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Case Translation:

In a large ODM (Original Design Manufacturer) company for information products, the manufacturing department
led by Deputy General Manager Wang is organized both by function, including materials, quality assurance, design,
processes, R&D, and administration, as well as by "profession." For stable major customers, there are long-term and
stable project teams and personnel. For specific product orders, there are more temporary project teams formed.

The latter (second type) is when the company receives an order for a product with specific specifications from a brand
company, a project team is formed by pulling relevant personnel from various functional departments. These personnel
work together exclusively on this project, and once the project is completed, they return to their original departments
or are assigned to other projects. Usually, a project lasts from four to eight months. The direct supervisor for the second
type of projects is Associate Manager Zhang.

Information products face intense global competition, with rapidly changing demands and uncertainties. Although
they are "orders," the quantities are highly unstable, with orders continuously placed based on market conditions and
brand companies' marketing strategies. "Rush orders" are also common.

The company has excellent performance in quality, price, and delivery, so its business is growing rapidly. With the
industry's good prospects, there are more and more "professions," and project teams are continuously being established.
A few months ago, the company received an order from a major customer and set up a new project team (second type)
called "Project X." Since all experienced project managers were already assigned, Associate Manager Zhang promoted
an outstanding PM, Mr. Lin, from the R&D department to be the project manager. As usual, personnel from various
functional units were assigned to support the project, including Section Chief Li from the materials department.

Section Chief Li was also newly promoted and led a team of ten staff members (colloquially called "project handlers").
Their main task was to place orders or chase orders with component suppliers in a timely manner based on the order
progress (the company already had a good MRP system). Among these ten project handlers, many were new
employees.

In the past few months, Associate Manager Zhang received some customer complaints forwarded from the business
side regarding the on-time delivery of Project X. The situation seemed to be getting worse, and Project Manager Lin's
improvement efforts were ineffective. Last week, Zhang formally discussed this issue with Lin, who pointed out that
it was due to Section Chief Li's inadequate material preparation, leading to delayed deliveries. To understand the
situation, Zhang also inquired with Section Chief Li, who complained that Lin's excessive review caused a high
turnover rate among the front-line staff (project handlers) under Li, resulting in a general lack of expertise and
inadequate material preparation. Moreover, many suppliers (numbering in the hundreds) also supply to competitors,
and in the scramble for materials, these inexperienced staff could not compete with other companies or even other
projects within the company.

After understanding the situation, Zhang went back to Lin for verification. Lin said he had to review personally
because he could not fully understand the facts from Li, and Li's front-line staff were irresponsible. Sometimes, when
it was time for production, the materials were not ready, but they still left work on time. If Lin did not frequently
intervene and review, production line stoppages would occur more often.

Zhang felt that the next step seemed to be to talk to some "project handlers" to find out the real problem.
1. Comments on management style of supervisors at all levels and suggestion:
a. Deputy General Manager Wang
• Emphasis on greater stability for long-terms project and flexibility
• However, there will be more inexperienced member in the second team type created for
temporary specific projects since they are not used working in these streamlined of
profession.
Suggestions: The latter type of team project should have incorporated experienced and
inexperienced members collaborate together so they will have clearer direction in the
process of team project
b. Associate Manager Zhang
• Seems to have an open communication style, willing to listen to different perspectives
from Lin and Li.
• However, he appears to be reactive rather than proactive in addressing issues, only
stepping in after customer complaints arise.
Suggestion: Implement regular progress review meetings with project teams (can be
weekly, or monthly) to identify and resolve issues earlier before the customers complain
c. Project Manager Lin:
• Hands-on approach, willing to personally review and intervene when needed.
• However, his micro-management style and excessive review may be demotivating and
pressuring the front-line staff, leading to high turnover. It also may concern Section Chief
Li direct responsibilities after all.
Suggestion: Empower team members by providing clear guidelines and targets, but also
trust them to execute. Focus on coaching and development.
d. Section Chief Li:
• Appears to have a more laid-back and relaxed management style, relying on front-line
staff to take responsibility.
• However, he may be passing the blame to Lin instead of taking accountability for his
team's performance. (he also blames the project handlers)
Suggestion: Take an active role in coaching and developing the skills of the new front-
line staff. Collaborate with Lin to find solutions rather than pointing fingers.
e. Front-line Staff (Project Handlers):
• Details on their inexperienced traits which is unqualified for working in the company,
might be associated with high turnover suggests issues with engagement and
development.
• Irresponsible unachieved targets but already home early
Suggestion: Provide clear career paths, training opportunities, and recognition programs
to improve retention and performance.

2. Could you please comment on the entire company’s strategy, organizational design, renewal
requirements, decentralization methods, personnel appointments and Do you have any comments
or suggestions on the reward and withdrawal system?
a. Strategy and Organizational Design:
• The matrix structure with functional and project-based teams allows for flexibility and
efficient resource allocation.
• However, the temporary nature of project teams may hinder knowledge transfer and
continuity, which led to inexperienced members to the project of the team
Suggestion: Implement a robust knowledge management system to capture learnings
from projects and facilitate smoother transitions. Experienced and inexperience members
need to collaborate together to give them some guidance to do both long-term and
temporary team projects as well.
b. Renewal and Decentralization:
• The company seems adept at forming new project teams rapidly to respond to market
demands, demonstrating agility.
• However, centralized decision-making (e.g., appointing project managers) may slow
down responsiveness.
Suggestion: Explore a more decentralized approach, empowering team leads to make
personnel decisions within their projects, fostering ownership and accountability. Create
a weekly and monthly target, and Section Chief Li and Zhang should collaborate together
instead of passing the accountability to each other.
c. Personnel Appointments:
• Promoting from within (e.g., Lin's case) is commendable, recognizing and rewarding
internal talent.
• However, the criteria for promotions, especially to leadership roles, are unclear.
Suggestion: Establish clear competency frameworks and leadership development
programs to groom and prepare future leaders systematically. The HR department should
review back the company applicants’ qualities for hiring.
d. Reward and Withdrawal System:
• Details on the company's reward and withdrawal system are lacking in the provided
information.
Suggestion: Implement a comprehensive performance management system that aligns
individual goals with project and organizational objectives, providing clear targets,
regular feedback, and fair rewards/consequences.

✓ There is a scenario where the latter project teams asked the first project team to provide them the
materials, but they reject, so the latter team project can ask for the material supplier’s contact
information (external resources) to provide them the materials directly.
✓ What factors that triggers to go to the other team to help with the “急單”?
o Because the team is temporary in the present, there’s no incentive that they will be
motivated to do the job because they will go back to their original job after the project is
finished. Instead, the management should make more stable team including experienced
and inexperienced member in a group and stabilized them from time-to-time, and also to
provide them clearer guidance on how to do the job properly.

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