Mayne Company Case Study For Organisational Structure And Change Subject.

2477 words - 10 pages

Mayne's backgroundMayne is an Australian company, operating internationally which represents more than 50 countries worldwide. Mayne was established 119 years ago as a parcel delivery service and, since that time, the company has evolved from one of Australia's largest transport operators to become a successful provider of health care products and services. Mayne Nickless Limited was listed on the Australian Stock Exchange on June 30, 1962. The company was renamed Mayne Group Limited in November 2000, enhancing its visibility in the marketplace to better reflect its broad, national health care and logistics operations. It was previously known as Mayne Nickless Limited. Mayne entered the health industry in 1986 and the Pharmaceuticals and Pharmacy businesses, acquired in 2001. It was previously managed by Bob Dalziel during the years of November 1995 to June 2000 but when things did not come to a better state, they were replaced by Peter Smedley in July 2000 who has reputable reputation as an asset acquirer for stakeholders when he was in Colonial. Thus, Mayne's stakeholders' expectations are high in which they hoped Peter would do the same to Mayne but unexpectedly, Peter Smedley was fired because of his wrong review and misguided strategy bringing Mayne to become worse than it was before. As problems were still not fixed and yet it became worse and was badly underperforming, in October 2003 , Mayne sold its hospital business to Affinity Health. With the sale of its hospital business, Mayne could concentrate on its core business rather than diversifying.Question 1- Mayne's problem and its causesThere are quite a few problems that Mayne currently have and it was mostly because of wrong management structure implemented. I would be concentrating on problems that occurred during the period before Mayne sold its hospital business and the era when Peter Smedley was in charge. Mayne's hospital profit margins have been declining for a few years.Firstly, one of its major problems was over centralized management. Michael wrote in his article that "A number of analysts blamed Mayne's centralized management structure, saying doctors and directors of nursing at hospitals had become frustrated at being unable to make decisions on capital expenditure and cost cutting. In response doctors had assigned their patients to other hospitals." In Organisation theory (4th Ed.), Neil Barnwell defined centralisation as "The degree to which decision making is concentrated in a single point in the organisation usually the top management." Although centralisation is important, as it allows the management to take control over the decision making and information processing systems, but the balance of the centralisation and decentralisation must be maintained. As over centralisation results in a too isolated decision which makes the employees to feel alienated. According to Barnwell, "employee alienation is the distance an employee feels between themselves and their work". In...

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