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Introduction
Introduction
• SMA and MEPD background
• Overview of SMA operations
• MEPD – Micro Electronic Products Division
» Various functional departments
» Multi divisional structure
» Segregated departments
» Jacob Amman & Guido Spichty
» Organizational culture
Comparison of the Leaders
• Authoritarian
• Technical Expertise
• Deep and Powerful
Influence
• Capacity to grasp
problem
• Entrepreneur
• Dominating in meetings
• Experimental/Innovator • Bad listener
• Risk taker
• Not a risk taker
• Highly Involved
• Less involved
• Political and
Manipulative
• 14-steps ahead
• Became more
authoritarian
• Remain Political
• Conflicts
• Lack of cooperation
• More of Bureaucratic
Approach
• Multi-Divisional
• More Group Meetings
• Few group Meetings
• Centralized Decision
making
• Decentralization
within Centralization
• Zwingli Corporation
• Sales and Marketing
• Organizational
Development Plan
• Change of
Headquarter
• Product development
Group
• Sales starts
decreasing
• Higher Sales ratio
Problems Identified
• Decline in sales and profit
• General economy and competition
• Low Morale
• Conflict and lack of coordination
• Major Promotions from manufacturing
• Change of direction
• Weakening of demand
• Spichty’s failed projects
• Political and manipulative staff
• Unrealistic Commitments
• No cohesion in top management
• Discontinuation of a good program
• Spichty, a bad listener
• Does not push people towards goals
• Not a risk taker
• Gave rise to centralization
• Replaced all key managers
• Took to many responsibilities
• Modification of budget proposals
• Unattainable goals
• market intelligence and selling
• Non-commission based selling
Departmental Conflicts
• Manufacturing Dept Vs Sales Dept
• Manufacturing Dept Vs Marketing Dept
• Manufacturing Dept Vs Product
Development Dept
Solutions
 Product Development
 Changes in the Marketing Department:
 The marketing manager
 Other employees
 Human Resource Department
 Goals and processes
 Improving the Service of Grenzach
 Replacing Spichty
Why Replace Spichty?
 Lack of experience
 Lack of leadership qualities
 Lack of involvement in problems
 Did not take suggestions or criticism
 No importance of technical innovation
 Appointment of the Marketing Manager
 Movement towards Centralization
After re-structuring
• Present structure – A multidivisional organization
– MPED’s functional departments
• Decentralization
– Product development and Technical staff
division
• Decentralization within Centralization
– Top management taking all decisions
Proposed changes:
• Move towards more decentralization
– Each product should have its own departments
– Frontline be delegated authority
• Lyon Plant be closed
– Reduction in costs
• Spichty be replaced