You are the manager of a high-tech department in an industrial design firm and carefully created two three-person teams to work on designing the prototype for new computer workstations. Based on their work, your company got the multi-million dollar contact and to celebrate the boss has authorized you to divide $50,000 in bonus money among your six workers any way you deem fair.
Our fourth case deals with project teams and rewards.
You are the manager of a high-tech department in an industrial design firm and carefully created two three-person teams to work on designing the prototype for new computer workstations. Based on their work, your company got the multi-million dollar contact and to celebrate the boss has authorized you to divide $50,000 in bonus money among your six workers any way you deem fair.
Read the background information and the profiles of each of the team members to consider how well (or poorly) the teams were constructed and the contributions of each team member. Determine the amount of bonus you would give to each individual person and the reasons for your decision.
Specifically address the following questions:
How well were the teams created and what impact do you think the team composition had on their relative success and the company securing the work?
How much, if any, of the $50,000 will you award to each person? Why?
What do you believe the positive and negative effects on employee behavior and productivity, as individuals and as team members, will be as a result of the way you have allocated the bonus money?
Would it be possible and advisable to bring the team members into the decision-making process? How?
Note: Case analysis submissions will go through the TurnItIn plagiarism review process which includes AI detection (i.e. ChatGPT) so be sure your submission is your unique work with citations as appropriate. And don’t forget to check the rubric to be sure you’ve address all the key points in your response.
Rubric
Allocating the Bonus Case
Allocating the Bonus Case
Criteria Ratings Pts
This criterion is linked to a Learning OutcomeIntroduction and project statement
5 pts
Full Marks
0 pts
No Marks
5 pts
This criterion is linked to a Learning OutcomeHow well were the teams created and what was the impact of composition on the outcome
10 pts
Full Marks
0 pts
No Marks
10 pts
This criterion is linked to a Learning OutcomeHow much of the $50,000 will you award each person and why
10 pts
Full Marks
0 pts
No Marks
10 pts
This criterion is linked to a Learning OutcomeWhat will be the effects of your bonus allocations
10 pts
Full Marks
0 pts
No Marks
10 pts
This criterion is linked to a Learning OutcomeWould it be possible/advisable to bring the team members into the decision-making process?
10 pts
Full Marks
0 pts
No Marks
10 pts
This criterion is linked to a Learning OutcomeProper grammar and formatting used
5 pts
Full Marks
0 pts
No Marks
5 pts
Total Points: 50
Requirements: 1.5 pages
Allocating the Bonus Background You are the manager of the high-technology department in an industrial design firm. Several months ago, your company decided to bid on a project to design the housing for a new generation of computer workstations to be based on the latest RISC technology. Realizing that this could ultimately turn into a multi-million dollar contract, you carefully selected two three-member teams and set them to work to design the prototype, giving each team the customer’s specifications and the following clear instructions: the housing had to be designed quickly; it had to be high in quality and durability; it had to be aesthetically distinctive; and it had to be modular, cost-effective, easy to assemble and service, and easy to ship. Yesterday, you were excited to learn that your company got the job! Your very happy CEO has authorized $50,000 in bonus money for you to divide among your employees in any way you deem fair. You know that the way you give out the bonuses can have a serious impact on the morale and motivation of your employees and can affect their participation on future projects. Knowing something about equity, expectancy, and other theories of motivation, and understanding the basic tenets of performance appraisal and feedback, you know that you have to have a clear basis for apportioning the bonuses. In addition, you know that this project would never have gotten done well and on time without the team approach. The way you give out the bonuses may affect how well your employees work together in the future. Instructions Read the background information and the profiles of each of the team members as they appear below. How well were the teams constructed? Determine the amount of bonus you would give to each individual person and the reasons for your decision. How will your decision impact the future work by these six individuals and others in the organization? TEAM A: You had assigned the following people to Team A Jennifer Jennifer had worked off and on for you on a part-time basis for five years. A divorced mother with two young children, it ha been impossible for her to come on full-time until both of her children were in school. Jennifer began full-time this past September. You were pleased to hire her, because she is an unparalleled designer with a sense of the practical. Indeed, you weren’t let down by her abilities on this project. Her initial sketches served as an excellent starting point and as the basis upon which the housing was ultimately designed. What did cause some problems, however, was that her children both came down with the chicken pox in the middle of the project, causing her to miss almost a full week at work. During that time, she came in nights, weekends, and whenever else she could find childcare.
