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Lecturer: Congruence Analysis: Stone Finch, Inc. Case The congruence models bases its strength on the fact that the performance of an organization is based on four strategic concepts. These are the tasks, the people, structures and the culture in place. When congruence is higher, the performance is also bound to be high. The diagram below shows the interaction between performance and strategy through use of the model;Source: BezboruahWith reference to the Stone Finch, Inc case, the following summary takes to account all factors relevant to describing the congruence model.
Analysis of the separate elementsInterrelationship of the Elements of the Congruence Model at Finch i. Tasks and peopleThe relationship between the tasks and people at Stone Finch Company is that of confusion and mismanagement. Jim Billing is making decisions that are detrimental to the cause of the company (Harmamesh 3215). For instance, he ineffectively proposed and oversaw the integration between the different categories of the subsidiaries. Dissatisfaction in the tasks has led to people leaving the company at an alarming rate.
For instance, Saunders contents that he is staring at three resignations from his top sales people because of dissatisfaction. Work and Structure The sensitive point is the relationship between the subsidiaries and the way they are respectively managed. The structure is not compact and flexible enough to realize a need for change amid growing levels of dissatisfaction and employees. Structure and People The structure does not seem to give rise to sufficient manpower to manage the available work processes.
Decision making processes are not fruitful in the long run. Saunders seems to blame Jim for proposing the merging of the subsidiaries. This is a structural decision that left the sales people asking to resign. People and CultureThe people seemed to have embraced the culture without much ado. High quality products as an aspect of culture were being realized with people working for 20 hours a day but not complaining. Culture and WorkThe culture used to support the nature of work done but there is a fast changing situation.
Structure and CultureThe structure (attached in the appendix) is not as compact as expected. For example, the president seems to be in charge of all operations while the second-in-command groups have little to do with the decisions of the company apart from financial. That is why the unity of all the subsidiary teams is not close and upheld. Maintaining CongruenceThe company management needs to make strategic decisions based on either contextual or strategic choices. Items of Strategic ContextReview of the subsidiary structure to uphold culture.
They need to remove the experimental subsidiaries and make a strategic structure. They need to integrate the policies Review the motivational structure of their employees to stop employee turnover.Strategic ChoicesStop the friction between the different subsidiaries by integrating the policies and rules. Create a unification program for the subsidiaries. References Bezboruah, Karabi C. "Applying the congruence model of organisational change in explaining the change." Organisational Transformation and Social Change 5.2 (2008): 118.
Harmamesh, Richard: Elizabeth Collins. Stone Finch Inc. Young Division, Old Division. Print. Harvard: Harvard Business School, 2010.
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