 individual member and 500 corporate ones. Its mission
is, according to its official website, to provide leadership to the movement of
institutions and persons who are interested and engaged in the same aim which is to
improve project outcomes.
APM has according to Rad and Levin (2002, p. 58) “four main levels of projects:
 level 1 – in-house with a single disciplinary team,
 level 2 – in-house with a multidisciplinary team,
 level 3 – multi-company with a multidisciplinary team, and
 level 4 – multi-country and multi-company with a multidisciplinary team.”
The association aims to promote their programme called ‘Five Dimensions of
Professionalism’. It contains breadth, depth, achievement, commitment and
accountability. All the factors within the framework should help candidates to develop
their career.

51
5 COMPARISON OF IPMA AND PMI STANDARDS
The main aim of this chapter is to analysis information and data mentioned in the
above-written parts of the thesis connected mainly with IPMA and PMI approach and
certification. It contains price comparison and comparison of the number of certified
project managers. The mission of the chapter deals with summarization of the main
differences, pros and cons, so that a reader is able to create a comprehensive view of the
matter. The issue described very informatively will be now taken into comparison side
by side.
There are two main organizations which issue, manage and extend their own standards
of project management. The IPMA is connected with ICB standard and its Czech
version made by SPŘ which is CzCB. The institute of PMI is associated with PMBOK®
Guide. These standards play a crucial role in providing a certification process for
project managers. The IPMA promotes A, B, C, D levels. The PMI offers certificates
CAPM®
, PMP®
, PMI-SP®
, PMI-RMP®
and PgMP®
. There is a need to pass through
a certification process to get the certification.
5.1 APPROACH OF IPMA AND PMI TO PROJECT MANAGEMENT
The IPMA approach to project management is defined as a set of knowledge, skills and
those forms of behaviour that enable us to serve the required work performance. Such
competences are divided into three groups:
 technical skills,
 behavioural competencies,
 contextual competencies.
This issue described in detail in Table no. 3 (page 40) take into consideration
knowledge of various methods, tools, techniques and procedures.
The PMI is the application of knowledge, tools and techniques to project activities to
meet project demands. This approach contains 47 logically grouped project
management processes to accomplish through the appropriate application and
integration. This scheme is divided into five process groups:

52
 initiating,
 planning,
 executing,
 monitoring and controlling, and
 closing.
There are also several aspects that are included in managing a project, such as
requirement identification, addressing the various needs, carrying out communication
among stakeholders, creating project deliverables and balancing the competing project
constraints: scope, quality, schedule, budget, resources and risks (PMBOK®
Guide,
2013).
The PMBoK®
Guide (2013) also describes a project management plan as iterative
activity which is progressively elaborated throughout the project life cycle. This
procedure contains improving and detailing plan as more detailed and specific
information and more precise computations become accessible.
5.1.1 Comparison of Project Definition
As written in the Chapter 3.1.1, there are several angles of reflection of how to
apprehend the definition of project. It is natural that both comparing standards have
their own differing ideas about this issue.
When we take into consideration a project in the project management background, the
IPMA standard describes it as “a unique set of parameters, such as objectives, clear
deliverables, time and cost, project-specific organisation and by their differentiation
from other operational activities,” (ICB – IPMA Competence Baseline, 2006, p. 128).
The same book also claims that project co-ordinated activities as a unique set which are
undertaken by an organisation to achieve specific goals which are related to the project
deliverables. Projects also comprise attributes of novelty, legal constraints, work sharing
and team work and complexity. The standard besides other things pays attention to the
classification by the type, such as: investment, R&D, organisational or ICT within the
other levels of order as internal and external projects and regional, national or

