Further investigation of project team members suggests they are not amused by the sign. One engineer shrugs and says, "That just their way of making sure we understand what we have been assigned to. Last week they put up another one that said 'Purgatory." When you ask him later in the day, the project manager confirms this story and adds some interesting information: "Around here, we use detached [meaning centralized] project teams. I get no say as far as who will be assigned to the project, and lately the functional heads have been using our projects as a dumping ground for their poor performers." When you question him further, the project manager observes, "Think about it. I have no say in who gets assigned to the team. I can't even fill out a performance review on them. Now, if you were a department head who was trying to offload a troublemaker or someone who was incompetent, what could be better than shipping them off to a project team for a year or so? Of course, you can imagine how they feel when they hear that they have been assigned to one of our project teams. It's as if you just signed their death warrant. Talk about low motivation!" When you question various department heads about the project manager's assertions, to a person they deny that this is an adopted policy. As the head of finance puts it, "We give the project teams our best available people when they ask." However, they also admit that they have the final say in personnel assignment and project managers cannot appeal their choices for the teams. When you suggest to the CEO that this could be a potential reason for the poor performance of CIC's new product development projects, he ponders the implications of how his organization has been staffing projects. "Ok," he finally says, "What do you suggest that we do about it?" Answer the following questions a) What are the implications of CIC's approach to staffing project teams? b) As a consultant, what advices would you give to the CEO to correct the problem? c) Discuss how issues of organizational structure and power play a role in the way in which project management has declined in effectiveness at CIC.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question
Further investigation of project team members suggests they are not amused by the
sign. One engineer shrugs and says, "That just their way of making sure we understand
what we have been assigned to. Last week they put up another one that said
'Purgatory'." When you ask him later in the day, the project manager confirms this
story and adds some interesting information: "Around here, we use detached [meaning
centralized] project teams. I get no say as far as who will be assigned to the project, and
lately the functional heads have been using our projects as a dumping ground for their
poor performers." When you question him further, the project manager observes,
"Think about it. I have no say in who gets assigned to the team. I can't even fill out a
performance review on them. Now, if you were a department head who was trying to
offload a troublemaker or someone who was incompetent, what could be better than
shipping them off to a project team for a year or so? Of course, you can imagine how
they feel when they hear that they have been assigned to one of our project teams. It's as
if you just signed their death warrant. Talk about low motivation!" When you question
various department heads about the project manager's assertions, to a person they deny
that this is an adopted policy. As the head of finance puts it, "We give the project teams
our best available people when they ask." However, they also admit that they have the
final say in personnel assignment and project managers cannot appeal their choices for
the teams. When you suggest to the CEO that this could be a potential reason for the
poor performance of CIC's new product development projects, he ponders the
implications of how his organization has been staffing projects.
"Ok," he finally says, "What do you suggest that we do about it?"
Answer the following questions
a) What are the implications of CIC's approach to staffing project teams?
b) As a consultant, what advices would you give to the CEO to correct the problem?
c) Discuss how issues of organizational structure and power play a role in the way in
which project management has declined in effectiveness at CIC.
Transcribed Image Text:Further investigation of project team members suggests they are not amused by the sign. One engineer shrugs and says, "That just their way of making sure we understand what we have been assigned to. Last week they put up another one that said 'Purgatory'." When you ask him later in the day, the project manager confirms this story and adds some interesting information: "Around here, we use detached [meaning centralized] project teams. I get no say as far as who will be assigned to the project, and lately the functional heads have been using our projects as a dumping ground for their poor performers." When you question him further, the project manager observes, "Think about it. I have no say in who gets assigned to the team. I can't even fill out a performance review on them. Now, if you were a department head who was trying to offload a troublemaker or someone who was incompetent, what could be better than shipping them off to a project team for a year or so? Of course, you can imagine how they feel when they hear that they have been assigned to one of our project teams. It's as if you just signed their death warrant. Talk about low motivation!" When you question various department heads about the project manager's assertions, to a person they deny that this is an adopted policy. As the head of finance puts it, "We give the project teams our best available people when they ask." However, they also admit that they have the final say in personnel assignment and project managers cannot appeal their choices for the teams. When you suggest to the CEO that this could be a potential reason for the poor performance of CIC's new product development projects, he ponders the implications of how his organization has been staffing projects. "Ok," he finally says, "What do you suggest that we do about it?" Answer the following questions a) What are the implications of CIC's approach to staffing project teams? b) As a consultant, what advices would you give to the CEO to correct the problem? c) Discuss how issues of organizational structure and power play a role in the way in which project management has declined in effectiveness at CIC.
