Ms. Crandell, the Executive Vice President of Malard Manufacturing, found herself in a dilemma where her company needs to launch a new control valve called CV305 urgently to the market, as their loyal customers are starting to shift orders with their competitors. The timing of their product launch is critical, however the situation becomes more challenging due to their organization’s interdepartmental conflicts and disagreements on how to manufacture and market the product. The marketing and production departments prefer the work on CV305 to be done simultaneously instead of sequentially so their product can immediately be ready for standard production and meet the customer ...view middle of the document...
V. Theoretical Framework
Malard Manufacturing Company is facing the dilemma of launching CV305 control valve due to poor management function of organizing. Organizing ensures activities are appropriately assigned to teams to meet organizational goals. As the company faces the situation where time is a major constraint, enhancing its mainstream approach of organizing is the best option. Mainstream managers focus on 4 basic elements: Standardization, Specialization, Centralization and Departmentalization (Deshpande and Webster, 1989).
Standardization drives people to accomplish their work in a most efficient and effective way while specialization entails taking standardized organizational tasks and allocating them into separate jobs to maximize productivity by leveraging deep knowledge and skills. It is assumed that Malard Company has strong specialization due to its functional structure but poor standardization in terms of decision making process. Centralization refers to having a structured decision-making tree where authority resides with top managers as shown in a hierarchical pyramid organizational structure. As of the case, there is no clear authority on who should decide if it’s a “go” or a “no go” to production as department heads keep on arguing. There should be a clear owner who should be overall accountable to the CV305 project where department heads contribute according to their expertise to help the program manager decide. But in order for the team to work together, there should be a strategic focus to make sure members are effectively grouped together to ultimately achieve their goals through departmentalization. It’s clear that Malard Company prioritizes the grouping of their people according to their technical expertise (e.g. R&D, Engineering, Production, Marketing), therefore having a functional structure where the focus is on internal efficiency and departmental membership is more likely to be stable. Divisional structure groups its people according to a specific product or services they can offer, working together as a subunit. This is where Malard as a company is lacking since management does not have great ability to readily adapt to changing preferences. Given the time constraint to deliver the product, it is advisable to stick with their current structure yet with a low deviation towards divisional, resulting to a hybrid matrix structure where internal expertise and adaptability are both recognized.
VI. Areas of Consideration
* Company Size
* Mallard manufacturing can be considered a large-scale company consisting of 1,400 employees
* Organizational Structure
* Ms. Crandell is trying to flatten the structure of the organization by widening her span of control.
* The tall company structures are less flexible.
Figure 1. Mallard Company’s Organizational Structure and Span of Control Distribution
* Current Process
* Using the current process, they had...