Case Study
Scenario by
Beatrice R. Floyd
Vision Statement
The vision of management is to find solutions to saving
funds
Promote strategy for the business
Increase communication levels within the organization
Goal and Objective
Resolve and verify the vision of management.
Share cooperation styles of business.
Communication levels.
Accounting practices.
Profit structure.
End results.
Today’s Situation
The situation within this organization was mainly
management capabilities.
CEO’s truly don’t know how to fulfill their role without the
assistance of others.
Managers cannot function without a team.
Management has issues with communicating properly.
How Did We Get Here?
The company ended up in the current situation due to
complex financial issues.
Original assumptions that are no longer valid.
Misguided data regarding the company.
Too many chiefs and not enough Indians.
Available Options
Share the new vision of the newly elected CEO.
Advantages include derivatives and hedges which
means there’s a contract between two or more
parties.
It’s value is determined by fluctuations in the
underlying asset while protecting the corporation.
Recommendation
Styles by the new CEO should be attempted.
Use the vision proposed by the new CEO.
Seek proper training and enhancement for the employees.
Use various styles as presented in the Case Study
Corporate senior management
style
The CEO received a memo from the accounting
department about potential problems concerning
how the derivative model was constructed and no
action was taken.
These actions resulted in the company being
questioned about accuracy of quarterly sales,
skewed data and the corporations future.
Cooperation senior management style cont’d.
The new CEO’s vision was to use complex
financial instruments to absorb the risk of the
cost of and price swings for the organization.
The new CEO’s vision was also to verify which
plan would work best.
Authoritarian Management Style
A common style and is defined as having a
manager at the head of the firm who decides the
policies for all managers.
Managers who operate with this style expect
employees to complete task given to them in
ways that have been outlined by senior
management.
Management style
Senior managers tend to assign duties to their
employees without knowing the duties
themselves, meaning the actual responsibilities
assigned.
There’s no room for employee autonomyemployees know what they need to do, how they
need to do it and when it needs to be done.
Autocratic Management Style
This style exists when the manager makes
unilateral decisions with little or no regard for
their employees.
In these situations , the decisions are a reflection
of the manager’s personality and their opinions.
Autocratic Management Style:
contd
While an autocratic manager may appear to have
a well-managed group of employees or business
as well as project an aura of confidence, this
management style can be stifling for employees
who crave a level of autonomy.
Reference:
http://mba-online-program.com/managementtheories-styles#izz2aYF7ALnl
Accounting Practices
The accounting practices Resources Unlimited
Corporation had, was a major problem for the
company and their accountants.
Due to the lack of senior leadership, the talk in
the media centered on the corporate profits being
considered unrealistic.
Accounting Practices
The quarterly profits of gas and oil accounts as well were a
major concern as well.
There was also accounting practices dealing with a
discrimination law suit over salary.
The law suit brought major attention and concern for the
organization.
Major concerns
There were four major concerns within the
company regarding their accountant:
Is the information being reported in the media
accurate regarding quarterly sales\?
Were the reports based on skewed data alone?
What baseline was Wall Street going to grade the
corporation’s future earnings?
Profit Structure
The profit structure was “unrealistic” according
to the quarterly profits of data from 1986 to 1988.
The company’s issue with profit structure took
notice when internal analysis projections were
displayed about the oil accounts.
There was no real accuracy reported throughout
the year.
More on Profit Structure
The company needed to be more accurate
regarding their information and all data collected.
The company could not estimate the variant
number of gas accounts for the same period of
accuracy in question.
The necessity of accuracy within a business is
very important.
Communication Levels
The lines of communication were very limited and
showed that the CEO only produced one way
communication:
One-way communication is linear and limited
because it occurs in a straight line from sender to
receiver and serves to inform, persuade or
command others.
Wall Street asked about information on the
number of gas and oil accounts the corporation
had, and was expected to have them updated and
accurate within two years.
The accountants were facing issues and informed
the CEO who took no action towards this matter.
The corporation also faced a continuous problem
, dealing with discrimination which was not good
for the company.
Conclusion
The CEO had a clear vision, that being to get
gainful employment for their employees.
Resolve the pending discrimination law suit
issues.
Find ways of keeping better records and reports
for the business.
Allow their employees to seek the training
necessary to complete their jobs accurately.
Always keep lines of communication flowing.
References
Corporation Case Study week Nine.
Cooper, Donald R. & Schindler, Pamela S; (2011) Business Research
Methods, McGraw-Hill Irwin. New York, NY.
http://www.mba-online-program.com/management-theoriesstyles#izz2aYF7ALnl
0
