Kongstrup Machine Factory Case
Ramon Merbis 1665825
Krijn Roodenburg 1656002
MPEN-IB04
Content
Page 3 The challenges facing Kongstrup after the collapse of the alliance with MB
Page 4 Advantages and disadvantages of an open approach to decision-making
Page 4 Environmental uncertainty for Kongstrup
Page 5 New organizational structure Kongstrup
Question 1: The challenges facing Kongstrup after the collapse of the alliance with MB
Kongstrup Machine Factory was established in 1894. The company’s activities are the development, production and sales of agricultural machinery. In 1986 they merger with a company calls Multos Biancos . Multos Biancos went to China at the end of 2008 and had
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Kongstrup went for an increasingly comprehensive product range. They could not handle this product with their structure. A better option is to focus the company at one product or they should change their organizational structure to a divisional structure. One of the strengths of a divisional structure that it is suited to fast change in unstable environment, where the company now is after the cancellation of the cooperation agreement.
The fact that the company did not have much experience in handling crises was a serious problem for Kongstrup. This is not really their fault. The management of Kongstrup could have learn something about a termination of a merger. They were better prepared and the ruin after the cancellation was very less.
¹ (R. L.Daft, J. Murphy, H. Willmott, Organization theory and design, 2nd edition)
² (R. Duncan, Organizational dynamics (1979), W. Alan Randolf, Gregory G.Dess , Academy of Management Review (1984)
Question 2: Advantages and disadvantages of an open approach to decision-making
An open approach to decision-making
Advantages
Disadvantages
An advantage of an open approach to decision-making is that nobody has all the power to make a decision. Everyone can give their opinion. There is more knowledge available
Less efficient. Decision-making takes a long time, the management must know of every employee what their opinion is. You need to negotiate with your employee by almost every decision
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
Taken from, Waddell, Jones, and George (2013) 3rd Edition. Contemporary Management, Sydney, McGraw Hill (pages
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Robbins, S. P., & Judge, T. A. (2015). Organizational behavior (16th ed.). Upper Saddle River, NJ: Prentice Hall. (Note: Refer to Chapter 3)
Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2009). Managerial economics and organizational architecture. Chicago: Irwin.
Despite the efforts of lawyers and judges to eliminate racial discrimination in the courts, does racial bias play a part in today’s jury selection? Positive steps have been taken in past court cases to ensure fair and unbiased juries. Unfortunately, a popular strategy among lawyers is to incorporate racial bias without directing attention to their actions. They are taught to look for the unseen and to notice the unnoticed. The Supreme Court in its precedent setting decision on the case of Batson v. Kentucky, 476 U.S. 79 (1986), is the first step to limiting racial discrimination in the court room. The process of selecting jurors begins with prospective jurors being brought into the courtroom, then
Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication the magazine has been fairly successful. Now the publisher is interested in expanding the magazine’s advertising base. Potential advertisers continually ask about the demographics and interests of subscribers to Young Professional. To collect this information the magazine has commissioned a survey to develop a profile of its subscribers. The survey results will be used to help the magazine choose articles of interest and provide advertisers with a profile of subscribers. As a new employee of the magazine, you have been
Knights, D & Willmott, H 2012, 'Organization, structure and design'. in D Knights & H Willmott (eds), Introducing organizational behaviour and management. 2nd ed. edn, Cengage Learning, Andover, pages 240-295
Robbins, S. P., & Judge, T. A. (2011). Organizational Behavior (14th Edition). Boston, MA: Prentice Hall.
Charles M. Carson, (2005),"A historical view of Douglas McGregor's Theory Y", Management Decision, Vol. 43 Iss 3 pp. 450 - 460
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory.
The terms have gained some currency although, from a theoretical point of view, the underlying conflicts and tensions contained within the models have not been sufficiently explored and, from a practical perspective, available empirical evidence would suggest that neither model accurately represents what is happening within organizations (Storey 1992; Wood 1995). This leads us to
Organizational theory studies the various variables that influence the behavior of an individual(s) working within an organization, but also, “prescribes how work and workers ought to be organized and attempts to explain the actual consequences of organizational behavior (including individual actions) on work being performed and on the organization itself.” (Milakovich & Gordon, 2013, p.145). Of the many approaches to organizational analysis, Classical Organizational theory has been, even to this day, extremely influential by focusing on more formal concepts such as bureaucracy, rationalization and scientific management. Although, over the decades organizational management has taken on a more human relations approach to getting more productivity out of employees, it is contributors like Max Webber, Fredrick Taylor, and Luther Gulick that laid down the basic foundation organizational theories by recognizing the need for control and procedures.
Bloisi, W., Cook, C. & Hunsaker, P.(2003). Management and Organisational Behavior: European Edition. Berkshire: McGraw-Hill Education