- Lack ownership by the teams, coupled with outright resistance to the changes may cause the implementation to fail completely especially since teams have total control over their own schedules. The lack of a sense responsibility as is entrenched in the organizational culture. The advantages include the fact that the decision-making process will be faster and save the company time than normal, besides saving the employees of the energy required for team decisions. Since the change would have not result in layoffs and would have considerable productivity gains, employee resistance may be muted, especially since some employees understood the difficulty that management faces in selecting decisions that would be put to the teams. The main disadvantage would be an erosion of trust between employees and management, which would in turn undermine the gains made by the team management system.
- Putting the decision to the relevant teams would take more team and company time, besides exacting more energy of the employees. The advantages include the fact that employees take ownership for the decisions made, which ensures that the implementation is immediate. Team decision-making also cultivates mutual trust between the employees and the management.
- It would be a matrix-based system because the manager effectively shares the responsibility for decision-making with team members. It is basically a composite structure that inculcates several levels in the organizational structure
- The project management office is absolutely critical to organize, administer and discharge responsibilities for all projects in a coordinated way, without losing sight of the big picture. A PMO provides a structure that instils project management discipline and standardization of practices to facilitate efficient formulation and implementation of diverse and complicated projects. Alternatives to the project management office include:
- A project support office, which provides temporary/permanent organizational group that offers support services for project teams implementing different projects
- Project management collective that comprises of internal project managers and other stakeholders responsible for different projects to synchronise the implementation of different projects
- Outsourcing of PMO operations to companies that have capacity and specialization in specific projects
- Cuts production costs by 1%
Reduce scrap to 0.5%
The cost = $25,000
Installation costs = $5,000
Profit Margin = 10%
Total microprocessor cost = purchase cost + installation costs = $30,000
Net benefit = 101,250- 30,000 = $71,250
Require a lifetime and an interest rate (Assuming a period of 1 year and an interest rate of 10%)
NPV= $ 62045.45
- Norm remembers that productivity rose between 1985 and 1989, but Exhibit 2 shows that productivity stopped rising in 1987, after which it fell to below the levels in 1986 through to 1991, when it rose further. Norm has confused increases in productivity with output. Since employees were increased to 140, the increase reduced productivity of the division.
- This is a relatively easy decision, and it is highly likely that the employees would approve of it anyways. Norm should pass the decision on to the teams to avert the negative effects of the management seeming to ignore the team management culture.
References
Meredith, Jack R. "Oilwell Cable Company, Inc." Meredith, Jack R. and Jr., Samuel J. Mantel. Project Management: A Managerial Approach. New York: John Wiley & Sons, 2011. 227-230.
Rugman, A. M. and S. Collinson. International Business (6th Ed). London: Pearson Education, 2012.
