The Dashman Company was a large decentralized concern making many types of equipment for the armed forces of the United States. Late in 1940 the company faced increasing difficulty in securing certain essential raw materials. So Mr. Manson, the company’s president, created Central Purchasing department and appointed, Mr. Post, an experienced purchasing executive, as vice president in charge of purchasing. Mr. Post has proposed one strategy, notifying him contract in excess of $ 10000 a week in advance of signing them. Same was approved by board and communicated in writing to the purchasing department of all plants. But net result is: there is no improvement in purchasing process.
1. Scarcity of resources and their improper utilization.
2. Lack of coordination within the plants and Head office. 3. There is no involvement of Plant purchase head while taking a decision of purchase centralization by Mr. Post. 4. Vague strategy by Mr. Post.
5. No result oriented action plan by Mr. Post.
6. Because of which the rigidity for acceptance has been seen from plants. 7. Lack of ownership of the job responsibility both by Mr. Post and Mr. Larsen. (Mr. Post could have used Mr. Larsen’s experience to know about their org. behavior as well as Mr. Larsen could have taken self initiative to visit the plants.) 8. No proper reviewing or monitoring system implemented.
9. Similarly no feedback systems implemented for plants.
10. As a MD of a company, Mr. Manson would have reviewed this concept of centralization and its action plan. 11.
a) Mr. Post is acting like a Dictator and he is impulsive. b) Lack of implementation of ideas and action on it.
c) Lack of job-role clarity (as Mr. Post was sitting idle for 6 months instead of reviewing it. Mr. Larson could have taken self-initiative). d) No ownership of their responsibilities.
e) Without proper communication, the centralization...
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