Current Objective

To optimize the current organizational structure and management processes of

BEC, so as to enable smooth flow of processes and reporting structure in the
organization.

Current Scenario
Beijing EAPs Consulting Inc. (BEC) is a consulting company to provide employee
assistance services in China. BEC has operated with 6 employees for over 5
years i.e. 2001-2006. Due to the increase in the demand for EAP services in
China there is an increased demand for BEC. As a result, the company has
expanded and got around 20 employees by the end of 2007. In 2006, BEC
decided to use project management approach to conduct its operations in the
organization. Though this resulted in increased profits, certain set of problems
came along with it.
Project management approach is a method where in all the employees of the
company work in coordination towards achieving the project objective. Unlike
Functional approach, where all the employees were divided based on the
functions, a project management approach meant that the all the employees
would work in tandem for the project, irrespective of their functions.
Mr. Zheng had implemented this approach as he felt that it would result in proper
organization and allocation of employees to project and eventually result in time
saving for the employees. From the conversations of Mr. Yang and Ms. Song, it
was evident otherwise. They had problems with delegating the work to one
another as they were peers.
BEC wants to hire more number of employees and grow its base but it currently
faces many problems

Since there were many projects, employees were currently involved in

many projects and also had to report to their own departments
Role of project managers was not well received by the departmental staf
Lack of clarity among employees regarding who they were reporting to
Lack of prioritization among the employees about tasks assigned by
project and department heads
Problems between project managers and department managers

After restructuring, the company increased its profits and Mr. Zheng felt it was
more efficient and market oriented. However, above problems still existed.
Before 2006, BEC had no organizational structure. Roles and responsibilities were
more flexible and as a result all the six employees worked as a team and helped
each other in for improvement. Later by introducing Project Management
structure the freedom and flexibility is lost and hence the team spirit was
compromised. Firstly, the company has never had 20 full time employees and
hence they are growing at a faster pace. Secondly the implementation of any
change has to be transitioned very cautiously. Else problems like the ones in the
case would arise. The company is still in the initial phase of adoption of a Project
Management Structure and hence the issues are bound to arise.
Many of the employees are new to the company and their method of working
might be diferent from that of the existing employees. Here the concept of
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organizational Culture arises. The vice president of the company himself was
appointed in and hence his alignment to the company work culture might be
diferent.
The company has taken up too many projects and is unable to cater to all the
projects with current employee base.

Project Management Approach

A unique aspect of Project management Structure is that it fosters CrossFunctional Integration and as a result keeps the employee motivation high.
Secondly this method simplifies the work for the employees and helps them
dedicate their time elsewhere.
On the other hand, it can create a lot of confusion among both the employees
and the managers. Managers are confused as to the extent to which their powers
are distributed and for employees as to their reporting. In case where the
company hires more people to cater to a certain project, eventually after the
project they may have to be benched.

Suggestions

Beijing EAPs Consulting Inc. (BEC) currently has only two project
management teams. From the case it is evident that the company is
unable to handle all the projects it has taken up and hence one more
project management team might give the employees a chance to relax.
A standardized definition of roles and responsibilities in the form of Job
descriptions would solve the problems relating to the reporting structure.
Defined set of instructions from the managers about the importance of the
project would help employees prioritize the project work as against
departmental projects.
Regular meetings to discuss the status of the project with other
departments and update them about the requirements in the future