A Large Project Engineering Company Assigns Engineering, Purchasing, Marketing and Support

question 18

Essay

A large project engineering company assigns engineering, purchasing, marketing and support staff to client-based projects, which last anywhere from four months to one year. These project staff report to both the project leader and the manager of their functional specialization. For example, a marketing employee in Project Z would receive day-to-day instructions from the Project Z manager, but would receive career development guidance from the company's director of marketing. The functional manager also places employees in future projects. In the past, project staff were evaluated by the employee's project leader at the time of the annual performance evaluation. However, some employees complained that they had just started the project, so the project leader didn't know their performance. The company wants to introduce a 360-degree feedback process to overcome this and other problems with the performance evaluation system. Describe the specific characteristics of a 360-degree feedback process for project staff at this company and identify two problems that the company should know about 360-degree feedback systems.

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Definitions:

Sole Proprietorships

A form of business organization where a single individual owns, manages, and is responsible for all aspects of the business, including debts.

Net Income

The amount of profit earned in a period after all expenses, taxes, and costs have been subtracted from total revenue.

Fixed Ratio

A financial metric that reflects the consistency of a company's financial performance by comparing various fixed costs to its total expenses.

Interest On Capital

The return on investment that is required or anticipated for the money or capital invested in a business or project.