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Organisations often face management problems ranging from the structure to putting up strategies that would enable the firm to achieve the desired outcome. The manner in which organisations are structured affects various functionalities of the firm. In addition, strategy formulation and implementation are critical in the success of the organisation. Specifically, strategic development of the firm, leadership and Human Resources (HR) practices are the major issues that normally affect the operations of the organization (Shields, 2012). The main aim of this report is to analyse the manner in which these development issues affect Casual Togs Inc. The firm has been riddled with various management challenges over the years resulting in drastic poor performance in terms of reduced sales and revenues. Therefore, the report is critical in identifying the major challenges facing the firm with an aim of offering recommendation that would result in improved performance.
Specifically, the report would be identifying the major problems facing the firm, the sources of the challenges and how such problems could be averted in future. In addition, the report would be identifying the manner in which change in the firms operations can be effected particularly by the top management. Moreover, the report would be examining the manner in which future problems can be averted in terms of management practices, structural changes and the needed transformations amid intense global competition.
The major problems facing the firm
One of the major problems facing the firm is failure to attain the required outcome. The firm’s sales management is having difficulties in attaining the projected sales within the required period. Since the firm is operating in a highly volatile apparel industry in which sales are determined by seasons, failure to the meet the required sales target is detrimental to the firm. In this case, failure to meet the sales forecast means that the firm would miss out the required sales throughout the season. As such, the firm needs to dispose off excess stock through off prices, which is expensive to the firm. Besides, the supply and chain department, which is in charge of deliveries, are in greater problem of meeting the deadline. Most of the firm’s products are returned due to late deliveries. In fact, poor sales and failure to meet the targeted sales forecast has been blamed on poor deliveries and returned products from customers. Generally, late deliveries affect the firm’s performance in terms of revenues.
Another problem facing the firm is the squabbles among the employees particularly the top management of the organisation. Squabbles have lead to work redundancy and low morale among the workers. Moreover, most of the employees feel insecure in terms of jobs resulting in reduced commitment to the organisation goals and required outcomes. The result is decreased performance among employees, which in turn affect the organisation. The other major problem facing the organisation is the poor relationship between employees and management as well as between the managers. In fact, the firm is deficient of human resources management competencies required to manage interpersonal relationships within the organisation. Interpersonal relationships among employees are created through developing a culture that take into consideration the diversity as well as respect of individual views.
Managing employees is one of the critical factors that contribute to the organisations success. In fact, poor leadership is also another problem facing the firm. The firm has leadership style that resulted into deprived relationship between employees and the top management. The effect is reduced performance among employees, which eventually have negative impact on the performance of the firm.
Poor relationships among the employees are also exhibited in relationship the organisation has created with customers. In fact, the organisation is not customer oriented. The poor relationship the organisation has developed with customer has resulted in merchandise returns and reduced sales. Good relationship with all the stakeholders of the firm is critical for the success of the firm.
Causes of the problems
The major cause of the problem is lack of leadership capabilities. The firm’s president lacks leadership abilities that would enable employees achieve the desired outcome. The firm top management should come up with various strategies that would address the employees concerns and the leadership deficiencies. The first strategy is to change leadership and the management styles. In fact, the firm should adopt leadership and management approaches that motivate and encourage employees towards attainment of the organisation’s goals (Bass & Riggio, 2008). In addition, the leadership and management styles should encourage communication between the employees and senior management and remove vices such as discrimination that tend to discourage employees’ work performances. Moreover, the leadership style should focus on creating positive change among employees through encouraging creativity and innovativeness in solving the problems facing the organisation.
In addition, the leadership of the organisation should focus on creating positive relationship among the employees, suppliers, stockholders and the customers. In particular, focusing on positive relationship with the customers entails generating services with additional value that satisfy clients beyond their expectations. Ensuring that the services provided are beyond the customers’ expectations will increase the firm’s clients base (Bangs, 2002). Focusing on customers will also ensure increased sales and revenue, which is critical for the growth and development of the firm.
Another cause of the problem is lack of clear strategies that would enable the firm attain the desired outcome. In fact, the firm should first create a vision for the organisation and formulate clear objectives that are achievable and measurable. Once the vision, mission and objectives have been formulated, a clear strategy outlining the steps on how the organisation’s goals will be attained are then established (Farndale & Paauwe, 2005). The vision, goals, and strategies are communicated to the employees as well as other stakeholders of the organisation. Imparting the vision, goals and strategies will ensure that all stakeholders are involved in the attainment of the organisation’s goals. Secondly, the firm should come up with strategies that will ensure a change in the management of employees and leadership styles. The new management style will remove obstacles that alienate employees from work processes. The leadership style should encourage employees towards attaining the desired outcome.
