This book helps me out so much..Must Read

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.net
All material copyrighted 2001. Material may not be duplicated without permission in
writing from H. Hoffman.
1

2. TABLE OF CONTENTS
Page
Preface 11
Acknowledgement 13
Dedication 13
CHAPTER 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 35
CHAPTER 2 44
The Organization 44
Core Identity 45
Objectives and Goals 50
Strength, Weakness, Opportunity, Threat (SWOT) 50
2

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 68
CHAPTER 3 71
Project Management Organizational Overview 71
Why Project Management? 81
Project Manager's Responsibilities 83
Organizational Charts 86
Functional Organization 87
Project Management Structure 88
Matrix Organization 89
Line Organization 91
Chapter 3 Questions 97
Chapter 4 100
Management Concepts 100
Management 101
Managers and Supervisors 105
Historical Management Overview 107
Classical Management 109
Human behavioral management 117
3

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 154
Chapter 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. 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 210
Chapter 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. Chapter 6 Questions 249
Chapter 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. 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 306
Chapter 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 333
Chapter 9 335
Quality 335
7

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 380
Chapter 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. 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 407
Chapter 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 451
Chapter 12 461
Epilogue 461
Project Management Perspectives Within the Organization 462
Project Management Career 464
Project Management Social and Technical Skills 465
9

10. Social and People Skills 466
Technical skills 468
Appendix 1 - Typical Employee Performance Appraisal Forms 472
Appendix 2 - Ethical Codes of Selected Professional Organizations 484
Appendix 3 - Wilderness Survival Answer And Rationale Sheet 491
AppENDIX 4 – ISO 9000 QUALITY MANAGEMENT PRINCIPLES 494
REFERENCES 502
10

11. PREFACE
I know I could never forgive myself if I elected to live without humane purpose, without
trying to help the poor and unfortunate, without recognizing that perhaps the purest joy
in life comes with trying to help others. – Arthur Ashe
<>
During the first year of my tenure as the Dean of Technology at Technical Career
Institutes (TCI), I spoke with human resource personnel from more than twenty
companies that hired the college’s graduates. Each company praised the technical
abilities of the TCI students, but they indicated that the students required improvement
in their social skills and understanding of an organization’s operation. The department
chairs and I discussed the type of course that would help our students and the outline
for this book evolved. The book reflects my experiences as an engineer, department
manager, and project manager in my 30-year career in industry.
Today medium to large organizations routinely use project managers. Technology
students will likely encounter a project manager in their first job. They may be part of a
project team or if the organization does not use the project manager methodology, they
will meet this person as a supplier or customer. Most undergraduates have little
understanding of how an organization operates or of an organization’s expectations.
Who makes which decisions and why? Who manages the group? How do you get
things done? What does the culture permit? Seasoned employees realize that
employment success depends not only on technical abilities, but also on the ability to
interact well with colleagues and quickly learning the organization’s “ropes.”
This book serves five purposes. First, it introduces students to project based
information technology, manufacturing, and research and development business
environments. Second, the student will learn business and industry's vocabulary,
processes and procedures, and expectations. Third, they will be able to ask intelligent
questions regarding the operation of that organization during a job interview. Fourth,
they will be better able to evaluate different organizational management styles to decide
what is best for them. Fifth, and perhaps most important, the student will be ready to
step into a new job and have some understanding of the organization’s expectations.
To successfully accomplish the first objective, we will examine the project manager's
role. A large number of organizations use the project manager (PM) model to cut
across the entire set of departments in an effort to get a job done on time, within
budget, and without compromising quality targets. Understanding this person's
function will enable the new employee to quickly adjust and contribute to the work
environment.
In the discussions that ensue, ethical questions may arise. This book will familiarize
students with ethical issues that arise in the business and industry context. Questions
11

12. both in the text and at the end of the chapter will promote class discussions and serve
to 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 Project
Management (CAPM) offered by the Project Management Institute. These certification
programs prepare new practitioners for introductory project management positions with
titles such as coordinator, expeditor, planner, project administrator, or project
management assistant.
The viewpoint taken will follow the Project Management Institute’s Project Management
Body of Knowledge (PMBOK). The text material covers many of the topics required by
the CompTIA Project+ examination.
TCI instructors have successfully used the text material for a one-term 45-hour
introductory project management course. Instructors select from the following
sequence 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 tracking
I recommend allocating six-hours to the Microsoft Project software application. During
the first three-hours I introduce the student to the fundamental techniques of preparing
a schedule using this software. We work in a computer laboratory during this session
and 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 people
works 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 prepare
reports and make class presentations. Consequently, I have allotted up to six class
hours to the quality discussion. I lecture for 1½-hours and allocate the remainder of the
time to three person team presentations.
12

