Valerie Morgan Case Study Essay, Research Paper

Valerie Morgan Case Study

Partnering Leadership and Controls

Margaret Glendinning-Welch

December 13, 1999

Abstraction

Morgan Publications is presently in the leading crisis phase of the company? s development. This is characterized by the demand for more formal agencies of communicating, unwanted direction duties of the laminitis and increasing struggles of the section directors. A strong direction entity is needed to draw the organisation together and help in puting a way for the hereafter. This way includes set uping more formal systems and controls, but without giving section director? s liberty and creativeness, and keeping a decentralized authorization construction.

The Problem

Morgan Publications suffers from a leading crisis as evidenced by Valerie Morgan? s indecision and a deficiency of basic direction systems. Her desire to be a leader and pioneer is hampered by her administrative duties. ( Turner & A ; Stevenson, 1986, 779 ) By depriving herself of the administrative and direction function, following minor structural sweetenings and controls, she could concentrate on the hereafter and growing of Morgan Publications. These alterations can be implemented without giving the? little concern? environment or restricting the liberty and creativeness of the employees. ( Turner & A ; Stevenson, 1986 781 )

The Leadership Crisis

Features of the leading crisis phase include: increased figure of employees doing a demand for formal alternatively of informal agencies of communications, laminitiss being burdened with unwanted direction duties, and struggles between section directors [ leaders ] addition. ( Greiner, 1972, 42 ) . The realisation that professional direction is needed is coupled with an involuntariness of the laminitis to step aside and release control. ( Greiner, 1972, 42 ) . Morgan Publishing and Valerie Morgan exhibit all these jobs associated with leading in crisis.

Morgan Publishing has grown from 10 employees in 1982 to 42 employees in 1986. ( Turner 1986, 775 ) During this clip several formal systems were adopted ; nevertheless, section caputs were loath to back up them. Department directors set ends in the signifier of budgets, but refuse to confirm them with requested supportive certification. ( Turner 1986, 776 ) Valerie Morgan? s petition for information from her directors translates into a deficiency of trust or a limitation of their independency to them. ( Turner 1986, 776 ) The system for pull offing delinquent histories does non follow established policy and consequences in advertizements being pulled good after the 30-day bound, normally non until after 90 yearss. ( Turner 1986, 777 ) Additionally, the gross revenues section is non notified of delinquencies and merely finds out when the histories call to kick. ( Turner 1986, 777 )

As a director, Valerie Morgan maintains an? I don? T know and I don? T attention? attitude that leads her to? disregard the administrative constituent and merely state person else to do a decision. ? ( Turner 1986, 779 ) She is saddled with unwanted direction duties that leave no clip for the? originative, large image issues? or for developing new merchandise constructs? . ( Turner 1986, 767 ) By and big, twenty-four hours to twenty-four hours determination devising is left to the section directors and staff with her being involved in a random, multi dimensional kind of manner, with no clear aims or docket for her to concentrate on.

Conflicts between sections originate due to miss of communicating, clear defined policies, and controls. A salesman will assure particular infinite to one seller doing the conference section to compromise their place with other sellers. ( Turner 1986, 777 ) The accounting section mails past-due notices to advertizers without warning the gross revenues section. ( Turner 1986, 777 ) The production director uses a? pen and paper? method of accounting because the current system does non supply her with needed information to keep answerability. ( Turner 1986, 780 ) About every month the advertisement, column and production sections are in convulsion over the closeout of the

Magazine, due to the deficiency of an established formal standard. ( Turner 1986, 767 )

Management in Action

Morgan Publish needs to engage a director who has the necessary cognition and accomplishments to draw the organisation together. ( Greiner 1972, 42 ) By put ining a capable director, Morgan Publications can bask a period of growing and way. ( Griener 1972, 42 ) Occupation assignments have already become more specialised and some organisational construction is already in topographic point. ( Turner 1986, 778 ) While controls and communicating are needed at the strategic degree, this should non happen at the cost of departmental liberty and the decentralized determination doing procedure.

Decentralized duty and determination devising has improved many large houses? response to the market topographic point. ( Mathis & A ; Jackson, 1997, 210 ) Corporate giants such as Microsoft are taking the waies of smaller houses headed by enterprisers, like Valerie Morgan, and commanding costs and bureaucratism. ( Mathis & A ; Jackson, 1997, 210 ) The final payment for believing large and moving little is experienci

ng growing in gross revenues when rivals are merely keeping their ain. ( Mathis & Jackson, 1997, 210 ) This type of construction is a positive force in Morgan Publishing and does non necessitate to be changed.