Abdul Abdul is a true workaholic. Whenever you have assigned him to a project, he has worked seven days a week, twenty-four hours a day, until completion. This project was no different. Abdul is pretty much a loner, and you’re aware the he frequently made his teammates angry when he made changes to their design plans without consulting them. When confronted, Abdul always acted disgusted as he pointe out just why the changes were necessary; more often than not, his teammates grudgingly went along with him. Unfortunately, you ended up spending a lot of time putting out the emotional fires that Abdul regularly seemed to start. Abdul is a job hopper; he has been looking for another job since he started with your company just eight months ago. Hank Quiet, competent, and self-assured, Hank goes about his business as business. You wanted Hank on this team because he is stable and reliable. He isn’t, however, particularly creative and innovative. What he does is take other people’s ideas, refine them, and execute them. He is also an excellent model builder, and the models he produced for this project are meticulous. Hank rarely stays late or works overtime, unless absolutely pushed. Instead, he prefers to spend nights and weekends with his family and in community activities. He is very active in his church and occasionally gets calls during working hours from church members who have pressing questions. In the past, you have asked Hank to limit his nonbusiness telephone time. Over the course of this project, you have noticed that he has had few calls, and those he has had have been brief. Hank has been very understanding about Jennifer’s problems and has done everything he can to help her out and cover for her. TEAM B: You had assigned the following people to Team B Steve When Steve first came to the company, you were concerned that he wouldn’t work out. He had been fired from his previous job. You were told by a friend that it was for frequent absences; however, Steve tells you it was because his boss didn’t like him. While he hasn’t been absent very often since joining your department, he has come to work late on a regular basis. Steve never did very much actual work on the project, and he couldn’t be counted on to meet deadlines; but he is the only person other than Jennifer who has the design expertise and an understanding of the aesthetics necessary to do this job. He is a brilliant innovator, and he came up with some terrific ideas, a couple of which wee incorporated into the final design. They may have been the reason that your company got the contract. Mei-Ling Mei-Ling is your most reliable materials expert, but she knows little about design. She selected the materials for the project’s prototype, and Hank tells you that her ideas were brilliant. Thanks to Mei-Ling, the workstation is durable, lightweight, and can be broken down into modules for easy assembling, servicing, and shipping. You’re not sure whether it is out of modesty or loyalty to her team that she tells you that she selected the materials based on Steve’s suggestions and that she couldn’t have chosen the correct material without him. Mei-Ling has been excited about her project and about her team. She has asked that the three members be allowed to work together again on any upcoming projects.
Maida Maida is on of those people who organizes things, gets after people to do their jobs, and picks up the pieces for others when they don’t follow through. She generally does this without complaining, and she constantly praises those around her as knowing more and being more able than she is. On this latter point, she may be right—she isn’t particularly brilliant or creative, but she is a plodder. So long as Maida is around, things get done and generally on time. When projects bog down or team members become upset with one another, Maida is there with support, homemade brownies, and occasionally a joke—she’s a real team player. You put Maida on this team because you thought she would be able to offset some of Steve’s irregularities, and that is exactly what she did. Maida, Mei-Ling, and Steve generally eat lunch together, and you have overheard them making weekend plans with one another on a number of occasions. The Results Team A finished their project in seven weeks. It was largely their design, combined with a few of Team B’s innovations, that resulted in the company’s winning bid. Team B had actually finished ten days earlier than Team A, but there were a number of small flaws in their design that resulted in its being rejected. The $50,000 in bonus money is ready to be distributed. You suspect that giving everyone who worked on the project the same amount might be perceived as regarding some questionable behaviors and failing to reward some other positive behaviors adequately. QUESTIONS TO ADDRESS: 1. How well were the teams created and what impact do you think the team composition had on their relative success and the company securing the work? 2. How much, if any, of the $50,000 will you award to each person? Why? 3. What do you believe the positive and negative effects on employee behavior and productivity, as individuals and as team members, will be as a result of the way you have allocated the bonus money? 4. Would it be possible and advisable to bring the team members into the decision-making process? How? Adopted from OB in Action: Cases & Exercises by Wohlberg & Gilmore, 1995
Because learning changes everything.®SCM 6030Chapter TenBeing an Effective Project Manager© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
© McGraw Hill2Where We Are Now
© McGraw Hill3Learning Objectives10-1Understand the difference between managing and leading a project.10-2Understand the need to engage project stakeholders.10-3Identify and apply different “influence currencies” to build positive relations with others.10-4Create a stakeholder map and develop strategies for managing project dependencies.10-5Understand the need for a highly interactive management style on projects.10-6More effectively manage project expectations.10-7Develop strategies for managing upward relations.10-8Understand the importance of building trust and acting in an ethical manner while working on a project.10-9Identify the qualities of an effective project manager.