The other cause of the problem is lack of control emanating from organisational structure. Essentially, the relationship between leadership style of the organisation and employees performance is direct (Palestini, 2009). In addition, the management structure directly affects employees’ job commitments that have greater influence on the performances. Essentially, management structure and leadership style of an organisation should be directed towards improving the performance of employees (Armstrong & Baron, 2009). Currently, the organisation should implement management structures and leadership styles that tend to motivate workers and aimed at increasing their output.
The manner in which Cy can be persuaded to change
Change is a process and can only be effective when it is transformative rather than drastic. The employees are always resisting drastic changes simply because workers would feel comfortable with the current skills. Cy is one of such employees who will always resist the changes necessary for the firm to succeed. According to Baker, 2009, organisations often face the challenge of creating, recreating and implementing changes. While organisations continue to create and implement changes, the increased probability of encountering strong resistance from fearful and even cautious employees as well as other stakeholders is eminent. As such, organisations should comprehend the reasons for resistance and take necessary steps in order to attain the desired change outcome (Burke, 2006). Essentially, to be successful in creating change organisations have to create an environment that would enable transformations to take effect.
One way to change Cy is to make the desired outcome clearer and attainable. Coming up with clear and attainable change outcome will persuade the chief executive to adopt the needed strategies that would attain the desired change. Essentially, the desired change has to address the challenges Cy face directly in order to effect the desired transformation. In fact, the strategies have to deal with new expectations not only for the top management but also for employees (Spreitser et al., 2012). In addition, Cy should be part of the formulation of the strategies. In fact, clear explanations of new tasks, generous adjustment period should be provided and enable free acceptance of change without authorisation or application of forceful means.
As indicated, Cy would tend to resist change due to fear of uncertainties. As such, it is critical to take into consideration the reason for such fears, be sympathetic and put in place strategies that would deal with challenges that come with desired transformations. Leaders must also understand that during the transition occasional blunders are eminent. As such, safe learning environment need to be created to allow Cy and other employees to comprehend new changes that have been brought. Moreover, Cy and other employees are also susceptible to learn through mistakes.
Change should be implemented incrementally to avoid eminent conflicts and mistakes that may be costlier to the organisation (Spreitser et al., 2012). Moreover, incremental implementation would allow Cy and other employees be familiarised with the new ideals. Essentially, incremental implementation will also reduce the chance of resistance since hesitant employees would be accustomed to the new changes. Therefore, Cy should be allowed to absorb and comprehend the need to have such changes in the organisation and contribute positively towards the desired change outcome.
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The desired management practices
In order to avoid future problems, the firm has to adopt management practices that take into consideration the needs of the stakeholders. In fact, the firm has to change its leadership style. The success of the firm would depend on the type of leadership adopted by the organisation. One of the leadership styles that enable incremental changes is the transformational leadership style. Transformational leadership is characterised by its inspirational nature and positive changes it creates in the organisation (Lord, Brown & Freiberg, 2010). Transformational leadership takes into consideration the concerns of employees and is focused on encouraging workforce to achieve the goals of the organisation. In fact, transformational leadership is geared towards creating positive change among employees.
Moreover, in transformational leadership style, the members of the team are encouraged to attain the desired results on assigned tasks (Buchanan & Huczynski, 2007). Further, leaders impart the vision of the group and take into consideration the members’ contribution in the attainment of the results. Besides, Transformational leaders have greater vision as well as inspirational characteristics, which is applied to motivate and change the expectations as well as perceptions of employees to work towards the desired goals and outcome.
As indicated in the case, the organisation needs changes that would cause an increase in performance. As such, Cy should drive the change process through the application of transformational leadership attributes. Essentially, transformational leadership style is the best employees’ management approach. In addition, the firm needs visionary leadership to inspire and motivate employees towards attaining the desired outcome. Such characteristics are found in the transformational leadership style. However, other management practices such as inculcating a culture that embraces diversity is critical for the success of the firm.
In order to avoid future problems and improve productivity, the firm must adopt practices that encourage innovation and increased performance of the employees. Essentially, the relationship between management structure of the organisation and employees performance is direct (Palestini, 2009). In addition, the management structure directly affects employees’ job commitments that have greater influence on the performances. Essentially, management structure of an organisation should be directed towards improving the performance of employees (Armstrong & Baron, 2009). Currently, the organisation should implement management structures that tend to motivate workers and aimed at increasing their output. In other words, the management practices adopted by the organisation should motivate the employees, which in turn contribute to increased productivity.
