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Compose a 1250 words essay on Economy Fashion. Needs to be plagiarism free!Download file to see previous pages The lines of authority, decision making and the planning processes are unclear to the emp
Compose a 1250 words essay on Economy Fashion. Needs to be plagiarism free!Download file to see previous pages
The lines of authority, decision making and the planning processes are unclear to the employees and the owner of the company. As the company was to be inherited by Joe through his father, it was pretty much evident that he would not focus on the performance aspect of company. He focused on the designing process of the business, leaving the main area of performance vacant. Although it was a good step to follow the designing process which would help Joe to focus on the production area of the company but this focus alone would not really help in isolation. Proper business sense, entrepreneurship and the some ability and knowledge to run the management of the organization was as important as the designing process. The lack f this ability from the start led Joe to act as an autocratic leader within the organization. Although the system within the organization seemed to be a decentralized one, it was not actually a decentralized one. The decision making power lied in the hand of Joe and this blocked the way for innovative ideas being forwarded by the management of the organization, even the smallest decision involving immaterial items were taken by the owner himself. This clearly shows that there is a lack of delegation within the organization and proper delegation would result in better flow of information within the company. Collection of Evidence There are two ways of collecting evidence about these problems, one way is to do quantitative analysis and the other is to perform a qualitative analysis. The quantitative analysis would include analyzing the financial performance of the company and assessing whether those financial records are properly recorded and maintained as per their specified standards. The reduction in the function of the Vice President to a mere office manager suggests that the company may not be recording the financial information correctly. To analyze this further, a proper analysis of all the financial statements prepared by the company should be assessed to ensure that the information is recorded correctly. As Economy Fashions is growing gradually, it would need proper financial records to ensure responsibility accounting within the organization. Responsibility accounting would help in identifying those people kept responsible for the running of any particular department/division. The qualitative analysis would include the assessment of the organization’s structure and the organizational culture to ensure whether a decentralized system can be implemented within the organization. Besides the decentralization issue, there is a clear lack of succession planning within the organization. Succession planning would help in future planning for a company i.e. a replacement for an existing employee at an important position should be properly planned such that when the existing employees retires or quits the job, the replacement of that employee should be ready and he/she should be equally good as the one who quits the job. Quantitative and Qualitative Issues With the implementation of the decentralized structure and the “Coach and Team Syndrome” Concept there would be some other problems that need to be addressed within Economy Fashions. The quantitative and qualitative issues that would need attention would be. Divisional managers performance being appraised on the basis of the “Return on Capital Employed” concept, this would mean that each division’s return would be compared with the initial investment made in that division and finally upon those basis, the performance of the divisional manager would be ascertained.