In: Operations Management
write report for 5 pages and summering each question with proper introduction and conclusion 1.If you were Palmer at the end of the case, how would you respond?
2.What, if anything, could Palmer have done to avoid losing Olds?
3.What advantages and disadvantages of a matrix type organization are apparent from this case?
4.What could the management at M&M do to more effectively manage situations like this?
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If you were Palmer at the end of the case, how would you respond?
Palmer should have voiced his concerns regarding spreading his project members to think across other accounts. As soon as Palmer recognized the problems he should have addressed the issue. At the end of the case, Palmer should accept that the decision made by management was the best decision for all parties involved. Because Palmer is the project manager, it is his responsibility to handle all aspects of the project to include communication. More effective communication all around would have maybe lead to a different outcome. If I were Palmer, I would carefully think things through of what to say to Sands and Crosby so it doesn't come out offensive when addressing the issue of losing Olds as a valuable employee from the Johnsonville audit; in addition, stating some pros and cons of the project's completion based on Olds' commitment. All in all, a possible replacement that's just as good as Olds would suffice.
What, if anything, could Palmer have done to avoid losing Olds?
First and most important he could have stood his ground. The conditions that were set forth in order to allow Olds to work on both projects were very clear. He was to work for Palmer from 1pm-5pm. He should have ensured that was the case the first time that there was an issue, there should have been a meeting to discuss why this would not be tolerated.
What advantages and disadvantages of a matrix type organization are apparent from this case?
The advantages that are apparent in this case are that several people are able to work on multiple projects at the same time. This is getting the company a larger return on their human capital. The different backgrounds of the workers are brought together giving different viewpoints on how to handle situation as they arise. Another advantage to the matrix system in this case is that there are good uses of business resources since they are working on two large projects going on at the same time that are going to earn the company revenue and they are working independently of themselves.
The disadvantages with the matrix system that can be seen in this case is the conflict of loyalty to the managers. This is the main disadvantages in this case because ultimately it was this conflict that was the undoing of the teams within the matrix system in this case. Another issue that can arise is that the teams have so much independence that they are hard to monitor which was another issue with in the case from the book. Since upper management was not aware of the behaviour that Olds was exhibiting resulted in the conflict between the employees and then Sands needing to step in. Mostly it left a bad taste in the mouth of Peter who now will be last willing to share employees across projects in the future since he has since that it is possible for him to be left in a larch.
The advantage of a matrix type organization would be, "As new clients were recruited, a manager was assigned to the account. A manager might be assigned to several accounts, depending on the size and scope of the work".The disadvantages would obviously be the dual responsibility of Olds when he had to juggle between the Johnsonville audit and Springfield Metals. When Olds had to report to Palmer and Crosby it can create a conflict and built of anxiety like what has happened to Palmer with one example, "The e-mails and telephone calls Olds received from Crosby and his team members during the afternoons when he was supposed to be working for Palmer. A couple of times Palmer could have sworn that Olds was working on Crosby's project in his (Palmer's) office".
According to our text book, "The matrix structure is designed to optimally utilize resources by having individuals work on multiple projects as well as being capable of performing normal functional duties." .
As we see in the case study it is not always as easy as it sounds to have individuals work on multiple projects. Focus and time suffer as a result and the quality of work is not as good as spending all of their time on a single project at a time.
What could the management at M&M do to more effectively manage situations like this?
The first thing that they can do is assign days, instead of hours. By assigning days that a team member will work on a projects limits the ability of a team asking for a few extra hours or running late in a meeting. Secondly management should have requested progress reports from those involved. When it became clear that Peter’s project was behind schedule then the reason for that should have been discussed. Lastly the way that Sands brought the issue to Peter could have been handled in a different way. Sands should have actually included him as well as Palmer to talk about the preference they have both received from Olds and how they felt about having him go to just one project.
The management at M&M could handle the situations effectively by being more involved with some procedures and guidelines in place so it doesn't cause any complications. As stated in the case from Sands that Olds was already assigned to a project. "It is important for project managers to be “culture sensitive” so that they can develop appropriate strategies and responses and avoid violating key norms that would jeopardize their effectiveness within the organization".
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