Case Study 4
Listo Systems: The Challenge of a Growing Organization
Defining the Context
Listo Systems, one of the world’s top graphic service companies, was established in the 1990s when technological advancements were increasing and creating a more competitive market. After going through a period of great success and growth, the company decided to hire a number of new employees and adding new layers of managers and supervisors. Defining the Key Issues or Problems
The main issue is that Listo Systems has been growing too quickly, and the company has not been able to cope with this growth appropriately. Due to this situation, causal variables such as lack of proper training for new employees, management becoming less concerned with workers’ opinions and more concentrated on production and profit have eroded. As a consequence, there has been a lack of clearness regarding the company’s objectives and goals, and as a result of this there have been intervening variables such as decreasing employee motivation and productivity which provoked personnel turnover rate to increase and amount of sick days taken doubled. Applying Concepts
Organizational Level 1: Key Players (Stakeholders) and Business Ideas (Purpose) In this level, “(…) implementing business ideas in the internal and external environment is affected by the stakeholders, key players, or factors whose helping or hindering roles determine success or failure to the organization.” This level involves establishing, refining and monitoring the vision of the company so it can synchronize stakeholders and key players with the business ideas and purpose of the organization. Listo System’s vision statement mentions that the company aims “to be recognized as a leader in supplying quality graphic design products and services (…) and to be respected by our clients and staff.” They also mentioned that they plan to do so by developing superior graphic design products and services for clients through state-of-the-art technology, innovation, teamwork, and leadership. Even though the company has well defined aims and goals, elevated personnel turnover and lack of proper training for new employees has caused workers to detach from the company’s objectives. In order to make sure that everyone (employees and key shareholders) is aware of the company’s goals and objectives, these should be re-established. In order to make workers stay focused, the goal-oriented behavior theory could be applied. This could be done by using the Hawthorne experiments theory. If the attention is brought back to the workers, they will feel like part of the company once again, and therefore make the company goals their own and attempt to reach these. Also, Homans’s Informal Work Groups will promote this sense of moving together in the same direction. By re-establishing the goals, and maintaining the employees focused and motivated, employees will respect the company. Once employees feel respect for the company, they will gain respect from clients, thus fulfilling the goals set in the vision statement. Organizational Level 2: Entity (Culture) & Strategy (Mission) This level finds strategic initiatives carried out within the corporate culture. It involves defining, shaping (publicizing) and energizing the company’s vision by synchronizing the corporate culture and individuals with the strategies and mission. Due to the restructuring Listo Systems went through, employees have become detached from the company’s goals and as a result have become demotivated. In order to improve the coherence between the company’s corporate culture, individuals and the company mission, the stated mission needs to be energized. A concept that must be mentioned here is Maslow’s Hierarchy of needs. If this is applied, the reason why workers are underperforming is because they are not meeting the required level of social, self-esteem and self-actualization needs. This lack of completion of needs is due to the fact that people are...
Please join StudyMode to read the full document