© McGraw Hill4Chapter Outline10.1Managing versus Leading a Project10.2Engaging Project Stakeholders10.3Influence as Exchange10.4Social Network Building10.5Ethics and Project Management10.6Building Trust: The Key to Exercising Influence10.7Qualities of an Effective Project Manager
© McGraw Hill5Project Manager as Conductor Ina‘perfectworld’thePMworkswithotherstoformulateplans,organizetheprojectteam,trackprogress—and everything goes smoothly . . . BUTPM’s job is to get things back on track when issues ariseLike a conductor of an orchestra, combining a diverse group for beautiful music
Managers: Individuals who direct the activities of othersLeadership:Act of influencing others toward a goalLeader speech http://www.youtube.com/watch?v=PVOdYK029y040 leaders https://www.youtube.com/watch?v=mQerL6YmxR8Project Managers Wear Two Hats
© McGraw Hill710.1 Managing versus Leading a ProjectManaging—coping with complexity (for order and stability)•Formulate plans and objectives.•Monitor results.•Take corrective action.•Expedite activities.•Solve technical problems.•Serve as peacemaker.•Make tradeoffs among time, costs, and project scope.Leading—coping with change (to innovate and adapt)•Recognize the need to change to keep the project on track.•Initiate change.•Provide direction and motivation.•Innovate and adaptas necessary.•Integrate assigned resources.Transactional versus Transformational
© McGraw Hill810.2 Engaging Project StakeholdersStakeholdersare people and organizations that are actively involved in the project or whose interests may be positively or negatively affected by the project.Project Management Maxims•You can’t do it all and get it all done.•Projects usually involve a vast web of relationships.•Hands-on work is not the same as leading.•More pressure and more involvement can reduce your effectiveness as a leader.•What’s important to you likely isn’t as important to someone else.•Different groups have different stakes (responsibilities, agendas, and priorities) in the outcome of a project.Remember: Project management is tough, exciting, and rewarding—endeavor to persevere.
© McGraw Hill9Network of StakeholdersFIGURE 10.1Customer is criticalRelationships are interdependent as PM engaging stakeholders and anticipating changes
© McGraw Hill1010.3 Influence as ExchangeThe Law of Reciprocity•One good deed deserves another, and likewise one bad deed deserves another.•Givers,takers,andmatchersQuid pro Quo•Mutual exchange of resources and services build relationships.•You scratch my back, I’ll scratch yours.Influence “Currencies”•Cooperative relationships are built on the exchange of organizational “currencies” (favors).
© McGraw Hill11Commonly Traded Organizational CurrenciesTask-related currenciesResourcesLending or giving money, budget increases, personnel, etc.AssistanceHelping with existing projects or undertaking unwanted tasks.CooperationGiving task support, providing quicker response time, or aiding implementation.InformationProviding organizational as well as technical knowledge.Position-related currenciesAdvancementGiving a task or assignment that can result in promotion.RecognitionAcknowledging effort, accomplishments, or abilities.VisibilityProviding a chance to be known by higher-ups or significant others in the organization.Network/contactsProviding opportunities for linking with others.Inspiration-related currenciesVisionBeing involved in a task that has larger significance for the unit, organization, customer, or society.ExcellenceHaving a chance to do important things really well.Ethical correctnessDoing what is “right” by a higher standard than efficiency.Relationship-related currenciesAcceptanceProviding closeness and friendship.Personal supportGiving personal and emotional backing.UnderstandingListening to others’ concerns and issues.Personal-related currenciesChallenge/learningSharing tasks that increase skills and abilities.Ownership/involvementLetting others have ownership and influence.GratitudeExpressing appreciation.TABLE 10.1
© McGraw Hill1210.4 Social Network BuildingMapping Stakeholder Dependencies•Project team’s perspective•Whose cooperation will we need?•Whose agreement or approval will we need?•Whose opposition would keep us from accomplishing the project?•Stakeholder’s perspective•What differences exist between the team and the people on whom the team depends?•How do the stakeholders view the project?•What is the current status of the relationship the team has with the stakeholders?•What sources of influence does the team have relative to the stakeholders on whom the team depends?
