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Alex Ribeiro

Student ID : H00035087
Module KGMT-683
Behaviour & People Management

FINAL MODULE PROJECT


WEEK 8
STURATA INC STABLISHMENT

Author: Alex Ribeiro Project Manager

Table of Contents
1.

MANAGEMENT SUMMARY

2.

PROJECT BACKGROUND

3.

PROJECT OBJECTIVES

4.

THE ORGANISATIONAL DESIGN PLAN

5. STAKEHOLDERS IDENTIFICATION AND COLLABORATIVE ADVANTAGE IN


MANAGEMENT

6.

CONFLICT RESOLUTION PLAN

7.

BEHAVIOURAL ISSUES AND SOLUTIONS FOR MERGING RYOICHI

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8.

LEADERSHIP MANAGEMENT AND TEAM MEMBER STRESS

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9.

CODE OF ETHICS

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10.

CONCLUSION

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11.

REFERENCES

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1. Management Summary
The Project manager has a mission to establish Sturata Inc. as a
business organisation within a limited period of ten months. This
work describes the empowering methods taken by the organizational
team and joint venture partners to develop a business by further
investment and the creation of a business plan, thus ensuring the
successful management, development and delivery of information
system projects. The strategy undertaken and controlled by the
executives and executed by the project manager and his team,
keeping schedule in time and on budget, will be further described,
ethically adapted to the business partners and presented in the
fulfilment of a development of a new customized warehouse system
and autonomous mobile vehicles.

2. Project Background
The creation of a new product requests a measure of how success can
be achieved at the door of every organization. Sturata Inc. reinforces
this idea by identifying the dimensions to the success of its new
warehouse system and related products and by capturing the
financial success as well as portraying the degree to which the new
product opens new opportunities and by expansion into new market
areas (Cooper & Kleinschmidt, 1987).
The establishment of a new company was initiated by Dr Ryan ONeal
in conjunction with Jeff Hoffman; Dr ONeal developed an

improvement of traditional warehouse systems and Jeff Hoffman


provided sponsor funding. In response to the challenges posed by the
project, the mentioned executives agreed on the need for project
management skills in order to lead the start-up and development of
the company.
Within the timeline proposed, certain tasks required close attention
and priority measures.
The identified obstacles involved include:
1 - The set up of the project management team
2 - Finalization of research work
3 Registration and legalization of the company
4 Homologation of safety regulations to allow the work of human
and mobile vehicles in same environment
5 Set up of a supply management system
6 Testing of new products in a live warehouse environment

3. Project Objectives
The Project objectives, created by the executives and project
manager, were reviewed and extended to a necessary validation
cycle and healthy negotiation through the support of the project team
in order to fit the organizations philosophy and strategy (Meredith &
Mantel, 2009).
Setting up the objectives of a project is SMART (Specific, Measurable,
Achievable, Realistic and Time-lined) (Tuner & Mller, 2003) and
requires the participation of the project team, application of
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knowledge, skills and tools and techniques to project activities


(PMBOK, 2013, pp.11).
The objectives of the project constitute:
Completion of the project and launching a committed set of
products to the US market within duration of 10 months.
Development of a suitable organization structure and
appointment of a Chief Financial Officer (CFO) before the
recruitment process of team members takes place.
Initiate the recruitment process of team members as planned
in the first week and employ the first team members to
contribute to the planned schedule.
Identify the individuals that will contribute to the project
(stakeholders) and communicate with them effectively
throughout the project (Sanghera, 2010, pp. 16).
Certification

of

safety

and

quality

regulations

before

commencement of production.
Establish a business in Vermont, USA and securing legal advice
support before initiation of project.

4. The Organisational Design Plan


Through the advance of the industry and improvement of technology,
companies have been forced to rapidly and constantly improve
themselves through self-modification (Stare, 2011). The growing
quantity and variety of frequently changing factors in the
environment are submersed within project organisational structure;

culture and style that as briefly explained by the PMBOK (2013) are
likely to influence the project.

