Low Jun Liang Roger
Low Jun Liang Roger
Cox Case study
Cox Case study
The change initiated by the owner Harold Cox and is met with a few problems as they move to implement the new operational and cost control for the firm, due increased competition and falling profits due to reduced profits.
In this case study, the main problems would be the culture, structure and the strategy for change. To enable us to have a better understanding of these problems we would need more information on the factors that is making the organisation resistant to change, besides the single personnel mentioned. Also a more detailed organisational ...view middle of the document...
Next from the information, Cox seems to be having a power culture, where Harold Cox, the founder and managing director, is regarded highly within the local community (Corbett, 1994) and with the production personnel jealously guard the autonomy the enjoy under their long serving manager, Abdul Aziz (Corbett, 1994). This also brings out the fact that if the culture is not managed it will be difficult to implement the new control procedures, as the original culture would be with few rules and procedures, little bureaucracy which runs contrary to what John Straw is trying to implement. The team would also have to note that in this culture, decisions are based on a balance of power rather than logic, and little emphasis on discussion to reach consensus (Huczynski & Buchanan, 2013).
Like the mention above, from the case we would need more information in the cultures, as there could potentially be more subcultures. As organisation do no necessarily fall neatly into any on type. (Bresnen & Marchington, 2014) This is important for the analysis, as the implementation would have to have an idea of the subculture, which may or may not counter the main culture of Cox.
It is important to note that the cultures of organisations are affected by a variety of factors, that these diverse cultures are reflected in a diverse structures and systems (Handy, 1993). This would mean that the structure of the organisation would have to be in sync with the culture and with the change that Cox want to implement.
Jay Lorsch described organisation structure as management’s formal and explicit attempts to indicate to organisational members what is expected of them (Huczynski & Buchanan, 2013). Therefore from the case there is no information if such change is implemented to indicate to the employees of the firm. The original structure of Cox would be a dominant strategic apex (Harold Cox) and some operating core (Abdul Aziz), but with very little middle line, technostructure and support staff, where two-thirds of the company’s employees work in the production department.
Decentralisation refers to the downward dispersion of authority and responsibility for decision-making to operating units, branches and lower level managers (Huczynski & Buchanan, 2013). This is definitely the structure in Cox where production personnel are granted great autonomy and Harold Cox insisting that operational decision-making be carried out by other managers (Corbett, 1994). This is a change from the simple organisation structure to a more functional structure for Cox, which essentially is decentralising the control of the firm and changing the original structure to incorporate the administrative department.
Few organisations can be successful today with a pure functional structure, because the resulting functional silos inhibit the amount of coordination needed in a changing competitive environment (Anand & Daft, 2007). As shown in Cox the coordination has...