analysis of the casechattanooga using the  machine metaphor
Karlstad Business School                  Handelshögskolan vid Karlstads UniversitetCourse code: FEAD51Course name: Compet...
TABLE OF CONTENTS1.   INTRODUCTION ..........................................................................................
1. INTRODUCTION    The implicit images or metaphors of organizations and management have been discussedby Gareth Morgan in...
the principles of classical management to be covered later on are unity of command, Span ofcontrol, division of work, auth...
Projecting classical management theory on the division, we can notice that manyprinciples were used. Unity of command and ...
The both meeting and empirical data, especially hierarchy of responsibilities, reflectedalso the dependency of the divisio...
The case points out some problems occur due to the weaknesses of adopting machinemetaphor as organizational image. It is c...
6. REFERENCESMorgan. G. (2006). Image of organization. Schulich School of business, Toronto. pp. 16Morgan. G. (2006). Imag...
Upcoming SlideShare
Loading in …5
×

Analysis of the case chattanooga using the machine metaphor

2,243
-1

Published on

One of the eight organizational metaphors, machine, is analysed and projected on Chattanooga Ice Cream Division.

Published in: Education
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,243
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
40
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Analysis of the case chattanooga using the machine metaphor

  1. 1. analysis of the casechattanooga using the machine metaphor
  2. 2. Karlstad Business School Handelshögskolan vid Karlstads UniversitetCourse code: FEAD51Course name: Competence and LeadershipTitle: Analysis of the Case Chattanooga Using the Machine MetaphorDate of Submission: 2013-01-29Family name Given nameShurrab HafezEl Bouassami MohammedName of the teacher: Markus Fellesson and Sofia MolanderName of the administrator: Frania Johansson
  3. 3. TABLE OF CONTENTS1. INTRODUCTION ..........................................................................................................- 1 -2. BACKGROUND ............................................................................................................- 1 -3. THEORY ........................................................................................................................- 1 -4. ANALYSIS .....................................................................................................................- 2 -5. CONCLUSIONS.............................................................................................................- 5 -6. REFERENCES ...............................................................................................................- 6 - I
  4. 4. 1. INTRODUCTION The implicit images or metaphors of organizations and management have been discussedby Gareth Morgan in his book “Images of Organizations” (Morgan, 1997). Morgan exposedeight metaphorical images of organizations including machine, organism, brain, culture,political system, psychic prison, flux and transformation, and instrument of domination. Eachone of these metaphors creates insight, but also obscures some corners. They have both prosand cons. They enable seeing, but also not seeing. No one of them is said to be correct andright.2. BACKGROUND Chattanooga Ice Cream Division is one of three major incorporated industries to CFC,Chattanooga Food Corporation. The division lost third-largest customer for no logicalreasons. Charles Moore, the president and general manager of the division conducted amanagement meeting to discuss current situations, investigate the root causes, and find outproper solutions. Many conflicts occurred during the meeting. The actions and reactions canbe projected to reflect how the division functions as one of metaphorical images. In thisreport, the case is analyzed using machine metaphor. In other words, it discusses what wecould see and reflect when projecting the division’s behavior on the principles and approachesof machine metaphor.3. THEORY The industrial revolution had a direct impact in matter of changing the organizationsfunction. The machine perspective was developed long time ago, and nowadaysmechanization invaded every part of our lives. By time there was a need to develop andintroduce some changes to organization (Morgan 2006). During eighteenth century, AdamSmith in his book “The Wealth of Nations” developed a new theory based on the concept ofeconomic growth, which is essentially based on the theory of increasing division of labor.This idea relates primarily to the specialization of the labor force, by breaking down of largejobs into many small components. (Smith 1776) Several theorists were preoccupied finding solutions for problems of practicalmanagement, after several researches, they have reached a “road map” of a successfulorganization, consists of the principles of classical management theory. But in fact, theseprinciples used as a mechanical tools for designing organization as it was a machine. Some of -1-
