Question

Instructions ABC Company, Inc. has been in existence for 10 years. They have 50 employees, currently...

Instructions

ABC Company, Inc. has been in existence for 10 years. They have 50 employees, currently have one location, and they only manufacture one product: widgets. They have managed to stay in business by holding onto a small portion of the widget market, but they are far from the market leader. Over the last 5 years, their market share has stayed more or less stagnant. The president of the company is an older gentleman and mostly works from home. He makes decisions through meetings with his managers over the phone and is rarely seen at the company. Mid-level managers don't have much contact with each other and basically focus exclusively on their individual departments. The rest of the staff members are very distrustful of management and there has recently been a lot of turnover. Outside of interoffice griping, there is rarely any company wide communication.

Recent economic developments and technological advances in the widget industry have resulted in a greater demand for widgets in emerging markets, as well as in the U.S. In order to stay competitive, ABC Company is considering expanding its operation globally. ABC has come to you, an expert on organizational change, for consulting advice. Evaluate ABC's current OCC. What advice would you provide in order to better position ABC to successfully implement this change? Be as thorough and specific as possible, covering as many issues as you can.

Homework Answers

Answer #1

after reading the case, it is noticed that the market demand for the products is good, and expected market demand is much higher in future. If ABC company do not capture this, some competitors enter into the market and they grab the market of ABC also.

The problem is with the people and management in this organization. Usually the leaders/mangers should meet the workers regularly, atleast twice in a week and expain about the proposals, targets, their plans and should know the problems, issues of the employees at floor level. But here the situation is reverse. The Precident of the company do not turn to the company regularly, takes decisions only by talking with managers by phone. The managers do in the same way, they simply sit in their cabbins and proceed with their works. There are no relations at all among the people in the organization, which is the major cause for all other problems.

It should be addressed first. My suggestions to comeout this problems are:

  1. Gather all the people in the company with a formal meeting. All the people must attend the meeting without fail. Once they attended, I expalin the current situation, the problem of untrust to the workers on management, about turnover. Next I ask reasons those people only. I listen them carefully and list what ever they said. Once their part is done, i starts mine.
  2. First the precident has to come and stay in the company regularly and spend time with all the employees. of corse, if there are any official meetings with customers, or any other delegates, then he can left the company. Next, the precident should call all the managers individually and all together atleast once in a week. In this meeting they should discuss about the progress about past and plans for future. what are the potential problems they are facing, what are the reasons for those problems, how those problems can be overcome and so on.
  3. Next, it is the responsibility of functional manager to inculcate trust among the workers and lower level employees. for this, they need to be with the workers in regula interwells, observe the process, have some interaction with them, inform about their plans, ask suggestions or openions from the workers.

Emplooyees are the core assets to any firm, they can change the fate of any organization if they wish. The success or failure of any company depends on its employees only. If these employees were educated about their position in the market, their prospective future and growth, they wont leave the firm. Once the employee retention rate is higher, automatically the productivity also higher.

I can solve this issue in this way, I can not say that this is the only solution, but to my level, is the best one.

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