Two of the main objectives of Victoria Heavy Equipment are to remain flexible (not develop into the same kind of organization as the big U.S. firms do) and also to get a president who would arbitrate among the line general managers.
The high turnover rate (with four VPs in the engineering group since 1998) was a major concern to Walters. In order to achieve both the goals, we would recommend for the company to proceed with their decentralized, semi-autonomous operating structure, however, in the meanwhile, strict centralized decisions need to be held by the top executive, Brian Walters. One of the executives pointed out that If we had the right Victoria heavy Equipment president, we wouldn’t need all the divisional presidents. (p. 383)
A new President should be the focus, which could greatly contribute to increasing the success of the business. Rationale:
When the company was overly centralized in 1994, work was piled up and things were not getting done. (p.380). By decentralizing each department, it would help to identify the true performance and results of each division. Functional managers should report to each department representative and they should coordinate with the related department representatives to combine their decision and report to the executive meetings. To enhance motivation among employees, each department should also reward based on each divisions operation and profits.
Since Brian Walters children are not yet ready to run the company themselves, Walters should hire someone who possesses qualities such as:
In order for the company to continue succeeding and growing, the company needs someone who will stay devoted to see it through. This person needs to accommodate Walters presence and role in the firm and the existence of his two children.
The market and demands keep changing, therefore someone who will be able to come up with new ways to set the company apart from all of it...
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