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Management issues: Problems facing Alpha Mill - Case Study Example

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Topic: Case Study-Management issues Name: Course: Professor: Date: 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…
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Management issues: Problems facing Alpha Mill
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Download file to see previous pages 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 ...Download file to see next pagesRead More
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