The selection and implementation of a cohesive, efficient and formal


structure by Sturata Inc is considered an important step and needs to
be fully investigated based on the shared vision, objectives, policies,
methodology and level of maturity (Ibid).
There are several environmental factors that would influence in the
establishment of the organization and further analysis would need to
be carried out. The environmental factors include (Sanghera, 2010,
pp. 37):
The organizations culture and structure
Legal Requirements, product standards and quality standards
relevant to the project
Skilled human resources
Infrastructure
Marketplace conditions
Internal regulations and guidelines
Management information systems
Risks tolerances
Work authorization systems
The level of authority that the project manager enjoys and the culture
that the company adopts is denoted by the organizational structure
of which exist several variations and combinations structured in one
of the three ways: 1) functional, 2) projectized, or 3) matrix (Hedman
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& Mangano, 2011, pp.13-22). Sturata Inc initially has set the
organization as per functions accorded by executive managers and
kept in a hierarchy form until recruiting and job positioning of
important key members have been finalized. Although being a
hierarchy unit, it is not so easy to imitate due to the communication,
cooperation and integration between different members. (Martin-deCastro, 2006). With the achievement of the first milestone, leadership
will play an important role in support the organization to transform
into a horizontal structure that will (Esturgut & Tamer, 2009):
Reflect in the beliefs of the leader to institutionalize the
organizational vision and operational aims,
Embody transformation qualities and share among individuals
in Sturata Inc,
Improve quality applications towards processes and product,
Improve human resources performance,
Achieve team member and client satisfaction and social pace,
Facilitate communication towards changes
Make decisions in a faster and reliable way
The formal horizontal organizational structure that Sturata Inc. will
become can be found in Appendix A.

Transformation leaders,

through the reforming of a new structure, reduce bureaucratic


process and help team members increase their training, talents and
contributions to improve the organizations prospect (Ibid).

5. Stakeholders identification and collaborative advantage


in Management

The process followed to achieve the goal of a customized warehouse


system also depends on the organization of the human resources,
communication, leadership style of the project manager and his
attitudes among the team.
The stakeholders involved in the Sturata Inc establishment, play an
important role to the achievement of success and need to be
identified during early stages. The project manager, in order to juggle
various conflict demands by the internal and external stakeholders
will develop realistic assessments early in the project and identify
the principal stakeholders and their agendas (Meredith & Mantel,
2009, pp.29).

Continuation in interview the stakeholders will play

an essential part in verifying that all works and processes, such as


certification of safety regulations, are running according to the plan.
Stakeholders have something to gain or lose in the project and fall
into 2 categories: positive stakeholders that see the success in
meeting all requirements and negative stakeholders who create
disadvantages by increasing the project risks (Ibid).
The project manager with exemplary organizational and personal
skills integrates the resources and expertise of one organization with
that of other, in this case the Ryoichi Company in Japan, by creating a
win-win-win situation through collaborative ways and strategy as
illustrated by Hosseinipour et al. (2012).
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These skills consist of (1) Proper communication, (2) Negotiation


manner, (3) early identification of problems and quick solutions and
(4) Ability to influence individuals or groups to perform without
necessary authority over them (Sanghera, 2010, pp.18-19).
The achievement of integration requires an increased attention level.
The interface diagram which identifies the stakeholders in the
project is illustrated in Appendix B.

6. Conflict Resolution Plan


Having more than one person involved in a project and forming a
team creates the potential to have a conflict. Desires, needs and goals
might be incompatible resulting in long term problem solving
(Sanghera, 2010). In Sturata Inc., just as in any other organization,
conflict is inevitable and can easily create environmental situations.
The occurence of conflict in a work environment, especially in an
international area such as in the case of Sturata Inc. with off-shore
contractors like Ryoichi and academic researchers from Europe and
USA, can be varied and aggravate the situation causing (1)
personality clashes, (2) stress, (3) heavy workload, (4) poor
leadership, (4) lack of openness, (5) lack of role clarity or (6) poor
performance (Bus, 2009, pp.12). The management of conflicts places
the Project Manager in the precarious situation of having to analyse
and select a conflict resolution mode. These resolution modes include
(Kezner, 2009, pp. 304-306):

1. Confronting both parties with different visions to work through


their disagreements;
2. Searching for solutions so both parties leave with some degree
of satisfaction;
3. Emphasizing areas of agreement and de-emphasizing areas of
disagreement;
4. Avoiding the problems and people that have raised problems
and
5. Competing with others that have raised the conflict.
Such cases were identified in the executive team, between Dr Ryan
ONeal and Jeff Hoffman, in the decision of the acquisition of Ryoichi,
an experienced Japanese company that holds contract works in the
field. The potential conflict was regarding whether Ryoichi would
present a benefit in operating as a design and development centre. To
follow with such decisions, the Project Manager proposed the
following procedure (Ibid):
1) The project manager would establish interest in participating
in the discussion
2) Set up a one-to-one conversation with Dr Ryan ONeal and Jeff
Hoffman to understand their views and considerations if the
decision to buy or contract Ryoichi would be taken
3) Define the potential trigger for problems and collect enough
information about Ryochi, such as running costs for the new
off-shore business, transitioning the companys focus to only
on

the development of the product, which additional

opportunities Ryoichi could offer and alternative options in


subcontracting their services.