Managerial controls are necessary at this phase in Morgan Publishing? s concern rhythm in order for the concern director and Valerie Morgan to keep operational stableness. ( Mosely et Al. 1996, 493 ) Reports on delinquent histories are necessary for direction to do cardinal determinations affecting budgets, liquidness, compensation, or to set up new payment guidelines. These studies are besides of import to the gross revenues section to direct energies to current history advertizers and non delinquent histories. Having advertizer & # 8217 ; s dual cheque advertizements for truth after layout would cut down mistakes and struggles with the accounting and gross revenues sections. These feedback controls help the sections work together and maintain control at the lower degree while fulfilling upper direction? s need to track advancement.

Performance criterions need to be established. Standards are of import for directors to put clear aims to impart the organisations energies. ( Mosely et Al. 1996, 497 ) Some specific criterions that are needed include gross revenues quotas, budgets, occupation deadlines, and subscriptions. ( Mosely et Al. 1996, 497 ) By implementing these criterions the determination doing process becomes more everyday and clearly defined for all involved.

One of the major regular issues at Morgan Publishing is whether to shut the magazine for the month. ( Turner 1986, 767 ) The column section maintains a rigorous 60-40 split between columns and advertizements. ( Turner 1986, 767 ) The gross revenues section claims they can convey in more gross if the shutting is held a twenty-four hours, but if they do the column section needs to obtain more articles, and so production clip is cut. ( Turner 1986, 767 ) By set uping a minimal figure of advertisement pages, and updating both the column and production section of this figure on a hebdomadal footing, this will cut down some of the confusion. When the minimal figure of advertisement pages is non met by the deadline day of the month, so that is a clear ground to keep closeout and each section will hold been informed. When the lower limit end has been achieved, so closeout will continue and any late advertizers will moved to the following month? s magazine. Directors must be involved in the end puting procedure and understand that controls are established to help, non impede their independency. ( Mosely et Al. 1996, 502 ) For the controls to be accepted, people must clearly understand the intent of the control system and feel they have an of import portion in the creative activity procedure. ( Mosey et al. 1996, 502 )

Budgets are necessary to set up whether or non Morgan Publications is run intoing fiscal ends every bit good as apportioning financess for future enterprises. By set uping pecuniary

restraints, Valerie Morgan can set up which concerns are doing money and which concerns are losing money. The consequences of comparing budgets to existent disbursals besides indicate countries that should be increased or decreased over the budgeted sum. ( Mosely et Al. 1996, 503 ) This information can besides be used in the public presentation assessment system for Morgan Publications.

Presently, Morgan Publications has no public presentation assessment system for the section directors. ( Turner & A ; Stevenson 1986, 777 ) Valerie Morgan merely allots a 15 to 20 per centum? upside? in compensation for people who perform good. ( Turner & A ; Stevenson 1986, 777 ) However, this is hard because there are no quantifiable public presentation criterions to mensurate each directors existent public presentation. ( Mosely et Al. 1996, 498 ) From the section director? s position, they jointly agree that the budget and attendant ends are non linked to their public presentation assessment or compensation. ( Turner & A ; Stevenson 1986, 779 ) By set uping guidelines and associating them to the assessment procedure, Valerie Morgan instills in her directors a clearly defined intent in supplying the operating information she needs and presently finds so hard to obtain.

The Big Picture

Valerie realizes that she urgently needs more controls and stronger direction. The job is happening that individual who will be accepted by Valerie and the section directors. ( Greiner 1972, 42 ) However, one time the director has been selected and the above mentioned controls set in topographic point, Morgan Publishing will accomplish growing and way because: ( 1 ) Valerie will be able to concentrate her energies on new thoughts ; ( 2 ) section directors will be able to work better with good defined ends that do non infringe on their liberty ; and ( 3 ) the little concern feeling that is a critical portion of the corporate civilization will be maintained.

Greiner, L. ( 1972, July-August ) Evolution and Revolution as Organizations Grow. Howard Business reappraisal, 37-42

Mathis, R. and Jackson, J. ( 1997 ) Human Resource Management. St. Paul, Mn: West Printing Company.

Mosely, D. , Pietri, P. , and Megginson, L. ( 1996 ) Management: Leadership in Action 5th edition, HarperCollins College Publishers.

Turner, James and Stevenson, Howard ( 1986 ) Valerie Morgan Case Study, Harvard College Harvard Business School, instance 9-386-164, 767-787