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Mot spring 2010 text (1)

  1. 1. Organizations Through the Eyes of a Project Manager Harvey F. Hoffman, Ed.D. TCI 320 West 31st Street New York, NY 10001 (212) 594-4000 X 318 hhoffman@tcicollege.netAll material copyrighted 2001. Material may not be duplicated without permission inwriting from H. Hoffman. 1
  2. 2. TABLE OF CONTENTS PagePreface 11Acknowledgement 13Dedication 13CHAPTER 1 14 Organizational Expectations and Professionalism 14 Employer Expectations - TACT 16 Employee Expectations 21 Professionalism 25 Dissemination of Information 26 Service 27 Education 27 Managing Oneself 28 Professional Ethics 29 Certifications and Licenses 32 Trades and Crafts 32 Chapter 1 Questions 35CHAPTER 2 44 The Organization 44 Core Identity 45 Objectives and Goals 50 Strength, Weakness, Opportunity, Threat (SWOT) 50 2
  3. 3. Sidebar: A Personal SWOT Analysis 55 Activities 57 Standards 58 Policy, Process, Procedure, Rule 61 Sidebar: Public versus Private Companies 64 Chapter 2 Questions 68CHAPTER 3 71 Project Management Organizational Overview 71 Why Project Management? 81 Project Managers Responsibilities 83 Organizational Charts 86 Functional Organization 87 Project Management Structure 88 Matrix Organization 89 Line Organization 91 Chapter 3 Questions 97Chapter 4 100 Management Concepts 100 Management 101 Managers and Supervisors 105 Historical Management Overview 107 Classical Management 109 Human behavioral management 117 3
  4. 4. Human Resources School 120 Herzberg’s Hygiene Factors 120 Maslow’s Hierarchy 123 Douglas McGregor’s Theory X and Theory Y worker 125 Acceptance Theory of Authority 127 Management by Objective 128 Deming’s Ideas 129 Recent management views 133 Management Styles 135 Power 137 Teams 140 Project Managers Lead Teams 144 Leadership 146 Leadership versus management 149 Competitive Advantage 153 Chapter 4 Questions 154Chapter 5 158 Project Planning 158 Planning 158 Request for a Proposal and Request for a Quote 160 Project Charter 164 The Project Plan 169 Plan Benefits 173 4
  5. 5. The Project Plan Troika 174 Exhibit 5-1 -- Typical Hardware or Software Product Specification Outline 189 Exhibit 5-2 - Sample Statement of Work Outline 191 Exhibit 5-3 -- Sample Work Breakdown Structure (WBS) 196 Exhibit 5-4 – Example of a Statement of Work 200 Chapter 5 Questions 210Chapter 6 212 Project Time Management 212 Project Time Management 212 Rudiments of Schedule Preparation 215 Creating a Schedule 222 Microsoft Project 226 Task Entry 226 Working Time 228 WBS Number 230 Task Duration 231 Task Dependencies 233 Responsibility Assignment Matrix (RAM) 235 Critical Path 241 Schedule Progress 242 Printing Niceties 244 Sidebar: The 8-Hour Day 244 Summary 246 5
  6. 6. Chapter 6 Questions 249Chapter 7 256 Project Estimation and Cost 256 Direct and Indirect Costs 257 Material and Material Handling Costs 257 Travel and Living Charges 258 Other Direct Costs (ODC) 258 Sales Commission 259 Profit 259 Indirect Costs 260 Overhead and G&A Costs 261 Bottom-up estimating 263 Villa-Tech Bid Example 268 Overhead rates 269 General and Administrative Costs 271 Burdened Wage 273 Functional Manager Estimates 274 Risk Analysis 275 Villa-Tech Project Cost Summary 279 Project Spending Profile 280 Bottom up Estimate Summary 281 Top Down Estimate 282 Rule of Thumb Cost Estimating Approach 282 6
  7. 7. Parametric Modeling 283 Analogous Estimating Technique 286 Learning Curve 287 Project Estimating Summary 295 Cost Management 298 Financial and Schedule Analysis 299 Stakeholders Requiring Special Attention 302 Chapter 7 Questions 306Chapter 8 313 Project Communications 313 Communications Management 314 Communication Pathways 317 Organization Communications Protocol 319 Communications Process 319 Conducting Effective Meetings 321 Memos 325 Listening 327 Verbal Communications 329 Telephone Protocol 329 Face-to-face meetings 330 Chapter 8 Questions 333Chapter 9 335 Quality 335 7
  8. 8. The Quality Gurus 337 Quality and the Project Manager 344 Quality Policy 346 Quality Planning, Assurance, and Control 349 Quality Planning 353 IEEE Software Quality Plans 357 Capability Maturity Model® (SW-CMM®) for Software361 ISO Standards 365 Six Sigma 368 Quality Assurance 371 Quality Control 375 Responsibility for Quality 378 Chapter 9 Questions 380Chapter 10 383 Project Risk 383 Risk Management Process 383 Risk Identification at the Proposal Stage 385 Contract 385 Technical Risk 386 Technical and Operational Performance 392 Damages 394 Labor Rates and Forward Pricing Projections 394 Business risk issues 395 8
  9. 9. Terms and Conditions 397 Other Costs 398 Mitigating Risk at the Proposal Stage 399 Risk Management During the Project 401 Mitigating Risk 405 Chapter 10 Questions 407Chapter 11 409 Project Tracking, Reporting and Procurement 409 Project tracking and reporting 409 Project Tracking Example 413 Summary of Monitoring and Tracking Activities 440 Subcontracting 440 Selecting Qualified Vendors 442 Preparing and Evaluating a Bid 443 Contract Administration 447 Project Completion 448 Post Project Review – Lessons Learned 449 Chapter 11 Questions 451Chapter 12 461 Epilogue 461 Project Management Perspectives Within the Organization 462 Project Management Career 464 Project Management Social and Technical Skills 465 9
  10. 10. Social and People Skills 466 Technical skills 468Appendix 1 - Typical Employee Performance Appraisal Forms 472Appendix 2 - Ethical Codes of Selected Professional Organizations 484Appendix 3 - Wilderness Survival Answer And Rationale Sheet 491AppENDIX 4 – ISO 9000 QUALITY MANAGEMENT PRINCIPLES 494REFERENCES 502 10
  11. 11. PREFACEI know I could never forgive myself if I elected to live without humane purpose, withouttrying to help the poor and unfortunate, without recognizing that perhaps the purest joyin life comes with trying to help others. – Arthur Ashe <>During the first year of my tenure as the Dean of Technology at Technical CareerInstitutes (TCI), I spoke with human resource personnel from more than twentycompanies that hired the college’s graduates. Each company praised the technicalabilities of the TCI students, but they indicated that the students required improvementin their social skills and understanding of an organization’s operation. The departmentchairs and I discussed the type of course that would help our students and the outlinefor this book evolved. The book reflects my experiences as an engineer, departmentmanager, and project manager in my 30-year career in industry.Today medium to large organizations routinely use project managers. Technologystudents will likely encounter a project manager in their first job. They may be part of aproject team or if the organization does not use the project manager methodology, theywill meet this person as a supplier or customer. Most undergraduates have littleunderstanding of how an organization operates or of an organization’s expectations.Who makes which decisions and why? Who manages the group? How do you getthings done? What does the culture permit? Seasoned employees realize thatemployment success depends not only on technical abilities, but also on the ability tointeract well with colleagues and quickly learning the organization’s “ropes.”This book serves five purposes. First, it introduces students to project basedinformation technology, manufacturing, and research and development businessenvironments. Second, the student will learn business and industrys vocabulary,processes and procedures, and expectations. Third, they will be able to ask intelligentquestions regarding the operation of that organization during a job interview. Fourth,they will be better able to evaluate different organizational management styles to decidewhat is best for them. Fifth, and perhaps most important, the student will be ready tostep into a new job and have some understanding of the organization’s expectations.To successfully accomplish the first objective, we will examine the project managersrole. A large number of organizations use the project manager (PM) model to cutacross the entire set of departments in an effort to get a job done on time, withinbudget, and without compromising quality targets. Understanding this personsfunction will enable the new employee to quickly adjust and contribute to the workenvironment.In the discussions that ensue, ethical questions may arise. This book will familiarizestudents with ethical issues that arise in the business and industry context. Questions 11
