Managing Organisational Communication - Essay Example

The style of management was autocratic, with the decisions being made by the director of transportation service solely and promoted by the chairman of the transport committee, a very “powerful personality” able to overrule anyone, who tried to intervene with the managing process. First, there took place change in the political power, a new transport committee chairman was appointed and the company’s managers were made “accountable to their electorate”. Certainly, the old director of transport service, as well as the rest of the board, didn’t like to be commanded and told what to do.

So there were constant arguments between the politicians and transport officials. After the company was sold out, it happened so that the board of directors was mostly formed out of the former members of the board of directors, by those who were not used to make decisions or introduce any changes. Obviously, these people were old. All their life they had worked within the conditions of the stable market environment. Moreover, the company was public and so was under the protection of the state.

Now it was necessary to think. It was obviously difficult for them to understand that the market had changed and new conditions demanded a new way of doing business. Eagle Buses wasn’t the only company like that. The whole Western business world faced similar problems since early 1990s, when market conditions started changing so rapidly that many companies could not master the situation and had to announce bankruptcy. So when young and energetic managers were appointed as chief executives the board of directors made an opposition to most of their initiatives.

The directors of old formation feared to risk their money, not realizing that without investments it was impossible to develop the business. 1. In the competitive and ever changing conditions of the global market economy it is of vital importance that a company can adapt to new circumstances. In order