Mary Van Houten is a Dutch citizen who was assigned as a project manager in a multinational company to handle two cluster house construction projects in West Surabaya (Cluster 1) and South Surabaya (Cluster 2). Both clusters are started and must be completed at about the same time. For both projects, it is planned to use the same house design concept (modern minimalist) with the same project completion strategy. Mary is dizzy because the project in West Surabaya is currently experiencing delays. This is due to several problems. One of them is the project permit in cluster 1 which is not issued by the local government. The permit was not issued due to protests from local residents who felt that they had been harmed by the construction of the housing project.

When Mary asked, the permit staff said that there had not been any attempt to communicate with local residents. Project staff only submit applications to government offices with the usual procedure. According to the licensing staff, the unit related to licensing at the local government office is very slow in processing permit applications. Licensing staff do not know who is the person handling the project permit application application.

in addition to licensing, another problem is the difficulty obtained by the marketing department to market their products. The market in West Surabaya is not interested in the concept of the house being offered. The market in West Surabaya is mostly young executive families who are mostly engaged in their own business, while in South Surabaya most of the young families work as workers in a certain company.

The other problem is related to human resources. The project uses 2 groups of foremen who have different characteristics. Foreman A is on duty in West Surabaya employing artisans, most of whom come from Central Java. Meanwhile, Foreman B in South Surabaya mostly employs workers from East Java and its surroundings. According to Mary's orders, so that the project can be completed quickly, the field workers treat very strict rules regarding discipline and the communication system is very direct / to the point. If there is an error, the craftsman will be reprimanded directly in the field and not infrequently in front of colleagues.

 

a. What organizational structure should this multinational company choose? And briefly explain why?

 b. Project managers need to understand aspects of organizational culture. Why? Explain briefly. 

c. Briefly list the core dimensions of organizational culture that a project manager needs to know. In  this case, which aspects of culture are relevant? Briefly explain.

d. What do you think Mary should  do to solve the problem?

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a Organizational Structure Recommendation In this scenario a matrix organizational structure would be most suitable for the multinational company handling two cluster house construction projects in di... View the full answer