Dashman Company is one of the major suppliers of equipments to the U.S Armed Forces. There are about 20 of their plants which almost work as autonomous bodies.In an effort to avoid the foreboding shortfall in the essential raw materials required by the plants, Mr. Post is appointedto coordinate the purchasing activity by Mr. Manson, the president of the company. Experienced Mr. Larson isappointed as Mr. Post’s secretary.Post decides to centralize a part of the system by announcing through letters to the purchase executives that all thepurchases made over $10000 should be cleared with the head office and that he is notified about contracts that arebeing negotiated at least 1 week in advance. The plant managers express support and co-ordination but the headoffice doesn’t receive any notice from any plant in this period.
The Dashman Company Case: This case deals with a typical condition which many organizations might face. In this case we have a newperson joining the company at a very responsible post. The company has its own ways of running untilthe person who has newly joined thinks of an improvement. It was noticed that the things didn’t goexactly as the new professional wanted it to. This case brings to the forefront matters likecommunication in an organization and effective decision making.
The actual scenario: Mr. Post has recently been hired as the VP of the purchasing department. He wants to centralize theworking of the purchase department which was otherwise decentralized and dependent on the variousunits and their respective heads. Mr. Post sends a letter to the various units within the organization tothis effect. He tries to impose out of nowhere a restriction on the amount of purchase that the units canmake at their own and insists that they get bigger purchases cleared from the head office. Thisletter doesn’t have the desired effect as things continue as usual in the organization.
Prospective Problems: The people in the organization have not taken the letter seriously. They don’t feel it necessary to followwhat the letter instructs them to.
The Problem / Objective
The psychological aspect of the entire problem is what our group believes is the major problem of the issue miring the organization. It is human nature that people do not easily give up something, especially when it comes to power and position. It would have been very difficult for the heads of purchases of the respective units to find a reason to give up the power which they had been exercising over the purchases of the unit. They would require a very valid reason to give up the same. In the opinion of the group, it would only be possible to increase or modify the powers enjoyed by the respective units rather than decrease them.
The requirement of such an action would also be a probable problem for the orders of Mr. Post not being taken seriously. There has to be a very logical approach to any decision that is taken at the VP level of the company. The heads of purchases of the units were not in effect made a part of the decision making process which could have reduced the efficacy of the measure that was decided upon.
Criteria for Evaluation
- The people might have acted differently if the mode of communicating the decision would have been different.
- Mr. Post has been very blunt in communicating the message to the people of his organization.
- The neTw man has not taken into effect the way the things were in the organization and has not taken ample amount of help from the assistant he has been assigned.
- The problem that the company is facing might not be affecting each of the plants individually. Hence it is very unwitting to assume that the problem that the people at the head of the organization see is visible to the people of the units individually.
Evaluation of Options
The reaction to the measure taken by the VP might have seemed irrelevant to the people of the organization at the unit level. There is no binding agreement which the VP has put in place. If he is considering imposing a decision taken at the high level of the organization, he might as well put in place some conditions which can make sure how to get the people abide by the order. Prospective Solutions: We have identified the problems facing the organization and analyzed the situation to get a better view of the things that might be the cause of the situation being faced by the VP of the company. We will try to offer the prospective solution to the above problems in this section. Invite the people of the individual units to take part in the decision making process. The people should be consulted before the final decision is taken. It must the prerogative of the VP to scout for alternatives which will be easily accepted by the people of the organization. This solution may work if the people are facing that psychological barrier of reduction in the powers which they enjoy. If the units are made to feel like they are the ones who have taken the decision, they might want to stick by it.
If the communication is the problem, the VP might want to change the way he has communicated the decision to the people of the organization. . The units might be given some education about the benefits that this decision might have on the company overall. This might help the people recognize the need for such a measure and respect the decision which has been taken in the head office rather than turning a blind eye to it 4 Lastly the group thought that the VP might have some penalties in place for abiding by the rules that he has framed. This would in worst case create an uproar amongst the people of the organization which would give the VP a way to tell his people about the problems facing the organization.
Plan of Implementation: Action Plan Organize a meeting between the people of the purchase department of different units and the VP. In this meeting they can get together and discuss the issue that needs to be addressed. The company can fly the individuals to the head office and have the meeting conducted over the weekend. All parties in this meeting are to come to a consensus about what is the problem facing the organization and what should be the best solution. The VP along with the assistant should make periodic visits to the plants to make sure that there is proper compliance with the measures finalized in the above mentioned meeting.
There has to be a feedback which the head office should provide the units about the gains the company is having because of following the methods which they implemented. This measure in the opinion of the group will make sure that the units are fully involved in the process.
In thiscase as the units will not have a choice they will have to route all the decisions through the head office
Fishbone diagram of the problem: Requirement for Psychological aspect such action not of giving up power clarified to units The letter sent by the VP didn’t have the desired effect No penalties associated with non compliance The communication of Units not included in the decision was decision making inappropriate.