📘 Section 24: Project Management Competencies

Project Managers need a combination of skills, knowledge, and personal attributes to successfully deliver projects. PMI outlines three core competencies that every Project Manager must possess to lead projects effectively:

🔑 1. Technical Project Management Competency

This refers to a Project Manager’s ability to apply project management tools, techniques, and knowledge to successfully manage a project.

✅ Key Skills:

• Defining project scope, schedule, and budget
• Managing risks, resources, and quality
• Using project management tools (e.g., Gantt charts, Kanban boards)
• Ensuring compliance with standards and regulations
• Monitoring project progress and performance

📋 Example:

A Project Manager creates a Work Breakdown Structure (WBS) to ensure all project tasks are accounted for and assigns tasks to team members accordingly.

🔑 2. Leadership Competency

Leadership competency focuses on a Project Manager’s ability to guide, motivate, and inspire the project team to achieve project goals.

✅ Key Skills:

• Communicating effectively with stakeholders
• Resolving conflicts and fostering collaboration
• Inspiring and motivating the team
• Decision-making and problem-solving
• Leading with integrity and promoting ethical behavior

📋 Example:

A Project Manager resolves a conflict between two team members by facilitating a discussion to understand their perspectives and reach a resolution that benefits the project.

🔑 Leadership Style (PMP Study Guide)

The leadership style of a Project Manager plays a crucial role in the success of a project. Effective Project Managers adapt their leadership approach based on the project environment, team dynamics, and organizational needs. Understanding different leadership styles can help you manage your team more effectively and achieve project objectives.

✅ 1. Transactional Leadership

Focuses on performance, tasks, and rewards. This style is primarily task-oriented, where the leader sets clear goals, monitors performance, and rewards or penalizes based on outcomes.

Characteristics:

• Goal-driven and performance-focused
• Rewards for meeting targets, penalties for underperformance
• Strong emphasis on project timelines and deliverables

Best used when:

• There are clear project goals and strict deadlines
• The team requires close monitoring

Example:
A Project Manager rewards team members who meet milestones ahead of schedule and penalizes delays by adjusting their responsibilities.

✅ 2. Servant Leadership

Focuses on serving the team first. The Project Manager acts as a facilitator and supports the team to achieve project success by removing obstacles.

Characteristics:

• Empowers team members
• Focuses on team well-being
• Encourages collaboration and open communication

Best used when:

• The team is self-organizing
• There is a need to boost morale and engagement

Example:
A Project Manager spends time listening to team members’ concerns and works to remove obstacles so they can focus on their tasks.

✅ 3. Transformational Leadership

Focuses on inspiring and motivating the team to achieve innovative goals. This style emphasizes vision, change, and long-term success.

Characteristics:

• Inspires the team with a shared vision
• Encourages innovation and continuous improvement
• Focuses on long-term goals

Best used when:

• The project requires innovation and change
• The team needs inspiration to overcome challenges

Example:
A Project Manager inspires the team to go beyond project goals by emphasizing the project’s positive impact on the organization and customer satisfaction.

✅ 4. Laissez-Faire Leadership

Involves minimal intervention from the Project Manager. The team is trusted to manage themselves with little supervision.

Characteristics:

• Hands-off approach
• Encourages team autonomy
• Minimal involvement in decision-making

Best used when:

• The team is highly experienced and self-motivated
• There is no need for close supervision

Example:
A Project Manager trusts senior developers to decide the technical approach without providing detailed instructions.

✅ 5. Situational Leadership

Adapts the leadership style based on the situation and team needs. The Project Manager shifts between different styles as required by the project phase or challenges.

Characteristics:

• Flexible approach to leadership
• Adapts based on team maturity and project complexity
• Focuses on what the situation demands

Best used when:

• The project is dynamic and complex
• The team has varying levels of experience

Example:
A Project Manager provides close supervision during the planning phase but takes a hands-off approach during execution as the team gains confidence.

🧩 Summary Table: Leadership Styles in Project Management

📚 How Leadership Styles Are Tested in the PMP Exam

The PMP exam includes questions that assess your ability to apply different leadership styles based on various scenarios. You’ll need to know when each style is most effective and how to manage different types of teams.

🔑 3. Strategic and Business Management Competency

This competency involves a Project Manager’s understanding of how their project fits within the organization’s strategic goals and how to ensure the project delivers business value.

✅ Key Skills:

• Understanding organizational strategy and business goals
• Aligning project goals with business objectives
• Managing stakeholders and understanding their needs
• Analyzing financial aspects of the project (e.g., ROI, cost-benefit analysis)
• Understanding industry trends and regulations

📋 Example:

A Project Manager ensures that a project to implement a new software system aligns with the company’s goal to improve operational efficiency and customer satisfaction.