  12. 12. both in the text and at the end of the chapter will promote class discussions and serveto sensitize students to the moral dimensions of an organization’s issues.The text material will assist the student in their preparations for the Project +certification examination offered by CompTIA and the Certified Associate in ProjectManagement (CAPM) offered by the Project Management Institute. These certificationprograms prepare new practitioners for introductory project management positions withtitles such as coordinator, expeditor, planner, project administrator, or projectmanagement assistant.The viewpoint taken will follow the Project Management Institute’s Project ManagementBody of Knowledge (PMBOK). The text material covers many of the topics required bythe CompTIA Project+ examination.TCI instructors have successfully used the text material for a one-term 45-hourintroductory project management course. Instructors select from the followingsequence of topics: 1. The organization’s expectations, project management overview 2. Organization structures and professionalism 3. Management concepts (Fayol, Taylor, Weber, the Gilbreths, Maslow, Herzberg, McGregor) 4. Leadership, teams, project lifecycle 5. Project planning, project objectives, statement of work, work breakdown structure 6. Time management – schedule, milestone charts, critical path analysis 7. Introduction to Microsoft Project 8. Project cost management 9. Cost estimating, learning curves 10. Project communications – assessment and reporting 11. Quality planning, assurance, control 12. Risk management 13. Project monitoring and trackingI recommend allocating six-hours to the Microsoft Project software application. Duringthe first three-hours I introduce the student to the fundamental techniques of preparinga schedule using this software. We work in a computer laboratory during this sessionand each student uses a computer. In the second three-hour session, I assign an in-class student project. I find that organizing the students into groups of 2 to 3 peopleworks best for student learning. The students share a computer during this session.The topic of quality contains a rich amount of material. It is ideal for students to preparereports and make class presentations. Consequently, I have allotted up to six classhours to the quality discussion. I lecture for 1½-hours and allocate the remainder of thetime to three person team presentations. 12
  13. 13. Many of the quotes at the beginning of each chapter have influenced my thinking overthe years. Others I discovered while doing this research. I hope that it will positivelyinfluence the reader. Harvey Hoffman Somewhere between Manhattan and Fairfield, CT on the Metro-North train. ACKNOWLEDGEMENTI would like to thank the reviewers of the initial text drafts for their valuable and insightfulcomments. TCI teachers, Roy Lau, Pedro Lopez, Gilbert Chan, Steve Maybar, and Dr.Bert Pariser class tested versions of the manuscript and provided constructive critiqueof the work. I am also indebted to the TCI students who suffered through the MOT-200notes phase and the CD-ROM PDF file. I am grateful for their suggestions, whichhelped me a great deal.Finally, I want to express my appreciation and thanks to Cristina Hernandez of the ArtHistory department at Mt. San Antonio College and Tony Mattrazzo, a Public RelationsSpecialist at the New York State Archives Cultural Education Center for the images thatthey furnished for this project. DEDICATIONI have worked with nontraditional college students for many years. I dedicate this bookto the hard work and perseverance of this group of dedicated people. ! To the nontraditional college age men and women who commute to college after or sometimes before a day’s work. ! To the student-parents who have concerns about the whereabouts of their children while they attend school. ! To the student care givers who worry about the health and welfare of their children, parents, friends or relatives. ! To the significant-others, spouses and children that give up time during the evenings and weekends so that the nontraditional student can complete homework or prepare for a test.Keep plugging. It may take a while, but graduation will come -- and success will feel sogood! 13
  14. 14. CHAPTER 1 Organizational Expectations and Professionalism Whether you think you can or whether you think you cant .... You are right. - Henry Ford <>Chapter objectivesAfter studying this chapter, you should be able to: Understand an organization’s expectations Understand the components of an employee assessment Understand the elements of professionalismCharacteristics of the business environment during the 1990s included rampanttechnical innovation, a global economic perspective, a free-market, and a requirementfor continuous employee learning. The 2000s began with a 30-year low unemploymentrate (4.1%) and black and Hispanic workers had the lowest rate (8% and 6.4%,respectively) since the Labor Department began breaking out statistics (Stevenson, p.A1). Even during these good times, numerous layoffs, downsizings, restructurings, anddelayerings occurred due to corporate mergers and reorganizations. Theseorganizations focused on productivity to ensure quarterly sales growth and regular profitincreases. The economy is cyclical and cooled down in 2001 with telecommunications,Internet, data processing, dot-com and other companies slashing their workforce. (Seefor example Technology Layoffs Watch at 14
  15. 15. Unemploymentskyrocketed. Knowledge workers that maintained up-to-date skills kept their full-timejobs. Others survived on a mixture of part-time and contract work. Those not updatingtheir knowledge base had difficulty obtaining employment. The lesson is clear –people must take responsibility for continually managing their careers.Business and industry provides a service or a product to both internal and externalcustomers and exists not only to make money, but more to the point -- to make a profit.Todays corporation requires employees that are responsive to the customers needs --employees that will delight the customer while maintaining sensitivity to the bottom-line.Table 1-1 compares the forces and factors confronting the modern corporation andtodays employee with those of some years ago.Today, corporations move quickly through uncharted water, moving in a directiontoward a defined corporate mission, but frequently making seemingly chaoticexcursions from the azimuth. Employees must empower themselves. They mustembark on a lifelong journey that includes updating their skills and pursuing newopportunities that meet their professional objectives. Maintaining accountability toyourself increases your value to the corporation. Demanding new work experiences,requesting challenges, developing new skills makes you a more valuable person to theorganization. Paradoxically, the selfish attitude of looking out for number one makesyou a number one company resource! 15
  16. 16. Table 1-1 Forces and Factors Confronting the Corporation and Students Traditional TodayCorporation Long term profits Immediate profits! Quarter to quarter earnings growth Insulated Competitive Hierarchical Flat – fewer managers Parent Employer Rich Lean – fewer employees that do more, increased employee responsibility Thorough Fast and good Stable Changing, hectic, chaos, turbulentEmployee Specialized talents Broad capability Dependent Empowered Comfortable Stressed Loyal to company Loyal to self Entitled Accountable Learn then earn Learn to earn – lifelong learningAdapted from Goldman ( Expectations - TACTPut yourself in the position of a corporate chief executive officer. Suppose yourcompany has merged with another resulting in a duplication of some jobs and services.Keeping every person employed represents an unacceptable expenditure of funds.Stockholders demand profits and expect increased employee productivity because ofthe merger. Suppose the company has decided to reduce the workforce by 5%. Whatguidelines would you propose to your managers to help them decide on the employeesto include in a layoff? 16
  17. 17. The acronym TACT representing Technical Competence, Attitude,Communication, and Teamwork identifies four broad categories of employerexpectations (Figure 1-1). Certainly technical competencies would probably be mostpeoples first choice on the list of important employee capabilities. Every employeemust have the unique training, knowledge, and skills to perform the required tasks.Does the person have up-to-date skills? If not, out the door. However, this guidelinelists technical competence as one of four employee expectations -- attitude,communication, and teamwork skills complete the set. Employers want a reliableperson who will come to work with a positive, can-do attitude. Following the conclusionof a task, supervisors and managers expect employees to move onto the next activitywithout coaxing.Some time ago, a newspaper advertised for web masters and web designers with thefollowing words: "We need a variety of risk taking, fun loving, creative people who will thrive in a start-up environment. If you are looking for a traditional or comfortable place to work 9-to-5, FORGET IT! We need cutting edge, off- the-wall, 24/7 type people who dont worry about job descriptions to become a part of our team" (Connecticut Post, September 3, 2000, Section I, p. 2).The emphasis in this advertisement is attitude, enthusiasm, and a willingness to work.The employer expects technical capability, but clearly, it is not the only job requisite. 17