13. Many of the quotes at the beginning of each chapter have influenced my thinking over
the years. Others I discovered while doing this research. I hope that it will positively
influence the reader.
Harvey Hoffman
Somewhere between Manhattan and Fairfield, CT on the Metro-North train.
ACKNOWLEDGEMENT
I would like to thank the reviewers of the initial text drafts for their valuable and insightful
comments. TCI teachers, Roy Lau, Pedro Lopez, Gilbert Chan, Steve Maybar, and Dr.
Bert Pariser class tested versions of the manuscript and provided constructive critique
of the work. I am also indebted to the TCI students who suffered through the MOT-200
notes phase and the CD-ROM PDF file. I am grateful for their suggestions, which
helped me a great deal.
Finally, I want to express my appreciation and thanks to Cristina Hernandez of the Art
History department at Mt. San Antonio College and Tony Mattrazzo, a Public Relations
Specialist at the New York State Archives Cultural Education Center for the images that
they furnished for this project.
DEDICATION
I have worked with nontraditional college students for many years. I dedicate this book
to 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 so
good!
13

14. CHAPTER 1
Organizational Expectations and Professionalism
Whether you think you can
or
whether you think you can't ....
You are right. - Henry Ford
<>
Chapter objectives
After studying this chapter, you should be able to:
Understand an organization’s expectations
Understand the components of an employee assessment
Understand the elements of professionalism
Characteristics of the business environment during the 1990s included rampant
technical innovation, a global economic perspective, a free-market, and a requirement
for continuous employee learning. The 2000's began with a 30-year low unemployment
rate (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, and
delayerings occurred due to corporate mergers and reorganizations. These
organizations focused on productivity to ensure quarterly sales growth and regular profit
increases. The economy is cyclical and cooled down in 2001 with telecommunications,
Internet, data processing, dot-com and other companies slashing their workforce. (See
for example Washtech.com Technology Layoffs Watch at
14

15. http://www.washtech.com/specialreports/layoffs_bydate.html.) Unemployment
skyrocketed. Knowledge workers that maintained up-to-date skills kept their full-time
jobs. Others survived on a mixture of part-time and contract work. Those not updating
their 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 external
customers and exists not only to make money, but more to the point -- to make a profit.
Today's corporation requires employees that are responsive to the customer's 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 and
today's employee with those of some years ago.
Today, corporations move quickly through uncharted water, moving in a direction
toward a defined corporate mission, but frequently making seemingly chaotic
excursions from the azimuth. Employees must empower themselves. They must
embark on a lifelong journey that includes updating their skills and pursuing new
opportunities that meet their professional objectives. Maintaining accountability to
yourself increases your value to the corporation. Demanding new work experiences,
requesting challenges, developing new skills makes you a more valuable person to the
organization. Paradoxically, the selfish attitude of looking out for number one makes
you a number one company resource!
15

16. Table 1-1 Forces and Factors Confronting the Corporation and Students
Traditional Today
Corporation 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, turbulent
Employee Specialized talents Broad capability
Dependent Empowered
Comfortable Stressed
Loyal to company Loyal to self
Entitled Accountable
Learn then earn Learn to earn – lifelong learning
Adapted from Goldman (http://www.asee.org/assessments/html/goldman.htm)
Employer Expectations - TACT
Put yourself in the position of a corporate chief executive officer. Suppose your
company 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 of
the merger. Suppose the company has decided to reduce the workforce by 5%. What
guidelines would you propose to your managers to help them decide on the employees
to include in a layoff?
16

17. The acronym TACT representing Technical Competence, Attitude,
Communication, and Teamwork identifies four broad categories of employer
expectations (Figure 1-1). Certainly technical competencies would probably be most
people's first choice on the list of important employee capabilities. Every employee
must 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 guideline
lists technical competence as one of four employee expectations -- attitude,
communication, and teamwork skills complete the set. Employers want a reliable
person who will come to work with a positive, can-do attitude. Following the conclusion
of a task, supervisors and managers expect employees to move onto the next activity
without coaxing.
Some time ago, a newspaper advertised for web masters and web designers with the
following 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 don't 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. Employers will take the zeal and raw talent that a person brings and train them to do the
job, if they show promise.
Business depends on accurate and complete verbal and written communication with
customers, clients, colleagues, subordinates and supervisors. They expect prompt
information transfer so that managers and supervisors remain informed of all major
issues. Customer reports, manufacturing and production difficulties, vendor delays,
engineering problems, and purchasing issues must be quickly documented so that
people take appropriate actions and make timely responses.
The day of the lone wolf is gone. Business and industry work in teams operating with
inter-department groups, cross-functional teams, "tiger teams", "skunk works", joint
ventures, 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 and
compatibly with a diverse mix of individuals. People must respect each other’s gender
and age differences. A diverse workforce provides the wide range of skills and insights
demanded by today's global marketplace. Unprecedented challenges confront
American companies. They must be faster, smarter, and more flexible than the
competition. Companies must take advantage of all of the knowledge inherent in a
diverse workforce and individuals must respond by welcoming the opportunity to
18

