Case Study on Management Issues Affecting Organizations

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management issues affecting organizations


This paper presents an analysis of a case study on management issues affecting organizations. Recommendations are made on how the company can improve its operations and be in a position to compete with others in the world market. The company under scrutiny is ABC Ltd. This is a family-owned business in the UK. It engages in the manufacturing of desks and chairs for office use. ABC Ltd is said to have been experiencing management challenges of late. During the years when its management was in the hands of the father, it was making impressive profits. Currently, the grandson runs it, he is the Managing Director. The following paragraph presents the management issues facing the company.

The grandson follows his father’s management style of minimal consultation and discussion on changes. There is little encouragement for change, inventions, and innovations in the company. The senior-level staff, the managers of various departments, all have different styles of management. They have a dislike towards each other, a fact that is well known to the Managing Director. Payments in wages and salaries are also not impressive. Terms of work have deteriorated, with the change in the working hours without any compensation for the extra work.

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From the foregoing, it is evident that the operations of the company have not been handled appropriately. Based on this, the company is on the verge of suffering a loss ever since its formation fifty years ago. The MD, Mike Jones, aware of this, has hired a consultant to advise the Board on how the company can improve and compete in the world markets. By using various theorists and theories, below are given the recommendations that would guide the company towards recovery.

Recommendations to enhance Performance

The initial recommendation is based on addressing the needs of the employees. The employees’ welfare must be addressed to ensure they are compensated in wages and salaries that reflect the services they offer to the company. Other programs should be established to encourage hard work and appreciate efforts made by the employees. Increasing their current salaries would also serve to cushion them against any harsh economic realities. By so doing, they would be encouraged to offer their very best, hence optimal production by the company leading to earning profits.

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The current state does not address the matters concerning the employees as evidenced by the high number of cases of grievances. Their turn out is also likely to be high. This cannot lead to an impressive performance by the company. One of the theories of management is the classical management theory, in which Henri Fayol, amongst the fourteen principles of management, talks about remuneration, equity, the stability of tenure of personnel and initiative as being the key towards effective organizations (David, B. and Robert, L., 2008). ABC should embrace all main principles given by Fayol.

Embracing change is another option. Some managers are said to have been in the same positions for ten years. They do not accept or recognize any different approaches to management. Recognition of the relevance of advanced training in University, acquiring new machinery and improved technology must be embraced. These would improve production processes a fact that would reduce production costs. Therefore, management must be abreast to any changes whose impact would improve the operations of the organization.


Business organizations are formed to earn profits. To achieve this, they employ resources. Human resource is one of the key inputs. The management has a key role to play in the running of the affairs of the organization. To achieve its goals, the organization would have to address any issues facing its employees. Under one of the theories of management, The Neo-Human Relations Theory, employees are to be treated like human beings (Glines, 2011). This means their issues ought to be attended to just like as anyone. This includes all matters concerning them to encourage optimal performance. With the above two recommendations, the company would change for the better and register a good performance.

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