The Old Model, Management by Instruction: The Case of Allworld Foods in Australia
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During the twentieth century, organisations relied on the system of believes and values that made up the model for management. The old model, management by instruction (MBI) and management by objectives (MBO) no longer work effectively in today’s context. A new model which focuses towards better quality and customer satisfaction is needed, also known as the management by values (MBV). It is used as a tool to understand and applying knowledge per ideas advance by behavioural sciences.
MBV is becoming more popular as a strategic leadership tool which proves to be of a huge potential for practical development, resulting from its great relevance at different levels. MBV absorbs the complexity in everyday routine work which is surfaced due to…show more content… One of the main competitor, Mercury Consolidated had emerge recently and posed a great threat to AF, causing AF to loss many customers and ultimately a decrease in dividend and leading to a few other issues.
Within the company itself, employees, morale had decrease and their job satisfaction was very low and thus they lost their sense of identification with the company as well. Internally, upper management staff and the board of directors are having conflicts as well. All these issues affected how the customers feel; feedback had shown that AF’s customers are unhappy with AF’s staff service and their product knowledge.
Linking the two cases
AF still relies on the model of MBI and MBO thinking that their traditional customers will always come back to them base on their past experience hence they did not research on new strategies. Whereas, their main competitor, Mercury, adopted the MBV model and changed their product mixed and targeted at the new generation consumers. Mercury’s adoption of the MBV model and orient themselves towards quality and customer satisfaction had proven themselves to be more successful than AF, causing AF to suffer a decrease in dividends and loss of customers.
In order for AF to gain back the customers and increase their profit, they had to do away with the old system and similar to Mercury, adopts the MBV model. MBV purpose is to simplify the complexity faced by the organisation,