© McGraw Hill13Stakeholder Map for Financial Software Installation ProjectFIGURE 10.2Better to overestimate than underestimate dependencies
© McGraw Hill14Management by Wandering Around (MBWA)Management by Wandering Around (MBWA)Manager spending the majority oftheir time outside their offices in order to have face-to-face interactions with employees building cooperative relationships.•Relationships should be built before they are needed•Stayintouchwiththeproject•Become the focal point forinformation
© McGraw Hill15Management by Wandering Around (MBWA)Management by Wandering Around (MBWA)Characteristics of Effective Project Managers•Initiate contact with key stakeholders to keep abreast of developments.•Anticipate potential problems.•Provide encouragement.•Reinforce the objectives and vision of the project.•Intervene to resolve conflicts and prevent stalemates from occurring.•Proactiveso contact is notjustbadnews•Find ways to connect with more distant stakeholders
© McGraw Hill16Managing Upward RelationsProject success is strongly affected by the degree to which a project has the support of top management. Top management must:•Provide an appropriate budget.•Be responsive to unexpected needs.•Send a clear signal to others in the organization of the importance of the project and the need to cooperate.•Rescind unreasonable demand.•Provide additional resources.•Recognize the accomplishments of team members.
© McGraw Hill17Leading by Example—Walk the TalkFIGURE 10.4Bad news is a concern not attackHow spend time speaks louder than wordsProjecttoexceedexpectations,PMneedstotooHow handle issues, face to solve or hide and lieDeadlines, status reports, solutions, what to expediateRespectful to outsiders and describing others to the group
© McGraw Hill1810.5 Ethics and Project ManagementEthical Dilemmas—situations where it is difficult to determine whether conduct is right or wrong•Padding of cost and time estimations.•Exaggerating pay-offs of project proposals.•Falsely assuring customers that everything is on track.•Being pressured to alter status reports.•Falsifying cost accounts.•Compromising safety standards to accelerate progress.•Approving shoddy work.
© McGraw Hill1910.6 Building Trust: The Key to Exercising InfluenceTrust•Is an elusive concept.•Is a function of character (personal motives) and competence (skills necessary to realize motives).•Is sustained through frequent face-to-face contact.The core of highly effective people is a character ethic (Stephen Covey in Seven Habits of Highly Effective People).•Consistency—more predictable•Openness—more receptive to others, able to empathize•A sense of purpose—what is best for the organization and the project not themselves
© McGraw Hill2010.7 Qualities of an Effective Project ManagerNot one style, but these core traits and skills1.Effective communication skills2.Systems thinking3.Personal integrity4.Proactivity5.High emotional intelligence (EQ)6.General business perspective7.Effective time management8.Optimism
© McGraw Hill21Contradictions of Project ManagementInnovate and maintain stability•Put outfires, restore order and get back on track while developing new ways to do thingsSee the big picture while getting their hands dirtyEncourage individuals but stress the team•Fair andconsistent intreatment while treating each as a special/unique individualBe hands-off/hands-on•Resolve/solveandstepback for others to figure outBe flexible but firm•Adaptable andresponsive but hold the lineManage team versus organizational loyalties•Counter cohesivenessandteamresistance to outside ideas
© McGraw Hill22Key TermsEmotional intelligence (EQ)Inspiration-related currenciesLaw of reciprocityManagement by wandering around (MBWA)Personal-related currenciesPosition-related currenciesRelationship-related currenciesSocial network buildingStakeholdersSystems thinkingTask-related currenciesLeading versus Managing
Because learning changes everything.®SCM 6030Chapter ElevenManaging Project Teams© 2021 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom.No reproduction or further distribution permitted without the prior written consent of McGraw Hill.
