Rose Company Case Study

Topics: Management, Decentralization, Empowerment Pages: 3 (649 words) Published: January 9, 2015
SITUATION ANALYSIS

The Rose Company has selected James Pierce to become the General Manager for the Jackson Plant, a position newly developed in order to assess the effectiveness of decentralizing operations. In the new model for the plant, rather than managing departments and reporting through different function channels, Jackson’s internal operations will report to Pierce. The Rose Company is currently building a new plant in the region with the expectation that it will reduce production cost with new methods, while also reducing manpower. Pierce is tasked with improving manufacturing inefficiencies at the Jackson plant. In order to do so, Pierce must develop a strategy to transform the plant into one that can be run effectively and independently.

PROBLEM DIAGNOSIS

Pierce must improve operational performance using a decentralized model to make the Jackson plant successful which has never been tested by the company. Historically, Rose is run through function channels that will no longer be responsible for performance. As the General Manager, Pierce must determine how he will manage and control operations. Pierce is entering unfamiliar territory under an untried system that will require the development of new processes and management savvy if the decentralization project at the Jackson plant will be successful.

ALTERNATIVE SOLUTIONS

The most conservative of approaches for Pierce would be to continue to utilize established channels and allow them to continue to work independently, while focusing on improving financials and manufacturing efficiency at the ground level. While this would cause the least amount of friction at the Jackson plant, it would also require significant aspects of the operation to continue to remain centralized and the plant would not be fully independent. Pierce could retain existing operational channels where necessary and compartmentalize those essential to the sustainment of independent operations at Jackson plant.

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