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. The
human resource department maintains past employee performance evaluation records.
Examining this data will permit managers to make conclusions regarding the
employee’s potential for contributing to future activities.
19

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. Employee Expectations
People represent an organization's greatest asset. The way they perform has a direct
affect on profitability. Performance reviews and evaluations give employers an
opportunity to shape the development of employees, improve work standards, and
define areas of responsibility. It promotes accountability, and identifies future goals and
expectations.
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 or
written communication that takes place throughout the year between employee and
supervisor. Second the formal discussion between the employee and supervisor that
includes a review of the written results in a periodic employee evaluation report.
The periodic evaluation review represents a communications tool between the employer
and employee. The document informs the employee of the manager or supervisor's
expectations. It provides an opportunity to establish or identify employee goals, and
identifies the assistance that the company can provide to assist the employee in
attaining them (training, education, etc.). If required, the review usually identifies areas
for improvement that will enable the employee to reach a satisfactory level of job
performance. The organization informs employees of its professional expectations at
the 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. salary increases, promotions, and training. The performance review and employee
appraisal measures on-the-job performance and may indicate future job direction. The
review clarifies employee duties and usually summarizes major employee
accomplishments since the last review. Reviews should identify areas for improvement
and recommend methods to improve to improve performance. The supervisor and
employee should discuss training and development needs for both current and future
assignments.
Frequently, employers evaluate new employees more often during the first year than
those employed for a longer term. New employees may receive reviews three months,
six months, and one-year following the date of hire. These reviews encourage
supervisors and managers to closely associate with new employees and understand
their capabilities while clarifying expectations. Longer-term employees may receive
only an annual review.
Examining the employee review forms in Appendix 1 confirms that technical capability
is important, but not the sole criteria for long-term success. Companies value and
measure 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. • 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 employee's salary and salary increase will reflect the employee's total performance
as perceived by managers and supervisors. Selecting people for a promotion -- or a
layoff is a complex decision that depends on a broad range of factors only one of which
is technical competence. Since all companies keep records of these evaluations, you
may recommend that managers use performance evaluations as the basis for
employment decisions. Over time, the employee's complete picture becomes clear and
the company takes action based on the overall performance record.
23

24. The following excerpt from an article that appeared on the web
(http://biz.yahoo.com/rf/000816/l1688665.html -- August 16, 2000) illustrates the
importance 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. ``We're looking for better
ways to serve our customers and add values, so there's 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 operations
FedEx intended to make layoff decisions based on a variety of employee
characteristics. 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 enable
people to advance in the organization.
24

25. Professionalism
The ideas of technical competency, responsibility to clients, customers and employers,
lifelong learning, attitudes and behavior stems from the broad concept of
professionalism. The Institute of Electronic and Electrical Engineers (IEEE) defines a
profession as a learned occupation requiring systematic knowledge and training, and
commitment to a social good. There must exist a specialized body of knowledge
unique to the profession, which should be intellectual in character. It can be developed
by a group of people in the initial stages, but educational institutions must transmit this
knowledge 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 organization's 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. ♦ A well defined and growing body of literature
♦ Refereed (i.e. articles and research requiring peer review before publication)
journals
♦ Service motive
Using these characteristics, the community of people that share common training,
values and skills create a sanctioning or authenticating organization that promotes the
profession.
Dissemination of Information
Every professional organization defines itself by its mission, guiding philosophy, and
unique occupational body of knowledge. Perhaps the dissemination of information is
the primary vehicle used to promote the organization and the profession. Journals
publish peer-reviewed research and development results. Colleagues with similar
backgrounds first read these papers. Reviewers respond to the author(s) with
comments intended to improve or clarify the work. The author(s) make the corrections
and resubmit the manuscript. Papers require up to a year in the review process before
final publication. Monthly magazines offered by professional organizations print articles
of general interest, which do not pass through such an extensive review process. Even
so, it may take from three to six months before publication confirmation.
Frequently the organization distributes a newspaper with current information containing
articles of an ephemeral nature, conference announcements, awards, election
information, and employment advertisements. Editorial comments may appear in the
26

