Gsm Case Study.

3640 words - 15 pages

1.0 IntroductionOrganisational change is no longer an option but a necessity. Today's business environment produces change in the workplace more suddenly and frequently than ever before. According to Bolman and Deal (1997), organisations everywhere are struggling to cope with a shrinking planet and global economy. The key to the individual and organisational survival is the ability to adapt to changing work conditions. Change will be ever present thus understanding of human factors is needed along with the skill to manage and lead change effectively. Goldston (1992) mentioned that the "true art of management is in reading the symptoms of a company heading for trouble and taking the appropriate steps to fend off disaster".In the case of Gulf States Metals Inc. (GSM), a large nickel refinery plant had suffered poor performance since its inception and is under threat of shut down by its parent company International Metals Inc. The management of GSM was given two years to turn around the company or risk closing down the company. The layout of this assignment begins with analysing the issues that contribute to the poor performance. Secondly, present alternative solutions to address the problems. The final section comprises of recommendations based on the short-listed alternatives.2.0 Case AnalysisIn understanding what the problems of GSM are, it is useful to approach the case from a variety of theoretical perspectives. The four perspectives suggested here: structural, human resources, political and symbolic can be useful ways of viewing organisations. Each frame rests on a different set of assumptions about what drives organisational thinking and behaviour (Bolman & Deal, 1997). In the following sections, I will briefly describe each of these frames and illustrate how these frames might be used in conjunction with this case.2.1 Structural FrameThe structural frame is a good place to begin an analysis of the case because it starts with the straightforward assumptions that formal roles and relationship drive organisations (Bolman & Deal, 1997). GSM's organisation structure is a tall hierarchical model based on the functional model with a narrow span of control as the power is centralised at the very top. This organisation structure indicates that the management style is bureaucratic in nature and most of the management staff displays autocratic style of leadership. The various tasks in GSM are distributed into specialised jobs and the management hold the departments as well as the employees responsible for the effective performance of their duties.Based on GSM's top-down hierarchical model, the communication flow seem to be one way, downwards and there is no indication that employee opinion has been sought in the administration of the company. This form of management style creates a sense of power among management staff; especially the general manager, plant manager, director of operations and the management, who feel that they have the right to...

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