Question

Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers' expectations. The finance department blames both production and marketing for declining return on investment and bad marketing.

State the quality of management that the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?

Answer 1

As per the given situation, the quality of management lacking in the organisation is coordination. This can be judged from the instance that various departments blame each other for the declining profits and market share of the company. Coordination refers to a path through which the group functions are linked up. It binds the people of the organisation and their activities to ensure a smooth functioning of the work. It is that force which unites the working and efforts of the people of the organisation towards the common objective of the organisation. It links the interrelated functions of management. Every organisation has various departments and sub-departments such as production, sales, finance, etc. Each of the departments works independently and with its own policies and objectives. In such a case, there may arise a conflict between the two departments. Coordination is needed to synchronise the activities of each department towards the achievement of common goals of the organisation. For instance, in the given situation, the various departments rather than blaming each other should work with each other in a coordinated manner and work collectively to improve company’s position with regard to profit margins and market share.

The following steps can be taken by the management to bring the company back on track.

1. The market should be studied carefully and the demand must be analysed such that the products can be modified accordingly.
2. The quality of the products must be improved.
3. The various products and their features should be marketed well.
4. Customer satisfaction should be worked upon through measures such as customer care services and feedback.
5. Each of the departments must be motivated to work collectively towards the common goals of the organisation rather than indulging in a blame game.