MANAGEMENT CHALLENGE REPORT
MANAGING YOURSELF AND OTHERS
Word count - 2345
The following report will examine the series of events that took place in Chatroux, a French based company, dealing with printing and paper based documents. Auskunft AG is an Austrian based company, with headquarters in Vienna. The company deals in various areas of the media industry. Auskunft AG did business in the European market. In this market they benefited from from the free movement of capital, goods, services and labour between EU member states, since it was a Free Trade Area. The company was also recognised for its acquisitions of other European companies working in the media industry. One of their major takeovers was in the year of 2004, with a French based company known as Chatroux. Chatroux was founded in the year of 1886, and was currently being headed by M. Jacques Giraud. Chatroux had contracts with Parisian hotels, clubs and restaurants for menus and other important material. M. Giraud had impressive qualifications for the post of President Director General but no past experience in the printing industry. Hence he was heavily dependent the experience of his senior managers, one of them being M. Guy Legris. M. Legris had been working in the organisation for 27 years and had equal knowledge about the functioning of the organisation; hence he relied mostly on what he believed to be effective to make decisions for the organization, without consultation. Being French, he naturally practiced a French style of management and working culture in his department. Legris was completely a task oriented leader and practiced a paternalistic style of leadership. He maintained a good social relationship and a mutual level of respect with members of the organisation. The culture at Chatroux was about showed a level responsibility and mutual agreement which resulted in low employee turnover giving a sense of high job security. Recently M. Legris had been facing certain coronary illnesses, which had been brought into the attention of M. Giraud and the parent office. Auskunft AG took the initiative of recruiting a successor for M. Legris and intended to replace him with a younger manager. The man recruited for the job was a 32 year old German manager, who was known as Herr Dr Rudolf Barfuss. Dr. Barfuss had a Master’s degree in print technology and PhD in e-business. He had also taken a French language course from Marseilles where he was awarded a distinction. Dr Barfuss possessed the necessary requirements and qualifications to handle the Chatroux business organisation as a Production Director. Dr Barfuss had commenced a different work culture in Chatroux. He introduced a style of management where the employees were encouraged to be more involved and participative in meetings that he held to enhance the working procedures. He delegated more responsibility and tried to implement joint decision making. He also set up and emphasized on the performance related pay system. It had been 3 months since Dr Barfuss was appointed and company’s functioning had remained stable. Dr Barfuss was happy with the performance of the employees, even though the output had remained the same as before. He also felt that joint consultation committee strategy had shown good results. Sacha Aznavour, the head of the production planning department, who was one of Dr Barfuss’ direct subordinates, had written a letter to M. Giraud regarding the effects of the change in working environment in the organization. Sacha Aznavour was a highly efficient and dedicated employee. He grievously mentioned about the change in the work environment and also said that the employees were used to paternalistic style of management. Dr Barfuss was a democratic leader and the employees couldn’t adapt to his style of management. From the following report we can deduct that employees were getting demotivated enough under Dr Barfuss style of management,...
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