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Mike’s Mall Mart Essay

1520 words - 7 pages

The primary problem would be the structure of the organization. This is due to the fact that there are thirteen departments in total which would lead to the failure of the ability to concentrate on long term viability of the business.
Alternatives: The most important measures that can be taken are: contraction of the department structure and applying decentralization.
Facts Considered:
1. Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.
2. There are thirteen departments in total: finance and accounting, human resource management, marketing, men’s clothes, women’s clothes, shoes, hardware and ...view middle of the document...

)
• The workers would be value skilled.
(The managers were responsible to respond to any inaccurate information whether it was related to the store or the people working there.)
• Mike is an experienced and risk-taking entrepreneur
(He took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products. He also believed in the importance of using new innovations.)

Primary Problem:
The primary problem would be the structure of the organization. This due to the fact that there are thirteen departments in total: finance and accounting, human resource management, marketing, men’s clothes, women’s clothes, shoes, hardware and automotive, music including audio and video equipment, toys, home and garden, small and large appliances, sports equipment, and furniture. This would lead to the failure of the ability to concentrate on long term viability of the business.

Satellite Problem:
• The top management would spend too much time on employee development and not enough on the overall strategy of the business.
(Because Mike Hayward believed in the importance of continuous learning, he wanted to ensure that employees would continue to develop during their time at Mike’s Mall Mart. However in order to achieve the desired goals, the organization should focus on developing the current strategy of the business rather than spending too much time on employee development.)
• There would be too many people reporting to the top management on an ongoing basis.
(Hayward formed a policy that required every employee to follow a series of one day seminars at which each manager would present his/her area of responsibility, describe how it works, what works well, the key challenges, and how it could be made to work better. This would make the top management unable to focus on their work.)
• Mike is not able to focus on particular aspect of the business.
(This would eventually bring harm to the business.)

Implications:
1. Organizational:
• The structure of the organization would be detrimental to long term viability.
(This is due to the fact that thirteen departments would lead to the failure of the ability to concentrate on long term viability of the business.)
• Spending too much time on employee development would decrease efficiency.
(Top management is spending too much time on employee development and not enough on the overall strategy of the business)
• Mike’s Mall Mart will just be an ordinary department store, without any speciality.
(Mike is not able to focus on particular aspect of the business which would bring harm to business)

2. Personnel:
• Managers, especially Mike will be overwhelmed with stress.
(Mike is not able to focus on particular aspect of the business which in turn would bring harm to the business and stress to him.)
• Mike and Roger won’t be satisfied or have the feeling of fulfillment.
()
• Employees will be discouraged due to lack of effective...

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