FAZAIA COLLEGE OF EDUCATION FOR WOMEN

SUBMITTED BY: Rabia Khan

SUBMITTED TO: Ma’am Saba

SUBMISSION DATE: 26, April, 2020

DISCIPLINE: BBA(Hons.) – 4th Semester

SUBJECT: Project Management

 Payton Corporation(Case Study)
Activity
Question 1:-
What is the basis for the problem?

Answer:-
The main problem of Payton Corporation is the potential conflict that exists in the labour
rates. There is a disagreement in the rates that actually exist and the exact labour rates that were
budget at the beginning of the project. This creates a conflict between the workers and the
company. The project manager firm is going to spend 50% more on the project than they thought
about that.

Question 2:-
Who is at fault?

Answer:-
The project manager is at fault. When drawing up a budget for a project, all the relevant
factors that affect costs, such as the amount of work needed, must be effectively taken into
account. For the case of Payton Corporation, the project manager did not analyze all the factors
that could affect to the final cost. 

The manager should have been better informed about the cost and duration of the different tasks
before signing the contract and therefore carry out the project.

Question 3:-
How can the present situation be corrected?

Answer:-
I don’t think the present situation can be corrected without terminating the current
project. The current project is already doomed to fail with the budget being surpassed by a
probable 50% and potential to be audited by the government with legal recourse. I think that they
will need to re-bid for the contract with the correct amount of cost.
Question 4:-
Is there any way this situation can be prevented from recurring?

Answer:-
This situation may be prevented from recurring by the implementation of strong
compensation policies for our employees that are in line with the functional tasks performed by
the employees and the regulatory measures by the government.

Question 5:-
How would you handle this situation on a longer-duration project, say
one year, assuming that multiple departments are involved and that no new
departments were established other than possibly the project office?

Answer:-
Since the lab manager said that he did have lower-salaried people, I would put them on
the job and switch out the high salaried people. The lab manager stated that they could work on
job just not in a two month requirement. This would possibly remedy the current situation at
hand.

Question 6:-
Should a customer be willing to accept monetary responsibility for this
type of situation, possibly by permitting established standards to be deviated
from? If so, then how many months should be considered as a short duration
project?

Answer:-
I would expect that they should be willing to accept monetary responsibility. If straying from
the established standards can stay on the side of legality and have a possibility to stay on budget
and time then I would say yes. I don’t think that two months or 90 days was a stretch to complete
the project. There was just miscommunication between the project manager and the lab manager
on actual hourly costs. If that was accounted for up front there would be no problem and the cost
would’ve been correct.