An Action Plan for Cushy Armchairs - Essay Example

An Action Plan for Cushy Armchairs Problem statement Cabletronica, US is a cable and wireless company that is seeking to improve its business. The company feels that it needs to diversify in order to enhance its business and consolidate operations across geographic locations. After much research the company decides to invest and develop their expertise in reclining armchairs. Consequentially, the company acquires Cushy Armchairs, a company in which had a minority stake. As part of the restructuring process, the company changes the company dispatches Alison Sampson to take over from, Frances Wong, the founder of the company. Even though Sampson had new ideas and plans to change the operations in the company, it was soon found out that her directives were not being met by the company units across the world. A message that she sent to all managers in her company draws zero response and proves that she is not at the helm of affairs of the company. Assumptions There could be many reasons as to why Sampson had to face issues as Cushy Armchairs. The foremost issue of importance is that Sampson is trying her hand at change and that all employees, irrespective of their status and positions, will have a tendency to resist change. It is also important to note that she has take charge in an Asian country where gender-specific issues are important when taking orders. Hence she should not expect that her orders will be easily accepted as in her country in Asian regions. Sampson was also seen as making an effort to centralize operations of a company whose operations were already decentralized. The stress of centralizing operations and the importance given to a central administration in her email would have turned opinion against her. Finally, email is not considered as an official form of communication in most part of the world, and hence her email could either have been discarded as a piece of informal communication or there is even the chance that the communication never got across to the right people because of lack of knowledge in operating computers or because of a lack of IT infrastructure. Her communication also lacked credibility and accountability since she did not ask for acknowledgment of her communication. It may be argued that resistance to change could be the major issue that would have prompted managers in the company to resist the orders listed out by Sampson. The fact that the founder of the company was being replaced is itself a recipe for discontent within the company. Since the company was acquired, there is every possibility that regional managers would be more comfortable working with a face they know rather than interacting with a person who has been installed from another country. Gender-specific issues are also a very big issue in the problem. Asian managers would consider it inconvenient to take orders from a lady who is new to their culture and ways of dealing with things. Hence, when Sampson shot off a mail to all managers, it could have encouraged them to defy the order because the message came from a person they rarely knew. The issue accountability was also a major factor that could have encouraged managers to defy the orders of Sampson. For example, in a decentralized operation, all managers operated like semi bosses and when suddenly they had to face the prospects of taking orders from a woman, they could have resisted the change. The fact that they needed to take permission from the central office for capital, design changes and even advertisement planning would have grossly eroded the confidence of regional managers. Since Sampson was promoted from within the company, her credentials and past performances would be easily accessible to all employees. Hence, the fact that a person who is totally new to operational requirements of the company, has been promoted to head all operations of the company could have encouraged managers to make life difficult for the new executive. Recommendations 1. As a first phase of change, Sampson should meet with her main regional managers so that she will be able to create a rapport between them. Ideally she should be posted under Wong for some time so that she can learn the nuances of the regional operations. She can also create a rapport between her and different managers within the company. This maturing time will also her to learn various aspects of the business that she currently is in. 2. Secondly, Sampson has to understand the way that regional markets operate and also she must incorporate regional ethics and working styles in her attitude. She must develop social skills that will help her to interact with Asian colleagues better. After assuming charge, she should have been less direct in her approach to implementing changes within the company. She was too fast and demanding in implementing the changes, which could have caused widespread resentment among managers. On the contrary, if she had tried to implement one change at a time, perhaps she could have derived better results from her managers. 3. Her style of communication also leaves much to be desired. She should adopt a messaging system that is more formal at least while taking important official decisions. E-mail messages are too informal and therefore will not be taken seriously by her colleagues and counterparts. She should be able to implement a command response system in her office so that managers become accountable to her instructions. Implementing accountability is one of the foremost requirements of implementing a centralized operation in the company. One advantage of the above recommendation is that it will create a smooth transition of power among the executive levels of the company. It will also provide more authority and credibility for Sampson, which in turn will help her to discharge her responsibilities better. CASE STUDY QUESTIONS: 1. why was Alison Sampson's directive ignored? Lack of formality in business communications Lack of accountability Resistance to change 2. Who would resist the change and why? How much power do they have? The regional managers could the first to resist change because of the introduction of an additional layer of power between them and the top management. They have power to manage the regional operations of the firm because the company is dependent on them to drive regional operations. 3. Who would support the change and why? How much power do they have? The changes would be welcomed by players in the central office because that would give them more power over the regional staff. However they do not have much power to effect the change because their positions of power will come into existence only after centralization of operations happen. 4. Outline an action plan for Alison Sampson at the end of the case. Improve coordination Reduce shock of change Enhance rapport Improve communications Understand the system well Take one task at time Read More