27. newspapers that reflect members' opinions about national political issues that relate to
the organization's mission. Local chapters of national organizations may also publish a
monthly or quarterly newsletter.
Service
Professional organizations have a wide range of activities. While individuals receive
compensation for their work as provided to customers and clients, they seldom receive
payment for service to the profession. Service activities include volunteering for local
chapter or regional activities or supporting national seminar/symposium meetings.
Authors of papers submitted to professional organizations do not receive financial
compensation, but do receive the appreciation and sometimes the accolades of their
colleagues. Professionals serving on accreditation committees that review the quality of
programs offered by educational institutions do so on a voluntary basis. They seek to
support and further their chosen profession. Many companies financially support and
endorse educational programs, seminars and symposiums offered by professional
organizations. They do so to improve the profession and the knowledge of the
practitioners in their employ.
Education
Organizations participate in a process to promote the quality of education and training
received by prospective members and students. As an example, the Institute of
Electrical and Electronic Engineers (IEEE), American Society of Mechanical Engineers
(ASME) and other engineering organizations collaborate under the Accreditation Board
27

28. for Engineering and Technology (ABET) umbrella to improve the education of technical
personnel in engineering and related disciplines. Upon request, ABET representatives
visit colleges offering engineering and technology programs. The team conducts a
detailed review of the program to ascertain that the institution meets minimum
standards 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 an
accredited program are prepared for careers in engineering and engineering
technology. With support from organizations like ABET, professions encourage
institutions to provide education that meets the career’s changing needs, modernize
institutional facilities, employ competent faculty that participate in on-going learning, and
introduce new technology into the courses.
Managing Oneself
"Success in the knowledge economy comes to those who know themselves -- their
strengths, their values, and how they best perform" (Drucker, 1999). We no longer
enjoy the days of job security in exchange for moderate performance and corporate
loyalty. We each must manage our careers to maintain our employability. Perhaps
lifelong education is the most important factor in developing a career-resilient
workforce. Waterman, et al, refers to the new professional as people dedicated to the
idea of continuous learning and as people who "take responsibility for their own career
management. For each individual, this means staying knowledgeable about market
trends and understanding the skills and behaviors the company will need down the
28

29. road." With constant changes in technology, professionals must regularly assess their
skills and take action to upgrade themselves and direct their careers so that they can
function with a maximum of effectiveness. Koonce (1995) advises “ the best way to
stay employed today and in the future is to look upon yourself as being in business for
yourself even if you work for someone else” (p.20).
For the most part, professional employees are engaged in "at will" employment. That
is, the employer can terminate the employee at any time and the employee can likewise
leave 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?" Professionals
must engage in ongoing and lifelong education to enable them to respond affirmatively.
Professional Ethics
Professions want the public to perceive their members as following a principled
standard of behavior in dealing with clients, customers and colleagues. Consequently,
professional organizations define a standard of behavior in the form of a code of ethics
to which members must adhere. Ethic deals with people’s behavior towards others.
Ethics attempts to arrive at acceptable principles of obligation and general value
judgements, which serves to help us determine human actions and conduct that are
morally right, good, and responsible. Several professional organizations' ethical codes
are shown in Appendix 2. A common thread among these ethical codes requires a
practitioner to accept responsibility for actions taken in the conduct of professional
activities. The professional must demonstrate responsibility to the public; the employer,
29

30. customer, client, and colleague; as well as to yourself. The profession requires
practitioners to engage in lifelong continuing education to maintain skills that will enable
them to perform with competence and the exercise of good judgement. Ethical
discussions are particularly relevant with the development of new technologies such as
the Internet and networking computers in the office. Ethical questions continually arise
with regard to product safety; worker safety; privacy in the workplace; employee and
consumer rights; corporation's moral responsibility; obligations of employers to their
employees, employment at will; business's social responsibilities; and corporate self-
regulations vs. government regulation.
During the course of their work, technologists will confront ethical dilemmas. The
decisions you make could quite conceivably affect a user’s health and safety, a
prospective promotion or even your job. Technologist must make a decision even if
situations arise that contain ambiguities and uncertainties. Space shuttle Challenger
engineers’ suspected a safety problem regarding the cold temperature performance of
a gasket on a space shuttle. Failure to act on this issue resulted the loss of lives and a
major setback to the U.S. space program. Automotive engineers suspected the
placement 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. From
time to time, engineers discover deficiencies in a building's structural integrity and
choose not to act because it would breach client confidentiality to report the information
to a third party. Ethical considerations arise if you identify potential conflicts between
your interests and those of your client. Suppose you see hours charging more hours
30

31. than they actually work on a job. Do you report them? Do you do it yourself if no one
would report your indiscretion? Ethical dilemmas frequently confront us and we have
to first recognize it and then decide on a course of action.
Sometimes the questions are not easily resolved and the professional may undergo
substantial inner turmoil in making decisions (figure 1-2). Decisions may result in
significant consequences to the employee's future. Employees have resigned from
their job because of an ethical conflict. Some have lost their job. The federal
government has created the “whistleblower’s” to protect federal employees job after
making a charge involving an ethical question.
As practicing members of a profession, we have responsibilities to a wide range of
people. Employers, customers, clients, and colleagues have concerns and
expectations about the professional's performance and ethical standards. Even in the
sports arena, which is not a profession in the sense that we use it in this book, Michael
Jordan on assuming the position of president of basketball operations at the
Washington Wizards, commented that "It's 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 a
conflict arises in your mind between the employer's requests and demands and the
professional organization's code of behavior review the organization's ethics code and
31