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4) Prepare alternative solutions in both cases using SWOT


analysis for best choice
5) Set the appropriate atmosphere to call both parties together,
present the alternative idea to be implemented and maintain a
give-and-take attitude
6) Keep a register of such conflicts for further conflict realization.
The Conflict resolution plan will be used as a good chance to
acquire valuable personal and professional knowledge,
experience and bring to the surface underlying problems that
would affect the project life cycle more severely if revealed
later in the project procedure (Ohlendorf, n.d.).
Another important role is to keep communication in a professional
manner; the good negotiations to a final decision between Dr Ryan
ONeal and Jeff Roffman were finalized with such an attitude and
contributed to an agreement by both parties in acquiring Ryoichi.
Maintenance of control in how people work, interact and the effective
behavioural elements into the structure and process; motivate and
develop productivity (Wong, 2007).

7. Behavioural Issues and Solutions for merging Ryoichi


With market changes occuring rapidly every day, the need to achieve
competitive and economical resources at same level of quality and
expertise requires a hunt through another geographical areas
(Anbari et al., 2003) as happened to Sturata Inc. The incorporation of
Ryoichi as part of the design and development process of
autonomous mobile systems will reflect in basic problems related to

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culture differences and dimension (relations between people,


motivation orientation and attitudes toward time) that teams in
Sturata Inc. and Ryoichi will have to cope with and for which
solutions will be taken to achieve the same goal.
The step to be initially taken by the executive management in control
such behaviour issues should be divided in 3 stages: Pre merging,
during merging and post-merging (Steven et al. 2000).
Pre Merge Phase
Decision taken by the executive management in merging Ryoichi is
made, but without any public announcements or legal issues taken in
place. Dr. Ryan ONeal, Jeff Roffman, the Project Manager and
relevant managers should collaborate and map the plan of actions,
which needs to take in consideration the culture factor. Ryoichi,
being a Japanese culture, holds different aspects and behaviour
attitudes important and would need to have their level of
acculturation measured, developed by Berry (1987), and identify
best approach to prepare employees to accept the fact.
Merging Phase
Having a plan in hand is not enough of a contingency method to
execute a merge and a change of culture successfully. The executive
management should officially inform staff of the situation with open
and honest communication. Keeping employees better informed and
developing cohesive groups, enhances the opportunity to handle the

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disequilibrium of change in the organizational structure, reduce


stress levels and lack of trust (Smye & Grant, 1989).
Post- Merging Phase
One of the main important issues after merging is to manage new
culture and find common ground in between team members who
might develop a perception for fear of taking risks, raising sensitive
subjects, disagreements and causing conflicts.
The plan to merge Ryoichi with Sturata Inc. and move to a design and
development facility would be directed via the following actions
(Miller & Fernandes, 2009):
1) Make culture as the main part of the change management
2) Identify and report in both organization those individuals that
own corporate culture to represent the integration process
3) Keep in cultural work focuses on the tangible and the
measurable
4) Have consideration of the strength that both existing cultures
provide, such as Ryoichi with expertise in development and
design the required product and Sturata Inc. with the potential
manufacture, test and accommodation of the market with
faster results.
5) Implement fast decision-making processes that are not
hampered by culture differences

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6) Make Sturata Inc. brand attractive in terms of career


opportunities, rewards, and the sense of identify that it offers
to acquired employees.
7) Attribute those individuals with culture change knowledge and
experience in the groups that define the key interfaces in the
new organizational structure.

8. Leadership Management and Team member Stress


Trough the project life cycle, there are numerous factors that would
cause stress to the project managers and related humans during the
setting up of the Sturata Inc. (Meredith & Mantel, 2009, pp. 130). The
use of poor leadership by the project manager can increase the stress
of individuals in the project in many ways possible not having much
reverting solution for the situation. In other hand stress can also
represent a benefit if used under certain amount such as meeting
deadlines, arriving at work on time or finishing a certain task in the
given time.
The project manager must with the appropriate leadership style to
identify the type of stress and learn how to control the situation.
Excessive stress can influence productivity, health and emotion
(Mirela & Madalina, 2011). Project managers and related managers
are subjected to stress due to several different facets of their jobs and
manifest itself in a variety of ways (Kezner, 2009, pp. 290.292): (1)
acting tired, (2) feeling depressed, (3) being physically and (4)
emotionally exhausted, (5) burned out and (6) unhappy, (7) feeling