  18. 18. Employers will take the zeal and raw talent that a person brings and train them to do thejob, if they show promise.Business depends on accurate and complete verbal and written communication withcustomers, clients, colleagues, subordinates and supervisors. They expect promptinformation transfer so that managers and supervisors remain informed of all majorissues. Customer reports, manufacturing and production difficulties, vendor delays,engineering problems, and purchasing issues must be quickly documented so thatpeople take appropriate actions and make timely responses.The day of the lone wolf is gone. Business and industry work in teams operating withinter-department groups, cross-functional teams, "tiger teams", "skunk works", jointventures, and corporate teams. Companies place a premium on "people skills".Teams meet regularly to share information and discuss resolutions of common issues.Members depend on one another to meet commitments that support design,development and production schedules. Teams consist of a broad spectrum of ethnic,racial, regional and international personnel. Employees must work comfortably andcompatibly with a diverse mix of individuals. People must respect each other’s genderand age differences. A diverse workforce provides the wide range of skills and insightsdemanded by todays global marketplace. Unprecedented challenges confrontAmerican companies. They must be faster, smarter, and more flexible than thecompetition. Companies must take advantage of all of the knowledge inherent in adiverse workforce and individuals must respond by welcoming the opportunity to 18
  19. 19. maximize the benefits derived from working with people from a wide range of cultures,ages, and backgrounds.Selecting the best employees requires a detailed review of their previous efforts. Thehuman resource department maintains past employee performance evaluation records.Examining this data will permit managers to make conclusions regarding theemployee’s potential for contributing to future activities. 19
  20. 20. Figure 1- 1 Employer Expectations for a Desirable Employee – Remain on the TACT Target TECHNICAL COMPETENCE • Knowledge of ATTITUDE profession and its tools • Punctual • Good judgment • Attendance COMMUNI- • Creative • Dress CATIONS • Problem solver Appropriately TEAMWORK • Analytical and • Initiative ♦ Interact with others • Verbal Decisive • Self Starter ♦ Meet commitments • Written • Continued growth • Seeks ♦ Respect diversity • No in job and additional surprises ♦ Cooperate professional responsibilities knowledge • Adaptable • Accountable for • Flexible their career • Dependable success • Reliable • Lifelong learners 20
  21. 21. Employee ExpectationsPeople represent an organizations greatest asset. The way they perform has a directaffect on profitability. Performance reviews and evaluations give employers anopportunity to shape the development of employees, improve work standards, anddefine areas of responsibility. It promotes accountability, and identifies future goals andexpectations.Employees are judged on their contributions to the projects to which they are assigned.Employee performance reviews include two parts. First, the ongoing informal oral orwritten communication that takes place throughout the year between employee andsupervisor. Second the formal discussion between the employee and supervisor thatincludes a review of the written results in a periodic employee evaluation report.The periodic evaluation review represents a communications tool between the employerand employee. The document informs the employee of the manager or supervisorsexpectations. It provides an opportunity to establish or identify employee goals, andidentifies the assistance that the company can provide to assist the employee inattaining them (training, education, etc.). If required, the review usually identifies areasfor improvement that will enable the employee to reach a satisfactory level of jobperformance. The organization informs employees of its professional expectations atthe same time it tells employees about their performance relative to these indicators.Based on this evaluation the employer frequently makes decisions about employee 21
  22. 22. salary increases, promotions, and training. The performance review and employeeappraisal measures on-the-job performance and may indicate future job direction. Thereview clarifies employee duties and usually summarizes major employeeaccomplishments since the last review. Reviews should identify areas for improvementand recommend methods to improve to improve performance. The supervisor andemployee should discuss training and development needs for both current and futureassignments.Frequently, employers evaluate new employees more often during the first year thanthose employed for a longer term. New employees may receive reviews three months,six months, and one-year following the date of hire. These reviews encouragesupervisors and managers to closely associate with new employees and understandtheir capabilities while clarifying expectations. Longer-term employees may receiveonly an annual review.Examining the employee review forms in Appendix 1 confirms that technical capabilityis important, but not the sole criteria for long-term success. Companies value andmeasure many different aspects of the individual’s contirubtions. These include: • Quality (accurate, complete, timely, consistent). • Quantity of work (keeping pace with the workload, providing the "extra effort" when needed). • Dependable (consistent attendance, punctual, reliable). • Independent (ability to work with a minimum of supervision) 22
  23. 23. • Organizational ability (setting priorities, meeting commitments). • Team player (cooperative, interacts well with customers, suppliers, and colleagues). • Communication (good verbal and written communication skills, shares information with co-workers). • Motivation (committed to work and profession, self-starter, positive attitude). • Judgement (tactful, displays appropriate sensitivity, makes sound decisions). • Handles stress (can work under deadlines, remains calm, controls temper). • Problem solving (quick insight into problems, offers appropriate solutions, able to analyze complex interdependencies) • Creative (willing to try new solutions, develops new ideas). • Decisive (controls analysis paralysis tendencies, takes action). • Dress (reports for work properly attired, clean).The employees salary and salary increase will reflect the employees total performanceas perceived by managers and supervisors. Selecting people for a promotion -- or alayoff is a complex decision that depends on a broad range of factors only one of whichis technical competence. Since all companies keep records of these evaluations, youmay recommend that managers use performance evaluations as the basis foremployment decisions. Over time, the employees complete picture becomes clear andthe company takes action based on the overall performance record. 23
  24. 24. The following excerpt from an article that appeared on the web( -- August 16, 2000) illustrates theimportance of the employer’s perception of the individual’s capabilities and attitude. FedEx May Cut 200 Information Technology Jobs NEW YORK, Aug 16 (Reuters) - FedEx Corp could cut 200 jobs by next month from its information technology operations, a company spokesman said Tuesday. ``Some of our projects are not adding value, said Jess Bunn, a FedEx spokesman in the Memphis headquarters. ``Were looking for better ways to serve our customers and add values, so theres the possibility of about 200 layoffs. Layoffs will probably begin by mid-September. In the next two weeks employees will be evaluated based on their contributions to short-term tasks and objectives as well as long-term goals and strategies, their contribution to leadership, cooperation in teamwork and performance, other FedEx officials said. The information technology workers develop and maintain computer software and hardware to help FedEx run its operationsFedEx intended to make layoff decisions based on a variety of employeecharacteristics. Technical performance is necessary but not sufficient to keep a job.Social skills and willingness to “do whatever it takes” will help keep a job and enablepeople to advance in the organization. 24
  25. 25. ProfessionalismThe ideas of technical competency, responsibility to clients, customers and employers,lifelong learning, attitudes and behavior stems from the broad concept ofprofessionalism. The Institute of Electronic and Electrical Engineers (IEEE) defines aprofession as a learned occupation requiring systematic knowledge and training, andcommitment to a social good. There must exist a specialized body of knowledgeunique to the profession, which should be intellectual in character. It can be developedby a group of people in the initial stages, but educational institutions must transmit thisknowledge to succeeding generations of practitioners (Adams & Kirchof).Characteristics of a profession include the following: ♦ Predominantly intellectual and varied in character, as opposed to routine, menial, manual, mechanical, or physical work ♦ Sanctioning organizations members share common training, values, and skills ♦ Competencies require knowledge of an advanced type in a field of science or learning ♦ Recognized educational institutions of higher learning provide the coursework in the learned disciplines ♦ Participation in the establishment and maintenance of educational institutions that meet minimum acceptable standards that teach the body of knowledge ♦ Continuous learning ♦ Involvement in activities that required the consistent exercise of discretion and judgement 25