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 Licenses
In an effort to promote quality professional service, some organizations promote
member licensing or certifications by state government or private organizations to
signify member competence in the general discipline or specialty areas. Professional
organizations frequently establish committees that accept complaints from the public
regarding members' performance or behavior. This internal self-policing program has
the power to discipline the member. The results of a disciplinary review may extend
from no action to censure or even to license or certification revocation.
Trades and Crafts
The foregoing discussion does not intend to demean the competency, importance or
quality of trades and craft workers. This community participates in training and
apprenticeship programs. Some trades and crafts have sanctioning organizations that
promote the vocation. A trade emphasizes manual dexterity and physicals skills rather
than intellectual activity. While some trades require a license or certification to practice,
few trade organizations monitor their members and have a code of conduct. Few
vocations, other than professions, monitor the education providers’ program quality
using voluntary service on accreditation committees. Trades and crafts tend not to have
peer-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. words are not synonyms. Plumbers, carpenters, electricians, machinists, auto
mechanics, and cab drivers perform vital services and some in these occupations earn
more than lawyers, engineers, teachers or physicians. While they can be experts in
their discipline, in the strict sense used in this book, we don’t call them professionals.
33

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. Chapter 1 Questions
1) 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) Politician
3) 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. 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 6'4", 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 employee's privately tolerated
"idiosyncrasies" spin out of control, and management must respond
publicly. "In the business world, there's 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 company's
reputation, so they'd 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
"You've got one guy being a cancer time and time again. Eventually, it's
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 Rocker's 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. 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 employer's viewpoint and then from the employee's
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 individual's and a group's 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 SHEET
Here are twelve questions concerning personal survival in a wilderness situation. Your
first 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 have
a minimum of equipment, except where specified. The season is fall. The days are
warm and dry, but the nights are cold.
37

38. <>
After you have completed this task individually, you will again consider each question as
a 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 if
you change your mind in the group discussion. Both the individual and group solutions
will later be compared with the "correct" answers provided by a group of naturalists who
conduct classes in woodland survival.
38

39. Question Your Answer Your Group’s
Answer
1. You have strayed from your party in trackless
timber; 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 register
b. Yell or scream as loud as you can
c. Whistle loudly and shrilly
2. You are in "snake country". Your best action to
avoid snakes is to:
a. Make a lot of noise with your feet
b. Walk softly and quietly
c. Travel at night
3. You are hungry and lost in wild country. The best
rule for determining which plants are safe to eat
(those you do not recognize) is to:
a. Try anything you see the birds eat
b. Eat anything except plants with bright red berries
c. Put a bit of the plant on your lower lip for five
minutes; if it seems all right, try a little
4. The day becomes dry and hot. You have a full
canteen of water (about one liter) with you. You
should:
a. Ration it - about a cupful a day
b. Not drink until you stop for the night, then drink
what you think you need
c. Drink as much as you think you need when you
need it
5. Your water is gone; you become very thirsty. You
finally come to a dried-up watercourse. Your best
chance of finding water is to:
a. Dig anywhere in the streambed
b. Dig up plant and tree roots near the bank
c. Dig in the streambed at the outside of a bend
39

40. Question Your Answer Your Group’s
Answer
6. You decide to walk out of the wild country by
following a series of ravines where a water supply is
available. Night is coming on. The best place to
make camp is:
a. Next to the water supply in the ravine
b. High on a ridge
c. Midway up the slope
7. Your flashlight glows dimly as you are about to
make your way back to your campsite after a brief
foraging trip. Darkness comes quickly in the woods
and the surroundings seem unfamiliar. You should:
a. Head back at once, keeping the light on, hoping
the light will glow enough for you to make out
landmarks
b. Put the batteries under your armpits to warm
them, and then replace them in the flashlight.
c. Shine your light for a few seconds, try to get the
scene in mind, move out in the darkness, and repeat
the process.
8. An early snow confines you to your small tent.
You doze with your small stove going. There is
danger if the flame is
a. Yellow
b. Blue
c. Red
9. You must ford a river that has a strong current,
large rocks, and some white water. After carefully
selecting your cross spot, you should:
a. Leave your boots and pack on
b. Take your boots and pack off
c. Take off your pack, but leave your boots on
40

