Final Project Week 8

8/10/2019 Final Project Week 8

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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


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Table of Contents

1. MANAGEMENT SUMMARY 3

2. PROJECT BACKGROUND 3

3. PROJECT OBJECTIVES 4

4. THE ORGANISATIONAL DESIGN PLAN 5

5. STAKEHOLDERS IDENTIFICATION AND COLLABORATIVE ADVANTAGE INMANAGEMENT 8

6. CONFLICT RESOLUTION PLAN 9

7. BEHAVIOURAL ISSUES AND SOLUTIONS FOR MERGING RYOICHI 11

8. LEADERSHIP MANAGEMENT AND TEAM MEMBER STRESS 14

9. CODE OF ETHICS 16

10. CONCLUSION 18

11. REFERENCES 19


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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


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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 PlanThrough 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;


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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-de-

Castro, 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).


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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):


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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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Appendix A Project Organisation Structure

CEO

R&D

External

Academics

S a f et y R e g ul a t o rs

O pe ra o ns

T e s n g L a b o ra t o r y

E n d C l ie n t

Sales & Market

A d mi n is t ra o n

H u m an R e s ou r c e s

Finance

Project

Management

Procurement


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Appendix B Stakeholders Interface Design

S tu ra ta I nc

Shareholders

CEOJ e ff Hof fm a n

External

Academics

CTO

ONeal

PM & COOA l ex R i be i ro

V P A dm in

Tamaguchi

Safety

Regulators

Workers

R&D

O pe ra o ns Laboratory

L og is c s

Engineering

includingRyoich

Sub-

suppliers

Final Project Week 8

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