This paper is an advisory to Mr. Martin Stevens of Parlexceltron Ltd, regarding issues faced by the company as it expands its business. It will provide a roadmap to be followed taking into consideration many theories and observations made by management experts over the years. It should be noted that there is no single formula to manage change and hence the roadmap will provide a solution based on theories and depending on the circumstances of the case.
A brief review of the facts of the case:
The situation in Parlexceltron based on information and facts provided by Mr. Martin is as follows. The company has earned a reputation among its suppliers as a reliable supplier of quality electronic components. As a result, the business began to grow and the company decided to diversify into related areas. The problem started when Mr. Martin was brought in head to the production and operations management department. The department was previously headed by Mr. Jon Jones, who resented the intrusion into his territory. Mr. Jones, a popular manager, was able to successfully transfer his feelings (openly) among his subordinates. Even though Mr. Martin eventually managed to gain the admiration of Mr. Jones, the damage had been done. To complicate matters, the team spirit and bonhomie that used to exist were lost when the company decided to create new departments for diversifying its business. The decision was to restructure the company into separate board and module divisions. One was the different pay scales between the employees of each division and the other was a fear of retrenchment or job loss. Even though the company is able to fulfill its business commitments, the productivity and environment that exists at present are far from satisfactory. It is to the credit of the management that the company has been able to grow consistently over the years. But the rapid expansion has resulted in a situation where the company is unable to handle human relations (HR) problems. The management has rightly felt the need to bring in expert HR advice to correct the situation.