AMAM636 Applied Management Assessment One| Project proposal for researching and solving problems for Never Green ltd. | | Lecturer: Graeme Martin | | chh449| 2012/3/7| | Executive Summary This problem solving proposal was requested by Alo Parker, general manager of Never Green ltd. It is a proposal to solve and investigates factors which causes the dramatic drop of profit levels during the past two years.
It was requested on the 27st of February, and is to be submitted by the 9th of March with methods to solve the problem.
Never Green ltd is recently suffering from a great profit decline, as well as internal matters such as the attrition, complaint and lack of motivation of the employees. The problems of the company is explained in this proposal, and various problem solving models, research methods and objectives are evaluated. Statement of problem Never Green, a rapidly growing New Zealand company which manufactures gardening and farming chemicals, has been suffering a dramatic drop of profits for the past two years.
Which brings the rise of difficulty to obtain further loans from the bank. The attrition rate had climbed resulting the drop of motivation of the employees. A number of employees had recently complained about inefficiencies and the lack of organisation in the company. These factors should be investigated closely and thoroughly. Most decisions regarding the company were made by the only two directors, which causes a backlog of decisions waiting to be made. Decisions weren’t always made in time when one or both directors were absent.
These problems relate to the lack of motivation of staffs, the questionable organisational structure of the company, which are important aspects of a business, and should be solved carefully. Description Never Green ltd. Was founded by its current directors, Alo and Mary. It was a local business in Auckland started by manufacturing weed-killing products. Marketing and product development activities were dealt with by Alo and Mary respectively. Within 10 years time, the business grew from a two people business to a 428 staff company.
However, the organisation structure had not changed much as the company grew. With Mary and Alo carrying out the roles of general managers, the company was financially successful for the first eight years, with growing rate of profit. The future plans for the business growth and product development weren’t formalised, the organisation structure weren’t clearly defined. The company has four manufacturing plants. In each plant, where was a Technical Manager, responsible for all manufacturing, and an Administrative manager, who is responsible for all financial and administrative matters.
The head office in Auckland handled all marketing, sales, overall financial activities as well as product development and design. All decisions, other than minor decisions were referred to the head office for Alo and Mary to consider. There is often a backlog of decisions waiting to be considered, especially when one or both general managers are not present. In the recent two years, the profit level of the company had dropped dramatically, although the business was still profitable, banks were beginning to concern about the outstanding loans and overdrafts.
Most of the employees are still loyal to the company. However, some are beginning to complain about the inefficiencies and the lack of organisation of the business. Objectives Various research methods should be used to investigate the problems to find a solution to achieve the following objectives. * To investigate the cause of the dropping profit for the business in the last two years; eliminate the problem to increase profit. * To reduce friction between employees based on social factors, to improve productivity and motivation.
* To find a solution to improve efficiency regarding to decision making process. * To increase profit level by implementing cost effective policy. Research Methods Interviewing managerial experts can be a useful way to seek solutions for the best organisational structure to implement, Never Green had not implemented another organising structure since the business was created. Therefore, the company has little understanding if another system would work better or for worse, so it is wise to consult with other experienced managers as a research.
Asking the right questions at the interview is crucial, as Adair (2010, p48) suggested that the key skill when you are thinking something through by yourself and when you are leading or participating in a team, is to ask the right questions. Surveying employees for the cause of attrition is a cost-effective way to find a solution to eliminate the problem. The key to solve the problem of attrition between employees, is to find out how and why it is happening, a surveying employees in Never Green ltd with relevant questions would help the managers understanding what is happening within the staffs.
Research and seek for information from useful text sources written by reliable people to find possible ways to improve profit margin. This would help the managers understand what type of organisation structure is available to implement within Never Green ltd. Problem solving model By analysing the strengths, weaknesses, opportunities and threats (SWOT) of the business, the problems could be identified, then look at what, when, who, where and why they happened, and check if they are caused by political, economic, social or technological factors.
The next step would be to generate possible solutions to the problem using models such as brainstorming, fishbone diagram, and mind mapping. This is an essential stage, if this was carried out correctly, multiple solutions may possibly arise. Business problems are open-ended, typically there is not one unique solution to a business problem, but there can be several good solutions. van Aken, Joan Ernst; Berends, Hans (2007, p9. ) Possible solutions for this problem can then be evaluated by using categorisation, elimination and ranking model.
This is for the researcher to prioritise in detail of the best solutions to implement to the problem. To implement the solution, the issues associated with the implementation has to be identified, the “what if scenarios” is the best model to use in this case. Timeline References Adair, J. (2010). Decision Making and Problem Solving Strategie. London, Koganpage. Aken, V. , Ernst, J. Berends, Hans. (2007). Problem Solving in Organizations : A Methodological Handbook for Business Students. Cambridge University Press.
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