The Impact of Project Manager Compensation and Methodology Alignment on IT Project Effectiveness in Large Organizations

Purpose: This study investigates the relationship between project management effectiveness and project manager compensation, as well as between project management effectiveness and methodology alignment in IT projects. Design/Methodology/Approach: Through a survey of 130 project management professionals, we explore how these factors influence project outcomes and organizational success. Findings: Our findings suggest that while project managers associate effectiveness primarily with achieving organizational benefits and goals, there is a significant relationship between project manager compensation, methodology alignment, and perceived project success. Practical Implications: The study contributes to the ongoing debate on project effectiveness definition and offers practical insights for optimizing project management practices in IT organizations. Originality/Value: Despite extensive research in project management, there remains a lack of consensus on how to define and measure project. Moreover, while the importance of both compensation structures and methodology selection has been acknowledged separately, their combined impact on project effectiveness is under-explored, especially in the IT sector. This article aims to address these gaps.