  26. 26. ♦ A well defined and growing body of literature ♦ Refereed (i.e. articles and research requiring peer review before publication) journals ♦ Service motiveUsing these characteristics, the community of people that share common training,values and skills create a sanctioning or authenticating organization that promotes theprofession. Dissemination of InformationEvery professional organization defines itself by its mission, guiding philosophy, andunique occupational body of knowledge. Perhaps the dissemination of information isthe primary vehicle used to promote the organization and the profession. Journalspublish peer-reviewed research and development results. Colleagues with similarbackgrounds first read these papers. Reviewers respond to the author(s) withcomments intended to improve or clarify the work. The author(s) make the correctionsand resubmit the manuscript. Papers require up to a year in the review process beforefinal publication. Monthly magazines offered by professional organizations print articlesof general interest, which do not pass through such an extensive review process. Evenso, it may take from three to six months before publication confirmation.Frequently the organization distributes a newspaper with current information containingarticles of an ephemeral nature, conference announcements, awards, electioninformation, and employment advertisements. Editorial comments may appear in the 26
  27. 27. newspapers that reflect members opinions about national political issues that relate tothe organizations mission. Local chapters of national organizations may also publish amonthly or quarterly newsletter. ServiceProfessional organizations have a wide range of activities. While individuals receivecompensation for their work as provided to customers and clients, they seldom receivepayment for service to the profession. Service activities include volunteering for localchapter or regional activities or supporting national seminar/symposium meetings.Authors of papers submitted to professional organizations do not receive financialcompensation, but do receive the appreciation and sometimes the accolades of theircolleagues. Professionals serving on accreditation committees that review the quality ofprograms offered by educational institutions do so on a voluntary basis. They seek tosupport and further their chosen profession. Many companies financially support andendorse educational programs, seminars and symposiums offered by professionalorganizations. They do so to improve the profession and the knowledge of thepractitioners in their employ. EducationOrganizations participate in a process to promote the quality of education and trainingreceived by prospective members and students. As an example, the Institute ofElectrical and Electronic Engineers (IEEE), American Society of Mechanical Engineers(ASME) and other engineering organizations collaborate under the Accreditation Board 27
  28. 28. for Engineering and Technology (ABET) umbrella to improve the education of technicalpersonnel in engineering and related disciplines. Upon request, ABET representativesvisit colleges offering engineering and technology programs. The team conducts adetailed review of the program to ascertain that the institution meets minimumstandards established by ABET and its member bodies (i.e. the engineering societies).Periodic follow-up reviews encourage the institution to maintain a quality program.ABET accreditation is a voluntary process that helps to assure that graduates of anaccredited program are prepared for careers in engineering and engineeringtechnology. With support from organizations like ABET, professions encourageinstitutions to provide education that meets the career’s changing needs, modernizeinstitutional facilities, employ competent faculty that participate in on-going learning, andintroduce new technology into the courses. Managing Oneself"Success in the knowledge economy comes to those who know themselves -- theirstrengths, their values, and how they best perform" (Drucker, 1999). We no longerenjoy the days of job security in exchange for moderate performance and corporateloyalty. We each must manage our careers to maintain our employability. Perhapslifelong education is the most important factor in developing a career-resilientworkforce. Waterman, et al, refers to the new professional as people dedicated to theidea of continuous learning and as people who "take responsibility for their own careermanagement. For each individual, this means staying knowledgeable about markettrends and understanding the skills and behaviors the company will need down the 28
  29. 29. road." With constant changes in technology, professionals must regularly assess theirskills and take action to upgrade themselves and direct their careers so that they canfunction with a maximum of effectiveness. Koonce (1995) advises “ the best way tostay employed today and in the future is to look upon yourself as being in business foryourself even if you work for someone else” (p.20).For the most part, professional employees are engaged in "at will" employment. Thatis, the employer can terminate the employee at any time and the employee can likewiseleave the employer at any time. Business and industry constantly asks the questions"What have you done for me lately?" and "Are you worth paying for?" Professionalsmust engage in ongoing and lifelong education to enable them to respond affirmatively. Professional EthicsProfessions want the public to perceive their members as following a principledstandard of behavior in dealing with clients, customers and colleagues. Consequently,professional organizations define a standard of behavior in the form of a code of ethicsto which members must adhere. Ethic deals with people’s behavior towards others.Ethics attempts to arrive at acceptable principles of obligation and general valuejudgements, which serves to help us determine human actions and conduct that aremorally right, good, and responsible. Several professional organizations ethical codesare shown in Appendix 2. A common thread among these ethical codes requires apractitioner to accept responsibility for actions taken in the conduct of professionalactivities. The professional must demonstrate responsibility to the public; the employer, 29
  30. 30. customer, client, and colleague; as well as to yourself. The profession requirespractitioners to engage in lifelong continuing education to maintain skills that will enablethem to perform with competence and the exercise of good judgement. Ethicaldiscussions are particularly relevant with the development of new technologies such asthe Internet and networking computers in the office. Ethical questions continually arisewith regard to product safety; worker safety; privacy in the workplace; employee andconsumer rights; corporations moral responsibility; obligations of employers to theiremployees, employment at will; businesss social responsibilities; and corporate self-regulations vs. government regulation.During the course of their work, technologists will confront ethical dilemmas. Thedecisions you make could quite conceivably affect a user’s health and safety, aprospective promotion or even your job. Technologist must make a decision even ifsituations arise that contain ambiguities and uncertainties. Space shuttle Challengerengineers’ suspected a safety problem regarding the cold temperature performance ofa gasket on a space shuttle. Failure to act on this issue resulted the loss of lives and amajor setback to the U.S. space program. Automotive engineers suspected theplacement of a gas tank in at least two vehicles could lead to an explosion on impact.Automotive organizations failoure to quicly act on this information also cost lives. Fromtime to time, engineers discover deficiencies in a buildings structural integrity andchoose not to act because it would breach client confidentiality to report the informationto a third party. Ethical considerations arise if you identify potential conflicts betweenyour interests and those of your client. Suppose you see hours charging more hours 30
  31. 31. than they actually work on a job. Do you report them? Do you do it yourself if no onewould report your indiscretion? Ethical dilemmas frequently confront us and we haveto first recognize it and then decide on a course of action.Sometimes the questions are not easily resolved and the professional may undergosubstantial inner turmoil in making decisions (figure 1-2). Decisions may result insignificant consequences to the employees future. Employees have resigned fromtheir job because of an ethical conflict. Some have lost their job. The federalgovernment has created the “whistleblower’s” to protect federal employees job aftermaking a charge involving an ethical question.As practicing members of a profession, we have responsibilities to a wide range ofpeople. Employers, customers, clients, and colleagues have concerns andexpectations about the professionals performance and ethical standards. Even in thesports arena, which is not a profession in the sense that we use it in this book, MichaelJordan on assuming the position of president of basketball operations at theWashington Wizards, commented that "Its my job to make sure they [the team players]put the effort on the court to show respect for the people paying to watch them"(Sandomir).The professional occupational organization spells out ethical responsibilities. If ever aconflict arises in your mind between the employers requests and demands and theprofessional organizations code of behavior review the organizations ethics code and 31
