Symphony Seed Sales and Symphony Research Institute - Assignment Example

1. Analyse the environment and likely organisation structure of Symphony Seed Sales and Symphony Research Institute. Symphony Seeds Sales (SSS) and Symphony Research Institute (SRI) operate within a cross of what Mintzberg called as The Professional Bureaucracy, The Divisionalized Form and the Adhocracy. The reason for this is that both of these subsidiaries were established not just as a separate sub-organizations designed to complement each other’s operations and pursue a complementary organizational goals that require them to work together. The fact is that they must operate within one organization but is complicated by the necessity to profit from their relationship. As a subsidiary of a larger company both SSS and SRI are characterized by the standardization of skills and functions as well as diversified markets to perform the wider organizational objective in the agri-business. They operate in a larger and comprehensive strategy under the direction of a single management, the Board of SS. Respectively, they each operate within a high degree of horizontal and vertical job specializations in such a way that there is standardization in both skills and output. It is in this respect wherein they fall within the Professional Bureaucracy and the Divisionalized Form. The Adhocracy enters into the equation mainly in the area of Planning and Control. As the case study stipulated, there is a corporate objective, strategically and systematically implemented with the use of automated administration system as well as audit and performance mechanisms. Here, there is also the important role and managerial power of the middle management, the Land Development Corporation and the SS board. And so, in some aspects, particularly in short-time or day-to-day functional management, SSS and SRI appears to be a simple bureaucracy, with independent management trudging on to effectively achieve the set corporate goals. However, and at the same time, both of these organizations have to follow stringent policies and strategies outlined by higher management and compliance is strictly monitored and audited, underscoring a centralized decision-making as well. 2. Discuss the role and purpose of the Land Development Corporation and why Conglom did not choose to operate SSS and SRI as a unified organization. The Land Development Corporation (LDC) was established primarily to manage all Conglom’s agricultural interests – the Symphony Research Institute and the Symphony Seed Sales. Its responsibility is to formulate strategies, policies and dispense some managerial functions that govern SRI and SSS. For instance, although Symphony Seeds is in-charge of the managerial function, it could revise the way such function is dispensed with. LDC was established because Conglom is a fundamentally a holding company and LDC is the only way it could effectively manage the two organizations to profitability. With LDC, a formal organizational structure has been established so that Conglom was assured that the strategies being pursued by its subsidiaries are effective and profitable. It is also helpful to underscore this aspect by citing that LDC is composed of Conglom’s directorate and members of the SSS and SRI’s central management agency, the Symphony Seed Management Committee. Besides formulating strategy and overseeing management, LDC also functions as the forum wherein lower management communicates and negotiates with Conglom in regards to strategies and all matter affecting operations. Through LDC, Conglom was also able to successfully operate SRI and SSS as separate organizations. Conglom is keen on maximizing profitability and this is highlighted in the effective practice of inter-company trading. More importantly, however, the strategy reflected Conglom’s desire to retain successful management styles and perspectives. This is in line with the very nature of Conglom as a holding company as well. Its contingency strategy is based on Mintzberg’s position that the larger the organization, the more elaborate its structure, the more differentiated its units and the more developed its administrative components. LDC and SSMC had been seen as the best approach to integrate the two companies without disrupting too much both their functional operations. In fact, the only major change that happened after Conglom acquired the two companies was the change in the management team and nothing else. SRI and SSS continued on as if nothing happened, except for the periodic evaluation and changes in strategies, which could have easily happened as well during the tenure of the earlier owner. 3. Discuss the problems of evaluating the performance of the two Symphony companies from Congloms perspective and comment on the problems of inter-company trading. Essentially, Conglom is too far removed from its agricultural subsidiaries – Symphony Research Institute and Symphony Seed Sales - to successfully evaluate performances all the time. For example, if it needs data from each subsidiary, a process that is closer to tedious has to be initiated. From SRI and SSS, the data will pass through Symphony Seeds, LDC, then, finally, Conglom. This also works the other way when a new or sudden performance policy has to be implemented or an organizational change is deemed necessary from Conglom’s perspective. The same process would also have to be undertaken. One can say that the whole Symphony Seed has a technological infrastructure that allows for the speedy and accurate transmission of data, but one cannot say that the formal hierarchy has to be overridden in order to assess SRI and SSS performance. Through LDC, Symphony Seed and the respective management structures of SRI and SSS, Conglom has established a bureaucracy that could prove difficult to swiftly navigate. This is best demonstrated by citing the decision-making process: LDC meets bimonthly, but before this a series of other meetings must take place in preparation. There is the Symphony Seed Management Committee monthly meeting as well as the SRI and SSS own monthly management meetings. Conglom may not have any problems with performance evaluation particularly that it has set periodic performance audits according to its 5-year plan performance assessment. But this takes place annually, every September/October. The company can face difficulty if performance evaluation has to be immediately undertaken. Finally, there is also the problem about inter-company trading. When SRI and SSS trade with each other, they record their respective profits and losses arising in such interaction. This becomes problematic as both belongs to one entity and that profit is calculated collectively under Symphony Seed management and accounting. For instance, if SSS purchased seeds worth $100 dollars from SRI and sold it externally for $150, the $50 profit has been realized from the holding company’s viewpoint. Here, adjustments necessary in order to determine profitability specific to each subsidiary becomes a dilemma. Word count: 1001 Read More