Name: The Exley Chemical Company
Problems
Macro
Exley is a major chemical manufacturing company. The primary indication of a problem is dipping profits and sales for the last five years. Further, the organizational structure shows that there are too many departments as well as hierarchical layers. Another problem that needs attention is inefficient management of new and old products to suit company interest.
Micro
The primary problem was the emergence of conflict among departments. The main problem as illustrated in the case is between the marketing and the product development department. Departmental problems led to compartmentalization of team/department goals which focused too narrowly on their own goals rather than that of the organization.
Causes
The primary cause of these problems is the development and incorporation of a new department “product development”. This new department so created was responsible for developing new products in close coordination with the research and development department. Moreover, they were also given the responsibility to provide sales estimations, suggestions for new product introduction, etc. effectively the responsibilities of the engineering and the marketing department were clustered and given to this new department. This was the root of the problem.
Systems Affected
Structural
The structure of Exley has been affected due to the change incorporated in the organization by incorporating the new department. Further, there were other changes that were brought with adding new layers in the hierarchy like the product manager for each/different product.
Psychosocial
The effect of the implementation of a new department created conflict between the product development team and the marketing team. The marketing team was unhappy because a part of their job, i.e. sales forecast was handed over to the product development team. Further, there arose problems between the marketing and the new team in terms of handling customers. There was a lack of cooperation among departments and they did not work as teams, rather worked as competitors.
Technical
There were problems with the sales estimates developed by the product development team, whose projections were based on the overall market of the product rather than that of the company’s capacity and accessibility. Further, there were problems with new product introduction suggestions made by the new team with that of the engineering team. Suggestions of sales managers regarding the promotion of a product went unheeded.
Managerial
The development of the new team created competing teams, which created suspicion among team members. Managing these conflicting teams was a problem as their roles were conflicting with each other. Further, there was a lack of flow of information and communication gap among these teams which created the problem.
Goals
The goals of the marketing and product development teams were conflicting. The goal of the product development team was to develop and research the market potential of the new product. The promotion and market research for the product was given to the product development team, which was earlier the goal of the marketing team. This created conflicting goals between teams and thus with that of the organization which became a deterrent for generating profit.
Alternatives
The product development teams and marketing departments could be merged. Their roles were completely segregated. The role of the product development team is limited to the pre-product development functions and not to that of post-development when the roles should be that of the marketing department.
Recommendations
- Merging of the product development and the marketing function within the Marketing and sales department.
- Reducing hierarchies in the organizational structure of Exley.
Name: The OD Letters
Problems
Macro
The XRS team had been assigned to Larry who wanted to know if there were any trouble spots with the team. The problem in the case was the non-performance of a work team. The XRS team was not delivering, the earlier team leader, John Everet had left, and now the team was handed over to a different leader. But John had already played politics in the team making pockets of sub-teams in the team who were in conflict with the other subs.
Micro
The micro problem was conflict among team members. There was a lack of cooperation among team members and commitment. The team was not motivated to deliver. There was a lack of initiative among members.
Causes
The primary cause for the non-performance of the team and the conflicts among team members was the team leader, John Everet was the problem maker. He was mishandling the team and deteriorating the quality of leader-member exchange. The attitude of the team leader was lackadaisical which was reflected in his leading style.
Systems Affected
Structural
Due to the team, leader’s wrong handling of the team there evolved pockets of favorites among the team members. It created a team structure that was more bureaucratic rather than collaborative or participative in nature.
Psychosocial
The wrong attitude of the team leader de-motivated team members and spread discontent. The team members are unhappy with the way the team was working and the lack of collaboration among team members. The team members failed to work together and open up to the team leader with their problems as the major problem with them was the leader. This affected their satisfaction level with the members.
Technical
The team members were unable to work and there was a reduction in the level of seriousness among teams. The teams lacked cooperation which hindered the smooth flow of work and increased the time of getting a job done.
Managerial
The problem with the department head was handling John and his followers who were responsible for making the team function inefficiently. Further, the management had to address the issue with firm but careful hands so that the team is not affected.
Goals
The goals of the team were uncertain, as the team leader was not interested in the job but rather in socializing.
Alternatives
The team leader’s responsibility is to motivate the teams and to increase the quality of leader-member exchange. The leader is responsible for providing a specific direction to the teams and escalating any problem to the management level. The team’s performance is dependent on the conduct of the team led by their leader.
Recommendations
- The team needs the motivation to work on schedule.
- The team’s difference has to be removed by providing team-building exercises.
- The team requires a leader who would provide specific goals for the members which would ensure role clarity among members and reduce discontent.
- The leader-member exchange in the team has to be developed.
Name: The Sundale Club
Problems
Macro
The list of members in waiting was exhausted. There was expected membership attrition due to the brewing problems at the athletic department. There was a need to market the club to improve its image. Further, the hiring of Johnson, by Ellis was the focal point of all the problems.
Micro
The micro-level problems were dissatisfied employees due to mishandling of employee grievances. Further, the club’s policies for human resources policies were not clearly laid down. The expected increase in attrition in the athletic department and team dissonance.
Causes
- The hiring procedure of Sundale was a problem that did not bring the immediate boss into the hiring process.
- The culture of the club did not help in problem escalation which led to dissatisfaction among employees. Moreover, the culture of the organization was not tolerant.
- Leader-member exchange was bad due to the favoritism of Johnson by Ellis.
- Resigning of Havens, promotion of Johnson as Assistant Director and not Pat who was fired when she confronted Ellis.
Systems Affected
Structural
The structure of the athletic department was completely shuffled. Havens resigned and Johnson was promoted to his position. Pat was fired and left Alice without a supervisor.
Psychosocial
The sexual harassment issues escalated to the assistant director and then to the director of the department were handled shabbily and created dissatisfaction among team members. Further, the promotion of Johnson, the accused in the harassment problems to the assistant directorial position when Havens resigned created further dissonance, and the firing of Pat would surely initiate attrition of the employees in the department as well as that of the club members.
Technical
The problem of departure of employees who were long associated with the club would create a misconception among members who were in close contact with these employees. Further, this would establish a negative image of the club’s reputation.
Managerial
The club’s two sections, the social, and the athletic departments both were affected by this turmoil. Watte had to decide on new marketing as well as HR policies for the club.
Goals
The personal goals of the employees were altered and became different from that of the club as they were now more focused on creating their forte rather than work committedly.
Alternatives
The alternative to this situation was to handle the root cause of the situation i.e. to investigate the accusations against Johnson and reach an ethically correct decision. Further, Pat should not have been fired without notice which created a wrong impact on other employees.
Recommendations
- Develop a human resource policy for handling employee grievances, recruitment, and promotion.
- Team building exercises should be conducted.
- Making the culture of the organization more tolerant and open.