White Manufacturing In 1985, White Manufacturing realized the necessity for project management in the manufacturing group. A three- man project management staff was formed. Although the staff was shown on the organizational chart as reporting to the manufacturing operations manager, they actually worked for the vice president and had sufficient authority to integrate work across all departments and divisions. As in the past, the vice president's position was filled by the manufacturing operations manager. Manufacturing operations was directed by the former manufacturing manager who came from manufacturing engineering (see Exhibit I). In 1988, the manufacturing manager created a matrix in the manufacturing department with the manufacturing engineers acting as departmental project managers. This benefited both the manufacturing manager and the group project managers since all information could be obtained from one source. Work was flowing very smoothly. In January 1989, the manufacturing manager resigned his position effective March, and the manufacturing engineering manager began packing his bags ready to move up to the vacated position. In February, the vice president announced that the position would be filled from outside. He said also that there would be an organizational restructuring and that the three project managers would now be staff to the manufacturing manager. When the three project managers confronted the manufacturing operations manager, he said, “We've hired the new man in at a very high salary. In order to justify this salary, we have to give him more responsibility." Exhibit I. White Manufacturing organizational structure MIS Tooling Accounting Project Managers Planning Scheduling Vice-President Manufacturing Operations Manufacturing Manager Quality Control Others Estimating QUESTIONS: 1. How do you account for the actions of the new department manager? 2. What would you do if you were one of the project managers? Procurement Manufacturing Engineering In March 1989, the new manager took over and immediately made two declarations: 1. The project managers will never go "upstairs" without first going through him. 2. The departmental matrix will be dissolved and the department manager will handle all of the integration.