Textbook Case Analysis Executive Summary – Week
Date Submitted:
Course (include the
section number:
MG495 Business Policy
Statement of Academic Integrity:
I certify that:
1. I prepared this document specifically for this class;
2. I am the author of this document;
3. I am fully disclosing and giving proper credit to any outside assistance received in
its preparation;
4. I cited sources of information (e.g., data, ideas, charts, etc.) and used this material
to support this document.
5. I did not receive any assistance / help / guidance from others.
Student’s Signature
(type your full
name):
2
Executive Summary
Student Name
Park University
3
Executive Summary
The case study pertains to the manifold problems faced by the Wallace Group and steps
taken to identify the problems are to recommend solutions if any .The problems were not only
dealing with diversification but with employee morale too.
Synopsis of the Case
T he most important problem facing the Wallace group is leadership. The Wallace group
may have a Board of Directors but lacks Corporate Governance because there seems to be no
transition from a single proprietorship to corporation thinking and management which very much
evident in lack of cohesiveness between the three divisions. Rather than operating as a team, the
three are more like rivals competing for resources and personnel. The apparent problems are only
the symptoms of the real problems which was very difficult to face and there had to be a real
reengineering of thoughts and purposeful leadership.
Relevant Factual Information about the Problem or Decision the Organization Faced
The problems faced could be broadly divided into three categories
Corporate Governance.
Stage one management in a stage three corporation. Harold Wallace is trying to
micromanage all three divisions2.Lack of a corporate strategy, company has no mission and no
definite goals.3.Poor organizational design creates span of control problems and results in poor
operations.
4
Personnel management:1. Morale is poor2. Recruitment backlog 3. Salary structure is not
commensurate and updated based on the current demand.4. Experienced staff/ personnel are
retiring and no one is heading the business expansion effort.5. There is no management
development program in-placed.6. No performance standard and evaluation of employees
Reports
Management:1. There are no standard reports required by higher management.2. There is
no value chain or coordination in between departments
Information Technology1.Un-standardized methods of collecting data and presenting
information MIS being develop is not a users need- based system. No consultation has been
made to users as to what benefits they could get from the new system. (Goleman Daniel. 2000.)
Corporate policy on transfer pricing1. Cannot meet volume and profit targets when saddle
with noncompetitive material costs. The corporate policy of transfer pricing needs to be
addressed in terms of product cost and profit margin.
Diversification1.Heavy dependence on government contracts could put the corporation in
financial difficulty if further sales diversification cannot
Explanation of Relevant Concepts, Theories and Applications Derived from Course
Materials
There is visible lack of leadership in Wallace and hence there are so many problems that were
difficult to be countered and brought solutions too. It is seen that Wallace has lacked very
essential skills and so he has to self realize and bring out a reinvention of the entire
organization though transformation leadership .
5
Recommendations
The availability of organizational resources plays an important role in affecting a team’s
belief that it can be effective. Every team should have direct access to jobrelated information,
tools and equipment materials and supplies, budgetary support, required services and help from
others, team member task preparation, time availability, work environment, executive
management commitment, and supplier participation.This would allow for team effectiveness as
the team has good insight to capital building resources. Ever team does not have equal access to
all information though it is an important part of team adaptability to organizational goals. For
sourcing team effectiveness resources are very necessary. Realistic goal setting ought to be set
for teams, if it not done then teams will not be able to perform. This shows lack of managerial
abilities in setting goals. For proper work environment teams should be made effective and
closely connected to work environment and management profile (Balogh, E. 2005)
Conclusion
Wallace has to ensure that communication in the workplace is very important for creating the
very important aspect of partnering and relationship building. It releases unnecessary toxins that
could arise from very strict communication patterns and take people away from the denial
mode .In order that employees become productive it is important that communication both verbal
and non verbal are very congenial to employees and they can communicate without fear and
reprimands. This way productivity and performance in organizations will improve.
6
References
Balogh, E. (2005). Intercompany Conflicts and Conflict Resolution Methods. Results of a
Qualitative
Research.
Review
Of
Sociology,
11(1),
81104.
doi:10.1556/revsoc.11.2005.1.4
Goleman Daniel. 2000. Leadership That Gets Results. Harvard Business Review. Harvard
Business School Publishing Organization
Gibson, J., Ivancevich, J., Donnelly, J. and Konopaske, R. (2012). Organizations. Dubuque, IA:
McGrawHill.
Hersey, P., Johnson, D. E. & Blanchard, K. H. (2008). Management of organizational behavior:
leading human resources. Pearson Prentice Hall
Hynes, G. E. (2010). Managerial communication: Strategies and applications (5th ed.). New
York, NY: McGrawHill Irwin.
7
