Problems

8-1 Beta Company has decided to modify its wage and salary administration program whereby line managers are evaluated for promotion and merit increases based on how well they have lived up to the commitments that they made to the project managers. What are the advantages and disadvantages of this approach?

8-2 How should a project manager handle a situation in which the functional employee (or functional manager) appears to have more loyalty to his profession, discipline, or expertise than to the project? Can a project manager also have this loyalty, say, on an R&D project?

8-3 Most wage and salary administrators contend that project management organizational structures must be "married" to the personnel evaluation process because personnel are always concerned with how they will be evaluated. Furthermore, converting from a traditional structure to a project management structure cannot be accomplished without first considering performance evaluation. What are your feelings on this?

8-4 As part of the evaluation process for functional employees, each project manager submits a written, confidential evaluation report to the employee's department manager who, in turn, makes the final judgment. The employee is permitted to see only the evaluation from his department manager. Assume that the average department merit increase is 7 percent, and that the employee could receive the merit increases shown in the following table. How would he respond in each case?

Project Manager's Evaluation

Merit

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