Management Decision Part I (Essay Sample)

Management Decision Part I
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Institution
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Change of Business Management Culture
The best thing to do when a business appears not to perform is to bring a new change to the organizational structure and culture. This change has to be supported by the top management for it to be effective (Burke, 2009). As presented in our case, the organization is facing several challenges that need to be addressed. The former Chief Executive Officer, CEO, applied a formal and autocratic form of management and organizational decisions used to be made in a centralized manner. Although his system of leadership might be realistic, it resulted in several challenges. There was the possibility of employees protesting against the way they were being treated by the former CEO. Being an international organization, there are complains of slow decision making processes, and also the decisions made are not in accordance with the company's overall goals and objectives. These challenges are faced at a time when the firm is expecting to penetrate more competitive environments.
It is necessary for the new CEO to understand that a formal management and autocratic decision making process has been inappropriate for this firm. This calls for a change in culture and management practices if the goals and objectives of the firm are to be realized (Ferdinand, 1999). The first thing is to think of the presented challenges and the major quality issues that most likely seem to have contributed to such problems. Because this firm has many divisions in the United States and overseas, it is necessary to come up with new approaches in management and leadership.
One critical thing to be considered is to improve the firm's relationship with its employees. This is achievable by strengthening the decision making process. For the new CEO, it is mandatory to assemble a dynamic team for decision making processes. The team should draw members from all levels of employees and firm's divisions both locally and internationally (Burke, 2009). This will address the problems and issues affecting specific individuals in different divisions have been addressed during the decision making process.
The other important thing is to employ an informal managerial approach. This approach cultivates a good culture in the business by promoting interaction and sharing of information, experiences and ideas (Ferdinand, 1999). On the other hand, formal and autocratic managerial approach tends to instill fear thus lowering the business performance. Employees feel pressurized to perform and their eventual output remains small. On the contrary, informal approach creates a sense of belonging and voluntarism. This way the employees are open to the management and hence problems are easily addressed. As well, informal management systems encourage teamwork. When people are free they find themselves working for the benefit of the organization (Burke, 2009). The above promote sharing of ideas and eventually help to address whatever challenge faced in the firm.
The other approach capable of improving the firm's performance and solve the problems faced is for the new CEO to lead by example. A good leader is expected to practice the ‘major functions' of a manager. This is something ignored by the outgoing CEO of the firm (Pakhare, 2007). The first function is to mentor the employees and clients in the firm. This form of mentorship creates commonness towards the goals of the business. As well, it is necessary for the CEO to influence others in the firm. Influencing is a practice capable of improving employee participation thus promoting the performance of the business. Monitoring is also an important function as it helps establish positive performance in the firm and also makes su...