53
international from the regional development point of view. These facts are also stated in
the ICB – IPMA Competence Baseline (2006).
With respect to IPMA definition of a project, PMBoK®
Guide (2013) is more focused
on unique product, service or result of the project. This is reflected for instance in case
when speaking about formal beginning and end of a project. The Guide defines the end
of the project as a period when results and objectives are accomplished or when the
project is terminated since the outputs are not carried out. Another definition also
confirms our above-mentioned presumption: “every project creates a unique product,
service or result,” (PMBOK®
Guide, 2013, p. 3). The Guide also describes in detail
what a project can create. The final outputs are divided into a product as a component of
another item, a service or capability to perform a service, an improvement of already
existing product or service, and a result in the form of an outcome or document.
The PMBoK®
Guide as well as ICB defines exact differences among portfolios,
programs and projects. A portfolio refers to a collection of projects, programs and sub
portfolios. Programs are next to this grouped within a portfolio and are comprised of
projects and subprograms. Despite programs and projects do not need to be
interdependent or directly related; they are linked to the particular strategic plan by
means of the portfolio of organisations (ICB – IPMA Competence Baseline, 2006 and
PMBOK®
Guide, 2013).
5.1.2 Project Management and Cycle Comparison
The project cycle is very closely connected with time. This is immediately apparent
when reading both IPMA and PMI approach to this issue. Doležal, Máchal, Lacko et al
(2012) state that there are two renditions of the cycle. The most general one divides
project into pre-project phase (definitional), project phase (initiation, preparation,
realization and termination) and post-project phase (evaluation and operation). The
realization is many times preferred before the others which results in underestimation of
the rest, mainly pre-project and post-project phases. IPMA also put an emphasis on
milestones of the project which are defined as important events in some specific time
point within the particular project. It usually has null length of duration and is
a significant prerequisite for the initial planning.

54
Since the standard deals with very thorough dividing of life cycle, there are also set
recommended tools and procedures relevant for the specific phase. The pre-project
phase is coupled with the ´Opportunity Study´12
and ´Feasibility Study´13
. It also enables
using of the ´Pre-project reflection´ which is a document combining both mentioned
tools and recommended for easier projects. The stat-up of the project is accompanied by
the ´project charter´ which is considered a fundamental project document dealing with
basic technically-organizational project parameters. The next phase called preparation
of the project is the point when a project team is set and defines a range of the project
using, for instance, ´WBS´ and ´table of dimensions´ followed by the ´project
management plan´ and its approved version called ´baseline´. The realization of
a project is in many cases accompanied by a kick-off meeting at the time when the
realization physically starts. The close-out of a project is not understood as termination
of all activities connected with the project. However it is followed by evaluation and
commissioning. The accurate determination of the time of completion is essential for
evaluation whether the project met its triple constraint (see Chapter 3.1.2) and other
elements (Doležal, Máchal, Lacko et al, 2012).
The PMBoK®
Guide (2013) describes project cycle as the series of sequential phases
with determined names and numbers that are related to a project from its initiation to its
closure. It provides a fundamental framework enabling management of the project
regardless of any type of the activity. According to the Guide, every project is modified
by size and intricacy and thus the PMI standard follows very generic life cycle, such as:
 starting the project,
 organizing and preparing,
 carrying out the project, and
 closing the project.
Next to this, PMI defines so called iterative and adaptive life cycles. The iterative are
those which are characterized by one or more project activities that are intentionally
repeated according to the product increases. Adaptive life cycles are proposed to react
on some bigger changes and ongoing stakeholder preoccupation. Although this type of
12
The document that lays a foundation of pre-investment phase within which is defined the widest range
of opportunities that can be taken into account as potentially and economically profitable.
13
Its aim is to verify the feasibility of a business plan. The intent can take different forms, such as the
acquisition of fixed assets, new market entry, and new product on the market or other project intention.

55
methods is also iterative, iterations are swift, which means duration of two to four
weeks, and fixed in time and cost. These cycles are the most convenient for projects
with changing environment and pre-defined scope and requirements (PMBOK®
Guide,
2013).
It is evident that IPMA approaches to the cycle definition much more comprehensively
described than by PMI. When reading both resources, the first standard describes the
process literally step by step with suggested and recommended tools accompanying
certain procedure.
5.1.3 Project team and its Comparison
Both comparing standards agreed on a project team as a substantial element of every
project. It is a propelling force resulting in final outcomes in every shape or form.
Successfulness of a project highly hinges on the right composition of the project team.
Even this crucial aspect has slightly different descriptions in the two standards
comparison.
The introduction of teamwork in the ICB – IPMA Competence Baseline (2006) is
dedicated to the definition of project team as a group of people who work together to
achieve some joint objective and to project team building and communication practising
at project meetings, workshops and seminars in the online form and via electronic tools
in the offline form. What marks this standard is the team development followed by this
defined process:
 form – the overall focus is not clear for members as well as their individual roles
and responsibilities, it is a kind of testing phase developing joint sense of purpose,
 storm – phase of assigning roles accompanied by possible conflicts among
members arising from approaches polarization,
 norm – standards and norms forming when familiarizing with values, skills, tools,
criteria and assigning of team leaders,
 perform – phase of performance when every member is fully engaged in
achievement of joint objectives together as one project team.

