The paper "Controlling Information Services" is a great example of a Management Case Study. There is a 30% massive blow out of the salary budget due to poor accounting as well as unexpected computation forecast done on retiring staff’ s superannuation bills. Cutting of staff costs by the end the organization’ s financial year which will end in nine months to come The contract of two contractual staff is not to be renewed. The advantage of this action is that the team budget may have financial backing. The disadvantages are that the operations of the remaining staff and their morale will be negatively impacted Deeper issues that underpin superficial problems Organizational structure Within the remaining nine months, the CEO is pressuring the team to lower the budget by cutting the costs of staff by 20%. Operational plan policies and procedures There will be additional workload due to the laying-off of two contractual staff as the members work harder to maintain the operations. Due to the loss of the two contractual staff, the cost of the staff budget may lessen There may be variations in operational procedures as the remaining staff will need to be re-assigned in order to do additional work from the two contractual staff Emotional climate Due to an increase in workload as a result of the loss of two staff, the morale of the team is may below. According to Gunderson (2007), the budget cuts on employees may lead to quitting from the jobs and uncontrolled pressure to reduce services. Delegation strategy Such challenges experienced in this case usually result from poor communication between various levels of management.
Thus the organization’ s CEO requires to communicate effectively with the department of finance There is also poor forecasting of the budget in the organization and this means that they need proper coordination and participation in order to come up with appropriate budget forecasts. Management theories Emotional climate According to Gunderson (2007), budget cuts on employees may lead to a gradual emotional change of employees which negatively affects the operations through quitting in jobs and complaints due to dissatisfaction of employees.
An uncontrollable workload may easily lead to physical and emotional stress. According to Vezner (2006), such pressure for cutting the cost of your staff can negatively affect leadership capabilities. Communication system There is a dire need for effective communication between various levels of management and departments in order to make an informed decision on the budget adjustments Organizational structure Due to the drastic changes in the workforce that is the heart of the organization, the finance department requires a well structured financial plan in order to prevent more damages in the entire organization (Avolio, Walumbwa, & Weber, 2009). Outcomes Positive outcomes The ability of the organization to achieve its budget for the financial years. Ability to settle superannuation bills for the retired staff. Negative outcomes The emotional effect on loss of job for contractual staff Possibility of losing valuable and talented full-time employees due to an uncontrollable workload. Plan B: Risk management There is a need for the organization to conduct thorough research on financial records in order to pre-plan any future challenge Superficial problem: To implement a new website for the Health department Provision of hardware, software as well as network support services to the staff of this department To make an informed decision on whether to outsource hardware and software support services or not A plan to provide internet access to regional health centers Development of a future strategic plan for the Development group and Multimedia Design Assess the possibility of partnerships with other departments in the government. Daily management and monitoring of operations for both the section and each of the four teams Working within the time and budget constraints without compromising the quality of the required standards Deeper issues underpinning superficial problems Operational plan policies and procedures Designing systems for control of operations to ensure that the availability of both assets and services and daily activities are consistent with established constraints. Effective management and monitoring of the performance of a variety of operations in different sections by different teams According to Kyriazogou (2010), investing in funds is very crucial as it will be required to effectively recruit the right pool of people to work with imperative resources. Culture Fitting to the culture of various departments in order to ensure efficiency in the development of interactive multimedia products as well as services within the time and budget constraints Delegation strategy Delegation of various operations among the teams while ensuring that they are within the time and finance limits Delegation of the duties according to the decision made which is either through outsourcing or otherwise. Emotional climate According to Gunderson (2007), dealing with a variety of employees at different levels while ensuring that the outcomes are controlled and met maybe stressing to