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Case: The Dim Lighting Co.
Macro Problems
The macro problems in the Dim Lighting Company’s case study are as follows.
- First of all, the macro or large scale problem is the fact that the organization failed to recognize and achieve their targets because of which the profit margin fell by 15 percent. This is a large-scale problem because this problem will affect the whole of the subsidiary as well as the parent company.
- The second macro problem is that the company’s product range has become outdated. There are newer technologies out there and the company will lose out on customers if they fail to make use of these technologies.
Micro Problems
The micro problems in this case study are the problems that affect a smaller portion or division of the organization and will not affect the whole company as a whole. They are as following.
- The first micro problem is the need to make a choice. Negative results will accompany any decision that the west makes. If west decides to accept Spinks’ proposal there is a risk involved which is the last thing that the company needs. On the other hand, if he rejects the proposal, Spinks will resign. Besides this, if West accepts either of the decisions, it will mean that he is rejecting the decision of the other two department heads. This may cause de-motivation among them.
- The second micro-level problem is the need to ensure that this year is not as bad as last year otherwise it will inhibit the west’s long-term advancement.
Causes
- The cause of the fall in profit margin could be that the company is not operating that efficiently and their operating expenses are increasing. Besides this, the direct costs like raw materials could also be increasing because of which the gross profit is falling. This will cause the net profit to decline and as a result, the profit margin will fall.
- The cause of disagreement is already in the case study. Two directors think that it is a sensible decision while the other two argue that the risk is not worth it
Systems
- The structural system will get affected because if any director quits, the structure of the organization will change.
- The psychosocial system will get affected because any decision that West makes will cause bitterness in the minds and hearts of the directors whose decisions he rejects.
- The managerial system will also get affected as the directors who are a part of the administration and a disagreement between them will negatively impact this.
- And lastly, the goals system will also get affected. If West accepts the proposal and it is not successful, the goals that were decided will not be achieved and if he rejects it, the goals developed by the research and development department will get affected.
Alternatives
There are alternatives are as follows:
- Either West can accept Spinks’s proposal and put the budgeted amount of money at risk.
- Either he can listen to the production director and invest that money in the machinery he asked for.
- Either West can decide to not take up the above two options and concentrate on improving the profit margin and other problems faced by the organization last year.
Recommendations
- I recommend that West adopts several strategies that analyze the risk involved in projects and base his decisions on the results he gets from this.
- Besides this, he should have individual meetings with each director and must explain and make them understand the situation West is in so that the aftereffects of any decision that West makes can be avoided.
Case: The Old Family Bank
Macro Problem(s)
The macro-level problem is that the Data Processing department has low productivity despite the fact that they are provided with good working conditions. This is a problem because this department consists of skilled employees and even besides that, the productivity level is very low. The organization as a whole is getting affected because this unproductive department, which is important to the bank, is not fulfilling its functions properly.
Micro Problem(s)
The micro-level problem is the low motivation level of the employees to work harder for the Bank. They are no loyal to the organization and they believe that the management is not fair when it comes to treating and paying them. This is a problem because there is a feeling of discontent among the employees which is interfering with their work.
Causes
The causes for the low production units of the Data Processing departments are as following
- There was a feeling among the department’s members that the management was more concerned about the work and not the staff. This resulted in de-motivation which decreased productivity.
- The members of the data processing department felt that they were not getting paid enough.
- All the above causes result in a decrease in loyalty towards the company.
Systems
- The psychosocial system will get affected when there is resentment among the department members towards the management.
- Since these members were skilled, the technical system will also become ineffective as these employees will not work to the full of their potential.
- The managerial system will become more complicated as the managers will have to deal with de-motivated employees.
- And lastly, the goals system will also get affected. When the employees do not work to the best of their abilities, goals will not be achieved.
Alternatives
A few alternatives of this situation include
- Fulfill the demands of the skilled employees of the Data Processing Department.
- Ignore the findings of the interviews and keep operating the way it was operating before.
Recommendations
- I would recommend that the management holds a meeting with the skilled employees. In this meeting, the problems of the members of the data processing department must be heard and their demands must be formally addressed. This will eliminate the feeling of discontent among them and will hopefully improve the productivity rate.
- Besides this, I recommend that the working environment of the check sorting department should be improved. There will come a time when these employees will realize that the return they are getting is not enough for the way they have to work.
Reference
Brown, Donald R. and Harvey, Don (2005) Organization Development, Seventh Edition.
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