AirTex
1) Does Airtex Need a New Control System at the time of the takeover? How is Airtex doing?
A New Control System and a New Management System is in immediate need for Airtex. At the time of takeover, Airtex is in serious management issues and financial hard time that make the company close to bankruptcy. Prior to being purchased by Ted and Frand, Airtex is missing a company objective and an overall strategy that’s shared by the whole company.
The management control system at Airtex has three basic issues – Lack of direction, lack of motivation, and personal limitations. Since it was all about one woman, Sarah Arthur- the accountant, who aggressively control all the information in her office, other employees have no idea about the performance and profitability of the company and each department. Employees and department managers do not know what the company expect from them, nor do they have motivations to perform well. All they knew was that airplanes would fly and that Sarah would come around at the end of each day and collect their money. Apparently, serious issues exists from the direction, and motivation perspective. Additionally, Sarah as the head of management, has no accounting training or any previous management training experience. Her management philosophy was to be the “central repository of all information”, which is the main reason leading the company to a fail. She is not capable of manage a company.
Given Airtex has so many problems in management control, a new system and organization structure is needed, which will delegate proper amount of responsibility to each departments and optimize the efficiency and profitability of the company.
2) What are the key challenges for Ted in setting up the new control system?
The first challenge for Ted is to educate the department managers with management skills. Most of the employees at Airtex graduated from high school and are lacking professional training. Before delegate managing responsibilities to
A New Control System and a New Management System is in immediate need for Airtex. At the time of takeover, Airtex is in serious management issues and financial hard time that make the company close to bankruptcy. Prior to being purchased by Ted and Frand, Airtex is missing a company objective and an overall strategy that’s shared by the whole company.
The management control system at Airtex has three basic issues – Lack of direction, lack of motivation, and personal limitations. Since it was all about one woman, Sarah Arthur- the accountant, who aggressively control all the information in her office, other employees have no idea about the performance and profitability of the company and each department. Employees and department managers do not know what the company expect from them, nor do they have motivations to perform well. All they knew was that airplanes would fly and that Sarah would come around at the end of each day and collect their money. Apparently, serious issues exists from the direction, and motivation perspective. Additionally, Sarah as the head of management, has no accounting training or any previous management training experience. Her management philosophy was to be the “central repository of all information”, which is the main reason leading the company to a fail. She is not capable of manage a company.
Given Airtex has so many problems in management control, a new system and organization structure is needed, which will delegate proper amount of responsibility to each departments and optimize the efficiency and profitability of the company.
2) What are the key challenges for Ted in setting up the new control system?
The first challenge for Ted is to educate the department managers with management skills. Most of the employees at Airtex graduated from high school and are lacking professional training. Before delegate managing responsibilities to