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Rockware - Analysis of Management's Actions


The senior management team was able to implement the tough measures by means of organizing.  This was the configuration between structures, processes, and relationships and boundaries.

Structures

The management remained the company as multidivisional structure so there were not big changes or influences to the individual factories.  Continuing this structure could facilitate the company to measure individual factoryˇ¦s performance for ease of addition and divestment of units.  It also facilitated senior managementˇ¦s attention to strategy.  However, the drawback was possible confusion over locus of responsibility and conflict between divisions.  The company recognized these problems and was able to avoid by defining clear relationships and boundaries for successful implementation. 

Processes

Planning and control systems were used for the processes.  The company used top-down planning to strengthen its group financial controls.  It gave direct supervision on the resource allocations.  For example, a directive was made to the glass factories to manufacture to orders only, the existing program of furnace modernization was accelerated, and an improved ordering and order call-off system was introduced.  These activities were aligned and facilitated to the smooth implementation of the measures.

Relationships and boundaries

The management used a combination of centralization and devolution for the relationships and boundaries.  The separate companies in the group continued to be run at local level, with a large degree of operating autonomy.  But they also built up a central marketing organization to co-ordinate between the different factories, and between the glass and plastic groups which were previously quite isolated.  By doing so, the company could use strategic control to add value to its businesses.  For example, the company could define and shape the overall strategy of the organization (donˇ¦t think glass, think customer), decide the balance of activities and the role of each factory (avoid destructive internal competition), and define and control organizational policies (financial controls and cost reduction), etc.

Finally, in order to implement the measures more smoothly, Parker and Davies used their personal skills to support and motivate the employees through the changes.  For example, they were fully committed to lead the changes, they were open and straightforward to communicate and share the real problems with the employees, and they were friendly and approachable.  All of these actions made the employees feeling the urgency for the corrective measures and hence, helped the successful of the implementation. 


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