Problems Facing Alpha Mill - Case Study Example

?Topic: Case Study-Management issues Problems facing Alpha Mill Alpha plantation deals with growing and processing palm oil for the parent company’s detergent processing business. Its top management originates from the parent company in the UK while junior staff is selected from the local workforce. Mr. Ang is such a worker who has grown to become a senior supervisor in the company. The senior supervisor is assisted by two junior supervisors who head the team of seventy five operators. The company practices a bureaucratic rule where the operators follow the instructions from the junior supervisors. Junior supervisors are answerable to Mr. Ang. Mr. Ang is in charge of the production operation and answers to the mill manager. The company’s operations were profitable until 1999 where the increase in supply caused prices to reduce. The mill manger was fired due to these losses and a new manager appointed (McShane, 2010, p. 631). Lack of technology An analysis by the new manager found that the company needed substantial upgrades from the way it conducted its operations. Ian Davison needed to ensure that operating costs were reduced, and profitability increased. Ian analyzed the condition of the plants equipment and found that the company used old machinery that required manual attention compared to the equipment in the market. As a result, labor cost was high as it required seventy five workers. The change over time due to manual machinery caused the organization to have reduced performance that would be remedied by modernization of the company’s equipments. Bureaucracy Information transfer in the organization was not facilitated with the bureaucracy in the company. Communication of information from the junior staff to the senior staff required protocol to be followed that affected information transfer. The hierarchical in the organization was not time efficient as basic problems solvable through worker interaction were run through management before implementation. The use of old machinery resulted to loss of materials due to low quality goods produced and wastages in raw material (McShane, 2010, p. 642). Speedy implementation of change Culture in the organization refers to the behavioral treads in the organization cultivated over time and defines the operations of the organization. The new manager’s analysis and problem solving techniques were operational and had the potential to change the profitability of the organization. The problem was the mode of implementation. In the first instance, there was a conflict between the old and new operational policies in the organization. The mill manager Ian had decentralized the decision making powers to the operators for simple problems requiring immediate attention. Ang as the senior operation’s supervisor still applied his previous roles in the organization. The conflict in roles was counter productive with the organization not benefiting from the changes. The speedy change in the organizational culture from pro bureaucracy to a decentralized mode of operation was the cause of the second phase of productivity slump. The roles of the production supervisor were not defined in the new change of operation which meant t supervisor the supervisor had minimal effect on the organization. The previous operation model with the supervisor as the head of production department even after promotion to an executive role needed to be gradual to ensure that the organization adapts to changes in the culture. The slump in productivity was witnessed after Ang was fired. Theories used in problem solving Maslow's Hierarchy of Needs The case shows the problems organization may face in the change of management and organizational culture. The Maslow's Hierarchy of Needs theory can be used to explain some of the problems facing the organization in the case study. The new management brought about a way of operation different from the conventional methods of operation. The change was accepted by the workers with excitement while others feared for their jobs. With loss of workers, the organization could operate efficiently through the modern equipment bought. Depression as witnessed from Ang’s lost his role in the rapidly changing organization follows as part of the management change theory. The operators would gradually accept the changes and move forward to ensure that the changes brought about efficiency in the organization (McShane, 2010, p. 621). McClelland's Theory The McClelland's Theory considers achievement, affiliation, and power as key in worker motivation and response to change. To ensure correct application of the changes to the organization, Ian should have implemented the changes in a gradual but systematic order. The problem that the organization was facing was the adoption of the new method. Ian’s proposal was to steer the organization out of its financial problems but the organizational culture that the workers were used to needs to be considered. The right procedure to follow would be implementing a gradual change of culture to give the workers time to adopt. This was evident from the case when the workers were given the opportunity to make errors and learn from them without the interference of Ang. The productivity of the organization firs plummeted then improved when the workers learnt how to make decisions on by themselves. Theory X and Theory Y of human motivation The Theory X and Theory Y of human motivation explain the response of the workers towards changes in the organization. The move by Ian to remove Ang from his position