41. Question Your Answer Your Group’s
Answer
10. In waist-deep water with a strong current, when
crossing the stream, you should face:
a. Upstream
b. Across the stream
c. Downstream
11. You find yourself rim-rocked; your only route is
up. The way is mossy, slippery rock. You should try
it:
a. Barefoot
b. With boots on
c. In stocking feet
12. Unarmed and unsuspecting, you surprise a large
bear prowling around your campsite. As the bear
rears up about ten meters from you, you should:
a. Run
b. Climb the nearest tree
c. Freeze, but be ready to back away slowly
Score:
Number You Have Correct:
Average Score For Your Group (Sum of
individual scores/ number of group members):
Group Score:
Difference Between Group Score And Average:
41

42. Self-check test
Circle 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) Newspaper
2) Which of the following are products?
a) Physician’s diagnosis
b) Life insurance
c) Fruits and vegetables
d) Tire
e) Tire changer
3) What are characteristics of today’s organizations?
a) Stable
b) Specialized
c) Accountable
d) Stressed employees
e) Dynamic
4) 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 capability
5) How often do long-term employees receive formal written employee evaluations?
a) Daily
b) Weekly
c) Monthly
d) Annually
6) 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. g) Institute of Electrical and Electronic Engineers
7) 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 tools
8) 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. CHAPTER 2
The Organization
You miss 100 percent of the shots you never take.
-- Wayne Gretzky, Professional Hockey Player
<>
Chapter goals
After 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 procedures
The word organization is used throughout this book to mean a group of people working
together for common purposes. The group creates a structure in which individuals
cooperate to conduct activities. An organization may have a profit or non-profit financial
orientation. It may consist of voluntary or paid workers or a combination of both. The
organization may originate from the public (e.g., federal, state, local government
agencies) or private sectors. It may have religious or secular purposes. It may consist
of professionals or hobbyists. It may employ people represented by a labor
organization, non-union personnel, or consultants. The organization may exist in a
44

45. local geographic area or have multiple sites around the world. Project management
ideas discussed in this book apply to all organizations. Organizations consisting of a
single independent contractor as well as large international corporations with multi-
million dollar contracts can use the concepts discussed.
Core Identity
An organization’s core identity consists of three items: a mission, a value ideology, and
a vision. Not all organizations think about and intentionally create an identity. If
management does not prepare and articulate a core identity, the corporate culture will
force an identity to bubble up and surface. Lacking leadership, the identity that evolves
may or may not inspire and guide the employees in the direction that management
prefers.
Mission: The mission statement explains the organization's purpose. It is a statement
of why the organization is in business. The mission is a raison d'être (reason for
existence), not a goal or a business strategy. The mission statement serves as the
basis for establishing the organization’s strategic objectives. David Packard described
Hewlett Packard's 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 company's
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. 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 doesn't exist to make electronic test and measurement equipment but
to make technical contributions for the advancement and welfare of humanity. This
mission is not time dependent. It will last for as long as Hewlett Packard’s senior
management 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. 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.
Reader's 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 value
3Com: 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. 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 organization
together as it grows, decentralizes, diversifies, expands globally and develops
workplace diversity" (Collins & Porras 1996). These represent the values and belief
systems underlying the company. Core values will not change over time. The Walt
Disney Company is famous for its values of imagination and wholesomeness. Hewlett
Packard emphasizes a respect for the individual and a commitment to community
responsibility. Merck's core values include corporate social responsibility, honesty and
integrity, and profit from work that benefits humanity. Sony's values include the
elevation of the Japanese culture and national status, being a pioneer -- not following
others, doing the impossible, and encouraging individual ability and creativity. The
organization's core values should be so fundamental that the company should follow
them 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 would
look like. It can be likened to '… an organizational dream -- it stretches the imagination
and motivates people to rethink what is possible [Belgard, Fisher, & Rayner 1988].'
48

49. Martin Luther King's most famous speech is literally labeled, I have a dream, because
he elucidated his vision of a nonracist America" (Jick 1989). The vision represents
something the organization aspires "to become, to achieve, to create -- something that
will require significant change and progress to attain" (Collins & Porras 1996). The
Microsoft vision is " A computer on every desk and in every home, all running Microsoft
software in every computer." This is certainly a lofty ideal. In the 1960’s, everyone
knew and understood the National Aeronautics and Space Administration's (NASA)
mission -- Get to the moon and back before the end of the decade. Does NASA have a
vision today? Do you know it? No? Perhaps that is part of the reason NASA has
funding problems in the congress.
Vision statements may incorporate four elements: 1) customer orientation, 2) employee
focus, 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 be
powerful enough to engage all those in the organization to willingly align themselves in
the 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. Know the Company's Core Identity: Before joining an organization investigate its core
identity. Ask questions and make certain that you feel personally comfortable with the
organization. Confirm that it shares your values and purpose. Try to ascertain that the
organization accepts a diversity of people and opinions. When joining an organization,
don't expect to create a new core. If the core values are compatible with your values
then press on. If not, look into another organization. Sometimes you cannot determine
whether employees practice the core values described in the company’s literature. If
after joining the organization you discover a value gap exists with which you cannot live
then look for a new opportunity.
Objectives and Goals
Once the organization establishes the fundamental elements of mission, values, and
vision, the employees can establish and pursue objectives and goals. The
organization’s goals represent a general statement of purpose and direction. They do
not include the setting of specific targets (objectives). Goals may be divided into
strategic (long-term) and tactical (short-term) categories. Upper management
determines long-term strategic goals that will guide the organization over a longer
period – 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. A SWOT analysis helps find the best match between external trends (opportunities and
threats) 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 the
organization’s strengths and wards off threats by overcoming them or by correcting
weaknesses.
The SWOT analysis requires an impartial examination of the organization and its
environment. SWOT analysis participants review markets; competition; technological,
political, social, environmental issues, and economic trends; marketing and distribution
system; research and development (R&D) status; reputation; and resources including
financial, availability of labor, computing, facilities, employee competencies and
credentials, inventories, and management skills. The SWOT team categorize this data
into strengths, weaknesses, opportunities or threats. Sometimes, information can be
51