  32. 32. perhaps talk with a colleague to clarify your position. As a new member of a profession,consider joining and supporting your professional organization. Certifications and LicensesIn an effort to promote quality professional service, some organizations promotemember licensing or certifications by state government or private organizations tosignify member competence in the general discipline or specialty areas. Professionalorganizations frequently establish committees that accept complaints from the publicregarding members performance or behavior. This internal self-policing program hasthe power to discipline the member. The results of a disciplinary review may extendfrom no action to censure or even to license or certification revocation.Trades and CraftsThe foregoing discussion does not intend to demean the competency, importance orquality of trades and craft workers. This community participates in training andapprenticeship programs. Some trades and crafts have sanctioning organizations thatpromote the vocation. A trade emphasizes manual dexterity and physicals skills ratherthan intellectual activity. While some trades require a license or certification to practice,few trade organizations monitor their members and have a code of conduct. Fewvocations, other than professions, monitor the education providers’ program qualityusing voluntary service on accreditation committees. Trades and crafts tend not to havepeer-reviewed publications. Some students confuse the word expert with professional.A professional should be an expert, but an expert need not be a professional. The two 32
  33. 33. words are not synonyms. Plumbers, carpenters, electricians, machinists, automechanics, and cab drivers perform vital services and some in these occupations earnmore than lawyers, engineers, teachers or physicians. While they can be experts intheir discipline, in the strict sense used in this book, we don’t call them professionals. 33
  34. 34. Figure 1-2 -- A Cauldron of Difficult Decisions Confronting Employees Ideals Standards Responsibility Bias Fraud Virtue Duty Morality Plagiarism Dishonesty Professional Community Honor Public Welfare 34
  35. 35. Chapter 1 Questions1) Explain the statement used in the text “The selfish attitude of looking out for number 1 makes you a number 1 company resource.”2) Do you consider people practicing the following occupations as "professionals"? Explain your answer. a) Electrician b) Plumber c) Nuclear physicist d) Social worker e) Electrical or mechanical engineer f) Stock broker g) Librarian h) Physician i) Lawyer j) Teacher k) Union member l) Locomotive engineer m) Welder n) Military officer o) Police officer p) Politician3) We sometimes hear the phrase, "That person did or did not behave professionally." Write a short essay describing your concept of professionalism.4) The text describes characteristics of a profession. With which characteristics do you agree or disagree? Explain your answer.5) What are the common features of the ethical codes of conduct shown in Appendix 2? With which principles do you agree or disagree? Explain your answer.6) "The ends justify the means." Explain this statement. Do the ethical codes of conduct in Appendix 2 permit this philosophy? Describe circumstances under which this statement would be appropriate.7) Limit personal phone calls at work to emergencies only. Do you agree or disagree? Explain your answer.8) Morning social discussions with work associates a) Improves morale and should be engaged in every day. b) Reduces company productivity. c) Should not be conducted in front of a manager. 35
  36. 36. 9) Examine the three employee evaluations in Appendix 1. a) What are the common characteristics found in each? b) What are the major differences among them? c) What additional job performance criteria would you include in the evaluation? d) Describe your view of the perfect employee performance evaluation.10) In the December 27, 1999 issue of Sports Illustrated, Jeff Pearlman wrote an article about John Rocker of the Atlanta Braves. The article describes Rocker, as a 25 year old, hard-throwing 64", 225-pound left-hand relief pitcher. In the article, Rocker bashed African Americans, Asians, Koreans, Vietnamese, Indians, Russians, Hispanics, single mothers, Asian drivers, AIDS patients, gays and those people of a race or sexual orientation different from his. He called an overweight black teammate "a fat monkey." Bud Selig, the baseball commissioner, ordered Rocker to undergo psychological evaluation and then punished Rocker for his comments with a $20,000 fine, a two month suspension and ordered him to undergo "sensitivity training." In an article in The New York Times, Jeffrey L. Seglin commented, Perhaps without the added burden of tabloid headlines, many businesses face similar situations: A star employees privately tolerated "idiosyncrasies" spin out of control, and management must respond publicly. "In the business world, theres a very good chance that somebody like this would be fired immediately," said Joseph L. Badaracco Jr., professor of business ethics at the Harvard Business School. "The hideous content of his views would badly damage the companys reputation, so theyd want to disassociate themselves." In a subsequent chance meeting with Rocker after publishing the article, reporter Jeff Pearlman said the pitcher threatened him and tried to get him banned from the Atlanta clubhouse. Neither the team nor Major League Baseball took further action against Rocker. Outfielder Brian Jordan said "Youve got one guy being a cancer time and time again. Eventually, its going to have an effect on the team." The Atlanta Braves traded Rocker to the Cleveland Indians in June, 2001. a) Comment on the statements made by John Rocker. b) Should John Rocker be penalized for exercising his right of freedom of speech as provided for in the first amendment to the U.S. Constitution? c) Suppose you were John Rockers manager, what would you do to stabilize the situation? In your discussion, consider the impact on his teammates, other teams, the sport, and the public. 36
  37. 37. d) Suppose a "star employee" working at a company, voices derogatory comments about some other employee? In your opinion, what position should a company take?11) Suppose the Rekcor Company manufactured the finest Framistan (a fictitious component) at the lowest prices. If you were a purchasing agent from another company and you discovered that several employees from the Rekcor Company were intolerant of some of your personal beliefs, would you purchase Framistans from this company? Explain your position.12) The human resource department at Magna-Net has a policy requiring all non-union technical employees to work one unpaid overtime hour daily. Tundra Industries permits flexible hours and does not have a formal policy to check the coming and going of its employees. a) For which employer would you prefer to work? Why? b) What are the advantages and disadvantages of both policies? Formulate your response first from the employers viewpoint and then from the employees perspective. c) Which employer treats its staff in a more professional manner? Explain your answer. d) Why would Magna-Net institute such a policy?13) Do you agree with the statement “Personal ethical practices and business ethical practices have little in common”? Explain your answer.14) Class Exercise As stated in chapter 1, organizations emphasize cooperation among team members. This class exercise examines both an individuals and a groups response to an unusual set of questions. At the end of the exercise, you will compare your individual score with that of the group. Divide the class into groups of 3 to 4 people and follow the directions. Do not peek at the answers shown in appendix 3 until the group has completed the worksheet. Correct the worksheet after the group has completed their responses. WILDERNESS SURVIVAL WORK SHEETHere are twelve questions concerning personal survival in a wilderness situation. Yourfirst task is individually to select the best of the three alternatives given under each item.Try to imagine yourself in the situation depicted. Assume that you are alone and havea minimum of equipment, except where specified. The season is fall. The days arewarm and dry, but the nights are cold. 37
  38. 38. <>After you have completed this task individually, you will again consider each question asa member of a small group. Your group will have the task of deciding, by consensus,the best alternative for each question. Do not change your individual answers, even ifyou change your mind in the group discussion. Both the individual and group solutionswill later be compared with the "correct" answers provided by a group of naturalists whoconduct classes in woodland survival. 38
