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Introducing the Main Issues and Problems Drawn From the Case
The case under analysis discloses the problem of the working team’s reluctance to undertake shifts in company’s hierarchy. In particular, Alpha Plantations, an oil palm processing company has long been under stringent control of Mr. Ang whose non-compromising authority did not let the managing staff take any responsibility for daily operations (Hassan and Thivagar, 2002, p. 630).
Taking excessive control over the company’s members and hierarchical company’s structure does not provide a favorable ground for achieving performance improvement. In other words, the power and influence of line authority has been overestimated and situation needs changes to re-direct the managers’ obligations.
Aforementioned problems with hierarchical company’s culture and improper distribution of responsibility are not the only ones contributing to the recession of company’s profitability.
Particularly, Mr. Davison’s survey has also revealed that lack of proper information deployment among the company’s members also engrosses the performance potential. Lack of communication among the departments hampers better cooperation that contributes negatively to the production process.
Theories, Approaches and Concepts Relevant for Solving the Problems in the Case
In order to understand the power of authority and its negative impact on company’s performance, it is necessary to conceive the questions of power, delegation, and authority. On the one hand, one should admit that the concept of authority is influential in the sphere of management. In particular, it enables the managerial stuff to control performance and exact obedience.
On the other hand, the concept of authority can differ greatly. In the case at issue, this position is taken from negative viewpoint, because Mr. Ang’s overwhelmed authority influences personal preferences and deprives the working team of any initiatives on the production process.
Being in charge of company’s activities, Mr. Ang’s should also worry about the employees’ development and ability to adjust to changes. Due to the fact that the concept of authority involves such traits as credibility, transparency, and legitimacy, the latter two are missing in this particular case.
Transparency and communication deficiency is another gap to be fulfilled. Due to company’s ignorance of the main shifts in company’s performance and management, the working team was largely dependent on Mr. Ang’s orders. In order to solve the problem under consideration, it is necessary to resort to the motivation theories that cast the light on problems correlated with psychological contract.
With regard to the case, Mr. Ang has failed to consider his employee’s expectations, attitudes, and preferences in work. At the same time, the excessive power and leadership will make it challengeable for people to get accustomed to a new company’s culture, which has led to further losses of performance and profitability.
Conclusions and Recommendations
In conclusion, Mr. Davison’s plan has been quite consistent and efficient, but its failure revealed that technological advancement and re-appointment of position is not sufficient for eliminating hierarchical company’s culture. The deterioration of team performance, hence, was due to Mr. Ang’s termination from his position. Mr. Davidson was wrong when introducing drastic changes to the company’s organization.
With regard to the above problem, the first step to be taken for improving the situation should involve a more careful consideration of psychological and cultural aspects.
In particular, the manager should conduct interviews and survey to understand the employee’s individual needs and problems. Indeed, a psychological analysis of company’s preferences can facilitate the team’s adaptation to a new cultural and organizational framework.
Reference List
Hassan, A. and Thivagar, V. (2002) High Noon at Alpha Mill. Organisational Behaviour on the Pacific Rim. US: McGraw-Hill. pp. 630-633.
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