Organization Theory Design
Daft, (2010) defines organization as a diverse corporate affair, a bank or a government agency that make up of people setting policies and procedures and interact with one another to perform essential functions in order to attain organization goals. Daft, (2010) further ague that organizations cannot exist without external stakeholders like customers, suppliers and competitors. Thus, organizations are very important because they create values for customers, owners and employees. Moreover, modern organization facilitate innovation and produce goods and services as well as bringing together resources to achieve desired goals. Despite the benefits that organizations create to society, different organizations face both internal and external problems that require effective organizational design.
The paper analyzes the integrated case of Empire Plastics, identify the problems that the organization is facing and suggest effective organization design for the company in order to resolve the problem.
Key Fact
The Empire Plastics was facing challenges in successfully completing the latest project that will deliver profitability for the company. The latest project was aimed to increase production rate of oleic acid and Ian Jones, the production manager of the company was pondering on the strategy to implement in improving productivity with the latest project. While the installation of the project was successful, however, the "Wet End" machine did not work for practical a year after the installation. Although, Jones had known all along that a new project such as "wet ends" might prove challenging to implement, however procurement department recommended its use.
Jones had been appointed as commissioning manager of the project and Henry Holdsworth was appointed as site project manager and John Marshall was appointed as construction engineer. While the project team seems very good and ambitious with sign of progress from the beginning, however, Marshal lacks enthusiasm on the project. Traditionally, Empire Consultant assumed the role of directly organizing, managing, and discipline contractors; however, this project involved two management contractors. There has been a considerable issue of the management not clearly defining the role of each of the employees in the management and selection of contractors. For example, management did not clearly define the role Marshall and Holdsworth in the project making both of them unhappy.
There is also an issue of inefficient management of contract fund because the project was being managed by two contractors making the cost of the project to increase. Typically, "wet end" construction costs £3.1 million while "dry end" contract costs £6.0 million, and the role of Empire Consultant was to act as construction policeman to see that the process diagram was being followed and safety requirements are maintained.
There was also the issue of role confusion because the organization did not clearly define job of each employee within the organization. For example, selection and management of contractors had been done entirely by Jones and Holdsworth. Moreover, over 50% of total of materials procured had been done by Jones and Holdsworth. However, John Marshal, the construction engineer was not included in the selection and management of contractors.
External Issues
The external issue has been the fundamental problem facing the company. The company has not been able to manage its external contractors effectively, and there are conflicts between the contractors. As being discussed earlier on, the Empire Plastics was using multiple contactors to implement its project. For example, Sultan Engineering was a supplier of materials that the company would use for the project, however, Teknibuild, who was the management contractor faced challenges in collecting necessary information from the Sultan Engineering in order to design the steelwork. The issue was that Sultan Engineering identified Teknbuild as inefficient organization that did not have enough data to design a project properly. The issue led to a conflict between the management of Sultan Engineering and Teknibuild. As Marshall had remarked, the discipline of Sultan Engineering was always against the discipline of Teknibuild.
Symptoms
Organizations always face challenges when introducing a new project. Problem of information sharing has been one of the major symptoms when introducing a new project. In the case of the Empire Plastics, the technology at the dry end was very new and could prove challenging during the implementation.
Moreover, there is no formalized job description for each head of the department and the company does not well define the specific role to be performed by each head of the department. Moreover, the company is facing external conflict with its supplier. For example, Empire Consultant (EC) is supposed to procure the materials such as cooler, dryers and other more than 300 parts from Sultan Engineering, the company suppliers of materials. Unfortunately, Teknibuild who was the management...
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