Level 1 carries a medium degree of risk. The organization might very well be resistant to change. Management may be fearful of a shift in the balance of power and authority.

Another major problem at Level 1 is when the organization first recognizes the complexities of multiple-boss reporting, which is a necessity for project management. Multiple-boss reporting can affect the wage and salary administration program and how employees are evaluated.

Typical factors that cause Level 1 to present a medium level of risk include:

• Fear of organizational restructuring

• Fear of changes in roles and responsibilities

• Fear of changes in priorities

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