Organizations face various hurdles in terms of internal and external pressures in the process of achieving their goals. There is a need for strategic planning in various sectors to ensure an organization overcomes the many challenges that hinder its effective performance. While some of these challenges occur due to modernization and competition, most of them originate from within an organization. In addition, almost 70 % of an organization’s performance relies on its employees and their relationship with managers. The “Tool Craft” case below is an effective illustration of the internal challenges organizations face and how to handle them.
Mr. Burt is without doubt one of the few individuals who work hard to ensure they realize their dreams. Having worked as a salesman, he has managed to integrate his skills and experience and opened his business. It is now eight years since then, and the results are remarkable with frequent orders from customers all over the neighborhood. In fact, his 12 member staff team is working extremely hard to multiply their profits by increasing sales.
It is evident that he does not waste any chances of increasing sales including giving false hopes to his clients. He holds frequent meetings with his staff to plan on how to improve his business performance. However, no matter how hard he tries to provide quality services this will be a torturous journey. Mintzberg states that there are various aspects he must apply to improve efficiency in the company and increase sales without straining his employees and the company resources.
First, his leadership style is ineffective and thus requires an immediate attention. There is the need for him to reconsider his position as a manager or business owner. Even though, he can handle these two positions without struggling it is essential that he acquires leadership and management skills to allow him run the company effectively. Mintzberg argues that being a business owner does not guarantee effective leadership and management abilities. Therefore, he needs to attend seminars or seek business management advice from investment and business consultants. This will give him adequate leadership skills to allow him control the company effectively.
Secondly, all employees are free to perform any duty; from receiving orders and payments, selling goods and handling disputes presented by clients. This is extremely confusing since nobody knows what to do. He needs to assign every worker his or her roles in the company. Mintzberg proposes that this will promote accountability and restore order. In addition, it will encourage specialization that will result in the provision of quality services. The business will have various units under individuals responsible for their operations.
Thirdly, the company lacks an efficient communication channel. Any employee can handle customer disputes. Additionally, there are no avenues for employees to express their grievances. The company lacks an organized human resource department and suggestion boxes. For that reason, employees do not know where to direct their problems. They complain Mr. Burt is bossy and does not want to offend his family members by commanding them to follow company policies. He does not appreciate the value of communication among employees. In addition, the presence of his family members in the company is a conflict of interest. The company needs to establish a communication strategy that will inform customers about the services available for them to avoid giving them false promises. There is the need to establish a working communication channel to promote cooperation and understanding among them.
Mintzberg explains that time is an essential asset in any business investment. However, the “Tool Craft” company has failed to identify and prioritize their activities. Mr. Burt seems to be moving from one place to another without a proper schedule. He is always on the move to finish one meeting and attend another without laying much emphasis on the importance of these meetings. It is without doubt that the manager likes attending luncheon meetings at the expense of other work waiting at the company. In addition, an employee complains about an old forklift that delays work, but he is quick to ignore the issue’s urgency.
There is the need to prioritize all activities for effective time management and increase productivity. According to Mintzberg’s Organizational Configurations, decision making plays key roles in determining business efficiency. He argues that this role should be played by various parties in consultation with each other. This will give room for understanding among them and reduce conflicts experienced in implementing work policies. However, Mr. Burt seems to be responsible for making all decisions. This makes him confused and also attracts resistance from his employees. He needs to involve them while making key decisions that affect the company.
Running a business investment requires various skills to enable managers integrate various employee qualifications, skills and abilities to produce expected results. There should be effective communication channels to enable workers relay their messages to their superiors. Conflicts of interest should not hinder the implementation of work policies as well as distribution of roles.