the leader as in the case study. Management theories Operation plan policies and procedures The accessibility as well as the availability of network especially in the regional health centers which is very essential in accessing the website In order to ensure continuity and availability of the services, there is a need to plan for ways to provide an alternative in case of breakdown of the system (OECD, 1995) Planning for operations for upgrading the system in terms of hardware and software. Delegation strategy Appropriate delegation of tasks and activities for the establishment and development of the website Ensuring that every member achieves the expectations of the clients Outcomes Positive outcomes include successful facilitation of the new website for the Department of Health by meeting the standards Negative outcomes include loss of crucial resources and the character of the leader of the operation which may also lead to loss of employment. Plan B: risk management Given that such information technology systems usually experience failures, there should always be a back-up plan to prevent halting of the crucial department Gaining the confidence and support of the client and partners assuring them your undivided commitment to the operation. Superficial problem Difficulty in working Working overtime Deteriorated work relation with the CEO Poor diet and lack of enough exercise Family issues due to lack of time Difficulty in finding another job Deeper issues underpinning superficial problems Organizational structure There is a lot of pressure in work which has led to working for long hours even at weekends Operational plan policies and procedures Due to work overload, it may be difficult to maintain operations successfully Difficulties in working may make it impossible to achieve objectives according to the performance management system Emotional climate Due to frustrating constraints, the employee may lose morale leading to negative impacts of the success of the organization Due to work frustrations, the employee find it difficult to balance work with family issues which has affected work and the family The current workload may lead to deterioration in performance and in turn loss of employment Delegation strategy Insurmountable problems and frustrating work constraints may lead to poor communication between the employee and the CEO and also with the family members.
Thus, the success of the organization will depend on effective communication. Management theories: Emotional climate Gunderson (2007) states that pressure on employees due to work conditions may lead to emotional changes that negatively affect the performance of employees due to physical and emotional stress. Pressure in the workplace may also lead to deterioration in leadership capabilities. This can also be transferred to the family as in the case study. Communication system In order to enhance success in the place of work, there is a need for effective communication between and among employees at different levels Organizational structure With such problems as well as frustrations in work constraints, the functioning of the organization may be jeopardized.
There is a need to restructure delegation of its duties and responsibilities in order to ensure a smooth running and achievement of the individual as well as organizational goals (Jessup, & Valacich, 2008). Outcomes The positive outcomes include identification of the problems through management performance interviews where an employee will get an opportunity of doing adequate and quality work within well attainable constraints.
In addition, the employee will be able to identify where he or she is good at for the benefit of both the employee and the organization. The negative outcomes include the possibility of losing the job due to failure in achieving the objectives that the individual has set. In addition, the pressure exposes the employee to illnesses due to poor diet and lack of exercise as well as family conflicts. Plan B: Risk management Since the employee is experiencing serious challenges in matching his or her skills with the responsibilities of the job, it is advisable he seeks a job somewhere when he can balance work and family.
Avolio, B., Walumbwa, F., & Weber, T. J. (2009). Leadership: Current Theories, Research, and Future Directions, Management Department Faculty Publications Paper 37.
Gunderson, M. (2007). Town clerk quits over cuts in staff: Budget woes force reduced services. Retrieved from http://search.proquest.com.ezproxy.ecu.edu.au/docview/405081370
Jessup, L. M., & Valacich, J. S. (2008). Information Systems Today (3rd ed.), Pearson Publishing
Kyriazogou, J. (2010). IT Strategic and Operational Controls, Retrieved from http://reader.eblib.com.au/%28S%28bnoag0ok0aub2ehdmhzpccay%29%29/Reader.aspx?p=592634&o=74&u=461C086B08&t=1351282261&h=3111A306626E57D6A0EF9AFA42891E869D9E4059&s=7091741&ut=168&pg=25&r=img&c=-1&pat=n
OECD (1996), Management Control in Modern Government Administration: Some Comparative Practices,Sigma Papers, No. 4, OECD Publishing.
Vezner, Tad. (2006). Budget cuts difficult for staff, board. Retrieved from http://search.proquest.com.ezproxy.ecu.edu.au/docview/380049080