  39. 39. Question Your Answer Your Group’s Answer1. You have strayed from your party in tracklesstimber; you have no special signaling equipment.The best way to attempt to contact your friends is to:a. Call "help" loudly but in a low registerb. Yell or scream as loud as you canc. Whistle loudly and shrilly2. You are in "snake country". Your best action toavoid snakes is to:a. Make a lot of noise with your feetb. Walk softly and quietlyc. Travel at night3. You are hungry and lost in wild country. The bestrule for determining which plants are safe to eat(those you do not recognize) is to:a. Try anything you see the birds eatb. Eat anything except plants with bright red berriesc. Put a bit of the plant on your lower lip for fiveminutes; if it seems all right, try a little4. The day becomes dry and hot. You have a fullcanteen of water (about one liter) with you. Youshould:a. Ration it - about a cupful a dayb. Not drink until you stop for the night, then drinkwhat you think you needc. Drink as much as you think you need when youneed it5. Your water is gone; you become very thirsty. Youfinally come to a dried-up watercourse. Your bestchance of finding water is to:a. Dig anywhere in the streambedb. Dig up plant and tree roots near the bankc. Dig in the streambed at the outside of a bend 39
  40. 40. Question Your Answer Your Group’s Answer6. You decide to walk out of the wild country byfollowing a series of ravines where a water supply isavailable. Night is coming on. The best place tomake camp is:a. Next to the water supply in the ravineb. High on a ridgec. Midway up the slope7. Your flashlight glows dimly as you are about tomake your way back to your campsite after a briefforaging trip. Darkness comes quickly in the woodsand the surroundings seem unfamiliar. You should: a. Head back at once, keeping the light on, hopingthe light will glow enough for you to make outlandmarks b. Put the batteries under your armpits to warmthem, and then replace them in the flashlight. c. Shine your light for a few seconds, try to get thescene in mind, move out in the darkness, and repeatthe process.8. An early snow confines you to your small tent.You doze with your small stove going. There isdanger if the flame isa. Yellowb. Bluec. Red9. You must ford a river that has a strong current,large rocks, and some white water. After carefullyselecting your cross spot, you should:a. Leave your boots and pack onb. Take your boots and pack offc. Take off your pack, but leave your boots on 40
  41. 41. Question Your Answer Your Group’s Answer10. In waist-deep water with a strong current, whencrossing the stream, you should face:a. Upstreamb. Across the streamc. Downstream11. You find yourself rim-rocked; your only route isup. The way is mossy, slippery rock. You should tryit:a. Barefootb. With boots onc. In stocking feet12. Unarmed and unsuspecting, you surprise a largebear prowling around your campsite. As the bearrears up about ten meters from you, you should:a. Runb. Climb the nearest treec. Freeze, but be ready to back away slowlyScore:Number You Have Correct:Average Score For Your Group (Sum ofindividual scores/ number of group members):Group Score:Difference Between Group Score And Average: 41
  42. 42. Self-check testCircle the correct answer to each of the following questions or fill in the blanks.1) Which of the following are services? a) Mail delivery b) Valet parking c) Teaching d) Taxi ride e) Wedding pictures f) Newspaper2) Which of the following are products? a) Physician’s diagnosis b) Life insurance c) Fruits and vegetables d) Tire e) Tire changer3) What are characteristics of today’s organizations? a) Stable b) Specialized c) Accountable d) Stressed employees e) Dynamic4) Identify expectations that employers have of good employees a) Excellent Attitude b) Excellent communication skills c) Limit personal activities (personal telephone calls, web surfing, etc.) to 30 minutes during the workday d) Ethical practice e) Ready and willing to contribute to a team effort f) Sexy dresser g) Come late – leave early h) Outstanding technical capability5) How often do long-term employees receive formal written employee evaluations? a) Daily b) Weekly c) Monthly d) Annually6) Which are not examples of professional organizations? a) A trade union b) AFL-CIO c) Automobile Workers Union d) American Management Association e) American Medical Association f) American Bar Association 42
  43. 43. g) Institute of Electrical and Electronic Engineers7) Characteristics of a profession include a) Predominantly intellectual activity b) Learning a skill that will last a lifetime c) Common body of knowledge that is taught in institutions of higher education d) Code of ethics e) Journals publishing peer reviewed articles f) Uniform g) Use of Specific tools8) Select the best answer that describes a professional code of ethics. a) A principled standard of behavior in dealing with the employer, customers and colleagues. b) A standard of behavior that deals with customers. c) A set of rules to be used at the discretion of the professional. d) A certification that permits a person to practice a profession. 43
  44. 44. CHAPTER 2 The Organization You miss 100 percent of the shots you never take. -- Wayne Gretzky, Professional Hockey Player <>Chapter goalsAfter studying this chapter, you should be able to: Understand an organization’s core identity Explain the difference between objectives and goals Explain SWOT Apply the SWOT concept to your own personal life Understand organizational standards, policies and proceduresThe word organization is used throughout this book to mean a group of people workingtogether for common purposes. The group creates a structure in which individualscooperate to conduct activities. An organization may have a profit or non-profit financialorientation. It may consist of voluntary or paid workers or a combination of both. Theorganization may originate from the public (e.g., federal, state, local governmentagencies) or private sectors. It may have religious or secular purposes. It may consistof professionals or hobbyists. It may employ people represented by a labororganization, non-union personnel, or consultants. The organization may exist in a 44
  45. 45. local geographic area or have multiple sites around the world. Project managementideas discussed in this book apply to all organizations. Organizations consisting of asingle independent contractor as well as large international corporations with multi-million dollar contracts can use the concepts discussed.Core IdentityAn organization’s core identity consists of three items: a mission, a value ideology, anda vision. Not all organizations think about and intentionally create an identity. Ifmanagement does not prepare and articulate a core identity, the corporate culture willforce an identity to bubble up and surface. Lacking leadership, the identity that evolvesmay or may not inspire and guide the employees in the direction that managementprefers.Mission: The mission statement explains the organizations purpose. It is a statementof why the organization is in business. The mission is a raison dêtre (reason forexistence), not a goal or a business strategy. The mission statement serves as thebasis for establishing the organization’s strategic objectives. David Packard describedHewlett Packards mission in 1960: "I want to discuss why a company exists in the first place. In other words, why are we here? I think many people assume that a company exists simply to make money. While this is an important result of a companys existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company 45
  46. 46. so they are able to accomplish something collectively that they could not accomplish separately -- they make a contribution to society, a phrase which sounds trite but is fundamental…You can look around [in the general business world] and see people who are interested in money and nothing else, but the underlying drives come largely from a desire to do something else: to make a product , to give a service -- generally to do something which is of value" (Collins & Porras, 1996, p. 68).Hewlett Packard doesnt exist to make electronic test and measurement equipment butto make technical contributions for the advancement and welfare of humanity. Thismission is not time dependent. It will last for as long as Hewlett Packard’s seniormanagement regards it as important. Other corporate missions include: Konosuke Matsushita (Panasonic): Recognizing our responsibilities as industrialists, we will devote ourselves to the progress and development of society and the well being of people through our business activities, thereby enhancing the quality of life throughout the world. Mary Kay Cosmetics: to enrich women’s lives Sony: To experience the joy of advancing and applying technology for the benefit of the public ExxonMobil: to Provide quality petrochemical products and services in the most efficient and responsible manner to generate outstanding customer and shareholder value. Staples: Slashing the cost and hassle of running your office! 46