© McGraw Hill2Where We Are Now
© McGraw Hill3Learning Objectives11-1Identify key characteristics of a high-performance project team.11-2Distinguish the different stages of team development.11-3Understand the impact situational factors have on project team development.11-4Identify strategies for developing a high-performance project team.11-5Distinguish functional conflict from dysfunctional conflict and describe strategies for encouraging functional conflict and discouraging dysfunctional conflict.11-6Understand the challenges of managing virtual project teams.11-7Recognize the different pitfalls that can occur in a project team.
© McGraw Hill4Chapter Outline11.1The Five-Stage Team Development Model11.2Situational Factors Affecting Team Development11.3Building High-Performance Project Teams11.4Managing Virtual Project Teams11.5Project Team Pitfalls
Work Teams and GroupsGroupTwo or more people with common interests or objectivesTeam Group with positive synergyComplementary skillsCommitted to goalsMutually accountable
© McGraw Hill6High-Performing TeamsSynergy•Positive synergy1 + 1 + 1 + 1 + 1 = 10•Negative synergy1 + 1 + 1 + 1 + 1 = 2Characteristics of High-Performing Teams1.Share a sense of common purpose2.Make effective use of individual talents and expertise3.Balance role and share tasks4.Exert energy toward problem solving5.Accept differences of opinion and expression6.Encourage risk taking and creativity7.Set high personal performance standards8.Identify source of both professional and personal growth
© McGraw Hill7Tuckman’s Five-Stage Theoryof Group DevelopmentPerformingAdjourningNormingStormingFormingReturn toIndependenceDependence/interdependenceIndependence
© McGraw Hill811.1 The Five-Stage Team Development ModelFIGURE 11.1
© McGraw Hill911.2 Situational Factors Affecting Team DevelopmentConditions Favoring Development of High-Performing Project Teams•There are 10 or fewer members per team.•Members volunteer to serve on the project team.•Members serve on the project from beginning to end.•Members are assigned to the project full time.•Members are part of an organization culture that fosters cooperation and trust.•Members report solely to the project manager.•All relevant functional areas are represented on the team.•The project involves a compelling objective.•Members are located within conversational distance of each other.
© McGraw Hill10Punctuated-Equilibrium ModelTime(Low)(High)First MeetingPhase 1Phase 2TransitionCompletionAB(A+B)/2PerformanceMid-life crisis
© McGraw Hill1111.3 Building High-Performance Project TeamsFIGURE 11.3
© McGraw Hill12Recruiting Project MembersFactors affecting recruitment•The importance of the project•The management structure being used to complete the projectConsiderations that need to be factored into the recruitment process•Problem-solving ability•Availability•Technological expertise•Credibility•Political connections•Ambition, initiative, and energy•FamiliarityUse company grapevine to learn who is interested/goodSpeaktofunctionalmanagerstodiscussskillsneeded
© McGraw Hill13Conducting Project MeetingsThe first project team meeting—project kick-off meeting•Critical to set the tone and early functioning of the groupEstablishing ground rulesPlanning decisionsTracking decisionsManaging change decisionsRelationship decisionsManaging subsequent project meetings
NormsPerformance, appearance, social, and resource allocationDevelopment and EnforcementConformity versus Ostracism
© McGraw Hill15Establishing Team NormsConfidentiality is maintained; no information is shared outside the team unless all agree to it.It is acceptable to be in trouble, but it is not acceptable to surprise others. Tell others immediately when deadlines or milestones will not be reached.There is zero tolerance for bulling a way through a problem or an issue.Agree to disagree, but when a decision has been made, regardless of personal feelings, move forward.Respect outsiders, and do not flaunt one’s position on the project team.Hard work does not get in the way of having fun.
