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The Rose Company

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Submitted By oceanie23
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Rose Co. Case study
Situation analysis * The Jackson plant is an older unit in the Rose Co. that has not operated satisfactorily for several years; * The board of directors has approved the construction of a new plant with the expectation of achieving lower costs of processing and a reduction in man-power; * Rose Co. has decided to implement a new decentralized leadership structure; The goal of the new organization is to reduce cost, improve product quality and maintaining competitive leadership by gaining a production advantage by using new technologies, processes and new methods of production; * * James Pierce is assigned to be general manager of the Jackson plant; * He will be responsible for the management and administration of all functions and personnel, except sales, at the new plant.
Problems
1. Decentralized structure and new methods and process to implement (structure never tried and processes entirely new to employees and Pierce); 2. Administrative reporting issues (all head of departments used to report to their functional VP, now they have to report to Pierce);
Dotted-lined relationship (if executive insist on maintaining relationship with functional counterparts at the Jackson plant, problems will arise).
Solutions

Solutions prob 1 | Pros | Cons | Fair process | * Develop healthy relationship; * | | | | | Traning and coaching | | * Rise of costs. |

Solutions prob 2 | Pros | Cons | Employees maintain dotted-line relationship with functional VP as prior to change | * Communication is easy (prior habit); * Functional VP might be more effective than Pierce with experience accumulated through years of practice. | * Block of development of relationship between Pierce and new subordinates; * Conflicts arising questioning who is the real leader. | No relationship outside plant

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