Individual Assignment – Case 10|
Organizational Theory – BUSI 3103B|
Prof: Perley-Ann Friedman, TA: Mohamed Farazi|
Fidel Chika Tilije – 100765669|
Benson Metal Company makes a variety of metals that are purchased by manufacturers or specialized metal firms. It has been in existence for decades; thus, making it one of the five or six leading firms in the specialty steel industry. With such success, it has been listed on the stock exchange and has employed about 1,500 workers. The Benson Company and its competitors are moving into a changing environment, where it is a more sophisticated and technically more difficult steels, largely for the aerospace industry. Production for the aerospace industry requires more research skills and quality handling in all the stages of production. As the environment surrounding The Benson Company is changing and the steel industry is growing, the internal environment within the company will have to be well connected across different departments and have a good flow of communication and authority in order to meet the demand of its stakeholders and maintain its already established position in the industry. There is a formidable problem within the organization, as the production and sales department do not get along well; therefore, causing both departments to not inter-change information and resources that deal with the meeting of production demands. The vice president of production Mr. Ramsey Stockwell also has a problem within his department and across the top-management team. The Benson Company would have to formulate solutions for their current dilemma within the organization because they cannot allow these problems to presently exist, as they could face a steep price for it. This report will attempt to analyze the current situation that dwells in the organization, by the use of organizational theories attempt to elucidate different alternatives the organization can implement to eliminate the enduring problems and the best choice in which it should consider taking. Analysis and Summary
As the growth in the steel-making industry moves to a more sophisticated and technical approach, the top-management should see this as an opportunity and not a threat. They should put their differences aside and make their organization the leading steel-making industry by gaining competitive advantage, where top-management use core competencies to increase value-creation (Jones et al). Growth and gaining of competitive advantage cannot happen with the current internal conflicts that exist within the organization.
The root of the problem within the organization can be said to be the working behaviour in which Mr. Ramsey Stockwell displays. His working behaviour can be primarily based on his personality, as he hardly delegates authority to the good subordinates that work underneath him. This creates a crisis of autonomy, where he works independently and lower level employees find themselves restricted by a cumbersome and centralized hierarchy (Greiner), which is not for the betterment of the department and the company as a whole. Employees working in this condition will be less motivated to carry out their day to day structured activities and easily loose interest in their jobs. Also, very skilled workers that have a lot more to offer don’t get the opportunity to input ideas and such skills are wasted. A centralized structure is helpful for organization’s who need to be stable (Adam), which is not valid in the case of the Benson company as they are facing a growth and technological advancement in steel making for the aerospace industry. On occasions, Mr. Ramsey also violates the chain of command by giving orders directly to a manager or an ordinary foreman and doesn’t work through intermediate levels. This breaks the line of authority and reduces the amount of authority that esteemed individuals should have. With Mr. Ramsey performing such...