Beruflich Dokumente
Kultur Dokumente
Submitted by:
Group I
Animoza, Wabel
Fernandez, Androlito
Medina, Clarice
Sandejas, Benedict
Yu, Edilyn Ruth
November 8, 2014
I.
Synopsis
Malard Manufacturing Company, a producer of electronic control valves, is having problems meeting
the deadline for the launch of its latest product, the CV305. The companys Executive Vice-President, Ms.
Crandell, received a memo stating that the CV305 must be launched in the market within 30 days to
compete with the products of their competitors. However, due to the companys corporate culture wherein
they are only focused on their respective roles and lack of unity exist among departments, this might
produce some setbacks in the development process of the product. Thus, Departments heads believe that
the future work for this product should be done simultaneously with the help of other departments.
II.
What measures should Ms. Crandell undertake in order to ensure that the CV305 product will be
launched in the market in 30 days?
III.
Point of View
In this paper, we will be taking the point of view of Ms. Crandell, the Executive Vice President of
Malard Manufacturing.
IV.
Objectives
1.
2.
3.
V.
Areas of Consideration
1.
Currently, the Product Rollout Process in Malard Manufacturing takes 1-2 years for the introduction of
a new product. This process has worked effectively in making Malard a price-competitive Control Valve
manufacturer; however, the new CV305 must be rolled out in 30 days for Malard to keep itself competitive
in the market.
Strengths
Weaknesses
2.
Rollout
Process
may
be
done
simultaneously rather than sequentially, as
suggested by the Departmental Heads.
A structural change in the rollout process
may help Malard to be the first among its
competitors in introducing products to the
market.
A faster rollout process needs to create a
demand that will match the produced
supply. Malard may create a need for
faster Control Valve turnover among its
users, or create new markets for Control
Valve consumers.
Threats
The key departments involved in Malards Product Rollout Process are: Research and
Development, Engineering, Materials, Production and Marketing Departments. The electronic software for
control valves are currently outsourced.
Strengths
Opportunities
Weaknesses
Threats
ground.
3.
consumer.
Approval Process
All departmental heads consult with Ms Crandell, the Executive Vice President (EVP) of Malard
Manufacturing, for each decision. However, for the project CV305, Crandell is unable to keep track of
each detail due to the projects large coverage. She must now launch the product within 30 days.
Strengths
Weaknesses
Opportunities
Threats
VI.
Discussion of Framework
In every organization it is vital to have a structure so that it can be well managed. Having this
structure provides ease in decision-making process, dictates who reports to whom and who makes the
final decision. This also helps the organization in checking the process, in the case of Malard, their
product development process.
In the case of Malard, the organization is using a vertical structure since it is a big company with 1,400
employees as stated in the case. According to Allbusiness.com, Vertically structured or tall companies
have a chain of management, usually with a CEO at the top making decisions and then delegating
authority to lower level managers. In the case of Malard, they have the Executive Vice President (EVP),
Ms. Crandell who is part of the top decision makers and Department Managers of different divisions to
supervise the product development of the company.
On the other hand, horizontal structure also called flat, companies have almost no middle managers-meaning that high-level managers handle day-to-day tasks and usually interact with customers and frontline employees personally. In this case, Malard is also utilizing this structure since Ms. Crandell is very
tight with the control over the organization and handles the interaction with the Department Managers.
Companies with a tall organizational structure are better at designating tasks to employees or
departments within the company, have well-defined responsibilities for employees, and are generally
easier to manage, according to Practical Management. In addition, they are dependent on a strong leader
at the top. Weak upper management means that each successive hierarchical structure will get frustrated
by poor decision making by the superior.
In this case, we used the M-form, U-form and Matrix form to identify which structure best suits Malard to
develop a more viable development process and structure to prevent losing customer leading to profit
loss. It is evident that Malard is already using the U-form or the Unitary form. According to Qin Xiao
(2004), the U-form structure was widely used before the emergence of the large modern enterprises
(p.34). The earliest vertically integrated large enterprise usually adopted the U-form structure, an
organizational structure in which general managers directly manage the operation of the company through
various functional departments. M-form on the other hand or multidimensional form divide the company
into several business units and allow them to operate autonomously. In the case of Malard, they have
several departments (i.e. Research and Development, Materials etc.). The innovation of the M-form
structure lies in the establishment of better coordination by the company. In the case of Matrix Form which
is the one that best suits the company of Malard, attempts to use the advantages of both u-form and mform design by having each organizational unit answerable to different organizational leaders for different
aspects of the work performed by the unit. The use of Matrix Form in a sequential manner will allow the
company to have standard procedures while getting inputs from different department managers and
having a final decision from the top decision maker.
Contingency Theory which deals primarily with conflict was also used in this case. In previous cases, we
know that conflict in an organization should be taken out of the scenario and avoided at all costs. Conflict
is unavoidable, but according to Contingency Theory it is manageable. In the case of Malard, the
interdepartmental conflict and disagreement among departments can be handled if the organization will
evolve to meet their own strategic needs in rational, sequential and linear ways. The managers must be
able to make decisions contingent on current circumstances to help the organization.
VII.
ACA 1: To re-adapt Vertical Stucture of Organization (Unitary). Continue with the Sequential flow
of production and shorten production timeline.