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trapped, (8) worthless, resentful and disillusioned about people, (9)


feeling hopeless, (10) rejected and (11) anxious.
The approach defined by the Sturata Inc. to combat or reduce such
types of stress types and levels, regardless of the personality and
personal style are based on the eight MBTI attributes and proactive
approaches (Flannes, 2010):
MBTI
Extravert: Interact without over extend
Introvert: Withdraw at first, but dont internalize
Sensing: Do it now remembering the big picture
Intuition: Search of optional doors, but stay practical
Thinking: Analyse also taking feelings in consideration
Judging: Plan without being rigid
Perceiving: Act flexible and closure
Proactive approaches:
Detach or dissociate: Look for appropriate pleasant images
acting discreetly while unpleasant events occur.
Monitor conditional thinking: Focus in present state in case of
stress that may happen asking what if questions to your
overcome future actions.
Develop potent conflict resolution skills: Keep the ability to
adapt to situations of under or over reacting situation my
happen during the project.
Know when enough is enough, and stay away from debating:
Learn when is enough to debate your vision, even when your
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right, it can be a matter to diminishing returns to continue to


be seen as right.
Look for a paradoxical component in the situation: Find
paradoxical cognition that you can hold onto to ease negative
events at time of occurrence, leaving stress and worries in
perspective.

9. Code of Ethics
The creation of a Code of Ethics and Professional Conduct will be
carried out by Sturata Inc. according to the Project Management
Institute (2006) to help individuals become better practitioners and
establish a profession-wide understanding of appropriate behaviour
among work colleagues and employees, make decisions during
difficult situations to avoid compromising the integrity and values of
Sturata Inc.
Sturata Inc. Code of Ethics
General Employee Conduct
Employees shall adhere to this code of ethics and conduct themselves
in a professional manner at all times, and shall comply with all
applicable laws and regulations.
Conflicts of Interest
Conflicts of interest, or potential conflicts of interest which may occur
as a result of an employee of Sturata Inc. is to be declared to the

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Organization and appropriately resolved in conjunction with the


employees superior. Employees of Sturata Inc. are to avoid using
their positions for personal advantage.
Outside Activities
Employees are encouraged to participate in outside activities that
will improve the quality of their work, broaden their knowledge and
improve the public relations of Sturata Inc. However, if an activity
would negatively impact the employees performance or the
companys reputation, they are not to engage in such an activity.
Relationships with Clients and Suppliers
Employees should strive to maintain a professional relationship with
clients and suppliers of Sturata Inc. In their dealings with clients and
suppliers of Sturata Inc, employees should be careful to avoid
creating the impression that the performance of their duties is
influenced by their personal relationships or investments in those
parties.
Gifts and Entertainment
Employees of Sturata Inc. must not accept gifts or personal favours
that could in any way influence the performance of their dutoes, or
business decisions of Sturata Inc. Employes must also not accept any
form of preferential treatment to avoid being in put in a position
where they are obliged to reciprocate the preferential treatment.
Organizational Records

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Employees must maintain accurate records of all external


communications and business activities of Sturata Inc. Employees
must not make any false records or engage in false record keeping or
communications of any kind.

10. Conclusion
The Sturata Inc. project, as many other complex projects, presented
certain difficulties and conflicts that would be contained inside the
triple constraints. Requirements were defined without a possibility
to accept any lack of options. Time frame was limited to 10 months to
achieve promised participation in the business market followed by
events such as conflicts in acquiring Ryoichi and difficulties to deal
with the transference of job role under a new organizational culture.
The creation of the Sturata Inc. organization is successful possible
due to the choice of project base structure, having as a mentor in
relation to all resources and process, the Project Manager.

The

project manager should contain the appropriate experience and skills


to deal with the human factors that individuals may develop during
the project cycle and realign their performance for the sake of the
project success.

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11. References
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(2003) Cross Cultural Differences and their Implications for Managing
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leadership
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Hosseinipour, S. J., Jamehshooran b. G. and Boroomandalipoor, N. R.


2012. "The Collaborative Advantage in Management" (Online).
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Jersey.
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Appendix A Project Organisation Structure

CEO

Project
Management
Procurement

External
Academics
R&D

Opera ons

End Client

Safety Regulators
Tes ng Laboratory
Sales & Market
Administra on
Human Resources
Finance

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Appendix B Stakeholders Interface Design

Sturata Inc
Shareholders
CEO
Jeff Hoffman

PM & COO
Alex Ribeiro

External
Academics

CTO
ONeal

VP Admin
Tamaguchi

Workers
Safety
Regulators

R&D
Engineering
including
Ryoich

Subsuppliers

Opera ons

Logis cs

Laboratory

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