through a promotion was wrong because it was done at the wrong time. Ang was among the few members of staff that had been in the organization for long and whether active or not in the production line had considerable influence over the workers. Most of the workers looked at Ang for guidance thus a significant block in the restructuring process. Ian should have used Ang to implement his strategy into the organization. The workers cooperated to changes in the organization. Ang at the end of his speech during Ian’s unveiling the changes to the organization pledging that the workers would support the new manager fully. ERG Theory The ERG Theory describes workers needs as a hierarchy. The theory can be used in the case study to understand the reaction of Ang. The mill manager should evaluate existence, Relatedness, and Growth before considering radical changes that would affect the workers motivation. The manager after observing Ang’s behavior due to depression should have approached him and discussed the issues facing him. Ang with an understanding over the workers and Ian with an understanding in the management field could have come up with a solution to the problem facing the organization. From the arguments between the workers, it is evident that Ang’s role in the organization was a crucial one. Although bureaucracy has its faults, decentralization of the organization has it faults too and needs to be controlled to ensure some order in the organization. Using both decentralization and bureaucracy in the organization would ensure a smooth transition into the changes implemented in the organization. The new manager’s solution towards steering the organization into profitability involved installing new technology and automation of the organization. The effect of this move would be felt if the organization were to implement installation of technology in stages to enable the workers to adapt to the changes (McShane, 2010, p. 656). Recommendations Alpha mill has been operational for a long time in which the company has acquired a long cultural history. The company’s operation had been profitable to the organization until the influx of palm oil into the market. This caused a decrease in prices thus profitability affecting the organization operation. A change in management was witnessed with Ian replacing Captain Chubb. It is arguable that a change in management was required to change the organization around and return it to its profitable ways. Introduction of technology Ian’s approach was to evaluate the organizations operations and evaluate the weak links. His research yielded that the organization should undergo radical changes. Weaknesses in the organization included the machinery used in the company. The machines were outdated resulting to low quality products that are not competitive in the market and cause a lot of wastes. According to Ian’s analysis, the organization needed to shift from the bureaucratic management to centralized management enabling workers to make minor decisions for the organization’s growth. This was aimed at enabling workers to make quick timely decision and specialization in the production. This method would result to losses but become profitable with time. The method was aimed at enabling workers to learn from their mistakes (McShane, 2010, p. 631). The new manager’s plans brought changes to the organization, but the speed of implementation and the mode of implementation affected the organization. The changes took place rapidly for the workers to adapt, and this caused the organization to suffer losses. A change to the organizational culture was done rapidly causing some posts in the organization to be redundant. The senior supervisor role in the organization was no longer influential compared to the previous culture. Disputes between the workers were unheard of during the previous culture began to manifest in the organization being a case of implementation of the new strategies. Gradual implementation of change To ensure that the organization would regain its profitability, it is recommended that the management implement the changes in the organization in such a way that the laborers are able to familiarize with the changes. Introducing technology into the organization can be done sequentially to enable the organization to introduce the new concept to the workers. This gives the workers time to understand and use the new technology. The change of culture can be achieved in stages through implementing the new culture to assimilate the old culture. The rapid change of culture was the cause of failure of the new management. Firing a member of the workforce respected by the other workers due to immense skills was not the right move for Ian to make. Communication Ian should have approached Ang instead of firing him. Communication would have solved Ang’s issues in the company as the two men having skills in a different field could have communicated. They would have reached a suitable solution rather than the loud out burst that resulted to Ang’s dismissal. Such public displays between leaders in the organization should be avoided through dialogue. To solve the problem, it would be advisable for Ian to incorporate his senior staff in his plans to ensure that the organization moves forward. Ian should be vigilant to detect any changes in the organization and ensure that they are addressed to ensure that the organization is profitable (McShane, 2010, p. 669). Bibliography McShane,S.,Olekalns, M., & Travaglione, T.(2010).Organizational behaviour on the pacific rim (3rd ed).London:McGraw-Hill" Read More