Malard, under the supervision of Ms. Crandell shall continue to delegate her authority to department
heads. Cut off unnecessary steps to focus on product testing to ensure desired outcome of CV305.
PROS
CONS
ACA 2: To adapt to the Multidimensional Horizontal Structure of Organization and carry out tasks
simultaneously (for the current project) and then re-adapt the Vertical Structure of Organization
later on
This structure shall focus on specific functions of departments and will speed up the process of production
for the current project. Once they are able, the current Vertical Structure of Organization can be reviewed.
PROS
CONS
ACA 3: Adapt Matrix structure of Organization and deliver departmental tasks sequentially.
The company will adapt a dual-chain type of command. Coordination and collaboration among units can
make the project successful.
PROS
CONS
VIII.
Recommendation
ACA1
ACA2
ACA3
30
40
20
30
30
30
20
20
20
80
90
70
TOTAL
We recommend ACA 2. This ACA is the best scenario that will allow the company to meet the
target deadline of 30 days, without sacrificing quality. No time is wasted. After this development
cycle, they will have time to review their processes to prevent this type of problem from
happening again. For ACA 1, there is a big risk that the product wont be launched in time. Time
will also be wasted in re-adapting their development processes.
7S Framework:
Strategy: the plan devised to maintain and build competitive advantage over the
competition.
Before
Their current strategy involves updating
their products when new developments
in technology occur. Their development
process starts when the technology is
already there.
Development is sequential, leading to
delays when one of the process has to
be repeated.
Regarding marketing, it is unsure of what
was done in the past.
It is unsure how customizations in
customer orders were treated.
After
Engineers should attend seminars early to
update themselves on trends in development
so that if/when the technology is already
available, they are prepared to incorporate it
Moving to a simultaneous development
process promotes forward movement
Products should be marketed early on.
Regular customers should be informed about
the CV305 and future products early (the
product doesnt even need to actually exist).
Preorder discounts be given to beat out
competitors.
Customizations can be considered early on
instead of it being a post-production activity.
Structure: the way the organization is structured and who reports to whom.
Before
The current Organizational structure was
focused
on
several
department
managers/heads
reporting
to
the
After
Given
the
importance
of
product
development, a Production Development
Manager should be appointed to oversee
Systems: the daily activities and procedures that staff members engage in to get the job
done.
Before
It was not indicated what systems exist in
the company. There was also no mention
of any monitoring/evaluating procedures,
as well as any internal rules or processes.
After
Investing in Time Management Systems as
well as Production Management Systems
can help the company identify bottlenecks
as well as areas where processes can be
shortened due to slack
Shared Values: called "superordinate goals" when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the general
work ethic.
Before
It is unsure what the core values of Malard
are. There is also no mention of the
fundamental values the company was built
on, and if these values are still being
practiced.
After
A review of their Mission and Vision should
be done.
Promoting a culture where products of
high quality should be encouraged.
For marketing, a culture where after sales
support matches the industry standard
should be supported. This will help them
later on during the next production cycle.
After
The EVP should designate a product
development manager to directly oversee
the product development. This will also
allow the EVP to focus on other areas
Skills:
After
the actual skills and competencies of the employees working for the company.
Before
After
It is implied that Malard is a company that Since there are new managers, training on
can cope with changes in technology and
new product development skills must be
can implement these changes into their
done before the next round of product
products. There is no indication that there
development is done.
are any gaps in their skills.
IX.
Learning
Manufacturing companies like Malard has to be fast and equipped with effective structure.
It is vital for them to be prompt in decision making and to be able to determine people responsible
for different areas especially when it comes to the production and development of a specific
product. Redesigning and finding the most suitable structure in different work and company
setting will help increase ones profit, hasten the task and identify problems that have not been
addressed. Proper coordination among departments is also necessary to keep track of every
activity of the company. Also, conflict among employees should be avoided as much as possibles
and dealt with in a professional manner.
Cliche as i may sound, but the only thing that is constant is change. A company could adopt a
vertical structure and then next thing you know they are using that horizontal structure. As the
world is being globalised, customers will demand faster and better service which horizontal
structure gives best. But to be a company with a good structure, you have to have the best of
both worlds.
X.
1.
2.
3.
4.
References
Dyck, B., & Neubert, M. (2012). Management: Current Practices and New Directions.
Cengage Learning.
Silbiger, Steven Alan. (2012). The Ten Day MBA: A Step-by-step Guide to Mastering the
Skills Taught in Americas Top Business Schools. Harper: New York, New York.
The Vertical Structure Vs.The Horizontal Structure in Organization retrieved from;
http://smallbusiness.chron.com/vertical-structure-vs-horizontal-structure-organization4904.html
The Theory of the Firm and Chinese Enterprise Reform: The Case of China retrieved from;
http://books.google.com.ph/books?id=ryQOXMg358C&pg=PA32&lpg=PA32&dq=U+form+theory&source=bl&ots=j5LM6cJt_E&sig
=l1awQfTjAnEU52UmWxY2v2hfdZM&hl=en&sa=X&ei=66xXVOyEOYm4oQSblYKoDA&ve
d=0CD8Q6AEwBQ#v=onepage&q=U%20form%20theory&f=false