This document includes 7 examples of challenges and the corresponding proposals. The purpose of this document is to give lots of examples of the challenges and proposals that you could use in your exam, I suggest using 3-5 of each in total. I have made these challenges and proposals based on The F...
The Fachetti Group key Challenges and Proposals:
Contents:
Challenges:
● Clash in management
● Issue with motivation (use of Taylorism)
● Redeployment of restaurant staff
● Staff turnover rising
● Net profit and stock wastage
● Market share has fallen
● Poor change management
Proposals:
● Implement Paternalistic management and leadership style
● Elton Mayo’s Theory of Human Relations
● Upskilling through mentoring staff
● Stand-alone targets
● Six Sigma model
● Kitemarks
● Consulting
Challenge one: Clash in management:
There is a clash between Katrina Szynalski the deputy divisional manager of the manufacturing
division and Sunny Elder the divisional manager of the manufacturing division. This clash arises
because both managers have different beliefs and behaviours towards management. Katrina
uses a Democratic leadership style where she is compassionate about her staff, consulting with
them and encouraging their input in decision making. The benefit to her using this approach is
that her subordinates feel naturally engaged and valued because she is asking for their direct
input in decisions. However, a disadvantage to this approach is that decisions can take a lot
longer to make as each employee has to be consulted for their opinions. On the leadership
continuum created by Tannenbaum and Schmidt, she is further right at the ‘consulting’ stage
which puts her behaviour as a high supportive and low directive. This links to McGregor’s
Y-Theory because it is likely that Katrina believes that employees like working and facing
challenges. On the other hand, Sunny uses an Autocratic management style where there is a
strict set of rules that staff must follow and they are rarely asked for their input. The advantage
of this style is that all decisions are made by Sunny; a fully qualified and experienced manager
who fully understands the businesses goals and can make decisions corresponding to them.
However, in the long run, and Autocratic style can cause higher staff turnover because it creates
a poor working environment and relationship between management and employees causing
them to not want to work at The Fachetti Group anymore. Sunny’s behaviours put him at the left
of the leadership continuum at the ‘telling’ stage as he used a high directive and low supportive
approach. This links to McGregor’s X-Theory where managers believe employees to be
inherently lazy and therefore should follow a strict set of rules created by an Autocratic
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, manager. As both managers have different beliefs and behaviours towards how employees
should be managed, this will obviously cause a lot of conflicts. For example, Katrina believes
that Sunny’s Autocratic style limits staff creativity and that he lacks compassion for employees,
whereas Sunny believes that Katrina’s Democratic style means that she cares too much about
employees at the expense of profit and cash flow. This clash will become even more
pronounced in the future as under Fabio’s new plan both Katrina and Sunny are closely working
together in the manufacturing division and with the distinct difference in their management style,
further conflicts will cause a poor working environment for subordinates as if there are conflicts,
functions of management such as coordinating and organising cannot be used successfully
which will result in a higher level of staff turnover which worsens the strategic objectives. Higher
staff turnover will mean that The Fachetti Group has to spend more on recruiting which will
increase costs and further reduce net profit.
Proposal one: Paternalistic management and leadership style:
The Fachetti Group should implement a Paternalistic management and leadership style to
resolve the conflict between Sunny Elder the divisional manager and Katrina Szynalski the
deputy divisional manager of the Fachetti’s Kitchen manufacturing division. A Paternalistic style
involves consulting subordinates for their opinions which has the advantage of making them feel
engaged and valued, which would align with Katrina’s beliefs. However, the manager still gets
the final say in the decision-making process which has the advantage of still being able to make
decisions with expertise and clear correspondence to the businesses objectives which would
satisfy Sunny’s view to management. The Paternalistic management and leadership style
makes a workforce operate as a family unit, hence the ‘paternal’ in its name. This will benefit the
strategic objective of reducing staff turnover to January 2020 levels because there will be fewer
conflicts between Katrina and Sunny as the Paternalistic style takes characteristics from both
Democratic and Autocratic approaches which will create a common ground of agreement to how
employees should be managed. This will create a positive working environment as employees
feel valued and engaged as decisions are made in their best interest which subsequently
reduces the level of staff turnover.
Challenge two: Issue with motivation:
The Fachetti Group currently uses Taylor’s Scientific Management motivational theory to
motivate its workforce. Taylor stated that employees are only motivated by pay and financial
rewards. This is shown through The Fachetti Group paying above average wage rates in an
area with already high rates and employees are offered bonuses which is a financial motivator
for hitting targets. The advantage to using Taylorism is that his Time and Motion Study it showed
that there was ‘one best way’ and that if it was adopted it would significantly increase the
efficiency of business operations and therefore could positively impact the strategic objective of
zero defect production. However, the issue with The Fachetti Group only using Taylorism as a
motivator is that it leaves the higher levels of Maslow’s Hierarchy of Needs unfulfilled. There are
5 tiers to Maslow’s Hierarchy which are; physiological, safety which are currently both being met
by The Fachetti Group because high levels of pay are offered and there is a high level of job
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