52. considered both a strength and a weakness. Based on this analysis, management
creates strategic goals as illustrated in Figure 2-1.
Middle managers develop tactical goals to meet near term demands. Typical tactical
goals might include increasing the dollar volume of sales; to reduce fixed costs; to
increase the number of pounds of material produced, to increase enrollment; to
increase worker productivity. Following the establishment of general goals, managers
develop a plan to establish objectives to achieve a desired result.
Objectives represent observable and measurable results that contribute towards
meeting the general organizational goals as shown in Figure 2-1. They are measured
in terms of what, when, where, and how much. Objectives describe conditions that will
exist after the work is performed. In many organizations, managers establish
objectives. In others, the people doing the work participate in setting objectives
recognizing that approval of the objectives rests with the immediate supervisor or
manager. Typical objectives includes challenging a sales person to increase the sales
of books in Bergen County, New Jersey from $5,000 per month to $8,000 per month by
the end of the year or demanding that an office reduced its mobile telephone costs in
the Fairfield County, Connecticut area from $5,000 per month to $3,000 per month by
the end of the first quarter. Organizations use the acronym SMART to help establish
objectives.
Specific - Identify a single task.
52

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. Figure 2-1 SWOT Process
54

55. Sidebar: A Personal SWOT Analysis
Organizations frequently use the SWOT analysis method to evaluate past efforts and
determine its future. This process requires a great deal of soul searching. Frequently
organizations send their executives away from the office in which they work. They go to
a neutral ground devoid of the daily business interruptions. At this retreat, they begin
a no-holds barred brainstorming session. They agree to consider all ideas with no
consequences or repercussions following the meeting.
Each of the participants brings different life experiences to the session. They interpret
experiences differently. They will not all agree with each other. However, all
participants must agree to respect each other and give one another the opportunity to
articulate their thoughts and perspectives. Many of the comments will be of a sensitive
nature. Participants agree to respect information revealed at this meeting and not seek
retribution following the meeting. Sometimes organizations cannot really recognize or
accept honesty and genuine open thought.
Individuals can benefit from a similar analysis. All of us can profit from an introspective
self-examination of our lives. Think about your vision. Put it down in on paper. If you
have 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 and
weaknesses. Consider the opportunities in your life. Identify the situational threats that
might prevent you from attaining this vision. Be brutally honest with yourself. Write
them down and don’t show it to anyone else.
55

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 a
move to a new location. These are your goals.
If you have reached this point, you’ve done the hard part. Only the specific tasks
remain. For each of the goals that you identified you have to identify objectives that will
assist you in achieving these goals. List the actions that you think are required to
achieve the goals. Associate with the tasks, some way of recognizing that you have
accomplished the task. Each task should have a well-defined result or outcome that will
clearly indicate satisfactory completion. Ideally, you should be able to accomplish each
separate objective within a month or less. It’s too easy to postpone the start of
objectives that take longer than a month. An overall sequence of objectives may take
many months.
You may use the chart in Table 2-1 to assist yourself in developing this personal action
plan. Add more goals if required. Periodically examine your progress toward achieving
these objectives and make needed corrections.
56

