Reorganization of the Tuckers Company - Assignment Example

The decision Reorganization of the Tuckers Company by Mr.Harnet, the CEO of the company leads to numerous readjustments and realignments in relation to the operations of the entity. The formation of three new departments did not factor in the needs and the development requirements the employees had been used to over the years. Observations after these operations indicated a loss of trust in the management of the enterprise and hence demoralization of the work force (Study, 1987). Trust is an essential part in managing people and building high performing organizations .It forms the foundation of all kinds of relationships in planning and operating companies and organizations. The new CEO changed the way operations of the company were being held with creation of new departments and their head that were to just operate as ceremonial leading all the operational duties to him (McKee, 2010). The main outcome of the realignment was loss of efficiency and trust of the employees on the management. The products of the company was diverse hence requirement of reorganization along the production lines ensuring that efficiency and reliability of production is achieved. Before the reorganization was implemented by the new management, there were no prior evaluation and assessment of the viability and needs of the reorganization plans. The new alignment would ensure that each section had its departments of procurement, laboratory, accounting, engineering and manufacturing. This ensured independence of departments hence no relation or utilization of services by one company in relation to the other. The result was lack of coordination between units in the same enterprise hence reduction in production efficiency for the long-term management. This was unnecessary for management since servicing with individual departments was exceptionally expensive and inefficient for the operations of the entity. The new CEO did not listen to the pleas of the veteran workers to change the approach of departmental management hence lead to inefficiency in management and company profit losses (McShane & Neale, 1998). Analysis of the decision The decision by Mr.Harnet in relation to reorganization of the Tuckers Company is an example of an individual’s decision based on the knowledge base without rational thinking and consideration of the well-being of the company. The decision relied on an approach of rational thinking and reasoning according to what he deemed fit for the wellbeing of the institution. The normative approach assumes that the individual is rational and makes a consideration of all the influencing factors before enactment of the decision. Therefore, the shareholders and stakeholders of the Tuckers Company believed that the needs applied for by the new CEO would enable prosperity for the entire institution. The judgement and decision of this individual may have seemed quite appropriate and applicable to him but not rational for the sake of the operations and wellbeing of the institution. This definitely had a negative impact on the long-term stability and wellbeing of the management of the institution. The decision of Harnet was not rational since he failed to factor in all the risks and disadvantages of the approach of management he was applying. The financial repercussions and efficiency of management of manpower outweighed the actual costs and benefits of the approach. His main feeling and need was to be the overall manager and operator of all the activities of the company without allowing the lower vice managers to run operations (Charles & Brian, 1978). Centralization of activities formed the chore of his needs to apply the new management model to the new workstation. The approach was not in concurrent to the theories of rational models of information management and decisions making in institutions and organizations. At the time of making decision Harnett was new to the organization and did not know the efficiency of the department heads and supervisors and their role in ensuring efficiency and profits creation to the institution hence the rush into decision of dilution of their authority along the operations chain. These limitations and disadvantages in relation to running of operations lead to the decline in profits of Tuckers Company and massive loss of effective employees of the company (Fitzergerald & Ayson, 2006). Some of the long serving heads of departments like Mr. Garfield who was the Laboratory Superintendent was transferred to another section and he immediately resigned to retirement. He was a darling of the employees and had the interested of the wellbeing of the company. Mr. Hodge the new head wanted to please the management of the company and was never efficient in carrying out his duties. This was one of the most clearly seen decisions by the CEO since it had a massive impact on the operations and well-being of the organization. The head of the laboratory services in the institutions was a dedicated and experienced individual who ensured success of operations with steady and quality attachment to the products of the entire operations. Employees out of anger and frustrations had to make decisions of leaving and stopping to offer their services to the company that was once lucrative and a darling of the workers. This was majorly due to the feeling of lack of trust between the new management and the services offered by the employees. Loss of experienced and dedicated employees was due to the changes initiated and implemented by the new CEO without consideration of the due processes and on grounds of individual thoughts and interests (Friedmann, 2009). After the reign of the new CEO for about six months, the company started to experience numerous problems in relation to understanding between different officials in the institution. There were conflicts between the departments due to inadequate understanding and coordination of the new individuals. Cohesion had massive reduction and rivalry thrived all over the company operations. Delays in operating of the needs and requirements of the departments formed the norm of the company. The approach of the new CEO in management decision had a continuum of rationality hence therefore the decision had a mixture of rational behaviour mixed and intertwined with non-rational behaviour. The decision maker should posses one objective that align with those of the organization and for the wellbeing of the organization. The alternatives need clarity, reliability and a preference from alternatives to choose from hence that would have lead to avoidance of management errors (Tolbert & Hall, 2010). Reflection If I were the new CEO, of the company, I would have made a decision that is not radical and changing the management approach in a comprehensive way. The decision would be based on a rational assessment of the available information and the needs of the company. Factoring the needs of the company in both the long-term and short-term needs would ensure that the best decision would be applied in the new management approach of the company. That would reflect on the rational models of decision making that have an assumption that decision makers are objective and have preferences for what is best for the institution in question. Taking into consideration the rational decision I would use application of the rational model of decision-making. It applies the subjectivity and expected reality of the decision made. This approach ensures that all the available options are factored in before a decision is made that would affect the well-being of all the operations of an institution. The subjective approach would ensure that the decision I make is personal and from my individual rational thinking and factoring of all the possible personal options at my disposal. From this model, the expected accuracy of the result would achieve 90% efficiency in case of choice A and 30 % efficiency in case of choice B. The utility of the options would ensure that value and happiness produced from both options are from the expected outcomes and can get evaluated quantitatively. This would determine the efficiency of the choice made in my decision in relation to alignments of management in the organization. The strengths and weaknesses of the previous management approach would aid in making decisions that effectively carter and solve the problems facing the needs and requirements of the organization. Moreover, my decision would not have individual approach from my own experience and knowledge. It would have a collaborative and integrated approach that encompasses the input of major stakeholders and key players in the sector. The management would get consulted extensively and comprehensively with aim of obtaining their input and wishes for the direction of management of the company. The senior workers form the backbone of operations and running of the enterprise. They have a wealth of knowledge and experience in relation to the operations of its activities therefore can help in determining of the needs of the company in both the long term and short-term experience. From experience and because of quantified knowledge, the more people and comprehensive a decision is the more rational and applicable it is. References Charles, B., & Brian, Q. (1978). Management Decision Making Models. London: Pearson Press. Fitzergerald, M., & Ayson, S. (2006). Managing Under Uncertainity. French Forest Pearson. Friedmann, L. (2009). Decision making and Conspiracies. Oxford : Oxford University Press. McKee, A. (2010). The human side of planning :decision making and critical thinking . Paris: Pearson Press. McShane, S., & Neale, T. (1998). The Tuckers company analysis. London: Free Word Press. Study, C. (1987). The Tucker Company. Tolbert, P., & Hall, R. (2010). Decision Making in Complex Situations. New York : Routeledge. Read More