  47. 47. New Jersey Transit: to Provide safe, reliable, convenient and cost effective transit service with a skilled team of employees, dedicated to our customers’ needs and committed to excellence.Samsung: We will devote our people and technologies to create superior products and services, thereby contributing to a better global society.Readers Digest: to create products that inform, enrich, entertain and inspire people of all ages and cultures around the world. We are committed to understanding, anticipating and satisfying consumers needs. This takes precedence in all that we do.Southwest Airlines: dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit.Kellogg: committed to building long-term growth in volume and profit and to enhancing its worldwide leadership position by providing nutritious food products of superior value3Com: to connect more people and organizations to information in more innovative, simple and reliable ways than any other networking company in the world.Adolor Corporation: committed to the development of the next generation of novel analgesics and related therapeutics for the treatment of pain based upon recent advances in proprietary medicinal chemistry and recombinant opiate receptor technology 47
  48. 48. Abbott Laboratories: to improve lives worldwide by providing cost-effective health care products and services. Millennium Restaurant (San Francisco, CA.): We believe that a gourmet dining experience can be created out of vegetarian, healthy, and environmentally friendly foods.Value Ideology: The "core ideology provides the glue that holds an organizationtogether as it grows, decentralizes, diversifies, expands globally and developsworkplace diversity" (Collins & Porras 1996). These represent the values and beliefsystems underlying the company. Core values will not change over time. The WaltDisney Company is famous for its values of imagination and wholesomeness. HewlettPackard emphasizes a respect for the individual and a commitment to communityresponsibility. Mercks core values include corporate social responsibility, honesty andintegrity, and profit from work that benefits humanity. Sonys values include theelevation of the Japanese culture and national status, being a pioneer -- not followingothers, doing the impossible, and encouraging individual ability and creativity. Theorganizations core values should be so fundamental that the company should followthem even if at some point one or more of them became a competitive disadvantage.Vision: "A vision is an attempt to articulate what a desired future for a company wouldlook like. It can be likened to … an organizational dream -- it stretches the imaginationand motivates people to rethink what is possible [Belgard, Fisher, & Rayner 1988]. 48
  49. 49. Martin Luther Kings most famous speech is literally labeled, I have a dream, becausehe elucidated his vision of a nonracist America" (Jick 1989). The vision representssomething the organization aspires "to become, to achieve, to create -- something thatwill require significant change and progress to attain" (Collins & Porras 1996). TheMicrosoft vision is " A computer on every desk and in every home, all running Microsoftsoftware in every computer." This is certainly a lofty ideal. In the 1960’s, everyoneknew and understood the National Aeronautics and Space Administrations (NASA)mission -- Get to the moon and back before the end of the decade. Does NASA have avision today? Do you know it? No? Perhaps that is part of the reason NASA hasfunding problems in the congress.Vision statements may incorporate four elements: 1) customer orientation, 2) employeefocus, 3) organizational competencies, and 4) standards of excellence (Jick 1989, p.3).A vision should be vivid and evoke emotion. It should motivate people. It should bepowerful enough to engage all those in the organization to willingly align themselves inthe effort to achieve this mission. The vision should be ♦ Clear, concise, easily understandable ♦ Memorable ♦ Exciting and inspiring ♦ Challenging ♦ Excellence-centered ♦ Stable, but flexible ♦ Implementable and tangible (Jick 1989, p. 2). 49
  50. 50. Know the Companys Core Identity: Before joining an organization investigate its coreidentity. Ask questions and make certain that you feel personally comfortable with theorganization. Confirm that it shares your values and purpose. Try to ascertain that theorganization accepts a diversity of people and opinions. When joining an organization,dont expect to create a new core. If the core values are compatible with your valuesthen press on. If not, look into another organization. Sometimes you cannot determinewhether employees practice the core values described in the company’s literature. Ifafter joining the organization you discover a value gap exists with which you cannot livethen look for a new opportunity.Objectives and GoalsOnce the organization establishes the fundamental elements of mission, values, andvision, the employees can establish and pursue objectives and goals. Theorganization’s goals represent a general statement of purpose and direction. They donot include the setting of specific targets (objectives). Goals may be divided intostrategic (long-term) and tactical (short-term) categories. Upper managementdetermines long-term strategic goals that will guide the organization over a longerperiod – perhaps three to five years. Frequently they use a SWOT (Strengths,Weaknesses, Opportunities, Threats) analysis as an aid in determining direction.Strength, Weakness, Opportunity, Threat (SWOT) 50
  51. 51. A SWOT analysis helps find the best match between external trends (opportunities andthreats) and internal capabilities. • A strength is a resource the organization can use to achieve a desired result. • A weakness is an organizational limitation that will keep it from achieving this result. • An opportunity represents a situation that would increase demand for the organization’s product or service that it offers. • A threat represents a potentially damaging situation in the organization’s environment. The threat may be a restriction, a barrier, a constraint, or a political or economic situation that might cause problems in successfully delivering the organization’s products or services.An effective set of strategic goals takes advantage of opportunities by using theorganization’s strengths and wards off threats by overcoming them or by correctingweaknesses.The SWOT analysis requires an impartial examination of the organization and itsenvironment. SWOT analysis participants review markets; competition; technological,political, social, environmental issues, and economic trends; marketing and distributionsystem; research and development (R&D) status; reputation; and resources includingfinancial, availability of labor, computing, facilities, employee competencies andcredentials, inventories, and management skills. The SWOT team categorize this datainto strengths, weaknesses, opportunities or threats. Sometimes, information can be 51
  52. 52. considered both a strength and a weakness. Based on this analysis, managementcreates strategic goals as illustrated in Figure 2-1.Middle managers develop tactical goals to meet near term demands. Typical tacticalgoals might include increasing the dollar volume of sales; to reduce fixed costs; toincrease the number of pounds of material produced, to increase enrollment; toincrease worker productivity. Following the establishment of general goals, managersdevelop a plan to establish objectives to achieve a desired result.Objectives represent observable and measurable results that contribute towardsmeeting the general organizational goals as shown in Figure 2-1. They are measuredin terms of what, when, where, and how much. Objectives describe conditions that willexist after the work is performed. In many organizations, managers establishobjectives. In others, the people doing the work participate in setting objectivesrecognizing that approval of the objectives rests with the immediate supervisor ormanager. Typical objectives includes challenging a sales person to increase the salesof books in Bergen County, New Jersey from $5,000 per month to $8,000 per month bythe end of the year or demanding that an office reduced its mobile telephone costs inthe Fairfield County, Connecticut area from $5,000 per month to $3,000 per month bythe end of the first quarter. Organizations use the acronym SMART to help establishobjectives. Specific - Identify a single task. 52
  53. 53. Measurable - Establish a measurable indicator of progress.Assignable - Make the task assignable to someone for completion.Realistic - State what can realistically be achieved with budgeted time and other resources.Time-related - State the time duration. 53
  54. 54. Figure 2-1 SWOT Process 54