🧩 Summary Table of Project Management Competencies

🎯 How These Competencies Are Tested in the PMP Exam

The PMP exam tests a Project Manager’s ability to apply these three competencies in various scenarios. It’s essential to know how to balance technical skills, leadership skills, and business acumen to deliver successful projects.

🔎 Multi-Choice Questions: Project Management Competencies

Question 1: Technical Project Management Competency

Which of the following activities demonstrate Technical Project Management Competency? (Select TWO answers)

A. Creating a Work Breakdown Structure (WBS)
B. Managing team conflicts to improve collaboration
C. Performing a cost-benefit analysis
D. Using project scheduling tools to track milestones
E. Motivating the project team

✅ Correct Answers:
A. Creating a Work Breakdown Structure (WBS)
D. Using project scheduling tools to track milestones

📚 Explanation: Technical Project Management involves using tools and techniques to manage project scope, schedule, budget, risks, and performance.

Question 2: Leadership Competency

Which of the following demonstrates Leadership Competency for a Project Manager?

A. Creating project timelines
B. Handling conflicts between team members
C. Identifying risks and creating a risk register
D. Calculating project Return on Investment (ROI)

✅ Correct Answer:
B. Handling conflicts between team members

📚 Explanation: Leadership competency includes guiding, motivating, and resolving conflicts within the project team.

Question 3: Strategic and Business Management Competency

Which of the following demonstrates Strategic and Business Management Competency?

A. Aligning project goals with business objectives
B. Tracking project deliverables
C. Creating a Gantt chart
D. Facilitating team-building activities

✅ Correct Answer:
A. Aligning project goals with business objectives

📚 Explanation: Strategic and Business Management involves understanding how the project delivers value to the organization and aligns with business goals.

🧩 Scenario-Based Questions: Project Management Competencies

Question 4: Leadership Competency

💡 Scenario:
You are leading a project team working on a new software product. Two senior developers have different opinions on the technical approach to use and are constantly arguing, causing delays in the project.

What should you do as the Project Manager?

A. Choose the best approach yourself and ask the team to follow it
B. Escalate the conflict to the project sponsor
C. Facilitate a meeting to discuss both approaches and help the team reach a consensus
D. Ignore the conflict and let the developers sort it out

✅ Correct Answer:
C. Facilitate a meeting to discuss both approaches and help the team reach a consensus

📚 Explanation: Leadership competency involves conflict resolution and ensuring the team works collaboratively toward the project’s objectives.

Question 5: Strategic and Business Management Competency

💡 Scenario:
Your project is to develop a new product feature that will improve customer satisfaction. However, halfway through the project, the organization decides to pivot its strategy toward a different target market.

What should you do?

A. Continue with the current project plan to avoid delays
B. Stop the project immediately
C. Assess how the change in strategy impacts the project and make necessary adjustments
D. Ignore the organizational strategy shift

✅ Correct Answer:
C. Assess how the change in strategy impacts the project and make necessary adjustments

📚 Explanation: A Project Manager must ensure that the project aligns with organizational strategy and delivers business value.

Question 6: Technical Project Management Competency

💡 Scenario:
You are managing a construction project. The project is running behind schedule, and the client has requested a detailed report on progress.

Which tool or technique would best help you provide the client with an accurate progress report?

A. A stakeholder engagement plan
B. A cost-benefit analysis
C. A Gantt chart showing task completion and upcoming milestones
D. A brainstorming session with the team

✅ Correct Answer:
C. A Gantt chart showing task completion and upcoming milestones

📚 Explanation: Technical Project Management includes using tools like Gantt charts to track progress and report on the project’s status.

Question 7: Leadership Competency

💡 Scenario:
One of your team members is struggling with their tasks and seems unmotivated. You notice a decline in their performance and engagement.

What should you do as the Project Manager?

A. Replace the team member with someone more experienced
B. Schedule a one-on-one meeting to understand their challenges and offer support
C. Escalate the issue to HR
D. Ignore the situation and let the team member figure it out

✅ Correct Answer:
B. Schedule a one-on-one meeting to understand their challenges and offer support

📚 Explanation: Leadership competency includes supporting and motivating the team to ensure they remain engaged and productive.

Question 8: Strategic and Business Management Competency

💡 Scenario:
You are managing a project to upgrade an IT system. Your company’s leadership team asks you to calculate the potential Return on Investment (ROI) for this upgrade before approving additional funding.

Which of the following actions demonstrates your Strategic and Business Management competency?

A. Presenting a project risk register
B. Calculating the cost savings and productivity improvements from the upgrade
C. Creating a detailed project schedule
D. Hosting a team-building event to improve morale

✅ Correct Answer:
B. Calculating the cost savings and productivity improvements from the upgrade

📚 Explanation: Strategic and Business Management involves analyzing financial aspects of a project to ensure it delivers business value.

Would you like a PDF version of these questions or more questions on a specific competency? 😊