Functional Applications of Management 1

Functional Applications of Management in

Research and Development

Chenista Rae Straubel

MGT 330

Beverley M. Harris, Faculty

March 25, 2010

 Functional Applications of Management 2

Abstract

Research and development is a risk-based enterprise that seeks out new ideas and

unknown information with the hopes of creating something new and better that will be

become both profitable for the venture capitalists investors as well as innovative and well

received in the marketplace. In a Cranfield University article, Slim Chapter on R&D

Management – Part 1, the anonymous author states, “…success cannot be commanded,

and most R&D is managed in terms of probabilities.”

R&D is a unique corporate structure that is “knowledge based”. Individuals

employed in R&D are very autonomous, team-oriented, and focused professionals. The

endearing qualities required of these individuals often make them difficult to manage and

this creates a unique forum for growth and challenge to both management as well as the

talent.

This following content addresses the four functions of management of an R&D

Company as they apply specifically to the organization, supervision, and individually to

R&D staff members.

 Functional Applications of Management 3

Functional Applications of Management in

Research and Development

Organization

Planning

Outsourcing R&D is a fundamental change in the R&D industry and the trend to

outsource is expected to continue and to grow. Company’s who outsource R&D enjoy

the advantages of qualified, competent, and specialized talent that would be otherwise

unavailable or expensive to procure locally. Due to the sensitive nature of R&D projects,

security becomes an issue within a company and outsourcing R&D resolves many of the

issues related to corporate espionage as it pertains to pending projects and the security of

the company’s competitive advantage.

In the corporate setting, R&D departments or laboratories have to justify the costs

involved in development and account for changing objectives. Independent R&D

facilities market their talent globally with a key objective in a specialized area of

expertise. This becomes the R&D Company’s competitive advantage that is reflected in

the mission statement and future strategic planning objectives. Often several independent

R&D companies work jointly on projects utilizing state of the art technology to achieve

their goals.

Organizing

Staffing R&D departments is a competitive maneuver that includes strategically

attracting and retaining competent technical professionals. The conduct of such

individuals is often dictated by the standards set in the particular industry or profession
 Functional Applications of Management 4

rather than by the internal or external environment of the R&D department or company

for which they maintain employ. Industry credentials are an important part of recognition

for these qualified technical professionals who are often driven purely by their “academic

understanding of one narrow field.” (Anonymous. Slim Chapter on R&D Management –

Part 4: Organisation and Staffing. Cranfield University [Retrieved 03/08/2004]

http://www.cranfield.ac.uk/sme/rdman/about-rd/slim-5.htm).

R&D employees tend to be underpaid and to begin their career at a young age and

move into other functions including management. R&D professionals often become

“disillusioned” by the work which leads some companies to implement a “dual ladder

career structure that allows the technically able to advance without assuming

management responsibilities.” (Anonymous. Slim Chapter on R&D Management – Part

4: Organisation and Staffing. Cranfield University [Retrieved 03/08/2004]

http://www.cranfield.ac.uk/sme/rdman/about-rd/slim-5.htm).

It is a good idea to involve R&D professionals in the operation and management

activities of the company as, “commercial orientation among R&D staff is highly

conducive to the success of a company.” (Anonymous. Slim Chapter on R&D

Management – Part 4: Organisation and Staffing. Cranfield University [Retrieved

03/08/2004] http://www.cranfield.ac.uk/sme/rdman/about-rd/slim-5.htm).

Leading

Leading an R&D company is particularly challenging and rewarding. Second

level R&D management personnel are often not familiar with technology and hold no

particular talent useful in the development capacity. Lower level management remains

primarily responsible for status reporting of specific projects. Lower level management
 Functional Applications of Management 5

personnel often find themselves members of project meetings in which they hold no

authority and interaction is limited to a team member capacity. This is humbling to say

the least to management personnel but helps the R&D Company as whole to maintain

their competitive advantage in the marketplace.

Controlling

Consistent with other industries, R&D Company’s must constantly review the

status of projects as they pertain to corporate goals and the company mission. It is often

easier in R&D Company’s to change direction rapidly. Due to the nature of the industry,

change is inevitable and both management and staff are accustomed to and welcome

change of any nature.

Supervision

Planning

Interdepartmental goals and objectives relate to and are interdependent upon the

R&D company mission statement and corporate objectives as defined in the business or

strategic plans. Departmentally, supervisory staff remains responsible for their own

department’s goals and objectives as well as maintaining adequate qualified staff. While

focus on short-term objectives is important for maintaining day-to-day objectives, long-

term planning includes facilitating continuing education requirements among qualify staff

members to ensure the future profitability and competitive advantage of the R&D

Company as a whole.

Organizing
 Functional Applications of Management 6

“Handling talent provides management’s greatest challenge in a technically-based

company.” (Anonymous. Slim Chapter on R&D Management – Part 4: Organisation

and Staffing. Cranfield University [Retrieved 03/08/2004]

http://www.cranfield.ac.uk/sme/rdman/about-rd/slim-5.htm). Antagonistic personalities

prevail in the R&D industry and often intimidation can foster deep resentments between

management and staff. For this reason, it often just a good idea for management to

acknowledge these individuals for their talents with praise and a polite “thank you.” It is

improper and irresponsible of supervisory personnel to hold an R&D professional

accountable for their personal feelings of intimidation and resentments.

Implementing events that encourage camaraderie between management personnel

and R&D peer groups can help take the “edge” off blossoming antagonism and

intimidation between the “leaders” and the talent. With leaders that both respect and

encourage growth of talent within the staff, a new sense of teamwork develops where

management acts simply as the facilitator rather than a controller. R&D staff

Leading

R&D staff is often very autonomous and well disciplined. Given a core set of

project requirements, creating teams and assigning a project manager helps maintain

satisfactory completion of required tasks. R&D project managers are a valuable asset and

often required for establishing the scope of a project as well as maintaining project

budgets and timelines.

Controlling

Project teams and project status meetings held regularly help supervisory staff

review the process and to monitor performance and evaluate current needs analysis.
 Functional Applications of Management 7

References

(Anonymous. Slim Chapter on R&D Management – Part 4: Organisation and Staffing.

Cranfield University [Retrieved 03/08/2004]

http://www.cranfield.ac.uk/sme/rdman/about-rd/slim-5.htm)