56
All in all, team forming is according to IPMA a process with several stages occurring in
time. This is supplemented by Doležal, Máchal, Lacko et al (2012) who speak about
several characteristics that need to be met within a project team, such as common
objective, mutual responsibility, joint action readiness, constructive conflicts,
confidence, openness and knowledge ability, self-awareness, etc.
Project team is described from the human resource management point of view in the
PMBoK®
Guide (2013). The Guide divides HR management and project team forming
into four basic processes, such as plan human resource management, acquire project
team, develop project team and manage project team. Every separate unit has its own
proposed inputs, tools and techniques, and outputs. To better understand the whole
scheme, please look at the Figure number 9, which summarizes the whole issue. For
further detailed information which is not a matter of this thesis, follow the PMBoK
Guide (2013), Chapter 9.
Figure 9: Project HR Management Overview (source: PMBOK®
Guide, 2013)

57
It is obvious that each standard approaches to this issue in a different way. The ICB lets
it take its course and describes mainly the project team development in detail. The
PMBoK®
Guide on the other hand intimately depicts every input tool and output within
each of four processes. In any event, both approaches to the issue are right and thus it
depends on personal preferences which one is more convenient for particular purposes.
5.1.4 Project Quality Management by IPMA and PMI
Quality of a project is an integral part of the processes that accompany the whole project
and its project team. It is determined by the extent to which the requirements of the
project are accomplished. Quality management is based on the participation of all
members of the project team who have to consider the quality of outputs the basis and
core of every project.
The ICB understands validation of project quality as a process which is carried out via
procedures such as quality assurance, quality control and project and product audits.
There are several types of computer-aided design for these purposes, scale models or
prototypes which can be used and tested to validate the product design and, at the same
time, to adapt outputs to satisfactory level. Such testing is important to prove that the
outputs meet the original specification and to uncover any blemishes (ICB – IPMA
Competence Baseline, 2006).
There are two main vantage points to quality implementation according to IPMA, such
as quality of project processes and quality of project products. This is added by six
principal areas which might help to enhance the quality:
 quality management policy – usually in the form of a document made by a quality
expert containing main objectives and responsibilities,
 quality objectives – as a part of corporate policy of quality with specific aims and
time frame regarding their accomplishment,
 quality assurance – umbrella title for formal issues and management processes to
ensure the required quality of products and services,

58
 quality control – provides constant monitoring, identification and elimination of
problematic cases which is sometimes said to be technical aspects of quality
management,
 quality audit – as an independent quality evaluation carried out by qualified staff
ensuring quality level, wholesomeness, compliance with legislation and
appropriateness and timing, and
 plan quality management – as a result of a project manager work describing
achievement of particular level of quality.
The same authors (Doležal, Máchal, Lacko et al, 2012) also determine main processes
of quality management, such as quality planning, quality assurance and quality control.
These processes are supplemented by several main tools which are according to both
IPMA and PMI convenient for project quality management. See the following Table
number 6:
Tool Description
Check sheets
A method of systematic collection and subsequent
presentation of data.
Pareto diagrams
A specific type of histogram that helps to identify and
address priority problem areas.
Cause and Effect analysis
An analysis using diagrams to identify the
relationship between the effect and cause.
Analysis of trends
A statistical predictive method that quantifies the
relationship between data.
Histograms
A tool for graphical presentation of data in the current
time without trends and deviations.
Scatter diagrams
A type which organizes data by using two variables
displayed in the graph.
Control diagrams
A method used to prevent faults using statistical
methods.
Table 6: Control Quality Tools by IPMA and PMI (source: own design inspired by
Doležal, Máchal, Lacko et al, 2012 and PMBOK®
Guide, 2013)
PMBoK®
Guide (2013) also defines three main axes of project quality management in
the form of plan quality management, perform quality assurance and control quality and

Analysis of IPMA and PMI Standards and Their Comparison

Analysis of IPMA and PMI Standards and Their Comparison

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