CohesivenessInterpersonal glue makes members stick togetherDeterminants include:Time spent togetherGroup sizeExternal threatsSeverity of initiationCompositionPrevious successes
© McGraw Hill17Establishing a Team Identity Effective use of meetings (communications to see as part of the team)Co-location of team members (war room of project documents if possibleto help establish identity)Creation of project name (logo and possible swag)Get the team to build or do something together early on (early successes on small ‘low-hanging fruit’ to social activities like potlucks or golf outing)Team rituals (rewards and ceremonies)
© McGraw Hill18Requirement for an Effective Project VisionFIGURE 11.4Create a shared vision about how the project will look/work at completionUseconcretelanguage,challengingbutrealistic,what excitesthemembers
© McGraw Hill19Managing Project Reward SystemsThe reward system encourages team performance and extra effort.Most project managers advocate the use of group rewards.To increase the value of rewards, rewards need to have lasting significance.Some project managers have touse negative reinforcement to motivate project performance.There are times when we need to reward individual performance. Examples of this kind of rewards include•Letter of recommendation•Public recognition for outstanding work•Job assignments•Flexibility
© McGraw Hill20Orchestrating the Decision-Making ProcessFacilitating group decision making involves four major steps.1.Identifying problems2.Generating alternatives3.Reaching a decision4.Following upMost decisions are done in ‘real-time versus needing a meeting •MBWA to solicit ideas, get consensus, and resolve issues•PMroleisNOTtodecidebuttofacilitate forconsensus
© McGraw Hill21Managing Conflict within the ProjectFunctional versus Dysfunctional based on how the conflict impacts the project performanceEncouraging Functional ConflictPriorities, resource allocations, quality, changes as the project progresses•Functional conflict plays a critical role in obtaining a deeper understanding of the issues and coming up withthe best decisions possible.•Disagreements that advance the project•Project managers can legitimize dissent within the team by•Designating someone to play the role of devil’s advocate.•Asking the group to take 15 minutes to come up withall the reasons the team should not pursue a course of action.•Model response to listen when challenged and check in with others for diverse points of view
© McGraw Hill22Managing Conflict within the ProjectEncouraging Functional ConflictManaging Dysfunctional ConflictPersonality clashes, decision making delays, situations with no easy resolutions . . .•Mediate the conflict—find common ground•Arbitrate the conflict—impose a solution after hearing both sides•Control the conflict—defuse the intensity of emotions•Accept the conflict—some will outlive the project•Eliminate the conflict—remove a clear villain or both parties when at fault
© McGraw Hill23Sources of Conflict over the Project Life CycleFIGURE 11.5People assigned, importance of project over other tasksDecision-making process, resource allocationsTime-cost trade-offs; slippage and issuesSlippage of target dates, what comes next
© McGraw Hill24Rejuvenating the Project TeamInformal Techniques•Institute new rituals.•Show the team an inspiration movie.•Have the project sponsor give a pep talk.Formal Techniques•Hire an external consultant to facilitate a team-building session to elevate team performance and clarify ownership (whether the team has direct influence over the issue) issues.•Link team-building activities with outdoor experience to provide an intense common experience that accelerate the social development of the team.
© McGraw Hill2511.4 Managing Virtual Project TeamsTwo biggest challenges involved in managing a virtual project team are1.Developing trust•Hold a face-to-face meeting at the beginning and orchestrate the exchange of social information.•Set clear roles for each team member.•Form teams with people who have already worked effectively together on projects, if possible.2.Developing effective patterns of communication•Don’t let team members vanish.•Establish a code of conduct to avoid delays.•Establish clear norms and protocols for surfacing assumptions and conflicts.•Use electronic video technology to verify work.•Share the pain.
© McGraw Hill2624-Hour Global ClockFIGURE 11.6
© McGraw Hill2711.5 Project Team PitfallsGroupthink•Illusion of invulnerability•Whitewash of critical thinking•Negative stereotypes of outsiders•Direct pressureBureaucratic bypass syndromeTeam spirit becomes team infatuationGoing native•Use nominal group technique (NGT) to guide decisions on projectAbilene Paradox: All agree but fail to act on that agreement
© McGraw Hill28Key TermsBrainstormingDysfunctional conflictFunctional conflictGroupthinkNominal group technique (NGT)Positive synergyProject kick-off meetingProject visionTeam buildingVirtual project teamAbilene Paradox
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