BUSINESS MANAGEMENT

Business Management

Business Management

Introduction

For any organisation these days, an adjustment to challenges of environment becomes the most important task for the managers. The situation of the various firms operating in the same industry becomes tough when they struggle to get hold of the resources that are there in the environment. Some of the large firms in the industry try to exploit the usage of resources by taking advantage of their market position and this creates problems for small firms to acquire the resources for themselves. However, small firms can resolve these problems if they can manage their resources well and should hire reasonable amount of labour to carry out the operations of the firm. The labour must be competent as well to manage their tasks effectively and to give best performance in their work. (Sambrook 2010, pp.29)

Discussion

The key issues that ABC faced were to maintain their competitive position in the market by effectively carrying out their operations. The ABC also needed to invest adequate amount of capital to expand their production capacity in order to meet high demand of customers. The third issue, which was very important for ABC, was to make some changes in their organisational structure. The organisation had large amount of workforce especially at the supervisor and coordinator's level but they wanted to reduce it and wanted to hire additional managers at the top level. The kind of business that ABC was is a production firm whose main object is to focus on factory related activities. All the manufacturing firms priorities is one the operational side but they need a suitable strategy and planning which can only be carried out by the top management. Therefore, ABC was looking to hire managers to increase their staff at top management who can assist the Managing Director and CEO in preparing the suitable strategy and outline for the production of clothing products. (Heckscher 1994, pp.51)

The organisational structure, which ABC Company had before restructuring, was:

Below every managers like sales managers and sales representative in the Marketing Department, there were supervisors and coordinators who worked at the lower end of the organisation. The key features of this organisational chart were that it was hierarchical in nature and it believed in top down communication. It meant that there was not much room for two-way communication and the communication gap would even remain high between the top-management and lower management.

However after the restructuring in an organisational structure that looked like this:

Therefore, in this way, two managers added in every department and the hierarchies, which represent the eliminated supervisors and coordinators. It improved communication style in the organisation and the managers were able to lead the departments in a proper way. Therefore, the opportunity of two-way communication was possible in the organisation, which was very necessary for ABC in order to create cooperation among each other. It even decreased the number of employees in the organisation and the span of control even became easy for the managers to control few ...