Case Study 5

CASE STUDY ST UDY:: Payton Corporation Corporat ion MARTÍ LOZA, Rubén 1. !at !at i" t!# t!# ba"i" ba"i" $or t!# prob%# prob%#&' &'  The main problem of Payton Payton Corporation is the potential conict conict that exists in the labour rates. There is a disagreement in the rates that actually exist and the exact labour rates that were we re budgeted at the beginning of the project. This creates a conict between the workers and the company. company. The project manager rm is going to spend 5! more on the project than they thought about that.

(. !o !o i" i" at at $au% $au%t' t'  The project manager is at fault. "hen drawing up a budget for a project# project# all the rele$ant factors that a%ect costs# such as the amount of work needed# must be e%ecti$ely taken into account. &or the case of Payton Corporation# the project manager did not analy'e all the factors that could a%ect to the nal cost.  The manager should ha$e been better informed informed about the cost and duration of the di%erent tasks before signing the contract and# therefore# carry out the project.

). *o+ an an t!# pr#"#nt pr#"#nt "itua "ituation tion b# orr# orr#t#-' t#-'  The situation could be sol$ed by the suitable re$iew and analysis analysis of the pay structure of the employees within the organi'ation who are in$ol$ed in a project. (nly# a conict appears between the project manager and the )ab manager about the expenses due to the hours worked. Therefore# they should t the salaries of these workers based on the rates by the go$ernment.

. /" t!#r# any +ay +ay t!i" "ituation an b# pr#0#nt#- $ro& $ro& r#urrin'  This situation may be pre$ented pre$ented from recurring by by the implementation of strong compensation policies for our employees that are in line with the functional tasks performed by the employees and the regulatory measures by the go$ernment.

2. *o+ +ou%+ou%- you !an-%# t!i" "ituation "ituation on a %on#r3-uration %on#r3-uration pro4#t, "ay on# y#ar, a""u&in t!at &u%tip%# -#part&#nt" ar# in0o%0#- an- t!at no n#+ -#part&#nt" +#r# #"tab%i"!#- ot!#r t!an po""ib%y t!# pro4#t o5#'

(ne of the most important factors in a long*term project that in$ol$es di%erent departments is the communication between them.  Through communication# di%erent factors that a%ect the duration and cost of the di%erent acti$ities can be identied# monitored and analy'ed. +n addition# problems can be detected more ,uickly and# therefore# the project manager can apply the appropriate solution faster in order to reduce the impact that could ha$e on the scope and cost of the project. (nce analy'ed each of these departments# the manager can implement new policies in order to reduce the costs associated with these acti$ities such as balancing the pay structure of some employees# analy'e if di%erent departments can interact between them to perform same tasks by reducing the necessary sta%# etc.

6. S!ou%- a u"to&#r b# +i%%in to a#pt &on#tary r#"pon"ibi%ity $or t!i" typ# o$ "ituation, po""ib%y by p#r&ittin #"tab%i"!#- "tan-ar-" to b# -#0iat#- $ro&' /$ "o, t!#n !o+ &any &ont!" "!ou%- b# on"i-#r#- a" a "!ort -uration pro4#t' +n my opinion# the client should not accept the monetary responsibility in this type of situations because the error has been performed by the project manager who has not reali'ed an appropriate analysis about the budget of the project before arri$ing to an agreement. -owe$er# many times# the customer does not ha$e the option of choosing and# therefore# just accepting the new policy although they do not agree with it. ometimes# the decision of the customers is also related to the duration of the project. /enerally speaking# short*term projects take a few hours# days or weeks to complete. )ong*term projects take months or e$en years to nish. hort*term projects typically ha$e a limited impact. +n this case# customers can withstand this situation because time is $ery limited and# therefore# decide to continue with the project. (nce the problem is sol$ed# the project team disbands. )onger*term projects tend to ha$e a larger impact on the business# community or employees. The time during which the client has to support this situation can be $ery high. &or this reason# many times# the situation becomes unsustainable and customers decide to lea$e the project.