Turning Around a Failing Business
Turning around a failing business is a good managerial challenge; it requires solving a number of problems through the creation of an entirely new corporate atmosphere. The way in which managers solve this kind of problem depends on their organizational structure that they chose to adopt.
Outdated product lines turn people against the company by causing them to seek alternative products from other companies. Research and Development is the first step towards updating a failing product line. The research should focus on unique technology and innovations in production that will set the product line apart from everything else. In addition, the product line should be based on market research to determine what segments of the market are being underserved, and what they are looking for in a product that is causing them to reject the failing company’s offering.
Adversarial communication points to a problem within the corporate environment, as does the cutthroat competition for resources. Both problems are linked, and they are both manifestations of too much competitive atmosphere. Competition between employees is only good when it does not come at the expense of teamwork, so a less subjective project selection process must be created to take some of the anti-social pressure out of the relationships between employees. By assuring that all projects are being evaluated on the same playing field, adversarial communication will be cut down as well.
As the main problems of the company center on a negative business environment, the first step of the manager will be to create a much more hierarchical command structure. The hierarchical environment may be more authoritarian, but it will allow us to create a policy that will send top down direction to employees, and will prevent them from having negative communication by banning it in an official company policy. One way to create more positive communication is to bring in an outside consultant to help with custom essay writing.
Transferring the company to the new organizational structure will require a rather fundamental shift in the way that project teams are created. In a post bureaucratic system, teams are organized on a much less hierarchical way than the top down bureaucratic system. It will be relatively easy for the new manager to change the structure of the company because a bureaucratic system is very complex. Until the failing division is turned around, the main business decisions will be made by the new manager. Putting one person in charge of the rehabilitation of the company prevents the negative attitudes from the managers below him from influencing the risk taking that will be necessary in order to turn the company into a successful one.
More by this Author
Millions of people rely on hand sanitizer to keep them clean and safe from bacteria. With flu season approaching, is hand sanitizer as effective as it claims to be?
The United States army is a perfect career choice for those looking to gain new skills and to become more attractive to potential employers. One of the main things in today's job marketplace that truly sets...
"Everyone belongs to many different communities and/or groups defined by (among other things) shared geography, religion, ethnicity, income, cuisine, interest, race, ideology, or intellectual heritage. Choose one...
No comments yet.