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Assignment Two.docx

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Thompson Rivers University
MNGT 1111
Ron Lakes

Assignment Two Is This the Beginning of the End? Q: Based on the information presented in the case, identify five examples of poor planning on the part of this company. The first and most important example of poor planning is simply the lack of an HR department until 2 years ago and having previously not set aside the time and resources to create one. This has had disastrous effects on the operation of the company and is the most obvious mistake, at first glance. Secondly, there is no formal hierarchy of authority set up within the organization, which leads to errors in production and a lot of frustrated managers and employees. There is no vertical integration in the company nor is there any process by which employees report. Staff do not communicate together on projects, the older staff go around their supervisors directly to the president who provides all the older staff with special treatment, which is most likely the leading cause of why Peter, Deanna and other supervisors are planning on leaving the organization. Furthermore, each department has no form of an organized budget, which is key in enforcing communication, coordination and providing direction. The company simply operates by throwing money where and when it is needed. A company simply cannot function without a budget to determine how their money is best spent and what functions of the company require it. This is also a leading factor of stress to the supervisors who are clearly unhappy with upper management, and for good reason. Additionally, an expansion plan that could have proven to be a turning point in the companies operation has only led to more frustration for Peter. The expansion should have been planned to allow for some small error so that it would be ready in time. Also, those overseeing the expansion didn’t stay updated with the progress and didn’t communicate with whomever was in charge of the expansion leading to the improper installation of the wiring causing the end of the plant to not be supplied with enough electricity to maintain production. This is now forcing Peter to orchestrate the move of equipment during the busiest time of year, which is most certainly going to end in failure. Lastly, because the company had not previously planned or established a production quality test, they have recently made a major error with a shipment to a major customer. By simply placing a quality test at the end of production to ensure that the product is what the customer requires, that it is the right quantity and that it meets a quality standard for that product, they should not have made this mistake. All of the major problems that have been listed above could’ve been avoided if the company had taken some time as they were growing to plan for their future. Because of this scarcity of planning, it has caused the company to lack structure and communication, which has lead to no HR department, no budgets, a failed expansion, a deficiency in organizational communication and an unreliable production process. Q: Explain the impact that poor planning has had on Peter and Deanna, and on the success of the company as a whole. Poor planning has greatly impacted Peter and Deanna in similar manners. It makes both of their jobs significantly more stressful, frustrating and challenging. Poor planning has left Deanna with an inadequate amount of time and assistance to get a legitimate HR department functioning. This causes her to spend most of her time on recruiting and when she does receive help she shares the help with production, where they are usually pulled back to for more important matters. Also, as she lacks a budget, it makes it extremely difficult for her to organize her resources and determine where they are best spent. The lack of budget has a much larger impact on Peter, as he is the organizations production manager. It makes Peters already stressful job almost impossible as organizing the amount of product needed for each order is not efficient. They just order materials as needed and without a budget to restrict/ limit the resources, the possibility of overspending or failing to meet an order is very possible. Lastly, having a workforce that refuses to work together and communicate makes it very difficult for Peter and Deanna to do their jobs and will lead to the failure of the company. Without an established communication chain that upper management supports and follows, the company will find it very difficult to be successful. They wanted Deanna to set up clear policies and rules so that everyone knew what they were to do, but if senior employees can just talk to the president and get a bypass around the rule, then it is likely that the company will lose both Peter and Deanna due to the inability to link the managerial levels of the company. Q: What scheduling technique(s) could be used by this company, and in what area(s)? The company could have used a Gantt chart to monitor the production process. If this scheduling system had been implemented then the production process would be much more organized and allow for frequent updates and provide an opportunity to inspect the products process to make sure that it is being produced to the required standards for the customers. They could have also used a PERT chart for the organization of one of the large projects, such as the structuring of a Human Resources department to make sure activities were coordinated across all of the other departments. This would ensure the communication required to get the department functioning as well as enforce all the new policies that are trying to be instilled in the organization. This would include meetings between departments as well as meetings for employees to learn the new functions of the HR department. Practising What You Preach Q: Using the information presented in the case and on page 48 of your textbook, identify the preventative, concurrent and corrective controls at work for the audit team. Preventative: Controls that anticipate/prevent undesirable outcomes For an audit to be successful, it requires very careful planning and strong communication between all of those involved. This planning includes gathering all relevant data on the company being audited, their audit history and which employees would be best suited for the specific audit. By setting up a budget, an audit program and properly assigning procedures to individuals on the audit team, Zahid is taking various preventative controls to ensure that the audit is successful and that everything goes according to plan. Furthermore, through strong communication, a LAN for employees to discuss and numerous meetings, Zahid has established a strong sense of community for the employees where everyone knows their specific roles as well as numerous opportunities to talk with Zahid to make sure tasks are being completed properly. Concurrent: Controls that are enacted while an activity is in progress. With Zahid monitoring his employee’s progress on the audit, he is the concurrent control. By maintaining strong channels of communication, it allows him to better supervise the actions and work of everyone on his audit team and be able to correct any mistakes as soon as possible as well as allow him to provide insight to specific situations when an opportunity arises. Corrective: Provides feedback after an activity is finished, to prevent any future deviations. The actual audit itself acts as a corrective control to inform the company being audit of what the audit found or didn’t find. Furthermore, at the end of the audit, Zahid reviews all the information collected by his team to make sure all the required standard procedures were applied. Once he believes everything has been completed properly, he submits it to his manager for review and answers any questions he may have pertaining to the audit. Once the manager is satisfied, a
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