57. Table 2-1 Personal Action Plan
Personal Vision:
Goal or Broad-based Endeavor #1:
Objectives to Achieve Goal #1:
Specific Objective Measured Outcome Time for
Completion
Goal or Broad-based Endeavor #2:
Objectives to Achieve Goal #2:
Specific Objective Measured Outcome Time for
Completion
Activities
Activities are work steps that must be accomplished before a objective or standard can
be achieved. Examples of activities include: prepare a specification, get a specification
approved, 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. control of an activity by comparing current performance to expected performance in
time and making required changes. Many managers create a model for expected
performance by collecting data for similar previous activities. They record information
about the resources used to complete the activity for a given level of quality. This
compiled data serves as the basis for their estimate of the resources required to
complete an activity.
Standards
Expected performance leads to the idea of standards. The International Organization
for Standardization (ISO) (http://www.iso.ch/iso/en/ISOOnline.frontpage) defines
standards 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 to
increasing the reliability and effectiveness of the goods and services we use.’
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59. Managers and supervisors usually have a notion as to the resources required to
complete an activity. The estimate for these resources stems from either a
performance standard based on the organization’s experience or generally accepted
industry practice. If a standard doesn’t exist then the organization establishes it. As an
example, suppose baseball wants to create a batting standard of performance. The
baseball industry assembles a committee with outstanding knowledge about batting and
impeccable baseball credentials. This committee meets, creates and adopts the
standard of batting excellence shown in Table 2-2.
Based on this standard, we categorize ballplayers based on hitting ability. Table 2-3
illustrates 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 some
time, the sports community decides that the standard does not reflect their intended
needs, then the committee members would meet again to modify the standard. All
professional communities continually examine and update old standards, and create
new standards as technology and general expectations change.
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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 F
The 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. O'Neill .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 NR
R signifies that the ballplayer was not rated due to an insufficient number of times at bat.
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61. The baseball batting example may be considered a production standard. Many types of
standards exist. The size, shape, form, and weight of sporting equipment follow
prescribed standards. Technical standards exist that define electrical, mechanical, and
software interfaces. Standards establish requirements for the composition and
structure of material. Workmanship standards detail methods for evaluating welds,
soldering connections, wiring harnesses, etc. Documentation standards clarify the
formats used for submitting manuscripts. Standards establish expectations. If the
items organizations use meet established standards and these standards meet the
requirements set forth by the customer, then we have confidence that the product or
service will be adequate. Independent organizations such as the U.S. Military, U.S.
Department of Agriculture, IEEE, ANSI, Software Engineering Institute, Underwriters
Laboratory, and the International Organization for Standardization (ISO) publish
standards for a variety of applications.
Policy, Process, Procedure, Rule
Organizations use several other common organizational terms. Policies are broad
guidelines created to help the organization achieve its plans. A process is a method of
reaching a desired outcome within an organization. Davenport (1993) defines a
process as "a structured, measured set of activities designed to produce a specified
output for a particular customer or market. It implies a strong emphasis on how work is
done 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
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62. external customers, and (2) they cross department boundaries. Recall that a person or
group delivers a product or service. If the delivery of this product or service goes to
someone within the same organization, we refer to that person or group as an internal
customer. A person or group performing the work that is unaffiliated with the buyer of
the product or service corresponds to an external customer. Procedures outline the
steps required to achieve a goal. Rules are definite, specific instructions. Standards,
policies, procedures, and rules are necessary to implement plans. As shown in figure
2-2 policies created by senior management establish a process. Managers create
procedures to implement the process. Rules are the specific detailed instructions that
support the procedures.
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63. Figure 2-2 Organizational Policy-to-Rule Continuum
Example
Policy – Broad
organizational Policy – Organization will have a
guidelines purchasing approval system
prepared by
senior
management
Process – a person or department
Process – a set of
must complete a purchase
procedures
requisition and secure
required to
management approval
implement
policy
Procedure –
Procedure – outlines 1. complete purchase requisition
the steps form;
required to 2. obtain supervisor and
achieve an management approval;
objective in the 3. submit to purchasing department
process
Rules – the specific Rules –
detailed 1. Specify item, part no., vendor,
instructions and preferred delivery date.
2. Purchases over $1000 require 3
bids
3. Purchases over $5000 require
Vice President approval
4. Sign form
5. Obtain approvals
6. Employees can purchase items
under $100 and receive
reimbursement from petty cash.
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64. The entire planning process enables us to determine the goals and the actions
needed to achieve the desired results. Throughout any organization, all components
associated with the planning process must be in harmony at each level of management.
The planning process is dynamic and requires review and adjustment to accommodate
changing circumstances.
Sidebar: Public versus Private Companies
Pat and Sarah believed they had a wonderful idea for a fast food Middle Eastern
restaurant. Into the pockets of pita bread they wanted to insert a mix of chopped
vegetables with balls of spiced falafel (ground chick peas) and a special family devised
blend of hummus and tahina sauce. As an unusual dessert treat they wanted to offer
baklava -- a pastry covered with honey and filled with ground pistachio nuts. The mint
tea accompanying the pastry would include real peppermint leaves and could be served
iced or hot depending on the season.
Pat and Sarah took their life savings together with some money they borrowed from
their parents and opened Sa-pa’s Middle Eastern Restaurant in the city. The people in
the business district enjoyed the fresh high quality food, the excellent service, the
unique background music and the clean surroundings. In less than a year, the
business earned a profit and Pat and Sarah repaid the loan.
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