Rose Co. Harvard Case Solution & Analysis

Performance evaluation of the plant

Top management needs to clarify the metrics for my performance evaluation, and ensure that it is appropriate for the plant. The company’s goal is to reduce costs through a system reengineering, sousage of budget variances for the assessment will be more comprehensive and better integrated. The presence of the dotted-line relationships would otherwise, though this claim is inconclusive. These relationships can be a way through which top management can monitor my actions.

The main driver of production planning and performance measurement should be variances between the estimated budget and actual budget. Since new systems are being implemented the Jackson plant’s budget can be used for both planning and evaluating.

The long-term solution is to re-classify each plant as an investment center, rather than maintaining it simply as an expense center. This will mean delegating the responsibility of plant sales to the plant’s general manager. As an investment center, return on assets (ROA) or economic value added (EVA) will be the metric for each plant’s performance. It is a better gauge of productivity because these account for the investments (plant and equipment) and assets that have not yet been accounted for.

Development of influence over subordinates

I will be able to encourage, motivate and inspire my employees. The changes are not easy for anyone, thus Iwill be firm but rational and realistic in the goals set for the employees.  It is correct to delegate the entire function of rewarding and punishing the plant personnel to me because this will give me proper authority and power at the plant even if I am a complete stranger to the employees.

Top management will play a vital role in strengthening my role at the Jackson plant.  They should entrust the operations of the entire plant in my care; thus not only making me accountable for results, but also strengthening my credibility amongst managers and staff.  More importantly, they should discourage their functional counterparts from reporting to them, and effectively dissolve the dotted-line relationships with them.

Solution

Majority of the problems arising are due to the currently vague organizational structure, which is due to the dotted-line relationship. Therefore, I will consider developing influence over subordinates by using my leadership abilities that will help to remove the dotted-line relationships in the organizational structure. As per independent sources, I have previously demonstrated analytical ability and general administrative capacity and I was mostly liked by people. Power is required to get things done. The paradigm that seems to best identify the elements of leadership effectiveness for me is the “the path-goal” leadership model. Here the emphasis is on the ability to manage the relationship among effort, performance and rewards. Leaders are seen as motivators who provide incentives. Path-goal leadership theory is closely related to “expectancy theory” of motivation in that leaders are seen as controlling and providing the means by which followers achieve outcomes (Timm L. Kainen). Overcoming this problem will lead to solving the problems of Jackson plant as a whole and to maintain competitive leadership and gain product advantage through the cost savings and product quality improvement.

Implementation

To gain influence over the subordinates, I must communicate with them, and gain support of each subordinate of the plant. I will meet with each of them individually and set the proper tone and direction for the coming year. Similarly by speaking with them, I will get a clearer picture of the real current situation at the plant and the dynamics among members/the relationships, the culture, the morale of the employees, and the challenges faced by the plant. I will be able to clearly set the objectives and make each member understand their critical function in fulfilling this objective. I will also be able to set clear, reasonable targets and metrics for every subordinate, which will be logically determined (based on plant capacity-machines, personnel, area, etc.).

Review should be done often, perhaps on a monthly basis given that the processes are new and changes to the targets are bound to be adjusted based on initial performance. This will help to reduce dysfunctional behavior of managers and will help Rose Company to achieve its goals and objectives efficiently and effectively....................................

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