Suppose you are a manager in an organization in leather industry. Suddenly due to some naturalcatastrophe, t?
Suppose you are a manager in an organization in leather industry. Suddenly due to some natural
catastrophe, the supply of animal skin has been stopped and your business is being affected badly.
Now you decide to decrease the remuneration of your employees. But you need to convince them
to remain loyal to your organization.
1. Which management skill do you require to persuade these employees?
2. Which managerial role would you play to control this situation?
3. In your opinion which management function is missing due to which this situation
occurred?
Give logical reasons to support your answer.
The problems associated with management in a negative growth situation are always the most challenging. First and foremost the hypothetical should not have been a sudden stop of influx on receivables...on hand production material and projected receivables should allow for a minimum of 2-3 weeks notice, even in a JIT environment....secondly the whole worlds supply didn't end just your current supply...get purchasing on the ball and move quickly....thirdly have research and development fast track ideas for suitable substitutes that do not require retooling production and formulate a market impact and cost analysis of the same..As to the financials the best possible course is to lead from the top down....have a company wide meeting if possible,,,if not then at least down to department head level....Explain that the current economic outlook is poor and for company survival it is essential that ALL employees take a TEMPORARY reduction in benefits/pay....demonstrate this by suspending all incentive bonuses for management and supervisors IMMEDIATELY and then post the savings...show the rank and file what savings can be had by them contributing a portion of their earnings to the pool as well.....show them the bottom line how much you have to cut to keep the company affloat...if you have treated your employees well they will remain loyal and will be team players....the key is everyone must appear to suffer EQUALLY..
As for what management function is missing? (or who do we blame for this?) Operations division oversight of procurement and Material manufacturing are equally responsible both of these should fall under one VP..that is where your breakdown occurred....lack of communication and improper planning to maintain the company focus and goals.
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