Problems had been building at Columbus Instruments, Inc. (CIC) (not its real name) for
several years now with the new product development process. The last six "high
visibility" projects had either been scrapped outright after excessive cost and schedule
overruns or, once released to the marketplace, had been a commercial disaster. In the
past two years, CIC estimated that it had squandered over $15 million on poorly
developed or failed projects. Every time a new project venture fails, the company
conducts extensive post-project review meetings, documentation analysis, and market
research to try to determine the underlying cause. To date, all it has been able to
determine is that it appears that the problems lie with the project management and
development process. Something somewhere is going very wrong.
You have been called into the organization as a consultant to try to understand the
source of the problems that are leading to widespread demoralization across the firm.
After spending hours interviewing the senior project management staff and technical
personnel, you are convinced that the problem does not lie with their processes, which
are up-to-date and logical. On the other hand, you have some questions about project
team productivity. It seems that every project is running late, is over budget, and has
suboptimal functionality, regardless of how skilled the project manager in charge has
been. This information suggests to you that there may be some problems in how the
project teams are operating.
As you analyze CIC's project development process, you note several items of interest.
First, the company is organized along strictly functional lines. Projects are staffed from
the departments following negotiations between the project manager and the
department heads. Second, the culture of CIC seems to place little status or authority on
the project managers. As evidence of this fact, you note that they are not even permitted
to write a performance evaluation on the project team members: that right applies only
to the functional department heads. Third, many projects require that team members be
assigned to them on an exclusive basis; that is, once personnel have been assigned to a
project, they typically remain with the project team on a full-time basis for the term of
the project. The average project lasts about 14 months. One morning, as you are
walking the hallways, you notice a project team "war room" set up for the latest new
product development initiative within the company. The war room concept requires
that project team members be grouped together at a central location, away from their
functional departments, for the life of the project. What intrigues you is a hand-lettered
sign you see taped to the door of the project war room: "Leper Colony." When you ask
around about the sign, some members of the firm chuckle, "Oh, we like to play jokes on
the folks assigned to new projects."
Transcribed Image Text:Problems had been building at Columbus Instruments, Inc. (CIC) (not its real name) for several years now with the new product development process. The last six "high visibility" projects had either been scrapped outright after excessive cost and schedule overruns or, once released to the marketplace, had been a commercial disaster. In the past two years, CIC estimated that it had squandered over $15 million on poorly developed or failed projects. Every time a new project venture fails, the company conducts extensive post-project review meetings, documentation analysis, and market research to try to determine the underlying cause. To date, all it has been able to determine is that it appears that the problems lie with the project management and development process. Something somewhere is going very wrong. You have been called into the organization as a consultant to try to understand the source of the problems that are leading to widespread demoralization across the firm. After spending hours interviewing the senior project management staff and technical personnel, you are convinced that the problem does not lie with their processes, which are up-to-date and logical. On the other hand, you have some questions about project team productivity. It seems that every project is running late, is over budget, and has suboptimal functionality, regardless of how skilled the project manager in charge has been. This information suggests to you that there may be some problems in how the project teams are operating. As you analyze CIC's project development process, you note several items of interest. First, the company is organized along strictly functional lines. Projects are staffed from the departments following negotiations between the project manager and the department heads. Second, the culture of CIC seems to place little status or authority on the project managers. As evidence of this fact, you note that they are not even permitted to write a performance evaluation on the project team members: that right applies only to the functional department heads. Third, many projects require that team members be assigned to them on an exclusive basis; that is, once personnel have been assigned to a project, they typically remain with the project team on a full-time basis for the term of the project. The average project lasts about 14 months. One morning, as you are walking the hallways, you notice a project team "war room" set up for the latest new product development initiative within the company. The war room concept requires that project team members be grouped together at a central location, away from their functional departments, for the life of the project. What intrigues you is a hand-lettered sign you see taped to the door of the project war room: "Leper Colony." When you ask around about the sign, some members of the firm chuckle, "Oh, we like to play jokes on the folks assigned to new projects."
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON