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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. Authoritarian
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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
Authoritarian Deep and Powerful Influence Entrepreneur Technical Expertise Capacity to grasp problem Dominating in meetings Comparison of the Leaders
Experimental/Innovator Risk taker Highly Involved Bad listener Not a risk taker Less involved
Political and Manipulative 14-steps ahead Became more authoritarian Remain Political Conflicts Lack of cooperation
More of Bureaucratic Approach Few group Meetings Centralized Decision making Multi-Divisional More Group Meetings Decentralization within Centralization
Zwingli Corporation Organizational Development Plan Higher Sales ratio Sales and Marketing Change of Headquarter Product development Group Sales starts decreasing
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