The Rose Company
The first step in strategy implementation process is to define the actual strategy. The major strategy that the Rose Company is trying to pursue is to switch from a highly centralized type of manufacturing organization to a decentralized system, in which the general manager will coordinate activities at the actual production sight. The company decided to build a new plant, where it can implement new processes and methods. However, the major concern in this case is not strategy evaluation but its implementation.
When implementing a defined strategy there are numerous considerations that must be taken into account by general manager. First of all, implementing strategy requires that the general manager become involved in assuring that both the broad and detailed functional policies reflect the strategy that is being pursued. In other words, which functional policies needed to be implemented to achieve the restructuring strategy in our case? Given the assignment to make a decentralized operation to function properly, James Pierce will be dealing with a set of changed relationships.
Need essay sample on "The Rose Company" ? We will write a custom essay sample specifically for you for only $12.90/page
Instead of reporting to their functional counterparts in the home office, the heads of the departments will be under the authority of the general plant manager. James Pierce will be responsible for the management and administration of all functions and personnel, except sales, at Jackson plant. Although, the new policies are in accordance with the current strategy, there is a potential threat of constraints inside the company. James Pierce is a new person at the Jackson plant and it his first assignment in a major line job. With this being said, Mr.
Pierce’s implementation skills will determine the success or failure of the strategy. Developing an implementation plan requires the general manager to use and develop a number of analytic, administrative, and leadership skills. Based on the information provided in the case, James Pierce had demonstrated analytical ability, general administrative capacity, and was generally liked by people. From top management’s point of view, he had an essential toughness described as an ability to get all important tasks accomplished. If what is said about Mr. Pierce is true in fact, then he is a right candidate for this assignment.
Secondly, for a strategy to be successfully implemented, fits between the strategy and the organizational structure, processes, and systems must be created. The change of the organization structure, which is the main strategy for the Rose Company at the moment, will consequently influence all major systems and processes. In particular, Mr. Pierce needs to devise a functional control system that will help him to oversight all the activities at the Jackson plant. The new organization structure presented in exhibit 2 suggests the dotted line relationship between plant employees and home office executives.
Dotted-line reporting describes a relationship between an employee and a secondary supervisor/leader that provides additional oversight and guidance to the employee in the execution of his/her work. Since Mr. Pierce has never worked at the major line production facility, cross functional relationships could help him to supervise the actual production or other spheres that he lacked experience in. On the other hand, cross functional relationships presented by dotted lines usually creates ambiguity within the structure.
Connecting individual employees with dotted lines to functional vice presidents can result in confusion over who can direct the employees’ tasks. As was discussed previously, Mr. Pierce is a new person at the plant; therefore, in order to implement changes successfully he needs to set his authority from the early days. With this being said, the general manager should be accountable for all the directions he gives and should have the total control over all functional units at the Jackson plant. Taking everything into consideration, before accepting the position Mr. Pierce should insist on having direct control relationships with his employees.