  55. 55. Sidebar: A Personal SWOT AnalysisOrganizations frequently use the SWOT analysis method to evaluate past efforts anddetermine its future. This process requires a great deal of soul searching. Frequentlyorganizations send their executives away from the office in which they work. They go toa neutral ground devoid of the daily business interruptions. At this retreat, they begina no-holds barred brainstorming session. They agree to consider all ideas with noconsequences or repercussions following the meeting.Each of the participants brings different life experiences to the session. They interpretexperiences differently. They will not all agree with each other. However, allparticipants must agree to respect each other and give one another the opportunity toarticulate their thoughts and perspectives. Many of the comments will be of a sensitivenature. Participants agree to respect information revealed at this meeting and not seekretribution following the meeting. Sometimes organizations cannot really recognize oraccept honesty and genuine open thought.Individuals can benefit from a similar analysis. All of us can profit from an introspectiveself-examination of our lives. Think about your vision. Put it down in on paper. If youhave not thought about it before, do it now. Does it relate to self-satisfaction, marriage,education, money, your career … something else? Then categorize your strengths andweaknesses. Consider the opportunities in your life. Identify the situational threats thatmight prevent you from attaining this vision. Be brutally honest with yourself. Writethem down and don’t show it to anyone else. 55
  56. 56. Now think about several broad actions that you need to take to pursue this vision.Perhaps it involves the development of a certain skill set or a college education or amove to a new location. These are your goals.If you have reached this point, you’ve done the hard part. Only the specific tasksremain. For each of the goals that you identified you have to identify objectives that willassist you in achieving these goals. List the actions that you think are required toachieve the goals. Associate with the tasks, some way of recognizing that you haveaccomplished the task. Each task should have a well-defined result or outcome that willclearly indicate satisfactory completion. Ideally, you should be able to accomplish eachseparate objective within a month or less. It’s too easy to postpone the start ofobjectives that take longer than a month. An overall sequence of objectives may takemany months.You may use the chart in Table 2-1 to assist yourself in developing this personal actionplan. Add more goals if required. Periodically examine your progress toward achievingthese objectives and make needed corrections. 56
  57. 57. Table 2-1 Personal Action PlanPersonal Vision:Goal or Broad-based Endeavor #1:Objectives to Achieve Goal #1: Specific Objective Measured Outcome Time for CompletionGoal or Broad-based Endeavor #2:Objectives to Achieve Goal #2: Specific Objective Measured Outcome Time for CompletionActivitiesActivities are work steps that must be accomplished before a objective or standard canbe achieved. Examples of activities include: prepare a specification, get a specificationapproved, complete a design, purchase a component, or install a telephone.Resources represent the raw material used by the organization to complete activities.Resources include people, money, materials, machine, facilities, information,technology, time, and energy, etc. needed to accomplish activities. People exercise 57
  58. 58. control of an activity by comparing current performance to expected performance intime and making required changes. Many managers create a model for expectedperformance by collecting data for similar previous activities. They record informationabout the resources used to complete the activity for a given level of quality. Thiscompiled data serves as the basis for their estimate of the resources required tocomplete an activity.StandardsExpected performance leads to the idea of standards. The International Organizationfor Standardization (ISO) ( definesstandards as Documented agreements containing technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose. For example, the format of the credit cards, phone cards, and "smart" cards that have become commonplace is derived from an ISO International Standard. Adhering to a size standard such as optimal thickness (0.76 mm) means that the cards can be used worldwide.ISO further states that “International standards contribute to making life simpler, and toincreasing the reliability and effectiveness of the goods and services we use.’ 58
  59. 59. Managers and supervisors usually have a notion as to the resources required tocomplete an activity. The estimate for these resources stems from either aperformance standard based on the organization’s experience or generally acceptedindustry practice. If a standard doesn’t exist then the organization establishes it. As anexample, suppose baseball wants to create a batting standard of performance. Thebaseball industry assembles a committee with outstanding knowledge about batting andimpeccable baseball credentials. This committee meets, creates and adopts thestandard of batting excellence shown in Table 2-2.Based on this standard, we categorize ballplayers based on hitting ability. Table 2-3illustrates the categories as applied to the 1999 New York Yankees baseball team.Each team member is assigned a quality rating. If after using this standard for sometime, the sports community decides that the standard does not reflect their intendedneeds, then the committee members would meet again to modify the standard. Allprofessional communities continually examine and update old standards, and createnew standards as technology and general expectations change. 59
  60. 60. Table 2-2 Standard of Batting ‘Excellence Last Season’s Batting Hitting Ability Hitting Quality Rating Average .326 or higher Outstanding A .301 to .325 Excellent B .276 to .300 Good C .251 to .275 Fair D .250 or Below Poor FThe player must have had at least 150 turns at bat to qualify for a rating. Table 2-3 1999 New York Yankees Batting Averages Player 1999 Batting No. of times At 1999 Hitting Average Bat Quality Rating D. Jimenez .400 20 NR D. Jeter .349 627 A B. Williams .342 591 A D. Cone .333 3 NR O. Hernandez .333 3 NR D. Strawberry .327 49 NR A. Watson .300 10 NR C. Knoblauch .292 603 C P. ONeill .285 597 C R. Ledee .276 250 C C. Davis .269 476 D T. Martinez .263 589 D C. Curtis .262 195 D L. Sojo .252 127 D S. Brosius .247 473 F J. Posada .245 379 F J. Girardi .239 209 F J. Leyritz .235 200 F S. Spencer .234 205 F C. Bellinger .200 45 NR A. Pettitte .200 5 NR J. Manto .182 33 NR T. Tarasco .161 31 NR A. Soriano .125 8 NR R. Clemens .000 4 NR H. Irabu .000 4 NR M. Stanton .000 1 NRR signifies that the ballplayer was not rated due to an insufficient number of times at bat. 60
  61. 61. The baseball batting example may be considered a production standard. Many types ofstandards exist. The size, shape, form, and weight of sporting equipment followprescribed standards. Technical standards exist that define electrical, mechanical, andsoftware interfaces. Standards establish requirements for the composition andstructure of material. Workmanship standards detail methods for evaluating welds,soldering connections, wiring harnesses, etc. Documentation standards clarify theformats used for submitting manuscripts. Standards establish expectations. If theitems organizations use meet established standards and these standards meet therequirements set forth by the customer, then we have confidence that the product orservice will be adequate. Independent organizations such as the U.S. Military, U.S.Department of Agriculture, IEEE, ANSI, Software Engineering Institute, UnderwritersLaboratory, and the International Organization for Standardization (ISO) publishstandards for a variety of applications.Policy, Process, Procedure, RuleOrganizations use several other common organizational terms. Policies are broadguidelines created to help the organization achieve its plans. A process is a method ofreaching a desired outcome within an organization. Davenport (1993) defines aprocess as "a structured, measured set of activities designed to produce a specifiedoutput for a particular customer or market. It implies a strong emphasis on how work isdone within an organization." Davenport & Short (1990) define a business process as"a set of logically related tasks performed to achieve a defined business outcome."They state that processes have two important characteristics: (1) they have internal or 61
  62. 62. external customers, and (2) they cross department boundaries. Recall that a person orgroup delivers a product or service. If the delivery of this product or service goes tosomeone within the same organization, we refer to that person or group as an internalcustomer. A person or group performing the work that is unaffiliated with the buyer ofthe product or service corresponds to an external customer. Procedures outline thesteps required to achieve a goal. Rules are definite, specific instructions. Standards,policies, procedures, and rules are necessary to implement plans. As shown in figure2-2 policies created by senior management establish a process. Managers createprocedures to implement the process. Rules are the specific detailed instructions thatsupport the procedures. 62