  5. 5. the principles of classical management to be covered later on are unity of command, Span ofcontrol, division of work, authority and responsibility, and the initiative. (Morgan 2006) Max Weber shares the same principles with other theorists of the nineteenth century fromother perspective when he noted that the bureaucratic forms routinize the process ofadministration the same way as the machine routinize production. (Weber 1947) Based on Frederick of Prussia approach of modern army, and by the beginning of thetwentieth century, a new organization theory, known as scientific management pioneered byan American engineer called Frederick Taylor. This theory called also Taylorism, and whichis based on five simple principles: Shift responsibility from worker to managers, use efficientway to do the work, right person to do the job, train the worker, and finally keep monitoringworkers (Taylor 1911).4. ANALYSIS The hierarchy of Chattanooga Ice Cream Division is divided into departments that deliverspecialized functions (marketing, sales, production, etc…). Under such organization eachmember becomes an expert in one specific function. Division of labor relies on assigningskills into its right domain of function. Another Tylor principle, could be projected on fromthe case, is selecting the right person for the job. The meeting’s discussion reflects theproficiency of management members at holding their own responsibilities. This is clear fromthe reflection of Moore every time the meeting is over. He trusts Stephanie Krane, the vicepresident controller, and Billy Fale, the vice president of production, as they used to delivertheir promises, and think that Barry Walkins, the vice president of marketing, is creative andhas a good sense of what consumers wanted, which is literally the essential potentials formarketing responsibility. Les Holly, the vice president of sales, and other managers leftprofessional comments for what can make their departments function better separately. On the other hand, the case clearly shows the miscommunication between departments.For example, Holly spent most of the time outside his office, as his work required that. Butinformation such as budget records, resource allocations …etc. have to be updated in a dailybasis, especially for sales departments. Holly suggested more promotional allowances. Hewould not probably have done so if he was familiar with financial records and current status.Besides, the conflicts, in general, arose in the meeting expose not only the miscommunicationbut also the power struggle among departments. They are more compartmentalized instead ofworking together and viewing the whole picture. -2-
  6. 6. Projecting classical management theory on the division, we can notice that manyprinciples were used. Unity of command and span of control are explicit, where eachdepartment manager receives orders from only one supervisor, who is Moore in this case. ButStephanie Krane was an exception, since she had also a dotted-line reporting relationship withArthur Silver, the chief financial officer. That placed additional pressure on her and interpretsher persistent objection against any further spending on either investing or new promotionalallowances. Moreover, the responsibilities of each manger were only linked explicitly to theirauthorities, and there were no other inexplicit responsibilities to hold, which extended thecompartmentalization within the organization. Additionally, the initiative is presented in thiscase within the management level, where managers discussed and presented their initiativesand reflections concerning with problem detection and solution suggestions that may retrievethe profit margin. There is no doubt that there are advantages of the bureaucracy including companyorganization, standardization of the production, and assigning the right person to the job. Butin the case, things seem to be more complicated because, beside its benefits, bureaucracy hadnegative side effects that caused instability in financial matters. In other words, the workprocess in the company had been unchanged for decades, even after the promoting Moore tobe the head of the division. There was no serious willingness to introduce new responsiveproducts into the market, and be more competitive. That enabled other competitors to reactfaster and capture larger market share. Apart from their willingness, the bureaucraticproduction system made it difficult to change due to inflexibility and compatibility of itselements. One of the common features the organizations are characterized by according to themachine metaphor is scientific management or Tylorism. The case reflects many projectionsof scientific management. Considering the idea of increasing the market share by delivering ahalf dozen of mixed-ins was not warmly welcomed by Fale due to the inflexibility ofinformation system. That reflected how the division relied on the information systems. Kranementioned that the ongoing system was not capable for accepting new product line, since thatwas complex and needed long time to develop, test, and install. Therefore, what can be saidabout this kind of organizations if viewed as a machine that the sophistication of a systemcombined with the organization system as a whole could add some robust advantagesconcerning with the ability to control and monitor, but it could be also a drawback forresponsiveness to future evolutions. -3-
