Organizational Case Study: Root Cause of All Organizational Problems
1. Zeeshan Valliani
Institute of Business Management
Student ID: 2011-3-07-12543
18th December, 2011
Assignment 2
Organizational Case Study
Organizational Behavior
Ali Mujahid
2. PART A:
BACKGROUND INFORMATION
COMPANY STRUCTURE
HISTORY
The XYZ Company began its operations in 1988. Soon after its formation it entered the
field of Information Technology and Telecommunications by developing and distributing
IT and telecom equipments. It became the market leader in 2000 representing the most
important companies in these sectors such as Microsoft, Hewlett Packard, Compaq, IBM,
Lucent Technologies (AT&T), Oracle, Wipro and Novell.
The Company built its solid foundations in IT and telecommunications over a decade.
On July 27th, 1997, company was incorporated to consolidate the telecommunications
and technology interests. The same year XYZ Company established its first offshore
support center in Pakistan, India, Canada, UK, United States and Romania.
3. FUNCTIONS
Product Development
The Product development Office works with Marketing and other agencies to refine and
implement changes required for selling products and services.
Distribution & Marketing
The Office is responsible for creating and implementing marketing strategies and
building customers.
Corporate Affairs
The Office of Corporate Affairs is responsible for public affairs and public diplomacy,
legislative affairs, diplomatic engagement, and outreach to other businesses.
Admin
The Admin office is responsible for budgeting, financial management and policy
development.
ISSUES
Poor communication channels
Friction between people and departments
Conflicts between subordinates and manager
Lack of support from higher management
Lack of information
Lack of job recognition and career development
Decreased Productivity
Salary negotiation deadlocks
Organizational Politics
Lengthy Decision Making Process
No Succession Planning
4. PART B:
PROBLEM STATEMENT (ROOT CAUSE PROBLEM)
Using 5 Why‟s Technique to evaluate the root cause problem:
Low productivity
Low productivity is due to the low motivation in the subordinates to perform their duties.
Low motivation
Senior Managers avoid access to information and career planning for their subordinates.
Poor Communication Channels
Subordinates feel frustrated as their Senior Managers shares information only on
„need-to-know‟ basis.
No Participation in decision making
Senior Managers avoids participation of their subordinates in Decision
Making process due to job insecurity fears
Greed
Senior Mangers desire to strengthen their authoritative position.
“Corporate Greed is the root of all
problems”
5. PART C:
PROBLEM SOLVING
TO: Where do you want to get to?
Corporate Greed is the root of all problems facing the XYZ Company.
LO: Logical Analysis
The Senior Managers drive to increase their earnings and sustain their authoritative
position hampers the company progress as it puts employees in conflict against each
other in the race for the increasing salaries and rewards that leads to greed and other
organizational issues.
PO: Possibility or Alternatives
What's the alternative? Socialism as capitalism at this point is suffering from the
backlash of its individualistic tendencies that includes Corporate Greed as its main
component that results in all organizational problems—it has so far failed to integrate
social consciousness for its worker.
XYZ Company should realize its corporate social responsibility and focus on team work
rather competition.
SO: So What Shall we do (Make your decision)
o The company shouldn‟t reward employees with money but by providing them
with new learning opportunities
o The company should not cherish specific workers with annual ranking and rating
systems as it puts negative impact on other employees and makes them against
one another and promotes competition
o The company should emphasize on collaboration versus competition as it ensures
a culture of working together, helping, teaching, and leading.
o The company should make people enjoy their work.
6. o XYZ Company needs to change its management system as it is based on the
outdated behavioral approaches. The best managers provide outlets for autonomy,
innovation, and purpose
o The company should eliminate job security fears as its employees aren‟t
responding well to threats and if they start occurring on a regular basis then they
might sabotage the system undermining the aim for quality results.
o XYZ Company should hire next era managers that can bring change and can
demonstrate their care about their people.
GO: Get Going (The Implementation Phase)
It‟s the time for a change and adaptation to a new approach as the era of greed is over. XYZ
Company needs next era managers who try new approaches in the organization which enable
employees to have joy and meaning at work WHILE also getting great business outcome.