The first motivating management practice that the firm should adopt is cross-functional management structure. Most importantly, the cross-functional management structure encourages the astral managerial leadership and innovativeness among the organisation’s employees (Mullins, 2013). The management structure often determines the type of leadership style that have direct impact on the employees’ behaviour and the general output of the organisation.
In most cases, the management and organisation structures determine the culture of the organisation (Bratton & Gold, 2007). As such, the organisation should pursue management and organisation structures that promote cultural and moral principles as well as practices that motivate and increase the employees’ output. In fact, the organisation should entrench moral principles that emphasise employees’ motivation as well as enhancing the general output of the firm (Buchanan & Huczynski, 2007).
Employees’ management practices such as encouraging individual accountability have been found to encourage employees to effectively perform the assigned tasks resulting in increased outcome (Shields, 2012). However, such practices have to be adopted within the moral principles determined by the management structure. Studies on the relationship between employees’ performance and responsibility indicate that personal accountability combined with freedom to operate explains individual innovativeness that encourages employees to do extra work not only for the organisation but also for personal goals (Buchanan & Huczynski, 2007).
Responding to changes in the competitive environment
Casual Togs Inc will be facing many challenges given increased global competition. In order to overcome challenges that come with increased global competition, the organisation should promote is innovativeness among employees. In other words, the organisation should create an environment that promotes innovativeness among employees. Currently, lack of innovation originates from the organisation tradition centric culture, which is not open to new changes required to drive the organisation forward. Besides, changing the centric culture of the organisation has remained a challenge to the organisation’s leadership. Essentially, the organisation has remained elusive to the external factors that drive innovation.
Besides, the organisation has to be in a position to developed new products to counter the quick moves by competitors. In addition, the organisation’s leadership should struggle to introduce highly competitive product in the market. Essentially, the firm should allow its growth be driven by innovations that result in the creation of profitable lines of products. Besides, the firm has to come up with new product line that will drive its growth in the long-term. The major factor hampering the performance of the firm is culture and the management practices. Therefore, the firm should come up with new management practices strategies aimed at improving employees’ skills and capabilities.
Essentially, the firm should adopt the current horizontal management structure and leadership style that facilitate innovations leading to reduced cost in the firm’s processes as well as increasing the speed of decision-making processes. As can be observed from the case, majority of the shareholders argue that unless the leadership of the firm transforms its belief system, the slow decision-making processes and stifled innovativeness will reduce the firm’s competitive advantage.
Conclusion and recommendation
Generally, the organisation should adopt management models and leadership styles that aim to increase the output of employees, which in turn augments the general output. In fact, models of management that focuses on the improvement of employees’ output as well as individual development increase the competitive advantage to the organisation. Most modern organisations have adopted the cross-functional management due to its effect on employees’ improvement and the accompanied astral leadership style. Astral leadership style allows cross-functional management practices that encourage work processes as well as employees’ motivation. Moreover, the cross-functional models are aided by the open communication system that limits the organisational structure spectrum.
Essentially, the corporate organisation management model should offer a sense of responsibility to the workers, which result in greater contribution to the organisation’s objectives. In other words, the management model should result in increased employees’ performance. Cross-functional model fulfills such requirements. As such, cross-functional model becomes one of the management structures that encourage employees’ performance resulting into increased productivity of the organisation. Moreover, cross-functional model increases the leadership and management competencies resulting in additional competitive advantaged to the organisation.
The practices will enable the organisation be innovative and develop products that enable the firm to remain competitive in the market. Besides, the firm’s models of management, organisation culture and leadership style will create expected changes that foster future profitability and sales growth through innovation. Besides, the business should continue to orient its goals towards creating products that satisfy the needs of customers.
The case present some of the confrontations firms encounter particularly in the management people, strategic developments and controls. The firm needs immediate changes in order to attain the desired results for its sustainability. However, in order to attain the desires results, change should also be implemented incrementally to avoid eminent conflicts and mistakes that may be costlier to the organisation. Moreover, incremental implementation would allow employees be familiarised with the new ideals.
Essentially, incremental implementation will also reduce the chance of resistance since hesitant employees would be accustomed to the new changes. Besides, the organisation needs to adopt leadership styles that take into consideration the concerns of employees. In addition, the leadership styles should be focused on encouraging workforce to attain the goals of the organisation. In fact, the leadership style should be geared towards creating positive change among employees.
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