  7. 7. The both meeting and empirical data, especially hierarchy of responsibilities, reflectedalso the dependency of the division on other scientific methods than MIS. According to thehierarchy, Ken Donaldon, the vice of R&D, is clearly responsible for managingresponsibilities of product development, process engineering, and quality assurance.Moreover, Fale discussed operational cost reduction including packaging expenses,production costs, and inventories. He estimated the cost reduction by 5% if the division stopsproducing chocolate and coffee flavors, which account for 15% of the volume produced. Hebuilt his suggestion on scientific methods, since that could reduce set-up and cleaning times,which are not value-adding time from lean point of view. So, it is clear that the division ingeneral and Fale particularly have the concern of waste elimination and continuous flow.Additionally, Holly discussed the problems of stockouts and backorders the divisionfrequently undergoes, which are also concerns of inventory leveling and supply chainmanagement. Holly had a conflict with Krane due to her striving to cut costs, especiallypromotional allowances, and increase profitability. Krane had cut the costs of other salesutilities by replacing their vehicles with smaller ones, which also reflects that the decisionswere based on scientific methods and cost efficiency. Krane did not care, or believed it didneed to do, for morals as much as for records and profit margins. And again, this might be thepressure of collateral dotted-line reporting relationship with Silver. The meeting’s discussionalso indicates that they strive so that their inventory levels are kept in control with minimumpossible waste, which requires a stability of demand and accurate forecast records. In our opinion, the conflict appeared during the meeting did not rise from their lack ofknowledge or experience in their job, but in setting conciliation between each department’sinterests and requirements. Each department required some basic requirements. For instance,Hale needed more promotional allowances to increase the division’s market share, whileKrane strived to cut the costs radically. The same is for marketing and productiondepartments, Walkins updated the trends of the market, and came up with fresh ideas thatcould keep the division competitive, while Fale’s major concern was about getting everythingunder control and within convenient quality ranges. It could be viewed as a machine that itsparts could not be optimized. For example, we have to expose material’s ductility andhardness to trade-off, and that kind of decisions are based on the major purpose of eachmachine part and market qualifiers and winners. In other words, the current objectives of anyorganization determine which performance of any department within an organization shouldbe given more attention. -4-
  8. 8. The case points out some problems occur due to the weaknesses of adopting machinemetaphor as organizational image. It is clear that it was difficult for managers to handle bothcomplexity and change. The division got into trouble because they were only interested ingetting everything stable and under control, regardless the real trend of market andconsumers. It is as same as a machine used to get some efficient results, while some othermachines can deliver more featured results. Another limitation is undesirable effects on people working in the organization. The mostexplicit translation from the case is some suggested solutions. For instance, more Kranesuggested freezing on salaries for one year and eliminating cost-of-living increases in retiree’spensions and health care insurance to cut costs. She also said that retiree had to deal with therealities of the business. The reaction on such solution made it negotiable solution and evencloser to be undertaken, according to Moore’s reflections on overall suggested solutions. Thismeans that the people working in the division have to adapt to the division as same as whathappens under machine metaphor.5. CONCLUSIONS The behavior of Chattanooga Ice Cream Division has been drawn from discussions,conflicts, actions, and reactions during the management meeting Moore conducted. Somemachine metaphor aspects were dominant including classical management, bureaucracy, andTylorism. The scientific management was represented by the quality assurance andinformation system. While some principles of management, such as the unity of commandand span of control, were clear from the single relationship between Moore, who monitored,and the other managers who reported, except additional dotted-line reporting relationship thatKrane had with the chief financial officer. The hierarchal structure of the responsibilities issimilar to the classic functional form that is built on the theory of Adam Smith. Theresponsibilities were linked explicitly and exclusively to the managers’ authorizations, whichlimited their willingness to cooperate with each other. The bureaucratic built-in productionsystems of the division made it difficult to improve their market share, and even survive in thelong term. Despite of their loss of the largest-third customer, introducing mixed-ins as newresponsive products was not their first priority. Moore seemed to be comfortable with costscut Krane suggested. In our opinion, costs cut may work temporarily, since the scenario withStay & Shop could be repeated with other customers, as long as the competitors are able todeliver more responsive products. -5-
  9. 9. 6. REFERENCESMorgan. G. (2006). Image of organization. Schulich School of business, Toronto. pp. 16Morgan. G. (2006). Image of organization. Schulich School of business, Toronto. pp. 17Smith, A. The Wealth of Nations. London: Stratton & Cadell, 1776.Taylor, F.W. Principles of Scientific Management. New York: Harper & Row, 1911.Weber, M. The Theory of Social and Economic Organization. London: Oxford universityPress, 1947. -6-
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×